Budget Implementation Act, 2009

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

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

March 4, 2009 Passed That the Bill be now read a third time and do pass.
March 4, 2009 Passed That this question be now put.
March 3, 2009 Passed That Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 394.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 383.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 358.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 317.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 445.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 295.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 6.
Feb. 12, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Feb. 12, 2009 Passed That this question be now put.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:20 p.m.
See context

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Mr. Speaker, I thank the member for Yukon for his question, which is twofold.

On whether the crisis is a lot more serious in Quebec than suggested by the government, my answer to him is yes. Quebec is going through a crisis in both the manufacturing and forestry sectors. The vast majority of Canada's manufacturing jobs are in Quebec and Ontario.

The crisis in the forestry sector in Quebec has not been going on for four or five months, but rather for three or four years. There are major problems in this sector. The government should have started taking action several years ago in putting in place concrete measures to help businesses.

We are extremely disappointed to see such inequity in this budget with regard to the level of assistance provided to the manufacturing and forestry sectors. We are talking about $170 million—as I mentioned in my speech—compared to 2.7 billion dollars for the auto industry in Ontario. I agree that it is a major industry, but the crisis has been going on much longer in Quebec. The impact of the crisis in our communities is much more significant than the help the government is offering to Quebec businesses.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:25 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, I am pleased to rise today to speak to Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures. The size of this bill speaks to its largely technical nature.

As its title suggests, the purpose of this bill is to implement the far-right policies of this new government which follows a conservative-liberal axis. This government has been led for three years now by we know who. A few months ago, however, a new player emerged from the shadows to lead the so-called Liberal Party, which really is liberal only by name. That political formation which used to promote social values at the economic and human levels is shifting toward the far right.

Let us start by going briefly over the past three years to see how we ended up where we are today. For the first time in a long time, the Conservatives took power in January 2006. This was a minority government, something they have always found hard to swallow and accept. The fact is that voters sent a clear message. They had had it with the party responsible for the sponsorship scandal, that is the Liberals. They wanted change, but did not trust the Conservatives quite enough, and they did not want to shift the country all the way to the right.

Instead of listening to this message and learning how to deal with the various forces at work, the government stuck to its dogmatic, ideological approach. The worst example of their lack of good budgetary and fiscal sense was the great leap in government expenditures. The Conservatives spent like never before in Canadian history. In their first three years in power, government expenditures increased by 25% or $40 billion a year, with no tangible results to show for it. They continually misled the public, particularly in regard to the cost of the war in Afghanistan. They promised to do certain things, for example hold public consultations on appointments to the Supreme Court, through its various organs. They ignored this promise. They always talked about democratizing the Senate but then took advantage of the holiday season to appoint 18 close friends of the Conservative government, until they reach the age of 75.

Even more shocking, after claiming that it was unfair for governments to have the sole power to set election dates, the Conservatives promised henceforth to have fixed-date elections. That was one of the self-congratulatory pieces of legislation they like to call their ethics package. That too was a lie, because they broke their promise, broke the law in question, and called an election in August 2008. The election only took place in October. Their fondest dream, of course, was finally to achieve a majority government, but they failed.

As soon as the election was called, the current Prime Minister said that if he should be returned with a minority government, he would accept the people’s judgment and learn to get along with the other parties in the House. In actual fact, the Conservatives took 37.5% of the votes in the election. This meant that the 62.5% of Canadians who voted for the more progressive voices—the ones on this side of the House—did not have any say in the government when it continued to act as if it had a majority.

The budget before us today, which Bill C-10 would implement, was passed on January 27, 2009, as indicated in the title. Exactly two months earlier on November 27, 2008, we were confronted with the dogmatic, ideology-driven Conservative reality. They attacked women’s rights, social rights, and the right of labour unions to bargain collectively and use the negotiating power of a strike, if need be. Finally, they attacked the clean party-funding system, which had been established in light of the greatest political scandal in Canadian history, the Liberal sponsorship scandal.

In one fell swoop, they attacked these three things on November 27, 2008. And people across Canada were outraged. Instead of correcting their past mistakes, they went on the attack, and they are still on the attack.

For two and a half years, during their first term in power, the Conservatives rigorously applied their ideology. For example, in the extreme-right Reagan-Thatcher doctrine, the government has no role in the economy. The role of the government must be reduced. As I mentioned earlier, no government in the history of Canada increased government spending as rapidly as the Conservatives, and that was no small feat.

In keeping with their theory that the government has no role to play in the economy, they stubbornly refused to understand a simple fact: Canadians, 30 million people, occupy the second-largest country in the world, after Russia. Since World War II, successive governments have all understood one thing: to occupy and develop this vast land takes a vision that can target certain economic activities in certain regions, to create a stable, balanced economy. On the other hand, those sorts of targeted interventions go against all their economic theories.

For two and a half years, their solution to our economic woes was wall-to-wall corporate tax cuts. The percentage was the same across the board, but that posed a small problem. Any company that had not turned a profit had not paid tax, so the Conservatives' tax cuts did not benefit the companies that needed them most. They made $40 billion in corporate tax cuts. But where did that money go? It went to the most profitable companies. And where, by chance, are those companies located? In the Prime Minister's home province, where most of the members close to him live. This is the province where, contrary to common sense and all the rules of sustainable development, companies are working the tar sands and completely ignoring our duty to consider future generations when making such decisions. The oil, gas and mining companies and the banks got the lion's share of these tax cuts.

I would like to talk about the forestry and manufacturing industries. Most manufacturing companies are located in central Canada, especially Quebec and Ontario. Vast segments of the forestry industry are located in British Columbia. These two industries in particular suffered because of the Conservatives' policies. In fact, during the two and a half years of the Conservatives' first mandate, Quebec lost 150,000 to 160,000 manufacturing jobs. Those are well-paying jobs with pensions.

When we talk about sustainable development, the first thing that comes to mind is the environment, but in fact, sustainable development means that we must not download our responsibilities onto the backs of future generations. When jobs with pensions are taken away, future generations are forced to find the money to pay the way for those people when they retire.

That is what was done when well paid jobs in the manufacturing and forestry sectors were replaced by jobs in the service sector. I do not wish to take anything away from people who earn a living selling clothes at a shopping mall located where a factory once was. But such people work for $12 an hour with no pension, while the other workers earned $30 an hour. They could meet their families' needs, while compulsory deductions were put aside for their retirement.

That is the Conservatives' strategy. They did it deliberately, by applying a right wing theory inspired by Reagan and Thatcher policies, and of course the catastrophic eight years of George W. Bush's administration. That is their model, their inspiration.

After the October 14 election, one might have expected to see a change, but that did not happen; actually, things got worse. On November 27, we saw a full scale attack on the rights of women, unions and the other political parties. People reacted immediately and intensely, both among the public and in the House. However, there was no underestimating the ability of the current Prime Minister to spread hate and divide Canadians through his choice of terminology. When referring to the former leader of the opposition, he talked about “separatists”. He knew what he was doing. He does not have the right to attack people for their language or ethnic origin, but that is precisely what he did by using that term, which he never had the nerve to say in French. In fact, “separatists” in English became “souverainistes” in French, a much softer term. He never had the nerve or the integrity to use the same term in both languages. That revealed a great deal about his character.

Just mention it to francophone colleagues from northern Ontario or Acadia. Following the attacks by the Prime Minister against the so-called separatists, they heard attacks against French Canadians and francophones outside Quebec that had not been heard for a generation. Such was the force unleashed by this sneaky, below-the-belt attack. This does not seem to bother the Prime Minister in the least. He only cares about himself. He does not care if he causes chaos or pits Canadians against one another.

Today, we have before us the implementation bill for the Conservative budget. This budget implementation bill is entirely in keeping with what we saw on November 27. It includes some of the most pernicious aspects of the deplorable document that was supposed to be the November economic update but which proved to be a new ideological attack by the Canadian right in the guise of a budget document.

One of the most reprehensible components is the attack on women's right to equal pay for work of equal value. Many confuse the right of women to earn equal pay for equal work and what I just said, that is the right to earn equal pay for work of equal value. According to the first principle, if we take the job category of truck driver, the man or the woman who drives that truck will be paid exactly the same. That was settled generations ago and people have a good understanding of that principle. The far greater challenge is eliminating the discrimination inherent between employment groups. It is readily understood just by looking at the public service in Ottawa. Historically, when the same requirements are examined, such as the difficulty of the task, the level of education required and other objective factors, employment groups with men in the majority are better paid than employment groups where there is a concentration of women. This has been definitively proven.

Our human rights legislation has always recognized the right of a woman to go to court, represented by others if need be, to obtain equal pay for work of equal value. On November 27, in the objectionable document I just referred to, the so-called economic update that really was not that at all, but rather an ideological attack, the Conservatives took away that right from women. This is exactly what the Conservatives want to do again today. It is written in black and white in Bill C-10. And what makes it even worse is the fact that a party that calls itself Liberal will vote with the Conservatives to take away the right of Canadian women to equal pay for work of equal value.

As if this were not enough—still speaking about sustainable development and our obligation to consider future generations every time we make a decision in this House—the bill creates a new power, under the Navigable Waters Protection Act, that will have an impact on the bed of any navigable or floatable waterway. Again, this will be done behind closed doors, through regulations, without any public debate. The government will remove the obligation to have environmental assessments for projects worth less than $10 million.

Here, the Conservatives are sending the same message as when they take away the right of women to equal pay for work of equal value: it is a luxury that we simply cannot afford in these times of economic crisis. The message is the same with regard to the environment: environmental protection is a luxury that we simply cannot afford in these very tough economic times. That is hogwash. Shame on those who are suggesting that.

Tying the need for an environmental assessments to the value of the project show just how ignorant the government is when it comes to the environment. The mayor of a town who has been dreaming for years of filling in a precious wetland will now be free to do so as long as his project costs less than $10 million. It is so ludicrous it defies belief, but that is what is happening. This is all driven by ideology, certainly not common sense or knowledge. It is obviously not the cost of what is going to be put on a wetland that should be considered but the ecological value of the environment that is going to be destroyed.

We should seize the opportunity provided by the very real economic crisis we are facing to build things that will last and are sustainable, especially those related to green, renewable energy, so that future generations can be paid back. All we are bequeathing them now is the enormous debt we are going to run up. We are also going to bestow a second kind of debt on them. Not only will future generations have to pay back all the money we are spending now in excess of our revenues, but even more despicably, they are going to inherit an ecological debt and deficit that can never be offset.

They are going to destroy our precious wetlands and the quality of our air, and the health of our children will begin to suffer the effects. All this damage will happen because we are destroying the environmental protections that, in the long term, preserve our ecosystems and human health. Once all this damage has been done, thanks to the support of the Liberals, the Conservatives will have achieved what they always dreamed of: attacking the rights of women and attacking environmental protection, always in support of their right-wing ideology.

I really should mention the most important of our immediate needs: employment insurance. The government still has $54 billion that it stole and put in its general revenues, even though this money was paid by working people and their employers precisely for times like these. Instead of abolishing the two-week penalty applied to people who are eligible for employment insurance, the Conservatives are going to retain it, with the help of the Liberals. Instead of extending employment insurance, they are going to keep the same rules.

For all these reasons, we in the New Democratic Party are going to stand up against the narrow, hard-right vision of the Conservatives.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:45 p.m.
See context

Macleod Alberta

Conservative

Ted Menzies ConservativeParliamentary Secretary to the Minister of Finance

Mr. Speaker, my hon. colleague sits on the finance committee with me and we are certainly hoping that he will delay it much less when we actually get the bill to committee than he is trying to here today.

It is obvious that by many of the inaccurate statements he made in his speech that he has either not read the budget or does not understand it. I would encourage him to come to the briefing this evening, where we will be briefed on all of the details in the budget implementation act. He will then be able to debate with some knowledge what these changes do.

I would refer to his comments wherein he said that this is an extreme budget that no progressive politician would support. I would ask him to listen to his NDP colleague, the finance minister from Manitoba, Greg Selinger, who said:

--this budget clearly has a number of initiatives in there that we had supported from the get-go...there's no question that this budget has put resources on the table that will help stimulate the economy across the country.

Why then is the NDP voting against all of those measures?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:45 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, I would like to remind my learned colleague that imputing undue motives is not permitted. We are doing our work. The 20 minutes I was given in order to speak was anything but a delaying tactic.

Contrary to what my hon. colleague has just implied, despite the fact that there is a clear rule against attributing undue motives to one's adversary, he has just said that the 20 minutes I took that was accorded to speak about this important bill was a delaying tactic.

I will simply ask him the following question. If our 20 minutes spent talking about this is an indication of our profound feelings about it, what is the fact that he did not even stand up and pronounce a speech on this? He is the Parliamentary Secretary to the Minister of Finance. He did not even have the intelligence and the wherewithal to put together a speech and deliver it in the House. Shame on him.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:45 p.m.
See context

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I came in midway through the debate, so my colleague may have addressed this earlier in his comments. I have just been reading through some of the media reports as to where the NDP would like to go with this budget. Obviously, each aspect of the budget would have various costs associated with those aspects. We know there will be a deficit going forward the next number of years. Could he share with the House if the NDP has costed out the exact counts on the proposals and measures that the NDP are putting forward?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:45 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

Yes, Mr. Speaker, we will be doing that in due course, especially for employment insurance.

However, I would like to ask my colleague from the Liberal Party to give reflection to the following. How can he, as someone who represents himself to his electorate as being a Liberal, vote in favour of a budget and a budget implementation bill that, word for word, removes from women in Canada the right, that is guaranteed right now under law, to go before tribunals to have a right to equal pay for work of equal value? How can he possibly support that?

How can he support a bill that will take away environment assessments in all cases under $10 million of infrastructure when it is not the value of the infrastructure we have to look at, it is the value of ecosystem being affected? Is it just possible that the Liberal Party of Canada knows how to talk the talk on environment and women's rights, but when the time comes, it does not know how to walk the walk?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:50 p.m.
See context

Bloc

Yves Lessard Bloc Chambly—Borduas, QC

Mr. Speaker, I would first like to congratulate my colleague from Outremont for the relevance of his remarks. We should think about and share his analysis, even more so because most of his points were also put forward by our Liberal colleagues. They often used harsher words to describe the Conservative budget than we did. I remember the comments from the member for Notre-Dame-de-Grâce—Lachine. She said that it was a shameful budget. She said that, yet the Liberals voted for this budget.

Our colleague said that it was a very conservative budget. He touched on three fundamental subjects that would lead us to think that the Liberals are now in agreement with the Conservative philosophy. There is the issue of accessibility to employment insurance, when contributions are being frozen at their lowest rate; the issue of the environment, when they campaigned on a green plan; and the issue of women, with women being denied the opportunity to obtain pay equity. Today, a woman receives only 76% of a man's income.

Does the member agree that the Liberal attitude discredits parliamentarians with respect to the political action that is taking place here?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:50 p.m.
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NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, my hon. colleague raised a very interesting point. Indeed, poll after poll has shown that public trust in politicians is dwindling. People see politicians as saying one thing to get elected, then doing another once in this House. That cannot be said of the Conservatives, who have always been far-right doctrinaires and are now enforcing their ideology.

They needed to make an ally of one of three opposition parties. They found one in the Liberal Party of Canada. It is really shocking that the very people who spoke in favour of women's rights in November are now voting against women's rights. That is what the Liberals are doing. A party that ran on an environmental platform is now reneging on all environmental commitments. A party that claims to be close to the people and prepared to support their needs in these very difficult times to ensure that they get EI is letting everyone down.

Here is what we have to learn from that. Just like during the 13 years where they talked about the environment but never did anything about it—they had the world's worst track record on Kyoto, for instance—these days the Liberals are showing us ahead of time that Liberals should never be trusted.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:50 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I want to thank the member for Outremont for his very important speech. This weighty document has any number of details embedded in it all the way through. He touched on the piece about equal pay for work of equal value, and I appreciated his comments on that.

There are other important aspects of this document that require some rigorous examination. We know that there are changes to information that students have to supply under the Canada Student Loans Act. We know that the changes to employment equity are embedded in this budget implementation bill.

However, I want to touch specifically on employment insurance. In my riding, we have had forestry workers who have been in and out of work for the past two years. Unfortunately, our unemployment rate in Nanaimo—Cowichan is tied to the Vancouver labour market. Anybody who knows western Canada knows that the Vancouver labour market is completely different than that of Vancouver Island.

I wonder of the member could comment on the fact that there were no meaningful measures in this budget implementation bill to look at eligibility requirements for workers who have been displaced.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:55 p.m.
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NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, I will sum it up in one word: lucrative. That is the word that the minister responsible for employment insurance used to describe employment insurance benefits, despite the fact that 60% of Canadians who work are not eligible for those benefits. That tightening of the rules gave rise to the $54 billion surplus, in particular, and the fact that we were going through good economic times.

Now that there is a downturn, we have to take care of people and come up with rules that work coast to coast. There are provinces, and B.C. is an example, where if one has a truck, and that truck is the only way of getting to a job, and that person runs out of employment insurance, the truck will have to be sold before welfare can be obtained. That is the kind of grave economic crisis that short-sighted and narrow-minded people, like the Conservative-Liberal axis, are imposing on Canadians, and that is why it is a good thing that the NDP is here to stand up for everyone.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 12:55 p.m.
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Liberal

Bryon Wilfert Liberal Richmond Hill, ON

Mr. Speaker, I will be splitting my time with the member for Vancouver Quadra.

It is amazing how a few months have really changed the economic direction of our country. It was not very long ago, just before the election, that the Minister of Finance was bragging about four balanced budgets to occur over the next four years and that things were not too bad all. The Prime Minister, in September, said, as an economist, that if bad times were to come, they would have already been here.

Now we are in a situation where we have a very dire situation across the country. People are worried about their mortgages, their pensions, their jobs and the future for their children. It did not have to be this way.

As a former parliamentary secretary to two ministers of finance, during those very difficult days in dealing with a deficit, it was one in which we had to make some very difficult choices. In 1993, 33¢ of every dollar was borrowed money. We were transferring money that we did not actually have because 33¢ was borrowed at the time.

Through the support of Canadians, we were able to get to a point where we started to pay down the national debt. Now, unfortunately, because of the current situation, 85% of that debt payment will be lost due to the inaction and mismanagement of the finances of the nation by the present government. In fact, over a quarter million people are out of work over the last few months due to these job losses because of the direction the government has taken.

One of the concerns I have is on infrastructure. As a former president of the Federation of Canadian Municipalities, there is nothing more important than dealing with the infrastructure in Canada. The government announced the $8.8 billion fund, the building Canada fund, to deal with infrastructure.

I will give the government an A+ on announcements. I will give it an F when it comes to delivering. The only project the government has announced is a complex in of Regina.

Over the last number of months, the FCM has asked the government for a list of specific projects. Where has all the money the government has announced gone? In terms of projects, municipal governments need to move their five to ten year capital forecasts forward. I know many members in the House would have brought to the attention of the government projects. I wrote both the Minister of Transport and the Minister of Finance in December on six key projects in Richmond Hill, which the Richmond Hill Council wanted to move forward. I have received no response to the present time. Again, however, there have been a lot of announcements.

One of the things that surprised me, and this came out last week, was that 78% of infrastructure projects the government had talked about would go to ridings held by the governing party. I do not remember the governing party acquiring 78% of the vote at any time. It was very interesting that non-conservative ridings were getting announcements suddenly for projects.

The government criticized the opposition for saying that it had not seen any projects, then suddenly, it said it was going to announce these projects. Again, over three-quarters those projects would go the ridings held by the government.

The Liberal Party announced that it would propose a budget implementation amendment, which was passed and which dealt with accountability. One thing we need when we deal with public finance is accountability. It is important, when we are dealing with an infrastructure deficit of over $120 billion, that we know the projects will be delivered in a timely fashion, that during a very short construction period, municipal governments can get those contracts awarded, through a very public process, and that the monies will be sent out.

Liberal governments in the past were very good at dealing with national infrastructure projects, and I can say that from experience. In 1994 to 1997, when we had a third, a third, a third, from municipal, provincial and federal governments, those projects got out there. They were designed not only to put people to work, but to improve the economic situation in Canada and the ability to move goods and services across the country, et cetera.

We have proposed, and our leader made it very clear, that we will hold the government accountable. Some in the House suggested that this was not very much. I would suggest that holding the government accountable for every dollar is, in fact, a great deal. It is extremely important that we understand where the money goes.

The Federation of Canadian Municipalities and the mayors and councillors across Canada would like to see this money out there, and not just go to those ridings that are held by the government. Clearly we need to deal with infrastructure issues across the country need. They need to be dealt with in terms of roads and sewers. They need to be dealt with for green infrastructure, whether it be water treatment plants, sewage treatment plants, culture amenities, recreational centres, bicycle paths and other things. Cities and communities are the economic engine of the country.

If we have a strong municipal centre, we will be able to compete both nationally and around the world, which is extremely important.

As I said, Richmond Hill identified a number of projects. I hope both the Minister of Transport, Infrastructure and Communities and the Minister of Finance will get back very quickly because clearly people want to know the status of those projects.

It is very interesting that we have this stimulus. The government has often talked about a short-term deficit, the last one lasted over 24 years, and it is not easy to deal with a deficit. Yes, we hear about a worldwide economic slowdown, but much of what has happened in our country is the result of the mismanagement of the government. During the election we heard what excellent money managers the Conservatives were. I guess that is before they decided to come clean with the books. As a parliamentary secretary to the finance minister, I know when they got those numbers. They had the numbers and they knew how bad things were during the election, but when the Liberal Party put forth a five point program to deal with the economy, we were told that we were saying the sky was falling, that we were being alarmists. After the election, the truth came out.

It will be very important to see that these what are called shovel ready projects are transparent. It is important that we deal with issues like EI. The government could have easily dealt with shortening the EI waiting period, eliminating the two week period. People who are unemployed need the money now. They cannot wait. Suggesting that we add five weeks on to the end is not really of much help. People want to get it right away. Again, that could have been done very quickly by the government.

We have set very clear benchmarks for the government, including March 26, June 23 and so on, to look at where the monies have been spent. It is important, though, that we do not throw good money after bad. We need real strategies. We need to look at strategies in the auto sector. We need to ensure that we simply do not turn money over so that in three months people will come back and look for more. We have a very important sectors in our country, in auto, forestry and manufacturing. We cannot simply put Band-Aids on them. We have to ensure that we deal with the long-term issues for Canada.

We also have to ensure that we do not see protectionist walls go up so we are unable to trade or compete internationally. There is an important meeting of the G20 occurring in London, England at the beginning of April. The former minister of finance and former Prime Minister Martin was instrumental in the establishment of the G20. The G20 is an important vehicle to ensure that we deal with those issues where trade barriers may go up.

We have read and been very concerned about protectionist legislation in the United States. There is a tendency often to circle the wagons and to simply say that we will deal with our own situation. We have to be competitive internationally. We have to get our goods and services out there. We have to hope as well that the current situation in the United States is such that when American consumers start to buy that they will buy not only American goods but Canadian goods.

There is a need for strategy to broaden our trade links, not to put all our eggs in one basket with 80% of our trade with the United States. This is something co-operatively that all the political parties in the House can work toward.

It is about accountability, it is about ensuring that good paying jobs are created and that there is a strategy. One of the areas I would like to see members talk more about is on the innovative strategy, getting ahead of the curve in terms of some of the ways we can move forward. RIM is a good example in Canada, a great Canadian invention which is now seen around the world. That is the kind of thing we have to continue to promote.

I look forward to any questions.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 1:05 p.m.
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NDP

Bruce Hyer NDP Thunder Bay—Superior North, ON

Mr. Speaker, I have a comment and then a question for the hon. member for Richmond Hill.

He has done a rather eloquent job of describing some of the deficiencies in the budget, and I will build on that. How does he feel about the fact that there is money for subsidizing nuclear and oil, but nothing for renewable energy sources, or passenger rail across Canada to bring it back to its glory days when it is so fuel efficient and needed, especially by poorer Canadians and the disappearing middle-class? He has identified deficiencies in forestry, infrastructure and I think he mentioned health care. The list goes on.

Why did the member for Richmond Hill vote for the budget? Will he vote for Bill C-10 to implement these inadequate budgetary measures?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 1:05 p.m.
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Liberal

Bryon Wilfert Liberal Richmond Hill, ON

Mr. Speaker, first, facing a $300 million election, which we would have triggered in January, probably would not have been the smartest economic course. Perfection is, unfortunately, not one of the byproducts of Parliament, but we have to build on deficiencies. The budget is deficient, and the member pointed out some aspects dealing particularly with green energy issues.

As former parliamentary secretary to the minister of the environment, we had the most aggressive plan of the G8 in 2005. We had the greenest budget in history, $10 billion in 2005, not that the party across the way paid any attention. Do not forget the party across the way does not know there is a climate change issue. There are climate change deniers over there. There are probably some flat earth members over there as well. They think the world is still flat.

We also know the Conservatives do not believe in infrastructure because they sat on it for 10 years when they were government. The point is we will continue to work on those issues through the environment committee and others to ensure we get greener energy in our country. We will get people off oil and move toward some of the renewable energy sources that Canadians desperately need.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 1:05 p.m.
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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I commend my colleague for his words. One thing we know is if the government had taken just one idea from the Liberal platform, it would have been stealing, but we would never accuse it of that because it lifted several. Therefore, I will refer to it as market research.

There is one in particular that comes to mind, and that is the one on assistance for recreational facilities. It was one that was very clear in the Liberal Party's past platform and one that the member did quite a bit to develop. There are a great number of facilities in rural communities that can use some assistance from the federal level. Usually recreational facilities are more in the realm of provincial and municipal responsibility.

It is more a comment than a question, but would my colleague like to comment on the significance of this aspect of the budget, that being support for arenas and swimming pools, and what impact this will have in communities?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 1:05 p.m.
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Liberal

Bryon Wilfert Liberal Richmond Hill, ON

Mr. Speaker, as a former president of the Canadian Parks and Recreation Association, I acknowledge and welcome the comments of my colleague, who was very active in the recreational field.

The quality of life issues is where recreational is dealt with, such as arenas and swimming pools. That enhances a community. There is no question that this party has worked very hard to ensure that type of component is in the budget because it is important to the recreational community across Canada to deal with those issues.

When someone works in or is looking to live in a community, they often look at those quality of life issues. Those kinds of recreational amenities are not only important but, in many cases, they also provide significant revenue. When we talk about convention centres, recreational facilities or community centres, that is very important, particularly when dealing with such things as sports fields, et cetera. I welcome this aspect when we deal with that part of the budget.