Dear Constituents,

The Fall sittings were very busy for me but also included some positive changes. On September 29th, I was elected Vice Chair of the Standing Committee on Government Operations and Estimates in a vote by all members of the Committee. On September 30th, I was also unanimously elected Vice Chair of the Standing Committee on the Environment and Sustainable Development. To have earned the respect of my peers for my work is a great honour and I am pleased to have these new responsibilities.

On the cover, I am pictured with Marlene Catterall, who is the Chief Government Whip. We were appearing as witnesses before a sub-committee of the Standing Committee on Government Operations to present our studies on the accountability of government departments and agencies.

Our work has led to the development of new procedures for Parliament to use in conducting effective reviews of overall Government operations. These procedures have been tabled in Parliament and, if adopted, will become the standard approach that all Standing Committees will use in their reviews of departments they oversee.

In addition to my Committee work, I continue to play a lead role on Bill C-13 concerning Reproductive Technologies and Related Research. The debate on cloning and stem cell research has been going on for a very long time, due to the complexity of the Bill and the lack of a strong consensus in the House of Commons.

No further amendments can be made by MPs but should the Bill pass in the House, it will go to the Senate where amendments can be considered. Questions have been raised about whether the Bill bans all forms of cloning. If the Senate makes changes, the Bill would have to be referred back to the House of Commons for further debate and a vote. At this time, the future of this Bill appears uncertain.

In this report, you will also find a detailed report on the status of all of the Bills introduced in the current session of Parliament. Other features include tax tips, health news and articles on fresh water and the future of hydro. I hope you find these interesting and as always, your comments or questions are most welcome.

Finally, I want thank all of you for your thoughtful and constructive feedback over the past year. Your input has helped me to do a better job in Ottawa and I am very grateful for the opportunity to represent you in Parliament. I also want to thank Irene Corridore and Joan Phillips who have worked in my Mississauga office for 9 years. They have done an excellent job in providing service and support to constituents in need of assistance and I very much appreciate their professionalism and dedication.

Sincerely,
Paul Szabo

Recently I read an article in the October issue of CARP Magazine which had some interesting items on health issues which I thought you might find of interest.  Here is a brief summary :

• COFFEE CAUSES PANCREATIC CANCER – Actually the studies are inconclusive and may actually be related to other related habits like smoking.  The conclusion was to drink coffee in moderation.
• ASA PREVENTS HEART DISEASE -  Aspirin has been shown to be of particular value for middle-aged patients with a family history of heart disease or if they smoke, have diabetes, hypertension or elevated cholesterol.
• GRAPEFRUIT JUICE IS DANGEROUS WITH CERTAIN DRUGS – Studies have shown that grapefruit juice taken with some cholesterol-lowering drugs can have serious side effects.  It can increase the level of drugs in the blood by 15 times normal levels.
• SOY REDUCES “BAD” CHOLESTEROL – Studies have shown that soy does have a cholesterol-lowering effect.  It also has an antioxidant effect as well as a beneficial effect on the artery wall lining.
• IBUPROFEN DECREASES THE RISK OF BREAST CANCER – Research studies have shown that Ibuprofen such as Advil or Motrin can slash the risk of breast cancer by as much as 50%.
• RYE BREAD CAN REDUCE THE RISK OF CANCER – Whole grain rye bread is chock full of disease-fighting compounds, called lignans, which may work together to protect against cancers of the colon, breast and prostate.
• CHOCOLATE IS AN ANTIOXIDANT – Pure chocolate has been shown to act as an antioxidant which reduces the oxidation of artery-clogging LDL cholesterol.  However, chocolate contains fat and calories so moderation is key.
• BROCCOLI STILL TOPS THE NUTRITION CHART – Broccoli and other brassica vegetables like cabbage, brussel sprouts and cauliflower, play a role in protection against cancers of the breast, colon, thyroid, esophagus and kidney.  They detoxify cancer-causing substances and stimulate the body to fight cancer cells.  Broccoli is also a star in terms of its nutritional value.
• DUST MITES INFEST YOUR BED – Dust mites are so small that you could fit three of them on the period at the end of this sentence.  They are everywhere – in our mattresses, pillows and rugs.  It is estimated that 20% to 50% of the weight of a pillow is due to mites.  They are believed to be a major cause of allergies and of the increase in the number of people suffering from asthma.  A partial solution is to cover pillows and mattresses with vinyl protectors and to wash bedding in hot water weekly.
• ACETAMINOPHEN INCREASES RISK OF LIVER CANCER – Studies have shown that 39% of cases of acute liver failure were associated with overdoses of acetaminophen such as Tylenol.  Excessive doses can destroy liver cells especially when taken in conjunction with alcohol.
• VITAMIN K STRENGTHENS BONES -  Several studies have linked low vitamin K intake to increased osteoporosis.  Interestingly enough, studies showed that women with the lowest intake of vitamin K had the lowest scores on bone mineral density tests.  The same association was not found in men.  The top sources of vitamin K are dark leafy greens.

We are all different in many ways and what may be good for one of us may not be good for someone else.  Therefore, the best way to find out what is appropriate for your situation is to always consult with your doctor.  They are in the best position to know what might be harmful to you and what might be helpful.

The current session of Parliament started in September 2002.  The following are the Bills introduced in Parliament by the Government and their status to the end of October 2003.

C-1 -- The Prime Minister -- An Act respecting the Administration of Oaths of Office (Pro forma Bill)

C-2 -- The Minister of Indian Affairs and Northern Development -- An Act to establish a process for assessing the environmental and socio-economic effects of certain activities in the Yukon – Became law on May 13, 2003

C-3 -- The Minister of Finance -- An Act to amend the Canada Pension Plan and the Canada Pension Plan Investment Board Act  - Became law on April 1, 2003

C-4 -- The Minister of Natural Resources -- An Act to amend the Nuclear Safety and Control Act – Became law on Feb 13, 2003

C-5 -- The Minister of the Environment -- An Act respecting the protection of wildlife species at risk in Canada – Became law on December 12, 2002

C-6 -- The Minister of Indian Affairs and Northern Development -- An Act to establish the Canadian Centre for the Independent Resolution of First Nations Claims – Awaiting Senate approval

C-7 -- The Minister of Indian Affairs and Northern Development -- An Act respecting leadership selection, administration and accountability of Indian bands – At Third Reading in the House

C-8 -- The Minister of Health -- An Act to protect human health and safety and the environment by regulating products used for the control of pests – Became law on December 12, 2002

C-9 -- The Minister of the Environment -- An Act to amend the Canadian Environmental Assessment Act - Became law on June 11, 2003

C-10A -- The Minister of Justice -- An Act to amend the Criminal Code and the Firearms Act – became law on May 13, 2003

C-10B -- The Minister of Justice -- An Act to amend the Criminal Code (cruelty to animals) (part of former Bill C-10) – In final stages of Senate amendments and should become law soon

C-11 -- The Minister of Canadian Heritage -- An Act to amend the Copyright Act – Became law on December 12, 2002

C-12 -- The Minister of Canadian Heritage -- An Act to promote physical activity and sport. – Became law on March 19, 2003.

C-13 -- The Minister of Health -- An Act respecting assisted human reproduction – Debate in final stages in the House

C-14 -- The Minister of Natural Resources -- An Act providing for controls on the export, import or transit across Canada of rough diamonds– Became law on December 12, 2002

C-15 -- The Minister of Industry -- An Act to amend the Lobbyists Registration Act – Became law on June 11, 2003

C-16 Replaced by C-17

C-17 -- The Minister of Transport -- An Act to amend certain Acts of Canada, and to enact measures for implementing the Biological and Toxin Weapons Convention, in order to enhance public safety. Sent to Senate on October 7, 2003

C-18 -- The Minister of Citizenship and Immigration -- An Act respecting Canadian citizenship – Still being debated in the House.

C-19 -- The Minister of Indian Affairs and Northern Development -- An Act to provide for real property taxation powers of First Nations.  Still being debated in the House.

C-20 -- The Minister of Justice -- An Act to amend the Criminal Code (protection of children and other vulnerable persons) and the Canada Evidence Act – Still being studied by Committee

C-21 -- An Act for granting certain sums of money for the financial year ending March 31, 2003 – Passed December 12, 2002

C-22 -- The Minister of Justice -- An Act to amend the Divorce Act, the Family Orders and Agreements Enforcement Assistance Act and to amend other Acts in consequence – Still being studied by Committee.

C-23 -- The Solicitor General of Canada -- An Act respecting the registration of information relating to sex offenders, to amend the Criminal Code and to make consequential amendments to other Acts – Still being studied by Committee.

C-24 -- The Minister of State and Leader of the Government in the House of Commons -- An Act to amend the Canada Elections Act and the Income Tax Act (political financing) – Became laws on June 11, 2003

C-25 -- The President of the Treasury Board -- An Act to modernize employment and labour relations in the public service and to amend the Financial Administration Act and the Canadian Centre for Management Development Act and to make consequential amendments to other Acts – Passed in the House in June 2003 and still under Senate review

C-26 -- The Minister of Transport -- An Act to amend the Canada Transportation Act and the Railway Safety Act, to enact the VIA Rail Canada Act and to make consequential amendments to other Acts – Still being studied by Committee

C-27 -- The Minister of Transport -- An Act respecting airport authorities and other airport operators and amending other Acts – Still being debated in the House

C-28 -- Mr. Manley (Minister of Finance) -- An Act to implement certain provisions of the budget tabled in Parliament on February 18, 2003 – Became law on June 19, 2003

C-29 -- An Act for granting certain sums of money for the financial year ending March 31, 2003 – Became law on March 27, 2003

C-30 -- An Act for granting certain sums of money for the financial year ending March 31, 2004 – Became law on March 27, 2003

C-31 -- The Minister of Veterans Affairs -- An Act to amend the Pension Act and the Royal Canadian Mounted Police Superannuation Act – Became law on June 19, 2003

C-32 -- The Minister of Justice -- An Act to amend the Criminal Code and other Acts – Amendments being debated in the House.

C-33 -- The Solicitor General of Canada -- An Act to implement treaties and administrative arrangements on the international transfer of persons found guilty of criminal offences – Still before Committee.

C-34 -- The Minister of State  -- An Act to amend the Parliament of Canada Act (Ethics Commissioner and Senate Ethics Officer) and other Acts in consequence – Passed and sent to Senate October 1, 2003

C-35 -- The Minister of National Defence -- An Act to amend the National Defence Act (remuneration of military judges) - Passed and sent to Senate June 13, 2003

C-36 -- The Minister of Canadian Heritage -- An Act to establish the Library and Archives of Canada, to amend the Copyright Act  – Still under debate in House

C-37 -- The Minister of National Defence -- An Act to amend the Canadian Forces Superannuation Act – Still under debate in the House

C-38 -- The Minister of Justice -- An Act to amend the Contraventions Act and the Controlled Drugs and Substances Act – Referred to Committee for study.

C-39 -- The Minister of State -- An Act to amend the Members of Parliament Retiring Allowances Act and the Parliament of Canada Act – Became law on June 3, 2003

C-40 -- The Solicitor General of Canada -- An Act to amend the Corrections and Conditional Release Act and the Criminal Code - Introduced and read the first time on June 4, 2003

C-41 -- The Minister of State and Leader of the Government in the House of Commons -- An Act to amend certain Acts (miscellaneous updates) – Sent to Senate October 3, 2003

C-42 -- The Minister of the Environment -- An Act respecting the protection of the Antarctic Environment –Became law Oct 7/03

C-43 -- The Minister of Fisheries and Oceans -- An Act to amend the Fisheries Act -Introduced and read the first time -June 11, 2003

C-44 -- The Minister of National Defence -- An Act to compensate military members injured during service – Became law June 19, 2003

C-45 -- The Minister of Justice -- An Act to amend the Criminal Code (criminal liability of organizations) – Still before Committee.

C-46 -- The Minister of Justice -- An Act to amend the Criminal Code (capital markets fraud) – Still before Committee

C-47 -- An Act for granting certain sums of money for the financial year ending March 31, 2004 – Passed on June 19, 2003

C-48 -- The Minister of Finance -- An Act to amend the Income Tax Act (natural resources) - Still being debated in the House.

C-49 -- The Minister of State -- An Act respecting the effective date of the representation order of 2003 – Being debated in House.

C-50 -- The Minister of Veterans Affairs -- An Act to amend the statute law in respect of benefits for veterans and the children of deceased veterans – Third reading debate in the House.

C-51 -- The Minister of State -- An Act to amend the Canada Elections Act and the Income Tax Act - Introduced and read the first time on October 2, 2003

Parliament has addressed a large number of Bills on very diverse subjects over the past year.  If you would like to obtain any information about these Bills, please contact or write to my office or visit my WEB site where you can also access a copy of any Bill.

Canada is a water-rich country and some would say that our water is our most valuable asset.  We possess seven percent of the world’s renewable water supply and almost one quarter of the world’s share of wetlands.  It should then come as no surprise that Canadians rank among the highest per capita users of water in the world.  At the same time, water demand is steadily increasing especially as it relates to agriculture and residential use in our large urban areas.  As the stress on our water supply increases, problems can, and have, occurred.  In fact, in the findings of the 2003 Environment Canada report on key ecological indicators, Canada’s water use situation was ranked as “deteriorating”.

Water is an emerging environmental and public health concern.  Since the Walkerton tragedy, water quality issues have become a focus of attention for all levels of government.  This has pointed out the need for closer ties of co-operation and greater funding for water treatment and infrastructure investment.  Consideration is also being given to establishing a National Water Resources Inventory (NWRI).  This would play an important role in tracking Canada’s water levels as well as the rates and patterns of water use in various regions and sectors across the country.  It would also maintain profiles of contaminants present in our water supplies.

The Federal and Provincial governments work together in shaping Canada’s water policy.  The Federal government has direct responsibilities for Federal land, in Northern Canada, on native reserves and in boundary waters.  Although water is a shared jurisdiction, the Federal government is responsible for the overall direction.  The provinces and territories deliver policy according to Federal guidelines and the Federal government funds municipal-level projects.  As the risks to our water supply have grown, this partnership needs to be more comprehensive and the NWRI will be a vital component of our long-term plan to protect our fresh water.

In the past, I have written Householder articles on Kyoto, greenhouse gas emissions, air quality issues and conservation measures.  Following the extended power failure in Ontario, the issues of the security and source of supply of hydro have received more attention.  It is hard to believe that so much of our hydro system could be disabled for so long.  This is now the subject of intensive review which should lead to substantial recommendations on minimizing future risks of system failure.  Some have been critical of our north-south hydro corridor with the U.S., while others have pointed to the failure of the Province to keep our generation and transmission facilities up to-date.

The other issue has to do with the long-term plan for hydro generation.  We want to reduce greenhouse gases and other harmful emissions which affect our health.  At the same time, we want stable and affordable hydro prices.  Some think this is just a balancing act but the future will take more than simple trade-offs. 

Twenty years ago, public support for nuclear power generation was very low but today, improved technology and safety have somewhat increased public acceptance.  Most agree that coal based hydro generation needs to be eliminated.  Coal may be relatively cheap and available, but the emissions are simply unacceptable.  Natural gas fired hydro generation may be cleaner but the prices have risen to reflect shortage of supply.  Renewable alternative energy sources such as biomass, wind and solar have also made some progress in terms of efficiency and cost but they still need subsidies.

We have some important decisions to make on the future of hydro generation.  At the same time, we will also need to change our consumption habits to reduce our usage and become part of the long-term solution.

Although I no longer operate a Chartered Accounting practice, I still do tax returns for family members and friends.  It’s a good way for me to keep up with tax changes and from time to time I have found that some still don’t take advantage of savings opportunities.

Everybody has a different situation and every tip may not be applicable to you.  However, in my experience, at least 50% of taxpayers could find savings if they took the time to assess their choices.  Below are a few tips which could save you money.  Note that the figures that I have used are for the 2002 tax year.  Some of these are indexed and will change slightly for the 2003 tax year.

• Medical Expenses – Everyone can receive a tax credit for eligible medical expenses which exceed the lesser of 3% of your net income or $1,728.  First of all, check the tax guide to ensure that you know what is eligible.  The list is long and includes things like premiums for private insurance and medical devices and aids.  The next thing to know is that one spouse can claim all the expenses for the entire family.  This makes a difference because if the spouse with the lowest income claims all the expenses, the 3% reduction will be less and the credit will be more unless both spouses make over $57,600 each.  Finally, in any tax year you can claim medical expenses for any 12-month period which ends in the tax year.  If you have a large expense in the fall of one year and another large one in the summer of the next year, you may be better off by claiming them both on the same tax return.  Taking this one step further, you may want to schedule appointments for medical or dental or vision care expenses before year end or delay until the new year depending on what other costs you have had or are expecting.  If you had $1,000 in one year and $1,000 in the next you may not get any tax credit in either year but if you claimed both on the same tax return you will save money regardless of how much you make.
• Charitable Donations – Regardless of which spouse or dependent made a charitable donation, one spouse can claim them all.  This can make a difference because the federal tax credit is 17% on the first $200 and 29% on everything over that.  If both spouses made donations of $200 and each claimed their own, you would only get 17% federal credit on the entire amount.  If one claimed both donations, $200 would be at 17% and $200 would be at 29%.  The provincial tax credit also increases.  You should also be aware that donations can be carried forward for five years.  That means that you may be better off delaying the claim for charitable donations and combine them in the following year which could maximize the amount eligible for the higher credit.  The increased savings is likely more than you could earn in interest by taking the credit early remembering that any interest earned is taxable.
• Provincial Sales Tax Credit – If you have a child who is 16 to 18 years of age in the taxation year and if you received no Child Tax Benefit for them from the federal government, they can actually file their own tax return and claim the $100 sales tax credit and receive a refund cheque for $100 as long as their income is less than $4,000.  If you claim them on your return, the credit is only $50.  Only one parent can claim for both spouses and any dependents and their tax credits are reduced by 2% of the total family net income in excess of $4,000.  In many cases, the income is too high to get any tax credit.  That is another reason why a 16 to 18 year old should file a return.  They will need a Social Insurance Number, so if they do not have a card, now is a good time to get one.  You may also have children who are over 18 years of age but are still in school or otherwise make no income.  Make sure that they file a return as well to get their $100 provincial tax credit.
• Goods and Services Tax Credit (GST) – One spouse must claim the GST tax credit for both spouses and any dependent children.  The credit is $216 for one spouse and $114 for the other spouse and each dependent child.  This credit is reduced by 5% of the excess family income over $28,193.  If you have a child who is 19 or older in the tax year, make sure they file their own return and claim the GST credit.  It is worth $216 just for filing a return.  Taken with the Provincial sales tax credit, a child over 18 years of age can actually receive $316 just for filing a return which they can do even if they have no income.
• Income Splitting – As a general rule, a couple will pay less tax if their income is split evenly.  This is rarely the case so you may want to look for ways to shift income from the higher earning spouse to the lower.  Investment income is usually a good place to start.  If the higher earning spouse pays all the bills etc out of their bank account and the lower spouse uses their income to invest in GICs etc, all of the investment income can be claimed by lower income spouse.  Too often couples have one bank account and often one taxpayer will claim all the income earned on savings.  If you have a joint account, you can split the income between both spouses even though the T5 tax slip is in the name of one spouse.  You should also be aware that those who receive a Canada Pension Plan benefit can choose to split up to 50% of their pension with their spouse.  In most cases, this will reduce the total tax bill of the couple.

I hope that some of these tips have helped you think of possible savings opportunities.  The key is to handle the family like one taxpayer and reduce the family taxes.

Visit us on the Internet: www.paulszabo.com

Mississauga Office Hours: Monday to Friday 9 a.m. to 5 p.m. Appointments can be scheduled during office hours or other arrangements can be made by calling the office.

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