Bill C-60 (Historical)

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

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.

Economic Action Plan 2013 Act, No. 1

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Mr. Speaker, I thank my hon. colleague for the question.

The Conservatives' approach, which consists of using omnibus bills to amend 50, 60 or even 70 acts, makes it impossible for us to single out any measures and give our consent for specific measures. Then, as we have seen over the past two years, we come back to the House for question period and the Conservatives keep saying that we voted against this or that measure. That is not true. I am confident that those watching us at home see what is really going on.

We did not vote against this or that measure. We voted against the fact that some measures, which taken individually could be beneficial, have been grouped with others to try to make us swallow a bitter pill with a spoonful of honey.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, an important issue for many Canadians is assisting young people to not get involved in gangs. I know it is a huge issue in certain areas of our country, Winnipeg being one of them. What we are looking for is a government that uses a proactive approach by providing other opportunities to those individuals who are at high risk of getting involved in gang activities. We would like to see the government include in a budget document some strong, clear direction as to how it plans to deal with the issue of gangs.

Over the last number of years in Winnipeg, gang memberships have skyrocketed to well into the thousands from the low hundreds in the late nineties. This is an issue that continues to be of great concern. I wonder if the member would provide some comment with respect to the role of government allocating resources in order to fight crime by looking at some of the causes of crime.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Mr. Speaker, my colleague is right. Providing job opportunities is the most effective way to fight youth crime and all forms of criminal behaviour. It is a proven fact: when people are working and can pay their bills and save up some money, they are less likely to turn to illegal activities.

As for youth, indeed, employment integration measures targeting young people in particular are the best solution to the problem of crime and violent crime.

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I am delighted to rise today to speak to Bill C-60, the first budget implementation act of 2013.

Economic action plan 2013 is an outstanding budget that responds to the needs of Canadians. It delivers on the priorities that matter to my constituents in Richmond Hill: jobs, a stable economy, low taxes, support for infrastructure, help for the most vulnerable, and investments in science and innovation to build the jobs of the future.

In my time allowed today I will highlight just a few of the ways in which economic action plan 2013 would benefit communities, families and job creators.

During my pre-budget consultations in Richmond Hill, I heard loud and clear from many constituents, local businesses, the Richmond Hill Chamber of Commerce and many others about how essential the gas tax fund has become. It is a source of predictable, stable, long-term funding to municipalities that helps build and revitalize public infrastructure while achieving positive environmental results. This Conservative government under the leadership of the right hon. Prime Minister doubled the gas tax fund in 2009. It was also this government that put legislation in place through economic action plan 2011 to make these funds permanent. This is not a small amount. The gas tax fund is a direct annual investment of $2 billion delivered directly to municipalities across our great country.

In my riding, the town of Richmond Hill, this important government initiative adds $5 million each and every year to its coffers. Since we doubled the fund in 2009 that means about $20 million has helped build essential infrastructure in the town of Richmond Hill. Let me give the House a few examples: $435,000 in gas tax funds provided the energy-efficient upgrades for our rehabilitated Bond Lake Arena in addition to federal recreational infrastructure contributions of $712,000, which allowed residents in Oak Ridges and the surrounding area to continue using this important community facility; $200,000 in gas tax funds was used to install a geothermal heating and cooling system at the Richmond Hill Theatre for the Performing Arts, saving thousands of dollars in operating costs; and $1.1 million in gas tax funds went toward the rehabilitation of the aging Pioneer Park stormwater facility. Approximately 700 hectares of land, including many new neighbourhoods, are now protected from erosion and flooding.

Millions of dollars have been used to support a collection of energy-efficient projects. These include: a solar heating and snow melting system at the Shaw House in Phyllis Rawlinson Park; a solar pool heating system at Bayview Hill Community Centre; a small wind turbine and solar electrical panels at Richmond Green Park, and the purchase of a fully electric vehicle.

Gas tax funds in Richmond Hill helped the community achieve the honour of being Ontario's first municipality to reach its corporate greenhouse gas reduction target.

Economic action plan 2013 goes even further by proposing to index gas tax funds at 2% per year. It also expands the list of eligible projects to include highways, short-line rail, disaster mitigation, broadband and connectivity activity, brownfield redevelopment, culture, tourism, sport and recreation.

Our government supports infrastructure renewal. It creates jobs and is the fundamental underpinning of healthy communities. I am proud that economic action plan 2013 includes the historic building Canada plan, the largest long-term federal commitment to infrastructure in our nation's history.

The plan allocates $53.5 billion over the next 10 years for provincial, territorial and municipal infrastructure.

In addition to the gas tax funds, building Canada includes a community improvement fund, which would provide $32 billion to municipalities, over and above what they now receive, for projects such as roads, public transit and recreational facilities.

A new building Canada fund would provide $14 billion to support major projects across the country, and $1.25 billion would support innovative ways to build infrastructure projects faster and at good value for Canadians through a renewed P3 Canada fund. An additional $6 billion would be provided to provinces, territories and municipalities under the current infrastructure programs in 2014, 2015 and beyond.

Our government is committed to helping Canadian manufacturers better compete in the global economy. That is why we have established the lowest tax burden on new business investment in the G7. Economic action plan 2013 would add to this. The temporary accelerated capital cost allowance rate for qualifying assets has been extended. Canadian manufacturers would receive an additional $1.4 billion in tax relief when investing in new machinery and equipment.

We are also supporting our manufacturers by modernizing Canada's general preferential tariff regime for developing countries. Since 1974, Canada has granted preferential market access to imports from developing countries as a way to help those countries develop and grow economically. However, after nearly 40 years, the global economic landscape has changed considerably. Significant economic advancement has been made by some of these developing countries. In response, last year our government undertook a comprehensive review of the preferential tariff regime, including a thorough public consultation.

Economic action plan 2013 acts on the results of these consultations and effective January 1, 2015, benefits would be removed from 72 higher income and export-competitive economies. We think it is time that certain nations that have done well in developing their economies over the years compete with Canadian manufacturers on a more even footing.

At the same time, effective on April 1 this year, $79 million in annual tariff relief on imported baby clothing and certain sports equipment was enacted. Consumers and families will see lower prices for these items.

Economic action plan 2013 supports the long-term competitiveness of industries in southern Ontario. It proposes almost $1 billion over five years to renew the Federal Economic Development Agency for southern Ontario. Let me give an example of how important this initiative is.

In my riding of Richmond Hill, FedDev Ontario helped diversify our industrial base with assistance to leading-edge technology companies. One such company was Qvella Corporation. That crucial injection of capital helped develop and bring to market that company's groundbreaking bacteria identification system. The result was a faster diagnosis of bacterial infections in patients and more high-quality jobs for Richmond Hill.

The renewal of FedDev Ontario will help many more entrepreneurial businesses like Qvella to create jobs and contribute to economic growth. I am very pleased to see its proposed renewal in economic action plan 2013.

I will close by saying that balancing the books is important to my constituents. Upon assuming office in 2006, our Conservative government, under the leadership of our Prime Minister, undertook an aggressive plan to pay down the debt. We are working toward that, to balance the budget by 2015-16.

I encourage all members in this House to join me in supporting the swift passage of Bill C-60 as it will assist Canadian families immediately.

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

Mr. Speaker, I listened carefully to my colleague's comments. The problem is that he did not describe Canadians' economic reality.

At present, the number of unemployed is going up, the participation rate is going down and household debt is increasing. That is the reality.

If my colleague toured his riding, he would see that there are more unemployed workers today than in 2007. That is the problem. We are not talking about made-up figures. Canadians have been facing difficult economic conditions for a long time, since 2007.

The government continues to rely on the same old measures.

When will this government realize that these measures are not working? How does he explain the fact that there are so many unemployed people?

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I would urge the hon. member to put aside the talking points of the NDP and what he gets out of the office of the Leader of the Opposition and consider some of the facts. Our government has cut taxes for Canadians 150 times. That has put $3,200 each and every year in the pockets of Canadian families. We have reduced the GST from 7% to 6% to 5%. We have repeatedly brought measures in the House that assist Canadian families by providing more disposable funds available to them from their incomes.

I would urge the hon. member and members of his party to put those partisan political lines aside and to vote in favour of the implementation of this budget that would benefit their constituents as much as it would benefit my constituents and indeed all Canadians from coast to coast to coast.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I am pleased to ask the member for Richmond Hill a question, and it will not be partisan; it will be, in fact, facts. The fact of the matter is that in this budget there is a $550 million tax on small business. There is a $600 million payroll tax, and those taxes would be annual. However, the member talked about the reductions in the tariffs that would make hockey equipment and a few other items cheaper. He failed to mention the fact that the tariff changes on many products that come into this country would be changed to the extent that it would take $338 million out of ordinary Canadians' pockets. That comes right out of these pockets right here. They are empty now, and the Conservative government would be taxing middle-class Canadians even further. Why does he fail to mention that $338 million tax increase on those products, and how can he support this bill with this attack on the middle class?

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I want to thank the hon. member for Malpeque for his question, although I do not agree with the premise of his question. In my speech I made it abundantly clear that certain benefits to tariffs would be taken off; they were given to countries whose economies have grown, and they were initially put in place for those economies to be assisted in some way.

We are putting Canadian businesses on an equal footing with countries that want to export their products to Canada. What I hear every day in Richmond Hill from my constituents and from Canadians across the country is that they would like to see Canadian manufacturers and Canadian products be on an equal footing so that Canadians can benefit economically.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is a pleasure to rise to speak to Bill C-60 today. I have a very difficult time supporting the bill for a wide variety of excellent reasons.

One of the things I have noted about the government, more so than any other government I have had the opportunity to serve in opposition to over the last 20-plus years, is that this government sees the value of political spin like no other. It has no hesitation whatsoever in using taxpayer dollars to get that spin out there. We see that with member after member on the government benches talking from the speaking notes of the Prime Minister's Office.

Listening to some of the speeches, I often wonder if it could have been a speech from the opposition benches, which could have been used against the government, especially when it starts to talk about being financially responsible, because this has not been a government that has been financially responsible with taxpayers' dollars. A good example of that, and tying into the spin, is the economic action plan. I would classify it as a dud, and I have had the opportunity to do that before. It just does not have the impact that the Government of Canada should have, given the millions and billions of dollars that are being spent.

If we were to canvas Canadians I think we would find that they are starting to get a little upset with the government and the amount of tax dollars it is spending promoting the budget. The number of commercials is unbelievable. Whether on NHL playoffs or whatever, the commercials are there. In print and on television, the government has a message and it wants to sell that message. It will not spare a dime of taxpayer dollars doing that. Whatever it takes, it is prepared to saturate with that message.

What I would like to do is just focus a little attention on the bigger picture, the reality of the Conservative-Reform government that Canadians have had to witness over the last number of years.

Let us look at many of the speeches in which the Conservatives talk about the banking industry. They love to assume the credit for the banking industry and how solid the Canadian banks are today. Not only do they crow inside the House; they do it outside the House and even internationally. The reality is that it was Jean Chrétien and Paul Martin, as the minister of finance, who resisted the changes that were taking place around the world regarding deregulating the banking industry and allowing banks to merge and become even larger. It was the government during the 90s that ensured we have one of the best banking industry today, and many would argue that it is the best.

It had nothing to do with this Prime Minister. He cannot take any credit. One of his actions was that his government went ahead and increased mortgages from 25 years to 40 years. Of course, it flip-flopped on that one after it realized it had made a mistake. The Conservatives have not done anything really to solidify the banking industry.

Let us look at the credit that would be taken away from our credit unions. For many of these credit unions, which provide competition to our banks and provide excellent consumer services, particularly in our rural regions from coast to coast to coast, millions of dollars would be taken away in the form of tax credits and so forth. Those have gone a long way in the survival of our credit unions, allowing them to grow and provide that competition. In Winnipeg's north end, we have only had a credit union, and it has actually expanded. That has been the impact they have had on that particular industry.

If we talk about budget surpluses and deficits, historically, Conservatives have not done well in terms of having surplus budgets.

We know that for a fact. The reality with this particular government is that when it took office, it inherited a multi-billion dollar surplus. Before the recession even took place, it turned that surplus into a deficit situation. The Conservative government has presented a deficit ever since then.

The government knows that Canadians recognize that at times the books have to be balanced. What does the government say? It says that it is going to balance them in 2015-16. That is after the next federal election.

Why should we believe that? Why should Canadians believe that Conservatives even have the ability to balance the books when they have been such a disaster in terms of their predictions in dealing with balancing the books. They have failed miserably. They inherited this wonderful trade surplus, which brought in hundreds of millions of additional dollars to Canada and which created tens of thousands of jobs.

That surplus turned into a multi-billion deficit. That is the record of this particular Conservative-Reform government we have today.

Speaker after speaker likes to get up and talk about taxes. They like to give the impression that the Conservatives know how to give tax breaks. In the last three or four year, in the last three or four budgets that have been presented by the government, we have actually seen net tax increases, each one tens of millions of dollars.

This is not a government that is friendly to the taxpayer or, in particular, to the middle class of Canada. Some of the taxes that the Conservatives have put into place make us want to give our head a shake and wonder where the compassion is. We have raised these issues in question period.

Imagine now that people want to go to a hospital and visit someone. The government came up with an interesting tax; it is going to tax parking at the parkade or at the meters. We have a new parking tax that is being implemented by the government.

What about victims of crime who require certain medical tests that might be necessary or that would provide peace of mind, if in fact they were able to get the medical tests that they believe are necessary for them? We are talking about victims of crime. The government has found a new way of taxing those victims of crime, for mental services, as an example.

The Conservatives have well over 1,000 new tariff increases. The bottom line is that they can talk all they want; they can say that they are going to cut taxes or that their government believes in cutting taxes, but in reality that is just not true.

There have been net tax increases in the last four budgets. The middle class is being hit hard by the government. People who are 35 to 55, who have a quality job but find themselves unemployed for whatever reason, have to try to find employment, which is hard for this age group, especially if it comes to trying to get a job of some sort of equivalent pay to what they were receiving before. What in this budget allows those individuals to feel optimistic?

We can kind of get a sense of the mentality of the government towards labour by looking at the temporary foreign worker program, a program that traditionally has been exceptionally successful, under Liberal administrations, and that has derived many benefits for all residents of Canada. It illustrates the need and the way in which the government has made a mess of things.

I look forward to any potential questions.

[Dan Albas, Conservative, Okanagan—Coquihalla, BC]

Mr. Speaker, I appreciated the member opposite's speech. I have a couple of questions for him, but first I have a comment.

The member mentioned victims' rights. Obviously, there has been no government in Canadian history that has supported victims as much. The member had a chance, through some legislation that passed through this House, to assist victims by doubling the victim surcharge. The member voted against it, and I would like him to explain his record on that.

Second, the member has said that there have been changes in parking lots adjacent to hospitals. I would like to know whether the member favours having these privately held parking lots receive a government or medical benefit. Is he saying that these private corporations should continue to receive that kind of subsidy?

The member also talked about deficits and the need to bring the deficit down. I agree. I would like to hear from this member what date he proposes, because every time we bring forward spending reductions to bring us back to balanced books, that member's party voices opposition to them. I would like to hear from the member opposite.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, first I will deal with visiting a sick relative in hospital.

Provinces are ultimately responsible for the administration of health care. They are responsible for everything, including parking lots. However, the Conservative government has found a way to generate more taxes by saying that if someone uses a parking lot, whether it is a provincial government parking lot or a private lot, it will be the middle-class consumer who will pay an additional tax.

That is just one example. If we add up all the tax increases, we will find that there is a net tax increase. When the Conservatives decrease a tax, they spend millions of public tax dollars on ads to promote the tax cuts. Obviously, they do not spend money to tell Canadians that they have increased taxes, and they have increased taxes more than they have cut taxes.

[Frank Valeriote, Liberal, Guelph, ON]

Mr. Speaker, you probably noticed the number of Conservative members who started to blush when the member for Winnipeg North spoke the truth about the surplus created by the former Liberal government before the current government took over. He spoke the truth about the former Liberal government refusing to reform or change our banking system, which the current Prime Minister demanded. Thank goodness we did not make those changes. You probably saw them blush when the member mentioned that the Conservatives are now trying to take credit for it. I hope you noticed that, Mr. Speaker. It is important.

I would like to hear from the member about the myth the government is propagating that if we do not increase tariffs, we will be flooded with foreign products and that we have to increase those tariffs, because countries like China no longer need protection. That might be the case if we were producing those products here in Canada, but we are not. Those products will still come in, but those prices will go up. I wonder if the member could speak about that fact.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the Prime Minister has a way of trying to create a situation to justify making some sort of policy announcement. The increase in tariffs are nothing more than a tax cash grab.

It is just like when the Government of Canada, in the last budget, said that it would increase the age of retirement. Canadians will no longer be able to retire at age 65; it will now be age 67. The Conservatives said that it was because we have a crisis and cannot afford it, even though the independent officers recognized that Canada was in an excellent financial position and could afford it. The Conservatives create an impression that is just wrong.

The government knows how to increase taxes in a hidden and cruel fashion that affects our middle class. They should reflect on the degree to which they are taking Canadians for hundreds of millions of new tax dollars in this fiscal year alone.

[Guy Lauzon, Conservative, Stormont—Dundas—South Glengarry, ON]

Mr. Speaker, I am very pleased to stand in the House today to speak to the budget implementation act. Since the depths of the recession in July 2009, our Conservative government has created 900,000 net new jobs, and this was due to our economic action plan. Economic action plan 2013 would build on this strong economic foundation by creating even more jobs, growth and long-term prosperity for Canadians.

Every year leading up to the budget, I undertake extensive pre-budget consultations with my constituents right across my riding of Stormont—Dundas—South Glengarry. This year, I received overwhelming feedback from my constituents that they want a budget focused on job creation, economic growth and a return to balanced budgets.

There is an old saying that if we want to know where people are going, we should look at where they have been. I believe that applies to governments as well, so let us take a look at where we have been.

Since 2006, we have cut taxes 150 times, reducing the overall tax burden to its lowest level in over 50 years. We have cut taxes in every way governments collect them: personal income taxes, consumption taxes, business and corporate taxes, excise taxes and much more. In fact, our strong record of tax relief has meant savings for a typical family of four in 2013 of over $3,200.

Economic action plan 2013 would build on these tax reductions. Economic action plan 2013 would eliminate tariffs on baby clothing, sporting goods and athletic equipment. In total, this represents $76 million in savings for Canadian taxpayers.

Our government also introduced a new temporary first-time donor's super credit for first-time claimants of the charitable donations tax credit. It would encourage all young Canadians to follow in the footsteps of their fathers and mothers and donate to charity. To encourage charitable giving by new donors, this measure would provide an additional 25% tax credit for a first-time donor on up to $1,000 in monetary donations. I see this being a big hit in Stormont—Dundas—South Glengarry, because it is already known as one of the most charitable ridings in Canada.

Our government will also improve benefits for Canadian veterans through changes to the war veterans allowance, which would result in over 3,100 veterans being eligible for this allowance for the very first time. In addition, an estimated 5,350 veterans and survivors would benefit from the change. The war veterans allowance program provides assistance to low-income veterans of the Second World War and the Korean War as well as their survivors. Eligibility for the program and the range of benefits provided depends, of course, on a recipient's income.

Under the terms of eligibility for the current program, a veteran's total calculated income includes the disability pension provided by Veterans Affairs Canada. To better assist veterans who have served their country, our government, as a result of proposed amendments to the Pension Act and the War Veterans Allowance Act, will no longer take the disability pension into account when determining eligibility and in calculating the benefits provided under the war veterans allowance. Our veterans, especially veterans in Stormont—Dundas—South Glengarry, will really appreciate this benefit.

Economic action plan 2013 would also support high-quality, value-added jobs in important sectors of the Canadian economy, such as manufacturing, through tax relief for new investment in manufacturing equipment. To support new investment in machinery and equipment in the manufacturing and processing sectors, this measure would extend the temporary accelerated capital allowance rate for machinery and equipment acquired by a taxpayer, primarily for use in Canada, for the manufacturing or processing of goods for sale or lease. Extending the accelerated capital cost allowance for only two years would increase support for manufacturers by almost $1.4 billion and would create tens of thousands of jobs for hard-working Canadians.

Economic action plan 2013 would also provide better support for job-creating infrastructure in municipalities across Canada by indexing the gas tax fund. That would be $32.2 billion over 10 years through gas tax fund payments and the incremental GST rebate for municipalities. It would provide stable and predictable funding to support community infrastructure projects that will improve the quality of life for all Canadian families.

We have six municipalities in Stormont—Dundas—South Glengarry, and all six mayors and councils are singing our praises for the gas tax fund and for indexing it and making it permanent. I have a couple of mayors of the Liberal persuasion, and even they are singing our praises. That shows how popular this is.

As members know, our seniors built this wonderful country we call Canada. We owe them a huge debt of gratitude. Our government is committed to helping ensure that Canadian seniors receive the compassionate care they need and deserve. The Pallium Foundation of Canada works to improve the quality of palliative end-of-life care for Canadians by creating educational resources for primary care professionals. Economic action plan 2013 proposes funding of $3 million to support training in palliative care for front-line health care providers. This investment would build on the funding provided in budget 2011 being used to support the initiative called the way forward: moving toward community-integrated hospital palliative care in Canada, which aims to help develop new community-integrated palliative care models right across Canada.

Economic action plan 2013 would also reform the temporary foreign worker program to ensure that Canadians are given the first chance at available jobs. To strengthen and improve the temporary foreign worker program, the government is introducing legislation and regulatory and administrative changes that would be effective immediately. They would temporarily suspend the accelerated labour market opinion process; would seek to increase the government's authority to suspend and revoke work permits and labour market opinions if the program was misused; would seek to introduce fees for employers for processing labour market opinions; and would increase the fees for work permits so that taxpayers would no longer be subsidizing the cost. These changes would strengthen and improve the temporary foreign worker program to support our economic recovery and growth and would ensure that more employers hire Canadians before hiring temporary foreign workers.

As members can see, we are building on our successes of the past seven years to make Canada an even better place to live, work and play. Is it not a shame that the two opposition parties will not join in this wonderful, great success story? We are going to do all this, and we are going to eliminate the deficit. What a Minister of Finance we have, and we cannot get the support of the people across the way to encourage this finance minister to slay this deficit. I cannot for the life of me understand why our worthy colleagues on the opposite side of the House will not join us and celebrate this wonderful economic action plan 2013.

[The Acting Speaker, Conservative, Barry Devolin]

The time for government orders has expired. The five minutes of questions and comments for this hon. member will take place following question period.