Bill C-4 (Historical)

Economic Action Plan 2013 Act No. 2

A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it
(a) increases the lifetime capital gains exemption to $800,000 and indexes the new limit to inflation;
(b) streamlines the process for pension plan administrators to refund a contribution made to a Registered Pension Plan as a result of a reasonable error;
(c) extends the reassessment period for reportable tax avoidance transactions and tax shelters when information returns are not filed properly and on time;
(d) phases out the federal Labour-Sponsored Venture Capital Corporations tax credit;
(e) ensures that derivative transactions cannot be used to convert fully taxable ordinary income into capital gains taxed at a lower rate;
(f) ensures that the tax consequences of disposing of a property cannot be avoided by entering into transactions that are economically equivalent to a disposition of the property;
(g) ensures that the tax attributes of trusts cannot be inappropriately transferred among arm’s length persons;
(h) responds to the Sommerer decision to restore the intended tax treatment with respect to non-resident trusts;
(i) expands eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of biogas production equipment and equipment used to treat gases from waste;
(j) imposes a penalty in instances where information on tax preparers and billing arrangements is missing, incomplete or inaccurate on Scientific Research and Experimental Development tax incentive program claim forms;
(k) phases out the accelerated capital cost allowance for capital assets used in new mines and certain mine expansions, and reduces the deduction rate for pre-production mine development expenses;
(l) adjusts the five-year phase-out of the additional deduction for credit unions;
(m) eliminates unintended tax benefits in respect of two types of leveraged life insurance arrangements;
(n) clarifies the restricted farm loss rules and increases the restricted farm loss deduction limit;
(o) enhances corporate anti-loss trading rules to address planning that avoids those rules;
(p) extends, in certain circumstances, the reassessment period for taxpayers who have failed to correctly report income from a specified foreign property on their annual income tax return;
(q) extends the application of Canada’s thin capitalization rules to Canadian resident trusts and non-resident entities; and
(r) introduces new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion.
Part 1 also implements other selected income tax measures. Most notably, it
(a) implements measures announced on July 25, 2012, including measures that
(i) relate to the taxation of specified investment flow-through entities, real estate investment trusts and publicly-traded corporations, and
(ii) respond to the Lewin decision;
(b) implements measures announced on December 21, 2012, including measures that relate to
(i) the computation of adjusted taxable income for the purposes of the alternative minimum tax,
(ii) the prohibited investment and advantage rules for registered plans, and
(iii) the corporate reorganization rules; and
(c) clarifies that information may be provided to the Department of Employment and Social Development for a program for temporary foreign workers.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by
(a) introducing new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion; and
(b) clarifying that the GST/HST provision, exempting supplies by a public sector body (PSB) of a property or a service if all or substantially all of the supplies of the property or service by the PSB are made for free, does not apply to supplies of paid parking.
Part 3 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 3 amends the Employment Insurance Act to extend and expand a temporary measure to refund a portion of employer premiums for small businesses. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including setting the 2015 and 2016 rates and requiring that the rate be set on a seven-year break-even basis by the Canada Employment Insurance Commission beginning with the 2017 rate. The Division repeals the Canada Employment Insurance Financing Board Act and related provisions of other Acts. Lastly, it makes technical amendments to the Employment Insurance (Fishing) Regulations.
Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to remove the prohibition against federal and provincial Crown agents and federal and provincial government employees being directors of a federally regulated financial institution. It also amends the Office of the Superintendent of Financial Institutions Act and the Financial Consumer Agency of Canada Act to remove the obligation of certain persons to give the Minister of Finance notice of their intent to borrow money from a federally regulated financial institution or from a corporation that has deposit insurance under the Canada Deposit Insurance Corporation Act.
Division 3 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to clarify the rules for certain indirect acquisitions of foreign financial institutions.
Division 4 of Part 3 amends the Criminal Code to update the definition “passport” in subsection 57(5) and also amends the Department of Foreign Affairs, Trade and Development Act to update the reference to the Minister in paragraph 11(1)(a).
Division 5 of Part 3 amends the Canada Labour Code to amend the definition of “danger” in subsection 122(1), to modify the refusal to work process, to remove all references to health and safety officers and to confer on the Minister of Labour their powers, duties and functions. It also makes consequential amendments to the National Energy Board Act, the Hazardous Materials Information Review Act and the Non-smokers’ Health Act.
Division 6 of Part 3 amends the Department of Human Resources and Skills Development Act to change the name of the Department to the Department of Employment and Social Development and to reflect that name change in the title of that Act and of its responsible Minister. In addition, the Division amends Part 6 of that Act to extend that Minister’s powers with respect to certain Acts, programs and activities and to allow the Minister of Labour to administer or enforce electronically the Canada Labour Code. The Division also adds the title of a Minister to the Salaries Act. Finally, it makes consequential amendments to several other Acts to reflect the name change.
Division 7 of Part 3 authorizes Her Majesty in right of Canada to hold, dispose of or otherwise deal with the Dominion Coal Blocks in any manner.
Division 8 of Part 3 authorizes the amalgamation of four Crown corporations that own or operate international bridges and gives the resulting amalgamated corporation certain powers. It also makes consequential amendments and repeals certain Acts.
Division 9 of Part 3 amends the Financial Administration Act to provide that agent corporations designated by the Minister of Finance may, subject to any terms and conditions of the designation, pledge any securities or cash that they hold, or give deposits, as security for the payment or performance of obligations arising out of derivatives that they enter into or guarantee for the management of financial risks.
Division 10 of Part 3 amends the National Research Council Act to reduce the number of members of the National Research Council of Canada and to create the position of Chairperson of the Council.
Division 11 of Part 3 amends the Veterans Review and Appeal Board Act to reduce the permanent number of members of the Veterans Review and Appeal Board.
Division 12 of Part 3 amends the Canada Pension Plan Investment Board Act to allow for the appointment of up to three directors who are not residents of Canada.
Division 13 of Part 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to extend to the whole Act the protection for communications that are subject to solicitor-client privilege and to provide that information disclosed by the Financial Transactions and Reports Analysis Centre of Canada under subsection 65(1) of that Act may be used by a law enforcement agency referred to in that subsection only as evidence of a contravention of Part 1 of that Act.
Division 14 of Part 3 enacts the Mackenzie Gas Project Impacts Fund Act, which establishes the Mackenzie Gas Project Impacts Fund. The Division also repeals the Mackenzie Gas Project Impacts Act.
Division 15 of Part 3 amends the Conflict of Interest Act to allow the Governor in Council to designate a person or class of persons as public office holders and to designate a person who is a public office holder or a class of persons who are public office holders as reporting public office holders, for the purposes of that Act.
Division 16 of Part 3 amends the Immigration and Refugee Protection Act to establish a new regime that provides that a foreign national who wishes to apply for permanent residence as a member of a certain economic class may do so only if they have submitted an expression of interest to the Minister and have subsequently been issued an invitation to apply.
Division 17 of Part 3 modernizes the collective bargaining and recourse systems provided by the Public Service Labour Relations Act regime. It amends the dispute resolution process for collective bargaining by removing the choice of dispute resolution method and substituting conciliation, which involves the possibility of the use of a strike as the method by which the parties may resolve impasses. In those cases where 80% or more of the positions in a bargaining unit are considered necessary for providing an essential service, the dispute resolution mechanism is to be arbitration. The collective bargaining process is further streamlined through amendments to the provision dealing with essential services. The employer has the exclusive right to determine that a service is essential and the numbers of positions that will be required to provide that service. Bargaining agents are to be consulted as part of the essential services process. The collective bargaining process is also amended by extending the timeframe within which a notice to bargain collectively may be given before the expiry of a collective agreement or arbitral award.
In addition, the Division amends the factors that arbitration boards and public interest commissions must take into account when making awards or reports, respectively. It also amends the processes for the making of those awards and reports and removes the compensation analysis and research function from the mandate of the Public Service Labour Relations Board.
The Division streamlines the recourse process set out for grievances and complaints in Part 2 of the Public Service Labour Relations Act and for staffing complaints under the Public Service Employment Act.
The Division also establishes a single forum for employees to challenge decisions relating to discrimination in the public service. Grievances and complaints are to be heard by the Public Service Labour Relations Board under the grievance process set out in the Public Service Labour Relations Act. The process for the review of those grievances or complaints is to be the same as the one that currently exists under the Canadian Human Rights Act. However, grievances and complaints related specifically to staffing complaints are to be heard by the Public Service Staffing Tribunal. Grievances relating to discrimination are required to be submitted within one year or any longer period that the Public Service Labour Relations Board considers appropriate, to reflect what currently exists under the Canadian Human Rights Act.
Furthermore, the Division amends the grievance recourse process in several ways. With the sole exception of grievances relating to issues of discrimination, employees included in a bargaining unit may only present or refer an individual grievance to adjudication if they have the approval of and are represented by their bargaining agent. Also, the process as it relates to policy grievances is streamlined, including by defining more clearly an adjudicator’s remedial power when dealing with a policy grievance.
In addition, the Division provides for a clearer apportionment of the expenses of adjudication relating to the interpretation of a collective agreement. They are to be borne in equal parts by the employer and the bargaining agent. If a grievance relates to a deputy head’s direct authority, such as with respect to discipline, termination of employment or demotion, the expenses are to be borne in equal parts by the deputy head and the bargaining agent. The expenses of adjudication for employees who are not represented by a bargaining agent are to be borne by the Public Service Labour Relations Board.
Finally, the Division amends the recourse process for staffing complaints under the Public Service Employment Act by ensuring that the right to complain is triggered only in situations when more than one employee participates in an exercise to select employees that are to be laid off. And, candidates who are found not to meet the qualifications set by a deputy head may only complain with respect to their own assessment.
Division 18 of Part 3 establishes the Public Service Labour Relations and Employment Board to replace the Public Service Labour Relations Board and the Public Service Staffing Tribunal. The new Board will deal with matters that were previously dealt with by those former Boards under the Public Service Labour Relations Act and the Public Service Employment Act, respectively, which will permit proceedings under those Acts to be consolidated.
Division 19 of Part 3 adds declaratory provisions to the Supreme Court Act, respecting the criteria for appointing judges to the Supreme Court of Canada.

Economic Action Plan 2013 Act No. 2

[Stella Ambler, Conservative, Mississauga South, ON]

Mr. Speaker, I am pleased to have this opportunity to speak on some of the key initiatives in economic action plan 2013 no. 2.

Our government remains focused on the economy and creating jobs, all while keeping taxes low and returning to balanced budgets. The key to success is balancing the efforts to support job creation and economic growth while respecting commitments to reduce deficits and return to balanced budgets over the medium term.

With the help of Canada's economic action plan, Canada has experienced one of the best economic performances among the G7 countries, both during the global recession and throughout the recovery. Canada has created over one million net new jobs, nearly 90% full time and nearly 85% private sector, since the depth of the global recession in July 2009. This is the strongest job growth record in the G7. Not only that, but both the IMF and the OECD project Canada to have among the strongest growth in the G7 in the years ahead. In fact, the OECD recently projected that Canada will lead the G7 in growth in 2013.

Our government is also committed to keeping taxes low. Unlike the high-tax NDP and Liberals, our Conservative government believes in low taxes and leaving more money where it belongs, in the pockets of hard-working Canadian families and job-creating businesses. Since 2006 we have cut taxes over 160 times, reducing the overall tax burden to its lowest level in 50 years. Our strong record of tax relief has meant savings for a typical family of four in 2013 of over $3,200. Unfortunately, the NDP opposition thinks that higher taxes are the answer.

Just a couple of weeks ago the NDP leader reconfirmed his party's plan to impose a crippling tax hike on job creators and the millions of Canadians they employ, even as they continue to cope with a challenging global economy. As if imposing a $20-billion carbon tax on Canadians was not enough, the NDP leader has another multi-billion dollar tax hike he wants to impose. At a time of global economic uncertainty the NDP wants to take over $10 billion each year out of the pockets of Canadian entrepreneurs and businesses to fund big, bloated government schemes. This punishing NDP tax hike would target job creators, especially small and medium-sized companies with a nearly 50% increase in their tax bills.

When I was very young I started working for my father who had his own hardware wholesale business. Small business taxes at that time were crippling for him. While he managed to stay in business for many years, he always appreciated it when governments understood that small businesses were not in the business of feeding the government coffers. Their business is to sell goods and to employ people.

My father ran his own business over the course of 35 years. The periods of greatest growth were during times when business tax rates were reasonable and low. Our current Minister of Finance and our government understand this and that is why we continue to support job-creating businesses, like the one that I worked for when I was younger.

Of course I did not have to apply for the job. I was given the job automatically because my father owned the business, but I still worked hard. The business did well when it was not all about red tape and spending many hours working out the calculations needed to pay that kind of debt to the government. That is why I want to talk about the small business advantages that we are giving them and the tax increases that would kill jobs and stall Canada's economy. Clearly, Canadians cannot afford these risky tax-and-spend schemes. Thankfully, as I said, our Conservative government understands that high taxes are not the answer.

Our government also understands the importance of general fiscal responsibility. Indeed, before the global recession hit, our Conservative government paid down $37 billion in debt, bringing Canada's debt to its lowest level in 25 years. This fiscal prudence and impressive debt reduction placed Canada in the best possible position to weather the global recession.

When the global recession hit, we were able to respond quickly and effectively with Canada's economic action plan. While other countries continue to struggle with debt that is spiralling out of control, Canada is in the best fiscal position of any G7 nation. In fact, our net to GDP ratio in 2012 was 34.6%, the lowest level among G7 countries, the second lowest being Germany at 57.2%. We can see the gap there. The G7 average is 90.4%.

While the NDP and Liberals want to engage in reckless spending, our government is on track to return to balanced budgets in 2015. Our plan to return to balanced budgets is working.

In 2012-13, the deficit fell to $18.9 billion. This was down by more than one-quarter from the deficit of $26.3 billion in 2011-12, and down by nearly two-thirds from the $55.6 billion deficit recorded in 2009-10. Our government's responsible spending of taxpayer dollars played an important part in these results with direct program expenses falling by 1.2% from the prior year, and by 3.8% from 2010-11.

Overall, measures taken by our Conservative government since budget 2010 will result in a total ongoing savings of roughly $14 billion. This legislation builds on this effort. Bill C-4 will phase out inefficient and ineffective tax subsidies. One example is the labour-sponsored venture capital corporations tax credit. Indeed, a number of independent experts have recognized this subsidy as being ineffective when it comes to creating jobs and supporting Canadian businesses.

Members should not take my word for it. I will tell them what others are saying about this tax credit, the labour-sponsored venture capital corporations tax credit.

A recent paper by the Montreal Economic Institute says:

All things considered, labour-sponsored funds are financial instruments that fulfill neither their economic objectives, namely to make venture capital available to help Quebec businesses, nor their financial objectives of offering a good return to contributors, their performance being interesting only by taking into account the additional tax credit.

Jack Mintz, a respected economist, said:

These credits have not only been ineffective in generating more venture capital, but they have also helped finance poor projects that should have never been funded in the first place.

He said that in 2012.

The C.D. Howe Institute also recognized that providing tax relief to these funds has been:

...a disappointing use of taxpayers’ money. Such funds have been shown in multiple studies, including this one, to do a poor job of achieving public policy aims.

That is from the C.D. Howe Institute E-Brief of September 2012.

I also want to talk about closing tax loopholes, which is contained in Bill C-4, loopholes and other schemes that only benefit a select few. Closing these loopholes is important because when everyone pays their fair share, our tax rates can be kept low, which makes Canada a more attractive place to work, save and invest.

In fact, since 2006 and including measures proposed in economic action plan 2013, our government has closed over 75 tax loopholes. This will result in $2.5 billion in additional revenues in 2013-14, and more than $2.6 billion in 2014-15. Indeed, the legislative proposals in budget 2013 to close tax loopholes are estimated to raise $100 million in revenue in 2013-14, rising to over $270 million in 2017-18, for a total of close to $1 billion over the next five years.

Shamefully, the NDP has voted against every single attempt by our government to close tax loopholes since 2006. I am not sure why it is doing that. I do not think they understand the importance of the one million jobs that have been created since the depth of the recession.

We understand there is still more work to be done and that Canada is not immune to the kinds of global challenges that come from beyond our borders. That is why we are so convinced that our job-creating measures are important and that we need to continue along this track. That is why I believe the legislation should go forward quickly.

The House may know that I had the good fortune to work with our esteemed Minister of Finance, who has won global accolades around the world for his work, his fiscal responsibility, his understanding of Canada's economy and for making sure that we are leading the G7 on so many indicators. It is difficult to be humble on his behalf. The Minister of Finance is, I believe, responsible in large part for the major credit rating agencies giving Canada a rock solid AAA credit rating. Moody's, Fitch, and Standard and Poor's have all given Canada this solid rating. It is something we take for granted. Canadians do not think about that every day. They are able to go about their business knowing that our economy is well looked after by the Conservative government and this Minister of Finance. It is important for Canadians to understand that our commitment to balance the budget by 2015 is an important one. It is ambitious, but we have made that commitment. Ultimately, it enables us to keep taxes low. We have cut taxes 160 times.

Earlier today my colleague from Winnipeg South Centre was talking about her family and the fact that she is not only a chartered accountant but a mother and that she appreciates the measures our government has taken on both of those fronts. I would say too that it is about helping families. We are looking at many countries in Europe that cannot afford to give tax breaks to families. They cannot afford to offer tax credits such as the children's fitness tax credit, which I have taken advantage of with my own children, the new children's arts tax credit and the universal child care tax benefit. These are the kinds of things that help families, putting money directly into their pockets so that they can use those funds for whatever they feel is necessary.

That is the kind of choice we like to provide to parents. We would not be able to do that if we did not have a strong economy. It is all about jobs, the economy and maintaining that long-term economic growth and prosperity. That is why I wanted to speak to the bill today, Canada's economic action plan.

If I might, I would like to compare that to something the Liberal leader said over the summer. I believe it was at the Liberals' caucus retreat. When asked when he would release his plan for Canada's economy, he said that it was too soon for him to be talking about the economy. He did not plan to release that for a long time, possibly a couple more years, maybe before the next election.

It is a good thing that the Liberal Party is the third party in the House, because I cannot imagine a prime minister without a plan for the economy. He has been the Liberal leader for many months now, since the beginning of the year, and he apparently needs a few more years to come up with an economic plan.

I am so proud that we have a Prime Minister and a Minister of Finance in Canada who already have a plan, and that plan is working.

I would be happy to take questions, if there is time, and talk about my support for job creation and this bill's support for job creation and Canada's economic action plan, which is working.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

I hear my colleague from Manitoba shouting at me.

Mr. Speaker, I would like to have some respect. I would like to be able to talk without being called names by my Conservative colleagues on the other side of the House. Thank you very much. I am entitled to respect when I am speaking. If they do not agree with what I am saying, that is all right, but I do not want them shouting at me when I am speaking.

The gap between rich and poor is growing. We are seeing an increase in the cost of living, because the Conservatives have forgotten about the middle class in all their budget measures.

We are seeing an increase in the cost of living, and incomes are lower than ever and they keep on dropping. Of course, if you are a highly paid executive, there is no problem. On the other hand, what is the government going to tell the people in the Toronto area, for instance, who cannot find stable employment? Will it tell them to take two or three jobs so they can make ends meet? No, that is not what a government should say.

In September, Statistics Canada announced that Canadian household debt had reached an all-time high of 166%. How is it that since 2006 the Conservatives have not been able to do anything to stop this increase?

This means that for every dollar a person has, he or she owes $1.66 on a loan or a credit card.

In 2008, our neighbours to the south in the United States learned the hard way just how seriously over-indebtedness could hurt their economy.

I think it is time to help Canadian families. Economists agree that Canadian household debt is a threat to Canada’s economy. Clearly, under the Conservatives, we are on the path to jumping in there with both feet.

The economic situation is even worse among young people, where the unemployment rate has reached 14%. This means that the next generation of workers will not be able to acquire the experience they need to replace the generation that went before.

Increased unemployment among young people early in their careers, and the precarious household debt situation—I think I have clearly described the critical situation to which I referred in my introduction and about which the government has refused to do anything.

In other words, they are in favour of justice and democracy, except when it does not suit their purposes.

We support various amendments in Bill C-4 that aim at reducing tax evasion. We support those amendments, but we are very concerned that the Conservatives are not paying serious attention to the issue of tax havens and the people and the companies that are not making a fair or just contribution to the Canadian economy.

As my colleague from Alfred-Pellan mentioned, we have here a budget that is once again a direct attack on the rights of Canadians.

As I have one minute left, I would simply like to tell the Conservatives that although they say we just vote against everything, we are only waiting for them to invite us to work with them in providing Canadians with a budget that is fair and equitable and gives everyone an opportunity to participate in the Canadian economy, not only the people who are on their side, but all Canadians and all Quebeckers.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I am pleased to rise in the House today to speak to Bill C-4, which is of extreme importance to Canadians and Quebeckers.

We are living in critical times. It is time for us to have a productive debate here for Canadians. The situation is critical. I will explain why it is extremely important to discuss this bill without having a time limit imposed on us. Canadians need us today, and they expect us to take action because their indebtedness and that of young Canadians are at critical levels.

First of all, I want to say how disappointed I am with everything the government has done since its throne speech. Today is the first time I have had a chance to rise, and I am doing so under a guillotine. I know that the Conservatives will cite all kinds of reasons for that, in particular that this bill must be passed extremely quickly.

However, the situation is so serious that the government has no reason not to allow a fair and democratic debate in the House of Commons.

I really believed, but wrongly so, that the Conservatives would take the summer and the additional month to reflect and perhaps even consider the importance of democracy and respect for democracy. However, this bill shows that exactly the opposite is true.

This is the fourth omnibus bill. We know how the Prime Minister shouted and tore his shirt when he was in opposition and the Liberal government tried to introduce omnibus bills. Unfortunately, that was then and this is now, as they say.

This bill is 300 pages long and amends at least 70 statutes, some of which have absolutely nothing to do with the budget. We can already see the government’s bad intentions.

It is introducing a budget that, on the whole, attacks workers' rights, amends rules respecting the Supreme Court, and so on. There is not much about tax evasion or young people, for example. As for the government's new approach, it leaves something to be desired.

This is really a shame for democracy and for the Canadians and Quebeckers who are supposed to be represented here. This government's scandals and mismanagement are so unimaginable I no longer know where to turn. I do not even know where to start.

This is a failure. The government's economic plan is a failure. Instead of tackling household debt, it attacks workers' rights and the family itself. However, it is not focusing on the real problems. For example, the Conservatives are going to leave us with the biggest deficit in Canadian history.

It is unbelievable how the Conservatives can boast, but they offer nothing concrete. In 2015, Canadians will see how badly the Conservatives have mismanaged the economy. Canadians will see that the Conservatives have left them to deal with the biggest environmental, economic and social deficit in Canadian history. Canadians will have no trouble seeing that record because the figures prove it.

In addition, what is disturbing is that most of the measures in this budget are not budget measures. They amend the rules for appointing judges to the Supreme Court. Perhaps the Prime Minister just realized he had to correct his own mistakes.

I challenge any Conservative to rise in the House and show me how changing the rules for the Supreme Court will help Canadian families get out of record debt. Can any Conservative explain that to us? I would really like someone to do that. I can hear them laughing on the other side. I do not think this is funny.

Today, my colleague from Gatineau moved a motion to remove the appointment of Supreme Court judges from the budget implementation bill.

I sincerely hope that the government will take this proposal to heart, because it is the kind of proposal that must be discussed. However, this should not be done within the framework of an omnibus bill, because these are things that involve our justice system, not our economic system.

The Conservatives never get tired of saying that Canadians know they cannot rely on the NDP to put their needs first and give middle-class Canadians a well-deserved break. However, the NDP’s view of the economy is one in which we maximize opportunities by drawing on Canada’s enormous advantages, in order to give Canadians the best in everything.

We have the best score on the budget, from sea to sea. This is a fact. It is as simple as that. My colleague has been shouting for a while now that I am being rhetorical, but it is a fact. The proof is in the figures. The NDP governments have the best scores in terms of budgets and finance.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, before beginning, I would like to let you know that I will be sharing my time with my charming colleague from La Pointe-de-l'Île.

It is my privilege today to be able to speak to Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures. I am not privileged because of the quality of the bill, which still leaves something to be desired. I am privileged because so few parliamentarians will be able to debate this bill.

Just this morning, in fact, in the hours following its introduction in the House, the government imposed time allocation on Bill C-4.

After forcing us to wait a whole month before resuming work by proroguing Parliament, the Conservatives decided to bring in a time allocation motion that prevents members of Parliament from speaking to this omnibus bill. The Leader of the Government in the House of Commons decided to move time allocation on the bill in order to fast-track the debate. However, this bill is not just a simple legislative bill.

By means of Bill C-4, the Conservatives are trying for the fourth time in two years to escape the scrutiny of parliamentarians and the public. They are trying to get major changes through Parliament without sufficient study by Parliament, despite the fact that some of the amendments in Bill C-4 are meant to correct mistakes they made in their big rush to pass the last omnibus bill.

I will be voting against Bill C-4 both because of its content and because of the process used, which I feel is wrong. The New Democratic Party will not support the Conservatives in their attempt to avoid parliamentary oversight. The bill contains many extremely complicated measures that deserve to be studied a great deal more attentively.

The government before us today is worn out and negligent. The NDP refuses to play the Conservatives’ game. We must take Parliament and our institutions seriously and act accordingly.

Taking advantage of the introduction of Bill C-4 to amend through the back door a number of measures that are not even related to the budget shows a total lack of consideration for Canadians. The government is trying to make major changes secretly and without consulting those who will be affected by those changes.

I realize that the Conservatives are not really crusaders for consultation, but they should take the time to listen to what Canadians are saying. Canadians are giving serious consideration to what is currently happening on Parliament Hill. They are losing confidence in the political class, and the Conservatives are doing absolutely nothing to help them regain that confidence quickly. I am highly critical of the government’s lack of study and I am deeply worried about the consequences it may have for our country. It greatly undermines action by Parliament.

I would like to highlight a few examples to clarify my point, and I would like to start with the frontal attack on the rights of workers. For the President of the Treasury Board, it must be absurd for the government to have to negotiate and deal with workers in good faith. Please let me explain.

First, the designation of essential services to Canadians would change with Bill C-4. At present, workers and the government decide in tandem what an essential service is and what it is not. Now the government wants to make the decision about essential services on its own.

How does this affect workers? Well, it is a direct attack on the right to strike. Essential services are services that must be made available to Canadians during a strike. The repercussions of this decision are extremely serious.

With the proposed changes, unions cannot call a strike if public servants designated as essential by the government are involved. Who is designated as essential, though? This question has gone unanswered. I even tried to get an answer from my Conservative colleague opposite who just spoke, and he was very good at being evasive.

My colleague from Pontiac tried to ask the President of the Treasury Board about this in question period earlier today. He refused to answer. We heard absolutely nothing.

Another major change to workers' rights is the change in the definition of the word “danger”. A worker who does not feel safe in his workplace can inform a health and safety officer of his concerns. Bill C-4 changes the definition to imminent danger or serious danger. What do these new changes mean? What tangible effect will this have on our workers? These are valid questions.

Furthermore, workers will no longer contact their health and safety officers about these problems. Instead they will contact the minister's office. Will he work 24/7 to respond to workers in danger? Will it be more difficult for them to exercise their rights? Will there be more accidents in our workplaces? The official opposition is truly worried about the health and safety of Canadian workers.

What worries me the most is that these measures that I just spoke about, which affect the rights of workers, have absolutely nothing to do with a budget implementation bill. What are the Conservatives playing at?

In conclusion, I would like to briefly mention the direct attack that the Conservatives made on francophones throughout Canada. Once again, I will provide some explanation.

I would like to quote an article by Marie Vastel that was published in the October 24 issue of Le Devoir. It says:

When the government introduces any major legislation, it holds a briefing for MPs, senators and their assistants in order to explain that legislation. Usually, simultaneous translation is provided and officials then answer questions in both official languages. However, such was not the case on Tuesday, when the briefing on the budget implementation bill that was introduced that same morning began in English only.

The government was giving a presentation on a bill that is over 300 pages long, the fourth mammoth bill that the Conservative government has introduced, and there was no simultaneous translation from English into French. It was an NDP member whose mother tongue is French who stood up during the government's briefing and asked for the French translation, saying that the bill was extremely complex, that it was over 300 pages long and that she did not understand the details. After she spoke up, there was some commotion. In the end, another English MP spoke up and said that someone would have to translate so that the member could understand. People left the room in protest and the government finally decided to postpone the briefing to Wednesday, which was yesterday. The briefing therefore began after Bill C-4 was introduced in the House.

The opposite never would have happened. There never would have been a briefing in French without simultaneous translation into English. That would never happen. Honestly, I am a bit surprised that it took so long for them to react. I cannot believe that this happened. Some MPs speak English, others speak French. Those are our two official languages, and this demonstrates a lack of respect, not only for the Quebec nation, but also for francophones across the country. I am extremely disappointed in the way Bill C-4 treats Canadians.

This bill touches on many areas; we could go on for days. This bill affects more than just workers' rights. The Minister of Citizenship and Immigration is given new powers, and I have yet to find the link between that and a budget implementation bill. It affects unions' venture capital funds. It addresses the mistake of increasing taxes on credit unions and so on. There are even changes to the Supreme Court. It makes no sense.

I want to say, once again, that I am extremely disappointed in how the Conservatives opposite are treating Canadians. I look forward to seeing how the voters will treat them in 2015.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, I wish to thank my hon. colleague across the way for his speech.

A little earlier today, the President of the Treasury Board had a hard time answering one of the questions asked by my hon. colleague from Pontiac regarding how the Conservatives are changing the designation of essential services for Canadians in Bill C-4.

The definition of essential services will no longer be decided on jointly by workers and the government. Instead, the government will unilaterally decide which services are essential.

My question to my colleague opposite is simple: what services will the government designate as essential?

[Stephen Woodworth, Conservative, Kitchener Centre, ON]

Mr. Speaker, I am proud to rise today in support of budget implementation act No. 2. This act would ensure that important provisions in budget 2013 would be implemented.

Before discussing the highlights of the bill, I want to mention the government's plan for balancing the budget and I also want to mention Canada's economic success. This government has an effective plan to balance the budget by 2015. It is a challenging task, but achievable. As with budget 2013, the bill would help the government to achieve financial sustainability.

World leaders, of course, are very interested in Canada as a result of our government's example and our economic success. Canada leads the G7 in job creation, in income growth and in keeping debt levels low. Canada is among the few countries in the world with an AAA credit rating.

The government's continued sound fiscal management will generate continued respect, but despite our strong financial performance, there are still challenges that we must face. The United States is experiencing ongoing difficulties. The European Union is continuing its long upward climb.

Last week's historic trade deal between Canada and the European Union shows our government's determination to seize international opportunities for Canada. The government must reduce its deficit so Canadians will be encouraged to do the same. We must practise what we preach.

The deficit was a justified response to the 2008-09 economic recession, but it must be temporary. By 2015, the government will balance the budget and will introduce legislation to encourage balanced budgets in the future. This will ensure that in normal economic times there will be concrete guidelines for returning to balance after any economic crisis.

With an aggressive debt to GDP target of 25% by the year 2021 and a plan in place, this government is on the right track. I am proud that the government, during and after the world's worst economic recession in almost 80 years, remains recognized around the world as an example for others to follow. I am very proud of the leadership of our Prime Minister and our Minister of Finance.

The bill will deliver real solutions for Canadians and it reflects the goals of reducing the country's deficit and returning to balanced budgets. I want to highlight three aspects of the bill that I am particularly pleased with. I will elaborate on how the bill would support job creators, close tax loopholes and also respect taxpayer dollars.

Job creation is especially important to me as the representative for Kitchener Centre. BlackBerry, based in Kitchener—Waterloo, has suffered losses over the past couple of years and some of my constituents are on the hunt for jobs that match their highly talented skills. We enjoy some business incubators which support start-up companies and these include the renowned Communitech and also programs at the University of Waterloo and Wilfrid Laurier University, world-class leading centres of education.

As Canada's small business week wraps up tomorrow, I am grateful to say that this bill would extend the hiring credit for small business. This would benefit 560,000 job creators across Canada, and hundreds of those job creators are in my region of Kitchener—Waterloo. With over one million jobs created since the depth of the global recession, this hiring credit would create even more places for the bright minds of Canada's future.

The bill would also freeze employment insurance rates for three years, leaving $660 million in the pockets of job creators and workers in 2014 alone. EI costs employees and employers hard-earned money. When I look at small businesses employing just two, three or four individuals, I see that this freeze will help owners to balance their books just as the government is balancing its books.

The government will also help the environment through the expansion of the accelerated capital cost allowance to include investments in clean energy generation. I was very pleased to see this. It adds to the government's existing investment for small business which is given through a small business financing program offered by Industry Canada and by loans offered by the Business Development Bank and by grants from the Canadian Youth Business Foundation.

Achieving clean energy solutions is a priority. The challenge business owners face is to secure initial capital to develop those long-term solutions. Finding cost-efficient clean energy solutions is critically important for our future and developing those solutions takes extensive research.

As a long-time member of the environment committee, I am always looking for ways to ensure a sustainable future. Job creators will be encouraged to continue looking for clean energy generation through the accelerated capital cost allowance measure in this bill.

I am confident that Bill C-4 will benefit small businesses, start-ups and job creators in Kitchener Centre over the next number of years based on these new initiatives.

A second focus within this bill is closing tax loopholes and combatting tax evasion. I want to highlight the importance of these measures.

Hard-working taxpayers can be confident that the bill would ensure that everyone would pay their fair share of taxes. When everyone is paying their fair share, it keeps taxes low for Canadian families and creates incentives to invest in Canada.

The government will introduce new administrative monetary penalties and offences to deter the use, possession, sale and development of software designed to falsify records for the purpose of tax evasion.

Although this government will always keep taxes low, we insist that all citizens pay all of their required taxes. Heavier penalties will force wrongdoers to use proper software and pay what they owe.

The government will also close more tax loopholes related to money transfers to ensure that everyone pays their fair share. It has already introduced rules to prevent foreign affiliates from converting otherwise taxable surplus income into the form of loans. There is also an information reporting regime for tax avoidance transactions.

Finally, the government will extend in certain circumstances the time for the Canada Revenue Agency to reassess taxpayers who fail to report income from foreign property.

The third point that I will highlight are measures to respect taxpayer dollars through initiatives introduced in March, scheduled to be rolled out upon budget approval. For example, by modernizing the Canada student loans program with digital communication, the government will deliver efficient ways for students to pay down their debt quickly and to apply for loan approvals or extensions sooner.

Another timely measure in economic action plan 2013 are steps to prevent abuse of the temporary foreign worker program, abuses which concern my constituents. The program was created to fill acute labour needs when Canadians were not available. It was never intended to bring in temporary foreign workers to replace Canadian workers. The reforms brought forward in the spring budget stem from the government's ongoing review of this program.

The budget would increase the government's ability to revoke work permits, enabling immediate action against employers who did not comply with the rules. These changes would also require that employers using the temporary foreign workers program pay temporary foreign workers the prevailing wage for a job. These are common sense changes made to the program to remove unintended incentives to hire foreign workers. These reforms would ensure that Canadians would always be at the front of the hiring line.

Other measures will deliver important savings for Canadians. The fact is that many products needed to support families are consistently priced higher in Canada than in the United States. By removing tariffs on imported baby clothing and sports equipment, budget 2013 will ensure that difference is reduced.

We can all be pleased that budget implementation bill No. 2 delivers a solid plan for creating jobs and economic growth, all while keeping taxes low and still balancing the budget by 2015.

This bill is great news for my constituents in Kitchener Centre. I invite all members of the House to join me in supporting jobs, growth and long-term economic prosperity. I ask that members vote yes to this bill.

[Bryan Hayes, Conservative, Sault Ste. Marie, ON]

Mr. Speaker, I am pleased to have the opportunity to add my comments to today's debate on Bill C-4, a piece of legislation that would create jobs and economic growth in communities across our country, including my riding of Sault Ste. Marie. Indeed, today's legislation is part of our government's plan to create jobs and economic growth and to secure Canada's long-term prosperity for years to come.

As a matter of fact, since 2006, our government has been taking concrete action to ensure that Canada's economy remains strong. Unlike the high-tax New Democrats and Liberals, our Conservative government believes in keeping taxes low and leaving more money where it belongs: in the pockets of hard-working Canadian families and job-creating businesses. That is why since 2006 we have cut taxes over 160 times, reducing the overall tax burden to its lowest level in 50 years. Overall, our strong record of tax relief has helped remove over one million low-income Canadians from the tax rolls. That is not all. It has also meant savings for a typical Canadian family in 2013 totalling over $3,200.

How did we accomplish this? The answer is simple. We have cut taxes in every way government collects them: personal taxes, consumption taxes, business taxes, excise taxes, and more. This includes cutting the lowest personal income tax rate to 15%; increasing the amount Canadians can earn without paying tax; introducing pension income splitting for seniors; reducing the GST from 7% to 5%, putting an estimated $1,000 back in the pockets of an average family; introducing the tax-free savings account, the most important personal savings vehicle since RRSPs; reducing the small-business tax rate from 12% to 11%; eliminating consumer tariffs on babies' clothes, sporting goods and exercise equipment. The list goes on.

It is measures such as these, which leave more money in the pockets of Canadians, that have helped Canada to emerge from the recession in one of the strongest positions among the developed world. In fact, since the depth of the recession, over one million net new jobs have been created, with most in high-wage industries. This is by far the strongest job creation record in the entire G7. Indeed, Canada's unemployment rate is at its lowest level since December 2008 and remains below that of the U.S., a phenomenon that has not been seen in nearly three decades. Contrary to what the opposition leaders may believe, Canada is on strong economic footing.

However, we are not the only ones who think so. Let us see what others are saying. Moody's report on Canada for 2013 states that thanks to its diversity and solid fundamentals, Canada's economy has weathered the post global financial crisis period better than most of its peers.

According to Fitch Ratings:

Canada has a good track record of prudent fiscal management. Its fiscal credibility was boosted by the timely withdrawal of the fiscal stimulus implemented during the global financial crisis and the roadmap provided...to achieve a balanced federal government fiscal position by 2015/16. ...the consolidation path is realistic.

With reviews like these, it is no wonder Canada is one of the few countries in the world to boast a triple-A credit rating from the three major credit rating agencies.

Let us talk a bit about support for job creators. Despite Canada's economic success, we cannot become complacent, and our government understands that. We have repeatedly said that Canada's economy is not immune to economic challenges beyond our borders. We have been and will continue to be impacted by the ongoing turbulence in the U.S. and Europe, among our most important trading partners. That is why the Canada–EU trade agreement is so significant. It will bring an additional $12 billion annually to the Canadian economy, creating 80,000 new jobs and opening up a market of 500 million consumers and a $17-trillion economy.

That is also why economic action plan 2013 focuses on positive initiatives to support job creation and economic growth while returning to balanced budgets, ensuring Canada's economic advantage remains strong today and into the future.

Today's legislation contains a number of measures to support job creation and economic growth. This includes extending and expanding the job hiring credit for small business, which would benefit an estimated 560,000 employers and provide an estimated $225 million in tax relief in 2013. Bill C-4 would also increase and index the lifetime capital gains exemption. This positive measure would increase the rewards of investing in small business by making it easier for owners to transfer their family business to the next generation of Canadians. Today's legislation would also expand the accelerated capital cost allowance to further encourage investments in clean energy generation.

That is not all. Our government is continuing to build on our sound economic position by freezing EI premium rates for the next three years. This action alone would leave $660 million in the pockets of job creators and workers in 2014 alone.

Despite what the opposition may have us believe, this tax relief would help support Canada's continued economic recovery and sustained, business-led, long-term growth. However, do not take my word for it. Let us hear what others have to say. Diane J. Brisebois, president and CEO of the Retail Council of Canada agrees. She says, “This freeze on premiums will mean more money for employers to invest in other important areas such as employment, training and infrastructure.”

Dan Kelly, president of the Canadian Federation of Independent Business, said the “announcement of an EI rate freeze is fantastic news for Canada’s entrepreneurs. This move will keep hundreds of millions of dollars in the pockets of employers and employees which can only be a positive for the Canadian economy.”

There is more. Joyce Reynolds, the Canadian Restaurant and Foodservices Association's executive-vice president of government affairs notes:

Payroll costs have a significant impact on overall labour costs. They are a barrier to hiring, particularly for inexperienced workers.... We are pleased the government is demonstrating commitment to youth...by holding the line on these profit-insensitive costs.

Unlike the opposition, our government understands that tax relief is important to Canadian families. I encourage the members opposite to vote in favour of this important measure, which would leave more money in the hands of Canadians.

Canada is leading the world in job creation, with more than one million net new jobs created since the depth of the recession. However, there is work yet to be done. That is why implementing Canada's economic action plan is so important. It is for that reason that I urge all members of the House, and especially the members opposite, to support these job creating measures.

Although, who are we kidding, we all know the opposition will be voting against these measures as they have time and time again. The only thing the NDP seems to support are risky spending schemes and forcing a $20 billion carbon tax on Canadian consumers and job creators. That is more than I can say for the Liberals, who unbelievably do not even have a plan for the economy. They have announced the plan will be released during election mode in 2015. That is unheard of.

It is clear, and Canadians know this, that when it comes to the economy, our Conservative government continues to be the right choice.

[Bob Dechert, Conservative, Parliamentary Secretary to the Minister of Justice]

Mr. Speaker, I will be splitting my time today with the member for Sault Ste. Marie.

I am pleased to speak today in support of Bill C-4 regarding the implementation of budget 2013. Budget 2013 is full of good news and helpful measures for my community of Mississauga and, indeed, all Canadians.

I would like to take this opportunity to highlight some of the measures that are of great significance to my community, but before I do so, I believe it is important to note what is not in budget 2013. What is clearly missing from budget 2013 is new taxes. That is right; unlike Liberal budgets of the past and the dreams of the NDP, our government did not increase the tax burden on hard-working Canadians. In fact, our government has reduced the tax burden on working Canadians and job creators more than 150 times, reducing the overall tax burden to its lowest level in more than 50 years.

Our government is delivering more than $60 billion in tax relief to job-creating businesses. The federal general corporate income tax rate was reduced from 21% to 15% and the corporate surtax that represented an additional 1.12% was eliminated for all corporations. The small business tax rate, which is so important to the thousands of small business owners and their employees in Mississauga, was reduced from 12% to 11% and the amount of income eligible for this lower rate was increased to $500,000.

In fact, our strong record of tax relief has meant annual savings for a typical family of four of over $3,200. We have achieved this by cutting the lowest personal income tax rate to 15%; increasing the amount that Canadians can earn without paying tax; introducing pension income splitting for seniors; reducing the GST from 7% to 5% and putting an estimated $1,000 back into the pockets of an average family; introducing and enhancing the working income tax benefit; introducing the tax-free savings account, which is the most important personal savings vehicle since the RRSP; and increasing the age credit and the pension income credit. Overall, we have removed over one million low-income Canadians from the tax rolls.

As a lawyer engaged in advising businesses, I unfortunately witnessed thousands of jobs leave Canada during the 1990s and early 2000s due to very high personal and business tax rates compared to those in most other industrialized nations. For years, businesses chose to create jobs elsewhere and individual entrepreneurs and people with high technology skills chose to live in the United States because the unreasonably high tax rates in Canada made it difficult for them to operate a viable business.

Today, the combined federal and provincial corporate tax rates in Canada compare very favourably with those in jurisdictions such as the states of New York, Massachusetts, Pennsylvania, Michigan, Ohio, Illinois and California, places that we compete with every day for the creation of jobs. This is particularly the reason why our national unemployment rate is below that of the United States for the first time in 30 years and our job-creation record is the best in the G7. With our enviable fiscal situation, having the lowest net debt to GDP ratio in the G7, we are in a very good position to keep our taxes at low and reasonable levels while our counterparts in the United States and Europe will be forced to raise their taxes to reduce their deficits and debts.

When I first ran for office, people in my community said they did not believe that any politician would actually lower taxes. Our government, led by the Prime Minister and the Minister of Finance, did exactly that, and they began reducing taxes immediately upon forming government in 2006. The Mississauga Board of Trade has told me it believes that our government's tax policies have helped its members' businesses survive the recession, recover, expand and hire new employees. These are some of the most important reasons that our economy is doing much better than our competitors in the United States and Europe and that Forbes magazine has declared that Canada is the best place in the world in which to do business. I am confident that our government's tax policies will help to ensure a bright economic future for all Canadians.

In addition to the good news about taxes, the Minister of Finance indicated in his budget speech that Canada remains on track to balance the budget in 2015-16. This is very good news indeed. In addition to holding the line on government growth, budget 2013 includes more savings in government spending, totalling $2 billion by 2015-16 through numerous common sense improvements, including reducing wasteful departmental spending, reducing travel costs through the use of technology, continuing to control public service compensation and eliminating tax loopholes that benefit a select few.

As I mentioned earlier, Canada is leading the G7 in net debt to GDP ratio, and at the recent G20 conference in Russia, the Prime Minister showed real international leadership in committing to further reduce Canada's net debt to GDP ratio to 25% and encouraged other G20 nations to follow Canada's lead and make the same government spending reductions necessary to reduce their debt ratios as well.

In today's very competitive global marketplace, it is important that our manufacturers continually upgrade their productive machinery and equipment to make use of the most efficient and up-to-date technology. Utilizing the latest processes improves the quality and marketability of their products, reduces their costs of production and makes them more energy efficient.

Our government understands these realities of modern business. That is why I was very pleased to see that in budget 2013, our government is providing an additional $1.4 billion in tax relief to job creators through a two-year extension of the temporary accelerated capital cost allowance for new machinery and equipment.

This is very good news, especially in light of the Prime Minister's announcement of the comprehensive economic and trade agreement between Canada and the European Union. Our manufacturers now have very good reason to want to invest in new plants and machinery as they ramp up to take full advantage of the unprecedented access to the more than 500 million European consumers that the CETA agreement will provide to Canadian producers.

The extension of the accelerated capital cost allowance could not have come at a better time. Our government understands that small businesses are the backbone of our economy. More Canadians are employed in small businesses of less than 10 employees than in any other size of business.

Many of my neighbours in Mississauga are new Canadians. They have come to Canada from every nation in the world with skills, drive and ambition, strong work ethics and a determination to succeed. However, most new Canadians do not find work in the ranks of large industrial corporations. More often than not, they start their own small businesses and create work for other Canadians.

That is why I am happy to note that budget 2013 will extend and expand the temporary hiring credit for small businesses. An estimated 560,000 employers will benefit from this measure, and it is expected to save small businesses about $225 million in 2013.

I have been told by many small business owners that this has helped them to expand, and with the signing of the CETA agreement, these entrepreneurs will be able to meet the new opportunities created by opening European markets to our goods and services.

Investments in public infrastructure create jobs, drive economic growth and provide a high quality of life for families in Mississauga and every community across Canada. Mississauga and Peel region have benefited greatly from investments made by our government since 2006 in transit, roads, water treatment, a new celebration square, improvements to community centres, libraries and pools, a new instructional centre for University of Toronto Mississauga and a new Mississauga campus of Sheridan College, among dozens of other projects.

Mississauga and other municipalities have been asking for long-term predictable infrastructure funding. Budget 2013 delivers this certainty for the next 10 years by providing more than $53 billion in predictable infrastructure funding.

This represents the largest and longest federal investment in job-creating infrastructure in Canadian history, including a community improvement fund of $32.2 billion through gas tax fund payments and the GST rebate for municipalities to support community infrastructure projects that will improve the quality of life of Canadian families; a new building Canada fund of $14 billion to support major economic infrastructure projects; a renewed P3 Canada fund of $1.25 billion to build infrastructure projects faster through public private partnerships; and over $10 billion in investments in federal public infrastructure.

Canadians know that our Conservative government believes in keeping families strong. Budget 2013 contains several key measures to help Canadian families, including enhancing the adoption expense tax credit to better recognize the unique costs associated with adopting a child, and supporting palliative care services.

Canadian businesses succeed globally and are well poised to take advantage of the new opportunities created by unfettered access to the European market by continually innovating and commercializing new products and technologies. Our government is supporting them by improving support for Canada's aerospace industry by investing almost $1 billion in the strategic aerospace and defence initiative, which will benefit important Mississauga employers such as Pratt and Whitney Canada and Honeywell.

All of these measures and more will ensure the future economic prosperity and security and quality of life for the people of Mississauga and all Canadians. For these reasons, I am pleased to support Bill C-4 and encourage all hon. members to do likewise.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, the member has drawn our attention to changes in Bill C-4 that were necessitated by the rush in passing the previous budget implementation bill, the changes that were unintended that caused further tax damage to credit unions.

I am also aware of changes in this new bill, Bill C-4, that will be required because of mistakes made in treating income for fishermen by failing to properly deal with the income for fishermen versus highest weeks, versus their total take for the season.

It seems to me that we can make a very good case as members of the opposition that the Conservative Party mania for refusing amendments and for pushing bills through quickly is forcing Parliament over and over again to go back and pass new legislation months later to fix mistakes. Bill C-45 fixed mistakes that were in Bill C-38. Now Bill C-4 is fixing mistakes that were in Bill C-60.

Could my hon. friend give me any of her thoughts on the problems of holding up the House through passing bills too quickly?

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I rise to speak to Bill C-4, a second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures. It was interesting to hear the Conservative House leader talk about the planned deficit reduction and how the Conservatives were ahead by $7 billion. A good question that would be welcomed at some point for the government to answer is exactly how much of that deficit reduction was as a result of money that did not flow to approved programs and services. We have certainly heard from communities that money they expected to see or proposals they had submitted had not been funded, despite the government announcements. Therefore, it would be good for the House to know that.

This bill is the second act to implement budget 2013. It is another budget implementation bill that is about 300 pages. This legislation amends or repeals 70 pieces of legislation. Some of what it tackles is: it strips health and safety officers of their powers and puts nearly all of these powers in the hands of the minister; it significantly weakens the ability of employees to refuse to work in unsafe conditions; it moves to eliminate binding arbitration as a method to resolve disputes in the public service; and it guts Canada's most venerable scientific research institution, the National Research Council.

I want to thank our House leader, the member for Skeena—Bulkley Valley, for raising the fact that once again the government has limited debate. This is the fourth attempt by the Conservatives to evade scrutiny by parliamentarians and the public. In the past we had Bill C-38, Bill C-45 and Bill C-60. Canadians deserve an opportunity to hear a detailed, thorough, in-depth study of such wide-ranging pieces of legislation, yet we have the limiting of the ability of the House to scrutinize the legislation. Why should we care about that?

In the past we saw the government bring forward legislation that had errors in it. Because of the complexity of the legislation and the length of time we had to review it, the government had to bring forward subsequent legislation to correct that.

This legislation is fixing something that happened due to a technical mistake in Bill C-60, which would have doubled the taxation level of credit unions and caisse populaires. In September, tax experts discovered that the changes made in Bill C-60 would result in Quebec taxpayers being overburdened on dividends compared to taxpayers in other provinces.

Because I only have 10 minutes, I will focus on three particular aspects of the legislation.

First, the legislation would reduce the number of permanent members on the Veterans Review and Appeal Board.

Second, it would fix the mistakes with respect to the tax hike on credit unions.

Third, it would push ahead the Conservative plan on the $350 million tax hike on labour sponsored venture capital funds.

With respect to veterans, Bill C-4 would reduce the number of permanent members on the Veterans Review and Appeal Board from 28 to 25. What is disappointing is that it was an opportunity for the Conservatives to bring forward separate legislation that looked to improve the Conservative record on veterans affairs. We know the NDP has not always been happy with the Veterans Review and Appeal Board, but simply changing numbers will not improve the situation.

In my riding of Nanaimo—Cowichan, the veterans office has closed and veterans are now forced to go further afield in order to get the services they require.

Just so Canadians understand a bit about the Veterans Review and Appeal Board, of the 76,446 Canadian Forces' clients of Veterans Affairs Canada, 1,400 are totally and permanently disabled and 406 of them will not receive a pension or allowance from the Canadian Forces.

The plan proposed by the ombudsman is based on an actuarial analysis to accurately determine for the first time how current benefits neglect certain veterans and will continue to neglect them unless changes are made quickly. Veterans Ombudsman Guy Parent has said that more than 400 of the most severely disabled veterans in Canada are not eligible for the Canadian Forces pension plan, while hundreds of other permanently disabled veterans could suffer the same fate and risk spending their retirement years at a lower standard of living than they had before the age of 65 due to sufficient income.

Certainly in my riding of Nanaimo—Cowichan we hear regularly from veterans and their families about their difficulties in accessing services, that they cannot get access to some services that they expected and that the money that is available simply does not respect and honour the service to our country that many veterans made.

I have spoken in the House previously about my father being a long-serving member of the Canadian Armed Forces and I am proud to say that I grew up on army bases from coast to coast.

I have a letter from a former member of the RCMP that talks about the assault on health care benefits for members of the armed forces and the RCMP. I will read a brief note from that because I think this is part of what the Veterans Appeal Board hears about the discrepancy and the difficulties in funding and whether a member is entitled to funding. The member said:

I have written...expressing my concern and profound disappointment with the fact that the government has arbitrarily decided to claw back so many necessary treatments after we risked our health and indeed our lives...I was assured that my health and the welfare of my family would be looked after. That sacred trust has been unabashedly broken.

While that in and of itself is repugnant, my greater fear is that once the members begin to see that their efforts in ensuring the safety of Canadians may actually result in huge costs to them, they will necessarily become more hesitant to engage in actions that risk their health and well being. This policy is short-sighted, unfair and contrary to Canadian values.

When we ask members of the armed forces or members of the RCMP to risk life and limb, we need to respect that when they come back to Canada or when they retire from the forces, they are treated in a fair and respectful manner. It would be incumbent upon the government to actually work with veterans and their families to ensure the services provided are adequate.

The second piece I will touch on is fixing the mistake on the credit unions' tax hike.

The bill introduces changes to fix a legislative error the Conservatives made by rushing the last omnibus budget bill through. Their mistake hiked taxes on credit unions to 28%, instead of the intended 15%.

I will read from the Credit Union Central of Manitoba remarks to a House of Commons standing committee on Bill C-60. The reason I quote from that previous presentation is because it highlights the importance of credit unions in our communities. In my riding of Nanaimo—Cowichan we have a couple of different credit unions and they are very important in all of our communities, but in particular, in some of our smaller communities. The Credit Union Central of Manitoba said:

Many credit union branches are in communities that other financial institutions vacated because they were not deemed profitable enough. Our business model, paired with fair tax policy like the additional deduction, has made it both possible and attractive for credit unions to grow in places where our competitors have retreated.

It goes on to say that the removal in Bill C-60 of the additional deductions of credit unions would simply compound the impact of regulatory demands by requiring credit unions to pay a higher portion of their net income in federal tax and further reduce their ability to build capital, invest in new technology and stay competitive.

This was a brief that was presented when Bill C-60 was in the House for a reading and because we had limited time to debate that, there was not enough attention paid to that and other presentations on the impact of Bill C-60, so now we are amending that mistake.

It concludes its presentation by saying:

I would argue that this tax deduction has proven to be good public policy. If it were to remain in place it would continue to be good public policy because it will help credit unions provide effective competition in the financial services sector and assist with the federal government's stated desire to increase competition in this sector. It would also represent good public policy by helping maintain strong financial services in as many communities as possible and contribute to the sustainability of the many communities in rural Canada where credit unions are the only financial institution.

On the venture capital program, this has been a very successful program in British Columbia. There was an evaluation of the venture capital program and it indicated that not only did it contribute to job creation, but it also contributed to the fact that it helped grow companies which then went on to expand and become more successful companies.

Removing the supports for that program is unfortunate, particularly when the government continues to talk about the importance of job creation and supporting small business. Therefore, we would like to see the government reverse its decision on that.

The House resumed consideration of the motion that Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, be read the second time and referred to a committee, and of the amendment.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I thank the opposition House leader for this opportunity to once again confirm the approach of the government when it comes to the use of section 78(3), which is time allocation.

The purpose of section 78(3) is to allow the facilitation of the scheduling of our business here in Parliament. The member has often said that it is designed to limit debate, but we have always said it is not designed for that purpose at all. Time allocation is designed to ensure adequate debate and to create certainty for members of Parliament so they will know when the debate will occur. It provides some certainty of when to expect a vote to occur, so that members can organize their affairs in that manner. It facilitates the business of the House so that there is adequate debate and decisions are made.

For that reason, he has said on a number of occasions now that the amount of time we have provided is as long as he wishes or longer than he wishes. That is because time allocation is not a device for eliminating debate but a device for scheduling the House in an orderly and productive manner. That has been our approach throughout, as it was today.

This afternoon, in that regard we will resume the second reading debate on Bill C-4, the economic action plan 2013 act. The bill was introduced on Tuesday on the heels of an impressive announcement from the Minister of Finance indicating that recent projections for the federal deficit show that the government is making strong progress, reducing that deficit by a further $7 billion.

Bill C-4 would build upon this strong track record. It includes initiatives that will build a strong economy and create jobs, support job creators, close tax loopholes, combat international tax evasion, and respect taxpayers' dollars.

Over half a million job creators will benefit from our expansion of the hiring credit for small business that is in the bill.

We are also introducing new penalties and offences for criminal tax evasion, while closing tax loopholes.

As always, we continue to respect taxpayers' dollars with initiatives that will improve the efficiency of the temporary foreign workers program and modernize the Canada student loans program.

That debate will continue tomorrow, Monday and Tuesday.

On Wednesday, we will debate a bill to establish the Canadian Museum of History, which is listed on today's notice paper.

Next Thursday, we start debating Bill C-5, the Offshore Health and Safety Act, which was introduced this morning.

Finally, as hon. members will recall, the House unanimously—and kindly—agreed earlier this week that the House will not sit on Friday, November 1, to enable Conservative members to attend our policy convention in Calgary.

Second Reading

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, it is an honour and privilege to stand here today to talk about Canada's economic action plan 2013, a plan for jobs, growth, and long-term prosperity.

Bill C-4 will allow us to continue with the implementation of our economic action plan 2013. With that in mind, I would like to remind my colleagues of the many great things contained in the budget this year. I encourage all of my constituents, and indeed all Canadians, to visit the website at actionplan.gc.ca, where they will be able to find all of the pertinent information regarding the budget, including Bill C-4.

Let us start with the new building Canada plan, which would provide funds of over $53 billion over 10 years. Part of that is the new building Canada fund. Economic action plan 2013 would provide $14 billion over 10 years. Of that, $4 billion will be found in the national infrastructure fund, which will support investments in projects of national significance. There is also a $10 billion provincial-territorial infrastructure fund that would support projects at the regional and local level.

The new building Canada plan also contains a community improvement plan, which consists of an indexed gas tax fund and an incremental GST rebate for municipalities. All of this would equal over $32 billion.

Last but not least, the new building Canada plan contains a P3 Canada fund, which would renew a project that already exists. We strongly believe that P3s are a good way to accomplish great things while saving taxpayers money.

I would like to talk about another major item in our economic action plan 2013. That is our plan to create high-paying jobs and help businesses succeed. This one contains many things that will be important to my riding.

One of the biggest items is the two-year extension of the accelerated capital cost allowance for new investment in machinery and equipment in the manufacturing and processing sector. As we all know, Alberta is Canada's beating heart when it comes to growth of industry in the energy sector. In my riding, I know that some of the local firms are looking at expanding their operations, and I think the accelerated capital cost allowance will be a major factor in encouraging them to make that decision. That means more jobs for the people of my riding of Medicine Hat. That is a good thing.

Economic action plan 2013 continues to build on what we have already worked on for some time with continuing investments in world-class research and innovation.

One of the most important items contained in the plan is that we would extend the temporary hiring credit for small business for one year. That is encouraging, and I know it will be beneficial to small businesses in my riding.

The Medicine Hat District Chamber of Commerce's executive director, Lisa Kowalchuck, said our budget is a well-thought-out budget because we want to reduce the deficit and there are no tax increases, and from a business standpoint, that's positive. She went on to praise the extension of the temporary hiring credit. It has helped local small businesses and has contributed to their hiring of new workers.

I am proud of our government's continued support. After all, thanks to our economic action plan, we have seen the creation of over one million net new jobs in Canada since 2009. The majority of those, 90%, are full-time positions, and nearly 80% of those are in the private sector. If we want to talk about good news, that is one great piece of news.

We also have a record to brag about when it comes to supporting families. Our record of tax relief means savings of over $3,200 for a typical Canadian family of four in 2013. My colleague from Manitoba just expounded on that as a mother of four. Certainly she was pleased to have that $3,200 in her pocket to spend on her children.

Since 2006, we have cut the lowest personal income tax rate to 15%. We reduced the GST from 7% to 6% to 5%. We established the tax-free savings account. We introduced the children's fitness tax credit. We introduced the family caregiver tax credit. We introduced the universal child care benefit. We introduced the volunteer firefighter tax credit. I know some of my constituents are quite pleased with that one.

Continuing with our plan, I know that this year's phase includes many things that would assist farmers in growing their operations. I have a lot of farmers in my riding; those who grow wheat and barley are quite pleased with the fact that they can now sell their wheat to whomever they choose, including the Canadian Wheat Board. I think those farmers have seen record returns on their products since that change, but I digress.

Economic action plan 2013 contains many important points that will help farmers, and I would like to take a moment to enumerate a few of those things.

First, we are going to increase the restricted farm loss deduction limit. This measure in particular will help families that engage in part-time farming. We will raise the limit to $17,500, meaning that part-time farmers would be able to apply that much money against their income from other sources. This limit has not been raised in 20 years, so that is definitely due.

Another item in the budget that I think will be good for my farmers, and indeed farmers all across Canada, is the increase in lifetime capital gains exemption. Budget 2013 proposes an increase of $50,000 so that it would apply to capital gains up to $800,000. Also, the lifetime capital gains exemption would now be indexed to inflation for taxation years after 2014. That is another thing that will assist them. I am sure my farmers are tickled pink.

In terms of clean energy, our government remains committed to that industry. With that in mind, we will provide an accelerated capital cost allowance for those who have invested in specified clean energy generation and conservation equipment. In a time when we are looking for innovation in the energy sector, I believe that this will help spur it on.

Another measure in this budget that will be beneficial to my constituents is the section on tariff relief for Canadian consumers. This measure is extremely important for young families, especially in my riding. I know that it can be a hassle, so economic action plan 2013 would give tariff relief to Canadian consumers. Specifically, we are cutting tariffs on all baby clothing and on sports and athletic equipment. I believe that this is good news for young families who have active kids.

On a final note, I would like to enumerate some of the budgetary measures that will help us face our labour shortages, which are an issue for many Albertans and Canadians. I receive letters all the time from constituents concerned about finding skilled people to fill their job openings in their small businesses. It is an ongoing issue, and I am glad to see that with this budget our government has addressed some of the problems.

First, we are creating the Canada job grant, which should provide $15,000 or more per person, including the federal contribution and matching provincial-territorial portion and employers' portions, to ensure that Canadians are getting the skilled employees they are seeking. As a former employer, I know that employers know what skills their people need. I know a number of small business owners in my riding personally who will be investing that $5,000 to get more trained employees. They would get an employee who can get the training that they need, whether it is a community college certificate, an apprenticeship, or training by a trade union. They would have a job at the end of it, and it would be a win-win. Who could argue with that? This is a win-win situation for all involved, and what is not to like about that?

We are also creating opportunities for apprentices by making it more practical and easier to get the experience needed to make the leap to journeyman status.

We are also aiming at assisting persons with disabilities to have an easier time accessing the labour market. That is an ongoing task, and it is one that I am proud of. This budget would create the Canadian employers' disability forum. The forum would be led by a number of Canadian businesses, like Loblaws, and would be managed by employers. It would be a place where they could come together to share ideas about the hiring and retention of persons with disabilities.

Finally, we are bringing reform to the immigration system with programs such as the new expression of interest immigration management system. It would allow for Canadian employers, provinces, and territories to select skilled immigrants from a pool of applicants that best meet Canada's economic needs. This is crucial to my constituents. Many of them rely on hard-working new Canadians as the backbone of their workforce.

I know you have given me the signal, Mr. Speaker, but I encourage all of my colleagues to vote “yea” for Bill C-4 so that we can continue to implement our action plan 2013.

I look forward to any questions from my colleagues.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Mr. Speaker, I thank the hon. member for her questions, albeit misguided ones.

I am a mother of a 15-year-old and a 22-year-old. I have not seen many families who think they would rather take $3,200 and hand it to the government instead of spending it on their children, on their family, on their children's education, and on their children's future. I am a member of a government that has given $3,200 to every family, putting it in their pocket so that they can make decisions on how they choose to invest for their children.

I know we are very happy investing in the education of our children, and I know a lot of families feel the same way. Who better to be able to invest?

Furthermore, with Bill C-4 we are modernizing the Canada student loans program. We are very proud to be a part of such an essential part of enabling children to continue with their education as they become young adults. That is what we are about: making sure that we are giving the money to the people who can use it for their families.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Mr. Speaker, I am going to be splitting my time with the hon. member for Medicine Hat today.

I am so pleased to have the opportunity to rise on behalf of the citizens of Winnipeg South Centre and speak to my colleagues in the House of Commons about the economic action plan 2013.

As a chartered accountant, I am very proud to be part of a government that gives Canadians sound fiscal planning, job creation and economic growth.

As a mother, I am very grateful for the government's direction on long-term prosperity. We must always be mindful of how our spending affects future generations. We need to be responsible and ensure that our children start their lives without their futures mortgaged because of irresponsible tax and spend government. We have to ensure we do the best job possible for our children. It matters for their future.

Our government is acting to ensure that our children enjoy a prosperous future in Canada. On October 22, the hon. Minister of Finance tabled the economic action plan, part 2, Bill C-4. The bill provides support for job creators. It respects taxpayers' dollars and it closes tax loopholes to combat tax evasion and make it fair so when people are paying their fair share of taxes, they know someone else is also doing the same.

We made promises to Canadians to follow through and we are acting on those promises, the ability to ensure that we are delivering for Canadians, not dithering and talking about it.

Regarding the economic action plan of March 13, I would like to recap a few things regarding the economy, job creation and particularly tax cutting that we have already done for Canadians. Our budget laid the groundwork to reduce taxes for hard-working families, to reduce taxes for hard-working businesses that are creating jobs for hard-working families and to lay the groundwork for long-term prosperity.

We all know and have seen daily in the newspapers that by implementing Canada's economic action plan, Canada has experienced one of the best economic performances among the G7 countries, both during the global recession and throughout the recovery.

Canada has the lowest overall tax rate on new business investment in the G7 and our net debt to GDP ratio remains the lowest in the G7 by far, at 34.6%. I want to ensure that people realize what an accomplishment that debt to GDP ratio is, because our closest colleague is Germany at 57.2%. In fact, the average in the G7 is well over 90% net debt to GDP ratio, so Canadians can and should be extremely proud of the efforts that this government has made to put us on a firm fiscal framework.

At the same time, we do not presume that we are out of the woods yet. We know the economy remains fragile and we are taking actions to ensure we are well protected. That is why we have created jobs. We have created more than one million net new jobs since the depths of the global recession in July 2009 and the vast majority of those jobs are full-time and in the private sector.

The unemployment rate is at its lowest level since 2008 and it is significantly lower than the United States.

We have extended the enabling accessibility fund by providing $15 million a year in perpetuity. It is permanent funding to support community projects that improve accessibility, remove barriers and allow Canadians with disabilities to participate fully and contribute to their communities.

As well, economic action plan 2013 delivers a new building Canada plan that will provide over $53 billion in predictable infrastructure funding. That is the largest and longest federal investment in job creating infrastructure in all of Canadian history.

We have introduced the accelerated capital cost allowance for new manufacturing machinery and equipment by increasing support to manufacturers. Just the two years of extension puts $1.4 billion in the pockets of job creators, businesses that are making those important investments to get Canada working.

We have added $1 billion to the strategic aerospace and defence initiative. As a member of the aerospace caucus, I feel it is very important to underline that 40 businesses with over 5,500 employees working in Manitoba will benefit tremendously from those investments.

Cutting taxes is what we do. We have colleagues in the NDP and Liberal Party who want to increase taxes. Our Conservative government believes in low taxes and leaving more money where it belongs, in the pockets of hard-working Canadian families and job-creating businesses.

As a proud Manitoban, I have never encountered an individual who wanted to pay more taxes. Recently, we have seen the anger of people who would much rather have a dollar in their pocket to spend on their children than adding 1% to the PST in the province. We are not just talking about cutting taxes, we are actually doing it.

Since 2006, we have cut taxes 160 times, reducing the overall tax burden to its lowest in 50 years. That tax reduction work has put $3,200 on average more in the household account, in the personal income, of an average family of four. As a mother of an average family of four, I am very grateful. Parents know how to spend the money. Moms know how to spend the money.

We are a government that is reducing the tax cost to all families and ensuring that families have more money. We have done that by increasing the amount that Canadians can earn without paying any tax. We have reduced the lowest personal income tax rate to 15%. We have introduced pension income splitting for seniors. We have introduced tax-free savings accounts, which is the biggest tax free personal saving vehicle for Canadians since the introduction of the RRSP. We have cut the GST.

Just on that point, I saw an interesting quote that our colleague, the hon. member for Markham—Unionville, made on raising the GST. He said, “It's an option. All I can say is that it is consistent with our approach”. This is a tax option and an approach that is consistent with the Liberal approach. The Conservative government lowers taxes.

We are so proud that the Prime Minister signed the CETA agreement. That will make an enormous difference. It is another accomplishment that adds more than $1,000 on average to the average taxpayer's income.

Not only will the agreement contribute to our significant economic well-being, we are a government that is committed to ensuring we are focused on job creation, economic growth and long-term prosperity, long-term prosperity not just for our generation but for all the generations to come. Our government is absolutely focused on this expenditure. We are doing that with Bill C-4.

We are making the right choices. We are making the hard choices. However, we are being responsible and ensuring that we will have a firm framework for all Canadians in the future.