Bill C-52 (Historical)

Budget Implementation Act, 2007

An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007

Part 1 implements income tax measures proposed or referenced in Budget 2007 to
(a) introduce a tax on distributions from certain publicly traded income trusts and limited partnerships, effective beginning with the 2007 taxation year;
(b) reduce the general corporate income tax rate by one half of a percentage point, effective January 1, 2011;
(c) increase the age credit amount by $1,000 from $4,066 to $5,066, effective January 1, 2006;
(d) permit income splitting for pensioners, effective beginning in 2007;
(e) introduce a new child tax credit of $2,000 multiplied by the appropriate percentage for a taxation year, effective beginning in 2007;
(f) increase the spousal and other amounts to equal the basic personal amount, effective beginning in 2007;
(g) increase the age limit for maturing registered retirement savings plans, registered pension plans and deferred profit sharing plans to 71 years of age, effective beginning in 2007;
(h) expand the types of investments eligible for registered retirement savings plans and other deferred income plans, effective March 19, 2007; and
(i) increase the contribution limits for registered education savings plans and expand eligible payments for part-time studies, effective beginning in 2007.
Part 1 also amends the Canada Education Savings Act to increase the maximum annual grant payable on contributions made to a registered education savings plan after 2006.
Part 2 amends the Excise Tax Act to clarify the legislative authority that allows the Canada Revenue Agency to pay refunds of excise tax directly to end-users, where fuel subject to excise has been used in tax-exempt circumstances. It also amends that Act to repeal the excise tax on heavy vehicles and to implement the Green Levy on vehicles with fuel consumption of 13 litres or more per 100 kilometres. It also provides an authority for the Canada Revenue Agency to pay a refund of the Green Levy for vans equipped for wheelchair access.
Part 3 implements goods and services tax/harmonized sales tax (GST/HST) measures proposed or referenced in Budget 2007. It amends the Excise Tax Act to exempt midwifery services from the GST/HST and to zero-rate certain supplies of intangible personal property made to non-GST/HST registered non-residents. It also amends that Act to repeal the GST/HST Visitor Rebate Program and to implement a new Foreign Convention and Tour Incentive Program, which provides rebates of tax in respect of certain property and services used in the course of conventions held in Canada and the accommodation portion of tour packages for non-residents, and establishes new information requirements in the case where rebates are credited by the vendor.
Part 4 implements other measures relating to taxation. It amends the Customs Tariff to increase the duty-free exemption for returning Canadian residents, from $200 to $400, for absences from Canada of not less than 48 hours. It amends the Federal-Provincial Fiscal Arrangements Act to clarify that when a federal corporation listed in Schedule I to that Act pays provincial taxes or fees, wholly-owned subsidiaries of that corporation also pay provincial taxes or fees. It also authorizes the Minister of Finance to make payments totaling $400 million out of the Consolidated Revenue Fund to the Province of Ontario to assist the province in the transition to a single corporate tax administration. This last measure is consequential to the October 6, 2006 Canada-Ontario Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax.
Part 5 enacts the Tax-back Guarantee Act, which legislates the Government’s commitment to dedicate all effective interest savings from federal debt reduction each year to ongoing personal income tax reductions. That Part also commits the Minister of Finance to report publicly at least once a year on personal income tax relief provided under the Guarantee to Canadians.
Part 6 amends the Federal-Provincial Fiscal Arrangements Act to set out the amounts of the fiscal equalization payments to the provinces and the territorial formula financing payments to the territories for the fiscal year beginning on April 1, 2007 and to provide for the method by which those amounts will be calculated for subsequent fiscal years. It also authorizes certain deductions from those amounts that would otherwise be payable under that Act. In addition, it makes consequential amendments to other Acts.
Part 6 also amends that Act to provide increased funding for the Canada Social Transfer beginning on April 1, 2007, and to provide for the method by which the Canada Social Transfer and the Canada Health Transfer amounts will be calculated for subsequent fiscal years, including per capita cash allocations. It also provides for transition protection.
Part 7 amends the Financial Administration Act to modernize Crown borrowing authorities.
Part 8 amends the Canada Mortgage and Housing Corporation Act to permit the Minister of Finance to lend money to the Canada Mortgage and Housing Corporation.
Part 9 amends the Bankruptcy and Insolvency Act, the Canada Deposit Insurance Corporation Act, the Companies’ Creditors Arrangement Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act to allow the Governor in Council to prescribe the meaning of “eligible financial contract”. Those Acts are also amended to provide that, after an insolvency event occurs, a party to an eligible financial contract can deal with supporting collateral in accordance with the terms of the contract despite any stay of proceedings or court order to the contrary. This Part also includes amendments to the Bankruptcy and Insolvency Act and the Winding-up and Restructuring Act to provide that collateral transactions executed in accordance with the terms of an eligible financial contract are not void only because they occurred in the prescribed pre-insolvency or winding-up period.
Part 10 authorizes payments to provinces and territories.
Part 11 authorizes payments to certain entities.
Part 12 extends the sunset provisions of financial institutions statutes by six months from April 24, 2007 to October 24, 2007.
Part 13 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with the power to authorize another minister, to whom he or she has delegated powers under that Act, to subdelegate those powers to the chief executive of the relevant department. That Act is also amended with respect to the application of section 9 to certain departments.
Part 14 amends the Financial Consumer Agency of Canada Act to allow the Minister of Finance to provide funding to the Agency for activities related to financial education.

The House resumed consideration of the motion that Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, be read the third time and passed, and of the motion that this question be now put.

Budget Implementation Act, 2007

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I am pleased to rise to speak to the bill. I think New Democrats have made it amply clear that we oppose the bill.

I will talk about Bill C-52 from a couple of different perspectives. I think some of my other colleagues have talked about health care, transportation and some of the needs of Vancouver Island north. I will focus on some other issues in British Columbia and talk about first nations, Métis and Inuit people in our country.

Many of us are well aware that a number of major issues are facing British Columbia, including housing, improving the provincial infrastructure and strengthening the B.C. economy. Although people will note that the B.C. unemployment rate is quite low, a number of communities are going through enormous transitions as a result of the softwood sellout.

In many of our forestry communities jobs have been lost. Last week there was an announcement in Port Alberni of another 185 jobs being lost. I know a number of the mills on Vancouver Island have faced curtailment because they could not get fibre supplied. Although some communities are doing quite well, a number of our communities are in a great deal of difficulty.

Under the new 10 province standard for equalization B.C., falls above the cutoff and will not receive equalization. Despite the increased needs, the budget does not address such things as affordable housing. I will talk briefly about Nanaimo in my riding of Nanaimo—Cowichan.

In a November 8, 2006, paper called “Advancing Social Development in Nanaimo: Directions for Moving Forward”, an organization in Nanaimo undertook to survey a number of groups that provide services. A couple of startling things came out of that which were tied to housing, employment and income.

One of the things that was noted was respondents cited the high levels of poverty, including child poverty in Nanaimo. They also stated that the community was becoming more polarized between rich and poor, with the latter having few options to improve their economic circumstances. This relates directly to housing.

One of the respondents to the questionnaire said, “Shelter is a basic need. It is the foundation upon which stable lives are built”. Respondents cited the increasing cost of housing, both owned and rental. They also cited the increasing incidence of homelessness and raised concerns about the kind of stock of market rental housing. They also noted that the market rental housing and the house vacancy rate had decreased from 3.4% in 2002 to 1.4% in 2005.

What that adds up to is an increasing number of people in Nanaimo—Cowichan cannot find a place to live.

[Ken Epp, Conservative, Edmonton—Sherwood Park, AB]

Mr. Speaker, I am delighted to stand in the House in order to support the bill before us today, Bill C-52.

As many members here know, I have for a long time been very interested in finances, particularly as they pertain to ordinary taxpayers, small businesses and families. This was one of the things that drew me into the parliamentary part of my life.

There are so many things in this bill that I could speak for probably several hours if the rules permitted, but I shall speak only for a short time. I would like to first of all mention my very enthusiastic support for the principle of income splitting for pensioners. This is long overdue.

Particularly in my generation, there were many families that had only a single income and that was our case as well. We made the choice that my wife, the mother of our children, would be a full time mom for our kids. I really value that. I think she probably contributed more to the well-being of our country by doing that than I did going to work every day, even though I may have gotten up at four o'clock in the morning.

I will also mention that we had perfect children. I do not know if other members did, but ours were. I know, for example, that right after they were born, I declared quite seriously that they never cried at night. They never once awakened me. My wife, on the other hand, I think may have some other stories to tell in that regard.

The bill, among other things, would allow income splitting for pensioners which would bring them into a lower tax rate. I think that is very important because most people who have made these choices also have half the income throughout their lifetime and half the pension when they retire. This is really part of the theme of tax fairness.

The other thing that is relevant here is the new tax credit of up to $2,000. Our government, this party and certainly I as an individual recognize not only the value of families raising children but also the tremendous expense that entails. Therefore, having a new tax credit of up to $2,000 is a tangible recognition of that. I applaud our finance minister and our government for introducing measures like that.

The other measure that I also support is making the equality of the spousal deduction equal to that of the single wage earner when there is but one wage earner in the home. It is another very pro-family measure that is being taken.

I do not want to sound in any way negative about this, but the money needed to support a person is really independent of whether or not the person works outside the home. In our experience, my wife actually spent as much money as I did and probably more because she managed our household expenses. As a matter of fact I used to say that we have specialization in our family. I earned the money and my wife spent it. The object of this was for me to be just a little better at my job than she was at hers. However, there definitely are expenses that are involved in the support of a spouse who is not working. To make that basic exemption equal is just a measure of fairness and I support that wholeheartedly and enthusiastically.

Because I believe so strongly and firmly in the merits of the bill, I therefore move:

That this question be now put.

The House resumed from June 6 consideration of the motion that Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, be read the third time and passed.

Business of Supply

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, I rise in the House in response to the motion by the member for Labrador regarding the government's commitment to Nova Scotia's offshore accord and the treatment of natural resources in the equalization formula. The member doubts that the government has honoured its commitments. I can assure the House that nothing could be further from the truth.

Budget 2007 provides important benefits to the people of Nova Scotia as part of the Government of Canada's commitment to fair and equitable financial support for provincial and territorial health care, post-secondary education, child care, social programs and infrastructure.

Budget 2007 does even more. Nova Scotia will continue to receive 100% of offshore resource revenues, including royalties, as if these resources were on land. This fundamental aspect of Nova Scotia's relationship with its offshore resources, its ability to manage the resource, to tax and collect the royalties remains the same. This will help Nova Scotia to develop its economic potential and ensure its future prosperity.

Let me remind the House that it was a Conservative government that signed the 1986 Canada-Nova Scotia offshore petroleum resources accord, which facilitated the development of the oil and gas reserves off the coast of Nova Scotia.

In specific terms, budget 2007 will allow the governments of Nova Scotia and Newfoundland and Labrador to continue to enjoy the benefits of their 2005 offshore accords. Again, I remind the House that it was a Conservative opposition that forced the previous government to sign these agreements. The accords are unique in Canada in recognition of the provinces' unique economic and fiscal circumstances.

Budget 2007 offers Nova Scotia a positive choice for the future. It can operate under the existing equalization formula, or it can choose to opt into the new equalization formula based on the O'Brien report, if and when the province determines this as being most advantageous. By having this additional choice, Nova Scotia potentially stands to receive even higher benefits than under the existing formula while retaining its right to offset payments under the accords.

Of course, if the Nova Scotia government chooses the new equalization formula, it is only fair that the whole package would apply, including the fiscal capacity cap that is an integral part of the new equalization formula. It would not be fair to other provinces if only Nova Scotia were allowed to choose those parts of the new equalization program that benefit the province.

Finally, Nova Scotia has been given additional flexibility beyond what was set out in budget 2007. Bill C-52 would allow Nova Scotia to benefit from the new O'Brien formula for 2007-08 and provides more time to assess whether it wants to permanently opt into the new equalization formula. This option has given Nova Scotia an additional $95 million, for total benefits of $1.5 billion in 2007-08. Under this arrangement Nova Scotia will receive its full offset payments under the offshore accords.

One can begin to see the difference where it matters. In April 2007 Nova Scotia's labour force participation rate of 64% was close to a 30 year high and full time jobs have increased by 2.5% over a year ago. The economy is strong in Nova Scotia.

Canada is a sharing community. Nova Scotia's growing prosperity is in part due to strong federal support and is something to celebrate. With 100% protection of the Atlantic accords and a positive choice for the future, the province can make sustained improvements to its economic and fiscal situation for the benefit of individuals and families throughout Nova Scotia.

Here is what Charles Moore said in the Halifax Daily News:

With the federal budget having passed second reading in the House of Commons, one hopes — wistfully, perhaps — that the histrionics over the [Conservative] government's policy revision of the Atlantic Accord will die down. At least here in Nova Scotia where the new equalization deal the feds are offering amounts to a substantially more advantageous bird-in-the-hand as opposed to the pipe-dream of petro-royalty riches.

It is convenient for the opposition to isolate certain measures in the budget and, of course, with a healthy injection of partisanship, ignore the larger picture. Let us look at the benefits to Nova Scotians that the members opposite are voting against.

Restoring fiscal balance brings federal support for Nova Scotia to $2.4 billion in 2007-08 and it is more than just equalization payments. They oppose the $639 million under the Canada health transfer. They are opposed to $277 million for the Canada social transfer, including additional funding for post-secondary education and child care. The $73 million for infrastructure would be lost. The $24.2 million available to the Nova Scotia government through the patient wait times guarantee trust over the next three fiscal years would be lost. The $8.5 million available to the Nova Scotia government to implement the human papilloma virus immunization program to combat cervical cancer over the next three fiscal years potentially would be lost. The $23.2 million in gas tax funding for municipalities in Nova Scotia in 2007-08 would be potentially lost. The $2 million in corporate income tax relief from changes in capital cost allowances for buildings could be lost. The $7 million in additional corporate income tax relief from the temporary two year writeoff for manufacturing equipment over the next two years is threatened. Nova Scotia will receive $42.5 million from the Canada ecotrust for clean air and climate change.

Of course, if the budget continues to be delayed by the official opposition, many of these millions could be lost or are threatened to be lost.

We are delivering on our commitments to the people of Nova Scotia, more than any of the members opposite ever did when they were in power. They should start supporting Nova Scotians and support the budget.

[Bill Casey, Independent, Cumberland—Colchester—Musquodoboit Valley, NS]

Mr. Speaker, I represent the flat earth party and we have a position on this.

I am pleased today to debate this issue and I will focus most of my remarks on the Atlantic accord aspect of the debate today.

I want to address the comments made by the very distinguished member for Edmonton—Leduc who tried to provide the perspective perhaps from Alberta. However, the part of the debate that I am focused on is not whether equalization is right or wrong or what is best for this province or that province. My focus is on the fact that I think the Government of Canada should honour a signed contract.

I believe that when the Government of Canada signs a contract this should be gold-plated. It should be bulletproof. When the Government of Canada signs its name, with the little red flag, on a piece of paper, whether it is a person in Tokyo, in Moscow, in Halifax or in St. John's, Newfoundland, the person should be able to count on that signature as being solid gold.

The contract we are talking about today, the one that has been amended so much in the budget, Bill C-52, was only signed in 2005. It is a 14-year contract signed by the Government of Canada and the Province of Nova Scotia. We are only two years into the contract and the government has decided it does not like it. Consequently, the government has put 12 amendments in the budget. I want the members opposite to notice, because what they say is not accurate, but under consequential amendments there are 12 paragraphs of amendments to the Atlantic accord.

If we go further, there are six paragraphs of amendments to the offshore revenue agreement that John Hamm signed two years ago in 2005. The government is now taking the contract signed by the Government of Nova Scotia and the Government of Canada and amending it with six fundamental changes to the contract. This is simply right or wrong and I think every Canadian has an interest in this. This is not just in the interest of Nova Scotia or Newfoundland. Every member of Parliament in this House should insist that if the Government of Canada signs a document, no matter if it is a Liberal government, a Conservative government, an NDP government or, heaven forbid, a Bloc government, the Government of Canada should honour the contract, no matter what, for the life of the contract. It is not flexible and it is not amendable. I honestly think the member for Edmonton—Leduc would agree with that.

I was just given a news article containing a comment by the Prime Minister at the G-8 a few minutes ago. He commented about my voting against the budget. He talks about how good the budget is.

I do want to say that it is a good budget and it is good for my riding. Many things in the budget do support and help my rural riding. However, that does not give the government permission to break a contract. Just because the government does some good things, it does not give it permission to break a contract. My opposition to the budget and the reason I voted against it was that I am 100% convinced that the budget does break this contract.

The Prime Minister said that the budget actually gives the Province of Nova Scotia $95 million in equalization over and above the Atlantic accord, but that is not right. He also said: .

That's one of the reasons Mr. Casey voted four times for the budget so obviously I don't think much of him changing his view the fifth time.

In all fairness, he knows better than anybody that we met with him and with the Minister of Finance over and over again. We put proposals on the table and got legal opinions. We raised it in caucus and we raised it in the House. We have done everything we can.

A week ago yesterday I realized that we were not making any headway. I wrote to the Prime Minister and put it right in his hand and said, “We're not making any headway with this by working behind the scenes. I am going to start speaking out publicly”. He took exception to that. I said, “We have to put pressure on it to make it move ahead”. I gave it to him in writing. I did not want to broadside him. I waited two days and then I made my first statement. Again, we made no progress.

On Monday morning, I wrote the Prime Minister a letter and said, “I cannot support this bill because it breaks a contract between the Government of Canada and the Government of Nova Scotia and I will not vote for it”. I made it very clear. I said it in two places in the letter.

The Prime Minister knows exactly why I voted for the budget the first time. We were in negotiations trying to find a solution but they went absolutely nowhere.

The Prime Minister says that Nova Scotia will get $95 million more in equalization, but that is not true. If the Atlantic accord were honoured, it would get the $95 million, plus the benefits of the offset that are not included in this. That is the fundamental part of the problem.

We believe the Atlantic accord could be changed with four or five words. The problem is that the budget and the accord have different wording. I have pointed this out to the Prime Minister and the finance minister several times. The accord says that the calculation of the payment will be based on the equalization formula that exists at the time. Any time the Government of Nova Scotia wants to calculate its offset payment, it would use the equalization formula that exists at the time.

Now, if we change it in 2010, it is that formula. If we change it in 2015, it is that formula. If we change it in 2019, it is that formula. That is what the accord says, which is a signed agreement and agreed to by both sides.

However, if we go to page 115 in the budget, it says that from now on it will be based on the previous formula. Instead of the vision of the accord, which is to follow along as the equalization formula evolves and changes, the budget locks it in at the previous formula. It, therefore, amends and changes the Atlantic accord fundamentally.

I asked the Minister of Finance today if he would stop saying that Nova Scotia has the option of the new formula or the old Atlantic accord, because it does not. He said it a thousand times. Many of the ministers have. I said it myself, because I believed it, until I got into this. However, it is not true. The Province of Nova Scotia and the Province of Newfoundland and Labrador do not have the option of the new formula or the old Atlantic accord. Everybody in this House has heard the Minister of Finance say that a dozen times. It is not true because the budget changes both Atlantic accord agreements. Twelve paragraphs in the accord are changed and amended and six paragraphs on the John Hamm agreement that was negotiated in 2005.

If the government wants to be honest and accurate, it should say that the Province of Nova Scotia has the choice of the new formula or an amended Atlantic accord, but that it does not have access to the old Atlantic accord.

I had hoped the minister would take my advice and be accurate and say that if that is the case. When I asked that question, he pointed out that I said that the budget was good. I did say the budget was good and that it was good for my riding but it does not give anybody the right to break a contract. We all sign contracts and we all honour them. All Canadians honour contracts. The Government of Canada should honour its contracts, no matter who signs them, whether it is the Liberals, the Conservatives, the NDP or whichever party is the government at the time. I feel very strongly about that.

I will go back to this nine paragraph agreement called the Atlantic accord. It was signed and agreed to by John Hamm and the very distinguished minister of fisheries and oceans at the time, the member from Halifax. It is a simple agreement but a very meaningful one to Nova Scotia.

Newfoundland and Labrador has a similar agreement and it means the world to Newfoundland and Labrador, as it does to Nova Scotia.

The member for Edmonton—Leduc took exception to the agreement but every province has exceptions and every province has special deals. This is our special deal and we value it tremendously.

We just signed an agreement with British Columbia to give it hundreds of millions of dollars for the Pacific Gateway. Manitoba did not get a Pacific Gateway fund, neither did Ontario nor did Digby.

Nova Scotia's special deal is the Atlantic accord and we are not flexible on it. We will continue to demand the Atlantic accord. It is only nine paragraphs long but it is a work of art. I did not realize how good it was until we got into this debate and I started to study it. It is really neat. I was moved to call John Hamm, the former premier of the province, because it is magic. I sold cars for 20 years and made a lot of deals but I could not make a deal as good as this one. It is an excellent deal and John Hamm deserves the credit.

John Hamm also agrees that this budget changes the purpose, the intent and the spirit of this agreement. I have great faith in John Hamm and his comments on it. He has helped me a great deal through this as I have learned to understand how it all evolved and how it came to be.

I am again asking the government to not only honour this signed contract, but to honour every contract. When the Government of Canada signed that contract it should have been gold-plated and recognized around the world as Canada.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, today we will be continuing with the business of supply.

Tomorrow we hope to conclude third reading of Bill C-52. In answer to the question on priorities, I would point out that Bill C-52, the budget implement bill, is the number one priority of this government. We can talk about other priorities after we see an indication that it will be heading for royal assent. If we do not have it, it will result in the loss of $4.3 billion in 2006-07 year end measures which include: $1.5 billion for the Canada ecotrust for the provinces; $600 million for patient wait times guarantees; $400 million for Canada Health Infoway; $200 million for protection of endangered species; $30 million for the Great Bear rain forest; $600 million for labour market agreements for the provinces; $30 million for the Rick Hansen Foundation; $100 million in aid for Afghanistan; $100 million to Genome Canada; and so on. It is a long list of important priorities financing that will be lost if the bill is not passed by the end of this session in June. That is obviously our number one priority.

Next week will be getting things done for all of us week when we consider a number of bills that are in their final stages of the legislative process.

The following bills will be placed under Government Orders for debate: Bill C-11, An Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts, which the Senate reported with amendments and which is now back before the House to receive the approval of the members, and Bill C-23, An Act to amend the Criminal Code (criminal procedure, language of the accused, sentencing and other amendments).

We are awaiting the Senate's report with amendments on Bill C-31, An Act to amend the Canada Elections Act and the Public Service Employment Act.

Bill C-33, An Act to amend the Income Tax Act, including amendments in relation to foreign investment entities and non-resident trusts, and to provide for the bijural expression of the provisions of that Act, Bill C-42, An Act to amend the Quarantine Act and Bill C-47, An Act respecting the protection of marks related to the Olympic Games and the Paralympic Games and protection against certain misleading business associations and making a related amendment to the Trade-marks Act, will probably be passed by the House at third reading.

Discussions have taken place with the opposition parties, and there may be consent to fast-track some or all of the following bills: Bill C-59, An Act to amend the Criminal Code (unauthorized recording of a movie), Bill S-6, An Act to amend the First Nations Land Management Act and Bill C-51, An Act to give effect to the Nunavik Inuit Land Claims Agreement and to make a consequential amendment to another Act.

There is also a possibility of quick passage of a new bill entitled “An act to amend the Geneva Conventions Act, an act to incorporate the Canadian Red Cross Society and the Trademarks Act”, which appears on today's notice paper.

There are a number of other bills I am still hoping we could get included in getting things done for all of us week, provided that they get reported back from committee, in particular, Bill C-6 aeronautics; Bill C-27 dangerous offenders; Bill C-32 impaired driving; and Bill C-44, the bill to grant first nations people the human rights that every other Canadian enjoys. First nations people expect the House to get things done for them as well, so I urge the aboriginal affairs committee to stop delaying Bill C-44 and report it back to the House early next week. It is a priority for this government.

Budget Implementation Act, 2007

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I noted with interest some of the comments that the member opposite made. I am wondering if he would comment on how the people in his province are receiving the good news that there will be this $2,000 child tax credit, saving Quebec parents almost $300 million.

Also, there is an increase in the basic spousal amount providing another almost $60 million in tax relief. Certainly, there are many initiatives here that I would think that he would be glad to support in Bill C-52.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, it is my honour to talk today about Bill C-52. It is an important bill. Honesty was mentioned many times by the member, and I think he is treading on very dangerous ground.

I attended every one of the committee meetings dealing with income trusts, for example. Not once did the member bring forward the concept of the Liberal plan or discuss it with any of the witnesses during those sessions. I challenge him to check the blues on that. It was after they were all done.

It is completely dishonest to say that the Conservatives checked to see whether the experts we had in front of us believed in his plan. For someone who represents one area and lives in another, honesty is a really difficult thing I think.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I listened carefully to the remarks of the parliamentary secretary. I certainly applaud the initiatives of the budget and specifically of Bill C-52.

The tax cuts for families are very well received in my riding. The improved financial security from the measures for seniors, such as pension splitting and RRSP regulation changes, is also very important.

However, I want to refer specifically to a comment that she made in regard to the investment of $50 million for research and development to the Perimeter Institute.

I have had the privilege of visiting the Perimeter Institute and the Institute for Quantum Computing. I want to confirm that she said if Bill C-52 is not passed that $50 million could be in jeopardy, because if that is true, there are many residents of the KW area who will be very concerned. In fact, this would impact the future research capabilities of this great institution.

[Diane Ablonczy, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I welcome the opportunity to introduce Bill C-52 at third reading. Once passed, the proposed legislation will implement key measures from budget 2007 along with other tax initiatives that were announced prior to the budget.

Our goal is to help Canada and Canadians unleash an extraordinary potential. We are a successful, independent nation that believes in tolerance, justice and providing a helping hand to the less fortunate.

As the world changes, Canadians need to work together to make Canada even more prosperous and strong. We have a plan, “Advantage Canada”, that will take us there, and the measures in Bill C-52 are an integral part of that plan.

To that end, Bill C-52 proposes to invest an additional $39 billion over the next seven years to help the provinces and territories deliver the quality services that Canadians have come to expect from a country as great as ours.

It is difficult to visualize just how many dollars there are in $1 billion, so I will like to put it in a different perspective. A billion dollars is a thousand million and $39 billion would be 39 thousand million.

A billion hours ago, our ancestors were living in the stone age. A stack of one billion dollar bills will reach from the ground to 120 kilometres upward. If one sat down to count a billion dollar bills, and I would like that chore, and could count them at the rate of one per second, every second of every day, it would take more than 30 years to finish counting that one billion dollars.

If you earned $1,000 a day, Mr. Speaker, and I am sure you are worth that, you would take 2,740 years to earn $1 billion. If you had $1 billion and you spent $3,000 of it every day, and I am sure some of us would be able to do that, it would take 1,000 years to spend the whole $1 billion.

When I say that our government is putting $39 billion additional new money into the hands of provinces and territories to provide good services for Canadians, that is a lot of money, 39 billion new dollars. That will provide Canadians with health care, post-secondary education, new child care spaces, a clean environment and infrastructure like roads, bridges and public transit.

In addition, Bill C-52 contains a number of tax reduction measures that will improve the standard of living for Canadians. I am talking about the working family tax plan that will make it easier for working families to get ahead and stay ahead.

This plan includes a new $2,000 child tax credit that will provide up to $310 of tax relief for each child under 18 to more than three million Canadian families. The plan also increases the spousal and other amounts to the same level as the basic personal amount. This will provide up to $209 of tax relief to two parent families with one parent who earns little income.

Single parents and family members caring for dependants will also benefit. The working family tax plan helps families saving for their children's education by eliminating the $4,000 limit on annual contributions for registered education savings plans and increasing the lifetime contribution limit to $50,000 from $42,000. It also increases the maximum annual Canada education savings grants amount to $500 from $400.

As for our pensioners and seniors, the plan increases the age limit to 71 from 69 for registered retirement savings plans and registered pensions.

Bill C-52 also proposes to enact the tax fairness plan. This plan will provide tax assistance to our seniors by increasing the amount eligible for the age credit by $1,000, putting it up to $5,066. The plan will also help our seniors by allowing couples, for the very first time, to split their pension income. This represents tax savings of over $1 billion annually for Canadian pensioners and seniors.

Going forward, the government is committed to providing additional tax relief for individuals to improve the rewards from working, saving and investing.

Canada's new government has built on its commitment to implement the 10 year plan to strengthen health care, a plan that provides $41.3 billion in new federal funding over 10 years to provinces and territories.

In budget 2007 we built on that commitment. For example, the budget proposes an investment of $400 million for Canada Health Infoway, an organization that is making significant progress in working with provinces and territories to implement electronic health records. This initiative will help reduce wait times, reduce the risk of medical errors and lead to better health outcomes.

Furthermore, Bill C-52 proposes funding of up to $612 million to support all provinces and territories as they move forward with their commitment to implement patient wait times guarantees.

As we know, in July 2006 Canada's new government approved the use of a vaccine that provides protection for young girls and women against two types of human papillomavirus, or HPV. These viruses are responsible for approximately 70% of cancers of the cervix in Canada. This is the second most common cancer in women aged 20 to 44 after breast cancer, and that is a very disturbing statistic. That is why a measure from budget 2007 contained in the bill proposes to provide $300 million in per capita funding for provinces and territories to fight HPV.

Canada's new government has a comprehensive and results oriented plan to clean our air, help address climate change and create a healthier environment for Canadians. With that goal in mind, budget 2007 proposes to invest $4.5 billion toward a cleaner, healthier environment. Bill C-52 takes an important first step in that direction by proposing to provide more than $1.5 billion to a trust fund for initiatives undertaken by provinces and territories in support of clean air and climate change projects.

In addition, building on the initiatives taken in budget 2006, our government will strengthen conservation of sensitive land and species and preservation of our cultural and natural heritage. One such measure in Bill C-52 proposes $225 million for the Nature Conservancy of Canada to conserve ecologically sensitive land in southern Canada.

The bill also proposes $30 million in funding to support an innovative model of sustainable land and resource management development in the Great Bear Rain Forest on the central coast of British Columbia.

As members know, Genome Canada is a not for profit corporation that supports Canadian research leadership in genomics, a powerful emerging field, with the potential for significant advances in health care, sustainable development and in the environment. Since its creation, Genome Canada has been very successful at strengthening the genomics research environment in Canada, not only by attracting leading scientists but putting in place the advanced technology needed for genomics work.

Bill C-52 proposes to provide Genome Canada with an additional $100 million in 2006-07 to sustain funding to support, among other things, Canada's participation in strategic international research collaborations.

Bill C-52 contains a number of other important measures, none more important perhaps as the proposal to provide additional funding to help in the reconstruction of Afghanistan.

Canadians, as we all know, have played a significant role in supporting that country's efforts to build a free, democratic and peaceful country. That is why the bill proposes to provide $200 million in additional support for reconstruction and development of Afghanistan, with initiatives that create new opportunities for women, strengthen governments, enhance security and address the challenge of combatting illegal drugs.

We can see that Bill C-52 is a comprehensive bill, encompassing a broad range of initiatives to help Canadian succeed, to enhance important social services and to support our global contribution.

That is why timely passage of the bill is important. A number of measures in the bill will be lost if the bill does not receive royal assent by August 31, which for our purposes means by the time both the House and the other House rise in June. There are immediate and grave consequences which cannot be resolved in September. The money will be gone and the Liberals need to be aware of this, as well as all Canadians.

Let me explain this. Should the budget implementation act not receive royal assent before the government's financial statements are finalized in August, it will not be possible to account for these measures in 2006-07.

If the budget is not passed until the fall or later, the money for the measures, which I will mention, would have to be booked in 2007-08 from new money and to do so would have to compete with new demands.

The money from 2006-07 would by law have to go into the 2006-07 surplus and then be applied to the debt and not to program funding. Therefore, a number of measures would not go forward if the bill is not passed in a timely fashion.

Measures that would not go forward are: $1.5 billion for a Canada trust foundation for clean air and climate change; over half a billion dollars for patient wait time guarantees trust; $0.4 billion for the Canada Health Infoway; $0.1 billion for CANARIE; $0.2 billion for the Nature Conservancy of Canada; $0.3 billion for the Great Bear Rainforest; $0.6 billion for labour market agreements; $0.3 billion for the Rick Hansen Foundation; $0.1 billion in aid to Afghanistan; $100 million to Genome Canada; and $50 million to the Perimeter Institute for Theoretical Physics.

I mention all of this because there have been some bumps in the road, and some possible future bumps in the road, in both Houses of Parliament in ensuring that this important bill, which has been before us for some time, is passed in a timely manner. I do not think Canadians want to see these important measures I have just listed lost because parliamentarians cannot work together constructively for good things for Canada and Canadians.

I end by urging all members of both this House and the other place to give Bill C-52 their support in a timely manner, so the benefits can start to flow to Canadians as they should.

[Jim Prentice, Conservative, Calgary Centre-North, AB]

moved that Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, be read the third time and passed.

[Jim Flaherty, Conservative, Minister of Finance]

moved that Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, as amended, be concurred in at report stage with further amendments.

[The Acting Speaker, Conservative, Andrew Scheer]

The hon. member for Scarborough—Agincourt perhaps can come back to the House to request unanimous consent to table it, but we have to move on to the deferred recorded division on the motions at report stage of Bill C-52.

Call in the members.

The House resumed from June 4 consideration of Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, as reported (with amendment) from the committee, and of the motions in Group No. 1.