Economic Action Plan 2013 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it
(a) allows certain adoption-related expenses incurred before a child’s adoption file is opened to be eligible for the Adoption Expense Tax Credit;
(b) introduces an additional credit for first-time claimants of the Charitable Donations Tax Credit;
(c) makes expenses for the use of safety deposit boxes non-deductible;
(d) adjusts the Dividend Tax Credit and gross-up factor applicable in respect of dividends other than eligible dividends;
(e) allows collection action for 50% of taxes, interest and penalties in dispute in respect of a tax shelter that involves a charitable donation;
(f) extends, for one year, the Mineral Exploration Tax Credit for flow-through share investors;
(g) extends, for two years, the temporary accelerated capital cost allowance for eligible manufacturing and processing machinery and equipment;
(h) clarifies that the income tax reserve for future services is not available in respect of reclamation obligations;
(i) phases out the additional deduction available to credit unions over five years;
(j) amends rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons; and
(k) repeals the rules relating to international banking centres.
Part 1 also implements other income tax measures and tax-related measures. Most notably, it
(a) amends rules relating to caseload management of the Tax Court of Canada;
(b) streamlines the process for approving tax relief for Canadian Forces members and police officers;
(c) addresses a technical issue in relation to the temporary measure that allows certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract; and
(d) simplifies the determination of the Canadian-source income of non-resident pilots employed by Canadian airlines.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by
(a) reducing the compliance burden for employers under the GST/HST pension plan rules;
(b) providing the Minister of National Revenue the authority to withhold GST/HST refunds claimed by a business where the business has failed to provide certain GST/HST registration information;
(c) expanding the GST/HST exemption for publicly funded homemaker services to include personal care services provided to individuals who require such assistance at home;
(d) clarifying that reports, examinations and other services that are supplied for a non-health-care-related purpose do not qualify for the GST/HST exemption for basic health care services; and
(e) ending the current GST/HST point-of-sale relief for the Governor General.
Part 2 also amends the Excise Tax Act and Excise Act, 2001 to modify the rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons.
In addition, Part 2 amends the Excise Act, 2001 to ensure that the excise duty rate applicable to manufactured tobacco other than cigarettes and tobacco sticks is consistent with that applicable to other tobacco products.
Part 3 implements various measures, including by enacting and amending several Acts.
Division 1 of Part 3 amends the Customs Tariff to extend for ten years, until December 31, 2024, provisions relating to Canada’s preferential tariff treatments for developing and least-developed countries. Also, Division 1 reduces the rate of duty under tariff treatments in respect of a number of items relating to baby clothing and certain sports and athletic equipment imported into Canada on or after April 1, 2013.
Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to remove some residency requirements to provide flexibility for financial institutions to efficiently structure the committees of their boards of directors.
Division 3 of Part 3 amends the Federal-Provincial Fiscal Arrangements Act to renew the equalization and territorial formula financing programs until March 31, 2019 and to implement total transfer protection for the 2013-2014 fiscal year. That Act is also amended to clarify the time of calculation of the growth rate of the Canada Health Transfer for each fiscal year beginning after March 31, 2017.
Division 4 of Part 3 authorizes payments to be made out of the Consolidated Revenue Fund to certain entities or for certain purposes.
Division 5 of Part 3 amends the Canadian Securities Regulation Regime Transition Office Act to remove the statutory dissolution date of the Canadian Securities Regulation Regime Transition Office and to provide authority for the Governor in Council, on the Minister of Finance’s recommendation, to set another date for the dissolution of that Office.
Division 6 of Part 3 amends the Investment Canada Act to clarify how proposed investments in Canada by foreign state-owned enterprises and WTO investors will be assessed and to allow for the extension, when necessary, of timelines associated with national security reviews.
Division 7 of Part 3 amends the Canada Pension Plan to ensure that the Canada Revenue Agency can accurately identify, calculate and refund overpayments made to the Canada Pension Plan and the Quebec Pension Plan in a particular year by contributors who live outside Quebec.
Division 8 of Part 3 amends the Pension Act and the War Veterans Allowance Act to ensure that veterans’ disability benefits are no longer deducted when calculating war veterans allowance.
Division 9 of Part 3 amends the Immigration and Refugee Protection Act to authorize the revocation of temporary foreign worker permits, the revocation and suspension of opinions provided by the Department of Human Resources and Skills Development with respect to an application for a work permit and the refusal to process requests for such opinions. It authorizes fees to be paid for rights and privileges conferred by means of a work permit and exempts, from the application of the User Fees Act, those fees as well as fees for the provision of services in relation to the processing of applications for a temporary resident visa, work permit, study permit or extension of an authorization to remain in Canada as a temporary resident or in relation to requests for an opinion with respect to an application for a work permit.
It also provides that decisions made by the Refugee Protection Division under the Immigration and Refugee Protection Act in respect of claims for refugee protection that were referred to that Division during a specified period are not subject to appeal to the Refugee Appeal Division if they take effect after a certain date.
Division 10 of Part 3 amends the Citizenship Act to expand the Governor in Council’s authority to make regulations respecting fees for services provided in the administration of that Act and cases in which those fees may be waived. It also exempts, from the application of the User Fees Act, fees for services provided in the administration of the Citizenship Act.
Division 11 of Part 3 amends the Nuclear Safety and Control Act to authorize the Canadian Nuclear Safety Commission to spend for its purposes the revenue it receives from the fees it charges for licences.
Division 12 of Part 3 enacts the Department of Foreign Affairs, Trade and Development Act, sets out the powers, duties and functions of the Minister of Foreign Affairs, the Minister for International Trade and the Minister for International Development and provides for the amalgamation of the Department of Foreign Affairs and International Trade and the Canadian International Development Agency.
Division 13 of Part 3 authorizes the taking of measures with respect to the reorganization and divestiture of all or any part of Ridley Terminals Inc.
Division 14 of Part 3 amends the National Capital Act and the Department of Canadian Heritage Act to transfer certain powers, duties and functions to the Minister of Canadian Heritage from the National Capital Commission. It also makes consequential amendments to the National Holocaust Monument Act to change the Minister responsible for the construction of the monument to the Minister of Canadian Heritage from the Minister responsible for the National Capital Act.
Division 15 of Part 3 amends the Salaries Act to add ministerial positions for regional development responsibilities for northern Canada, and northern and southern Ontario. It also amends the Salaries Act to replace a reference to the Solicitor General of Canada with a reference to the Minister of Public Safety and Emergency Preparedness. It also makes an amendment to the Parliament of Canada Act to provide that the maximum number of Parliamentary Secretaries who may be appointed is equal to the number of ministers for whom salaries are provided in the Salaries Act.
Division 16 of Part 3 amends the Department of Public Works and Government Services Act to remove the requirement for the Minister of Public Works and Government Services to obtain a request from a government, body or person in Canada or elsewhere in order for the Minister to do certain things for or on their behalf. It also amends that Act to specify that the Governor in Council’s approval relating to those things may be given on a general or a specific basis.
Division 17 of Part 3 amends the Financial Administration Act to give the Governor in Council the authority to direct a Crown corporation to have its negotiating mandate approved by the Treasury Board for the purpose of the Crown corporation entering into a collective agreement with a bargaining agent. It also gives the Treasury Board the authority to require that an employee under the jurisdiction of the Secretary of the Treasury Board observe the collective bargaining between the Crown corporation and the bargaining agent. It requires that a Crown corporation that is directed to have its negotiating mandate approved obtain the Treasury Board’s approval before entering into a collective agreement. It also gives the Governor in Council the authority to direct a Crown corporation to obtain the Treasury Board’s approval before the Crown corporation fixes the terms and conditions of employment of certain of its non-unionized employees. Finally, it makes consequential amendments to other Acts.
Division 18 of Part 3 amends the Keeping Canada’s Economy and Jobs Growing Act to provide for increases to the sums that may be paid out of the Consolidated Revenue Fund for municipal, regional and First Nations infrastructure through the Gas Tax Fund. It also provides that the sums may be paid on the requisition of the Minister of Indian Affairs and Northern Development.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 10, 2013 Passed That the Bill be now read a third time and do pass.
June 10, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give third reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, because it: “( a) weakens Canadians' confidence in the work of Parliament, decreases transparency and erodes the democratic process by amending 49 different pieces of legislation, many of which are not related to budgetary measures; ( b) raises taxes on Canadians by introducing tax hikes on credit unions and small businesses; ( c) gives the Treasury Board sweeping powers to interfere in collective bargaining and impose employment conditions on non-union employees; ( d) amends the Investment Canada Act to triple review thresholds and dramatically reduces the number of foreign takeovers subject to review; ( e) proposes an inadequate Band-Aid fix for the flawed approach to labour market opinions in the temporary foreign worker program; ( f) proposes to increase fees for visitor visas for friends and family coming to visit Canada; and ( g) fails to provide substantive measures to create good Canadian jobs and stimulate meaningful long-term growth and recovery.”.
June 4, 2013 Passed That Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 228.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 225.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 213.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 200.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 170.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 162.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 136.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 133.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 125.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 112.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 104.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 12.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 1.
June 3, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
May 7, 2013 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 7, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures (Economic Action Plan 2013 Act, No. 1), because it: ( a) raises taxes on middle class Canadians in order to pay for the Conservatives' wasteful spending; ( b) fails to reverse the government's decision to raise tariffs on items such as baby carriages, bicycles, household water heaters, space heaters, school supplies, ovens, coffee makers, wigs for cancer patients, and blankets; ( c) raises taxes on small business owners by $2.3 billion over the next 5 years, directly hurting 750,000 Canadians and risking Canadian jobs; ( d) raises taxes on credit unions by $75 million per year, which is an attack on rural Canadians and Canada's rural economy; ( e) adds GST/HST to certain healthcare services, including medical work that victims of crime need to establish their case in court; ( f) fails to provide a youth employment strategy to help struggling young Canadians find work; and ( g) ignores the pressing requirements of Aboriginal peoples.”.
May 2, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:20 p.m.
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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, I would like to remind everyone in the House, especially my colleagues across the way, that Canada has a very proud history of having immigration policies that are all about nation building. This particular program, the temporary foreign worker program, actually undermines our position in the world and makes Canadians very uncomfortable, because of the way it is being administered and because of the abuses that are being allowed.

If we have a legitimate need for ongoing workers, whether it is in Tim Hortons, in the meat-cutting plant in Alberta or on the east coast in the fisheries area, it is not temporary work. It is ongoing work, and if there are no Canadians available, that is where the immigration system needs to kick in.

However, the government has made a boondoggle out of this program. It is being used and abused to favour its corporate friends to increase their profits.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:20 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I would like to pick up on the temporary foreign worker program. It is a program that, in the past, has served our country exceptionally well. There are industries that have survived only because of having access to foreign workers.

It is important for us to recognize that, over the last couple of decades, we have seen great benefits to our nation as a direct result of the temporary foreign worker program.

Having said that, we do recognize that in the last couple of years, the government has really turned a blind eye to it. It has allowed the temporary foreign worker program to now exceed 330,000 foreign workers coming to Canada. Even during Canada's economic peak, we had roughly 160,000 foreign workers. There is an obvious imbalance.

My question to the member is what she, or the New Democratic Party, believes is the optimum number of temporary foreign workers that Canada should be looking at. That is if she can put it down in terms of numbers.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:20 p.m.
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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, this is not about a number. This is about a time when no Canadians are available for work, whether they are Canadian citizens or whether they have just arrived in Canada as permanent residents.

With all due respect, I would like to mention that it was under the Liberal government that the numbers started to increase in the temporary foreign worker program. Some of these lax grantings of LMOs started during that period and that has now accelerated.

I think that to ask for an arbitrary number is not to understand the fundamental reason why the program is in place and why it needs to exist. It only exists when we have genuine labour shortages, where Canadians are not available to do the work.

There is no number; it should just be in response to those vacancies.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:20 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Mr. Speaker, I am pleased to be participating in the debate today on the budget implementation bill.

The success of a nation is due to the manner in which society values its workers, its innovators and the way it allows everyone the opportunity to succeed and improve their lives through hard work and ingenuity. This is supported in a recent book, Why Nations Fail, by Daron Acemoglu from MIT and James Robinson of Harvard University.

Why Nations Fail provides a historical study of civilizations that have succeeded and failed and determines that civilizations have fallen or thrived based on, above all else, their political institutions. Governments thrived when they provided the rule of law, secure property rights and a strong independent judiciary. Good government prevents any elite from extracting the wealth out of a country for themselves and spreads opportunity around.

Geography, culture and resources, all gifts that Canada has in abundance, take a back seat to good government that is responsive and accountable to its citizens in this manner. When money can travel over wireless networks in a split second and investors from anywhere in the world can invest anywhere else in the world within a matter of minutes, people will invest in a nation that will secure their investments and grow them with minimal risk. The people of those nations benefit with jobs and opportunities, as Canadians do.

Canada's economic action plan for 2013 is part of an economic process. It is in its seventh year. It began in 2006, from our Minister of Finance and Prime Minister. It prioritizes stability, prudent fiscal management and careful stewardship of our economy, something that most of Europe and the U.S. are struggling toward.

How is Canada doing? Most Canadians know these facts. Canada has had the most stable and sound financial system in the world for five years straight. Canada is the number one place in the world to do business. Canada has the highest possible credit rating from the three major rating agencies. We are in the best fiscal position of any of the G7 countries. We have the lowest government net debt to GDP ratio in the G7. During the recent recession Canada did not have to bail out a single bank. By 2015 we will have a balanced budget without putting our hands in the pockets of taxpayers and business owners for new taxes.

However, what some members of the House do not understand is that none of this happened by accident. This was achieved by good management and tough decisions. Let me give a few examples.

Back in 2006, when the U.S. government allowed risky mortgages that covered the entire value of the house, plus in some cases even the furniture, our government tightened up the mortgage rules, asking for higher credit ratings and stopping the 40-year terms the banks were pitching. This helped save Canada from a U.S.-style housing crisis. Despite our deficit, created to fight the 2008 recession, and the difficult task of limiting spending now to balance our national budget, just last year the NDP and Liberals wanted to send billions of our tax dollars to Europe to bail out governments that have not made the tough decisions we are making. We said, “No way”.

We would never consider the NDP plan to grab $60 billion out of the pockets of business owners, shareholders and workers, although personal debt is at an all-time high. Given the chance, that plan would include a death tax on the wealthy, promoted by the NDP academic branch at the Broadbent Institute. Of course, the definition of wealthy would be anyone who had perhaps $50,000 a year after they die, which is about the cost of a parking space at a condo in downtown Toronto.

Democracy is sharing power. Sound economics and strong institutions support that sharing and ensure the security of all Canadians, not just the wealthy. That is why those who are not wealthy are often the first to support Conservative budgets. In bad times the wealthy do all right, but those who are not wealthy are at the risk of losing everything. They have the most to lose when governments overspend for decades and go bankrupt. They are the ones who line up at the EI office. A good budget must balance the interests of all citizens, while not confiscating the earnings of entrepreneurs.

Where democracies get into financial trouble is when the public sector grows out of control and confiscates more than the private sector can afford to pay. Bill C-60 would implement a budget process that would reduce the size and cost of government, to be affordable. The budget would reduce full-time equivalents by attrition and eliminating positions and would reduce spending by another $600 million a year. The budget would be balanced by 2015.

On the other side of the floor, there are a lot of members who believe in their heart of hearts that governments exist to decide who gets what. They want to be the ones who write the rules for everyone else to divvy up the pie. They actually think that governing is like contract bargaining. What they do not understand is where wealth comes from. That is our focus. We cut it down, dig it up, manufacture it, reap it from the soil, add value through trade, and we must do it all better through innovation. The budget would help entrepreneurs and businesses that take risks and innovate to create wealth and new jobs for others.

There is something else they do not get. This is a free country, and when taxes get too high people and businesses leave.

I have seen this happen when the NDP, under the leadership of the then member for Toronto Centre—Rosedale, was in power as the NDP premier. The taxes in Ontario became the highest in North America: businesses left in droves; unemployment skyrocketed; government revenues crashed; and government debt more than doubled, from $38 billion to almost $100 billion. Ontario was essentially bankrupt.

As Dr. Phil says: “How's that working for them in Europe today?” Well, how about Greece with 27% unemployment, or Cyprus where bank deposits are being confiscated, or Portugal where the unemployment rate has reached 17%? It is no surprise that these countries are not prospering.

In Canada, we offer a vast land of opportunity which supports and rewards hard work while protecting people's human and property rights. This government values that above all else.

Budgets must be realistic and express tough decisions made for the long-term success of our country. This budget is building a foundation and structure for a secure future for our children and grandchildren. It closes tax loopholes for tax fairness and improves the integrity of the tax system. It supports innovation and research, and it is a commitment to Canadians that their economy is on the right track. Its success is founded on two major platforms: the first is paying down the debt on time and without excuses; and the second is strategic investment in growth and innovation.

The year 2013 began with a welcome announcement in my riding of Oakville when our Prime Minister visited Canada's largest Ford plant, the Oakville assembly plant, on January 6. The Prime Minister was there to announce an investment of $250 million in the automotive innovation fund to 1,000 CAW folks who build these high-quality low-emission cars. The fund is for auto industry firms undertaking large-scale research and development projects that are focused on innovative, greener and more fuel efficient vehicles. The fund is working.

The money invested in Ford's Windsor engine plant originally created 450 full-time jobs, but since then it has grown to 600 full-time jobs. What is more impressive is that there are 3,000 people working at the Oakville assembly plant who now work full-time as a result of investments made by this government in 2006.

Other projects supported by the AIF include Toyota Motor Manufacturing Canada's project green light, which includes the production of the RAV4 electric vehicle at Toyota's plant in Woodstock; Magna International's development of clean vehicle technologies, including energy-efficient components and innovative powertrain parts for next-generation vehicles; and construction of a new Toyota blended assembly line that will permit the simultaneous production of both the current Lexus model and the hybrid model.

Perhaps our single biggest problem at this point in our history is addressed in this budget. With hundreds of thousands of Canadians hitting retirement age in the next few years and the emergence of the knowledge economy, the Canadian Chamber of Commerce says that without action we could have over 500,000 unskilled workers who will not be able to find work by 2016. Without action in this budget, there could be over one million skilled job vacancies by 2016. The former president of Seneca College, Rick Miner, summarizes the problem in the title of his report, “People without Jobs, Jobs without People”.

The most significant contribution of this budget is perhaps the creation of the Canada job grant, which could provide $15,000 or more per person, with matching funds to match people with jobs. This fund will help up to 130,000 Canadians with access to training for the jobs that are available. This will be at community colleges, career colleges and trade union training centres.

This budget and our previous budget have demonstrated that Prime Minister Harper and our Minister of Finance are building our nation to heights we have never seen before—

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

I will remind the member not to refer to any members of the chamber, including the Prime Minister, by their given name.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:30 p.m.
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Conservative

Terence Young Conservative Oakville, ON

This budget and our previous budget have demonstrated that the Prime Minister and our Minister of Finance are building our nation to heights we have never seen before. Canada is a place where immigrants and investors want to be. We have every reason to be optimistic about our future. I will gladly support this budget and the great economic stewardship of our government.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:30 p.m.
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NDP

Mike Sullivan NDP York South—Weston, ON

Mr. Speaker, I thank my colleague from Oakville for his speech. However, the thing that is missing in this budget is real job creation. When the Conservatives took over in 2006, there were one-quarter million fewer unemployed individuals in Canada than there are today, which speaks to the Conservative's record. There are one-quarter million people who are now unemployed who were not unemployed in 2006. At the same time, we have one-quarter million more temporary foreign workers.

Members can do the math, and it is very simple. The temporary foreign worker program has been increased by the government over the course of its being, which has had a direct impact on the number of people who are unemployed in this country. However, the Conservative government has done nothing about it.

I would like the member to comment on what it is that the government is going to do to correct those numbers and bring more people to more jobs in Canada in a way that is actually going to work. We have heard it all before, and it is not working now.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:30 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Mr. Speaker, I do not know where the member opposite has been for the last few months, but since the end of the recession this government is responsible for the creation of 950,000 net new jobs, most of which are full time.

In addition, it seems the member has totally missed what happened in 2008. I do not know where he was in 2008, but we were here dealing with the most serious recession since the 1930s. This government got this country through that recession. We purposely created a deficit through Canada's economic action plan, and now that the recession is over we are balancing the books.

With specific regard to the member's question on this budget on job creation, in talking about the future and the need for infrastructure in our communities, the roads, bridges and transitways that our children and grandchildren will need, in budget 2013 we have pledged over $53 billion over 10 years for a new building Canada plan. It is long-term predictable funding that represents the largest and longest federal infrastructure investment in Canadian history.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:35 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I give the member credit for sticking to the PMO notes. To what degree the member might even believe some of what he is saying is truly amazing.

When the Conservatives took over the government reigns, the reality was that they had a huge budget surplus. Even prior to the recession taking place, they turned that surplus into a deficit. They had to be brought kicking and screaming by the Liberal Party, who was the official opposition at the time, to provide an economic action plan to keep people employed in this country.

Now when the government members talk about having a balanced budget, members will notice they refer to 2015-16, which is post the next federal election. The Conservative government has never had a balanced budget in the last 100 years. The member should know that.

My question to the member is this. Can he clearly and definitely tell this House when the last time was that the Conservatives, the Progressive Conservatives or the Reform Party in Ottawa have presented a balanced budget to this House.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:35 p.m.
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Conservative

Terence Young Conservative Oakville, ON

Mr. Speaker, I thank the member for the question, but I am not so grateful for his fictitious preamble.

I believe the last time this government balanced the budget was in 2007. However, prior to the recession, which the member might remember started in 2008, this government had a surplus which it reinvested by paying down debt. That is what we promised to do. That is why the voters made us the government. We paid down over $30 billion of debt, which is what we are supposed to do.

When there is a recession, government money is invested to help people stay working. However, when there is a surplus, the government is supposed to pay down debt. That is acceptable fundamental economics. That is exactly what we did. We will not apologize for lowering taxes on Canadian families and putting more money into their pockets once the budget was balanced.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:35 p.m.
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NDP

Matthew Kellway NDP Beaches—East York, ON

Mr. Speaker, I am almost sad to get up. I was enjoying the Conservatives and the Liberals going at it on the issue of economics when they should be embracing each other because they both practice the same austerity economics.

Before I start on the issue of Bill C-60, I do want to wish Marg Reilly a very happy birthday. Marg is a constituent of mine. It is a milestone birthday for her, and she is a person worthy of great celebration. Happy Birthday, Marg.

Today we are talking about Bill C-60, the budget implementation act. It is the final of five days of debate on the matter, owing to another Conservative time allocation motion, which is a new record for such motions. I dare suggest that there will be more such motions. There seems to be some kind of narcotic effect to these time allocation motions for those guys. It also, perhaps, is just the arrogance of power.

In his defence of the Conservative time allocation motion, the Minister of State for Finance described this legislation as “the blueprint of our government's mandate moving forward”. He “felt” that five days was more than enough time to debate the bill. As it turns out, what we have before us is another omnibus bill. It is certainly shorter than its predecessor, but still it involves amendments to nearly 50 pieces of legislation, and even introduces new legislation. That means that on average we have less than one hour of debate for each legislative change or legislative invention included under the bill.

Who would have imagined that those so-called champions of transparency and accountability, these parliamentary reformers who sit on the government side, would have ever stood in this place to justify such a limited level of scrutiny—on budget implementation, no less—for parliamentarians, much less to justify it on the basis of what they felt was appropriate, that those reformers would privilege their feelings over the traditions, institutions and processes of governing and government in Canada? It is most certainly a form of tyranny.

This is not simply an issue of process or principle, as those members like to portray it. This is about a government that is failing to do its best for this country and its citizens, a government that has deliberately set a target below the potential of Canada and its citizens. Never mind excellence, never mind maximization, never mind over-achieving, the Conservative government aspires to under-achievement, to less than what is possible, to less than our potential.

This is the recurring narrative in the April 29 economic and fiscal outlook produced by the Parliamentary Budget Office. I want to quote a bit at length here:

PBO projects real GDP growth in Canada to slow to 1.5 per cent in 2013 and remain below its potential growth rate until 2015. Combined with the sluggish recovery in the global economy, government spending restraint will act as an additional drag on growth and job creation. The projected weakness in growth keeps the economy well below its potential GDP through 2015 and as a result the unemployment rate remains relatively stable, averaging 7.3 per cent over 2013 to 2015.

It goes on to talk about employment in Canada being below its potential. That is on page 10, if anybody wants to reference that. It say that employment and “average weekly hours” for Canadian workers are below potential. That is on page 11. “Labour productivity” is below, which is, again, on page 11. Gross domestic product is “below potential”, on page 11 again.

How is all of this happening? Quite curiously, it is happening by design. As the economic and fiscal outlook says, “Over the period 2013 to 2017, PBO estimates that the net impact of [economic action plan] 2013 measures and revisions to spending levels on real GDP and employment is contractionary”. It is 67,000 jobs worth of contractionary, according to the report, which is a .57% reduction in GDP.

The PBO explains that does not mean that employment levels will be 67,000 jobs shy of where we are today. That is fair enough. The report explains it in these terms:

Rather, it means that, in the absence of these measures and revisions to spending levels, projected employment would be higher by 67,000 jobs, all else being equal.

The action in the government's economic action plan is:

...pushing the economy further away from its potential GDP and delaying the economic recovery.

This is worthy of the House's time for extensive debate. I want to know, and Canadians will want to know, why the deliberate path of action chosen by of the current government is to push the economy further away from its potential.

What is particularly perplexing is that the budget comes in the context of a Canada that is already so far shy of its potential.

The government has presided over a $67 billion trade deficit that is expected to worsen in the year ahead. That is thousands of jobs and billions of dollars leaving this country and going overseas to enrich others.

There are still almost 1.4 million Canadians out of work. There are 240,000 more young people unemployed today than before the recession.

Closer to my home, in Toronto, in my riding of Beaches—East York, I would note a recent report by the United Way and McMaster University showing that nearly 50% of jobs in southwestern Ontario are precarious jobs. A recent report by the Metcalf Foundation shows that the number of working poor is growing in the greater Toronto area. Reports by the Cities Centre at the University of Toronto show the continuing income polarization in our cities, particularly in Toronto, and extrapolate current trends to show a city with a completely hollowed-out middle class.

To be fair, this trend has carried through successive Liberal and Conservative governments, so we cannot blame it all on the guys on the other side.

The only employment numbers growing by a significant measure are for temporary foreign workers, spurred on by the government's inducement of paying significantly lower wages than for Canadian workers.

It is in this context that the government sees it wise to hit the brakes on the economy to constrain economic growth.

This is a set of circumstances that calls for a different kind of action, action that would put Canadians and Canadian cities, which are after all the engines of economic growth in a modern economy, to work—to begin at long last to undo the constraints on our economy, to realize the potential of our country and to make a more equally shared prosperity a goal for this country.

Let us look for a moment at the issue of infrastructure. Here is an economic opportunity that the government has failed to grasp.

By many accounts, the infrastructure deficit in this country is well north of $150 billion, and it continues to grow. We need to see this problem addressed, and soon. “A penny now or a dollar later”, as the 2012 Canadian Infrastructure Report Card puts it, meaning the cost of delaying needed repairs could cost us vastly larger sums down the road, yet over the next four years, federal infrastructure funding will be $4.7 billion lower than it was last year, despite some creative advertising by the Conservative government.

This so-called new infrastructure funding announced in budget 2013 includes funding from older, delayed projects. There is $6 billion worth announced in this new economic action plan that is masquerading as new money when it is actually existing funds that had been committed back in 2007.

This is a budget that would provide no relief for urban congestion in Canadian cities. Owing to successive uninterested Liberal and Conservative governments, the public transit system in Toronto has not grown in any meaningful way since 1980.

In conclusion, what the government needs to explain to Canadians is how it dares to occupy those benches over there when it puts forward a plan that would shrink this country rather than grow it, when it puts forward a plan that would take jobs from Canadians rather than create jobs for them, when it aspires to less than what we are capable of as a country.

How does the government explain that to the youth of this country who have their futures in front of them? How does it explain it to the seniors of this country, who left what they had built up in our hands not so that we could take it down, but so that we could continue to build upon it?

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:45 p.m.
See context

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, it is interesting but somewhat troubling to hear members of the New Democratic Party and the Liberal Party stand up, speaker after speaker, with an incredibly negative attitude. They can find nothing right with our budget and nothing right with our budget implementation bill. That is very disturbing, because they are totally out of touch with Canadians. In fact, our budget was extremely well received by Canadians, and our economic action plan has allowed business across this country to create 950,000 new jobs since the recession ended. That is an incredible record, yet opposition members are nothing but negative.

I ask the member if he could maybe find one thing from our budget, one thing covered in the budget implement bill, that he thinks is right with this budget? If he cannot, could he explain why he is so out of touch with how Canadians feel about this budget and this budget implementation bill?

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:45 p.m.
See context

NDP

Matthew Kellway NDP Beaches—East York, ON

Mr. Speaker, if the government did its budgeting right, then we could find something right with the budget. However, as it is, what I would suggest to the member, as we have suggested to the government side, is to divide the bill up and stop playing this game of putting everything into an omnibus bill—50 pieces of legislation, new legislation, amendments to legislation—and standing up day after day saying we disagree with it all. It is because it is all piled into one toxic budget bill.

Let us divide it up and then let us be truthful about the facts. Conservatives talk about 950,000 net new jobs; since 2008, immigration in this country has accounted for at least one million new Canadians, so how does the government talk about net new jobs that cannot even keep up with the immigration rate since the recession?

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:50 p.m.
See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I thank the member for Beaches—East York for a really quite eloquent speech in assessing this budget. I think he would probably agree with me that there are many things in the budget that are actually good, including first-time incentives for charitable giving and a small but certainly welcome amount of funding to CNIB. Overall, however, I think his analysis is exactly correct.

I want to ask the member if he finds it surprising that the government would boast about programs that it has cancelled. The environment section of the budget talks about the very successful home energy retrofit program, which no longer exists. I wonder if the member would agree with me that the budget would be much improved if that program were resurrected.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:50 p.m.
See context

NDP

Matthew Kellway NDP Beaches—East York, ON

Mr. Speaker, certainly the budget would be improved and our environment would be much improved if that program still existed.

One of the curious things about that program is that when the Minister of the Environment and the Minister of Natural Resources justified ending that program, they did so by trumpeting its great success and the many jobs it created, so there is no rationale for cancelling that job program.

In fact, it becomes an extremely important program for a city like Toronto. One of the curious things about the city that I live in, because of its particular built form, is that over 60% of our greenhouse gas emissions come from heating and cooling the built environment, so a program like the eco-energy program became a critical part of dealing with climate change and with greenhouse gas emissions in a city like Toronto.

I know my constituents very much regret the decision of the government to cancel that program, not only because of the improvements it brought to their own properties and because of their concern about the environment but also because of the great job potential that the program had.