Free-spending Liberals Ram C-253 Through the House

March 10, 2008

OTTAWA – This past week, the Liberal Private Members Bill C-253 on Registered Education and Savings Plans (RESP) passed through the House of Commons and is now in the Senate. If passed, Bill C-253 would represent an irresponsible and excessively costly modification to RESPs.

Like other programs they put in place, such as the gun registry, the free-spending Liberals have failed to do their homework on how much this would cost taxpayers. When they first proposed this in 2006, this Liberal bill was estimated to be a whopping $800 million annually and now, two years later, it has mushroomed by an additional $100 million to $900 million annually.

This is part of a larger Liberal pattern of fiscally irresponsible proposals since the 2006 federal election, proposals that would take Canada back into a deficit and increase Canada’s national mortgage by more than $60 billion.

“Since coming to office, our Conservative Government has taken a balanced, responsible and focused approach to managing the national budget. We have already taken action to expand access to RESPs and have proposed additional flexibility for students,” said local M.P. Guy Lauzon.

Budget 2007 raised the lifetime RESP contribution limit to $50,000, eliminated annual contribution limits and raised the maximum amount of a Canada Education Savings Grant that can be received in a year to $500. The Budget also provided part-time students' access to RESPs, recognizing the reality that many students - either by choice or necessity - work while they learn.

Budget 2008 continued along that path with even further proposed enhancements to increase the time limit over which individuals may contribute to an RESP, and the time a plan may remain open.

“First the free-spending Liberals don’t even bother to show up to vote for the Budget or the economic fiscal update, and now they propose to add yet another uncosted idea on the tab of hard working Canadians,” said Lauzon.

“This is not what Canadians expect from those who manage the public purse. We will do everything in our power to stop this bill from progressing further as it represents a flagrant abuse by the Liberals of the use of Private Members Business in order to spend taxpayers’ money,” said Lauzon.