Economic Action Plan 2014 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Joe Oliver  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 income tax measures and related measures proposed in the February 11, 2014 budget. Most notably, it
(a) increases the maximum amount of eligible expenses for the adoption expense tax credit;
(b) expands the list of expenses eligible for the medical expense tax credit to include the cost of the design of individualized therapy plans and costs associated with service animals for people with severe diabetes;
(c) introduces the search and rescue volunteers tax credit;
(d) extends, for one year, the mineral exploration tax credit for flow-through share investors;
(e) expands the circumstances in which members of underfunded pension plans can benefit from unreduced pension-to-RRSP transfer limits;
(f) eliminates the need for individuals to apply for the GST/HST credit and allows the Minister of National Revenue to automatically determine if an individual is eligible to receive the credit;
(g) extends to 10 years the carry-forward period with respect to certain donations of ecologically sensitive land;
(h) removes, for certified cultural property acquired as part of a gifting arrangement that is a tax shelter, the exemption from the rule that deems the value of a gift to be no greater than its cost to the donor;
(i) allows the Minister of National Revenue to refuse to register, or revoke the registration of, a charity or Canadian amateur athletic association that accepts a donation from a state supporter of terrorism;
(j) reduces, for certain small and medium-sized employers, the frequency of remittances for source deductions;
(k) improves the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada; and
(l) requires a listing of outstanding tax measures to be tabled in Parliament.
Part 1 also implements other selected income tax measures. Most notably, it
(a) introduces transitional rules relating to the labour-sponsored venture capital corporations tax credit;
(b) requires certain financial intermediaries to report to the Canada Revenue Agency international electronic funds transfers of $10,000 or more;
(c) makes amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency;
(d) permits the disclosure of taxpayer information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(e) provides that the Business Development Bank of Canada and BDC Capital Inc. are not financial institutions for the purposes of the Income Tax Act’s mark-to-market rules.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the February 11, 2014 budget by
(a) expanding the GST/HST exemption for training that is specially designed to assist individuals with a disorder or disability to include the service of designing such training;
(b) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by acupuncturists and naturopathic doctors;
(c) adding eyewear specially designed to treat or correct a defect of vision by electronic means to the list of GST/HST zero-rated medical and assistive devices;
(d) extending to newly created members of a group the election that allows members of a closely-related group to not account for GST/HST on certain supplies between them, introducing joint and several (or solidary) liability for the parties to that election for any GST/HST liability on those supplies and adding a requirement to file that election with the Canada Revenue Agency;
(e) giving the Minister of National Revenue the discretionary authority to register a person for GST/HST purposes if the person fails to comply with the requirement to apply for registration, even after having been notified by the Canada Revenue Agency of that requirement; and
(f) improving the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada.
Part 2 also implements other GST/HST measures by
(a) providing a GST/HST exemption for supplies of hospital parking for patients and visitors, clarifying that the GST/HST exemption for supplies of a property, when all or substantially all of the supplies of the property by a charity are made for free, does not apply to paid parking and clarifying that paid parking provided by charities that are set up or used by municipalities, universities, public colleges, schools and hospitals to operate their parking facilities does not qualify for the special GST/HST exemption for parking supplied by charities;
(b) clarifying that reports of international electronic funds transfers made to the Canada Revenue Agency may be used for the purposes of the administration of the GST/HST;
(c) making amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency;
(d) permitting the disclosure of confidential GST/HST information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(e) clarifying that a person cannot claim input tax credits in respect of an amount of GST/HST that has already been recovered by the person from a supplier.
Part 3 implements excise measures proposed in the February 11, 2014 budget by
(a) adjusting the domestic rate of excise duty on tobacco products to account for inflation and eliminating the preferential excise duty treatment of tobacco products available through duty free markets;
(b) ensuring that excise tax returns are filed accurately through the addition of a new administrative monetary penalty and an amended criminal offence for the making of false statements or omissions, consistent with similar provisions in the GST/HST portion of the Excise Tax Act; and
(c) improving the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada.
Part 3 also implements other excise measures by
(a) permitting the disclosure of confidential information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(b) making amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency.
In addition, Part 3 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to clarify that reports of international electronic funds transfers made to the Canada Revenue Agency may be used for the purposes of the administration of those Acts.
Part 4 amends the Customs Tariff. In particular, it
(a) reduces the Most-Favoured-Nation rates of duty and, if applicable, rates of duty under the other tariff treatments on tariff items related to mobile offshore drilling units used in oil and gas exploration and development that are imported on or after May 5, 2014;
(b) removes the exemption provided by tariff item 9809.00.00 and makes consequential amendments to tariff item 9833.00.00 to apply the same tariff rules to the Governor General that are applied to other public office holders; and
(c) clarifies the tariff classification of certain imported food products, effective November 29, 2013.
Part 5 enacts the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act and amends the Income Tax Act to introduce consequential information reporting requirements.
Part 6 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 6 provides for payments to compensate for deductions in certain benefits and allowances that are payable under the Canadian Forces Members and Veterans Re-establishment and Compensation Act, the War Veterans Allowance Act and the Civilian War-related Benefits Act.
Division 2 of Part 6 amends the Bank of Canada Act and the Canada Deposit Insurance Corporation Act to authorize the Bank of Canada to provide banking and custodial services to the Canada Deposit Insurance Corporation.
Division 3 of Part 6 amends the Hazardous Products Act to better regulate the sale and importation of hazardous products intended for use, handling or storage in a work place in Canada in accordance with the Regulatory Cooperation Council Joint Action Plan initiative for work place chemicals. In particular, the amendments implement the Globally Harmonized System of Classification and Labelling of Chemicals with respect to, among other things, labelling and safety data sheet requirements. It also provides for enhanced powers related to administration and enforcement. Finally, it makes amendments to the Canada Labour Code and the Hazardous Materials Information Review Act.
Division 4 of Part 6 amends the Importation of Intoxicating Liquors Act to authorize individuals to transport beer and spirits from one province to another for their personal consumption.
Division 5 of Part 6 amends the Judges Act to increase the number of judges of the Superior Court of Quebec and the Court of Queen’s Bench of Alberta.
Division 6 of Part 6 amends the Members of Parliament Retiring Allowances Act to prohibit parliamentarians from contributing to their pension and accruing pensionable service as a result of a suspension.
Division 7 of Part 6 amends the National Defence Act to recognize the historic names of the Royal Canadian Navy, the Canadian Army and the Royal Canadian Air Force while preserving the integration and the unification achieved under the Canadian Forces Reorganization Act and to provide that the designations of rank and the circumstances of their use are prescribed in regulations made by the Governor in Council.
Division 8 of Part 6 amends the Customs Act to extend to 90 days the time for making a request for a review of a seizure, ascertained forfeiture or penalty assessment and to provide that requests for a review and third-party claims can be made directly to the Minister of Public Safety and Emergency Preparedness.
Division 9 of Part 6 amends the Atlantic Canada Opportunities Agency Act to provide for the dissolution of the Atlantic Canada Opportunities Board and to repeal the requirement for the President of the Atlantic Canada Opportunities Agency to submit a comprehensive report every five years on the Agency’s activities and on the impact those activities have had on regional disparity.
Division 10 of Part 6 dissolves the Enterprise Cape Breton Corporation and authorizes, among other things, the transfer of its assets and obligations, as well as those of its subsidiaries, to either the Atlantic Canada Opportunities Agency or Her Majesty in right of Canada as represented by the Minister of Public Works and Government Services. It also provides that the employees of the Corporation and its subsidiaries are deemed to have been appointed under the Public Service Employment Act and includes provisions related to their terms and conditions of employment. Furthermore, it amends the Atlantic Canada Opportunities Agency Act to, among other things, confer on the Atlantic Canada Opportunities Agency the authority that is necessary for the administration, management, control and disposal of the assets and obligations transferred to the Agency. It also makes consequential amendments to other Acts and repeals the Enterprise Cape Breton Corporation Act.
Division 11 of Part 6 provides for the transfer of responsibility for the administration of the programs known as the “Online Works of Reference” and the “Virtual Museum of Canada” from the Minister of Canadian Heritage to the Canadian Museum of History.
Division 12 of Part 6 amends the Nordion and Theratronics Divestiture Authorization Act to remove certain restrictions on the acquisition of voting shares of Nordion.
Division 13 of Part 6 amends the Bank Act to add regulation-making powers respecting a bank’s activities in relation to derivatives and benchmarks.
Division 14 of Part 6 amends the Insurance Companies Act to broaden the Governor in Council’s authority to make regulations respecting the conversion of a mutual company into a company with common shares.
Division 15 of Part 6 amends the Motor Vehicle Safety Act to support the objectives of the Regulatory Cooperation Council to enhance the alignment of Canadian and U.S. regulations while protecting Canadians. It introduces measures to accelerate and streamline the regulatory process, reduce the administrative burden for manufacturers and importers and improve safety for Canadians through revised oversight procedures and enhanced availability of vehicle safety information.
The amendments to the Railway Safety Act and the Transportation of Dangerous Goods Act, 1992 modernize the legislation by aligning it with the Cabinet Directive on Regulatory Management.
This Division also amends the Safe Food for Canadians Act to authorize the Governor in Council to make regulations respecting activities related to specified fresh fruits and vegetables, including requiring a person who engages in certain activities to be a member of a specified entity or organization. It also repeals the Board of Arbitration.
Division 16 of Part 6 amends the Telecommunications Act to set a maximum amount that a Canadian carrier can charge to another Canadian carrier for certain roaming services.
Division 17 of Part 6 amends the Canada Labour Code to allow employees to interrupt their compassionate care leave or leave related to their child’s critical illness, death or disappearance in order to take leave because of sickness or a work-related illness or injury. It also amends the Employment Insurance Act to facilitate access to sickness benefits for claimants who are in receipt of compassionate care benefits or benefits for parents of critically ill children.
Division 18 of Part 6 amends the Canadian Food Inspection Agency Act to provide that fees fixed under that Act for the use of a facility provided by the Canadian Food Inspection Agency under the Safe Food for Canadians Act as well as fees fixed for services, products and rights and privileges provided by the Agency under that Act are exempt from the application of the User Fees Act.
Division 19 of Part 6 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, enhance the client identification, record keeping and registration requirements for financial institutions and intermediaries, refer to online casinos, and extend the application of the Act to persons and entities that deal in virtual currencies and foreign money services businesses. Furthermore, it makes modifications in regards to the information that the Financial Transactions and Reports Analysis Centre of Canada may receive, collect or disclose, and expands the circumstances in which the Centre or the Canada Border Services Agency can disclose information received or collected under the Act. It also updates the review and appeal provisions related to cross-border currency reporting and brings Part 1.1 of the Act into force.
Division 20 of Part 6 amends the Immigration and Refugee Protection Act and the Economic Action Plan 2013 Act, No. 2 to, among other things,
(a) require certain applications to be made electronically;
(b) provide for the making of regulations regarding the establishment of a system of administrative monetary penalties for the contravention of conditions applicable to employers hiring foreign workers;
(c) provide for the termination of certain applications for permanent residence in respect of which a decision as to whether the selection criteria are met is not made before February 11, 2014; and
(d) clarify and strengthen requirements related to the expression of interest regime.
Division 21 of Part 6 amends the Public Service Labour Relations Act to clarify that an adjudicator may grant systemic remedies when it has been determined that the employer has engaged in a discriminatory practice.
It also clarifies the transitional provisions in respect of essential services that were enacted by the Economic Action Plan 2013 Act, No. 2.
Division 22 of Part 6 amends the Softwood Lumber Products Export Charge Act, 2006 to clarify how payments to provinces under section 99 of that Act are to be determined.
Division 23 of Part 6 amends the Budget Implementation Act, 2009 so that the aggregate amount of payments to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime may be fixed through an appropriation Act.
Division 24 of Part 6 amends the Protection of Residential Mortgage or Hypothecary Insurance Act and the National Housing Act to provide that certain criteria established in a regulation may apply to an existing insured mortgage or hypothecary loan.
Division 25 of Part 6 amends the Trade-marks Act to, among other things, make that Act consistent with the Singapore Treaty on the Law of Trademarks and add the authority to make regulations for carrying into effect the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks. The amendments include the simplification of the requirements for obtaining a filing date in relation to an application for the registration of a trade-mark, the elimination of the requirement to declare use of a trade-mark before registration, the reduction of the term of registration of a trade-mark from 15 to 10 years, and the adoption of the classification established by the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks.
Division 26 of Part 6 amends the Trade-marks Act to repeal the power to appoint the Registrar of Trade-marks and to provide that the Registrar is the person appointed as Commissioner of Patents under subsection 4(1) of the Patent Act.
Division 27 of Part 6 amends the Old Age Security Act to prevent the payment of Old Age Security income-tested benefits for the entire period of a sponsorship undertaking by removing the current 10-year cap.
Division 28 of Part 6 enacts the New Bridge for the St. Lawrence Act, respecting the construction and operation of a new bridge in Montreal to replace the Champlain Bridge and the Nuns’ Island Bridge.
Division 29 of Part 6 enacts the Administrative Tribunals Support Service of Canada Act, which establishes the Administrative Tribunals Support Service of Canada (ATSSC) as a portion of the federal public administration. The ATSSC becomes the sole provider of resources and staff for 11 administrative tribunals and provides facilities and support services to those tribunals, including registry, administrative, research and analysis services. The Division also makes consequential amendments to the Acts establishing those tribunals and to other Acts related to those tribunals.
Division 30 of Part 6 enacts the Apprentice Loans Act, which provides for financial assistance for apprentices to help with the cost of their training. Under that Act, apprentices registered in eligible trades will be eligible for loans that will be interest-free until their training ends.

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 12, 2014 Passed That the Bill be now read a third time and do pass.
June 12, 2014 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-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, because it: ( a) has not received adequate study or amendment by Parliament; ( b) cancels the hiring credit for small business ( c) raises costs for Canadian businesses through changes to trademark law that have been opposed by dozens of chambers of commerce, businesses and legal experts; ( d) hands over private financial information of hundreds of thousands of Canadians to the US Internal Revenue Service under Foreign Account Tax Compliance Act; ( e) undermines the independence of 11 federal administrative tribunals; and ( f) fails to fully compensate for years of unjust clawback to the benefits of Canada's disabled veterans.”.
June 9, 2014 Passed That Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 376.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 375.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 371.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 369.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 317.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 313.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 308.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 300.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 223.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 211.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 206.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 179.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 175.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 110.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 28.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 27.
June 9, 2014 Failed That Bill C-31 be amended by deleting the short title.
June 5, 2014 Passed That, in relation to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, not more than five further hours shall be allotted to the consideration at report stage of the Bill and five hours shall be allotted to the consideration at third reading stage of the said Bill; and that, at the expiry of the five hours provided for the consideration at report stage and the five hours provided for 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 said stages of the Bill then under consideration shall be put forthwith and successively, without further debate or amendment.
April 8, 2014 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
April 8, 2014 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-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, because it: ( a) amends more than sixty Acts without adequate parliamentary debate and oversight; ( b) does nothing to create quality, good-paying jobs for Canadians and fails to extend the hiring credit for small business; ( c) fails to reverse devastating cuts to infrastructure and healthcare; ( d) hands over private financial information of hundreds of thousands of Canadians to the US Internal Revenue Service under the Foreign Account Tax Compliance Act; ( e) reduces transparency at the Atlantic Canada Opportunities Agency; (f) imposes tolls on the Champlain Bridge; ( g) jeopardizes the independence of eleven federal administrative tribunals; and ( h) enables the government to weaken regulations affecting rail safety and the transport of dangerous goods without notifying the public.”.
April 3, 2014 Passed That, in relation to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, not more than three further sitting days after the day on which this Order is adopted 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 third 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 2014 Act, No. 1Government Orders

April 3rd, 2014 / 10:25 a.m.
See context

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, it is very difficult to limit my speech to just 15 minutes because this is a huge bill—it is over 350 pages long. It is hard to cover and explain everything in it. It is complicated and huge and fundamentally anti-democratic. I have plenty of quotes from the Prime Minister and other Conservatives who used to say that omnibus bills like this one were disastrous and tragic for Parliament.

We have learned to call these “ominous” budget bills because, while technically omnibus in nature, what we see in these 350 pages, with over 500 clauses and 40 laws being changed in this one act alone, is the Conservatives continuing down their very anti-democratic path of fundamentally disrespecting Parliament and the institutions. We see it in the unfair elections act, and we also see it in the next omnibus bill, Bill C-31, which contains so many aspects that it is difficult to cover in the short time we have.

Before politics, I was a small business owner. The riding I represent in northwestern British Columbia is both rural and resource sector based. I bring those experiences to bear as the finance critic for the official opposition. Therefore, my orientation toward matters of the economy, financial affairs, and the budget is based on those small and medium-sized businesses, which are at the very heart of our economy, providing more than 70% of all new jobs. At the heart of our economy lies the resource sector. Virtually 80% of the equity traded on the Toronto Stock Exchange relies on the resource sector of Canada, that natural wealth and endowment. Therefore, one wonders, while casting through the hundreds of pages in this omnibus bill, exactly what the government has done to help the resource sector, small and medium businesses, and the overall fragility of the Canadian economy.

Canada right now sits at a crossroads. Four hundred thousand manufacturing jobs have been lost and not replaced since the government took power. Three hundred thousand net jobs have been lost since it took over that have also not been replaced. Personal household debts are at record highs.

The trade deficit hitting $45 billion is now seen as a casual event; a country like Canada having massive trade deficits with our trading partners presents no problems or concerns to the government. We are a trading nation. We are not trading well right now, and the government seems not occupied with that. The Bank of Canada, the IMF, and the former finance minister have decried the half-trillion dollars of dead money sitting in our economy that is not being used by the private sector. It is simply because, when the government hands over its corporate tax cuts, they come with no strings attached. Its ideological drive, that all tax cuts must directly and implicitly lead to job creation, has shown not to be true in this case.

According to the Canadian Chamber of Commerce, 85% of the jobs created last year alone were created in short-term, temporary, part-time jobs. These are not our numbers. These are numbers gathered by the business community in Canada. We have seen the government blow open the temporary foreign worker program. More than 300,000 temporary foreign workers went to work this morning in Canada. That has a dual effect. It replaces Canadian workers who were training to do those jobs. I had a phone call from a young woman this morning. She is fully ticketed. She has gone through all the programs, has taken out student loans, is ready to work in the resource sector, and cannot find work because the contractor working on the gas pipeline operation has hired temporary foreign workers from all over the world. She is frustrated. She is trying to pay the bills, and the government turns a blind eye. We saw it with the HD Mining case in British Columbia. Two hundred workers were needed to work in the mine. The way the company got around the small barriers that the Conservatives put up was to say workers must be fully ticketed to work in a mining operation and fluent in Mandarin. That was a requirement that was somewhat difficult to meet in the Canadian labour force market. The employer said they could not find 200 fluent Mandarin-speaking miners in Canada, so they would need a temporary foreign worker licence permit, which the government happily granted with no conditions attached, until it became public; then there was obvious backlash. Then the Prime Minister went with the ethnic media in Vancouver. We have all sorts of criticisms about the temporary foreign worker program, but just to one section of the media; it has never since repeated those criticisms out loud.

Royal Bank of Canada laid off workers and replaced them with temporary foreign workers. We have seen 300 welders recently laid off in Alberta and replaced with temporary foreign workers. The resource wealth that we are endowed with deserves to be respected.

Let us review the six principles of how to properly develop the oil wealth in Alberta, put forward by that lefty radical, former premier Lougheed. Let us review what this radical had to say.

The first principle is “[act] like an owner”. Is the current government doing that when it comes to resource wealth? Not at all.

Second, he said, is “[get] your fair share”. Particularly when it comes to natural resources, like oil, which cannot be replenished, one only gets to do it once. If they do not collect their fair share, it is a missed opportunity.

The third principle is “Save for a rainy day”. Can members imagine what former premier Lougheed would have said about Conservatives, who have not only accrued the largest debt in Canadian history, but they also have the record for our two largest deficits and adding to our largest national debt ever?

The fourth principle that former Premier Lougheed talked about is “[adding] value” to the resources. What do the Conservatives push? They are pushing raw bitumen pipelines. What do they allow? They allow raw log exports. What they allow for is not adding value to the mineral wealth of this country. We know that is where the greatest gain in jobs can be. For those Conservatives who represent parts of Saskatchewan and British Columbia and Alberta, one has to wonder about all those jobs that have been foregone by their policies. All of those jobs and opportunities are lost, and all those families who could be paying the rent and helping to raise kids on those value-added jobs are lost.

Fifth, former Premier Lougheed also said “Go slow”. Why? Because we see what the boom can do; it always leads to a bust. The former MP for Fort McMurray, Brian Jean, on his way out the door of this place, said that the main problem in the oil patch in northern Alberta is that we are going too fast. We see that those are wise words and correct, if one visits Fort McMurray and talks to the workers and the municipal leaders there. It is a bit of a shame that he only found that conscience when he was leaving Parliament and the Conservative caucus. He did not say it when he was here. I know that many Conservatives also share his views.

The sixth and last thing that former premier Lougheed said was “Practice statecraft”. What do we have from the current government when it comes to developing our economy and natural resource wealth? The Conservatives encourage conflict. They yell and scream at opponents and call them enemies of this state if they do not agree with Conservative ideology. They say that they must be foreign-funded radicals. They get into their “grassy knoll” theories over there in the Conservative Party, saying that this must be the problem.

However, here is the result of all that conflict and tension among Canadians and between first nations and the Government of Canada, which the current government has exacerbated time and again. It leads to uncertainty. Whatever the sector, whether the resource sector or the banking sector, uncertainty is a serious problem. It is impossible to plan if people within companies and industries do not feel they have any certainty. What the Conservatives have ironically and tragically done through their abusive and bullying approach to the conversation in Canada has increased the level of uncertainty and conflict.

Let us look at Bill C-31. Let us deal with what is in it. I can quickly walk through some of the positive measures because there are not many of them.

The government has finally reversed its policy on charging the GST on parking when visiting a hospital. It was something that the Conservatives put in the budget. We told them to take it out, and they listened for once. The Conservatives have also extended some tax credits for families who are seeking adoption. We think this is a very positive thing. They have also introduced another proposal that we put forward to allow for a tax credit for volunteers conducting search and rescue. We think that is very important. It is a small measure, but for those who risk their lives to protect Canadians, we think it is a good measure.

Now, let us get to the bad things that are in Bill C-31.

Let us start with the first one, FATCA. What a great deal it is that is buried in this bill. One would think that something like a major tax treaty with our most significant trading partner would have stand-alone legislation and its own debate. That is not so with the Conservatives; they bury it. When they bury something and they release it, as they did on a Friday afternoon when they released this bill, one can anticipate that there is something they do not want to talk about. We estimate that more than one million Canadians may be affected by this tax treaty. They are Canadians who do not even know they may be implicated by this by being married to an American or former American. They are Canadians who were born to American parents. Canadians who were born here may be implicated by this.

What this deal would do is to tell the banks in Canada to release the private personal banking information of those Canadians to the Canada Revenue Agency, which then ably and quickly would pass it along to the IRS in the United States. Passing the private banking information of more than one million Canadians to the U.S. government somehow does not seem to bother the Conservatives. There were no consultations with the Privacy Commissioner. They told the Privacy Commissioner it was happening, but did not bother to find out if it went against privacy laws in Canada.

We do not know if this is even charter proof. Constitutional lawyers have said that this is a mistreatment of Canadian citizens and it will face a charter challenge. Again, there were no charter questions. The banks have estimated that to collect this information may cost upward of $100 million. Some have already spent tens of millions of dollars; it is hard information to get at. We asked the government how much it would cost it to wade through these millions of documents and pieces of banking information, and the government said it had no estimate, that it does not know what it is going to cost. The banks have said it would cost upward of $100 million per bank.

The federal government signed this treaty and did not bother to find out what it might cost the Canadian taxpayer. In addition, there is no reciprocity. There is no agreement with the U.S. to have some sort of equal treatment of Canadians. Canada is not a tax haven for American money. It has never been described as such. Why institute a tax treaty to go after tax cheats and tax havens that do not exist? Why forego the privacy of so many Canadians?

What fight did the Conservatives actually do? The Minister of Finance wrote an op-ed. He did, and it was strongly worded. He put it into a couple of papers in Washington, and that was it. Compare that with the government having spent millions of dollars toward lobbying the U.S. government on Keystone. It has spent millions on a full-scale frontal attack. The Prime Minister said that if the U.S. does not agree, this is a no-brainer, and we will wait the president out. Was this all that could be done in diplomacy?

We spent millions, and are spending millions of dollars on diplomats running around Washington trying to convince the Americans to create 40,000 jobs in the U.S. to add value to the bitumen coming out of the oil patch in Alberta. Who came up with that number? The Canadian government did, when trying to convince American legislators. Compare that full-on assault in trying to convince people in Washington to do something, to an op-ed, when they were standing up for Canadians' rights. It is a no-brainer. This is bad policy to sell out Canadians at such a cheap level. There is so much more in this bill.

What is not in this bill is the consumer protection that the government so often talks about. The fact that people have to pay to get their bills from companies is not in this legislation; it was in the throne speech. It said it would go after payday lenders because it is extortion. It was talked about in the throne speech, but it is absent in Bill C-31.

On the passenger bill of rights, do members remember that one? The Conservatives had the industry minister talk about the passenger bill of rights. It is not in the bill. There is the small business hiring tax credit, something that New Democrats proposed in 2011 and the government incorporated into two subsequent budgets. According to small and medium-sized businesses, the Canadian Federation of Independent Business and the Canadian Chamber of Commerce, it works as an effective tax measure in creating jobs. Unlike the government's broad, blunt attacks on tax, it works, and the government left it out. When asked why, it did not respond and continued.

Last, on temporary foreign workers, there is a piece in the bill that is meant to punish employers who abuse the temporary foreign worker program. The government has a blacklist. It has had a blacklist, for two years, for employers who abuse the system. Who is on the blacklist? There is nobody, not a single employer. The Alberta government has cited over 100 employers who have abused the program, and the government cannot find one.

In summation, I will move the following amendment. However, allow me to say this. In the process that the government is using, this is fundamentally anti-democratic. It fundamentally does not help the Canadian economy, and it is more bad news for the Canadian people. I move:

That the motion be amended by deleting all the words after the word “That” and substituting the following:

this House decline to give second reading to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, because it:

(a) amends more than 60 Acts without adequate parliamentary debate and oversight;

(b) does nothing to create quality, good-paying jobs for Canadians and fails to extend the hiring credit for small business;

(c) fails to reverse devastating cuts to infrastructure and healthcare;

(d) hands over private financial information of hundreds of thousands of Canadians to the U.S. Internal Revenue Service under Foreign Account Tax Compliance Act;

(e) reduces transparency at the Atlantic Canada Opportunities Agency;

(f) imposes tolls on the Champlain Bridge;

(g) jeopardizes the independence of 11 federal administrative tribunals; and

(h) enables the government to weaken regulations affecting rail safety and the transport of dangerous goods without notifying the public.

The House resumed from April 2, 2014, consideration of the motion that Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, be read the second time and referred to a committee.

Second readingEconomic Action Plan 2014 Act, No. 1Government Orders

April 2nd, 2014 / 5:25 p.m.
See context

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, it is amazing that after a full 25 minutes of debate on a 350-page bill that the government has stuffed full of all sorts of, “gems” is not the right word—there is another word for it that I do not think I am allowed to use here in Parliament—the government has decided that it needs to shut down that debate because it has obviously gone on too long. They think that a full 25 minutes and a few more after that should be enough to study a bill that affects 40 Canadian laws and has over 500 clauses in it, almost none of them designed to help the Canadian economy.

As this is my first speech as finance critic for the official opposition, I want to make mention of and thank the member for Parkdale—High Park, who did such an incredible job on this portfolio for a number of years. She developed strong relationships. She was absolutely dignified, and she brought New Democrats to a strong place when talking about financial measures. She had relationships with, not only the banking community, but the small business and entrepreneurial communities in this country. I owe a great debt for the amount of work that the member for Parkdale—High Park has done.

From the perspective of which I come, representing a rural and remote part of the country in northwestern British Columbia, and being a former small business owner myself, I have great familiarity with the struggles, challenges, and opportunities for those who operate small and medium-sized businesses in this country. Those businesses exist in resource-based economies in the rural parts of this country, and 80% of the Toronto Stock Exchange exists on those resource and extractive economies.

What these businesses are looking for primarily is a government that understands them, that listens to Bay Street a little less, and that more often consults and meets with people on Main Street. They are looking for a government that understands what small and medium-size businesses have to go through to put food on the table. Primarily, they need a strong economy and one that provides them with customers, a viable way to grow and expand their businesses. What we have seen from the government too often, on the Conservative side and previously, has led us to the position our economy is in right now.

There have been 400,000 missing manufacturing jobs since the Conservatives took over. The Conservatives call that excellent. There are 300,000 jobs that have not been replaced since the beginning of the recession. The youth unemployment rate is twice the national average, and Canadians now owe more money, at a personal debt ratio that is greater than any other country in the OECD. We are one of the most indebted nations in the world, and the government says all is fine and rosy.

Its policies are based on a simple principle of rip and ship: take the resources and the wealth that are the endowment of this country and send them out in their most raw form. Do not add value. Do not seek to enhance any of the qualities of those resources. The results are stark. Our trade deficit is at a staggering level. We are operating in a trade deficit position and have done so for a number of years. It is $45 billion, and it does not seem to preoccupy the Conservatives at all.

We have seen finance minister after finance minister, now two of them, misunderstand the telling signs in the economy. The previous finance minister missed the global recession entirely. He thought it was a blip, a bump in the road, and nothing to be concerned with. In the midst of the first months of that recession, the government brought in an austerity budget, countering every other G20 country in the world, saying that Conservatives know best on the economy. The fact is that they do not, and the mounting evidence on economic mismanagement of the Conservatives is piling up.

Now we have the budget implementation act, a bill that is crammed with all sorts of things that, again, I cannot mention with their proper terms. These are things like the temporary foreign worker program. Suddenly the Conservatives are going to get tough on the very program that they have allowed companies to abuse. Two years ago, they said they were going to go after those bad companies and put them on a blacklist.

Do members know how many companies are sitting on that blacklist today? There is zero, not a one. That would lead me to believe that maybe there are no companies abusing the temporary foreign worker program. However, wait, one province alone, the province of Alberta, has found 100 cases of companies abusing the massive loopholes in the temporary foreign worker program that the government created. HD Mining and certain banks have started to export jobs that we did not think could be exported: mining jobs, financial sector jobs. These are jobs that have been the heart of this economy for many years.

With the clock being what it is, I will be finishing my comments tomorrow, but allow me to establish that both on form and on substance, the current Conservative government has failed Canadians once again.

The Conservatives have a missed opportunity with this monster omnibus bill, which is fundamentally anti-democratic, not according to just me but according to the Prime Minister when he used to occupy this place.

New Democrats will oppose Bill C-31 every step of the way.

The House resumed consideration of the motion that Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, be read the second time and referred to a committee.

Bill C-31—Notice of Time Allocation MotionEconomic Action Plan 2014 Act, No. 1Government Orders

April 2nd, 2014 / 5:25 p.m.
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York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

Mr. Speaker, I would like to advise the House that an agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the second reading stage of Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage of the said bill.

Economic Action Plan 2014 Act, No. 1Government Orders

April 2nd, 2014 / 4:55 p.m.
See context

North Vancouver B.C.

Conservative

Andrew Saxton ConservativeParliamentary Secretary to the Minister of Finance

Mr. Speaker, I appreciate the opportunity today to lead off debate on Bill C-31, the economic action plan 2014 act, no. 1. Over the next 20 minutes, I will provide an overview of the bill's overarching objectives and will highlight some of its key initiatives.

Our government continues to focus on what matters to Canadians, and this bill would do nothing to detract from that. Bill C-31 focuses on creating jobs and economic growth while supporting families and communities.

This is our government's 10th budget since 2006. Over that period our country has been confronted by unprecedented economic challenges from beyond our borders. Canada has not only weathered the global economic storm but has exceeded expectations. Let me remind members today that with the help of Canada's economic action plan, Canada's economy has seen the best economic performance among all G7 countries and is the only G7 country to have an unwavering AAA rating, with a stable outlook from all the major credit-rating agencies: Moody's, Fitch, and Standard & Poor's. Nevertheless, in good times and bad, we have never strayed from our commitment to strengthen the economy for all Canadians and have never wavered from seeing our plan through.

Economic action plan 2014 marks the next chapter in keeping that commitment to Canadians, focusing on three key priorities: returning to budget balance, promoting jobs and economic growth, and supporting families and communities. Before I get into the details of the bill, let me begin by explaining the principles driving these priorities, starting with balancing the budget, the cornerstone of our low-tax plan.

Returning to balanced budgets and basic economic principles of debt reduction means that more tax dollars can be spent improving Canada's economic potential and growth prospects rather than on servicing debt. These long-term benefits explain why our government has not wavered from our goal and has cut the deficit by nearly two-thirds since the great recession. It is also why Canada remains in an enviable fiscal position among all G7 countries, with the lowest net debt to GDP ratio by far.

Our goal is now within sight. Including the measures announced in economic action plan 2014, we expect to realize a surplus of $6.4 billion in 2015-16, including a $3 billion annual adjustment for risk. Let me point out that we are doing all this without cutting major transfers to persons or other levels of government. At the same time as we are reining in spending, let me emphasize that transfers for Canadian priorities like education and health care will continue to increase.

Although balancing the budget is the cornerstone of our prosperity plan, our government also believes that it is vital that we create the conditions for businesses to grow.

The government's focus on improving tax competitiveness for business is part of a policy framework that targets growth, which has allowed Canada to have the lowest corporate taxes in the G7.

That is not all. Canada is an increasingly dynamic place for investment and corporate growth. In the most recent Bloomberg rating of the most attractive countries for business, Canada jumped to second place, topped only by Hong Kong.

Our government recognizes that our greatest asset is also what will keep us a leader in the global economy, our people. This is why we continue to invest in training to help workers get the skills they need to succeed and to connect more Canadians with available jobs. To better align training with labour market needs, the Canada job grant will launch this year, ensuring that employers have input into skills-training decisions. We are also working with provinces and territories to renew the $500 million per year labour market agreements. Our government will also renegotiate the $1.95 billion per year labour market development agreements to better reorient training toward labour market demand. This, along with our commitment of $222 million annually, matched by the provinces and territories over the next four years through a new generation of labour market agreements for persons with disabilities, will strengthen Canada's job market and will get Canadians working.

Now I would like to return to the specific measures in today's legislation.

First of all, economic action plan 2014 act, no.1, focuses on our commitment to families and announces improved support for Canadian families who adopt a child.

All parents must pay for their children's education, but adoptive parents have additional expenses, including agency fees and legal costs. These costs can be significant, especially in the case of children adopted outside Canada, and can include travel and accommodation expenses and the cost of translating documents.

With respect to taxation, in order to better recognize adoption expenses, primarily agency fees and legal costs, economic action plan 2014 will increase the maximum amount of the adoption expense tax credit, which had already been increased in economic action plan 2013, to $15,000 in 2014. This amount will be indexed to inflation in subsequent years.

Our government will also ensure that the tax system takes into account the changing nature of the health care system and Canadians' needs.

We are also proposing amendments to the Excise Tax Act to improve the application of the GST-HST in the health care sector. Specifically, today's legislation proposes three changes to expand tax relief under the GST-HST for certain health-related services and medical and assistive devices to reflect the evolving nature of the health care system.

The first change would expand the current GST-HST exemption for training designed to help individuals cope with a disorder or disability. It would now also exempt services for designing training, such as developing a training plan.

The second change would exempt the professional services of acupuncturists and naturopathic doctors from GST-HST.

The third change would add to the list of GST-HST-free medical and assistive devices eyewear designed to electronically enhance the vision of individuals who are vision impaired when it is supplied on the order of a physician or other specified health professional.

Today's legislation also recognizes the important role played by research and rescue volunteers in their communities. They protect people while often risking their own safety. Bill C-31 proposes a 15% non-refundable search and rescue volunteer tax credit on an amount of $3,000 for ground, air, and marine search and rescue volunteers who perform at least 200 hours of eligible service in the year, starting in 2014.

Our government is very proud to publicly recognize the outstanding commitment of these volunteers and the difference they make in their communities, communities like my riding of North Vancouver.

North Shore Rescue is a daily example of the sacrifice these brave men and women commit to every day. It is why I know that measures like this will go a long way in supporting these selfless volunteers across Canada.

As everyone can see, we are protecting the health and well-being of Canadians. Promoting a clean, safe environment is also one of our government's priorities.

For example, since 2006, the government has taken significant action to protect our natural areas, including taking steps to add more than 160,000 km2 to the Canadian national parks and marine conservation areas system—an increase of more than 58%—and securing almost 4,000 km2 of ecologically sensitive private lands.

Economic action plan 2014 includes measures to protect Canada's rich natural heritage by investing in national parks, conserving recreational fisheries, expanding recreational trails, supporting family-oriented conservation and expanding tax support for clean energy generation.

Today's legislative measure will encourage additional donations of ecologically sensitive lands to conservation charities by doubling to 10 years, for income tax purposes, the carry-forward period.

This is in response to a recommendation by the House of Commons Standing Committee on Finance in its February 2013 report entitled “Tax Incentives for Charitable Giving in Canada”.

As all hon. members can see, through Canada's economic action plan 2014 we are keeping taxes low, putting consumers first, protecting Canadians' health and safety, and strengthening communities from coast to coast to coast.

Bill C-31 expands on the government's consumer-focused measures to improve the bottom line for Canadian families and to ensure that they are getting value for their hard-earned dollars.

Since 2006, our government has taken significant action to support and protect Canadian consumers. We have reduced taxes and tariffs; ensured marketplace fairness; promoted competition in industries such as financial services, telecommunications, and air services; and improved products and food safety.

Through the consumers first agenda measures contained in economic action plan 2014, our government is going even further. One key focus of our government has been encouraging competition and lower prices in the telecommunications market. Today's legislation proposes new measures to do this by capping wholesale domestic wireless roaming rates to prevent wireless providers from charging other companies that may be their competitors more than they charge their own customers for mobile voice data and text services.

Our government will also bring forward future legislation to provide telecommunications regulators with the power to impose administrative monetary penalties on companies that violate rules such as the Wireless Code, further enhancing competition in the telecommunications market.

The list goes on. I could speak well beyond my allotted time on the benefits of today's legislation. Let me very quickly list some of the other positive measures in Bill C-31:

Creating the Canada apprentice loan, a new initiative that would help apprentices registered in Red Seal trades by providing access to over $100 million in interest-free loans each year;

Eliminating tariffs on mobile offshore drilling units used in offshore oil and gas exploration to improve the global competitiveness of Canadian energy projects;

Investing $11 million over two years and $3.5 million per year ongoing to strengthen the labour market opinion process, ensuring that Canadians are given the first chance at available jobs;

Strengthening Canada's anti-money laundering and anti-terrorist financing regime and adding measures to fight tax evasion, ensuring that all Canadians pay their fair share;

Cutting red tape on more than 50,000 employers by reducing the maximum number of required payments on account for source deductions;

Reducing costs and red tape for all Canadian businesses by harmonizing Canada's trademark framework with international norms; and

Providing $165 million over two years on a cash basis to advance the construction of a new bridge for the St. Lawrence.

In my presentation today, I have merely provided an overview of the many ways in which economic action plan 2014 will benefit Canadians.

Let us look at the facts: Canada has recovered all of the jobs lost during the recession and then some. Over one million more Canadians are employed now than were employed at the end of the recession in 2009. Nearly 90% of those jobs are full-time jobs. Canada's job growth has dramatically outpaced that of the other G7 countries.

Again, we are on track to balance the budget in 2015-16, as promised, but this has not deterred us from making Canada one of the best places to do business or from providing tax relief for all Canadians. We have cut taxes in every way government collects them and have removed more than one million low-income Canadians from the tax rolls. I will remind my colleagues that a Canadian family of four saves nearly $3,400 in 2014.

While the NDP and Liberals keep demanding reckless spending, our government will stay the course with fiscal prudence.

When the Liberal leader suggests questionable economic policy and claims that budgets balance themselves, our government will stay the course to balance the budget. When the opposition calls for higher taxes and taking more money from hard-working Canadians, our government will stay the course with our low-tax plan. Quite simply, it is our government that has had to make the tough decisions and stick to our priorities, the priorities of all Canadians. For that reason, we have remained steadfast in our commitment to strengthen the economy for all Canadians.

To sum up, in an uncertain world, Canada's economic action plan is working. It is creating jobs, keeping the economy growing and returning to balanced budgets. By staying the course and sticking to our proven track record and economic action plan, Canada remains on track for a great future. I therefore strongly encourage all members of the House to read the legislation and give it the support that it deserves.

Economic Action Plan 2014 Act, No. 1Government Orders

April 2nd, 2014 / 4:55 p.m.
See context

Eglinton—Lawrence Ontario

Conservative

Joe Oliver ConservativeMinister of Finance

Economic Action Plan 2014 Act, No. 1Routine Proceedings

March 28th, 2014 / 12:05 p.m.
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Conservative

Peter Van Loan Conservative York—Simcoe, ON

moved for leave to introduce Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures.

(Motions deemed adopted, bill read the first time and printed)