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

June 3rd, 2013 / 5 p.m.
See context

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I am pleased to speak to Bill C-60. I wish that I had more than 10 minutes, because there is so much to say about this bill.

We were not given nearly enough time at the Standing Committee on Finance. I would therefore like to take this opportunity to waste a few seconds of my precious time to express my opposition to the government's 39th gag order and the fact that the Standing Committee on Finance's study of this bill was a sham.

The committee was responsible for studying Bill C-60. As everyone no doubt remembers, we suggested splitting up the bill in the interest of serving Canadians well. We wanted each committee to have an opportunity to consider relevant parts of the bill, to study them fully, seriously and in depth, instead of looking at the mishmash of measures in this omnibus bill over what amounted to barely two and a half meetings. The committee did its clause-by-clause reading, then wrapped it all up in the blink of an eye with almost total disregard for the witnesses and the integrity of the committee process. It is truly appalling.

I would like to get right to the point and focus on changes to the Investment Canada Act. I have chosen to discuss this aspect as a reminder that, in my riding of Beauport—Limoilou, White Birch Paper's Stadacona mill met with what I would call a tragic fate. I have brought this subject up several times already.

In 2003, when an American investor—more specifically, an unscrupulous investor from New York—bought the Quebec City mill, it employed 1,600 people. At this time, after a nasty lockout and numerous measures to defraud pensioners and workers, only a little over 200 people remained employed at that mill. The mill is operating at well below half of its capacity.

I would like to go into a bit of the history of what happened before the 2011 election. When the lockout was imposed, over 600 employees were working there. Given their working conditions, the work was spread over three shifts and was done around the clock. The order book was full.

This Quebec City industrial gem was altered completely. It was virtually abandoned and left with an uncertain future. It is hard to imagine that this mill could be revived anytime soon, especially since the transaction whereby White Birch Paper was sold to Black Diamond Capital is linked to one of the shareholders, namely, the son of the former owner. That kind of absolutely unbelievable manoeuvring revealed the flaws in the Investment Canada Act.

I mentioned the unfortunate complicity on the part of my Liberal colleagues who agreed, under absolutely false pretenses, to drastically raise the review thresholds for foreign investments. That threshold will now be $1 billion. For the minister involved, this will be something quite extraordinary in the course of a year, something that will be worth mentioning, given the number of transactions of that size that we are likely to see.

Meanwhile, any number of highway robbers, thieves and fraudsters can freely and openly engage in unfair competition with honest investors and real entrepreneurs who care about developing businesses, taking on missions, diving into a great business adventure and taking positive initiatives, as well as providing opportunities for workers and our young people. It is truly appalling.

Unfortunately, we know that Bill C-60 will pass, barring some unforeseen incident. We can always hope. In the event that a number of government members are regrettably absent, we will gladly vote down their bill.

I would like to talk about the Investment Canada Act and, more specifically, about expanding the criteria. The Minister of Industry will have very few reasons to review transactions in Canada, and that represents a threat to the Canadian economy.

I was on the Standing Committee on International Trade for one year. I have no problem welcoming foreign investors with open arms. However, we cannot be naive. We need to take at least a few precautions when a so-called investor tries to acquire a Canadian business. It is no different from when a business owner or our financial institutions—our banks—make enquiries about consumers who make significant transactions. That is not unusual; it makes sense.

It is common for a credit check to be conducted when someone is buying a house or car or signing a lease.

How can the government be so lenient when it comes to entire sectors of our economy? Millions of Canadians suffer, directly or indirectly. They suffer directly because the company cuts operations and business is threatened. They suffer indirectly because when working conditions worsen and businesses become filled with cheap labour, they take on other forms, creating unfair competition for business owners who play by the rules and actively participate in Canada's development. A huge number of people are affected.

The erosion of our industrial fabric, our economic fabric and our social fabric is a liability and a disturbing legacy to leave for future generations, particularly since the government is moving forward at top speed. It is absolutely incredible.

Unfortunately, another part of this pseudo-investment is the decision to terminate the pension fund for current and retired employees of the Stadacona mill of White Birch Paper. There will be new developments on that front in the coming days. I continue to watch it all very closely.

Providing our workers and retirees with much less attractive retirement benefits will also undermine the sustainability of our economy to a certain extent. The reality is that having a large number of retirees is also a stabilizing factor in turbulent economic times. We have seen that in the Quebec City area.

I could have talked about the elimination of the tax credit for labour-sponsored funds, which is not in Bill C-60, but is another bad measure. I could also have talked about the creation of private pension funds that, unfortunately, will make workers shoulder the entire responsibility by making employer contributions optional. This will also make it much more difficult to save for retirement.

I am pleased to have spoken out against the type of measures adopted. There is no need to worry that all we are going to do is complain. We are laying the groundwork for our future and for taking power and correcting this situation.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 4:30 p.m.
See context

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I am pleased to debate Bill C-60, the budget implementation act. In answer to the previous question, the parliamentary secretary should know that the debt has increased. Again, we are seeing a further addition to that total debt through this budget.

It is interesting that when the Minister of Finance gave his budget speech, he committed to balancing the books by 2015. Well is that not wonderful? The only problem with what the minister said was he has never hit one single target he has ever set, when he was minister of finance with the province of Ontario or when he was Minister of Finance with the federal government.

In fact, the government came to power when there was an annual surplus. Conservatives squandered that away. Now, so the parliamentary secretary understand because he is part of the cabinet, we have a government that is the biggest spending government in Canadian history. It has cut more services and programs than any other government in Canadian history. It is still in deficit spending.

My colleague, the member for Kings—Hants, in his remarks pointed out that there were a number of areas in the bill that we could support, but there were a number of areas that we could not. I have said in this place before that one of the problems is that for some of those technical areas we cannot really get into a discussion and debate on because they are all tied up in the omnibus bill. This one is not as bad as previous ones in covering so many topics, but it still is bad and takes away the ability to really debate in-depth and hold proper hearings on specific sections that are affected by Bill C-60.

My colleague from Kings—Hants indicated that there were two key reasons that we would continue to oppose the bill. One is the legislation threatens the independence of the Canadian Broadcasting Corporation. In the section in Bill C-60 that talks about crown corporations, Treasury Board collective bargaining, it would allow the cabinet to require that a crown corporation have its negotiating mandate approved by the Treasury Board before beginning negotiations.

It would also allow cabinet to require that a Treasury Board employee attend and act as an observer during that collective bargaining process. In other words, the real ability of a crown corporation to operate in its own right would be taken away by Treasury Board. That is just pure wrong.

We know the dislike that the Prime Minister, the cabinet and government has against the CBC. They are basically going to have the mandate to order the crown corporation, which is supposed to be independent of government, on how it should negotiate. This really undermines that independence in a very serious way.

The second area my colleague from Kings—Hants mentioned, which I agree with, and as our leader has said many times in this place, was the budget continued to raise taxes on middle-class Canadians to pay for the Conservatives' wasteful spending. That is so evident.

It is interesting that when the Minister of Finance got up and read his budget speech and talked a bit about the budget, he outlined the tax relief on hockey equipment, et cetera. What he failed to talk about were all the areas where there would be really, in effect, tax increases or cost recovery fee increases and other measures that would place a financial burden on middle-class Canadians. It is middle-class Canadians who make our country tick. What we see in the budget are a number of tax measures that are really making it much more difficult for Canadian middle-class families to make ends meet.

It is not just the tax measures. The government members get up and say that by our not wanting to increase the tariffs on China, we are putting a damper on creating jobs in Canada. That is not true at all. The fact of the matter is that none of the low-end bicycles are produced in Canada. The higher end, the $5,000 and $6,000 bicycles, are, in fact, produced here. It goes to show how narrow the focus of the government is. It tries to paint everything with the same brush. As a result, ordinary Canadians are facing increased costs and certainly a lot fewer services.

The budget also raises taxes on small business owners by some $2.3 billion over the next five years, directly hurting about three-quarters of a million Canadians and risking Canadian jobs. That is what the budget actually does. Employment insurance premiums will go up. There is a huge cost to Canadians.

In Bill C-60 there was an opportunity for the government to show some vision for the future. Where that vision really needs to be shown is in the whole area of youth employment. That is an absolute missing factor in this particular budget. Canada's labour market for young Canadians has yet to recover from the recession. Unemployment for young people is around 24%. Young people need the opportunity to have a job to help pay for their education but also to give them skills in the employment field and in the business market. Youth employment has been completely ignored by the government. It had an opportunity to do something about Canada's future, but it is failing dismally.

In fact, as has been said in the House a few times, there have been ads during the Stanley Cup playoffs hockey series about Canada's action plan. The government spends on Canada's action plan ads and talks about the student program, but there are a lot of disclaimers at the end of the commercial. It talks about it, but consultations with the provinces on that program have not even started. It is not up and running, and here is the government spending on ads, when the cost for one of those ads, under the current assistance for student work, is equivalent to 32 student summer jobs, in terms of the federal government share. Every time Canadians look at those ads, they must think that there is money that could have been spent more appropriately creating student summer jobs. That is what really needs to be done, and the government failed dismally in that area.

The government will talk about the incentive for greater charitable donations for young people. However, unless it is a family of wealth, and that is not the middle class, that is not going to make any difference either.

To close, this budget is terrible for Prince Edward Island. In my province, the cuts to the Canadian Tourism Commission mean stopping its advertising in the United States market. That means fewer tours coming to Prince Edward Island to help our economy.

There would be cuts to agriculture. That would hurt us in Prince Edward Island. There would be cuts to the fishery, which would hurt us as well.

This is a dismal budget, and the government should just admit it.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 4:25 p.m.
See context

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, it is a pleasure to join in the debate on Bill C-60, the budget implementation act.

I would think that anybody who speaks to me about CPAC, the House of Commons and watches the proceedings outside of question period are usually pretty dialed in to the issues facing the nation. They have a great interest in the issues of the nation and there could not be one any more important than the budget implementation act.

My good friend and colleague has been here for the last 13 years so he should be able to answer this question on the budget.

The budget did not have a lot of numbers in it and my good friend's speech was not really overwhelmed with a lot of numbers either. However, could the member tell us, and the people watching at home would really like to know, what the country's accrued debt now stands at? How much debt is our country currently carrying? Just the number would be fine.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 4 p.m.
See context

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, I rise today to speak to this so-called budget bill. This Conservative omnibus bill goes far beyond any legitimate budget implementation. It contains an entirely new department of foreign affairs act and would amend nearly 50 pieces of legislation. This is the Conservatives third attempt to avoid public scrutiny and proper parliamentary consideration of their proposals.

By tabling such an unwieldy and wide-ranging bill, with such a short timeframe for deliberations, the government is not only trying to deny both Parliament and the public the chance to study the implications of these sweeping changes but is undermining democracy.

It is interesting to note that the Conservatives claim that this legislation would lead to growth in the Canadian economy. In fact, the Parliamentary Budget Officer estimates that this last year's trifecta of budget bills and fiscal upgrades would lead to a loss of 67,000 jobs. The PBO predicts that the unemployment rate will remain stagnant at over 7%.

In my own city of London, the unemployment rate sits at more than 9%, with little hope of improvement in the near future. Families are suffering. Small and medium businesses are suffering. The community is facing real hardship, and the Conservative government is without any meaningful remedies. We hear a great deal of high talk from the Conservatives, and we certainly see their expensive action plan commercials, but we have not seen any creative or innovative ideas when it comes to economic stimulus and relief for communities such as mine.

Bill C-60 contains nothing to make these economic conditions more manageable for families. There are no job creation measures, yet there are tax hikes on everything from hospital parking to credit unions. Those tax hikes for individuals will cost Canadians over $8 billion. Additionally, the Conservatives are raising tariffs on over 1,200 goods by $333 million but are doing nothing to ease record levels of household debt.

The Caledon Institute, in its budget analysis, notes that good jobs have disappeared in Canada. We know that. I am going to quote from the institute report:

The decline of manufacturing has meant the loss in the past 10 years of more than 700,000 better-paying jobs that typically came with decent benefits and pensions. Its demise has contributed to the hollowing out of the middle class not only in Canada but throughout the developed world.

The only government response to problems in the manufacturing sector has been austerity, cuts to programs and belt tightening. Sadly, these austerity measures have not worked. Around the world, austerity has only led to deeper recession, and here in Canada, the unnecessary focus on the deficit has resulted in a sluggish economy.

An article in The Economist said that the government's plan, which relies on spending restraint and unusually high revenue growth, is seen by many as wishful thinking.

Carol Goar, writing in the Toronto Star, said:

Since he [the Minister of Finance] began chopping programs and expenditures, the economy has drooped, the job market has sagged, consumers have pulled back and the corporate sector has hunkered down, sitting on its earnings. The same formula has delivered worse results in Europe.

The federal government has the opportunity to avoid the disastrous consequences of austerity to jump-start the economy and make a long-term investment in our social, economic and environmental future. Instead, the Conservative budget plan offers a host of proposals that will only weaken families, workers, the environment and seniors.

Seniors are often vulnerable to even the best of economic climates. This legislation would do nothing to address the retirement security of those who face a loss of their savings.

In a previous budget bill, the government made changes to old age security and GIS and raised the age of eligibility for OAS and GIS from 65 to 67. The receipt of GIS and OAS has a critical impact on poor seniors in this country. By raising the age of eligibility, the government is callously denying those who are struggling at hard, physically demanding jobs and those trying to manage on provincial support programs any hope of a dignified retirement at age 65.

In this budget, Conservatives offer only a vague and unexplained reference to low-cost and secure pension options. Instead of raising the GIS to ensure every senior is lifted out of poverty, or opening up the CPP/QPP to allow seniors to increase their savings, the Conservative budget would implement the kinds of policies that are of no real value to the retirees of this country. The Conservatives' pooled registered pension plan does little to help with pension savings for the vast majority of Canadians.

Although numerous organizations, from the United Nations to Statistics Canada, have released reports emphasizing the need to address affordable housing and poverty issues for seniors, this budget makes no mention of either of those. In point of fact, the Conservative government has absolutely no interest in the lack of affordable housing in Canada, and even less interest in the fact that more than 250,000 seniors live in poverty.

By contrast, the budget bill before us has several measures to improve the government's ability to catch CPP/QPP overpayments and ensure the government is able to recover that money. While the recovery of inappropriate payments is a good thing, we need look no further than the controversy surrounding certain senators. I am concerned that, on the other hand, the government is failing to ensure that Canadians have access to money owed to them. The Social Security Tribunal set up by the government is not only rife with partisan appointments, but many fear the reduced number of tribunal members will make it painfully slow in its decision making, leaving poor people waiting and waiting.

The Conservatives seem to have the attitude that the taxpayers are out to cheat the government, and that must end. I believe that the government should be serving the taxpayer and that our priority should be to ensure that Canadians are receiving the benefits and services they require and have earned. It is a good thing to ensure that overpayments are recovered, but not without ensuring that those who are slipping through the cracks are caught and helped as well.

I would also like to highlight here the pension income splitting that the Conservatives introduced in a previous budget. The Caledon Institute of Social Policy stated:

The Budget also pats itself on the back for the pension income splitting provision, a very expensive ($920 million) and regressive tax break introduced in 2007 that favours wealthy senior couples. A senior couple with a modest private pension of $20,000 a year will realize a grand total of $310 in federal income tax savings as a result of income splitting. For a couple with $30,000 in pension income, the savings increase to $802. However, a well-to-do couple with $100,000 in pension income will see a tax reduction of $7,280 — more than nine times that of a couple with $30,000 in pension income, and more than 23 times that of a couple with $20,000 in private pension income.

And what of single seniors? There are many single women and men who are unable to benefit at all. I would also like to highlight that seniors are still living in poverty in this country. Those particularly affected are single senior women who tend to have significantly less pension savings. We can and should do more for those living out their senior years making the tough choices between housing, food and medication. It is shameful that this budget would do nothing to address the poverty faced by seniors in Canada.

In fact, the priorities of the Conservative government seem out of touch with the priorities of many Canadians. The Canadian Centre for Policy Alternatives provides a good example of how exactly to remedy the lack of good public policy. It calls on the Conservatives to address poverty in a meaningful way by prioritizing improvements in the incomes of all low-income and middle-income households, better public pensions, higher minimum wages, the widespread adoption of living wage policies; and improving support for the ill, the unemployed, the young and the old.

This is a travesty of a budget. That is the best I can say of it. It borders on neglect for those who need support the most.

As members can see, there is a good deal more to this budget bill than just budget making. It would go far beyond anything that is legitimate, and I have to question it. I have to say that it is deceptive, it lacks transparency and I hope in 2015 Canadians will hold the Conservative government to account.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 3:45 p.m.
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Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, it is indeed my pleasure today to speak to elements of Bill C-60, an act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

I want to talk about some of the things that are so important in this budget, which would really make a difference, especially to my province.

The Federal-Provincial Fiscal Arrangements Act piece of Bill C-60 is extremely important to Manitoba. As members know, 40¢ on the dollar has come from the federal government basically to keep Manitoba going.

This new legislation would amend part I, part I.1 and part V.1 of the Federal-Provincial Fiscal Arrangements Act. These changes are required to implement the renewal of the equalization and territorial formula financing programs as the minister announced in December of last year at the finance ministers meeting.

New Brunswick and Manitoba would be protected because of this legislation against a year-over-year decline in their total major transfers. It would eliminate provisions that would be no longer required for the administration of the equalization and TFF programs and would clarify the provisions setting out the escalators in TFF and the Canada health transfer. This is extremely important to Manitoba.

In terms of part I, this legislation would extend the authority to make equalization payments to provinces to March 31, 2019, fulfilling the commitment to renew the program for an additional five-year period.

In addition, the legislation sets out payments to New Brunswick and Manitoba that would ensure their total major transfers in 2013-14 would be no lower than what they were in the previous fiscal year. A change would also be made to clarify the alignment of the timing of calculations and the associated payments. The remaining changes would eliminate elements of the legislation no longer required for the administration of the program, including those related to amounts determined for previous fiscal years that expired provisions related to the 2005 offshore arrangements with Nova Scotia, Newfoundland and Labrador.

This might seem insignificant to provinces that do not have these challenges. However, for Manitoba, this is very helpful to our province. When I look at Bill C-60, it is indeed an economic action plan that would build our Canada, create more jobs and pay attention to the needs of businesses across Manitoba and our nation.

I want to talk a bit about the Canadian Youth Business Foundation.

This measure in Bill C-60 proposes to provide funding of $18 million in multi-year support for the Canadian Youth Business Foundation to enable the foundation to continue its support for young entrepreneurs between the ages of 18 and 34. These young entrepreneurs do not need a hand out, they need a hand up, and with the Canadian Youth Business Foundation, that would happen.

The Canadian Youth Business Foundation is a national not-for-profit organization that works with young entrepreneurs to help them become the business leaders of tomorrow. They get mentorship, expert advice, learning resources and start-up financing. Over the past 10 years, the foundation has worked with 5,600 new entrepreneurs helping to create 22,100 new jobs across Canadian communities, which is very exciting to our economy and the young business people who have their hopes and dreams of building their own futures here in our great nation.

There are many other things that have happened to help youth, and I want to talk about Indspire, which is a measure that also centres on youth.

Bill C-60 would provide $5 million in 2013-14 to Indspire to provide post-secondary scholarships and bursaries for students who are registered as Indians under the Indian Act and for Inuit students. A further $5 million for 2014-15 would be provided through the estimates.

Indspire has a proven record of success. It has provided scholarships to over 2,200 aboriginal students annually and has raised significant support from a range of corporate donors to help support student success. With this new investment, Indspire would be able to provide scholarships to thousands more registered first nations and Inuit youth, helping them reach their potential and strengthening aboriginal communities across the country.

What makes Bill C-60, the economic action plan 2013 act, so important is that it goes right to the essence of what Canadians are all about. It talks about needs, as I outlined at the beginning of my speech on Manitoba and the transfer payments. It outlines the need to build youth, not only young entrepreneurs but youth who would be helped in their education with these scholarships.

The economic action plan also looks at another vulnerable community in our country, and that is older people. We will have more senior citizens in two years than we have young people. There needs to be real attention paid to front-line health care providers.

I want to talk about the Pallium Foundation of Canada. This is another very good initiative. This measure proposes to provide $3 million in multi-year support to the Pallium Foundation of Canada to support training in palliative care for front-line health care providers.

With an aging demographic, when our seniors, who have built this country, come to end-of-life situations, they need to be honoured and cared for. Often they like to be cared for in their homes. The government has committed to helping ensure that Canadians receive the compassionate care they need.

The Pallium Foundation of Canada works to improve the quality of palliative care and end-of-life care for Canadians by creating educational resources for primary care professionals. These primary care professionals are the ones who take care of these very vulnerable populations.

Economic action plan 2013 proposes funding of $3 million over three years to the Pallium Foundation of Canada to support training in palliative care for front-line health care providers. This investment builds on the funding provided in budget 2011 that is being used to support the initiative called the way forward: moving towards community-integrated palliative care in Canada, which aims to help develop new community-integrated palliative care models across this country.

Having said that, we know that a lot of people are not trained in end-of-life issues. Having this front-line training for these very important front-line health care workers is of paramount importance to the well-being of the elderly person and others who are coming to end-of-life situations and are receiving palliative care. It is also important to their families to put in those supports to help them see their way through this very difficult time.

When we look at all these measures, we are cognizant of the fact that to be able to provide health care and all these things we need, we need research.

I am just starting, and I find that I only have a minute left. I have so many good things to talk about in this particular economic action plan.

I want to finish off with the importance of research. Genome Canada has been given a very big boost since our government came to power. It has provided $165 million for multi-year support for genomics research through Genome Canada. This research has been very important for health care.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 3:45 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, that is a very good question.

We have seen an anti-labour agenda from the Conservative government. It has done it through the back door with private members' bills. Bill C-377 is a really good example of a bill that tried to impose the kinds of reporting requirements on the trade union movement to which other organizations were not subject.

Bill C-60 is another attempt to take a run at crown corporations and the collective bargaining process that is in place. This, again, plays into the government's agenda and people need to be concerned about what is going on.

Our country is a stronger place because of fair and free collective bargaining and we do not want processes that interfere with that.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 3:40 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, in my riding of Nanaimo—Cowichan, there are a number of credit unions. It is an area that has been hard hit at times with changes in the resource industry. For example, in a small town called Youbou, the mill closed down a number of years ago and in Lake Cowichan, a neighbouring small town, found itself at a point where the big banks were closing down their branches.

With regard to the deductions for credit unions, it allowed them to occupy a space where big banks would love to see some of the credit unions close down so they could occupy a monopolistic space in some of the smaller towns. Therefore, it is absolutely essentially that the support we provide for credit unions stays in place so they can continue to provide the community service.

I know credit unions in Nanaimo—Cowichan are a vital part of the community. They are the ones supporting local activities, local businesses and opening the doors for businesses that might not be able to get loans and support from the larger financial institutions. It is really disappointing to see this in Bill C-60. It is an important way for many of the communities to survive financially.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 3:30 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, New Democrats oppose Bill C-60 both with regard to the process and with regard to the content. This is another example. The bill is 115 pages and will make amendments to 49 different pieces of legislation. Of course, a bill of that scope and magnitude deserves thorough examination by members of Parliament.

Because of the time allocation imposed on the bill at both second reading and report stage and because of a very unsatisfactory process when the bill was before committees, the House has not had an opportunity to study the bill in the kind of depth it should be studied.

Part of the concern is that this budget implementation bill would do a number of things. First of all, it would raise taxes on Canadians by introducing tax hikes on credit unions and small businesses in addition to hiking tariffs on thousands of products that were announced in the budget.

It would give Treasury Board sweeping powers to interfere in free collective bargaining and impose employment conditions on non-union employees at crown corporations. It would amalgamate the Department of Foreign Affairs and International Trade and the Canadian International Development Agency with no reference to the ODA Accountability Act regarding the purpose of aid.

It would amend the Investment Canada Act to dramatically reduce the number of takeovers subject to review and introduce new rules regarding foreign state-owned enterprises. It proposes an inadequate Band-Aid fix for the flawed approach to labour market opinion in the temporary foreign worker program and proposes to increase fees for visitor visas for friends and family coming to visit Canadians. It would push ahead with work on a national securities regulator instead of working consensually with the provinces, and it would remove the residency requirement for committees of directors for financial institutions such as banks and life insurance companies.

People in my riding of Nanaimo—Cowichan pay close attention to pieces of legislation before the House, and I have had a number of concerns raised. One of them that I mentioned was the amalgamation in the Department of Foreign Affairs and International Trade.

This is an example of an email sent to me by a constituent. This person said:

I am a constituent in your riding and a concerned citizen who cares about efforts to end global poverty and promote human dignity.

For the past 45 years, the Canadian International Development Agency (CIDA) has supported the work of Canadian organizations involved in international development. Thanks to this collaboration, they have made a tremendous contribution in supporting the efforts of poor communities gain access to education and healthcare, ensuring food security, and promoting human dignity.

We have seen the results of this good work and I want Canada to remain as engaged as I am.

I am asking you to ensure that CIDA's mandate of poverty reduction and promoting human rights remains central, and that sufficient resources will be allocated to fulfill that mandate.

I also want to ensure that the many Canadian organizations, which have an excellent track record in responding to the needs of the poor, will remain key partners of the Government in its actions to end global poverty.

That is just one example of the kinds of concerns that have been raised by my constituents with regard to proposed changes in the bill. That particular amalgamation of CIDA with foreign affairs is an important matter that should have an independent review and not just be rammed through in an omnibus piece of legislation.

Another one, on which I received literally over 1,000 emails, is the CBC. On Vancouver Island, CBC is a much-loved institution. For years, islanders fought for a CBC presence on Vancouver Island. Finally, a number of years ago, we ended up with CBC Victoria. In a recent survey, CBC Victoria was one of the most-listened-to radio stations in the morning. That speaks to the way people see the CBC on Vancouver Island and in my riding.

The bill threatens to make some changes. In this connection I want to refer to a letter of May 23 that was sent to the Prime Minister. It was signed by dozens of people, including academics and so on. They said:

Dear Prime Minister:

We express deep concern about a proposal on pages 108/109 in Bill C-60 that would undermine the arms-length relationship between the CBC, our national public broadcaster, and the federal government.

The Broadcasting Act states that the CBC “shall, in the pursuit of its objects and in the exercise of its powers, enjoy freedom of expression and journalistic, creative and programming independence”.

As you know, this statement places the CBC on a par with its counterparts in other free and democratic countries. It is what makes the CBC a public broadcaster - as opposed to a state broadcaster. Independence from governmental interference is the key distinction between the two - throughout the world.

Bill C-60 proposes to amend the Financial Administration Act to permit the government to set the mandate for and audit CBC's collective bargaining as well as give the government a veto over CBC's collective agreements. This means that the government would become the effective employer of CBC's personnel, including its journalists, producers and story editors.

Such powers would intrude into CBC's independence well beyond it employee's compensation. Conditions of work are an integral part of CBC's collective agreements with its various employee groups. Such conditions currently provide assurance of the integrity of CBC as an independent national public broadcaster, as required under the Broadcasting Act.

For example, conditions of work in the CBC's collective agreements ensure that:

Journalists cannot be pulled off assignments without good reason.

Journalists do not have to fear retribution, including loss of employment, as a result of reporting the news.

CBC is required to protect the authority of producers over the content, form and budget of a program.

Producers cannot be removed from a program without justification, and they have the right to refuse to produce a program if they do not agree with its content or form.

Were Bill C-60 to pass without amendment, any government could change such provisions in its own interest--at great cost to Canadian democracy.

The federal government already has more than ample influence over CBC through appointment of its CEO and board of directors, and the allocation of its federal grant.

We therefore urge in the strongest terms that Bill C-60 be amended to remove all references to the CBC.

As I mentioned, that is the full text of the letter that was sent to the Prime Minister on May 23.

The New Democrats did attempt to amend Bill C-60 by putting forward a motion that would have seen the references to CBC carved out of the bill, introduced as a separate bill in the House of Commons and then we would be able to have a full debate on it. Unfortunately, the Conservatives did not agreed to those amendments.

As I mentioned, I have received over 1,000 emails on this matter. These are a couple of examples.

One person wrote:

The CBC must be independent from the government. That is why I object to the government taking control of the lion's share of the CBC's budget. The Prime Minister should not have direct control of the salaries and working conditions of CBC journalists and creative staff. I do not want any politician exercising such control over our national public broadcaster. I urge you to abandon this plan.

Another person wrote:

I am writing to object to the proposal to undermine the CBC's editorial independence contained in Budget Implementation Bill C-60. No public broadcaster anywhere in the free world faces the degree of political interference that is proposed for the CBC in Bill C-60. This Bill would give the government the opportunity to turn the CBC into a political propaganda machine rather than a public broadcaster. For the sake of our country and our democracy I urge you to work to have provisions concerning the CBC removed from Bill C-60.

That is just a small sample of the emails that came in.

I also want to touch on another aspect with regard to Bill C-60 and the importance of maintaining that journalistic independence. In a column I wrote recently, I was referencing an organization called Reporters without Borders. It is responsible for issuing the press freedom index.

It indicated that Canada had fallen from 10th to 20th place. This report states that Canada is now behind Costa Rica, Namibia and Lichtenstein. The RWB has blamed the Conservative government's action and incessant attacks on the journalistic principles of anonymous sources for the slip in the ranking.

This is evidence of the kinds of concerns that have been raised by my constituents and thousands of people across Canada.

We have also seen another attack in another bill that is a private member's member before the House, Bill C-461, an act to amend the Access to Information Act and the Privacy Act (disclosure of information), and would put some further restrictions on CBC's abilities to operate independently.

Sadly, with the budget implementation bill, we have seen an effort to shut down parliamentary debate. The efforts to curb CBC's journalistic independence is just another example of the lack of transparency and accountability that the government continues to demonstrate through its various pieces of legislation that it has rammed through the House.

I encourage all members to vote against Bill C-60 and ask the government to bring back a bill and a process that allows us to fully debate such legislation that would have such far-ranging effects.

Economic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 3:30 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I was going to say that I am pleased to rise to speak to Bill C-60, but actually I am disappointed to have to rise to speak to Bill C-60 because of the process that has been used to get the bill before the House and to ram it through.

New Democrats object—

The House resumed consideration of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:45 p.m.
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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I thank the member for that very thorough speech. One point she touched upon in her speech was the issue of the CBC, the Canadian Broadcasting Corporation. In my riding, Nanaimo—Cowichan, on Vancouver Island, the CBC is much loved. I have received hundreds of emails expressing concern about what Bill C-60 proposes to do with regard to the CBC. In fact, a number of people have raised concerns about having far too much government control over the CBC in terms of its collective bargaining and in terms of perhaps interfering in journalistic freedom.

The NDP proposed an amendment to the bill that would have seen us hive off the aspect dealing with the CBC as a separate piece of legislation, which would then have enabled us to debate it fully and study it fully at committee.

I wonder if the member would comment specifically about the government's intent to limit debate and to limit scrutiny of these key pieces of legislation that would be impacted by Bill C-60.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:35 p.m.
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NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Speaker, I am pleased to be speaking to Bill C-60 today. I know that many of my colleagues would have liked to have the time to speak today because the bill is quite complex. It is important that our voices be heard here in the House so that we can discuss the bill and have a healthy debate.

I want to begin my speech with a personal comment that I think is appropriate here. With this budget, the government is forcing Canadians to tighten their belts. It is asking workers, parents, youth, the unemployed, seasonal workers, seniors, middle-class families and so on to get with the program and accept a budget that is clearly not in their interest and will require an even greater effort on their part to make ends meet. I find that appalling.

There are a number of scandals, not just one, currently plaguing the government. While Canadians work to pay their taxes, senators are spending wildly and claiming ineligible expenses. Unelected senators have no respect for Canadians. While senators are banking an extremely generous salary, taxpayers are paying for their antics. As if that were not enough, the government has lost track of $3.1 billion. Honestly, how it is possible to lose $3.1 billion? I simply cannot get over it. It is incomprehensible.

A number of my constituents telephoned me personally, in a panic, when that hit the news. They are asking me to do something, to take action. My opposition colleagues and I are doing everything we can to get some clarification, and we want answers. Canadians deserve answers.

The government should be ashamed of this budget. We are obviously going to vote against it. The budget should contain measures that make life more affordable and create jobs for Canadians. Instead, the government is raising taxes on a number of consumer items, such as hospital parking, safety deposit boxes, labour-sponsored investment funds, bicycles and baby strollers. These tax hikes will cost Canadians nearly $8 billion. That is far too much. People have had enough.

One important point caught my attention: the elimination of the tax credit for labour-sponsored funds. This decision will affect the middle class and its ability to save for retirement. It will deprive Quebec SMEs of significant support for their development. Instead of creating jobs and supporting local initiatives, the Conservatives are going after the unemployed, families, seasonal workers and especially our regions.

The Parliamentary Budget Officer analyzed the economic situation and the government's bills. She found that budget 2012, the 2012 update and budget 2013 will result in the loss of 60,000 jobs by 2017 and will cause a 0.58% decline in the GDP. Needless to say, this will have an impact on our country's economic growth.

I would like to talk about transparency and control of the CBC. The Conservatives are trying, for the third time since the beginning of their mandate, to circumvent parliamentary and public oversight by trying to sneak this budget through. This week, they went even further by imposing a gag order to shut down debate. This is the 39th or 40th gag order we have seen in the House. Parliament should be a place where elected officials can show respect for their constituents and have a good discussion, a good debate. What are the Conservatives afraid of? Transparency is definitely not part of the government's values.

Another change this bill makes would enable the government to compel a crown corporation to have its negotiating mandate approved by the Treasury Board so that it can reach a collective agreement with a union, particularly in the case of the CBC. Canadians do not want to see the government exercise that kind of control over our national public broadcaster. Freedom of speech is a fundamental right, and the CBC must be able to retain its independence.

On this topic, my colleague, the NDP heritage critic and member for Longueuil—Pierre-Boucher, had this to say:

The federal government already appoints CBC’s directors and determines its annual budget. That’s already a lot of control over a public broadcaster that must remain independent in its role as watchdog of democracy...Bill C-60 is another attempt by the Conservatives to interfere in CBC’s affairs and we cannot let it pass.

The government is flying in the face of common sense and ignoring protests by moving forward with these misguided measures. Cuts to environmental research are another weakness of the budget. Agriculture and Agri-Food Canada, AAFC, is one of the departments that is most affected by the budget cuts. Close to 700 workers just recently found out that they will lose their jobs and that a number of research centres will close.

At the Standing Committee on Agriculture and Agri-Food, several witnesses told me that research and development are key to the future of agriculture in Canada. When the government eliminates funding for public research, it lets the private sector—often big, multinational companies—do its own research. That is alarming.

AAFC will eliminate 350 jobs: 144 commerce officers, 79 scientists, 76 information technology officers, 29 engineers, 14 biologists, 5 research directors and 3 procurement officers.

This also makes me think of the decision that will affect the Montreal Biosphere, the only environmental museum in North America. This is another one of the Conservative government's attacks on science education. When most of the staff was laid off, this institution lost scientific and environmental expertise. Through this decision, the Conservatives are failing to live up to a 25-year agreement between the Government of Canada and the City of Montreal.

Making a budget is all about making choices. I, personally, decided to keep the same car I had before the election and pay off my student loans. I make responsible choices. Presenting a budget is a choice. It is not easy. I understand that it is complicated. However, in this budget implementation bill, the Conservatives are failing families, workers, the environment, job creation and science. At the end of the day, Canadians are the ones who are going to have to pay the price.

I hope the government will realize how inconsistent it is being. It is asking people to tighten their belts at a time when it is involved in scandals, such as the ones in the Senate. Making cuts in areas as important as science and the environment does not make sense, especially when we know that this government lost track of $3.1 billion. Instead of putting research into the hands of industry, the government should be investing in research and making more of an effort to find the missing $3.1 billion.

Nevertheless, I am sure that the NDP will be able to turn things around. Canadians need to feel like they can trust the people they vote for. They need to be able to identify with the people that they vote for and that is where we come in. We are voting against this bill.

I am ready for questions and comments.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:30 p.m.
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Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, Bill C-60 is an important tool to get our budget implemented to address, among many things, a skills mismatch in our country and getting people into open jobs. I know that is a big problem out west, particularly, as it is in Essex County, in the machine, tool, die and mould sector, which has plenty of openings.

I wonder if the member could comment on the importance of the new Canada job grant as a tool for overcoming or bridging that skills mismatch to get people who are either unemployed or underemployed into those meaningful positions in order to keep the economy moving.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:30 p.m.
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Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Mr. Speaker, I would like to point out a bit of irony. Opposition members frequently say there is too much in the bill and that there should be discussions at the environment committee and with natural resources. I would say to the member that those are appropriate discussions for committees designed to deal with that. We have made some important improvements in the environmental legislation in previous budgets in order to provide balance.

Today, we are talking about Bill C-60, the budget implementation act, and very important measures, whether it is the Nature Conservancy of Canada, which is incredibly well received, the Pacific salmon stamps, the money that is going to go directly to the organization to support the conservation of habitat. We are here to speak to Bill C-60, but I certainly believe we are having dialogues at many different levels on the important issue of energy.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:20 p.m.
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Kamloops—Thompson—Cariboo B.C.

Conservative

Cathy McLeod ConservativeParliamentary Secretary to the Minister of National Revenue

Mr. Speaker, it is certainly my pleasure and honour to stand and speak in favour of today's pro-economic and job-growth legislation, Bill C-60, economic action plan 2013 act, No. 1 at report stage. Certainly, like the Parliamentary Secretary to the Minister of Finance last week, I also would like to thank the finance committee members and the great chair, the member for Edmonton—Leduc, for their comprehensive and timely study of the bill. I also would like to extend a very special thanks to every witness who appeared in front of the committee to speak to the significance of the bill and Canada's economy.

In my time today I would like to focus on a number of specific measures contained in the legislation that received some attention during our committee study. First, members will no doubt be familiar with the important adjustments to the Canadian tariff systems that were announced as part of economic action plan 2013. In spite of what the member for Kings—Hants indicated, I would really like to talk clearly about what this is intended to do.

This was in essence a foreign aid program and it was created in the 1970s by western countries to give companies from poor third world markets preferential access to our domestic market. Most western countries that maintained the GPT program or equivalent had modified their list of countries to reflect the fact that formerly developing countries had grown their economies in the 40 years since this program was first introduced. But unlike the EU, the United States and Japan, Canada has not reviewed the list of countries until now. This means that list is sorely outdated.

As a consequence, Canada is giving special breaks in the form of lower tariffs to foreign companies from emerging economic powerhouses like China, South Korea, India and Brazil, companies that compete directly with Canadian businesses and their workers for global market share. Nearly 80% of these special breaks are now going to China even though China now has an economy that is over four times the size of Canada's. Specifically, China's economy is valued at $7.3 billion compared to Canada's, which is $1.7 billion.

Without our changes, Chinese companies will continue to benefit from a one-way trade deal, receiving special breaks and offering nothing in return. This program acts as a disincentive for those growing economies to enter into free trade agreements with Canada, agreements that would increase export opportunities for Canadian businesses, would create more and better jobs for Canadians and would further reduce tariffs for Canadian consumers.

The Canadian Manufacturers and Exporters explained the changes best when it said:

It's 39 years since we updated it. It was meant to help developing countries....we were giving them preferential tariffs while their per capita GDP is higher than Canada’s....The solution is what the government is doing: try to negotiate free trade agreements with countries around the world so that we not only drop our tariffs, but they drop their tariffs as well.

That is exactly what we are trying to accomplish.

This leads me to another important feature of today's legislation that responds to recent concerns of the U.S.-Canada price gap. Economic action plan 2013 proposes to eliminate all tariffs on baby clothing and select sports and athletic equipment, including everything from ice skates, hockey equipment, skis, snowboards, golf clubs and other products that promote physical fitness and healthy living.

Targeted measures contained in Bill C-60 represent $79 million in annual tariff relief for Canadian families. I should note though, this tariff relief comes with the expectation that wholesalers, distributors and retailers will pass these savings on to consumers. Working with the Retail Council of Canada and consumer groups, our government will be monitoring the impact of these tariff reductions on Canada's retail prices.

In fact, the Retail Council of Canada has spoken out in support of this important first step in reducing outdated tariffs, which put Canadian consumers at a disadvantage, stating:

—we are very pleased to see this first step toward leveling the playing field for Canadian retailers....it is a good start and a demonstration of the government's recognition of one of the key reasons for price differences in Canada.

Even better, listen to what Dean Lapierre, president of the Windsor Minor Hockey Association, had to say:

This will definitely help because the cost of equipment is the main thing people cite when deciding to register.... It could cost $600 to $700 to equip one player, double that if the kid’s a goalie. And a lot of families have two or more kids who want to play, so this is great.

I want to be clear that this initiative would allow our government and all Canadians to assess whether further tariff elimination could help to narrow the price gap for consumers in Canada. Of course, this is going to guide our future decisions.

Before concluding, I want to take a moment to highlight one particular item contained in today's legislation related to public sector compensation, specifically the amendments to the Financial Administration Act that would enable the governor in council to direct a crown corporation to have its negotiating mandate, including wages and benefits, approved by Treasury Board. While this may seem highly technical to many Canadians watching at home, it really is very important for taxpayers across the country.

As with our action in last year's budget to reform public service pensions, along with those of MPs and senators, to make them more sustainable and bring them in line with private sector pensions, the overriding objective is to protect the taxpayer's dollar. While we acknowledge that all crown corporations are independent in their operations, their financial decisions impact the government's bottom line.

As responsible economic managers, our government must ensure that we have the right tools to protect taxpayers at the bargaining table, if necessary. This is neither new nor revolutionary. It is a common sense action on behalf of taxpayers. It is important to note on this particular measure that Quebec has had a very similar provision in place for over three decades. I hope that all members of the House will understand that both the government and crown corporations have a fundamental responsibility to spend taxpayers' dollars wisely and to help ensure that Canada's fiscal position remains sustainable over the long term.

In the words of the Canadian Taxpayers Federation:

—[the] executives who manage government-owned companies have enjoyed, until now, special status: they are paid like business people, with none of the risk.... But the taxpayer is always there, at the end of the day, to stroke another cheque, cover the losses, and make everything better....

Simply put, provisions in Bill C-60,... grant [the government]...the power to tell negotiators at these companies how much they can offer unions in wages, benefits.... to insert some spine into government negotiating teams--should improve the odds for taxpayers.

Again, I would like to note that the legislation before us today is an important step in creating jobs and economic growth, while keeping taxes low and balancing the budget by 2015. I certainly urge all members to vote in favour of this jobs, growth and long-term prosperity budget bill and support this very important measure.