House of Commons Hansard #10 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was workers.

Topics

Economic Action Plan 2013 Act No. 2Government Orders

10:25 a.m.

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of National Revenue and for the Atlantic Canada Opportunities Agency

Mr. Speaker, I welcome the opportunity to add my support for the swift passage of this important and necessary legislation. We on this side of the House have been very clear. We are focused on jobs, growth and long-term prosperity and the legislation shows how committed we are to this focus.

As the Minister of Finance stated when he tabled Bill C-4, “In the face of continued global economic uncertainty, it is essential that we remain squarely focused on keeping Canada’s economy strong”.

Rest assured the Canada Revenue Agency, CRA, is actively advancing this agenda. As the Parliamentary Secretary to the Minister of National Revenue, I know the agency is playing a leading role in implementing important initiatives from economic action plan 2013. These initiatives are helping to create jobs and stimulate economic growth. We need look no further than our determination to fix an issue that matters to all Canadian taxpayers: ensuring that everyone pays their fair share of the taxes they owe. We are doing so by closing tax loopholes in order to keep taxes as low for individuals and families as possible.

Since 2006 our government has cut taxes 150 times. As a result, the average family of four now enjoys over $3,200 in extra tax savings. The federal tax burden for all Canadians is the lowest it has been in 50 years. I listened to the opposition criticism of the bill. Those members can say just about anything they want in the House because they are protected by parliamentary privilege, but they cannot say that we do not have the lowest taxes in the past 50 years. It is a fact and it is time that the opposition applaud that fact.

However, like any responsible government there is always room to do more. That is why economic action plan 2013 announced measures to close tax loopholes and improve the fairness and integrity of the tax system. We owe it to hard-working Canadians who fulfill their tax commitments and understand that their contributions help to fund important government programs and services for their families. It is also critical to honest businesses that find it hard to compete with businesses that cheat on their taxes. When people cheat on their taxes, everyone loses.

Among the important changes we intend to address aggressive tax planning, clarify tax rules and fight international tax evasion and aggressive tax avoidance. These efforts will close tax loopholes that were used by a few businesses and individuals to avoid paying their fair share of taxes.

Broadening and protecting the tax base supports our government's effort to return to balanced budgets and responds to provincial governments' concerns about protecting provincial revenues on our shared tax base. Equally important is the fact that our budget would give Canadians confidence that the tax system is fair, providing incentives to work, save and invest in Canada.

Another area with a direct impact on Canadian taxpayers is our work to root out electronic suppression of sales software. In plain language it is often referred to as zapper software. What it boils down to is making it more and more difficult for people to cheat on their taxes and operate in the underground economy. While they, the tax cheats, pocket the money, honest taxpayers end up having to shoulder a greater tax burden because of this illegal activity.

All taxpayers, particularly businesses, are required to maintain adequate books and records for tax purposes. This includes maintaining accurate electronic data files. Unfortunately, some businesses use this zapper software to hide their sales figures so they can avoid paying the GST/HST and income taxes they owe on this revenue. This software selectively deletes or modifies sales from electronic cash registers and other point-of-sale and accounting systems. This undermines the competitiveness of businesses and offers an unfair advantage to those who fail to comply with Canada's tax laws.

Economic action plan 2013 sent a strong signal that we will no longer tolerate such activity. Bill C-4 includes new monetary penalties and criminal offences to discourage the possession, use or development of electronic suppression of sales software.

Anyone who attempts to avoid paying taxes by using electronic suppression of sales tax avoidance, which leaves an unfair burden on Canadian consumers and businesses that contribute their fair share, will now pay a steep price. Businesses caught using, owning, or buying electronic suppression of sales software will face a $5,000 penalty on their first infraction. This penalty rises to $50,000 for any subsequent infraction.

Anyone who develops, manufactures, offers for sale, or sells such software will face a $10,000 penalty on the first infraction and $100,000 for any subsequent infraction.

There is no question that our overarching goal is to put more money back in the hands of Canadians through reduced taxes. Our country's tax base is essential for providing necessary benefits, programs, and services that all Canadians depend on.

When everyone pays the taxes they owe, we can invest those tax dollars to help Canadian families and communities and our country's economy. For instance, economic action plan 2013 includes tax credits for small businesses that would enable them to create jobs for unemployed Canadians. This would generate increased wealth in their communities.

Bill C-4 introduces measures that would support Canada's job creators. It would extend and expand the hiring credit for small business for an additional year. More businesses than ever would be able to take advantage of this job creation tool.

It is especially noteworthy that the hiring credit would leave eligible business owners with up to $1,000 they could put back into their businesses. Eligible employers would receive the credit when they hired new employees or increased wages. New businesses created in 2012 might also be eligible. If business owners were eligible, they could get the credit automatically when they filed their T4 information returns.

This investment yields huge dividends. Based on the success of the existing initiative, we anticipate that 560,000 small businesses would benefit from this measure. If even 50% of those businesses used the hiring credit, this would allow them to reinvest $225 million back into the Canadian economy. Especially good news for businesses is that there would be no extra paperwork to fill out. That is because of another one of our priorities reflected in Bill C-4, our commitment to reduce red tape at every opportunity.

Business owners and their associations have told us loud and clear that they are frustrated by the amount of paperwork they have to deal with from all levels of government. We have been listening to them.

Our government recognizes that too much red tape restricts innovation, productivity, and competitiveness. We understand that when Canadian businesses succeed, all Canadians benefit. That is why we have taken repeated steps to free up Canadian business owners from paperwork so that they can focus on growing their businesses and creating jobs. I am proud to say that there are now fewer regulations, and the cost of red tape has been reduced by $20 million annually.

We continue to make progress. Now certain essential forms that simply cannot be avoided are easier to process. For instance, the CRA recently launched its new online mail service for Canadian businesses, available through My Business Account, which streamlines their interactions with the agency. Canadian small businesses can now choose to receive notices of assessment and reassessment, as well as some letters for their corporate and GST/HST accounts, electronically.

CRA uses the same high level of security that financial institutions use to protect banking information, so businesses can use the new online service with peace of mind.

Our government's record speaks for itself. We are keeping taxes low, cutting red tape, and going after tax cheats like never before. No wonder Canada leads the G7 with more than one million net new jobs created since the depth of the global recession. With the adoption of Bill C-4, we will be able to carry on this proud tradition of progress.

Economic Action Plan 2013 Act No. 2Government Orders

10:35 a.m.

NDP

Alain Giguère NDP Marc-Aurèle-Fortin, QC

Mr. Speaker, there is clearly a serious problem here. They think they have tabled a budget, but all we see is proof that they have an aptitude—I would even call it a talent—for transforming gold into lead.

You were supposed to create jobs, you were supposed to give us something to make our lives easier, and all we see is a budget that does not even aim to lower the number of unemployed workers, that does not even aim to build affordable housing and that does not even aim to reduce household debt. There is nothing.

I have a simple question about taxes. You talk about taxes—

Economic Action Plan 2013 Act No. 2Government Orders

10:35 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

Order. I remind the member that he must always direct his questions to the Chair.

Economic Action Plan 2013 Act No. 2Government Orders

10:35 a.m.

NDP

Alain Giguère NDP Marc-Aurèle-Fortin, QC

I apologize, Mr. Speaker.

Economic Action Plan 2013 Act No. 2Government Orders

10:35 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

The hon. parliamentary secretary.

Economic Action Plan 2013 Act No. 2Government Orders

10:35 a.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Mr. Speaker, that was a wide-ranging question on a number of issues.

It is fairly obvious that the hon. member was not listening intently to my speech. I talked very openly about reducing red tape, reducing the cost for small business, and getting more people hired in the Canadian economy, never mind the one million net new jobs we have created since the great depression.

Certainly people would be hired through the Canadian tax credit. That tax credit would benefit 560,000 businesses. If only 50% of those businesses took advantage of the tax credit, that would put $225 million into the Canadian economy. Putting $225 million into the Canadian economy is a lot of money that would stimulate a lot of jobs. That shows that the government is paying attention to what small business is saying. It shows that we are creating jobs that benefit ordinary Canadians.

The hon. member went on to talk about affordable housing. Maybe he needs to take a look at the record of this government in assisting with affordable housing across this nation.

Economic Action Plan 2013 Act No. 2Government Orders

10:40 a.m.

Liberal

Ted Hsu Liberal Kingston and the Islands, ON

Mr. Speaker, I will quickly say that the municipal budget for the City of Kingston is going to be decreasing because of the expiry of mortgage support from the federal government for affordable housing.

My question is about a particular point my hon. colleague made, which is about penalties for software companies that write software to help people avoid paying taxes. It is very hard to enforce penalties when it is so easy for these companies to be offshore. An analogy is legislation to combat spam, which was, in fact, passed before I was elected. Not very much has come of it.

Can we really accomplish something by passing a law that punishes software companies for helping people evade taxes, when the companies are offshore, or is this just feel-good legislation?

Economic Action Plan 2013 Act No. 2Government Orders

10:40 a.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Mr. Speaker, the hon. member makes a fair, if incorrect, point.

The reality is that we have to cut down on the software suppression material that many businesses are using to avoid paying their fair share of tax. Obviously, if we are going to penalize businesses, that is one part of the equation. We set that up because some businesses, quite frankly, have this software in place and are not even aware of it. It really would be improper to punish people for using something they are not aware they are using.

However, we are serving notice. We are saying that they should recognize that this software is out there and that they should make sure that they are not culpable for using this software. The first fine is $1,000, and the second fine is $50,000.

Furthermore, it is difficult, I agree, to go after these companies if they are offshore. However, there must be a penalty for companies that create and promote this software, because ultimately, they are the problem. Yes, I recognize the difficulty of targeting offshore companies, but at the same time, there has to be a control put in place that at least allows us to go after them.

Economic Action Plan 2013 Act No. 2Government Orders

10:40 a.m.

NDP

Isabelle Morin NDP Notre-Dame-de-Grâce—Lachine, QC

Mr. Speaker, Bill C-4 is a sad new piece of legislative art from the Conservatives. What a masterpiece.

Much like the three omnibus bills before it—Bill C-38, Bill C-45 and Bill C-60—this fourth bill includes some 70 legislative measures—why not—most of which have very little to do with the budget. The bill even creates two brand-new laws: the Mackenzie Gas Project Impacts Act and the Public Service Labour Relations and Employment Board Act.

With this bill, the Conservatives are trying once again to force major changes through Parliament, without letting us do our job.

The Parliamentary Budget Officer has already pointed out numerous times that members of Parliament do not have access to the information they need to fulfill their critical role and improve our laws. He had to threaten to take the government to court for the Conservatives to finally bother to reveal their budget cut plan. However, here we are again with another omnibus bill.

The Minister of Finance tabled budget 2013 in Parliament on March 21. The budget cuts thousands of public service jobs and makes cuts to program spending. The budget proposes a host of unwarranted economic austerity measures that do not help Canadians.

Bill C-4 to implement certain provisions of the budget undermines the health and safety protections in place for workers. It is a direct attack on public servants and labour unions. It causes irreparable damage to our research system and puts employment insurance firmly under the minister's control.

I am particularly concerned for the Canadian public and especially for the constituents in my riding of Notre-Dame-de-Grâce—Lachine and Dorval.

This bill removes from our health and safety officers the authority granted to them under the Canada Labour Code. It significantly weakens the ability of employees to refuse to work in dangerous conditions. It grants virtually all health and safety powers to the minister. This concentration of power in the hands of a minister is very dangerous, especially when we are dealing with a Conservative minister.

When the Conservatives attack the Canada Labour Code, they are attacking something that Canadians worked hard to build over the years to make their working conditions healthier and safer. This is the opposite of progress. This is a step backwards, just like everything else the Conservatives do. They should instead be seeking ways to protect Canadians from having to work in situations that expose them to unacceptable risks. They should protect workers.

I had the opportunity to study occupational health and safety in my university program. I took a course that required students to conduct workplace risk assessments. Therefore, I can say that centralizing everything is exactly the opposite of what companies do to identify risks in order to provide appropriate solutions concerning occupational health and safety.

For all these reasons, the NDP will certainly oppose this proposal, which affects the fundamental rights of workers in terms of occupational health and safety.

Bill C-4 would also make changes that would allow the minister to determine which services are essential in the public service, in such a way that he could well undermine collective bargaining rights.

We know that the Conservatives do not like unions. This is another attack. This is a direct violation of the social dialogue in the public service. By destabilizing the relationship between the negotiating parties, the government is giving itself the means to gag workers in the public service. It is restricting their right to challenge the deterioration of working conditions due to the unjustified cuts imposed by the Conservatives themselves. By slashing jobs, they are creating the conditions for conflict. They now want to ignore the consequences by preventing workers from expressing their frustration and their complaints.

However, some services seem to be less essential than others, particularly when objective scientific results contradict the Conservatives' vision and plans. They fired hundreds of scientists without considering the medium- or long-term consequences of their decision.

Now, Bill C-4 is taking aim at National Research Council Canada and dealing a final blow to our public research system. Well done.

As a final step in their attempt to systematically bleed the labour market dry on the pretense of flexibility, the Conservatives are using Bill C-4 to eliminate the Canada Employment Insurance Financing Board and give the Minister of Finance the power to manipulate rates.

Do the Conservatives want to turn their backs on federal responsibility in this area by dumping it onto the provinces or directly onto the public?

Bill C-4 also extends the $1,000 hiring tax credit for small business. I acknowledge that that is a step in the right direction, but it is nowhere near enough. The NDP is looking further ahead and proposing a $2,000 hiring tax credit that would not come out of the employment insurance fund and would help businesses hire and train young workers.

I want to keep talking about small businesses. The Conservatives are going ahead with their $350 million tax hike on labour-sponsored venture capital funds. However, it is well known that venture capital is essential for creating and developing businesses. Just listen to our entrepreneurs. Alain-Jacques Simard, CEO of TeraXion, a Quebec company that specializes in fibre optics, said that the Fonds de solidarité FTQ acted as a catalyst and that since its January 2010 investment, his company's sales have doubled. That is important to remember.

The Conservatives like to remind everybody that they were elected to lower taxes, but not for unions, apparently. That is very strange. Attacking a financing system does not make sense unless it is part of an agenda to do whatever it takes to undermine the economic influence of Canadian workers and unions.

Still on the subject of small businesses, Bill C-4 increases the lifetime capital gains exemption and indexes it. The NDP supports increasing the lifetime capital gains exemption because that will help small business owners. The NDP knows that small businesses create a lot of jobs. However, they create those jobs only in a climate of better economic and regulatory conditions. That is why the NDP would like to see tax incentives to help these businesses hire Canadians.

We can only have a productive debate on these proposals if the Conservatives allow it. The omnibus bill will not make that possible and suggests that the Conservatives are, sadly, not willing to debate. The Conservatives are showing their true colours by attacking workers, public servants, employment insurance and unions. They are not working for Canadian families.

Household debt has reached record levels and is now at 166% of household income. This means that people are spending five months' income every three months, putting them two more months in the hole every five months. The Conservatives have no plan to address the alarming youth unemployment rate.

Bill C-4 is out of touch with what is important to Canadian families. It is a dangerous step backward. This policy is designed to destroy gains made by the middle class. It will force workers and families to pay for services that they have already paid for through their taxes.

This bill, like all of its omnibus predecessors, is a policy instrument designed to systematically destroy the social relationships that Canadians have worked hard to build over the past few decades. It is an intolerable attack on the rights of Canadian workers and Canadian families. The NDP will not stand for it.

The NDP will not support the Conservatives' latest attempt to circumvent parliamentary democracy. We should have the opportunity to debate the many subjects covered in Bill C-4 separately and refer them for study by the relevant committee. The NDP is also opposed to budget 2013 and its implementation bills, including Bill C-4, because they disregard the true priorities of Canadian families: creating good, well-paid jobs, ensuring retirement security, creating job opportunities for youth and creating more affordable living conditions for families.

Economic Action Plan 2013 Act No. 2Government Orders

10:50 a.m.

Kamloops—Thompson—Cariboo B.C.

Conservative

Cathy McLeod ConservativeParliamentary Secretary to the Minister of Labour and for Western Economic Diversification

Mr. Speaker, I listened to my colleague's speech with great interest and noted that she said she studied occupational health and safety in school.

In looking at the changes to the Canada Labour Code, it is important to note that in 80% of the appeals in the last 10 years, it has been found that there was no danger. Therefore, if we are looking at changes to the Canadian Labour Code and we note that in 80% of the cases that have been brought forward there was no danger, would she not agree that we need to have a system that would allow our health and safety officers to focus on that 20% where there is true danger?

I think it is an absolutely phenomenal number and it speaks to the fact that the system, as it currently exists, is not working, so I would like to ask the member why she would not look positively at a change that would focus on the true and imminent dangers to workers' health.

Economic Action Plan 2013 Act No. 2Government Orders

10:50 a.m.

NDP

Isabelle Morin NDP Notre-Dame-de-Grâce—Lachine, QC

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

As I was explaining, since the government wants to centralize everything, there will be fewer people on the ground to assess all the risks. Furthermore, the bill significantly weakens employees' ability to refuse to work in dangerous conditions. This means that people working in dangerous conditions cannot refuse to work. That is the problem I have with this bill.

I would like to say this to my hon. colleague: when an omnibus bill containing hundreds of pages is introduced—one that we are forced to debate under a time allocation motion and one that will not even be examined by the appropriate committees—this definitely does not encourage any dialogue.

This bill may have some good things in it, and I mentioned some of them in my speech. I recognize that. I would like to vote in favour of some of the measure in the budget. However, when they are all lumped together in an omnibus bill so that we cannot examine them at the appropriate committee, I am sorry, but I cannot accept that and I cannot vote in favour of such a bill.

Economic Action Plan 2013 Act No. 2Government Orders

10:55 a.m.

NDP

Christine Moore NDP Abitibi—Témiscamingue, QC

Mr. Speaker, I would like to continue on the theme discussed by the Parliamentary Secretary and by my colleague.

Quebec has the CSST, and matters of occupational health and safety and the right to opt out are legislated. Employees of companies under provincial jurisdiction come under the CSST in Quebec.

I would like to know if, in Quebec, everything had to be centralized in the hands of the minister in order to create a system that works. Can we have a good system that works without putting everything in the hands of the minister?

Economic Action Plan 2013 Act No. 2Government Orders

10:55 a.m.

NDP

Isabelle Morin NDP Notre-Dame-de-Grâce—Lachine, QC

Mr. Speaker, I thank my colleague, the member for Abitibi—Témiscamingue, for her question and the good work she does in her riding.

She asked me whether we had to leave everything in the hands of the minister. That is what I have seen the Conservatives do since I arrived in Parliament: they have tried to grab more and more power. That was the case for the Minister of Citizenship and Immigration and the Minister of Human Resources and Skills Development.

The Conservatives want to have all the power and control what is happening on the ground. That is not what the government should be doing. Instead, it should be creating laws and letting people apply them. I find this to be very dangerous.

As my colleague mentioned, Quebec has a system that works quite well. It is not the minister who decides how to manage everything and I believe that things should stay that way. We have a good system that is working, and I think it is deplorable for the Conservatives to once again try to grab more power.

Economic Action Plan 2013 Act No. 2Government Orders

10:55 a.m.

Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, it is my pleasure this morning to speak to the budget implementation issue.

I would like to highlight some items that are extremely important to all Canadians. Sometimes when we look at all the issues we forget the umbrella over which the budget was built.

Two and a half years ago, Canadians gave our government a mandate to create jobs, keep taxes low, and help make our streets and communities safer. In an uncertain and unstable world, our Conservative government has led us through tough economic times.

The results are clear. With one million net new jobs added since the recession, we lead the G7 on job creation and on the strength of our balance sheet. Canada now leads the G7 in job creation, in income growth, and in keeping debt levels low. We are the leader.

Canada is now among only a few countries in the world with an AAA credit rating. However, we know we need to do more. Canadians have a rare opportunity to build on our stable democracy, our sound finances, our expanding trade relationships, our strong communities, and our skilled workforce. This is Canada's moment, and it is our government's job to seize the moment for the benefit of all Canadians.

That is why the recent throne speech laid out three priorities for our government moving forward. Number one is to create jobs and opportunities for Canadians; number two is to support and protect Canadian families; number three is to put Canada first.

Our priorities are about making sure that Canada is leading the world so that Canadians who work hard, pay their taxes, and play by the rules can get ahead. Our work will be guided by our values: the belief in low taxes, small government, a thriving private sector that creates jobs for Canadians, protecting our communities from criminals and drug pushers, and believing that Canada is the best country on earth to live in.

In our throne speech, our government committed to pursuing free trade agreements, such as the Canada-EU free trade agreement. I am proud that our government has already delivered on this promise. One in five Canadian jobs depends on exports. Our prosperity hinges on opening new markets for Canadian goods, services, and investments. I congratulate our government for signing an agreement in principle of a comprehensive economic and trade agreement with the European Union, an agreement that has the potential to create 80,000 new Canadian jobs. This is an historic win for Canada and means thousands of new jobs for Canadians and half a billion new customers for Canadian businesses.

Manitoba has much to gain from this 21st century. I am from Manitoba, and I am very proud because I know 40¢ on the dollar has been put forward from the federal government to keep Manitoba going. Now Manitoba, my province, has much to gain from this 21st century, gold-standard trade agreement. The elimination of 98% of all EU tariffs on the first day that the agreement comes into force will translate into increased profits and opportunities for Canadian businesses of all sizes in every part of the country. This historic agreement with the EU is a big win for workers, businesses, and families in Kildonan—St. Paul, Manitoba, and all through Canada. Throughout the province, hard-working people of Manitoba will benefit, especially in key sectors of the local economy, such as advanced manufacturing, construction services, and agriculture.

In addition to tariff elimination, CETA provides improved access to EU markets for Canadian goods and services; greater certainty, transparency, and protection for investments; and new opportunities in EU procurement markets.

An earlier joint study concluded that CETA could bring a 20% boost in bilateral trade and a $12 billion annual increase to Canada's economy. That is the equivalent of adding $1,000 to the average Canadian household income or 80,000 new jobs to the Canadian economy. That is amazing.

CETA is by far Canada's most ambitious trade initiative, broader and deeper in scope than the historic North American Free Trade Agreement known as NAFTA.

Economic action plan 2013 is something else that would strengthen this record with action in all areas that drive economic prosperity.

Today I would like to highlight some of the excellent measures that would benefit the hardworking families and individuals in Kildonan—St. Paul and in the province of Manitoba.

The act would implement key measures from economic action plan 2013 as well as certain previously announced tax measures to help create jobs, stimulate growth, and secure Canada's long-term prosperity.

Measures in economic action plan 2013 act no. 2 are aimed at spurring job creation and economic growth. These kinds of things include providing record transfer support for social and health services in Manitoba and a significant number of dollars to ensure that necessary programs are well funded, such as in schools and hospitals. In fact, in 2013-2014, the federal transfer support to Manitoba would be $643 million higher than it was under the former Liberal government.

We all remember that the former Liberal government slashed transfers for health care and education. I remember it well. Our Conservative government rejects that shameful practice and is protecting and growing transfers to help support the services Manitoba families depend on.

For Manitoba, total major transfers would total $3.4 billion in 2013. These would include almost $1.8 billion through equalization, an increase of $191 million, or almost 12%, since 2005-2006 under the former Liberal government; $1.1 billion through the Canada health transfer, an increase of $336 million, or almost 43%, since 2005-2006 under the former Liberal government; $443 million through the Canada social transfer, an increase of $109 million, or almost 33%, since 2005-2006 under the former Liberal government; and almost $7 million in total transfer protection. I remember this well, because I was an MLA at the time.

This is good news for Manitoba and a key assurance that our government is committed to the long-term prosperity of our province of Manitoba.

One area of the budget I would like to highlight is programs designed to help create jobs. These are very important programs. Our Conservative government would extend and expand the hiring credit for small business, which would benefit an estimated 560,000 employers.

Canada's small businesses are engines for job creation that boost economic growth. They represent 48% of the total labour force in the private sector and contribute approximately 30% to Canada's GDP. The federal government recognizes the important contribution made by small businesses all across the country and the challenges they face. This temporary credit would provide up to $1,000 against a small firm's increase in its 2013 employment insurance premiums over those paid in 2012 to employers with total EI premiums of $15,000 or less in 2012. This is very good news for Canadian businesses.

Other job creator initiatives would include increasing and indexing the lifetime capital gains exemption to make investing in small business more rewarding; expanding the accelerated capital cost allowance to further encourage investments in clean energy generation; and freezing employment insurance premium rates for three years, leaving $660 million in the pockets of job creators and workers in 2014 alone.

Another area of the budget implementation act I would like to highlight today is our Conservative government's efforts to control direct program spending with common sense proposals for making government more efficient and productive. This would include setting public service pay and benefits levels that are reasonable, responsible, and in the public interest.

There are so many other things, such as closing tax loopholes and the building Canada fund. The building Canada fund would provide $14 billion over ten years to support major economic infrastructure projects in Manitoba and all across Canada.

In this time of economic constraint, it is very important that people are working and that Canadians are able to live well and grow their families in prosperity, happiness, and safety. This is why Canada is a remarkable country under the leadership of our Prime Minister, Stephen Harper, and our government.

Economic Action Plan 2013 Act No. 2Government Orders

11:05 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

I would draw to the attention of the member that it is not permitted to use the name of a sitting member of the House.

The hon. member for Chicoutimi—Le Fjord.

Economic Action Plan 2013 Act No. 2Government Orders

11:05 a.m.

NDP

Dany Morin NDP Chicoutimi—Le Fjord, QC

Mr. Speaker, I would like to talk about an aspect of Bill C-4 that bothers me.

Earlier, during the debate on Bill C-4, a number of Conservatives boasted that their government has cut taxes, which benefits Canadians. However, they forgot to mention that the Conservative government sometimes increases taxes. This bill contains a tax increase of $350 million. Who will pay the price? Labour-sponsored venture capital funds, also known as workers' funds.

Quebec is known for its good labour-sponsored funds. For some years, these venture capital funds have been invested in communities. These funds are used to help start up and grow businesses.

The Conservative government is appalling. I also want to talk about this government's hypocrisy, because it boasts about lowering taxes when it is to their benefit, but increases them in other sectors.

Could my Conservative colleague, whom I respect very much, tell us if the Conservatives will reverse its decision and remove this harmful $350 million tax that will kill jobs.

Economic Action Plan 2013 Act No. 2Government Orders

11:05 a.m.

Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, I want to thank my colleague, who does such an excellent job on the health committee. I very much respect his question. However, I want to put the focus on the umbrella part I talked about at the beginning.

In terms of helping businesses succeed and relieving tax breaks, our government has put forward a myriad of tax breaks to grow business and prosperity. There is the new manufacturing machinery and equipment tax break for businesses. There is the expansion of the hiring credit for small business, which I talked about in my speech a little earlier. As we know, small business in Quebec, or anyplace else, is the engine of the economy in any province.

There is the increasing and indexing of the lifetime capital gains exemption, which is extremely important. This is very positive for business, because it increases the rewards for investing in small business by making it easier for the owners to transfer their family businesses. As we know, in Quebec, an awful lot of family businesses have grown, prospered, and become very famous for their goods.

There is also support for farmers. This is the bread basket of the world, and Quebec is the same. The current deduction limit for the restricted farm loss income tax would go from $8,750 to $17,500. That would help farmers right on the ground.

There are so many tax relief measures our government has given that far offset anything else that might have to be put in place to keep our economy balanced.

Economic Action Plan 2013 Act No. 2Government Orders

11:10 a.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, my hon. colleague talked about the umbrella when she talked about the things the government has been doing. I wonder if she could explain to us whether this umbrella includes the amendments to or repeals of 70 pieces of legislation in over 300 pages in this omnibus budget bill.

The bill would strip health and safety officers of their powers and put nearly all of these powers in the hands of the minister, significantly weakening the ability of employees to refuse work in unsafe conditions. It would move to eliminate binding arbitration as a method to resolve disputes in the public service. It would gut Canada's most scientific research institute, the NRC. It would reduce the number of members on the veterans review board. It would makes changes to the Supreme Court of Canada.

Are these the things the umbrella is including? They are right now in this budget bill. We on this side of the House cannot figure out why they would be in a budget bill. Maybe she could explain that. Are they under the umbrella?

Economic Action Plan 2013 Act No. 2Government Orders

11:10 a.m.

Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, Parliament is always interesting, because the job of the opposition is to be in opposition. However, I have to say that in research and innovation, our government has done so much. We have invested $20 million to help small and medium-size enterprises in my province, Manitoba, and all across the country. We have strengthened research partnerships, investing $37 million in Manitoba and across Canada, and have promoted clean projects.

There is so much that has been done to help business. Yes, it is the umbrella. That is why today our country has a sound, stable economic standing, and we have an AAA credit rating. I think the management of the finances of our country has been exemplary.

Economic Action Plan 2013 Act No. 2Government Orders

11:10 a.m.

Conservative

Jay Aspin Conservative Nipissing—Timiskaming, ON

Mr. Speaker, I rise today to speak to Bill C-4, introduced by Minister Flaherty on October 22, 2013.

Economic Action Plan 2013 Act No. 2Government Orders

11:10 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

I do not know what it is about this morning. The use of a sitting member's name is not permitted in the House. Refer to the minister as the Minister of Finance.

Economic Action Plan 2013 Act No. 2Government Orders

October 29th, 2013 / 11:10 a.m.

Conservative

Jay Aspin Conservative Nipissing—Timiskaming, ON

Mr. Speaker, before I get into the details of the bill and how it will benefit Canada, and specifically my riding of Nipissing—Timiskaming, I would like to take a moment to give this House the context in which we consider this bill.

In early 2008, Canada was faced with the worst global economic downturn since the 1930s. However, thanks to the firm and responsible regulations that were put in place, Canada did not sink as low. This alone was not enough to keep Canada from following our neighbours. Our government saw investments dwindling, an unstable, unconfident marketplace, and millions of Canadians with their jobs at risk. Our government acted with resolve and initiative to introduce the economic action plan, which provided our economy with a $60-billion stimulus, including $12 billion in stimulus and $20 billion in tax relief.

Action plan after action plan, the government has continued to responsibly steer Canada through the global recession while simultaneously pushing taxes lower and removing barriers to trade and investment in Canada.

The ultimate result is that all Canadians can take pride that through our government's responsible and disciplined leadership, Canada has the best fiscal record in the G8. Our debt-to-GDP ratio is the absolute lowest. We are on the path to surplus. We hold a AAA credit rating. We have added over a million net new jobs to the economy, which has reduced unemployment lower than before the recession. Our markets remain responsibly regulated, stable, and dynamic.

However, our recovery is fragile and vulnerable to the actions of others. That is why Bill C-4 would have impact. Bill C-4 would project the government's low-tax, consumer, family-focused agenda into the future to ensure continued growth and long-term prosperity.

While Bill C-4 touches on all aspects of Canada's economy, I would like to highlight three areas of importance to my region and how Bill C-4 would help Nipissing—Timiskaming grow.

First, as we know, businesses are absolutely key to healthy communities. If the cost of business is too high, jobs will disappear. This is the plain truth, and it baffles me that the NDP and Liberals cannot comprehend it. Fundamentally, they believe that we can tax and spend ourselves out of every problem.

Nipissing—Timiskaming is home to many manufacturing companies. Aerospace and mining are major sectors for us. The accelerated capital cost allowance program introduced in Bill C-4, which would be extended for two years, would allow companies in my region to invest in new machinery and equipment, expand their operations, and stimulate growth and job creation.

Economic action plan 2013 would proactively address continued job growth and skills shortages through the Canada job grant. It is an initiative that would help workers get $15,000 toward valuable skills training. Our government understands that it is not enough to create new jobs; we have to make sure that there are skilled Canadians to fill them.

This kind of long-term, experienced thinking is exactly why, under this government, Canada has prospered while other countries continue to flounder.

I know that in my region, students and graduates of Canadore College would particularly benefit from the Canada job grant. These very same students, many of whom go into the skilled trades, would also benefit from the changes we are making to how apprenticeship accreditation works. Four million dollars over three years would be allocated to harmonize requirements among the provinces and to examine assessments.

Aerospace, in particular, would benefit. Over $1 billion would be invested in the aerospace and space sectors. Nipissing—Timiskaming has a long and proud history in airways, and I am confident that it will play a key role in our government's plan to consolidate and improve our fifth-place standing in the world. Aerospace companies and services in my community employ hundreds of people and provide them with secure, good-paying jobs. This will only grow under our government.

Second, I would like to specifically talk about small businesses. Small businesses are the lifeblood of the towns and communities in Nipissing—Timiskaming. They, in particular, would benefit from Bill C-4. Besides being able to take advantage of the Canada job grant, they would benefit from the hiring credit, which would freeze EI premiums, saving small businesses $1,000.

Small businesses, and in particular part-time farmers, would benefit from the increase to the lifetime capital gains exemption, which would increase by $50,000 to $800,000. Farmers would also benefit from the doubling of the restricted farm loss deduction, from $8,750 to $17,500.

Overall, thanks to the low-tax plan of our government, Bill C-4 and previous Conservative budgets, small businesses are paying $28,600 less in taxes. Canadians get it and Canadians got it in May 2011 when they sent the Conservative government to Ottawa with a majority. However, I will make it clear for my colleagues who remain a little confused that we have been cutting taxes and jobs have been created, one million net new jobs. Bills like Bill C-4 have cut taxes. Unemployment now is lower than before the recession. Our responsible long-term plan is working for Canada and Canadian families. I hope, after seven years, my colleagues will begin to understand that.

I want to touch on infrastructure. A major part of the original economic action plan, investment in infrastructure, underpins this budget and Canada's success. How would this be any different given our national history? In the infant stage of nationhood, it was the building of the transcontinental railroad that united Canada and set it on the path toward economic prosperity. The building Canada plan, the single largest infrastructure investment in our nation's history, will provide an additional $53 billion over several years to make sure our infrastructure is modern, safe and capable of helping us unlock more economic potential in our communities and from our resources. We cannot expect to grow without a firm base on which to stand. Infrastructure is that base.

Nipissing—Timiskaming has greatly benefited from infrastructure projects, particularly through FedNor. In particular, the airport, roads and community assets have been invested in. The expansion of the airport and upgrading of its services continue to make our region a more attractive place for continued investment in aerospace. Coupled with our government's aerospace prerogative, there is potential for real synergy. Investment in our roads and community infrastructure continues to open up the north and adds to our quality of life.

It is unfortunate that many of our neighbours suffered greatly, and continue to suffer, because of the global economic downturn. I as a Canadian am very grateful that our recession was not as impactful. Canadians recognize that our success is no accident. Canadians recognize that our continued economic leadership of the G8 is no accident. Canadians recognize that the government is not the answer, only a part of the solution. Our country has grown weary of the tax and spend promises of the Liberals and NDP, mostly because the money is never spent on the people, although it is they who are taxed.

Last, I want to draw to the attention of the House the fact that this government does not draft policy or budgets in a vacuum, but in a long-term, responsible and critical fashion. The effects of economic action plan 2013, Bill C-4 and future budgets, will greatly benefit from the recently announced Canada-European Union free trade agreement. The synergy is perfect. Bills like Bill C-4 help create a low-tax, investor-friendly market, while CETA removes barriers to trade and investment.

In conclusion, thanks to Bill C-4 and parallel government efforts, Canadians can continue to expect net job growth, world leadership in fiscal accountability and political stability, with an explicit focus on Canadian jobs, families and their pocketbooks. The government fully intends to seize Canada's moment for the benefit of all Canadians and I would urge my colleagues on the opposite side to support it. I look forward to questions from my colleagues.

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11:20 a.m.

NDP

Christine Moore NDP Abitibi—Témiscamingue, QC

Mr. Speaker, I want to mention that my riding shares a common border with that of my colleague from Nipissing—Timiskaming. When I travel by car to my riding, I regularly pass through his riding. It appears that we disagree on the Conservative budget.

When I talk to young people in his riding, they tell me that they are worried. More and more young people are unemployed. Salaries are not going up. Increasingly, they are holding down part-time jobs and the price of houses is very high. It is very hard for them to start a family. There is nothing in this budget for young people.

I would like to know if the hon. member has taken the time as well to talk to the young people in his riding and to listen closely to their concerns, or if he is only talking to the members of the business community.

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11:20 a.m.

Conservative

Jay Aspin Conservative Nipissing—Timiskaming, ON

Mr. Speaker, my hon. colleague indeed frequents our riding and is always welcome there.

Yes, I talk to young people a number of times throughout the week and throughout the month. Basically, they are telling me that they want opportunities for training, and there are plenty in this budget as I mentioned.

One in particular is the Canada jobs grant. When the Canada jobs grant is fully formulated, it will provide $15,000 for young Canadians in my riding to get fully trained and obtain the skills they need to obtain and carry jobs in the future.

Another opportunity is the tremendous amount of money that the government has afforded for aerospace. We have an aerospace forum coming to the riding on November 8 and we hope to grow aerospace in our region as it is growing in Canada. We want to maintain our fifth-place standing and, in fact, want to enhance our standing.

It is my hope that we can attract investment to the North Bay region and help grow jobs in the economy, jobs for our younger people.

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11:20 a.m.

Liberal

Sean Casey Liberal Charlottetown, PE

Mr. Speaker, at one point in an earlier debate, the Minister of Finance very eloquently said that the purpose of the budget implementation act was to implement the budget. When the budget speech was given last spring, there was a lengthy speech and there was a thick, glossy volume of some hundreds of pages, with a blue and white cover and an economic action plan title.

I wonder if the hon. member might be able to point us to the reference in the budget speech or documents to the proposed changes to the Supreme Court Act.