Bill C-10 (Historical)

Budget Implementation Act, 2009

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures

Part 1 implements income tax measures proposed in the January 27, 2009 Budget. In particular, it
(a) increases by 7.5% above their 2008 levels the basic personal amount and the upper limits for the two lowest personal income tax brackets, thereby also increasing the income levels at which income testing begins for the base benefit under the Canada Child Tax Credit and the National Child Benefit supplement;
(b) increases by $1,000 the amount on which the Age Credit is calculated;
(c) increases to $25,000 the maximum amount eligible for withdrawal under the Home Buyers’ Plan;
(d) introduces amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds to allow for recognition of losses in accounts between the time of the annuitant’s death and final distribution of property from the account;
(e) repeals the interest deductibility constraints in section 18.2 of the Income Tax Act;
(f) extends the mineral exploration tax credit for one year;
(g) increases to $500,000 the annual amount of active business income eligible for the 11% small business income tax rate and makes related amendments;
(h) clarifies rules relating to timing of acquisition of control of a corporation; and
(i) creates cost savings through electronic filing of tax information.
In addition, Part 1 implements income tax measures that were referenced in the January 27, 2009 Budget and that were originally proposed in the February 26, 2008 Budget but not included in the Budget Implementation Act, 2008. In particular, it
(a) clarifies the application of the excess corporate holdings rules for private foundations;
(b) increases the amount that corporations will be able to pay as “eligible dividends”;
(c) enacts several regulatory amendments that complement and complete measures enacted in the Budget Implementation Act, 2008;
(d) introduces minor adjustments to the Tax-Free Savings Account rules and the scientific research and experimental development investment tax credit rules included in the Budget Implementation Act, 2008;
(e) implements rules in respect of donations of medicines; and
(f) reduces the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.
Part 1 also implements other income tax measures referred to in the January 27, 2009 Budget that either were themselves previously announced or flow directly from previously announced measures. In particular, it
(a) implements technical changes relating to specified investment flow-through trusts and partnerships and new tax rules to facilitate the conversion of these entities into corporations;
(b) contains amendments to take into account financial institution accounting changes;
(c) extends the general treatment of capital gains and losses on an acquisition of control of a corporation to gains and losses that result from fluctuations in foreign exchange rates in respect of debt denominated in foreign currency;
(d) enhances the carry-forward for investment tax credits;
(e) implements amendments relating to the computation of income, gains and losses of a foreign affiliate;
(f) implements amendments to the functional currency tax reporting rules;
(g) implements minor tax amendments relating to interprovincial allocation of corporate taxable income, the Wage Earner Protection Program and the Canada-United States tax treaty’s rules for cross-border pensions;
(h) provides for an extension of time for income tax assessments that are consequential to provincial reassessments;
(i) ensures the appropriate application of the Income Tax Act’s trust rules to certain arrangements and institutions under Quebec civil law;
(j) enacts regulatory amendments relating to prescribed amounts for automobile expenses and benefits, eligible medical expenses, and the tax treatment of foreign affiliate active business income earned in a jurisdiction with which Canada has concluded a tax information exchange agreement;
(k) introduces rules to reduce the required minimum amount that must be withdrawn from a Registered Retirement Income Fund or from a variable benefit money purchase pension plan by 25% for 2008, and allows related re-contributions;
(l) extends the deadline for Registered Disability Savings Plan contributions; and
(m) modifies the provisions relating to amateur athletic trusts.
Part 2 amends the Excise Act, 2001 and the Excise Tax Act to implement measures to reduce the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.
Part 3 amends the Customs Tariff to implement measures announced in the January 27, 2009 Budget to
(a) reduce Most-Favoured-Nation rates of duty and, if applicable, rates of duty under other tariff treatments on a number of tariff items relating to machinery and equipment imported on or after January 28, 2009;
(b) divide tariff item 9801.10.00 into two separate tariff items pertaining to conveyances and containers, respectively, and make two technical corrections, effective January 28, 2009; and
(c) modify the tariff treatment of milk protein substances, effective September 8, 2008.
Part 4 amends the Employment Insurance Act until September 11, 2010 to extend regular benefit entitlements by five weeks. It also provides that a pilot project ceases to have effect. In addition, it amends that Act to provide that the cost of benefit enhancement measures under that Act, provided for in the budget tabled in Parliament on January 27, 2009, are not to be charged to the Employment Insurance Account. Finally, it sets the premium rate provided for under that Act for the years 2002, 2003, 2005 and 2010.
Division 1 of Part 5 amends the Financial Administration Act to authorize the Minister of Finance to take, subject to certain conditions, a number of measures intended to promote the stability or maintain the efficiency of the financial system, including financial markets, in Canada.
Division 2 of Part 5 amends the Canada Deposit Insurance Corporation Act to provide the Canada Deposit Insurance Corporation with greater flexibility to enhance its ability to safeguard financial stability in Canada. The Division also adds Tax-Free Saving Accounts as a distinct category for the purposes of deposit insurance. It also makes consequential amendments to other acts.
Division 3 of Part 5 amends the Export Development Act to, among other things, expand the Export Development Corporation’s mandate to include the support and development of domestic trade and business opportunities for a period of two years. The period may be extended by the Governor in Council. Division 3 also increases the Corporation’s authorized capital.
Division 4 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.
Division 5 of Part 5 amends the Canada Small Business Financing Act to increase the maximum outstanding loan amount in relation to a borrower. It also increases individual lenders’ cap on claims. These amendments will apply to new loans made after March 31, 2009.
Division 6 of Part 5 amends a number of Acts governing federal financial institutions to improve access to credit and strengthen the financial system in Canada, including amendments that will
(a) provide new authority for further safeguards to promote the stability of the financial system;
(b) enhance consumer protection by establishing new measures to help consumers of financial products; and
(c) implement other technical measures to strengthen the financial sector framework in Canada.
Division 7 of Part 5 provides for payments to be made to provinces and territories, provides authority to the Minister of Finance to enter into agreements respecting securities regulation with provinces and territories and enacts the Canadian Securities Regulation Regime Transition Office Act.
Part 6 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes, including infrastructure and housing.
Part 7 amends Part I of the Navigable Waters Protection Act to create a tiered approval process for works in order to streamline the approval process and to exclude certain classes of works and works on certain classes of navigable waters from the approval process. This Part further amends Part I of the Act to clarify the scope of the application of that Part to works owned or previously owned by the Crown, to provide for the application of the Act to bridges over the St. Lawrence River and to add certain regulation-making powers.
Part 7 also amends the Act to clarify the provisions related to obstacles and obstructions to navigation. The Act is also amended by adding administration and enforcement powers, consolidating all offence provisions, increasing fines and requiring a review of the Act within five years of the amendments coming into force.
Division 1 of Part 8 amends the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations to provide that unpaid wages for which an individual may receive payment under the Wage Earner Protection Program include unpaid severance pay and termination pay.
Division 2 of Part 8 amends the Canada Student Financial Assistance Act to, among other things,
(a) require the Chief Actuary of the Office of the Superintendent of Financial Institutions to report on financial assistance provided under that Act; and
(b) authorize the Minister of Human Resources and Skills Development to suspend or deny financial assistance to all those who are qualifying students in respect of a designated educational institution.
Division 2 of Part 8 also amends both the Canada Student Financial Assistance Act and the Canada Student Loans Act to, among other things,
(a) terminate all obligations of a borrower with respect to risk-shared loans and guaranteed loans if the borrower dies;
(b) authorize the Minister of Human Resources and Skills Development to require any person who has received financial assistance or a guaranteed student loan to provide that Minister with documents or information for the purpose of verifying compliance with those Acts; and
(c) authorize that Minister to terminate or deny financial assistance in certain circumstances.
Division 3 of Part 8 amends the Financial Administration Act to provide express authority for agent Crown corporations to lease their property, restrict the appointment of employees of a Crown corporation to its board of directors, require Crown corporations to hold annual public meetings, clarify Treasury Board’s duties to indemnify Crown corporation directors and officers, permit more flexibility in the frequency of special examinations of Crown corporations, and require the reports of special examinations to be submitted to the appropriate Minister and Treasury Board and made public. This Division also makes consequential amendments to other Acts.
Part 9 amends the Federal-Provincial Fiscal Arrangements Act to set out the amount of the fiscal equalization payments to the provinces for the fiscal year beginning on April 1, 2009 and amends the method by which fiscal equalization payments will be calculated for subsequent fiscal years. It also amends the method by which the Canada Health Transfer is calculated for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014.
Part 10 enacts the Expenditure Restraint Act. The purpose of that Act is to put in place a reasonable and an affordable approach to compensation across the federal public sector in support of responsible fiscal management in a difficult economic environment.
It sets out rules governing economic increases to the rates of pay of unionized and non-unionized employees for periods that begin during the period that begins on April 1, 2006 and ends on March 31, 2011. It also continues certain other terms and conditions at their current levels. It preserves the right of collective bargaining with regard to other matters and it does not affect the right to strike.
The Act does not preclude the continued development of workplace improvements by employers and employees’ bargaining agents through the National Joint Council or other bodies that they may agree on. It also permits bargaining agents and employers to agree to the amendment of certain terms and conditions of collective agreements or arbitral awards.
Part 11 enacts the Public Sector Equitable Compensation Act and makes consequential amendments to other Acts. The purpose of the Act is to ensure that proactive measures are taken to provide employees in female predominant job groups with equitable compensation.
It requires public sector employers that have non-unionized employees to determine periodically whether any equitable compensation matters exist in the workplace and, if so, to prepare a plan to resolve them. With respect to public sector employers that have unionized employees, the employers and the bargaining agents are to resolve those matters through the collective bargaining process.
It sets out the procedure for informing employees as to whether an equitable compensation assessment was required to be conducted and, if so, how it was conducted, and how any equitable compensation matters were resolved. It also establishes a recourse process for employees if the Act is not complied with.
Finally, since the Act puts in place a comprehensive equitable compensation scheme for public sector employees, this Part amends the Canadian Human Rights Act so that the provisions of that Act dealing with gender-based wage discrimination no longer apply to public sector employers. It extends the mandate of the Public Service Labour Relations Board to allow it to hear equitable compensation complaints and to provide other services related to equitable compensation in the public sector.
Part 12 amends the Competition Act. The amendments include
(a) introducing a dual-track approach to agreements between competitors, with a limited criminal anti-cartel provision and a civil provision to address other agreements that substantially lessen or prevent competition;
(b) providing that bid-rigging includes agreements or arrangements to withdraw bids or tenders;
(c) repealing the provisions dealing with price discrimination and predatory pricing, replacing the criminal resale price maintenance provision with a new civil provision to address price maintenance practices that have an adverse effect on competition, and repealing all provisions dealing specifically with the airline industry;
(d) introducing an administrative monetary penalty for cases of abuse of dominant position, increasing the maximum amount of administrative monetary penalties for deceptive marketing cases, and increasing the maximum fines or terms of imprisonment, or both, for agreements or arrangements between competitors, bid-rigging, criminal false or misleading representations, deceptive telemarketing, deceptive notice of winning a prize, obstruction of Competition Bureau investigations and failure to comply with prohibition orders or production orders;
(e) clarifying that, in proceedings under section 52, 74.01 or 74.02, it is not necessary to establish that false or misleading representations are made to the public in Canada or are made in a place to which the public has access, and clarifying that the “general impression test” applies to all deceptive marketing practices in sections 74.01 and 74.02;
(f) providing that the court may make an order in respect of cases of false or misleading representations to require the person who engaged in the conduct to compensate persons affected by the conduct, and may issue an interim injunction to freeze assets if the Commissioner of Competition intends to ask for such a compensation order; and
(g) introducing a two-stage merger review process for notifiable transactions, increased merger pre-notification thresholds and a reduced merger review limitation period.
Part 13 amends the Investment Canada Act so that the review of an investment will be applied only to the more significant investments. It also amends the Act to allow more information to be made public. This Part also provides for the review of foreign investments in Canada that could threaten national security and allows the Governor in Council to take any measures that the Governor in Council considers advisable to protect national security, such as prohibiting a non-Canadian from implementing an investment.
Part 14 amends the Canada Transportation Act to provide the Governor in Council with flexibility to increase the foreign ownership limit from the existing levels to a maximum of 49%.
Part 15 amends the Air Canada Public Participation Act in relation to the mandatory provisions in the articles of Air Canada regarding constraints imposed on the issue, transfer and ownership of shares. It provides for the repeal of the provisions requiring that the articles of Air Canada contain provisions imposing limits on non-resident share ownership and the repeal of the provisions requiring that the articles of Air Canada contain provisions respecting the enforcement of these constraints.

Budget Implementation Act, 2009

[John Rafferty, NDP, Thunder Bay—Rainy River, ON]

Madam Speaker, aside from the environmental impact of changes to the Navigable Waters Protection Act, there is also a situation here. This is a question I have for the hon. member. That act was originally enacted in 1882. It is one of Canada's oldest pieces of legislation. There is no doubt that it needs a little modernization.

In the name of cutting red tape, to speed up the building of infrastructure projects and stimulate the economy, the government is introducing changes that will remove navigable status from thousands of waterways in Canada. It is one of the things that is not talked about that much. It is not a monetary item in the budget. I wonder if the hon. member would have a comment to make on that.

[Dennis Bevington, NDP, Western Arctic, NT]

Madam Speaker, I will certainly go back at it. Once again, we see here the minister taking on the authority for laying out different conditions under the law, for making changes to things that people hold very valuable without consulting them, without having a process of appeal. This is wrong.

This is a process that goes against our very democratic nature. It goes against the sort of strong feeling that people have for our river systems across the country. There are millions of people who use those river systems for navigation in small boats and canoes. These people have rights, too.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Madam Speaker, I with to thank the member for Western Arctic for his speech. It was brilliant as always. He is a very passionate and outspoken advocate for the north. We appreciate his presence in the House. He brings the north's voice right here to the House of Commons.

I am interested in the budget implementation bill and the fact that essentially the Conservatives pulled a fast one. They tucked a whole bunch of things into the bill that Liberals obviously did not read or did not care to take the time to understand, including allowing the opportunity for more foreign takeover of Canadian companies including in transportation sector.

I know the member is the transportation critic for the NDP. My question is simple. Does he think that this allowance for more foreign takeovers is going to be helpful to Canada, helpful to the transportation sector? My second question is, why are the Liberals voting for it and allowing these takeovers to go through?

[Dennis Bevington, NDP, Western Arctic, NT]

Madam Speaker, as I pointed out in my speech, the ability of foreign interest to take over companies like Air Canada could mean a significant amount to the workforce that works within the aviation industry. It could mean that we will be seeing offshore maintenance supplied to the aircraft. That could be accelerated through ownership by companies that come from other places.

The only hold that we have over the aviation industry right now is that we insist that the majority ownership is Canadian. In some cases that has already been circumvented by clever legal means. Nonetheless, the principle remains. The aviation industry being an industry that can utilize services from any part of the world needs to have a significant portion of the ownership reside within Canada.

Why did the Liberals support this bill? I think it goes back to the basics of what I was talking about earlier. We simply do not trust the Conservatives to deliver on their promises. We did not trust the Conservatives to come up with a budget that was a budget that could bring Canadians together. The Liberals made a choice to support the budget for the reasons that they felt it was politically expedient. They have chosen to go into an alliance with the Conservatives to put forth their somewhat considerable connections they have within their ideological grounds as well.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Madam Speaker, as I rise to speak today, I think I owe the House a little bit of an explanation because as I speak members will hear my voice tremble and see my hands shake. The reason is simple. It is not that I am frightened; I am damn angry. I am angry at what is hidden in this document that is hurting the workers, the families and the seniors in my community.

In light of the times, we had a chance with this bill for a dawning of a new age. We could have joined with what is happening south of the border. Clearly, there is a new day dawning in that country. It is not without some turmoil, following two right-wing Republican governments, but times are changing. The U.S. federal government, with the lead of the new Obama administration, is very clearly with its people.

That is a role our federal government should play. It should be with the Canadian people. Day to day it should show the Canadian people where government belongs in their lives. Instead, it is trying to withdraw government from their lives. Times of turmoil such as these are the most important time for government intervention in our economy. Here in Canada our government could have chosen to join that progressive view that is coming out of Washington and out of the U.S.

The government could have had provisions which aided municipalities by addressing the huge $122 billion infrastructure deficit. The government could have recognized the need to lift municipalities in a time of crisis by paying, along with the provinces, for measures to address the significant infrastructure problems. Clearly, many municipalities simply cannot afford the one-third upfront cost of sharing in these projects.

In addition to truly missing a huge opportunity for real national leadership, Canadians once again were hit by backdoor politics. During a time of crisis, the Conservatives have moved to advance their ideology by inserting into the bill provisions that are detrimental to our environment, to women and even to students in universities.

Bill C-10, if we listened to the rhetoric, was supposed to be about stimulus. Why are there so many non-monetary provisions in this document? Why in the world are there no significant measures for seniors, the people who built our country, who are the very backbone of Canada?

I want to tell a story, which I have told before in the House but it is worthy of repeating. About two months ago, maybe three now, a man in his mid-seventies came into my office with tears in his eyes, talking about a letter he received from the government announcing a stupendous increase to his pension: 42¢ a month. That says so much about how the government and previous governments have looked at seniors as an invisible group in our country.

Today I met briefly with the National Pensioners and Senior Citizens Federation. Its members had a brief they were trying to present to the government. Where was the government when it was asked to protect seniors from poverty? These seniors cannot even get a hearing from the minister. They have a brief that outlines measures they believe from their experience would protect seniors. For instance, when a senior's husband or wife passes away, if they have no other means but OAS and CPP, why are we condemning them to poverty? Why are we doing this as a country? There must be other ways to ensure dignity for seniors in their final years. There is no time that it is acceptable in Canada for one single senior to sleep on the streets of our country.

The government can give away $60 billion in tax breaks to profitable corporations, and I stress the word “profitable”. It is not even helping the companies that are in trouble. It is giving it to the profitable corporations. By doing so it is taking billions of dollars out of the fiscal capacity of our country, money that could have gone to help our seniors and the unemployed.

It cannot even set aside a $1 billion out of that $60 billion for the seniors of our country, and I will tell the House why. The seniors of Canada are an invisible population. They are certainly invisible to the Conservatives. They are not flashy, like the friends of the Cadillac Conservatives that we see around here, but I guarantee that members will be hearing more from seniors and they will be hearing more from me as the seniors critic for the NDP.

If the House wants to hear just how removed from working people and seniors these Conservatives are just listen to the remarks of the Minister of Human Resources when she said on January 30:

We do not want to make it lucrative for them to stay home and get paid for it, not when we still have significant skill shortages in many parts of the country.

In Hamilton, this so outraged the Hamilton District Labour Council that it put out a media release calling for the minister to resign and I support that recommendation. In Hamilton, 8,000 of my friends and neighbours lost their jobs in one month alone, January, with another 17,000 last year. Households across Hamilton are reeling as our industrial sector gets hammered again and again.

Seniors on retirement incomes in Hamilton East—Stoney Creek are watching and have watched their savings disappear. They are questioning what is going to be done to protect their pensions. To show the grossness of some of the taxation policies of this country, a man came to my office who took the responsibility to bury his cousin who was single. He took that responsibility and paid for the funeral. He was not a man of means. Imagine his shock when he found that the measly death benefit from CPP was taxable. He had taken that responsibility and he had to now pay tax on it.

On the environment file the Conservatives' ideology once again rears its nasty head. They have amended Bill C-10 which, in their words, will streamline the Navigable Waters Protection Act. This should alarm anyone who is used to Conservative spin. This is code for removing many environmental safeguards at a time when Canadians want their government to move to protect the environment, not be part of its devastation.

This ideological war continues with further attacks on women's rights which follow the pattern set when they discontinued funding for the Status of Women in the last session. Now it is pay equity that is under attack.

Clearly, the budget fails students. It fails seniors. It fails the workers of Canada and that is why I will not be supporting the budget. I will do everything in my power to ensure that those people who are left behind learn about the disgraceful measures contained in the budget.

At this point my frustration level is getting to the point where I am starting to lose my place, but that never means for a minute that I will lose my passion for the workers of Hamilton, for the citizens of Hamilton, and the people who have been sold out by the government and its new partners, the Liberals.

[Thomas Mulcair, NDP, Outremont, QC]

Madam Speaker, I would like to congratulate my hon. colleague on his speech and ask him to talk specifically about one of the poison pills hidden in the Conservative budget, that is, the fact that they are taking away women's right to equal pay for work of equal value.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Madam Speaker, the member for Outremont is very accurate when he calls it a poison pill. It is tucked into the budget because we know that there are some Liberals who have principles. There are some good Liberals who have fought for many years, along with the Bloc and the NDP, for human rights and for women's rights. However, by slipping this in once again it is like the last session of Parliament when forty-some times the Liberals supported aspects of the government's ideology, a plan to save their own hides. Once more the Liberals in particular are willing to join with the Conservatives to sell out women on pay equity.

[Olivia Chow, NDP, Trinity—Spadina, ON]

Madam Speaker, seniors tell me they do not go out because they cannot afford the bus fares. They are cutting off their cable TV because they cannot afford it. They are even thinking of cutting off their phone service because they cannot afford it. Some are on waiting lists for affordable housing that they will never get because in Toronto there is a 6 to 10 year wait list for affordable housing. These seniors are not getting any help because in the budget there is no increase to the guaranteed income supplement, no new money for the Canada pension plan, or old age security. There is nothing in it for them.

Instead, some seniors are facing property tax increases caused by unemployed workers who are unable to get employment insurance and have to go on welfare. Guess who picks up the welfare tab? Between 10% and 20% comes from municipalities which have to get it from their municipal property tax. Many of the seniors cannot afford it.

My question is for the seniors critic in the New Democratic Party. In his experience what is happening in Hamilton to seniors? What is happening to their lives because the budget does nothing for them?

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Madam Speaker, something very devastating is starting to happen across our country. The fastest-growing suicide rate in our country is that of 85-year-old males. That is because our country has let them down. This government has let them down, and it is very clear that it let down the workers of our country as well with the sellout around EI.

I am stymied and upset. Earlier, I was talking about my anger. I cannot for the life of me understand the Liberal Party. If the Liberals want to support this government, for goodness' sake, they should get something for it. They should get unemployment fixed. If they are going to support the Conservative government, they should at least get something for the workers of Canada.

[David Christopherson, NDP, Hamilton Centre, ON]

Madam Speaker, many may not know that my friend for Hamilton East—Stoney Creek is not only a former president of the Hamilton and District Labour Council, but the longest-serving president.

A lot of people make the argument that unions do not care much about the unemployed, because they do not pay dues. I ask the hon. member what we can expect from the Canadian labour movement in terms of standing up for these unemployed workers.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Madam Speaker, it is very simple. I was very proud when I was part of the Canadian labour movement because we battled Mike Harris in Ontario, and we are going to battle the Prime Minister. We are going to battle this government.

The labour movement is our partner, and it is going to be there leading right beside us.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Madam Speaker, I am honoured to rise in the House today to debate Bill C-10, Budget Implementation Act, 2009. Addressing the House is certainly an honour for me, but I cannot say I am happy do so on this bill. It is especially appalling that the Liberals have decided to support such a flawed bill.

This bill, which was supposed to represent a new beginning for this government, instead brings it back to its roots, its Reform Party roots. It is an incredibly political measure. It really does not meet the needs of Canadians and I simply cannot support it.

The Conservatives would have Canadians believe that the NDP opposes the idea of this government helping Canadians because we do not support this budget. Nothing could be further from the truth. I cannot imagine how the Conservatives themselves can belive what they are saying when they make such scandalous statements. No sensible person would oppose something that helps our citizens. What we do oppose, however, is the way this budget, which is supposed to stimulate the economy, deceitfully targets specific political objectives: attacking women, punishing the public service, deceiving Canada's aboriginal peoples, and ignoring the needs of small communities and those in the north.

It is important to remember during this discussion that we are talking about all kinds of public servants. It is not just number crunchers or pencil pushers. It includes the people who defend us. It is the RCMP officers who put themselves in harm's way time and again so that we can feel safe in our country. It is the men and women of our armed forces who are being asked to perform very dangerous missions, such as the one in Afghanistan.

We are being asked to vote for a document that says to these proud Canadians who are putting their lives on the line that they do not deserve to earn a decent living. I think that is a shame.

What I find particularly troublesome is that these same Conservatives who extended the mission in Afghanistan, made so much political hay out of those who did not want to support this course for Canada, and accused any and all who did not agree with them of not supporting the troops now turn around and do this to those same troops they say they support. That is pure ignorance. I cannot agree with that.

In the name of economic stimulus, this bill ends pilot projects for EI that extend benefits. That is just crazy. At a time when it is clear to all, except the Liberals and the Conservatives who support this budget, that employment insurance needs to be more responsive, more flexible and more accessible to Canadians, they are closing the doors instead of opening them.

The government will point out that it has extended benefits by five weeks, and that should be enough, because it does not want to make it too lucrative. What the government should really be doing is ensuring that more people are able to make claims. Sure, they should extend benefits; it is a measure that will help people. However, it is of no use if people cannot collect the benefits. It is window dressing.

This government's only concern is to be seen to be doing something. What it is actually doing is basically either nothing or, worse, exacerbating the situation.

The problems with employment insurance are well known. Among the worst is that it takes money from people who will never be able to collect from the fund when they find themselves out of work. It is, in many instances, a tax on having a job. Most people do not mind paying the premiums and see the value of a collective response to unemployment. It would be easier for many more to accept if they were actually able to access those same benefits should they find themselves out of work. On EI, the government is really missing the boat.

The finance minister received a prebudget submission from Ian Lee, the director of the MBA program at the Sprott School of Business, just down the road at Carleton University. That submission told the minister in very clear language that the best available bang for the buck in terms of government spending for stimulus was employment insurance. He showed that EI had the best multiplier, a term to describe the value of a dollar spent by the government. The multiplier for EI was $1.64. EI is the single best choice for economic stimulus, even better than infrastructure spending. Not only does EI have the best multiplier, but it also flows quickly and is not likely to find its way into a person's saving account. It goes to those communities in need and is spent in local businesses in a way that will stimulate the economy.

The government needs to see the light on EI. This budget shows no sign of that happening, and again I have to say I cannot support it.

In the name of economic stimulus, the government has shortchanged our aboriginal communities. It has provided some money for much-needed housing and schools, but it has not responded to calls from that community for an investment in education and social infrastructure or for a repayable loan fund to help with economic development.

For economic development, they were asking for 0.5% of the $200 billion that the government put into the credit system. The government did not deliver. It seemed like a reasonable request, given that the on-reserve population makes up 2% of our population, but the government ignored their needs.

The government does have some money for infrastructure in aboriginal communities. Housing and schools are important, and the construction of them will provide some good short-term jobs.

However, the lack of actual investment in education in these communities condemns today's school-age children to a subpar education, an education with a high school graduation rate far below graduation rates in other communities across our country, and a future in which they will be fighting the same battles that their parents are fighting today.

We simply have to do something about this, and we have to do it now. The Centre for the Study of Living Standards released a report in 2007 which stated that if the high school graduation rate of aboriginal people caught up with that of non-aboriginal people by the year 2017, it would mean an increase in the country's gross domestic product of $62 billion.

It is impossible for me to conceive of a reason for the government to do anything but work with these communities and address this need. The budget does not do anything toward that, and I cannot support it.

There is so much more we could speak about, more than I could cram into this speech. I could tell the House about the 82-year-old pensioner from Elliot Lake who contacted me, furious about the way the banks are being bailed out, but the investors are left with empty accounts and nothing else. This particular man is going to have to sell his house because of the losses he took on the investments. Countless others are worried as they watch their pension funds and RRSPs underperform.

What is the government's response to these seniors? The Prime Minister told them to pick up some quick bargains while the stock market crumbled.

Those seniors built this country. We owe them much more than that. They worked hard and honestly and assumed that their hard work would be rewarded with a comfortable retirement. They deserve better from us. The bill does not address their needs.

I could talk about my constituents who live in areas where the price of gas is incredibly high, even though the price per barrel of oil has dropped to levels we have not seen in years. I could talk about how this bill will make it even harder for students to get the loans they need to pay for their education. I could give an entire speech about the problems the forest industry is facing because of the government's inaction. I could talk about the 92-year-old woman in my riding who has to travel more than 60 kilometres to see a doctor. Many seniors have to drive six hours to see a family doctor in Toronto because there are no doctors in Elliot Lake.

It is these deficiencies that define the budget bill. It is the political attacks buried inside it that will be this bill's legacy. The government will wear that legacy, and those who support it, like the Liberals, will also be responsible.

[Claude Gravelle, NDP, Nickel Belt, ON]

Madam Speaker, I would like to congratulate the hon. member for Algoma—Manitoulin—Kapuskasing on having delivered a speech that was dedicated to her riding, a speech that revealed, or perhaps did not reveal the values of the Liberal Party of Canada.

I know that the member for Algoma—Manitoulin—Kapuskasing has a lot of first nations people in her riding. I would like her to tell me what this budget fails to do for the first nations people in her riding.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Madam Speaker, in my riding, as in other aboriginal communities, there is a lot of poverty and a lack of services. The Conservative government, like the Liberal governments that preceded it, has repeatedly failed to give aboriginal communities the support they deserve.

There is a significant shortage of funds, particularly for education. It is very difficult for them to find teachers who will agree to work for less money than they would earn working in a school that is not in an aboriginal community. It is disgusting that the Liberals and the Conservatives have allowed this kind of thing to go on.

[Glenn Thibeault, NDP, Sudbury, ON]

Madam Speaker, I would like to ask the member a question relating to her comments on the RCMP. This past weekend in Sudbury I had the honour to attend the tri-force gala ball. All police forces were attending, celebrating and raising funds for some great community programs.

We all know the great work that police forces do right across the country and especially in our community. I had several conversations with RCMP officers who were in attendance at this event. They were expressing their outrage at not being recognized for the work they are doing.

I would like the member to comment on how the RCMP and the police forces in her riding are feeling about these wage rollbacks.