Bill C-45 (Historical)

Jobs and Growth Act, 2012

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

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.

Jobs and Growth Act, 2012

[Terence Young, Conservative, Oakville, ON]

Mr. Speaker, the answer is jobs, careers, hope and opportunity. One of the biggest problems we have in society right now is that university grads who come out, many with an ordinary BA, which is a four-year degree and many without academic degrees, simply cannot find a good job. They can find a job at Starbucks and in fast food restaurants. Some in my riding of Oakville have two or three part-time jobs, which drags on for six months, a year and even longer.

In my office in Oakville, I have hired five young university graduates from Oakville to provide them with their first job because the first job is the hardest one to get experience.

The entire process that this bill and everything this government is focused on is about the economy and our young people being able to start a new career and get jobs.

[The Acting Speaker, Conservative, Barry Devolin]

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Saanich—Gulf Islands, The Environment; the hon. member for Nickel Belt, Workplace Safety.

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, it is my pleasure to stand and speak today to Bill C-45, the second omnibus budget implementation act. As with Bill C-38 this past spring, New Democrats oppose Bill C-45 on both content and process. This bill continues on the path set by Bill C-38, which puts more power in the hands of cabinet ministers and guts environmental protections.

As the official opposition critic for science and technology, I will focus my comments on the aspects of the bill concerning my area of focus, especially those concerning the scientific research and experimental development tax credit. However, I will start with a few general comments.

As we have heard in the House today, Bill C-45 is another massive omnibus bill. Once again, the Conservatives are trying to ram legislation through Parliament without allowing Canadians and their MPs to thoroughly examine it. What is disturbing is the PBO has said that the budget will actually cost 43,000 Canadians their jobs, but we hear otherwise from the Conservatives. In fact, this budget actually plans for unemployment to rise from the cuts that are being made to government, especially the scientific and research community. New Democrats oppose budget 2012 and its implementation, unless it is amended to focus on the priorities of Canadians, which is creating good quality and strengthening our health care system.

Turning to science and technology, I have been meeting with scientists, engineers, technologists and members of industry since appointed as the science and technology critic. I have done a lot of face-to-face meetings, I have spoken with people electronically and I have had the opportunity to visit a number of public and private facilities. The scientific community, and I mean this very broadly, not just natural scientists but also social scientists, engineers and technologists, is very concerned, and so am I, about the government's approach to science and technology. I will provide a few details especially as they concern this budget.

We have seen in report after report that one of our main strengths in terms of productivity in our country concerns the world-leading research done at our universities and government institutions, like the National Research Council. Many people may not know this, but almost 3% of the peer-reviewed papers published in Canada are produced by researchers at the National Research Council. This is a good fraction of what is produced worldwide. Peer-reviewed research is produced at universities but also at the NRC.

One of our strengths is our research output, but one of our main weaknesses is that Canadian companies are not investing in R and D at the same rate as companies located elsewhere in the world. This point was hammered home in the Jenkins report that we hear quoted in the House very often. Lack of investment in research and development has led to plummeting productivity levels as compared to the U.S. Our productivity is around 70% of U.S. productivity.

The Conservatives are right to view this is as a problem, but the solution to this problem of declining productivity is mind boggling. The Conservatives are trying to fix productivity rates that are really caused by low levels of private investment by Canadian firms and are planning to attack the part of the innovation supply chain that is performing well. The scientific community working in universities and government research organizations is really punching above its weight internationally. The government is shifting funding from these well-operating parts of our economy over to business, and that is a mistake.

The Conservatives are cutting hundreds of scientists from government rolls, they are closing world-class facilities, one of which I visited just the other day, they are radically changing the funding structures for scientists, both within government and without, and they are muzzling the government scientists who remain.

I have talked to researchers both in industry and outside of industry and in universities. I sat down with a panel of physicists the other day. The physicists said that what was developing in Canada was poisoning the culture, that scientists were afraid of speaking out because they were worried about having their funding cut or, worse, getting fired. This is a really dangerous thing to do. The Conservatives are attacking a scientific culture that has taken almost 100 years to build. For example, the National Research Council came in place in 1916. We were almost going to celebrate a centenary, but now we find this is under attack.

The National Research Council was considered the jewel of the Canadian research crown for many years. It is headed by Nobel Prize winners. It has brought us all kinds of inventions that started as just ideas and made it all the way to the factory floor and onto the shelves of consumers

The Minister of State for Science and Technology has said that he wants to take this venerable and well-respected research institution and turn it into a 1-800 concierge service for industry. Therefore, instead of winning Nobel Prizes, Nobel scientists will now hold the door open for industry and carry its bags. If I were a research scientist looking at where I would take my top level research, going to the National Research Council in its past glory would be great, I would get the funding and atmosphere that I need to work, but becoming a concierge or a bellhop is not really what I would be looking for.

Let us talk about the 124 NRC researchers who received their pink slips this year, 90 of them last week. If we think about the progress of a researcher, they get a BA after four years, a Masters in Science for two years, a PhD, a post-doctorate, to have to go and set up labs. We are talking about 15 to 20 years someone has invested in becoming a researcher. It is a portable skill, but it has to be located at an institution. What concerns me is people at the NRC who have come out of university and set up these labs, when they are given a pink slip, it is not like they go next door and start up another career. It is a major loss of investment. This really needs to be thought through before we go too much further down this line.

This fear of the change in culture has been expressed to me in many letters. The Minister of State for Science and Technology is familiar with this because I am copied on most of the letters he receives. They express fear and really want the government to slow down in terms of how it is hacking away at these various institutions.

I want to change now to a more specific matter, and that is the scientific research and experimental development tax credit. The government proposes to reduce the tax credit rate from 20% to 15% and this will particularly affect large businesses. It will eliminate the eligibility of capital expenses. Although it would save up to $500 million a year by making these changes, it has not made it over to any new program, or not all of it anyway. It is really just straight savings for the government and attacks businesses right where they live in the innovation field. This will hit the manufacturing sector hard and it is likely to drive firms to move their R and D activities to other countries that have better incentives.

Conservatives have done nothing to fix the complexity of the SR&ED tax credit, which I agree needs some adjustment but it is more in the administration of this tax credit rather than throwing the baby out with the bathwater. Instead of reducing the credit for industry, it should be looking at administrative changes instead. The government has done nothing to reduce the complexity and overhead costs of applying for and administering the SR&ED tax credit.

The member for Burlington said earlier today that he was getting positive feedback from industry, but I have had a number of different comments and he should be aware because they came at the industry committee. For example, Declan Hamill, vice-president, Legal Affairs, Hoffman-La Roche Ltd., said when asked about the SR&ED tax credit:

From our perspective there are changes to the SHRED tax credits that have some potential negative impacts on our member companies.

Probably most serious, were the comments from RIM. Morgan Elliott, director of Government Relations for Research in Motion, which makes the Blackberry, said when I asked him directly what this change in the SR&ED tax credit would mean. “It cuts our support by one-third”. Here is the jewel in the private industry crown of technology in Canada that has been struggling lately, seems to be getting back on its feet, and what does the government do? It cuts one-third of its support with these changes.

It is hardly a ringing endorsement for these changes. I submit there are problems with the bill and the government should, at the very least, split out the SR&ED tax credit changes and refer them to the industry committee for further study.

[Dan Harris, NDP, Scarborough Southwest, ON]

Mr. Speaker, like the member, I was also troubled when I heard those comments from RIM at the industry committee.

I want to talk about another aspect of science and technology and Canada's satellite industry. In the first budget of the year we were expecting to see money for the final phase of development of the RADARSAT constellation mission, which is Canada's crown jewel of our satellite program. The money was not there. Now we have part 2 of the budget and the money is still not there.

We have had 31 job cuts at COM DEV, which is a large subcontractor. We have had hundreds of job losses at MacDonald, Dettwiler and Associates. These are scientists and engineers losing their jobs because of the instability created by the government.

Tying into what the member said about the NRC and scientists and all the changes being made, does he have a comment to make about what kind of impact that has on our high tech industries?

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I did have the great pleasure of sitting down with the president of MDA to talk about RADARSAT specifically, and he was beside himself. There are really six phases to this contract. The government has agreed to the first five and cut the money for the final phase of the contract, which would put the satellites in the air over our Arctic, and it is only through satellite technology that we can do surveillance over the Arctic.

It is extremely disappointing that the Conservatives have chosen not to support the final stage of the RADARSAT satellites. I urge them to find a place in the budget to make this project go ahead.

[Alexandrine Latendresse, NDP, Louis-Saint-Laurent, QC]

Mr. Speaker, I would like to thank my colleague for his speech. It is very interesting to hear the point of view of someone who has extensive knowledge of technology.

Having worked in research and development in a corporate setting, I know that the field desperately needs more support. Clearly, that is not what the Conservatives are prepared to offer.

I have a much more general question for the member about the form of today's bill. The Conservatives across the way keep telling us how important it is to do things the way they are because there is no time, because these measures must be taken as quickly as possibly, because they are minor measures and no big deal.

If these measures are so simple and obvious, and if these ideas are so good, then why not have a proper debate about them and hear from real experts? I do not see why we cannot treat each element separately. That would give all of us a better understanding of what is in this bill.

What does my colleague think the Conservatives are afraid of? Why did they introduce an omnibus bill like this?

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I really think this is an abuse of Parliament. The measures in the budget are important for Canadians, whatever we think of them. These really need to be debated.

In their effort to rush through measures through the industry committee, the latter's members seemed to be making a major error with the SR and ED tax credit. That is not just my opinion. The changes have been dismissed by RIM, by pharmaceutical companies, by Genome Canada. They all have great concerns about these changes to the tax credit.

We should just slow down a bit, split this up into a bunch of bills and look at them separately before we make a gigantic mistake.

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I would like to thank my colleague for his speech, which I listened to carefully.

We have started talking about the budget implementation bill. We have gotten used to the Conservatives introducing huge omnibus bills to push through all kinds of legislation. MPs cannot do the work that Canadians elected them to do.

Does my colleague think that this practice is undemocratic?

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I really do not think Parliament was created for us to ask real questions and to get stock answers back. Bills are then forced through without any real debate before Canadians get a chance to look at the details. We should pause and try to respect the institution we are in.

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, I am pleased to have the opportunity to speak about how Bill C-45 will benefit residents of Palliser, Saskatchewan and indeed all of Canada.

At the outset, I am proud to say that Canada is more financially secure than other economies in the world, thanks to the decisive and swift action taken by our government in 2008. Thankfully, Canada has one of the strongest fiscal positions in the world as shown by Fitch, Moody's, and Standard and Poor's ratings renewing Canada's AAA rating.

Since taking office in 2006, we have introduced many popular initiatives, including the tax-free savings account, pension income splitting, a tax credit for textbooks, the deduction for tradesmen's tools, and much more.

Additionally, over the past six years, Canadians have benefited from broad-based tax cuts, 140 tax cuts to be exact. These tax cuts have given families, individuals and businesses the flexibility to make the right choices for their own needs. In fact the average Canadian family now has an additional $3,100 in its pocket, thanks to these tax savings.

Our government will continue on this path of keeping taxes low, reducing red tape and other measures, so that businesses are free to grow. Here I would add that our economy has created nearly 820,000 net new jobs since the end of the recession, with 90% of them full-time.

However, our government realizes that some belt-tightening is required to protect against shocks in the global economy. To this end, under the leadership of our talented Minister of Finance, in March, our government introduced a comprehensive and forward-thinking action plan to create jobs, growth and prosperity over the long term.

Here I would point out that our jobs and growth bill does not raise taxes or cut transfers to seniors or other levels of government for health, education or social services. Our jobs and growth plan will respect the taxpayer dollars of individuals, families, trades people, businesses and seniors. Our jobs and growth plan will benefit today's population without transferring the burden to tomorrow's leaders.

Raising taxes or transferring the burden might be an easy solution that governments may have taken in the past, but we are thinking outside of the box and taking action to benefit all Canadians, not just those of a particular region.

To create our comprehensive and long-range plan, we held consultations with Canadians to seek solutions that would improve efficiency and reduce waste. On my part, I had an excellent discussion with business leaders in my riding this spring, and passed their ideas on to the Minister of Finance.

A cornerstone of our government is respect for taxpayer dollars. To that end, our government is taking landmark action to ensure that the pension plans of members of Parliament, senators and federal public sector workers are sustainable and financially responsible. My office has received significant correspondence calling for reforms to these pensions. I support these measures to bring these pensions in line with those in the private sector.

Next I would like to speak about creating jobs and filling job openings. I will begin by quoting Saskatchewan's finance minister, Ken Krawetz, who stated in regard to our economic action plan:

I'm quite encouraged by the initiatives that seem to be coming forward in the economy and training and employment.

In my view, his words carry a lot of weight since he knows the issues facing Saskatchewan better than anyone else.

Canada not only has a labour shortage but also has people looking for jobs. The shortage in skilled labour is very problematic in my home province, which has low unemployment rates of less than 5%. Indeed, I am pleased to see that Saskatchewan is experiencing strong growth.

To help remedy this disparity, we will increase funding for training, with a special focus on youth and older workers. Our jobs and growth bill has $50 million to help youth gain skills and experience in the workforce through the youth employment strategy. Thanks to this funding, I am pleased that approximately 3,000 young Canadians will be able to fill labour shortages while they get on-the-job experience in high demand fields, such as skilled trade or tourism.

Our jobs and growth act also has $6 million to expand the successful ThirdQuarter project to connect employers with experienced workers over 50 years of age who want to continue using their skills in the workforce. Additionally, we are investing significant funding to improve labour market information, which will ultimately help connect out of work Canadians with available jobs.

Without impacting the Saskatchewan residents and Canadians who are looking for jobs, we are taking action to fill gaps within our workforce. We are investing $150 million to repair and upgrade local infrastructure via the community infrastructure improvement fund. There are rinks, community halls, museums and other organizations that may benefit from this funding in my riding.

As we are all aware, the aging workforce will compound the labour shortage. Meanwhile, the average life expectancy of Canadians is rising. Given that the OAS system is completely funded by the government and not by the working population, I think everyone can agree that this demographic change creates serious challenges.

Our government was elected with a mandate to respond to the taxpayers. To that end, we will work to protect the financial security of tomorrow by gradually raising the age of eligibility for OAS.

Will this change affect seniors? I emphatically say no. Will this change affect those nearing retirement? Again, I emphatically say no. Since changes are necessary for the benefit of future generations, it is fitting that the changes will only affect recipients among future generations.

One of my constituents phrased it very well in writing. He said: “The changes are acceptable, as they will allow the next generation to prepare and thus manage their economies of scale accordingly”. I am proud to say that he further stated that this was good government at its best.

To help people prepare for the future, we will help Canadians saving for retirement through pooled registered pension plans and registered disability savings plans, in addition to the previously announced tax-free savings accounts.

Moving on, Canada's reservists support and rebuild communities in disaster situations here at home, as well as serving as reconnaissance troops in peacekeeping operations. In my home province, members of the Saskatchewan Dragoons have been and continue to be actively involved in United Nations peacekeeping operations in Cyprus, Bosnia, Afghanistan and more. I am also proud to say that the dragoons also helped combat the forest fires in British Columbia in 2003. Economic action plan 2012 will support Canadian reservists in the workforce, by helping to remove the barriers to hiring reservists and off-setting costs when they are called on for full-time duty.

This past Saturday evening while I was at a mess dinner with the local chapter of the Saskatchewan Dragoons, I was proud to be part of a government that supports our reservists.

In economic action plan 2012, our government has presented a plan focused on jobs and growth to chart a course for the long-term financial prosperity of all Canadians. This plan will support individuals, families, communities, tradespeople, seniors and veterans in Palliser and indeed across Canada.

I fully support the jobs and growth act, 2012 and ask all hon. members to join together toward building a stronger Canada and a stronger economy.

I humbly offer my appreciation for the chance to speak about how the implementation of this long-ranging and forward-thinking plan will benefit residents of Palliser, the land of the living skies, as well as all Canadians.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I listened to the member's speech and I could not believe my ears. I had no choice but to rise here and address this.

My colleague talked about lowering taxes for large corporations. That means that workers' contributions to employment insurance will increase by 5¢ in 2013. Furthermore, the limit will increase from $45,000 to $47,000. This means the Conservatives will be taking about $1.3 billion out of Canadians' pockets. A tax increase should not be disguised like that.

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, I thank the hon. member for the question but I am not quite sure what she was asking. It seemed to me that she was saying there was taxation on fringe benefits for workers.

We certainly go on record as supporting full employment and supporting workers. We do not have any problem with that principle.

[The Acting Speaker, Conservative, Barry Devolin]

I would remind hon. members that it is questions and comments. Members sometimes pose questions but other times choose to make a comment instead.

Questions and comments, the hon. member for Westmount—Ville-Marie

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I refer to a comment from my hon. colleague. He said that he could say emphatically that changing the age from 65 to 67 for old age security would definitely not have an effect on seniors.

First of all, we know that the old age security program is sustainable without making changes to it at the moment, as the Auditor General told us. What about those seniors who, at age 65, are collecting old age security and the guaranteed income supplement?

Seniors have to be at a low-income level to collect GIS, which has a $15,000 a year impact. Over a two-year period, that $30,000 is of enormous significance to them. I wonder what the member has to say to those low-income Canadians who would be affected by this change.

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, I am saying that there is time now to plan for the future. That time should be spent with individual people looking at financial responsibility in the future. We are bringing in the changes over a span of time that will give people a chance to put together their own financial world. If we are going to sustain this program, we have to do something to make it realistic, and two years is realistic.