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 / 4:35 p.m.
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Liberal

Bob Rae Liberal Toronto Centre, ON

No, no. It is too late. It is all down in print.

It is very difficult for me to say that there has been no change from the statement made by the Minister of Finance in November and the budget that has been presented. Is it perfect? No, it is not perfect. It is not a perfect document but it is a basis for discussion, which is really what we are doing. We are sending this to committee. The committee will have an opportunity to discuss it.

In the few minutes that are left to me I want to raise the issues that I want to discuss. I am very concerned by the cuts in science, research and higher education. I wrote a report for Premier McGuinty on the importance of that sector and I am disturbed that the Government of Canada has not moved in the right direction.

I believe there is a fundamental question about employment insurance. It is a tax. People pay the tax. The minister said today that the 20% of people who pay the tax will not qualify for employment insurance under any scenario. I want to find out more about who those people are and why she thinks that is equitable and fair.

I want to deal with the question of pay equity because I want to listen very carefully to what my friends in the New Democratic Party are saying. I want them to have a look again at the legislation to see whether there is not a way of resolving what I do not believe is a vast ideological chasm between the legislation and what we all think needs to happen.

I am concerned about what has happened to some provinces and in particular about the treatment of provinces that feel the changes that have been made in transfers have been made in a way that is not fair. I am very concerned about the question of the affordability of infrastructure. The government needs to have a practical look at the actual debt level of many of the cities, municipalities and provinces across the country to understand what impact it is going to have on the take-up rate. Is there not a better way to get those transfers to the municipalities? It seems to me that is a critical question.

I want to close on the question of pensions. If there is any public policy area that I do not believe the House has discussed in sufficient detail or with sufficient knowledge, it is the question of pensions. We face a tremendous challenge in the private sector. We face not just the people whose pension funds are underfunded as a result of what has happened, we also face the fact that there are literally millions and millions of employees who do not qualify for pensions and who do not have pensions. We have relied on CPP and RRSPs. There are a great many Canadians, in the millions, who do not have any RRSP money and are going to be left in great difficulty in retirement.

Those are questions and issues that I think need to be dealt with in the budget. Should the budget be defeated at this stage? I do not believe that it should and I hope that my reflections will give the House a chance to move this bill into committee and have it discussed in greater detail.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:35 p.m.
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Jonquière—Alma Québec

Conservative

Jean-Pierre Blackburn ConservativeMinister of National Revenue and Minister of State (Agriculture)

Madam Speaker, I want to follow up on the comments of the hon. member for Toronto Centre, who said that there were considerable changes between the economic statement and our budget. If there had not been any changes, it would have shown we were out of touch with reality. In just a few months, the global recession has had a very negative effect on our country. The budget had to take these extremely important events into account.

We started with a budget running a surplus of nearly $1 billion only to quickly find out it was all melting away. The expected deficit was now nearly $1 billion. When a government starts with a budget forecasting such a surplus and ends with an expected deficit of $34 billion for the next year, something major has happened.

Our government believes it is important to support Canada’s economy at a time when the private sector is reducing its investments. We are an exporting country. Our businesses are seeing people buy less of what they produce. They are forced to cut production and even let employees go. It is important, therefore, for our government to offset this decline in the private sector through massive investments in infrastructure. We are going to invest $12 billion in it over two years.

We have also provided support for the automobile industry, just as we are helping the forestry sector by providing a tax credit for people who renovate their homes. When people renovate their homes, economic activity increases and this helps companies in the manufacturing and forestry sectors that produce all kinds of products used in renovations. We are also encouraging people to buy their first home by providing another tax credit. There is an array of measures here similar to those on the employment insurance side.

The hon. member for Toronto Centre and his party felt that this was a good approach to take. A budget is never perfect, of course. We cannot do everything, but a least the hon. member has recognized the efforts we are making to try to support Canada’s economy, our employers, our working people and the disadvantaged.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:40 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

I would like to give the hon. member for Toronto Centre a chance to respond to these comments, if he so desires.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:40 p.m.
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Liberal

Bob Rae Liberal Toronto Centre, ON

Madam Speaker, you are right in saying that it was more of a comment than a question.

All I can say is—and this is my personal opinion—that you continue to underestimate the impact this global recession is having on Canada. The numbers that you have presented, given the—

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:40 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

I would ask the member to address his comments to the chair.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:40 p.m.
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Liberal

Bob Rae Liberal Toronto Centre, ON

I am sorry, Madam Speaker.

I would like to say to the minister that the government is continually underestimating the problem. That could be the reason we keep saying that the proposed measures may not be enough to deal with the problems.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:40 p.m.
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Bloc

Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC

Madam Speaker, I listened with great interest to the speech by the member for Toronto Centre. I was wondering exactly how he would try to win us over.

He says that he has serious issues with the budget, and I would like to hear him talk about these issues in detail, given that he agreed from day one to support this government, which, a couple of weeks ago, was in complete denial of reality and is still in denial today. In particular, there are no measures to help the unemployed who have lost their jobs, are losing them today or are at risk of losing them.

I would like the member for Toronto Centre to enlighten us as to the serious issues he has with the budget. And how can these issues not be serious enough to keep him from supporting the budget?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:40 p.m.
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Liberal

Bob Rae Liberal Toronto Centre, ON

Madam Speaker, I am not trying to win anyone over here. I have lived through three recessions and I saw what happened in a recession. I simply want to share my experience and give the House a few things to think about.

Frankly, I am not satisfied with the measures proposed by the government, but I cannot say, as the hon. member just did, that there is absolutely nothing in this budget to help unemployed workers, as that is not the case. One cannot say things that are simply not true. We must say what is true. We can say that the measures are insufficient, that they can be improved and that amendments can be made.

Based on my experience, if the government is open, the committee stage allows the opportunity to make amendments that can meet people's needs and address their problems.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:45 p.m.
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NDP

Olivia Chow NDP Trinity—Spadina, ON

Madam Speaker, why is the member afraid to make amendments to this budget bill?

It would allow maybe another unemployed person in Toronto Centre to receive employment insurance. Right now not one additional person will be eligible because of the clauses in this bill.

Why would the member not move an amendment to exempt municipalities such as Toronto from matching the funds on infrastructure? Toronto has already put in $1.6 billion and cannot match any more funds, so it cannot really access the infrastructure funds that are in the budget. Why would the member not move that amendment?

Why would the member not move an amendment to cancel the cuts to science and green technology?

Regarding clause 399 of the bill which amends the Canadian Human Rights Act with respect to pay equity complaints, why would the member not delete that clause right now?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:45 p.m.
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Liberal

Bob Rae Liberal Toronto Centre, ON

Madam Speaker, I hope I have some time to respond at least to one of the issues, and that is the pay equity issue which was raised by my friend from Hamilton East—Stoney Creek as well as by my friend from Winnipeg North.

I would ask them to have a look at the legislation, because the member for Winnipeg North said that it got rid of the notion of equal pay for work of equal value, but in clause 394, the preamble states:

Whereas Parliament affirms that women in the public sector of Canada should receive equal pay for work of equal value.

That is what it says. It is right there in the bill.

I am not convinced it is altogether the right thing, but the government has made the obligation to live up to the principles of the act a proactive obligation of the employer to make it a provision of collective bargaining and build it into the collective bargaining process, and make the Public Service Staff Relations Board responsible for the legislation, and not make it a long legal process that takes 10 to 15 years and goes to the Canadian Human Rights Commission. It is giving the Public Service Labour Relations Board the power and the authority to deal with the question. I am not saying this is perfect. I am happy to listen to the criticisms and the concerns.

My colleague from Hamilton East—Stoney Creek put the pressure on me and pointed out all the great things that our government did between 1990 and 1995. Ontario had the most progressive pay equity legislation in the world in those years, but we also insisted that it was the Pay Equity Commission that should take responsibility for supervising and overseeing the conduct of collective bargaining and the approach and the improvements that were made.

We cannot say that the old system was perfect because the old system federally has put a tremendous obligation on individuals and on unions to take complaints to the Human Rights Commission that have nothing to do with the collective bargaining process and that delays things for a very long period of time.

I would say to my colleagues in the New Democratic Party that I have not changed my ground at all. I believe that Parliament should be committed unequivocally to equal pay for work of equal value. Let us just see if we can improve this legislation to make sure that we take account of all the provincial experiences that have taken place, that we take account of everyone's experience and see if it cannot be improved.

I can assure the member for Trinity—Spadina, who is my neighbour, that we will be looking very carefully at the provisions she has mentioned to see whether or not there are improvements that can be made. That is why we are there.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:45 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Madam Speaker, I am very pleased to address the House, technically a second time on the budget, since we are debating the implementation bill.

First of all, I would like to say that I will be sharing my time with the hon. member for Terrebonne—Blainville. I therefore have only 10 minutes to convince the Liberals, and perhaps a few Conservatives from Quebec, that the budget is less than perfect.

It is clear—and it always has been—in Conservative philosophy that taxes must be lowered and spending must be cut—often essential spending—and after that, everything will be fine. That is the game and that has been the Conservative way since the dawn of time.

However, when a Conservative government—especially this one—faces an economic crisis, it no longer has any idea what to do. The Conservatives completely lacked vision. They were unable to predict this economic crisis and they failed to implement the necessary strategies at the right time. Of course this means assistance to manufacturers, to the softwood lumber sector, to older workers who lose their jobs and to all unemployed workers.

So, in an economic crisis, action is essential. Policies to be implemented must be effective the next day. There was a certain casualness preventing those who were penalized yesterday from benefiting right away. No time must be wasted in stimulating the economy. There is clearly an infrastructure program, but it has been talked about for years and was not implemented as thoroughly as it should have been. So, who is ready tomorrow to break out the whole arsenal of equipment in order to start work on infrastructure? Plans and specifications have to be drawn up, submissions made. That slows things down. Even if the municipalities were prepared to speed up their investment, would labour be available? This is something that was needed, but the timing needs work. To jump start the economy, this might not have been the first priority.

You know that after the October 14 election—what I would call a huge consultation—the Conservatives decided to present a throne speech and an economic statement, which nearly bowled the opposition over. The Prime Minister knowingly confronted the opposition, and what had to happen, happened. Afraid of losing power, naturally, he sought to have the House prorogued. That led to more months of waiting and inaction.

The Prime Minister returned with his budget, but it remains clearly a Conservative budget. It has a slightly red cast, because the wicked wolf had his eye on Little Red Riding Hood. And Little Red Riding Hood decided that, since it was a reddish budget, it was acceptable, even though, since then, the Liberals have been speaking against most of the measures.

We heard a speaker from the Liberal Party say there were some fairly positive things regarding employment insurance. It cannot be said that there is nothing. The Liberals are leaving themselves some manoeuvring room in order to support the budget.

Let us take a closer look at employment insurance. Perhaps 90% or 99% of the elements are missing from this reform or from the investments in employment insurance, but they find one point of interest and latch onto that.

In short, there was nothing in terms of employment insurance to help people who lose their jobs and who need it immediately. In addition to meeting an everyday need, it also provides a minimal stimulus. Given the number of jobs lost since the Conservatives arrived—over 80,000 in Quebec alone—it might have had a significant impact.

There are some major oversights in this budget, such as the environment. Many organizations have complained that the budget included next to nothing to bring about improvements with respect to greenhouse gases. Even the ecoAuto program was not renewed. Under sustainable development, not-for-profit economic organizations were abandoned. Under culture, the government did nothing more for artists. Under education, which we know is so important, transfers were not increased even though education has such a major influence, if not in the short, then certainly in the medium term.

The budget also ignored the guaranteed income supplement for the poorest seniors despite these tough economic times. There is no plan for older workers, most of whom cannot retrain. The manufacturing and forestry industries were also left out. Other oversights include struggling businesses, women and women's groups, international aid recipients, and social housing for families.

There is also some serious encroachment, beginning with the federal government's intention to interfere with Quebec's jurisdiction over securities. The budget also proposes going over the Government of Quebec's head and making direct loans to municipalities. Under education, the government is putting up $50 million over two years for its foreign credential recognition initiative.

I want to spend a little more time talking about some issues, such as employment insurance. As the Liberal member just said, employment insurance benefits have been extended by five weeks. Another relatively dangerous proposal, in my opinion, is rate setting. In its Canada Employment Insurance Financing Board Act, the government gave the board the authority to set rates. Now, however, the government is doing this itself, which rules out adding anything to employment insurance to help people who lose their jobs.

The Bloc Québécois made some brilliant suggestions, and so have others. We suggested the waiting period, reducing the number of hours required to 360, and certain eligibility criteria because, in many cases, people are not even entitled to benefits. Adding five weeks will not help people in the short term. We also wanted the government to increase the rate from 55% to 60%.

What about seniors? Did the Conservatives bother to include them in their October 14 consultation? I will quickly read a press release about the federal budget issued by the president of the Sherbrooke AQDR:

“The president of the Sherbrooke AQDR, Association québécoise de défense des droits des personnes retraitées et préretraitées, Ms. Thérèse St-Cyr, believes that the federal budget ignores seniors. In fact, the throne speech refers once to seniors when indicating that the budget will take into account the needs of the most vulnerable. The budget refers to seniors three times. The first time is in relation to tax relief which, according to our calculations, will total between $100 and $300 per year per person, depending on income. Seniors are referred to a second time in connection with social housing. We estimate that 75 social housing units for seniors will be renewed in the next two years in the Eastern Townships. This is quite inadequate given that the needs are far greater. Finally, the budget refers to older workers affected by plant closures and job losses. Amounts will be allocated for training. These are good intentions but will not provide income. In light of this information, we declare that the federal budget ignores seniors.”

With regard to social housing, if Sherbrooke's seniors are only entitled to 75 social housing units, just imagine what they will get from the rest of the budget . Even though the government has allocated money for housing, it is seriously inadequate. It means that there is no social housing for others in the Eastern Townships.

Therefore, the government has abandoned the most vulnerable, the most disadvantaged. It would have helped a great deal if—

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:55 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

We shall now proceed to questions and comments.

The hon. member for Saskatoon—Wanuskewin.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 4:55 p.m.
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Conservative

Maurice Vellacott Conservative Saskatoon—Wanuskewin, SK

Madam Speaker, my hon. colleague is a thoughtful man and he used a very quaint and interesting analogy about Little Red Riding Hood and the wolf. He also included himself as the wolf, waiting at the door to pounce. I would be interested to know who else does the hon. member include when he compares his party, and I assume himself, as the wolf ready at the door to pounce? Is the NDP included? Are the Liberals included as well in that imagery of the wolf ready to pounce at the door?

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 5 p.m.
See context

Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, once upon a time there was an old grandmother who was devoured by a wolf. For his next meal, the wolf had his eye on Little Red Riding Hood. The member sees that wolf almost every morning when he shaves. The Conservative ideology truly makes me think of that and the story of Little Red Riding Hood. As for Little Red Riding Hood, the member even agreed that the Liberal Party felt overwhelmed and did not want to go into an election and therefore agreed to let the wolf have his way. Those who remember the story know that someone eventually came to rescue the poor grandmother.

We in turn would like to rescue the Quebec economy. We feel that the measures proposed by the Conservative government are inadequate. The government thought it saw the light at the end of the tunnel, but it turned out to be the oncoming train that broadsided it. The economy is not recovering; rather, it is continuing to decline.

Budget Implementation Act, 2009Government Orders

February 9th, 2009 / 5 p.m.
See context

Liberal

Frank Valeriote Liberal Guelph, ON

Mr. Speaker, when I was elected on October 14, at that point in time I already had no confidence in the Prime Minister, but I came to this Parliament nevertheless to try to make it work. I did not consider at all taking every opportunity to use it as a vote of non-confidence.

On November 27, when the Conservatives presented that fateful budget and following prorogation, we were told to return to the House and the Conservatives were told to return to the House with a more meaningful budget. During that period of time I learned from the people in the riding of Guelph that I was to come here and work, work toward a solution and not just say no, no.

I am not entirely pleased with the budget either, nor is anyone in the Liberal Party, but we are nevertheless prepared to work, work. Is there anyone in the riding of my friend who has said to him “go and work, work instead of just saying no, no?”