This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.
Jim Flaherty Conservative
This bill has received Royal Assent and is now law.
This is from the published bill. The Library of Parliament often publishes better independent summaries.
Part 1 implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) amends the rules relating to Registered Disability Savings Plans (RDSPs) by
(i) replacing the 10-year repayment rule applying to withdrawals with a proportional repayment rule,
(ii) allowing investment income earned in a Registered Education Savings Plan (RESP) to be transferred on a tax-free basis to the RESP beneficiary’s RDSP,
(iii) extending the period that RDSPs of beneficiaries who cease to qualify for the Disability Tax Credit may remain open in certain circumstances,
(iv) amending the rules relating to maximum and minimum withdrawals, and
(v) amending certain RDSP administrative rules;
(b) includes an employer’s contributions to a group sickness or accident insurance plan in an employee’s income in certain circumstances;
(c) amends the rules applicable to retirement compensation arrangements;
(d) amends the rules applicable to Employees Profit Sharing Plans;
(e) expands the eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of bioenergy equipment;
(f) phases out the Corporate Mineral Exploration and Development Tax Credit;
(g) phases out the Atlantic Investment Tax Credit for activities related to the oil and gas and mining sectors;
(h) provides that qualified property for the purposes of the Atlantic Investment Tax Credit will include certain electricity generation equipment and clean energy generation equipment used primarily in an eligible activity;
(i) amends the Scientific Research and Experimental Development (SR&ED) investment tax credit by
(i) reducing the general SR&ED investment tax credit rate from 20% to 15%,
(ii) reducing the prescribed proxy amount, which taxpayers use to claim SR&ED overhead expenditures, from 65% to 55% of the salaries and wages of employees who are engaged in SR&ED activities,
(iii) removing the profit element from arm’s length third-party contracts for the purpose of the calculation of SR&ED tax credits, and
(iv) removing capital from the base of eligible expenditures for the purpose of the calculation of SR&ED tax incentives;
(j) introduces rules to prevent the avoidance of corporate income tax through the use of partnerships to convert income gains into capital gains;
(k) clarifies that transfer pricing secondary adjustments are treated as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act;
(l) amends the thin capitalization rules by
(i) reducing the debt-to-equity ratio from 2:1 to 1.5:1,
(ii) extending the scope of the thin capitalization rules to debts of partnerships of which a Canadian-resident corporation is a member,
(iii) treating disallowed interest expense under the thin capitalization rules as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act, and
(iv) preventing double taxation in certain circumstances when a Canadian resident corporation borrows money from its controlled foreign affiliate;
(m) imposes, in certain circumstances, withholding tax under Part XIII of the Income Tax Act when a foreign-based multinational corporation transfers a foreign affiliate to its Canadian subsidiary, while preserving the ability of the Canadian subsidiary to undertake expansion of its Canadian business; and
(n) phases out the Overseas Employment Tax Credit.
Part 1 also implements other selected income tax measures. Most notably, it introduces tax rules to accommodate Pooled Registered Pension Plans and provides that income received from a retirement compensation arrangement is eligible for pension income splitting in certain circumstances.
Part 2 amends the Excise Tax Act and the Jobs and Economic Growth Act to implement rules applicable to the financial services sector in respect of the goods and services tax and harmonized sales tax (GST/HST). They include rules that allow certain financial institutions to obtain pre-approval from the Minister of National Revenue of methods used to determine their liability in respect of the provincial component of the HST, that require certain financial institutions to have fiscal years that are calendar years, that require group registration of financial institutions in certain cases and that provide for changes to a rebate of the provincial component of the HST to certain financial institutions that render services to clients that are outside the HST provinces. This Part also confirms the authority under which certain GST/HST regulations relating to financial institutions are made.
Part 3 amends the Federal-Provincial Fiscal Arrangements Act to provide the legislative authority to share with provinces and territories taxes in respect of specified investment flow-through (SIFT) entities — trusts or partnerships — under section 122.1 and Part IX.1 of the Income Tax Act, consistent with the federal government’s proposal on the introduction of those taxes. It also provides the legislative authority to share with provinces and territories the tax on excess EPSP amounts imposed under Part XI.4 of the Income Tax Act, consistent with the measures proposed in the March 29, 2012 budget. It also allows the Minister of Finance to request from the Minister of National Revenue information that is necessary for the administration of the sharing of taxes with the provinces and territories.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Jobs and Economic Growth Act as a result of amendments introduced in the Jobs, Growth and Long-term Prosperity Act to allow certain public sector investment pools to directly invest in a federally regulated financial institution.
Division 2 of Part 4 amends the Canada Shipping Act, 2001 to permit the incorporation by reference into regulations of all Canadian modifications to an international convention or industry standard that are also incorporated by reference into the regulations, by means of a mechanism similar to that used by many other maritime nations. It also provides for third parties acting on the Minister of Transport’s behalf to set fees for certain services that they provide in accordance with an agreement with that Minister.
Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, provide for a limited, automatic stay in respect of certain eligible financial contracts when a bridge institution is established. It also amends the Payment Clearing and Settlement Act to facilitate central clearing of standardized over-the-counter derivatives.
Division 4 of Part 4 amends the Fisheries Act to amend the prohibition against obstructing the passage of fish and to provide that certain amounts are to be paid into the Environmental Damages Fund. It also amends the Jobs, Growth and Long-term Prosperity Act to amend the definition of Aboriginal fishery and another prohibition relating to the passage of fish. Finally, it provides transitional provisions relating to authorizations issued under the Fisheries Act before certain amendments to that Act come into force.
Division 5 of Part 4 enacts the Bridge To Strengthen Trade Act, which excludes the application of certain Acts to the construction of a bridge that spans the Detroit River and other works and to their initial operator. That Act also establishes ancillary measures. It also amends the International Bridges and Tunnels Act.
Division 6 of Part 4 amends Schedule I to the Bretton Woods and Related Agreements Act to reflect changes made to the Articles of Agreement of the International Monetary Fund as a result of the 2010 Quota and Governance Reforms. The amendments pertain to the rules and regulations of the Fund’s Executive Board and complete the updating of that Act to reflect those reforms.
Division 7 of Part 4 amends the Canada Pension Plan to implement the results of the 2010-12 triennial review, most notably, to clarify that contributions for certain benefits must be made during the contributory period, to clarify how certain deductions are to be determined for the purpose of calculating average monthly pensionable earnings, to determine the minimum qualifying period for certain late applicants for a disability pension and to enhance the authority of the Review Tribunal and the Pension Appeals Board. It also amends the Department of Human Resources and Skills Development Act to enhance the authority of the Social Security Tribunal.
Division 8 of Part 4 amends the Indian Act to modify the voting and approval procedures in relation to proposed land designations.
Division 9 of Part 4 amends the Judges Act to implement the Government of Canada’s response to the report of the fourth Judicial Compensation and Benefits Commission regarding salary and benefits for federally appointed judges. It also amends that Act to shorten the period in which the Government of Canada must respond to a report of the Commission.
Division 10 of Part 4 amends the Canada Labour Code to
(a) simplify the calculation of holiday pay;
(b) set out the timelines for making certain complaints under Part III of that Act and the circumstances in which an inspector may suspend or reject such complaints;
(c) set limits on the period that may be covered by payment orders; and
(d) provide for a review mechanism for payment orders and notices of unfounded complaint.
Division 11 of Part 4 amends the Merchant Seamen Compensation Act to transfer the powers and duties of the Merchant Seamen Compensation Board to the Minister of Labour and to repeal provisions that are related to the Board. It also makes consequential amendments to other Acts.
Division 12 of Part 4 amends the Customs Act to strengthen and streamline procedures related to arrivals in Canada, to clarify the obligations of owners or operators of international transport installations to maintain port of entry facilities and to allow the Minister of Public Safety and Emergency Preparedness to require prescribed information about any person who is or is expected to be on board a conveyance.
Division 13 of Part 4 amends the Hazardous Materials Information Review Act to transfer the powers and functions of the Hazardous Materials Information Review Commission to the Minister of Health and to repeal provisions of that Act that are related to the Commission. It also makes consequential amendments to other Acts.
Division 14 of Part 4 amends the Agreement on Internal Trade Implementation Act to reflect changes made to Chapter 17 of the Agreement on Internal Trade. It provides primarily for the enforceability of orders to pay tariff costs and monetary penalties made under Chapter 17. It also repeals subsection 28(3) of the Crown Liability and Proceedings Act.
Division 15 of Part 4 amends the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small businesses. An employer whose premiums were $10,000 or less in 2011 will be refunded the increase in 2012 premiums over those paid in 2011, to a maximum of $1,000.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide for an electronic travel authorization and to provide that the User Fees Act does not apply to a fee for the provision of services in relation to an application for an electronic travel authorization.
Division 17 of Part 4 amends the Canada Mortgage and Housing Corporation Act to remove the age limit for persons from outside the federal public administration being appointed or continuing as President or as a director of the Corporation.
Division 18 of Part 4 amends the Navigable Waters Protection Act to limit that Act’s application to works in certain navigable waters that are set out in its schedule. It also amends that Act so that it can be deemed to apply to certain works in other navigable waters, with the approval of the Minister of Transport. In particular, it amends that Act to provide for an assessment process for certain works and to provide that works that are assessed as likely to substantially interfere with navigation require the Minister’s approval. It also amends that Act to provide for administrative monetary penalties and additional offences. Finally, it makes consequential and related amendments to other Acts.
Division 19 of Part 4 amends the Canada Grain Act to
(a) combine terminal elevators and transfer elevators into a single class of elevators called terminal elevators;
(b) replace the requirement that the operator of a licensed terminal elevator receiving grain cause that grain to be officially weighed and officially inspected by a requirement that the operator either weigh and inspect that grain or cause that grain to be weighed and inspected by a third party;
(c) provide for recourse if an operator does not weigh or inspect the grain, or cause it to be weighed or inspected;
(d) repeal the grain appeal tribunals;
(e) repeal the requirement for weigh-overs; and
(f) provide the Canadian Grain Commission with the power to make regulations or orders with respect to weighing and inspecting grain and the security that is to be obtained and maintained by licensees.
It also amends An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to Repeal the Grain Futures Act as well as other Acts, and includes transitional provisions.
Division 20 of Part 4 amends the International Interests in Mobile Equipment (aircraft equipment) Act and other Acts to modify the manner in which certain international obligations are implemented.
Division 21 of Part 4 makes technical amendments to the Canadian Environmental Assessment Act, 2012 and amends one of its transitional provisions to make that Act applicable to designated projects, as defined in that Act, for which an environmental assessment would have been required under the former Act.
Division 22 of Part 4 provides for the temporary suspension of the Canada Employment Insurance Financing Board Act and the dissolution of the Canada Employment Insurance Financing Board. Consequently, it enacts an interim Employment Insurance premium rate-setting regime under the Employment Insurance Act and makes amendments to the Canada Employment Insurance Financing Board Act, the Department of Human Resources and Skills Development Act, the Jobs, Growth and Long-term Prosperity Act and Schedule III to the Financial Administration Act.
Division 23 of Part 4 amends the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act and makes consequential amendments to other Acts.
The Canadian Forces Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
The Public Service Superannuation Act is amended to provide that contributors pay no more than 50% of the current service cost of the pension plan. In addition, the pensionable age is raised from 60 to 65 in relation to persons who become contributors on or after January 1, 2013.
The Royal Canadian Mounted Police Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
Division 24 of Part 4 amends the Canada Revenue Agency Act to make section 112 of the Public Service Labour Relations Act applicable to the Canada Revenue Agency. That section makes entering into a collective agreement subject to the Governor in Council’s approval. The Division also amends the Canada Revenue Agency Act to require that the Agency have its negotiating mandate approved by the President of the Treasury Board and to require that it consult the President of the Treasury Board before determining certain other terms and conditions of employment for its employees.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
The Acting Speaker Conservative Bruce Stanton
Order, order. The hon. Parliamentary Secretary to the Minister of Natural Resources has the floor. I am sure if members have other conversations they would like to have they might want to take those back to the lobby.
The hon. parliamentary secretary.
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, I understand the member for Malpeque's frustration. It has probably been a terrible thing to watch what has happened to his party over the years.
However, the Canadian people have rendered their judgment. They have shown great wisdom in what they have done over the years, electorally. The Liberals deserve to sit where they sit right now because of what they have done to Canada over the years and the way they have treated Canadians.
We are happy to be here. We are very grateful for the opportunity from Canadians to be able to serve them. As I was mentioning, in 2006 we came to power as government; in 2008 our minority grew; and in 2011 we finally had the majority government that Canadians wanted to give us, and so we finally got an opportunity to really set Canadians on a defined path to prosperity. That has certainly worked.
We have had some of the thoughest times over the last four years that the world has seen in decades, and Canada has been able to weather those times very well.
In fact, when we look at what the World Economic Forum says about Canada, we see it talks about, for example, our banking system being the soundest in the world for the fourth consecutive year, during a downturn. Certainly our banking system has been one of those rocks of stability in our country that has been able to help us carry Canada through this time.
However, Forbes magazine does not just look at the banking system. It also took a look at the world of business in Canada. It said this is the number one place in the world for businesses to come, to grow and to create jobs.
In a downturn, that is a great honour. I think it is a great tribute, obviously, to the government that has been in power. The government has made decisions that set up a climate that makes it possible for businesses to do really well. We know we have one of the strongest positions in the world, in the G7 in particular, and our rock-solid AAA rating has been proved by multiple agencies.
I think one of the things that I have been really excited to see is the ambitious trade agenda we have had as a government, because we sat for a long time with the Liberals running this country. I notice they are deadly silent on this issue, because they did nothing on trade.
Since we have taken over, we have been able to initiate trade agreements around the world, and we are able to see those trade agreements are now beginning to bear fruit. Certainly they are impacting Canada's relationships around the world in a positive way. We have, through them, not only been able to strengthen our economic and security links with the United States, but we are seeking new agreements with Europe, India, and many others, and those agreements are finally starting to bear fruit.
I should note that the Minister of Agriculture and Agri-Food, in particular, has done a great job going around the world. We had trouble with BSE. We were unable to get our markets open. The Liberals could not open those markets. They were incapable of doing that. Our present Minister of Agriculture and Agri-Food has gone around the world and opened Canadian markets for beef after the BSE crisis. The present Minister of International Trade has shown leadership on this file and, finally, we are beginning to see great changes in the trade file.
We know that deficit reduction is critical. For those of us who do not believe we should be funding today's programs off our children's and grandchildren's backs, we are getting back on track to balance the budget over the medium term.
In the economic action plan 2009, we made a commitment that we were going to return to balanced budgets, and we have done that to a great extent. We cut the deficit in half in the last two years, and we continue to move in that direction. We watched as Australia announced it is going to be balancing its budget, and we look forward to being the second developed country that can do that.
We need to do that. My constituents tell me that is an important thing. They want this government to balance the budget and they want us to move ahead with jobs and prosperity that are a result of that.
I should point out that Canadians should not only be thankful—well, they are thankful that the Liberals are no longer in power. However, they also need to be aware of how thankful they should be that the NDP is nowhere near power, as well. I think all we need to do is actually take a look at the NDP's programs that its members promote and we can probably see why it is a good idea that they are not on this side of the House.
This morning in committee, one of our committee members very enthusiastically endorsed once again the carbon tax plan they have. He went on at length about how this should be done sooner, not later; it needs to be done as quickly as possible. As Canadians are now becoming aware, that is a commitment by the NDP to $21 billion in taxation that average Canadians would have to take out of their pockets, which would drive up the price of virtually everything.
However, it is not just a carbon tax. My colleagues across the way think it is hilarious when we mention $21 billion because they think that every taxpayer's money in this country is theirs, and it is not.
I understand why they would think that. We have a quote from the Broadbent Institute report. They think that in order to tie people together, we need to make it compulsory for them to participate. This is the way they would like to do that. The report says:
Taxes are the hinge that links citizens to one another and to the common good.
I think that pretty well sums up the NDP position as much as it can be. I know there is an older definition of socialism, which is:
Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy.
We certainly see those three things in the NDP's taxation policy.
I just want to point out that the Broadbent Institute is straight up about what the NDP would do to Canadians if it got the opportunity. It talks about implementing an inheritance tax. The NDP think that would be a good idea. It would like to put a tax on the inheritance of wealth, which passes on morally unjustifiable class privilege. I am not sure what that is, but I would imagine that means they are going to take money away from people once they die.
The NDP want to have a financial transaction tax, so I suspect the average Canadian would believe that means the NDP wants to tax every financial transaction that takes place in this country. When people are trying to do their business, the NDP will step in, for every single one of those transactions, and gladly tax them.
The NDP says it wants a carbon tax. That is not anything we have not known. It does not want to talk about it. The NDP not only talks about a carbon tax but higher taxes on natural resources. We know the NDP does not want to develop natural resources, but it does not seem to have any understanding about the fact that as taxes are raised on resource development and on corporations, corporations will not invest here.
That is what the NDP seems to want. It does not seem to like corporate investment. We know it does not like trade. The reality is that if the NDP is ever allowed to bring in something such as a carbon tax or higher taxes on natural resources, we can start talking about the Canadian economy declining instead of prospering.
That is not all it said. The NDP said:
—we also need to consider broad-based taxes....
What would that be? I assume it wants to tax a whole lot of other things and wants to do it to pay for more of its social spending. The NDP said it needs to rely on a number of tax bases, so I think we can assume that means new taxes in all sorts of areas because it wants to put as many legs under that taxation stool as it possibly can. It does not matter how much it costs Canadians.
Then the NDP talks about how it needs to have an increase in social spending, which we know is another code word for taxing people even more than in the past.
If we take a look at where the NDP have been in power, what have been the results of that? We can see in B.C. and Ontario that the economies have pretty much collapsed under the NDP rule. However, I think the bigger example would be in my own province of Saskatchewan. The NDP ruled there for far too long, and while it did we saw a complete failure to develop our economy. We ended up with a third of the population of our neighbour when we actually had more of a population than Alberta in 1930. We found our economy probably 30 or 40 years behind our neighbour, just because we had an NDP government that refused, time and time again, to develop the economy.
Canadians cannot afford that. Saskatchewan could not afford it. We are only, in the last five years, beginning to come out of that and are beginning to hold our own and show what we actually have in Saskatchewan.
This economic action plan that we have is good. It is certainly better than anything that we see coming from the other side. This is the kind of action plan that will create jobs. It will ensure prosperity and long-term growth in our economy. Canadians should be excited about it.
Libby Davies NDP Vancouver East, BC
Mr. Speaker, I would like to correct the member on one point. We actually love trade on this side of the House, and we are very much looking forward to trading the current government for an NDP government, so just watch out.
I would like to ask the member a question. We have heard repeatedly that this budget is about the economy, providing jobs and helping Canadians. Of course there are so many cuts and so many things are being slashed that the list is too long to go into here.
I do want to focus on one point. In most Canadian cities, even smaller communities, there is a crisis in affordable housing yet there is nothing in this budget that will address the affordable housing crisis in this country. I would like to ask the member why it is that his government has failed so miserably to address this fundamental human right and human need for Canadians?
We have something like two million Canadians who are homeless. Millions of Canadians are in what we call core need housing, which means they are spending much too much money from their income on housing or they cannot find affordable housing. I wonder if the member could address why his government has failed on that point?
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, nothing could be further from the truth. I could go through a whole list of the things that we are doing, particularly for those who need help.
The reality is that the NDP do not understand that what people actually want is a job. People want to be able to make their own money. They want to be proud of themselves and their families. They want to move ahead in life. The NDP would sooner have people dependent on the government and that is why those members insist that they need to tax people until they are pretty much under the thumb of government. Then they argue that they should set up the programs and people would have to put up with it. On our side of the House we believe that people want jobs. They want to be able to prosper. They want to move ahead.
When we talk about the level of taxation that the NDP is talking about, people will not have money to put into the kinds of things that the member thinks are important.
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Mr. Speaker, the member talks about no taxes, low taxes, that sort of thing. About a year and a half ago the Conservatives imposed a fee at the airport for travellers. I am wondering why in these such tough economic times, they would impose a traveller's tax.
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, I will talk about some of the things that we have brought in through the economic action plan.
The member talked about something we did a couple of years ago. I would like to talk about the present.
We are doing things like extending for one year the job-creating hiring credit for small business. That is an important thing. Small businesses have told us they need this hiring credit in order to continue to hire during this tough time. It benefited nearly 534,000 employers last year. Why does he not bring that up?
We have been promoting interprovincial trade and making sure that trade is moving across this country. Why does he not bring that up and say we have done a good job on that?
We are facilitating cross-border travel. We have done that. He does not bring that up and say the government has done a good job on that.
We have reduced red tape.
We are reducing fees for Canada's grain farmers in this budget. He should stand up and say that is a good thing. He should say that he likes to see us make it simpler and easier for farmers to do their jobs.
I could talk about other things as well but I will stop there.
Earl Dreeshen Conservative Red Deer, AB
Mr. Speaker, at one time former premier Ernest Manning was asked what the magic was that helped to create the wealth in Alberta. He said that it was the election of NDP governments in Saskatchewan, which drove all of the capital from there over to Alberta.
I wonder if the member could speak to some of the new things that are here because of the budget and the assistance that his province is gaining from that.
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, it just about brings tears to my eyes to hear that. The reality is that was a true statement. We had folks like Tommy Douglas, who refused to develop our resources. He said they were going to be left in the ground. Those resources could have been developed and we could have had a strong economy. We could have done a lot of the things that members across the way would like to see happen in our province. We left it and we let it sit there.
When private companies started to develop, such as the potash industry for example, the radical Blakeney government nationalized it and drove it into the ground until it had to be sold to the private sector. The private sector has redeveloped it and now it is a flagship in our economy. We have seen numerous examples of that. We saw that in Alberta. Over the last few years our province has finally freed itself from that kind of thinking.
Brad Butt Conservative Mississauga—Streetsville, ON
Mr. Speaker, I would like to thank my good friend, the hon. member for Cypress Hills—Grasslands for sharing his time with me today.
I am thankful for the opportunity to rise in the House today and speak to Bill C-45, the jobs and growth act, 2012. Since being elected to this place I have spoken to every budget bill presented. The budget very much sets the tone for Canada's economic performance, for strong job creation and continued growth.
My riding of Mississauga—Streetsville is an excellent example of a community where both residents and businesses can flourish. We have a very strong mix of residential and commercial development. We encourage people to live and work in our local area. We have a very strong Streetsville business improvement area, adding to the character and heritage of an historic village setting. It is a community that comes together and supports one another. It is very much a shining example to all of Canada.
However, none of this happens if we do not have a strong economy, if we do not have growth and if we are not helping to create jobs. Therefore, I am pleased to speak in the House today of my support for Bill C-45, which lays out a strong plan for Canada's and my community's future.
Our government is on the right track for the Canadian economy and Canadian families, with over 820,000 net new jobs created since July 2009. However, we also know that the global economy remains fragile, especially in Europe and the United States, our largest and most important trading partners. That is why our government is working hard to support the economy with positive pro-growth measures in economic action plan 2012, such as the job-creating hiring tax credit for small business.
I am delighted to see that Bill C-45 extends this credit of up to $1,000 against the small employer increase in its 2012 EI premiums over those paid in 2011. The credit will help approximately 536,000 employers, many of them in Mississauga—Streetsville, whose total EI premiums were at or below $10,000 in 2011. Small and medium-size enterprises are the real job creators in our economy. It is our job to ensure that they can create and sustain jobs for the future.
I am very often amazed when I talk to business people in Mississauga—Streetsville about how many are engaged in international trade. Our government's ambitious pro-trade policies are helping these businesses maintain or improve market access in burgeoning economies around the world. We must continue to open doors so that our businesses can sell their goods.
Unlike the opposition, we are embracing new trade agreements that will benefit thousands of businesses all across Canada. Bill C-45 continues the important work of breaking down interprovincial trade barriers that often make it difficult for businesses to do business right here at home.
Bill C-45 also proposes expanding tax relief for investment in clean energy generation equipment. We are taking a responsible approach to continued economic growth, while balancing that with improved environmental protections. As Canada's energy needs continue to grow, we must play our role in encouraging new green energy technology because it is a win-win proposition.
Unlike the NDP, we would not impose a job-killing carbon tax that would tax everything we consume, everything we need and everything we do. Instead, we will continue to lower the tax burden for all Canadians.
The bill would also make important changes to registered disability savings plans. How we treat the most vulnerable in our society is paramount to Canada showing how caring and compassionate we are. To give families greater flexibility, we propose that parents who save in registered education savings plans for children with disabilities allowed to roll over investment income earned in the RESP to the RDSP if the plans share the same beneficiary. The bill would also make other administrative changes to ensure even fairer benefits to those who qualify.
The scientific research and experimental development, or SR&ED program, has been a wildly successful project of our government. The budget bill would make further improvements to the program to ensure its fairness and that benefits would continue to accrue.
We continue to very much look forward to ensuring that Canadians have important vehicles to save for retirement. I am pleased that Bill C-45 would amend the Income Tax Act to accommodate the new pooled registered pension plans we announced earlier this year.
The bill would also make important and timely update changes to the Canada pension plan, which were unanimously agreed to by all federal, provincial and territorial finance ministers.
As we are fortunate to have a strong financial services sector, we need to ensure it remains so. The bill would help to preserve the stability and strength of Canada's financial sector. Amendments to the Payment Clearing and Settlement Act are proposed to ensure that derivatives clearing activities are treated in a similar fashion as the clearing of cash securities under the PCSA.
The bill would also improve the Canada Deposit Insurance Corporation to reinforce Canada's financial stability framework. The proposed amendments will enhance the CDIC's ability to take on and preserve critical functions of a failed CDIC member through a bridge institution and provide for a limited automatic stay on the ability of certain counterparts of a failed member to determine certain eligible financial contracts. A stronger CDIC is a very important part of a strong financial system in Canada.
The budget sets an important tone on pensions in the broader sector to ensure that employees and employers equally contribute to their pension plans, just as MPs will now do through the bill passed unanimously last week in the House.
It is a great honour to serve as a member of Parliament. Each and every day we have the responsibility to act in the best interests of our neighbours. When I campaigned door to door, and when I continue to talk to residents in my community when at home, I pledged at that time, and continue to pledge, that our number one priority is jobs and economic growth. I promised to stay focused on this and to support measures that would attain this goal.
Therefore, today I am pleased to indicate to the House and the people back home that I support Bill C-45 and its obsession with jobs and growth. Unlike the other parties in the House, we have a strong economic action plan for a better and brighter future for all Canadians.
These bills are very important in ensuring that Canada continues to move in the right direction. We see the uncertainty in the world. We see the challenges other countries are having. We must keep our foot to the pedal and keep moving to ensure that Canada remains strong at a time when there continue to be difficulties around the world.
I am delighted to say that I will be supporting Bill C-45 and onward and upward to continuing to build Canada's great economy.
Élaine Michaud NDP Portneuf—Jacques-Cartier, QC
Mr. Speaker, I heard the member talk about the great honour of being a member of Parliament. He does put some importance on the role we have and how important it is for us to be able to do our jobs. However, Bill C-45 does not allow us to do that because the Conservatives are not willing to accept any amendments. We heard that from the member for Saint Boniface earlier and I have heard similar comments from other members as well.
Would the member be willing to work with the opposition and accept amendments that we propose or does he share his government's disdain for transparency and democratic principles?
Brad Butt Conservative Mississauga—Streetsville, ON
Mr. Speaker, I do not quite share the same level of doom and gloom as the member opposite.
From what I have been informed, there is a commitment that sections of the bill will go to eight or nine standing committees, where there will be witnesses, hearings, debate and discussion. That is why we are all elected to this place.
As the same time, this is a government budget bill. We are the government. We were elected to be the Government of Canada and because of that we have a leadership responsibility. Our responsibility is to present a sound economic plan for Canadians and allow the House to debate it. However, at the end of the day, the way British parliamentary democracy works, if the majority of the members of the House of Commons vote in favour of a measure, it passes.
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Mr. Speaker, by way of illustration, today I spoke to a constituent of mine who had great concerns about the employment insurance changes.
The Conservatives talk about an action plan, the creation of new jobs and the furthering of work. They want to make EI changes so people will have a chance to go from part-time to full-time work. However, the problem with the changes they have made is the gentleman I spoke to will work one day and get $27 less on his cheque. If he works two days, he will get even less than that. He has to turn this down because it is just not worth it for him as he will get less money as a result.
Now the Conservatives have eliminated the extra five weeks for seasonal workers, which sees them to that period where they can get to that next job.
How does the member feel that this is some kind of action plan worth voting for?
Brad Butt Conservative Mississauga—Streetsville, ON
Mr. Speaker, I believe the member opposite is referring to the working while on claim program.
It is important to remind the House that it is a pilot program. Pilot programs are brought in and are assessed on how they work. Is it a good program? Is it helping out more people?
There is no doubt that the working while on claim pilot is helping more people than it is not. However, the minister announced a couple of weeks ago that she would be performing a review of the program to ensure that we did not have situations where people were taking work and being penalized for it. The goal is to get more Canadians direct work experience while they are on an EI claim.
I want to talk about the really good changes to EI, which we are now debating at the human resources committee, and that is to provide parents who have critically ill, missing or murdered children compassionate benefits under EI. It will benefit thousands of families in the country. I hope we can count on the opposition to rapidly support that bill and get it into law.
Jeff Watson Conservative Essex, ON
Mr. Speaker, I appreciate the obsession of my colleague for Mississauga—Streetsville with economic growth and prosperity and how Bill C-45 contains the bridge to strengthen trade act among its important provisions for moving the economy forward.
This is not only a huge construction job for our region, promising thousands of construction jobs, but it will expand our trade capacity. It is the number one infrastructure priority of the government to have a new bridge between Windsor and Detroit.
Could the member comment on how that is a critical aspect? Also, how could the NDP be opposed to that?
Brad Butt Conservative Mississauga—Streetsville, ON
Mr. Speaker, the announcement of a new bridge from Windsor to Detroit is very exciting. The city of Mississauga is actually one of the trucking capitals of Canada. We have more trucking firms and transportation firms in Mississauga than perhaps any other part of the country. This is a huge benefit to trucking firms located in the city of Mississauga which will move goods back and forth across that new bridge all the time. It will create thousands of new jobs. It is great for the economy and great for the environment because the trucks will move back and forth quicker. Those folks are against it.