Bill C-38 (Historical)

Jobs, Growth and Long-term Prosperity Act

An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures

Part 1 of this enactment implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) expands the list of eligible expenses under the Medical Expense Tax Credit to include blood coagulation monitors and their disposable peripherals;
(b) introduces a temporary measure to allow certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract;
(c) extends, for one year, the temporary Mineral Exploration Tax Credit for flow-through share investors;
(d) allows corporations to make split and late eligible dividend designations;
(e) makes the salary of the Governor General taxable and adjusts that salary;
(f) allows a designated partner of a partnership to provide a waiver on behalf of all partners to extend the time limit for issuing a determination in respect of the partnership;
(g) amends the penalty applicable to promoters of charitable donation tax shelters who file false registration information or who fail to register a tax shelter prior to selling interests in the tax shelter;
(h) introduces a new penalty applicable to tax shelter promoters who fail to respond to a demand to file an information return or who file an information return that contains false or misleading sales information;
(i) limits the period for which a tax shelter identification number is valid to one calendar year;
(j) modifies the rules for registering certain foreign charitable organizations as qualified donees;
(k) amends the rules for determining the extent to which a charity has engaged in political activities; and
(l) provides the Minister of National Revenue with the authority to suspend the privileges, with respect to issuing tax receipts, of a registered charity or a registered Canadian amateur athletic association if the charity or association fails to report information that is required to be filed annually in an information return or devotes resources to political activities in excess of the limits set out in the Income Tax Act.
Part 1 also implements other selected income tax measures and related measures. Most notably, it
(a) amends the Income Tax Act consequential on the implementation of the Marketing Freedom for Grain Farmers Act, including the extension of the tax deferral allowed to farmers in a designated area who produce listed grains and receive deferred cash purchase tickets to all Canadian farmers who produce listed grains and receive deferred cash purchase tickets;
(b) provides authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return; and
(c) introduces a requirement for commercial tax preparers to file income tax returns electronically.
Part 2 amends the Excise Tax Act to implement certain excise tax and goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 29, 2012 Budget. It expands the list of GST/HST zero-rated medical and assistive devices as well as the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases. It also exempts certain pharmacists’ professional services from the GST/HST, other than prescription drug dispensing services that are already zero-rated. It further allows certain literacy organizations to claim a rebate of the GST and the federal component of the HST paid on the acquisition of books to be given away for free by those organizations. It also implements legislative requirements relating to the Government of British Columbia’s decision to exit the harmonized sales tax framework. Additional amendments to that Act and related regulations in respect of foreign-based rental vehicles temporarily imported by Canadian residents provide, in certain circumstances, relief from the GST/HST, the Green Levy on fuel-inefficient vehicles and the automobile air conditioner tax. This Part further amends that Act to ensure that changes to the standardized fuel consumption test method used for the EnerGuide, as announced on February 17, 2012 by the Minister of Natural Resources, do not affect the application of the Green Levy.
Finally, Part 2 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to provide authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return.
Part 3 contains certain measures related to responsible resource development.
Division 1 of Part 3 enacts the Canadian Environmental Assessment Act, 2012, which establishes a new federal environmental assessment regime. Assessments are conducted in relation to projects, designated by regulations or by the Minister of the Environment, to determine whether they are likely to cause significant adverse environmental effects that fall within the legislative authority of Parliament, or that are directly linked or necessarily incidental to a federal authority’s exercise of a power or performance of a duty or function that is required for the carrying out of the project.
The Canadian Environmental Assessment Agency, the Canadian Nuclear Safety Commission, the National Energy Board or a review panel established by the Minister are to conduct assessments within applicable time limits. At the end of an assessment, a decision statement is to be issued to the project proponent who is required to comply with the conditions set out in it.
The enactment provides for cooperation between the federal government and other jurisdictions by enabling the delegation of an environmental assessment, the substitution of the process of another jurisdiction for an environmental assessment under the Act and the exclusion of a project from the application of the Act when there is an equivalent assessment by another jurisdiction. The enactment requires that there be opportunities for public participation during an environmental assessment, that participant funding programs and a public registry be established, and that there be follow-up programs in relation to all environmental assessments. It also provides for powers of inspection and fines.
Finally, the enactment specifies that federal authorities are not to take certain measures regarding the carrying out of projects on federal lands or outside Canada unless they determine that those projects are not likely to cause significant adverse environmental effects.
This Division also makes related amendments to the Environmental Violations Administrative Monetary Penalties Act and consequential amendments to other Acts, and repeals the Canadian Environmental Assessment Act.
Division 2 of Part 3 amends the National Energy Board Act to allow the Governor in Council to make the decision about the issuance of certificates for major pipelines. It amends the Act to establish time limits for regulatory reviews under the Act and to enhance the powers of the National Energy Board Chairperson and the Minister responsible for the Act to ensure that those reviews are conducted in a timely manner. It also amends the Act to permit the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters and it establishes an administrative monetary penalty system.
Division 3 of Part 3 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters.
Division 4 of Part 3 amends the Nuclear Safety and Control Act to extend the maximum allowable term of temporary members of the Canadian Nuclear Safety Commission from six months to three years. It is also amended to allow for a licence to be transferred with the consent of that Commission and it puts in place an administrative monetary penalty system.
Division 5 of Part 3 amends the Fisheries Act to focus that Act on the protection of fish that support commercial, recreational or Aboriginal fisheries and to more effectively manage those activities that pose the greatest threats to these fisheries. The amendments provide additional clarity for the authorization of serious harm to fish and of deposits of deleterious substances. The amendments allow the Minister to enter into agreements with provinces and with other bodies, provide for the control and management of aquatic invasive species, clarify and expand the powers of inspectors, and permit the Governor in Council to designate another Minister as the Minister responsible for the administration and enforcement of subsections 36(3) to (6) of the Fisheries Act for the purposes of, and in relation to, subject matters set out by order.
Division 6 of Part 3 amends the Canadian Environmental Protection Act, 1999 to provide the Minister of the Environment with the authority to renew disposal at sea permits in prescribed circumstances. It is also amended to change the publication requirements for disposal at sea permits and to provide authority to make regulations respecting time limits for their issuance and renewal.
Division 7 of Part 3 amends the Species at Risk Act to allow for the issuance of authorizations with a longer term, to clarify the authority to renew the authorizations and to make compliance with conditions of permits enforceable. The Act is also amended to provide authority to make regulations respecting time limits for the issuance and renewal of permits under the Act. Furthermore, section 77 is amended to ensure that the National Energy Board will be able to issue a certificate when required to do so by the Governor in Council under subsection 54(1) of the National Energy Board Act.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends a number of Acts to eliminate the requirement for the Auditor General of Canada to undertake annual financial audits of certain entities and to assess the performance reports of two agencies. This Division also eliminates other related obligations.
Division 2 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Cooperative Credit Associations Act to prohibit the issuance of life annuity-like products.
Division 3 of Part 4 provides that PPP Canada Inc. is an agent of Her Majesty for purposes limited to its mandated activities at the federal level, including the provision of advice to federal departments and Crown corporations on public-private partnership projects.
Division 4 of Part 4 amends the Northwest Territories Act, the Nunavut Act and the Yukon Act to provide the authority for the Governor in Council to set, on the recommendation of the Minister of Finance, the maximum amount of territorial borrowings and to make regulations in relation to those maximum amounts, including what constitutes borrowing, the relevant entities and the valuation of the borrowings.
Division 5 of Part 4 amends the Financial Administration Act to modify, for parent Crown corporations, the period to which their quarterly financial reports relate, so that it is aligned with their financial year, and to include in the place of certain annual tabling requirements related to the business and activities of parent Crown corporations a requirement to make public consolidated quarterly reports on their business and activities. It also amends the Alternative Fuels Act and the Public Service Employment Act to eliminate certain reporting requirements.
Division 6 of Part 4 amends the Department of Human Resources and Skills Development Act to establish the Social Security Tribunal and to add provisions authorizing the electronic administration or enforcement of programs, legislation, activities or policies. It also amends the Canada Pension Plan, the Old Age Security Act and the Employment Insurance Act so that appeals from decisions made under those Acts will be heard by the Social Security Tribunal. Finally, it provides for transitional provisions and makes consequential amendments to other Acts.
Division 7 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the protection of personal information obtained in the course of administering or enforcing the Canada Pension Plan and the Old Age Security Act and repeals provisions in the Canada Pension Plan and the Old Age Security Act that are substantially the same as those that are added to the Human Resources and Skills Development Act.
Division 8 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the social insurance registers and Social Insurance Numbers. It also amends the Canada Pension Plan in relation to Social Insurance Numbers and the Employment Insurance Act to repeal certain provisions relating to the social insurance registers and Social Insurance Numbers and to maintain the power to charge the costs of those registers to the Employment Insurance Operating Account.
Division 9 of Part 4 amends the Parks Canada Agency Act to provide that the Agency may enter into agreements with other ministers or bodies to assist in the administration and enforcement of legislation in places outside national parks, national historic sites, national marine conservation areas and other protected heritage areas if considerations of geography make it impractical for the other minister or body to administer and enforce that legislation in those places. It also amends that Act to provide that the Chief Executive Officer is to report to the Minister of the Environment under section 31 of that Act every five years. It amends that Act to remove the requirements for annual corporate plans, annual reports and annual audits, and amends that Act, the Canada National Parks Act and the Canada National Marine Conservation Areas Act to provide that that Minister is to review management plans for national parks, national historic sites, national marine conservation areas and other protected heritage areas at least every 10 years and is to have any amendments to a plan tabled in Parliament.
Division 10 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act in order to allow public sector investment pools that satisfy certain criteria, including pursuing commercial objectives, to directly invest in a Canadian financial institution, subject to approval by the Minister of Finance.
Division 11 of Part 4 amends the National Housing Act, the Canada Mortgage and Housing Corporation Act and the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act to enhance the governance and oversight framework of the Canada Mortgage and Housing Corporation.
This Division also amends the National Housing Act to establish a registry for institutions that issue covered bonds and for covered bond programs and to provide for the protection of covered bond contracts and covered bond collateral in the event of an issuer’s bankruptcy or insolvency. It also makes amendments to the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to prohibit institutions from issuing covered bonds except within the framework established under the National Housing Act. Finally, it includes a coordinating amendment to the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act.
Division 12 of Part 4 implements the Framework Agreement on Integrated Cross-Border Maritime Law Enforcement Operations between the Government of Canada and the Government of the United States of America signed on May 26, 2009.
Division 13 of Part 4 amends the Bretton Woods and Related Agreements Act to reflect an increase in Canada’s quota subscription, as related to the ratification of the 2010 Quota and Governance reform resolution of the Board of Governors of the International Monetary Fund, and to align the timing of the annual report under that Act to correspond to that of the annual report under the Official Development Assistance Accountability Act.
Division 14 of Part 4 amends the Canada Health Act so that members of the Royal Canadian Mounted Police are included in the definition of “insured person”.
Division 15 of Part 4 amends the Canadian Security Intelligence Service Act to
(a) remove the office of the Inspector General;
(b) require the Security Intelligence Review Committee to submit to the Minister of Public Safety and Emergency Preparedness a certificate on the Director of the Canadian Security Intelligence Service’s annual report; and
(c) increase the information on the Service’s activities to be provided by that Committee to that Minister.
Division 16 of Part 4 amends the Currency Act to clarify certain provisions that relate to the calling in and the redemption of coins.
Division 17 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act in order to implement the total transfer protection for the 2012-2013 fiscal year and to give effect to certain elements of major transfer renewal that were announced by the Minister of Finance on December 19, 2011. It also makes certain administrative amendments to that Act and to the Canada Health Act.
Division 18 of Part 4 amends the Fisheries Act to authorize the Minister of Fisheries and Oceans to allocate fish for the purpose of financing scientific and fisheries management activities in the context of joint project agreements.
Division 19 of Part 4 amends the Food and Drugs Act to give the Minister of Health the power to establish a list that sets out prescription drugs or classes of prescription drugs and to provide that the list may be incorporated by reference. It also gives the Minister the power to issue marketing authorizations that exempt a food, or an advertisement with respect to a food, from certain provisions of the Act. The division also provides that a regulation with respect to a food and a marketing authorization may incorporate by reference any document. It also makes consequential amendments to other Acts.
Division 20 of Part 4 amends the Government Employees Compensation Act to allow prescribed entities to be subrogated to the rights of employees to make claims against third parties.
Division 21 of Part 4 amends the International Development Research Centre Act to reduce the maximum number of governors of the Centre to 14, and to consequently change other rules about the number of governors.
Division 22 of Part 4 amends Part I of the Canada Labour Code to require the parties to a collective agreement to file a copy of it with the Minister of Labour, subject to the regulations, as a condition for it to come into force. It amends Part III of that Act to require employers that provide benefits to their employees under long-term disability plans to insure those plans, subject to certain exceptions. The Division also amends that Part to create an offence and to increase maximum fines for offences under that Part.
Division 23 of Part 4 repeals the Fair Wages and Hours of Labour Act.
Division 24 of Part 4 amends the Old Age Security Act to provide the Minister of Human Resources and Skills Development with the authority to waive the requirement for an application for Old Age Security benefits for many eligible seniors, to gradually increase the age of eligibility for the Old Age Security Pension, the Guaranteed Income Supplement, the Allowance and the Allowance for the Survivor and to allow individuals to voluntarily defer their Old Age Security Pension up to five years past the age of eligibility, in exchange for a higher, actuarially adjusted, pension.
Division 25 of Part 4 dissolves the Public Appointments Commission and its secretariat.
Division 26 of Part 4 amends the Seeds Act to give the President of the Canadian Food Inspection Agency the power to issue licences to persons authorizing them to perform activities related to controlling or assuring the quality of seeds or seed crops.
Division 27 of Part 4 amends the Statutory Instruments Act to remove the distribution requirements for the Canada Gazette.
Division 28 of Part 4 amends the Investment Canada Act in order to authorize the Minister of Industry to communicate or disclose certain information relating to investments and to accept security in order to promote compliance with undertakings.
Division 29 of Part 4 amends the Customs Act to allow the Minister of Public Safety and Emergency Preparedness to designate a portion of a roadway or other access way that leads to a customs office and that is used by persons arriving in Canada and by persons travelling within Canada as a mixed-traffic corridor. All persons who are travelling in a mixed-traffic corridor must present themselves to a border services officer and state whether they are arriving from a location outside or within Canada.
Division 30 of Part 4 gives retroactive effect to subsections 39(2) and (3) of the Pension Benefits Standards Act, 1985.
Division 31 of Part 4 amends the Railway Safety Act to limit the apportionment of costs to a road authority when a grant has been made under section 12 of that Act.
Division 32 of Part 4 amends the Canadian International Trade Tribunal Act to replace the two Vice-chairperson positions with two permanent member positions.
Division 33 of Part 4 repeals the International Centre for Human Rights and Democratic Development Act and authorizes the closing out of the affairs of the Centre established by that Act.
Division 34 of Part 4 amends the Health of Animals Act to allow the Minister of Agriculture and Agri-Food to declare certain areas to be control zones in respect of a disease or toxic substance. The enactment also grants the Minister certain powers, including the power to make regulations prohibiting the movement of persons, animals or things in the control zones for the purpose of eliminating a disease or toxic substance or controlling its spread and the power to impose conditions on the movement of animals or things in those zones.
Division 35 of Part 4 amends the Canada School of Public Service Act to abolish the Board of Governors of the Canada School of Public Service and to place certain responsibilities on the Minister designated for the purposes of the Act and on the President of the School.
Division 36 of Part 4 amends the Bank Act by adding a preamble to it.
Division 37 of Part 4 amends the Corrections and Conditional Release Act to eliminate the requirement of a hearing for certain reviews.
Division 38 of Part 4 amends the Coasting Trade Act to add seismic activities to the list of exceptions to the prohibition against foreign ships and non-duty paid ships engaging in the coasting trade.
Division 39 of Part 4 amends the Status of the Artist Act to dissolve the Canadian Artists and Producers Professional Relations Tribunal and transfer its powers and duties to the Canada Industrial Relations Board.
Division 40 of Part 4 amends the National Round Table on the Environment and the Economy Act to give the Round Table the power to sell or otherwise dispose of its assets and satisfy its debts and liabilities and to give the Minister of the Environment the power to direct the Round Table in respect of the exercise of some of its powers. The Division provides for the repeal of the Act and makes consequential amendments to other acts.
Division 41 of Part 4 amends the Telecommunications Act to change the rules relating to foreign ownership of Canadian carriers eligible to operate as telecommunications common carriers and to permit the recovery of costs associated with the administration and enforcement of the national do not call list.
Division 42 of Part 4 amends the Employment Equity Act to remove the requirements that are specific to the Federal Contractors Program for Employment Equity.
Division 43 of Part 4 amends the Employment Insurance Act to permit a person’s benefits to be determined by reference to their highest earnings in a given number of weeks, to permit regulations to be made respecting what constitutes suitable employment, to remove the requirement that a consent to deduction be in writing, to provide a limitation period within which certain repayments of overpayments need to be deducted and paid and to clarify the provisions respecting the refund of premiums to self-employed persons. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including requiring that the rate be set on a seven-year break-even basis once the Employment Insurance Operating Account returns to balance. The Division makes consequential amendments to the Canada Employment Insurance Financing Board Act.
Division 44 of Part 4 amends the Customs Tariff to make certain imported fuels duty-free and to increase the travellers’ exemption thresholds.
Division 45 of Part 4 amends the Canada Marine Act to require provisions of a port authority’s letters patent relating to limits on the authority’s power to borrow money to be recommended by the Minister of Transport and the Minister of Finance before they are approved by the Governor in Council.
Division 46 of Part 4 amends the First Nations Land Management Act to implement changes made to the Framework Agreement on First Nation Land Management, including changes relating to the description of land that is to be subject to a land code, and to provide for the coming into force of land codes and the development by First Nations of environmental protection regimes.
Division 47 of Part 4 amends the Canada Travelling Exhibitions Indemnification Act to increase the maximum indemnity in respect of individual travelling exhibitions, as well as the maximum indemnity in respect of all travelling exhibitions.
Division 48 of Part 4 amends the Canadian Air Transport Security Authority Act to provide that the chief executive officer of the Authority is appointed by the Governor in Council and that an employee may not replace the chief executive officer for more than 90 days without the Governor in Council’s approval.
Division 49 of Part 4 amends the First Nations Fiscal and Statistical Management Act to repeal provisions related to the First Nations Statistical Institute and amends that Act and other Acts to remove any reference to that Institute. It authorizes the Minister of Indian Affairs and Northern Development to close out the Institute’s affairs.
Division 50 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to provide for the payment or reimbursement of fees for career transition services for veterans or their survivors.
Division 51 of Part 4 amends the Department of Human Resources and Skills Development Act to add powers, duties and functions that are substantially the same as those conferred by the Department of Social Development Act. It repeals the Department of Social Development Act and, in doing so, eliminates the National Council of Welfare.
Division 52 of Part 4 amends the Wage Earner Protection Program Act in order to correct the English version of the definition “eligible wages”.
Division 53 of Part 4 repeals the Kyoto Protocol Implementation Act.
Division 54 of Part 4 amends the Immigration and Refugee Protection Act and the Budget Implementation Act, 2008 to provide for the termination of certain applications for permanent residence that were made before February 27, 2008. This Division also amends the Immigration and Refugee Protection Act to, among other things, authorize the Minister of Citizenship and Immigration to give instructions establishing and governing classes of permanent residents as part of the economic class and to provide that the User Fees Act does not apply in respect of fees set by those instructions. Furthermore, this Division amends the Immigration and Refugee Protection Act to allow for the retrospective application of certain regulations and certain instructions given by the Minister, if those regulations and instructions so provide, and to authorize regulations to be made respecting requirements imposed on employers in relation to authorizations to work in Canada.
Division 55 of Part 4 enacts the Shared Services Canada Act to establish Shared Services Canada to provide certain administrative services specified by the Governor in Council. The Act provides for the Governor in Council to designate a minister to preside over Shared Services Canada.
Division 56 of Part 4 amends the Assisted Human Reproduction Act to respond to the Supreme Court of Canada decision in Reference re Assisted Human Reproduction Act that was rendered in 2010, including by repealing the provisions that were found to be unconstitutional and abolishing the Assisted Human Reproduction Agency of Canada.

Jobs, Growth and Long-term Prosperity Act

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Madam Speaker, this is an important program that the government should neither neglect nor eliminate.

Our society and our economy are extremely complex. If we want progress, we need sound policies, policies based on research and data collection, so that we have a better understanding of the reality we are dealing with. Programs that support data collection and analysis make a positive contribution to society and, in this case, to the well-being of Canadian women.

[Deepak Obhrai, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Madam Speaker, it is a great honour and a privilege for me to speak to this very important budget bill.

I listened to the speech of the member of the Liberal Party. One of the reasons I did not ask him a question was I thought he completely missed the intent is of the budget.

Let me just state what is most important about the budget. The budget has certain key points. One of them is to balance the budget. This is the promise we made to the electorate. We have fulfilled this promise by ensuring that our budget will be balanced by the year 2014-15.

How do we balance the budget? It is very simple. We are cutting inefficiencies in the government. That is why the government tasked the committees for the departments to come out with efficiencies so we could operate efficiently, with a reduction of 10% in their expenditures. At the same time, we are ensuring that the regime of doing business and ensuring our core services are maintained. It is very important that we have a sound, economical management of our economy.

I have many facts from economists who state that this budget looks to the future of Canada by ensuring it is on a path to prosperity.

As Parliamentary Secretary to the Minister of Foreign Affairs, this gives me the very rare privilege to travel overseas on behalf of Canada at international conferences. What did I learn from that? A lot of people were asking this one very simple question. During the turmoil taking place in international markets, in the U.S.A., in Europe, everywhere, the question everybody asked was how we managed not to fall into that severe recession. They were very impressed with what was happening with Canada. Our economy is tied to the U.S.A., which is one of the largest economies going through recession. Europe is going through a recession. Yet Canada did not feel the severe effects of the recession. Why? Because the government took proactive steps to ensure that we were insulated from all the aftershocks that took place around the world.

The credit goes to both the Prime Minister and the Minister of Finance for steering the economy during this critical time since 2008 and for creating over 700,000 jobs. In comparison with all the others, we are sitting in a position where we are not feeling the tremors of the international markets that are taking place.

If we leave that to the anti-trade NDP party, we would feel those tremors. If we leave that to the Liberal Party, we do not know where it is going. We had a debate in the House about giving pensions to self-employed. Guess what? The Liberal Party opposed that.

Clearly we need sound financial management, and this government has provided that.

Let us see what happened this weekend in Europe. The elections in Europe will have a tremendous effect because people have voted for more expenditures. The situation Greece faces today will have a national impact. In case my colleagues on the other side did not bother to watch the report on their favourite television channel, the CBC, because Greece's economy has collapsed, its great Olympic athletes will be unable to attend the Olympics.

That is why it is very important to ensure we never get into that situation taking place in Europe or in Greece. In fact, we are quite concerned with what is going on in France. Hopefully, it will address that issue.

In the Daily Telegraph, the finance minister said quite clearly, in talking about the crisis in Europe, that Canada was taking care and looking after its own house. This budget is about that. He said that there should not be an IMF bailout for the Europeans. The Europeans have the same ability as Canada to look after their house. They should be doing that and not asking for money from the International Monetary Fund, or from other countries, to bail them out because they do not have their house in order.

We should take lessons from what has gone on in Europe to ensure that those conditions do not exist in Canada. This budget is about that.

Everyone will be debating the budget. We have heard the opposition. Since we have been in government, we always expect the NDP to oppose us. I am quite happy when it does because it means we have done something right.

As for the Liberal Party, when it tried to balance the budget, it dumped all of its expenditures onto the provinces, creating a severe problem. Then it suddenly said that it had balanced the budget. This government is not going in that direction.

Our government is taking one of the strongest steps by cutting expenditures by 10%. That impacts everyone. That is the way it should go, cutting expenditures and getting our house in order so we live within our means. That is the most important thing. Then when we live within our means, we are able to fund core policies, policies that are very dear to Canadians, such as health care and the Canada pension plan. All of the policies require sound investments. That is what we will do once we move on this path.

By the year 2014-15, we will balance our budget. We will be living within our means without cutting core principal programs. Sure there have been some job losses. Everyone in the world feels a little pain with cuts. However, the economy will remain strong and everyone will be able to readjust and get those jobs back. That is the key element.

As recently as two weeks ago, when I was with my colleague in Trinidad, I talked to its finance minister. He was quite surprised that we had cut government expenditures by 10%. He told his colleagues that a G8 country was cutting expenditures so it could balance its budget and that was something they should learn. That is what Canada is doing. With sound economic management, we are sending the message to other countries around the world to bring their houses in order so the world economic situation can come back to normal and they will not feel threatened with both the uncertainty in Europe as well as the U.S.A.

It is critically important to understand what the budget will do in the long term. The readjustment is fine. At least inefficiencies are being removed. Does the opposition not think we should bring our house in order? Should we not balance the budget? Should we not live within our means and ensure we maintain that? That is the aim of this budget. I hope the opposition will wake up and see that this is the right budget for our country.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Madam Speaker, the hon. member talked about a visionary budget.

What does that vision have to say about the 100,000 manufacturing jobs lost since 2008? Over 400,000 jobs have been lost in the manufacturing sector, and those were good jobs. Because of those job losses, Canada, which is a petroleum exporter, now has to import refined gasoline. That is what things have come to. What does that vision have to say about giving up on wealth creation? There is nothing in the budget about reviving the manufacturing sector, a wealth-creating sector. What does their economic vision have to say about that?

[Deepak Obhrai, Conservative, Calgary East, AB]

Madam Speaker, I am extremely amazed at the question the gentleman asked. Since 2008, a tremendous amount of money in stimulus packages was given to the manufacturing industries in Ontario and Quebec. He can see that. There were stimulus packages that kept us out of the recession. As a matter of fact, for his information, we created 700,000 jobs. It was not for only one portion of the country; it was for the whole country. His leader just talked about the oil sands resource sector in Alberta as if it will not benefit Canada. We work for all of Canada, not just one area of Canada.

[Dominic LeBlanc, Liberal, Beauséjour, NB]

Madam Speaker, the hon. parliamentary secretary and I worked together on foreign affairs issues, and he has a long experience in these matters. In fact, I had the privilege to travel to Tanzania years ago with my hon. friend, and we went to the high school in Arusha from which he had graduated not so long ago. He is still a young man. That is why I want to ask him a question that is very important to my constituents and the people who live in rural communities across Atlantic Canada.

The issue of seasonal work is a huge problem in my constituency. People work in fish plants, forestry and agriculture, and they depend on an employment insurance system to give them some income support at times of the year when there is no work. I am very worried about some of the proposed changes in this budget around defining what, for example, the compliance elements would be for somebody receiving employment insurance and perhaps having an obligation to travel a great distance to accept employment in some other part of the country or some other part of the same region.

I suspect this is a very insidious thing that the Conservative government may be doing, and I am wondering if my colleague, who comes from Alberta, may be able to reassure the seasonal workers in New Brunswick that they will not be attacked by his government.

[Deepak Obhrai, Conservative, Calgary East, AB]

Madam Speaker, I can tell him in no uncertain terms that we are not going to be attacking seasonal workers. We know there are four seasons in Canada, and we understand the need for seasonal workers. Therefore, seasonal workers play a very critical, important part of the economy. To ignore seasonal workers would derail our vision of long-term prosperity in this budget completely.

It was a great pleasure travelling with my hon. friend and his father, the late hon. Governor General of Canada, but I want to say that eastern Canadians should be thankful for working in the Alberta oil sands and making our country better. We are looking forward to more people from eastern Canada going to Alberta because we live in one country, Canada, while the leader of the NDP talks only about his region. Therefore, yes, we will look after seasonal workers, but we welcome workers from eastern Canada working in the oil sands, contributing to the wealth not only of Alberta but all of Canada.

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Madam Speaker, it gives me no great pleasure today to talk about Bill C-38, given its content.

Over the past few days, many people have expressed outrage over this bill, which is not only the budget implementation bill, but also an omnibus bill that the papers have described as “mammoth”. This bill contains an assortment of poison pills. Yesterday I slipped up and used a mixed metaphor when I said, “poisoned snakes”. But actually, the government is trying to force a bunch of snakes down our throats. This bill is riddled with poison pills.

I understand the people who say that they are outraged by Bill C-38, and I sympathize with them. However, we cannot say that we are surprised by the way the Conservatives are acting because this is far from the first time that they have introduced a bill full of poison pills. What is more, they have pulled a stunt like this before with another budget implementation bill. You were a member of Parliament at that time, Madam Speaker, and you will surely remember how the government in power, a minority government, introduced a budget implementation bill that, for example, did away with public servants' right to strike, jeopardized pay equity and abolished public financing of political parties.

At that time, the government thought that none of the opposition parties would dare to force an election on the basis of such issues. Yes, the opposition parties took a stand. The Prime Minister at the time had no choice but to prorogue Parliament. Imagine. To avoid being defeated, he undemocratically prorogued Parliament and shut down the House. Once again, this was a major crisis triggered by this government. Thus, we cannot be surprised by the way this government is acting; however, that does not mean that we should not denounce this type of behaviour.

Yesterday, media representatives asked me what the point was, since the Conservatives have a majority and will do whatever they want. Personally, I think that, if the bill were split, as we and the official opposition have already requested, every committee affected by these measures could examine the bills individually. Thus, each committee would not be required to consider a huge bill that is over 400 pages long and affects approximately 70 existing laws, and to push it through as quickly as possible. If we took the time to examine each of the measures, we would have the opportunity to discuss them and to have people testify in committee, which would change things. Canadians and some activist groups can, from time to time, find a way to counter the government's regressive attitude.

As I was saying earlier, there are a number of measures in the implementation bill that have nothing to do with the budget. Some of these measures were a complete surprise, such as the increase in the retirement age from 65 to 67 and changes to the famous Bank Act, on page 340 of Bill C-38, a measure that once again is compelling Quebec to intervene.

Quebec's justice minister, Jean-Marc Fournier, wrote a letter on April 19 to Canada's Minister of Finance, stating that the minister was once again opening the door to a legal battle between Quebec and Ottawa. The budget implementation bill contains a section on banks, which would no longer be subject to Quebec's consumer protection law. Once again, Ottawa knows best, and Quebec's consumer protection law, which is tougher than the federal law, will no longer apply.

I would like to quote part of Minister Fournier's letter in order to show the extent to which the federal government is interfering in Quebec's jurisdictions. This is what Mr. Fournier wrote to the finance minister:

...we wish to inform you of our concerns with respect to your proposal. The federal Parliament cannot decide in a peremptory manner that provincial laws do not apply to a given sector.

That is clear, quite clear, thank you. It slipped under the radar. The Bloc Québécois rose in the House to ask this question when its members finished scouring through this thick bill. The Bloc got its hands on Minister Fournier's letter to the Minister of Finance. It is completely unacceptable that Quebec may be forced to go to court again, as it did recently on bills such as the Senate reform bill and the bill to end the long gun registry. It has come to this.

That is how relations between Ottawa and Quebec, and probably between Ottawa and other provinces, are run. The dispute with Aveos, for example, affects Manitoba, Ontario and Quebec and those provinces have decided to turn to the courts to make the federal government listen to reason. This is no way to manage things. I would like Quebec to become a country so that we can manage our affairs the way we see fit. We would not have this type of problem with this Canadian government that does not listen to reason and always wears blinkers when it comes to the rights and jurisdictions of the provinces, including those of Quebec.

If, like Minister Fournier, who is a federalist Liberal in Quebec City, we are saying that we do not see ourselves reflected in this Canada, then there is a problem. I think that the government has to realize that.

This bill amends the Bank Act. That should be a whole bill unto itself that we could discuss at length ahead of time. Instead this bill is getting lost among a hodgepodge of other measures that have nothing to do with the budget implementation bill.

We are also going to run into problems with regard to food inspection. I was privileged to be a member of the Standing Committee on Agriculture and Agri-Food for a number of years, including during the crisis that was triggered by an incident at an Ontario company where the food inspection process had failed. Unfortunately, 22 people died of listeriosis. We all remember when that happened in 2008. It sent shock waves across Canada and even around the world, because Canada had always had an excellent reputation when it comes to food inspection. We were affected by this type of problem as well.

At the time, the government wanted the companies to handle food inspection themselves. It was not enough for this government to disregard the recommendations in Ms. Weatherill's report; now it has decided to use this budget implementation bill to reduce the number of inspectors. I think that public health is far more important than any savings that might result from cutting the number of inspectors.

To our great surprise, this has been included in a budget implementation bill. It should be up to the Standing Committee on Health and the Standing Committee on Agriculture and Agri-Food to examine these issues if the government wants to make any changes to food inspection. It has no business hiding them in Bill C-38.

The bill also includes ridiculous things concerning the Governor General, for instance. The Bloc Québécois strongly believes that the Governor General should pay income tax, just like everyone else in Canada. The government simply replied that, from now on, the Governor General would pay taxes. Then it doubled his salary. This has been included in Bill C-38. His salary is being increased from $137,500 tax free to $270,602 and, in the end, the Governor General is going to make more money than he did before. This behaviour is insulting.

This bill also talks about the oil sands. Furthermore, it officially buries the Kyoto protocol. Regarding the oil sands, the budget confirms—as though it needed to—the Conservatives' desire to accelerate the development of the oil sands. For instance, division 1 of part 3 enacts a whole new piece of legislation on environmental protection, whose purpose is to expedite the approval of large projects, particularly those involving oil sands exploitation. Why is this in a budget bill? One has to wonder. It is up to Environment Canada and the Standing Committee on Environment and Sustainable Development to examine these issues.

There are many other measures like that. It is clear that we formally and strongly oppose Bill C-38, as so many people do. This bill needs to be split so these issues can be examined separately.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I thank the hon. member. I have a question regarding environmental assessment. The bill before us is completely and absolutely new.

We have the repeal of the Canadian Environmental Assessment Act. It was brought in in the early 1990s. It replaced a federal guidelines order that was brought in in 1984. It replaced the federal custom of doing environmental reviews where federal money was involved in a review. Therefore, going back to the 1970s, the federal government has always done an environmental assessment whenever federal money was involved.

As I read this new law, that provision is removed for good. Has my hon. colleague noted that as a deficiency in the so-called new environmental assessment law?

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Madam Speaker, I would like to thank my colleague, the leader of the Green Party, for her question.

Indeed, one of the most disgraceful parts of the budget implementation bill is the one that speeds up environmental assessments and allows the federal government to abdicate its responsibilities. This is not only a disgrace but a real scandal.

Every province pays taxes to ensure that the environmental assessment process for development projects is monitored. Now, all of a sudden, not only does the government want to speed up these projects by having less monitoring, but, from now on, it also wants to wash its hands of any responsibility for that monitoring. So the process will be faster and the government will not provide any oversight whatsoever.

This is one of the reasons why we are saying that these parts of the budget implementation bill must be removed and each one sent to the committees involved. The Standing Committee on Natural Resources and the Standing Committee on Environment and Sustainable Development in particular could examine the bills that pertain to the environment so that people can come and testify about the importance of environmental monitoring of development projects.

[Pat Martin, NDP, Winnipeg Centre, MB]

Madam Speaker, I know my colleague agrees with me that fair wages benefit the whole community and that no one gains or benefits when we drive down the wages of the middle class, so that they can no longer participate in the economy and purchase basic household items, et cetera.

What is my colleague's view with respect to the Conservatives eliminating, by virtue of Bill C-38, the Fair Wages and Hours of Work Act, which sets minimum standards for the construction industry right across the country? Now it would drive down wages because jobs can be offered at any wage at all. Some non-union contractors could advertise, “Wanted: Carpenters, $10 an hour”, and no one would apply. Then they would phone and get temporary foreign workers in at any price. This is opening the door to reducing the standard of wages and working conditions of all construction workers across the country by virtue of slipping this in without any announcement, any debate or any consultation whatsoever. It is driving down fair wages.

Does my colleague not agree that fair wages benefit the whole community and that undermining working people's wages benefits no one but the Conservatives' rich friends in the construction industry?

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Madam Speaker, my colleague from Winnipeg Centre raised a good point. I would like to thank him for pointing that out to people because that is the major problem with this bill. It contains a whole bunch of measures that nobody will ever hear about. In fact, we never heard about them before the bill was introduced.

So many measures have been added to this bill—I call them poison pills—that we have to make sure people are aware of what is looming in front of them, as the member for Winnipeg Centre pointed out. This is a real sword of Damocles for many people.

However, what he just said comes as no surprise. This Conservative government has always had an ideological concept of the economy. It is all about cheap labour. Here is one example. The member for Beauce, who is now a minister, did nothing when a bicycle manufacturer in his own riding closed its doors. Those people, libertarians certainly, are guided by the philosophy that if one industry shuts down—even if that means 250 or 300 jobs lost—it is no big deal because another will take its place.

Obviously, that is not how we see things. We do not think that the government should jump in feet first whenever something goes wrong with the economy, but there are ways to intervene in order to save jobs.

Do we have to say that our bicycles will have to come from Taiwan or China? No, we can make bicycles here. We can put measures in place to save Canadian jobs and make sure they pay well.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, it is a pleasure to be here this morning to deliver remarks on Bill C-38.

First and foremost, before we go into the detail of the bill, I would like to point out a couple of things. I would like to give deserved credit to the Minister of Finance. He has delivered budget after budget and has really, in the early years of our government, reduced taxes to put more dollars in the back pockets of hard-working Canadians, over $3,000 more for the average family income. In addition, the tax freedom day comes more than 20 days earlier than it did in 2005.

Certainly, in the early years of the government, we have made several initiatives to reduce the tax burden placed on Canadians and, as well, on Canadian corporations to reduce their costs and reinvest those dollars in people, plants and equipment.

In 2008-09, when we were facing severe economic downturn, our Minister of Finance was there to provide stimulus to the Canadian economy to get us through a very difficult time. As we look at where we are today, both in our economy and with our country's finances, we see we are in excellent shape relative to other industrialized developed nations.

Credit should definitely go to the Minister of Finance for putting us in the place we are and also for looking forward, in the near term, to a near balanced budget in 2014-15.

That really lays the context for where we are today and where we will be with budget 2012-13 as it applies to hard-working Canadian families. This budget is a balanced budget in the fact that it remains committed to transfers to the provinces in the form of transfers for health, in addition to social programs. These programs are the fabric of what makes us Canadians and what makes us unique relative to the rest of the world.

In addition to that, we have also made some tough choices to reduce our long-term operating expenses, $5 billion-plus in long-term ongoing reductions in operating costs, which will really set our country on a foundation of success for many years to come.

As we look to Europe and other developed nations that are facing massive deficits, debts and the fear of reduced credit ratings, we see that Canada remains in the elite position of having the top credit rating, which sets our country up for success in the future.

In addition, we have also made strategic investments for the future in research and development, science and innovation that will continue to push forward and lead our country into the rest of the century.

Getting into Bill C-38, I will highlight a couple of points that I think are good changes, good adjustments. The first one is a change to the registered disability savings program. This was a program that was brought in in 2008. It was tremendously popular, with more than 55,000 new accounts being opened and having dollars invested. In addition to that, our government has invested hundreds of millions of dollars in the form of grants into the registered disability savings program.

I should just mention that every three years this program is due for renewal and review. In 2011 a review was done and a report was tabled. The changes will be implemented in time. One of the issues that arose with the program is the issue around the disabled person who is actually unable to enter into a contract or is challenged to be competent to enter into a legal contract. This presented an issue.

Many provinces, where the jurisdiction lies for presuming somebody to be competent or not to enter into a contract, brought it into question. Many families were actually having to go the legal route to have a loved one deemed incompetent, which can be expensive and also heart-wrenching for the families.

Some provinces have worked to streamline this process to appoint what they would consider a trusted person, whether it be a spouse, friend, relative, son or daughter. The provinces have taken this initiative to streamline the process for the betterment of the disabled people as well as their family and loved ones.

British Columbia, Saskatchewan, Manitoba and Newfoundland and Labrador have all taken this initiative. I think we should tip our cap to them for doing it. My home province of Ontario has not done it to date, and I would encourage the McGuinty government to work hard to get that done so we can speed up the process to get the money into the accounts of these disabled people and set a better course and path for their future.

Another topic I would like to talk about rings true in the riding I represent, Huron—Bruce, which is likely one of the most beautiful ridings in Canada. There is no doubt about that. It has beautiful agriculture, rolling landscapes and Lake Huron. It is two and a half hours from the north to the south of the riding. It is very beautiful. There are streams, rivers and creeks that we all appreciate and use to kayak, canoe, fish or whatever one likes to do. However, one issue that has continued to rear its head for farmers and farm communities is the issue around municipal drains: building, implementing and cleaning out municipal drains.

We can go back a few years and look at all the different groups that would be involved with either cleaning out a municipal drain or building one. Members will remember that we changed the Navigable Waters Protection Act so that Transport Canada would not be involved as it had been in the past. However, the Department of Fisheries and Oceans would be involved as well as conservation authorities, engineers, contractors, drainage inspectors, quite likely the municipal or country roads officials and on and on. Members can see the litany of people and entities that were involved in either building or cleaning out a drain.

A couple of years ago, our government made adjustments to the Navigable Waters Protection Act so that farmers were no longer required to make a case that their ditch was not a navigable water in which one could take a kayak. That was a positive change that helped farmers. Now it is time to change the Fisheries Act, so we can make adjustments for farmers who are putting in or cleaning out their municipal drains.

This is an important change because when farmers make an investment to buy a piece of land they need to get it drained, if it is not already drained, so they can get their crops in and get the highest possible return on their investment. It is very critical and very important.

Another key point we need to look at in the history of this issue is that about 11 years ago conservation authorities signed agreements with the Department of Fisheries and Oceans to streamline this process. In my riding of Huron—Bruce, the Ausable Bayfield Conservation Authority and the Maitland Valley Conservation Authority signed such agreements. This has been refined and revised through the years to the point now where conservation authorities perform 96% of the functions. It only comes in at the very narrowest of areas that DFO is involved and its biologists are utilized. However, this 4% likely creates 99% of the delays and problems with putting a municipal drain in or even getting it cleaned out.

It should also be noted that in our area of Huron—Bruce, most municipal drains run dry around the end of May or the beginning of June. We do not see much water of any magnitude and certainly no aquatic life, no fish, at any point through this time.

This is a good change that is reducing red tape. I know that the farmers in our area are very happy about it, as well as the engineers. Conservation authorities are happy about it because it is taking out a layer that is very cumbersome to the process. I tip my cap to the Minister of Fisheries and Oceans for making this change and providing support to our farming community.

One last change I would like to talk about has to do with CMHC and the steps we have taken with covered bonds to protect our government and the insurance we provide for people who buy homes and enter into CMHC financing. This change would enable attaching a bond to a security to prevent what we saw in the United States with Fannie Mae and Freddie Mac. It is certainly a timely and well-received change.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I wonder if my colleague has plowed deep down into Bill C-38 and realized the broad, sweeping implications that it has, implications that were never announced and about which there has been no consultation or even debate.

One that concerns me very much is the repeal of the Fair Wages and Hours of Labour Act for the construction industry. It used to be that this particular act maintained some level playing field between the unionized and the non-unionized sectors so that companies would win their jobs based on their merit, productivity, skill and competitiveness.

Now, with the elimination of—

[A hon. member]

Oh, oh!

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, somebody seems to be yelling at me.