Bill C-10 (Historical)

Budget Implementation Act, 2009

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

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

[Pat Martin, NDP, Winnipeg Centre, MB]

I'm happy to try to cooperate, Mr. Chairman, although I don't have a great deal to ask.

Perhaps as my closing remark let me say that the reason our party is having a hard time supporting Bill C-10 is that we find it draws more from the economic update of November than it does from the budget. The question I would put to any of the witnesses, not unlike my colleague from the Bloc previously, is what economic stimulus do you think the government could draw from limiting women's right to take pay equity appeals to the Human Rights Commission, or rolling back wages in the public sector, or gutting foreign ownership legislation, or going after student loan debt even more aggressively but not going after Technology Partnerships Canada loans? The payback rate for student loans is 96%. The payback rate for Technology Partnerships loans is 2%, and there are billions of dollars out there.

This thing is like a neo-conservative piñata, and when Mr. Ignatieff hits it, all this neo-conservative wish list is going to rain down on Canadians' heads.

What possible economic stimulus could you draw from any of the examples I've just cited? Can anybody answer?

[Martha Hall Findlay, Liberal, Willowdale, ON]

Thank you.

I appreciate my colleague's comments about how wonderful the infrastructure program is and the municipalities' enthusiasm for the loan program. Absolutely, that is our understanding as well. But the infrastructure money that has in fact been flowing over the last two and a half to three years has been the money that has been flowing through the gas tax fund and the GST rebate.

Of the $8.8 billion Building Canada Fund that was announced, unless the representatives from the Department of Finance can tell me differently, our understanding is that the amount of money that has in fact been spent of the $8.8 billion amounts to probably less than 5%. So far we've only had $80 million confirmed as having been spent, not of the gas tax fund that has flowed, not of the GST rebate that has flowed, but of the Building Canada Fund. And that shockingly low percentage is extremely important here, because virtually all of the infrastructure promises being made in this budget and in Bill C-10 are being done on the basis of a shared and matching process. It is not a question of too many municipalities lining up; it is a question of there have not been enough situations where that money has been in fact able to flow.

So the question to the finance department, based on history, is twofold. One, do you have a different number from what I have in terms of the $80 million that has been spent so far, a significant amount having in fact been allocated and then lapsed? If you have a different number from that, I'd really appreciate it. And two, could you answer based on the past experience of this process of matching admittedly up to 50%? That's been exactly the funding process that has failed so miserably in the last two and a half years.

If you can answer both of those, I'd really appreciate it. Thank you.

BUDGET IMPLEMENTATION ACT, 2009

[Robert Vincent, Bloc, Shefford, QC]

Madam Speaker, I am pleased to rise in the House today to discuss the key issues in the recent Conservative-Liberal budget. The new Liberal Party leader's about-face sets us back to square one. Once again we clearly see that no federalist party is capable of understanding Quebec's real interests.

During his first term, the Conservative Prime Minister appeared to show some openness with the supposed recognition of the Quebec nation, but we know what happened next: cuts to not-for-profit organizations, to economic development and to culture. It is all well and good to talk about nationhood, but a nation without culture is not really a nation.

Let us turn our attention to employment insurance. The Prime Minister requested that Parliament be prorogued. One might have hoped that he would use the time to find solutions to meet the needs of Quebeckers. Rumours propagated by Quebec backbenchers and ministers suggested that the Conservatives would be more sensitive to the demands of our unemployed workers. We had two minimum demands to help them: eliminate the two week waiting period and make the employment insurance system more accessible. In response, we were told there would be no changes. Unemployed workers, in the midst of a crisis, are faced with the stress of surviving for two, four or even six weeks with no income, that is, if they even qualify. In a burst of generosity, the Conservatives decided to add five weeks. How can people benefit from those five weeks if they do not even qualify? Nevertheless, we support that measure. It is a small step in the right direction, but we will continue to demand major changes to the employment insurance system.

If we want to make major changes to employment insurance, we have to think of the unemployed. The government has never given a moment's thought to the unemployed. Let me explain. The government says that it will allocate a billion dollars to retraining workers, but we have to be careful here. For who can say, today, what the jobs of tomorrow will be? I do not think that the government knows that right now. Last September and October, the government did not even know that there was going to be a deficit. So I do not think it knows exactly what kind of jobs will be available in two years. The Conservatives are about to spend a billion dollars on something they do not understand. They are about to spend taxpayers' money without a real plan in mind.

When the last budget was tabled, and even when we came back after the election campaign, the only political party that had a costed, balanced budget to propose was the Bloc Québécois. The other three parties, the federalists, had no budget. The government in power had to submit two economic statements and two budgets to come up with a concrete plan that was able to satisfy the Liberals, who leapt at the opportunity to support it.

Still we are talking about people in need, particularly workers. That reminds me of the program for older worker assistance that the government flatly rejected. It would have been a big step forward in helping people 55 and older who lose their jobs because of plant closures or massive layoffs. Such a program would have enabled them to live with dignity until retirement. But the government has no interest in helping these people find new jobs, so they have to go on welfare. They still have kids in university and house payments they can no longer make. Take, for example, a 58-year-old with a grade nine education who loses his job. I would really like our Conservative friends to explain how that person can be retrained, how they plan to find him another job, or what kind of training they can give him. I still have my doubts.

This program would have accomplished two things. First, as I mentioned earlier, it would have bridged older workers to their retirement at age 65. It would also have freed up jobs for younger workers. With economic recovery, there would be more jobs available. However, the government ignored this and I am extremely disappointed to see that they think only of themselves.

Then there are tax cuts. Does anyone benefit other than those who do not need them? The tax cuts should have targeted workers with the lowest salaries; instead, they benefit workers with the highest. The government wants to help people but they are not being practical.

Furthermore, they have again overlooked our seniors. What tax cuts were they given? To benefit from a tax cut, you have to pay tax. If you do not pay tax, you cannot use a tax cut. That is obvious. The majority of people who live below the poverty line get nothing, not even one dollar. Seniors received a mere two to three additional dollars. Some people in my riding said to me, “Rather than increasing pensions by $2, they should have kept that money and given it to those who need it even more.”

There are even more serious issues with this budget. Agriculture is mentioned. That is another problem. I have been here four and a half years. Every year, over the past three or four years, there has been talk of how to eliminate supply management. I think they have found a solution and I will read a passage about this. It refers to tariffs on milk proteins: “The federal government is issuing these regulations to comply with a ruling of the Canadian International Trade Tribunal, the CITT. Upheld by the Federal Court of Appeal, it is a very serious ruling that could negatively affect the supply management system.”

How did they manage to do such a thing? This came about following a misunderstanding between the Department of Foreign Affairs and International Trade and the Canada Border Services Agency. The two had different classifications for milk protein concentrates with more than 85% concentration. The result was that a Swiss business, Advidia, was able to take its case to the Canadian International Trade Tribunal and challenge the regulations that classified its Promix 372B products under a tariff line which is tariff free as well as under the more expensive tariff line 0404. The Tribunal and the Federal Court of Appeal ruled in favour of the business, creating a dangerous precedence and shaking the very foundation of our supply management system, which relies on rigorous protection of our borders.

The Bloc Québécois cannot oppose these regulations because they are intended to bring us into compliance with a ruling from the Canadian International Trade Tribunal and the Federal Court of Appeal. But I can guarantee that the Bloc will continue to fight to fully protect the supply management system by pressuring Canada's lead negotiators at the WTO to not make any concessions that would undermine, in any way, the supply management system.

As we can see, the Conservative government is not responding to Quebec's expectations, be it in terms of employment insurance, agriculture, the forestry and manufacturing sectors, tax reductions or the unilateral creation of a Canadian securities commission.

Basically, the Bloc Québécois is not satisfied with the majority of the points mentioned in Bill C-10. Consequently, the Bloc Québécois will vote against the bill.

[Paul Szabo, Liberal, Mississauga South, ON]

Madam Speaker, I want to congratulate the member for Yukon who yesterday spent a number of hours going through all the briefings of Bill C-10. We had an opportunity to talk about some of the observations.

In addition to the matters that the member indicated were probably not adequately addressed in the budget, one issue has to do with this document itself and the fact that it appears to deal with certain areas which are really beyond the scope of the budget and effectively makes the document an omnibus bill where a whole bunch of other things has been thrown in. It is over 500 pages long. It is going to take an awfully long time for us to get this done.

I am wondering whether the member has any concerns that this will in fact delay the flow of the important programs, the money for the programs and infrastructure, et cetera, and that there will be lags such that the critical objectives of protecting and creating jobs through things like infrastructure spending and other legitimate stimuli are going to be delayed beyond the best interests of Canadians.

[Stephen Richardson]

A number of steps are being taken to try to ensure that this money, which has been provided for in the budget, and in particular for infrastructure, will be available on the most efficient basis. Of course one of the things the government has to do in providing this money is to ensure that there is appropriate responsibility and accountability for decisions and that in providing money more rapidly, appropriate controls are still respected. Having said that, a number of these steps should lead to a number of things happening faster than they have in the past.

I'd note again that in order not to have to wait for appropriations through the regular supply process, a number of these funds will be appropriated through Bill C-10. Also, the Treasury Board Secretariat of Canada will be making arrangements to try to process funding decisions on an expedited basis. In addition, as we mentioned, Infrastructure Canada, which is responsible for much of the infrastructure funding, has already been in discussions with provinces. It has been actually identifying specific projects and analyzing these projects ahead of time. There will be an interdepartmental committee within the government that will review on a regular basis the progress of making this funding available.

I'd also note that some of the substantive policy decisions in the infrastructure initiatives will assist in making funding available and getting funding out more quickly. For example, to the extent that infrastructure funding is being provided for repairs and renovations, this can happen a lot faster than when very large new projects are being done. That is one of the reasons that approach was taken with a number of the infrastructure initiatives in the budget.

[Martha Hall Findlay, Liberal, Willowdale, ON]

I note that a national securities regulator will need cooperation with the provinces as well, but at least the funding for it is in Bill C-10.

On another point, in reference to the consultations in terms of infrastructure spending, I have heard several people refer to consultations with provinces and to the good news that provinces sound as though they're ready to match.

But my understanding of the Building Canada Fund process, under which most of the infrastructure promises have been made in the budget, in Bill C-10, is that it also requires municipal matching. I'd like to know if, in those consultations, you did include consultations with the municipalities, and were the municipalities similarly positive about their ability to match funds?

[Stephen Richardson]

No, it is not in Bill C-10, because the working income tax benefit increase involves consultations with provinces with respect to the design as it applies in each province.

The main element of the working income tax benefit is to try to supplement income where there's a loss of benefits, usually provincial benefits, as a result of a lower-income person beginning to work or working more. To make that effective, both the existing working income tax benefit and any supplement to it have to be worked out in some detail with each of the provinces. We're in the process of doing that.

[Martha Hall Findlay, Liberal, Willowdale, ON]

Okay.

Can I ask a similar question about the working income tax benefit? It's certainly not in Bill C-10.

[Martha Hall Findlay, Liberal, Willowdale, ON]

I know very well it's not in Bill C-10. I was asking about--

[Stephen Richardson]

My understanding is that it is in the ways and means motion. It is not in Bill C-10, so--

[Larry Bagnell, Liberal, Yukon, YT]

Madam Speaker, I am happy to discuss Bill C-10, a very large bill. If any members from other parties are slouching back in their seat and waiting for the bill to pass because it simply would implement the budget, they had better look twice at the bill.

It is 444 pages long, with 471 clauses. A lot of new things are in it, things that we never heard in the budget. How many MPs knew that a whole rewrite of the Navigable Waters Protection Act would be it? It is not even mentioned in the budget. Pages 291 to 306 deal with those changes, and I will talk about those later.

Other major changes in the bill affect the Competition Act. I refer to the comments by the member for Pickering—Scarborough East, who is an expert on the Competition Act. He said that these were the most drastic changes to be act since 1986, that they were not based on the broad consensus of the Red Wilson and that it was too broad to be swept under the rug quickly, which is what is happening at this time.

It is amazing that no Conservatives are speaking to the major changes to those two acts and to a number of changes to other acts. These were not mentioned at all in the budget. It is also amazing that members from the government say they want quick passage of this bill. Why would they add all these complications, things that should have significant Parliamentary debate, into a budget implementation act? That slows the process if members are to do due diligence and deal with these other items?

I want to spend my time talking about items in the budget and future budgets, based mostly on the feedback I have received from people in my riding. A lot of changes will have to be added or made in the future.

First, I received a number of comments from first nations on infrastructure. They make the point that they have different infrastructure needs. They do not normally build convention centres, but they have all kinds of particular needs and they want to be eligible for those funds. They want to ensure they have access to the infrastructure programs and they want clarity on the specific funds available solely to first nations.

Second, they want to ensure they have an important role in the new northern agency. Because they are half the population north of 60°, this is very important. They have a different world view, different opportunities and different challenges. There are 23 governments in my riding of which 22 are first nations and municipalities. How will they be involved in the establishment of the new agency?

The administration of housing funds is a particularly upsetting point. The northern housing funds are a very excellent allocation in the budget. However, last time the minister, who is now the Minister of the Environment, had hoped all that money would go to first nations, but it did not. It was not specifically given to self-governing first nations to deliver it. Now $400 million is set aside in the budget for on reserve first nations in the south. However, it is not specified how much of the $200 million north of 60° is for first nations, nor how it will be delivered. Once again, the first nations are furious about the repetition of this problem.

It speaks to a bigger problem. The new governments we have created, which, in some areas, have equal to more power than the provinces of Ontario or Quebec, have not been treated like governments. The funds they will be delivering end up being run through other governments.

With regard to housing money, the bill specifically says “social housing” units in the north. For aboriginal people in the south, it says “on-reserve housing”. A chief in the north spoke to me about this. He wants his people to be self-sufficient. The people want to build housing and charge rents without it being solely limited to social housing units. With the new economic development plan, they have their own world view. They want to ensure they are recognized for that and have their views respected.

The biggest item for first nations is the financial transfer arrangement. The nine year review has been going on for a number of years now.

The biggest item for first nations is the financial transfer arrangement. The review has been on going for a number of years now. We need a mandate from the federal government. We need to get on with it quickly, conclude it and implement it. Before the election, the minister said that he would do this quickly. There are benefits for everyone, for Arctic sovereignty, for economic development, for governance in the northern strategy. Let us get on with it and get it done.

Hopefully the government will continue its support on interoperability of our first responders in emergencies. I am happy with what it is doing so far. Police, health responders and ambulance operators are working together to ensure communications are interoperable. This will save lives, both the responders and the victims. Lives have been lost because of a lack of interoperability. I hope this gets due attention in Parliament.

President Obama has already brought it up, and the U.S. governors have a good understanding of it.

Another item that could have been put back in the budget was the GST tourism rebate. Once again, this is an obvious stimulus. Virtually every other major country in the world does it, yet the government cancelled the rebate for individual tourists. That hurts our tourism industry.

Once again, the municipalities would like infrastructure funds to flow through a system like the gas tax, so it can be done quickly. The member for Willowdale brought this up, as have our municipalities. They want the funds to flow quickly.

Related to the northern agreement, we hope the government will ensure it is streamed individually. Each of the three territories in the north are totally different and have different needs. That needs to be respected. There is also talk about oversight of such a fund by major leaders in the north. They do not want too much money spent on the administration. I have no problem with putting enough in to do the administration properly, while ensuring they have the programs to deliver it. That would make the percentage of administration small.

Millions upon millions have been allocated in the budget to help the vulnerable. We have said over and over that it is not enough. The Department of Finance has calculated that it would only be $900 million to cancel the two week waiting period for which we had asked, and it could be allocated from other items in the budget.

On the RCMP rollback, and I have mentioned this before in the House, a number of RCMP officers in my area are very upset that the government made a deal with them. Now it has gone back on its word. This is a critical service for our nation and it is a dangerous occupation in which to be.

Related to the credit card increases for individuals and business, there is good news and bad news. There is nothing related to businesses in the budget. Related to individuals, there are provisions that will make for more transparency. If the credit card companies want to increase fees, if payments are missed, they will have to announce the increase before implementing it so people will know it is coming.

I have had two phone calls today from people who very upset with the heritage minister for suggesting he has no opposition to commercials on CBC. Across the country, everyone is still very upset with the heritage minister for cancelling programs for the international marketing of our artists. These programs were cancelled in the last budget, but were never reinstated.

The navy league approached me about the building of boats. The Prime Minister promised three icebreakers and has now cancelled two of those. The ice-strengthened supply ships seem to have been cancelled. The aircraft for Yellowknife seem to have been cancelled. The search and rescue planes for the north are nowhere to be seen.

On the infrastructure program, which we called for last October, we recently found that the terms and conditions for the program are not even ready. It is not that the projects are not shovel ready, it is the program is not ready yet.

The bill proposes major changes to the Navigable Waters Protection Act. I am not saying that some of those changes are not needed, they are, and Parliament agrees, but this is not the place to do it. It will not speed up projects.

A lot of the problems that people are complaining about are in the Fisheries Act, not the Navigable Waters Protection Act. If an inspection needs to be done of an airplane before it takes off, the inspection is not cancelled because it will take too long. More inspectors need to be hired to get it done more quickly.

Finally, the elimination of the regulations from the statutory instrument review in the Navigable Waters Protection Act is not something--

[Pat Martin, NDP, Winnipeg Centre, MB]

That's right, but in all likelihood Bill C-10 is going to pass within the lifespan of this government and this Parliament.

We don't know. This worries me. We're being sold a pig in a poke here. Canadian homeowners are being asked to take this great leap of faith that they can go out and spend the money, do their duty and stimulate the economy, and reduce greenhouse gas emissions and all those good things.

What reasoning was there for leaving it out of Bill C-10? Wouldn't it have been simple to add a third paragraph under renovation of social housing and renovation of northern housing, and then have the home renovation tax credit all in Bill C-10?

[Stephen Richardson]

That is correct, just as the measures in Bill C-10 would not have effect if the government fell before that bill is passed.

[Stephen Richardson]

You are correct, it's not in Bill C-10. But I would point out that it's common with tax changes to have them effective for a taxation year after a certain date. The home renovation tax credit, as stated in a notice of ways and means motion that has been tabled in the House, is to be effective for expenditures beginning the day after the budget, for a period of one year.

The credit that's earned by the taxpayers on those expenditures, which they can now make, and could have made commencing the day after the budget, will allow them, within the limits of the design of the tax credit, to reduce their taxes for the 2009 taxation year.

So I think the general answer to the question is yes, there is a requirement for legislation, obviously, to make this effective, but as is not uncommon with tax measures, it can be acted upon now, on the understanding that legislation will follow to put this into effect.

[Pat Martin, NDP, Winnipeg Centre, MB]

Thank you, Mr. Chair.

It seems to me, from our research, that some of the best economic stimulus will come from the energy retrofitting of homes. There's short-term and long-term stimulus. There's the initial spending on jobs to do the renovation, and then homeowners should have more money in their pockets, out of energy costs saved, to further spend elsewhere.

We see the reference in Bill C-10 to the renovation and retrofit of social housing at a sum of $500 million, and northern housing at a sum of $100 million, but I don't see in Bill C-10 a general program for the average homeowner. We have homeowners calling our offices already, asking us, “Can we start spending? Can we start buying windows and doors and renovations with the guarantee that this is going through?”

I ask the witnesses from the Department of Finance, do we need the enabling legislation to follow through with this promise that was in the budget and that in fact is up on your website? Is it in Bill C-10, or are we supposed to wait for some further legislation?