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 / 12:50 p.m.
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Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, I am delighted to stand and speak to our budget implementation bill today.

I want to express from the start how disappointed I am that the opposition, for some reason, cannot find something good about our budget and our budget implementation bill when Canadians have really supported our budget with open arms and very positive endorsements from third parties of all types, including business and union leaders and so on.

However, the opposition members just cannot find it in themselves to say that there is a lot about this budget and this budget implementation bill that is good. That is very disappointing.

They also complain about any program that has been ended by the government since we came to office. The reality is that many of these programs were put in place by previous governments to help meet a policy objective of that previous government. In many cases, that policy objective no longer exists, so why should the program continue indefinitely?

One of those programs the opposition is complaining about was actually put in place 100 years ago. To me, the policy objective made a lot of sense 100 years ago.

The program was the shelterbelt program. That was in the last budget, just as an example. That program was put in place almost 100 years ago to help protect our prairie soil from wind and water erosion, and it was a good program at the time.

However, I suppose many members do not recognize that in the 1980s farmers started direct seeding crops, so this erosion that the shelterbelt program was put in place to protect against simply no longer exists because the soil is not tilled as it used to be and we do not have summer fallow as we used to have. The problem that the program was put in place to solve simply does not exist now, yet the opposition members complain about our government ending even this 100-year-old program that no longer meets a policy objective.

I am going to guess what they would do, and that would be to just have these programs built one on top of another until we would be so far in debt that we simply could not balance the budget in this country and we ended up in the same kind of mess that our neighbours to the south are in.

To me, that is not an acceptable route to take. Our government has committed to balancing the budget by 2015. That is an objective I want to support, even if they do not, and it is an objective that is certainly supported by my constituents.

The opposition cannot find a thing right about the policies being implemented in this budget implementation bill. I want to run some examples by the House. It will be kind of a disjointed presentation here dealing with different issues.

The first issue is the adoption expense tax credit. This was put in place to better recognize that adoptive parents incur costs prior to being matched with a child. A lot of expense goes into that process.

I know that some of my colleagues have adopted children, and they understand this issue very well. There are probably some members on the other side who have adopted children, and they know the costs that go into the process even before the adoptive parents are actually matched with a child.

My niece and her husband tried to adopt children for 10 years, and they just could not do it. They tried a lot of things to make this happen. They have incurred a lot of expenses. What they wanted was a child; they desperately wanted a child. They commented to me on several occasions that the costs are really incredible and that they would appreciate anything that could be done to help them deal with that a little.

They have been blessed. Just a couple of years ago they completed the adoption of their little girl, and currently they have a little boy and are hoping to be able to keep the little boy and adopt him. To them this is important, yet the New Democratic MPs cannot find it in their hearts to say that it is good thing. With the Liberals, it is the same.

What has the leader of the Liberal Party said on this? He has not made a comment on it at all, either on that or on any other policy issue. The leader of the Liberal Party is not in the picture at all.

What else do we have in this budget that would be implemented in this act? There is the mineral exploration tax credit for flow-through shares. NDP members in particular receive a lot of funding from unions, and that is not voluntary. Union members are given no choice. They are forced to pay memberships, and the unions decide whether that money goes to a particular political party. I know that the Conservative members get a lot of support from union members, but it does not come through unions.

NDP members always claim that they are standing up for union members, yet they have not said a good thing at all about this mineral exploration tax credit that would encourage exploration and the development of new mines and that type of thing. That means jobs, and a lot of new union jobs, but can they find it in their hearts to speak on behalf of their union members and say that it makes sense because it would mean a lot of new jobs for union members? No, they cannot.

What has the leader of the Liberal Party said about that? Actually, he has said nothing about that or about any other policy issue I have heard about. He is too busy raising money for the Liberal Party, instead of being here in the House of Commons doing his job. He had one of the worst records in the House of Commons—

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:55 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Order, please. The hon. member for Malpeque is rising on a point of order.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:55 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, members are not supposed to suggest whether people are here or not here in this place. That member is insinuating that the leader of the Liberal Party is not here. He is doing good work meeting Canadians across the country, which that Prime Minister

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:55 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Order, please. The member for Malpeque is correct that members ought not to reference who is or is not in the chamber.

The hon. member for Vegreville—Wainwright.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:55 p.m.
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Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, I understand that very well. I was not commenting on whether he was here now. I was just saying that in the past, he has been gone an awful lot.

Another thing this budget implementation bill would deal with is the accelerated capital cost allowance for manufacturing processing machinery and equipment. Again, the opposition parties always claim that they are standing up for union members and unions. Yet they cannot find it in their hearts to say that they support that accelerated capital cost allowance, which would encourage manufacturers to expand, build new plants and create new jobs here in Canada. They just cannot find it in their hearts to say that what the government is doing makes a lot of sense, that it is good for their union members and that they are going to support it. They will not do it. They just cannot be anything but negative. That is what I have heard from the NDP: negative, negative, negative. I get tired of it day after day. It is the same with the Liberals, those of them who are, in fact, here in the House.

Another issue is the additional deduction for credit unions. I have heard one particular member in the Liberal Party, who is a big supporter of co-ops. Lots of members in our caucus are big supporters of co-ops. Probably even some New Democrats are big supporters of co-ops. We hear our members talking about the positive aspects of the additional deduction for credit unions in this budget implementation act. Credit unions, of course, already qualify for the Canadian preferential income tax rate on the first $500,000 per year of qualifying business income. This would go beyond that, for credit unions in particular. The members claim to be big supporters of co-ops, but what do we hear from them on that issue here in the House of Commons? They are nothing but negative. They cannot find it in their hearts to say that carrying on that credit union special tax exemption is something they can support, because it is good for co-ops, good for their union members and good for the country. They just will not do that.

I just got started. There is a long list of items we would implement in this budget implementation bill that I know their constituents support. Their constituents support it, yet the opposition members cannot find it in their hearts to support their constituents. If they cannot support government or the good things we are doing, at least they should support their constituents. They are not doing that. They are failing them, and they should be ashamed. I encourage them to change their direction and start supporting the good things the government is doing.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1 p.m.
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NDP

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

Mr. Speaker, I listened closely to what the member opposite was saying. I must say that I am upset by this government's approach to things.

We know that this bill is not unlike last year's omnibus bills, C-38 and C-45. We know that the Parliamentary Secretary to the Minister of Finance tabled a notice of motion at the Standing Committee on Finance in order to give committee members just five meetings to complete consideration of Bill C-60 and to ensure that clause-by-clause review of the bill is completed by May 27, which is just eight sitting days after the time allocation motion forces passage of the bill at second reading.

Does the hon. member think that five committee meetings will allow enough time to study this bill properly?

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1 p.m.
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Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, I am sure that the member knows that there are going to be different committees, which is my understanding, looking at different parts of this implementation bill. Certainly every member of Parliament has had the chance to read it, study it and be ready for the committee meetings. If they do that, they have ample time. I have not heard them propose better options for any of the things in this budget implementation bill.

She complains that it is an omnibus bill. Budget bills are always omnibus bills. They deal with a lot of different issues. The last budget dealt with hundreds of different issues. Are we supposed to divide them and deal with each one separately at committee? No. Budget implementation bills are omnibus bills. They implement a budget, which is an omnibus bill. I do not think there is any other way of doing it realistically. We would be trying to implement last year's budget for the next 10 years, quite frankly, if we did it that way.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, the member for Vegreville—Wainwright was a little off base when he said that the leader of the Liberal Party has not said anything about this budget. Maybe the member for Vegreville—Wainwright has not been listening. I do not know.

Every day that the leader of the Liberal Party has asked questions in the House, he has talked about the middle class. He has talked about the damage the Conservative Party is doing, through this budget and other measures, to the middle class in this country. He has said things such as that $550 million annually is coming out of the small business sector, which supports the middle class and is, indeed, the middle class. There is a $600-million payroll tax hike in this budget, which is hurting the middle class. The member may have slapped aside the leader of the Liberal Party, but he is absolutely wrong. The leader of the Liberal Party is standing up for the middle class.

The member said quite often that we should find it in our hearts. Once when I was in London, England, I came out of a facility and a guy asked if I could find it in my heart to lend him a copper. Could the member find it in his heart to support the middle class?

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:05 p.m.
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Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, the member for Malpeque is defending the leader of his party. There is a lot to defend, and I commend him for that. That is his job, quite frankly.

I was talking about the particular issues, which make up almost all of the budget, that his leader, quite frankly, has not commented on at all. He probably will not. As I say, he is too busy raising money to try to replenish the Liberal coffers. That is part of his job too, but he should be here in the House of Commons at least a good part of the time the House is sitting. He is simply not. I do not think the member will defend his leader for that.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:05 p.m.
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NDP

Pierre Dionne Labelle NDP Rivière-du-Nord, QC

Mr. Speaker, hon. members, allow me to digress for a moment before getting to the heart of the matter.

The new leader of the Liberal Party knows nothing about the middle class. He does not know what it is like to lose his job or to have to wait for employment insurance benefits. He does not know the problems that come with receiving an unexpected bill. He cannot understand the difficulties the middle class experiences.

As with the last two budget implementation bills, the NDP opposes Bill C-60 for its content and for the process. I will use my time to explain why.

The austerity measures of the past few years, both in North America and in Europe, have not produced the desired economic results, to say the least. Just recently, the staunchest supporters of austerity measures had to acknowledge two mistakes that had been made. Our Conservative friends do not seem to be aware of them or do not understand their implications.

Last October, the International Monetary Fund—the IMF—acknowledged that it had made a calculation error in assessing the impact of those austerity measures, particularly in the southern European countries. What was the error? Simply that it used a fiscal multiplier estimated at a 0.5% drop in GDP. This was seriously underestimated, not a little, but a lot: nearly three times that ratio.

What the IMF is admitting is that the negative factor was not 0.5, it was actually between 0.9 and 1.7. In simple terms, that means that a one-point cutback in public spending did not result in just a 0.5-point drop in GDP, but a drop of between 0.9 and 1.7 points. Understandably, that revelation has caused considerable discomfort in Europe.

There is every reason to think that the real reason for that discomfort is ideological. Yes indeed. Greece was used as a testing ground out of which only one of the two theories of the cosmos would emerge victorious: Keynesian interventionism versus the liberalism of Friedman, which, like our colleagues opposite, hopes to see the state disappear, or at least be reduced to a minimum. The mastermind behind this operation knew all along that it would lead to the irrevocable and permanent disappearance of Keynes’s legacy, since it would prove that austerity and nothing but austerity would lead to growth. Small mistake. It is exactly that belief that is shared by our ideologue colleagues opposite.

The IMF experiment turned into a fiasco, a huge fiasco. In Europe, it is responsible for 4,000 suicides, the impoverishment of 3.5 million people and a two-year drop in life expectancy. It is also responsible for an unemployment rate that is beyond comprehension, an explosion in the number of elective abortions, abandoned infants, the dismantling of human lives and families, homeless people in numbers that are out of control, because of the ongoing destruction of the middle class—yes, that is right, we are talking about the middle class—and the intolerable spectacle of Greeks, in the 21st century, hunting through garbage to find something to eat. Those are the horrors of austerity.

Europe seems to be suffering the terrible consequences of a mistaken estimate, in view of the negative growth rates, approaching zero, experienced in recent years and exploding debt followed by unemployment rates that just keep going up.

The International Monetary Fund’s chief economist, Olivier Blanchard, has in fact said that economic activity is so weak in Europe that all governments that are still able should do nothing that risks shrinking their social safety net.

Is a shrinking social safety net not what we are seeing in Canada with the planned cuts to employment insurance?

I would like to talk about the second economic error that was recently acknowledged by staunch supporters of austerity measures. Reinhart and Rogoff, two economists at Harvard University, asserted that a country's economic growth slowed when its debt exceeded 80% of GDP. The Conservatives, who abhor deficits, are panicking.

This false economic assumption was used by far too many supporters of fiscal restraint. Numerous countries relied on this study, which was exploited for political purposes, and took the same stance on fiscal restraint, with serious consequences: civil servants' salaries were frozen, there was structural reform, taxes were raised and so on. That is exactly what the Conservatives are proposing with Bill C-60.

On April 17, the attention of economists around the world was focused on a discovery made by Thomas Herndon, a young economist at the University of Massachusetts. With the help of his professors, he recalculated the famous Rogoff and Reinhart numbers. They realized that when debt exceeded 90% of GDP, average growth was not -0.1%, it was 2%. The reason for this difference is that Rogoff and Reinhart do not seem to have included a number of countries in their calculations. They excluded Australia, New Zealand, Canada and Belgium between 1946 and 1950. Their calculations were inaccurate, and the premise that growth stagnates when debt exceeds 90% of GDP is false. Herndon's study proves that.

What does all that mean for Canada? Despite these proven errors, despite the warnings of the International Monetary Fund and the Parliamentary Budget Officer, the Conservative government is sticking to austerity measures by introducing Bill C-60. In a 32-page paper published by his office, the Parliamentary Budget Officer calculated that the Conservative government's 2013 budget will have a net negative impact on the labour market over three years. Employment will fall by 8,000 jobs in 2015, 14,000 in 2016 and 10,000 in 2017. The net impact of the budget-cutting measures that the Conservative government has taken since 2012 will amount to a loss of more than 67,000 jobs in 2017.

The Conservatives, who like to boast of their job creation record, are living in an ideological bubble. In the meantime, 1.5 million Canadians are out of work and we now have 240,000 more unemployed youth than before the recession. Despite that fact, the only measure in Bill C-60 that will create jobs is the addition of new cabinet ministers.

The Parliamentary Budget Officer has clearly stated that the Conservatives' savage cuts announced in budget 2013 are not necessary to restore a structural budget surplus. On the contrary, combined with the anemic global economic recovery, the austerity measures imposed by the Harper government will further slow economic growth and job creation.

Budget 2013 could lower—

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Order, please. Once again I remind the member not to refer to his colleagues by their given names.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:15 p.m.
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NDP

Pierre Dionne Labelle NDP Rivière-du-Nord, QC

Mr. Speaker, I apologize for referring to the Prime Minister by his surname. I withdraw that remark.

Budget 2013 could lower economic growth by 0.12% and eliminate thousands of jobs, reduce direct program spending and slow growth in gross domestic product. Bear in mind that this year's budget will extend $5.2 billion in cuts every year until we achieve the alleged zero deficit. Whatever the Conservatives may say, this budget, like the other austerity budgets previously introduced, will slow rather than stimulate Canada's economy.

Why then move so quickly toward eliminating the deficit, despite the International Monetary Fund's urging to calm down, reflect, and rely on something other than known errors of economic theory?

In fact, according to the Parliamentary Budget Officer's calculations, the government will achieve an even larger surplus than planned of $3.7 billion in 2015-16, when Canadians will go to the polls. Is that the reason for these reductions and cuts, the possibility that the government may have $3.7 billion in hand before the election to invest at the appropriate time for strictly political purposes?

My colleague Peggy Nash recently mentioned this. In Bill C-60, the Harper government is doing nothing to support—

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Order, please. The use of members' surnames is prohibited.

You have 15 seconds.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:15 p.m.
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NDP

Pierre Dionne Labelle NDP Rivière-du-Nord, QC

Mr. Speaker, I would like to use those 15 seconds to withdraw that remark and to underscore the excellent work done by the official opposition's finance critic.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 1:15 p.m.
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NDP

Charmaine Borg NDP Terrebonne—Blainville, QC

Mr. Speaker, I congratulate my hon. colleague on his excellent speech, which contained a great deal of information and was very well thought out, written and delivered.

The Conservative member who spoke before him said that NDP members are always so negative, that we think there is absolutely nothing good about this budget, that we cannot find any good measures in it. From my perspective, and that of my constituents, this budget is very hard to support. It amends nearly 50 pieces of legislation, and unfortunately, we are under a gag order and will have only five committee meetings to examine this budget implementation bill. The Conservatives' way of doing things is extremely problematic.

I would like to hear my colleague's comments on this, as well as what his constituents think of these measures.