Budget Implementation Act, 2005

An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005

This bill was last introduced in the 38th Parliament, 1st Session, which ended in November 2005.

Sponsor

Ralph Goodale  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 amends the Income Tax Act and the Income Tax Application Rules to
(a) increase the amount that Canadians can earn tax free;
(b) increase the annual limits on contributions to tax-deferred retirement savings plans;
(c) eliminate the foreign property limitations on tax-deferred retirement savings plans;
(d) increase the Child Disability Benefit supplement to the Canada Child Tax Benefit;
(e) allow for a longer period for the existence of and contributions to a Registered Education Savings Plan in certain circumstances where the plan beneficiary is eligible for the disability tax credit;
(f) increase the maximum refundable medical expense supplement;
(g) exclude emergency medical services vehicles from the standby charge;
(h) extend to January 11, 2005 the date for charitable giving in respect of the 2004 taxation year for the tsunami relief effort;
(i) eliminate the corporate surtax; and
(j) extend the SR&ED tax incentives to SR&ED performed in Canada’s exclusive economic zone.
Part 2 amends the Air Travellers Security Charge Act to reduce the air travellers security charge for domestic air travel to $5 for one-way travel and to $10 for round-trip travel, for transborder air travel to $8.50 and for other international air travel to $17, applicable to air travel purchased on or after March 1, 2005.
Part 3 amends Part IX of the Excise Tax Act to extend the application of the 83 per cent rebate of the goods and services tax (GST) and the federal component of the harmonized sales tax (HST) to eligible charities and non-profit organizations in respect of the tax they pay on their purchases to provide exempt health care supplies similar to those traditionally provided in hospitals. It also amends that Act to provide that a director of a corporation may, under certain conditions, be held liable not only for unremitted net GST/HST amounts, but also for GST/HST net tax refund amounts to which the corporation is not entitled. Finally, it amends that Act to allow, under strict conditions, the creation of a Web-based GST/HST registry to facilitate the verification of a supplier’s registration by a registrant for the purposes of claiming input tax credits.
Part 4 amends Schedule I to the Excise Tax Act to phase out the excise tax on jewellery through a series of rate reductions over the next four years.
Part 5 amends the Federal-Provincial Fiscal Arrangements Act to authorize the Minister of Finance to pay funds to a trust established to provide the provinces with funding for the purpose of early learning and child care.
Part 6 authorizes the Minister of Finance to pay funds to a trust established to provide the Territories with funding for the purpose of assisting them to achieve the goals of the Northern Strategy.
Part 7 amends the Auditor General Act to permit the Auditor General to conduct inquiries into and report on the affairs of certain corporations that have received at least $100,000,000 in funding from Her Majesty in right of Canada. This Part also amends the Financial Administration Act to extend the application of financial management and control provisions in that Act to wholly-owned subsidiaries of parent Crown corporations and certain parent Crown corporations.
Part 8 authorizes the payment of funds to various foundations, including the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.
Part 9 amends the Asia-Pacific Foundation of Canada Act to focus the mandate of the Foundation, to modify its governance structure, to establish qualifications for the appointment of the directors and the President, to impose a duty of care on the directors and the President and to require that the Foundation offer its services in both official languages. It also amends the Act to specify the type of funds the Foundation may receive and the appropriate use of those funds and to require that those funds be invested in accordance with policies, standards and procedures established by the board. In addition, the provisions of the Act respecting auditing, annual reports and winding-up have been expanded.
Part 10 amends Part 1 of the Budget Implementation Act, 1998 to broaden the category of persons to whom the Canada Millennium Scholarship Foundation may grant scholarships and bursaries to include not only persons who are Canadian citizens or permanent residents of Canada within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act but also persons who are protected persons within the meaning of subsection 95(2) of that Act, for example, Convention refugees.
Part 11 authorizes the Minister of State (Infrastructure and Communities), pursuant to the initiative commonly known as “A New Deal for Cities and Communities”, to make payments for the purpose of providing funding, in the fiscal year 2005-2006, to cities and communities for environmentally sustainable infrastructure initiatives, in accordance with agreements to be negotiated with provinces, territories and first nations.
Part 12 enacts the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act. The legislation will implement the arrangements of February 14, 2005 reached with Newfoundland and Labrador and Nova Scotia on offshore revenues. To do this, the legislation will
(a) authorize the payment of equalization offset payments to Newfoundland and Labrador and Nova Scotia for 2004-05 to 2011-12, set out the conditions under which payments will be extended to any of fiscal years 2012-13 to 2019-20, and authorize payments for that period should those conditions be met;
(b) set out the manner in which the offset payments are to be calculated;
(c) authorize the making of a cash pre-payment in the amount of $2 billion in respect of the agreement with Newfoundland and Labrador and a cash pre-payment in the amount of $830 million in respect of the agreement with Nova Scotia; and
(d) implement all other aspects of the agreements.
Consequential amendments to the Budget Implementation Act, 2004 respecting offset payments to Nova Scotia will also be required to ensure that 100 per cent offset is being provided for in fiscal years 2004-05 and 2005-06.
Part 13 establishes an Agency, to be called the Canada Emission Reduction Incentives Agency, to acquire greenhouse emission reduction and removal credits on behalf of the Government of Canada.
Part 14 enacts the Greenhouse Gas Technology Investment Fund Act. That Act establishes an account in the accounts of Canada called the Greenhouse Gas Technology Investment Fund to which are to be charged amounts paid by the Minister of Natural Resources for the purpose of
(a) research into, or the development or demonstration of, technologies or processes intended to reduce emissions of greenhouse gases from industrial sources or to remove greenhouse gases from the atmosphere in the course of an industrial operation; or
(b) creating elements of the infrastructure that are necessary to support research into, or the development or demonstration of, those technologies or processes.
The Act also provides for the creation of technology investment units in respect of amounts that are contributed to Her Majesty for those purposes.
Part 15 amends the Canada Deposit Insurance Corporation Act to
(a) increase the deposit insurance coverage limit for insurable deposits from $60,000 to $100,000;
(b) repeal the authority of the Corporation to make by-laws respecting standards of sound business and financial practices for member institutions; and
(c) provide that the deposits of a federal institution shall automatically be insured.
Part 16 amends the Canada Student Financial Assistance Act to provide for the termination of the obligations of certain borrowers in respect of student loans in the event of their death or if, as a result of their permanent disability, they are unable to repay their loan without exceptional hardship, taking into account their family income.
Part 17 amends the Currency Act with respect to the Exchange Fund Account and the management of Canada’s foreign exchange reserves. These amendments include authorizing the Minister of Finance to establish a policy concerning the investment of assets held in that Account and to advance funds to that Account on terms and conditions that the Minister considers appropriate.
Part 18 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with responsibility for the procurement of goods and services for the federal government, and to authorize the Minister to negotiate and enter into contracts on behalf of the Government of Canada and to make commitments to a minimum volume of purchases on its behalf.
Part 19 amends the Employment Insurance Act and the Department of Human Resources Development Act to allow the Canada Employment Insurance Commission to set the premium rate under a new rate-setting mechanism. In setting the rate, the Commission will take into account the principle that the premium rate should generate just enough premium revenue to cover payments to be made for that year, as well as the report from the employment insurance chief actuary and any public input. On an as-needed basis, the Commission may also contract for the services of persons with specialized knowledge in rate-setting matters. If it is in the public interest to do so, the Governor in Council may substitute a different premium rate. In any given year, the rate cannot change by more than 0.15% ($0.15 per $100) from the previous year’s rate, and for the years 2006 and 2007 must not exceed 1.95% ($1.95 per $100).
Part 20 amends the Employment Insurance Act, for the purpose of the implementation of a premium reduction agreement between the Government of Canada and a province, to allow for a regulatory scheme to make the necessary adjustments and modifications to that Act as required to harmonize it with a provincial law that has the effect of reducing or eliminating the special benefits payable under that Act. A consequential change is also made to the parental benefits provisions.
Part 21 amends the Financial Administration Act to provide the authority for the President of the Treasury Board to create a shared-governance corporate entity for the purpose of administering group insurance or other benefit programs. In addition, the amendments provide the authority for the Treasury Board to establish or modify those programs not just for employees of the public service but for other persons or classes of persons as well.
Part 22 amends the Old Age Security Act to increase the guaranteed income supplement by $18 a month for single pensioners and by $14.50 a month for each pensioner in a couple, effective January 2006. Also, the amendments increase the allowance by $14.50 a month and the allowance for the survivor by $18 a month, effective January 2006. In addition, the amendments provide for identical increases to the guaranteed income supplement, the allowance and the allowance for the survivor in January 2007.
Part 23 authorizes the Minister of Finance to pay funds directly to the provinces of Quebec, British Columbia and Saskatchewan and to each of the three Territories.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Business of the HouseOral Question Period

June 9th, 2005 / 3 p.m.


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Hamilton East—Stoney Creek Ontario

Liberal

Tony Valeri LiberalLeader of the Government in the House of Commons

Mr. Speaker, this afternoon we will continue with the opposition motion. I wish to designate Tuesday, June 14 as an allotted day, which means that the main estimates shall be dealt with that day.

Tomorrow we will begin report stage of Bill C-43, which is the first budget bill. This bill will be our priority until it is disposed of. When Bill C-48, the second budget bill, is reported from committee, it, too, shall be given our top priority.

There are discussions among the parties concerning the early disposal of Bill C-2, the child protection legislation; Bill C-53, the bill respecting proceeds of crime; and possibly Bill C-56, the Labrador-Inuit legislation.

The other pieces of legislation that we can anticipate debating in the next week are: Bill C-26, the border services bill; Bill S-18, the census legislation; Bill C-25, RADARSAT; Bill C-52, the Fisheries Act amendment; Bill C-28, the Food and Drugs Act amendments; Bill C-37, the do not call legislation; Bill C-44, the transport legislation; and Bill C-47, the Air Canada bill.

Department of Social Development ActGovernment Orders

June 8th, 2005 / 5:10 p.m.


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Bloc

Christian Simard Bloc Beauport, QC

Madam Speaker, I thank my colleague for his question.

I have already had this debate with environmental organizations protesting on Parliament Hill. Generally, they supported the NDP, even with regard to legislation on environmental protection. Apparently, Ottawa knows best. How can we change this mindset? I have heard some horrible stories. For example, people told me that, since Ottawa is far away, it was far from the lobbies and, therefore, insensitive to the business lobby. They thought that, as a result, the federal government would be more objective than the provincial governments when it came to adopting national standards, since it was not involved in business. To be fair, this was before the sponsorship scandal.

If it was not so sad it would be funny. But it is sad, because imposing national standards and having endless discussions in order to impose its dictates diverts funds from those who are able to provide public services.

Certain things must be fixed. The Charest government in Quebec has renewed the housing program. Pressure is being exerted. We are holding debates and ensuring integrated policies. We do not need our big brother in Ottawa, who usually leans far to the right, as we know.

The budget, otherwise known as Bill C-43, which we also oppose, provides $13 billion for national defence and nothing for social housing. Of course, the federal government has managed to postpone its own end, thanks to a party that unfortunately traded its morals and integrity for promises and commitments that respect neither the provinces nor the unemployed. Unfortunately, the public will punish that party for having lent or tried to lend credibility to a government that had none.

Committees of the HouseRoutine Proceedings

June 8th, 2005 / 3:20 p.m.


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Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, I have the honour to present, in both official languages, the 12th report of the Standing Committee on Finance on Bill C-43, an act to implement certain provisions of the budget, tabled in Parliament on February 23. The committee agreed on Tuesday, June 7 to report it with amendments.

The BudgetOral Question Period

June 8th, 2005 / 2:55 p.m.


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Liberal

Don Bell Liberal North Vancouver, BC

Mr. Speaker, while testifying before the finance committee, the Canadian Association of Petroleum Producers spoke in favour of the government's proposed technology fund contained in Bill C-43. Its president said:

Canada needs to increase its investment in new technology. The policy direction for LFE targets includes an innovative feature that recognizes the importance of technology development.

This initiative has the support of industry, it has the support of the environmental community and it has the support of government. Can the Minister of Finance explain why the Conservative Party turned its back on industry and defeated this initiative?

Employment InsuranceOral Question Period

June 7th, 2005 / 2:35 p.m.


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Newmarket—Aurora Ontario

Liberal

Belinda Stronach LiberalMinister of Human Resources and Skills Development and Minister responsible for Democratic Renewal

Mr. Speaker, the human resources committee brought forward a number of recommendations to strengthen the independence of the EI commission. They were taken into consideration and were brought forward in the budget bill, Bill C-43, to strengthen the independence of the commission as it strengthens the way that the rate is set, and that it is brought about in a more transparent and accountable way.

Fisheries ActGovernment Orders

June 6th, 2005 / 6:05 p.m.


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Conservative

Randy Kamp Conservative Dewdney—Alouette, BC

Madam Speaker, there is a lot of shooting going on here, but let me take this opportunity to debate Bill C-52, an act to amend the Fisheries Act.

As has already been mentioned, the bill would add the following section after section 9:

Every one acting under the authority of a permission referred to in section 4 or of a lease or licence issued under this Act shall comply with its terms and conditions.

It goes on as well to add the clarification:

For greater certainty, those permissions, leases and licences — including their terms and conditions — are not statutory instruments for the purposes of the Statutory Instruments Act.

On the surface this seems to be a benign addition to the Fisheries Act. What could be wrong with stating that someone who is issued a licence, for example, is expected to comply with the licence's terms and conditions? It would appear to be the government's position that this is little more than a housekeeping measure. I am well aware of the fact that the government made every effort to try to get this passed at all stages.

In the few minutes that I have I will explain why in my opinion this is not benign, and why Parliament should proceed very carefully. In order to do that let me begin by providing a little important background.

Although it is true that the legislation has been presented with little or no advance notice, its genesis has been actually several years in the making. I will attempt to make a long story short.

The Ontario fishery regulations contain a regulation in section 36(2) that provides the following:

No holder of a commercial fishing licence shall violate any of the terms or conditions of the licence.

Although it is stated negatively, one will notice that it is similar in substance to the bill that is before us today. As has already been pointed out, this regulation has troubled the Standing Joint Committee for the Scrutiny of Regulations for some time. In fact, this provision was dealt with by the committee in its second report in the second session of the 36th Parliament in 2000. It concluded:

The regulation not only lacks legal authority, but trespasses unduly on rights and liberties, and represents an unusual and unexpected use of the enabling authority.

Put simply, it was and is the position of the committee that regulations imposing sanctions or creating offences must be expressly authorized by Parliament. It is important to understand that because it is the same principle in play with the legislation before us today. Without this measure, a term or condition of a licence is not considered a provision of the act, so the violation of such a term or condition does not constitute a contravention of the act or regulations. However, the regulation in question in Bill C-52 makes it a legal responsibility to abide by the terms and conditions of a licence. It follows then that any contravention of those terms becomes a violation of the act and attracts the offence and punishment section of the Fisheries Act, section 78. The sanctions in that section are considerable so let me read them into the record:

an offence punishable on summary conviction and liable, for a first offence, to a fine not exceeding one hundred thousand dollars and, for any subsequent offence, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year, or to both; or

an indictable offence and liable, for a first offence, to a fine not exceeding five hundred thousand dollars and, for any subsequent offence, to a fine not exceeding five hundred thousand dollars or to imprisonment for a term not exceeding two years, or to both.

Those are pretty significant penalties, so we ought to be very careful here.

The Department of Fisheries and Oceans has continued to maintain that the questionable regulation is valid in spite of the continued disagreement of the scrutiny of regulations committee. It has argued in the past, for example, that the regulation merely imposes a standard of conduct or a requirement. The scrutiny of regulations committee concluded that the argument is best characterized as disingenuous.

In spite of the belief that the regulation was valid, the minister twice introduced a bill in the 37th Parliament that was intended to provide a legislative solution. Both died on the order paper.

To finally make a long story short, the scrutiny of regulations committee lost patience with the Minister of Fisheries and Oceans. On May 9 it issued a disallowance report to send a clear message that the offence-creating regulation was not authorized by the act and the process to have it revoked was started. That appeared to catch the attention of the minister and he finally introduced the bill that is before us today.

An obvious question is, does this solve the legal problems highlighted by the scrutiny of regulations committee? In fact, the committee was asked that very question when similar legislation was introduced in the last Parliament. The committee answered unequivocally, “We are pleased to confirm that the proposed amendments would, if adopted, remove the basis for the joint committee's objections”.

That is the good news. I do not think anyone disagrees that this bill will solve the minister's legal problems. However, and this is the crucial point, that does not mean Bill C-52 is good legislation. In fact, the standing joint committee recognized that other important issues need to be addressed. In that same letter from which I just quoted, the committee went on to add:

Our acknowledgment that amendments included in Bill C-43 --

--the bill number in the last Parliament--

--would resolve the Committee's objections to the legality of the relevant regulatory provisions does not imply an endorsement of those amendments. Particularly as regards the proposed section 10(1), which would impose a legal duty to comply with the terms and conditions of the licence, we can conceive that some parliamentarians might object to subjecting such non-compliance to penal sanctions that include imprisonment. To deprive a citizen of his liberty on the ground that the citizen has failed to abide by a requirement imposed by a public official in the exercise of administrative power, such as a term or condition of a licence, could be thought undesirable as a matter of legislative policy.

In fact, that is the question before us. As parliamentarians, do we object, do we find it undesirable that non-compliance of a requirement imposed by a public employee in the exercise of an administrative power can result in penal sanctions that could include imprisonment? I do not know about you, Madam Speaker, but when I go to jail, I prefer it to be for violating a law that has been passed by a parliament or for contravening a regulation that has been subjected to thorough scrutiny.

I am one of those parliamentarians that objects to putting this kind of arbitrary power in the hands of a public official.

Let me mention as well that I have the duty of being on both the fisheries committee and the scrutiny of regulations committee. Contrary to the way the member for Scarborough—Rouge River has recalled it, yes, we agreed that if this bill was passed it would address the concern of the committee regarding the legality. I did not hear any agreement to revoking that regulation.

Even in our last meeting we expressed the problems that were addressed in this letter. Yes, this solves the minister's legal problems and we know he knows that he has a problem. We still have a legislative policy issue that we need to resolve.

The government appears to be quite committed to getting this bill passed. The Liberals must believe it is important. In fact, as has been quoted already, the Minister of Fisheries and Oceans sent a letter to the joint chairs of the scrutiny of regulations committee on April 19. In the letter he referred to a letter that he had received from the Ontario minister of natural resources. In that letter the minister sent to the committee he said:

As you will see in Minister Ramsay's letter, revoking subsection 36(2) of the OFR [Ontario fisheries regulations] would have severe negative implications on Ontario's commercial fishery and threaten sustainability of Ontario's fisheries resources.In transmitting Minister Ramsay's letter I would like to impress upon the committee that revoking subsection 36(2) of the OFR would have serious negative effects on fisheries conservation and management in Ontario. I would also like to re-emphasize my intention to carry out a broader renewal --

The letter from Minister Ramsay went on to state:

Terms and conditions are currently the only mechanisms by which Ontario can establish allowable quota, areas where fishing can occur, designates who can take fish under a licence, reporting for commercial fishing licences. Without this provision, Ontario would literally have its hands tied with respect to enforcement of the commercial fishery. It is entirely likely that the revocation of subsection 36(2) would result in chaos in this sector and threaten the sustainability of our fisheries resources.

Of course, this is the threat the minister wants to leave before us. He will probably tell us on Wednesday that if we revoke the regulation and defeat the legislation we will be left with chaos in Ontario and, maybe by extension, elsewhere in the country. That, I think, is to misunderstand the situation a little.

The scrutiny of regulations committee responded to that in its most recent report. It states:

In closing, the Committee wishes to briefly address the statement by the Ontario Minister of Natural Resources that:

I just quoted that statement. The report goes on to say:

To the extent this comment suggests that disallowance of section 36(2) would impair the ability to impose terms and conditions of licences, it does not reflect a clear understanding of the nature of section 36(2). Disallowance of that section may change the manner of enforcing compliance with terms and conditions of licences, but would certainly not affect in any way the ability to impose such terms and conditions.

We need to ask and answer what remedies would be left to the government if the legislation is defeated, as I think it should be. As the letter has pointed out, the mechanism of imposing those terms and conditions is still there. It is another question whether the department should have that ability to impose those but it still does under the current Fisheries Act.

The government would still have the ability to impose these terms and conditions but what will the mechanisms be to enforce those? Under the act it still has the power to revoke or cancel a licence. I understand that the minister does not like that option but that is an option left open to him.

Another option, which has been mentioned in more detail by my colleague from Delta—Richmond East, is that we could expect the ministry, if it wants to regulate the industry, to put forth its regulations. It should go through the process, those things that are subject to the Statutory Instruments Act and gazette them. It should tell fishermen what they can expect if they sign on to these licences, what the terms and conditions will be and what they can expect if they violate these conditions.

This appears to me to be flawed legislation. The unintended consequences could be enormous. If I were a fisherman, I would be very concerned about this and I know many of them are. On behalf of many fishermen in my riding of Pitt Meadows—Maple Ridge—Mission, I will be voting against this.

Fisheries ActGovernment Orders

June 6th, 2005 / 5:35 p.m.


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Conservative

John Cummins Conservative Delta—Richmond East, BC

Madam Speaker, one would have thought that members on the government side would have been eager to now stand in their allotted time and defend their bill, but apparently that is not the case. To be quite honest, I can certainly understand why the members opposite do not want to stand to defend this particular bill.

Let us look at the bill. Bill C-52 amends the Fisheries Act to “provide that a breach of a term or condition of a permission” granted under section 4 of the act, “or of a licence or lease” under the act is an offence. This amendment is meant to make it easier for the Department of Fisheries and Oceans to enforce the act, so the department says.

The issue here is that Bill C-52 was before this House as Bill C-33 in the third session of the 37th Parliament, and as Bill C-43, again in the 37th Parliament. Both of these bills died on the order paper. In a sense, it does not really take a whole of thought to understand why.

At the introduction of Bill C-52, the Minister of Fisheries and Oceans suggested that the bill comes about because the Senate and House of Commons Standing Joint Committee for the Scrutiny of Regulations tabled a disallowance report, and the government failed to respond to that disallowance report with substantive legislation.

There is a problem there. If we look at the backgrounder document that the government distributed to members of the opposition and others, we will see that it states that this bill adds a clause to the Fisheries Act requiring licence holders to obey conditions of their licence, effectively moving the regulation in question into the act and thereby obtaining permission from Parliament for such a requirement.

That particular phrase rather clouds the issue, because it does not really tell the story of what this bill would do. The government says it would like to have passed the bill in all its splendour this afternoon and alluded to the fact that it is “hurry up” and that if the bill is not passed the Ontario minister will be unable to manage the fishery.

It should be noted today that the scrutiny of regulations committee first advised the Department of Fisheries and Oceans in 2000 that the governing Ontario fisheries regulations were illegal, which means that five years ago the government was advised that these regulations were illegal.

The regulations governing the Fisheries Act and the act itself actually make up quite a good document. It is 137 years old, as some members opposite suggested today, and to be quite honest I think it is still quite a good bill. The bill itself makes very clear what the minister's powers are and it makes very clear what the minister's obligations are when it comes to protecting the resource.

On the offence side, sections 181 through to 184 make clear the procedures that government must follow if it is going to enforce the act, and I think those procedures are laid out in a very clear fashion for everyone to understand. The regulations that flow from that act are scrutinized by the joint committee of the Senate and the House of Commons to ensure that the regulations are in fact consistent with the obligations as set out in this particular act.

Therefore, I do not have a problem with the Fisheries Act and neither does the Senate and House of Commons Standing Joint Committee for the Scrutiny of Regulations, which makes it very clear that within the act itself the government has the authority to manage the fisheries.

If Bill C-52 is not passed today, it does not mean the end of the world, as the Ontario Minister of Natural Resources suggests. It simply means that perhaps a little more work is going to have to be done by the bureaucrats to put in place appropriate regulations to ensure that those regulations are in compliance with the Fisheries Act and meet the demands of the act. That should not be too difficult for government to do. In fact, that should be the obligation.

I would like to now turn the clock back a little. My friend from Winnipeg will probably remember this issue better than most. I am referring back to March 6, 1986, and a speech in the House by the Hon. Ray Hnatyshyn, who was the President of the Privy Council at that time and the minister responsible for regulatory affairs. At that time he introduced in the House the citizens' code of regulatory fairness. He stated that it was a unique initiative based on the principle that Canadians are entitled to know in as much detail as possible exactly how government regulations are to carry out responsibilities. Citizens have a right to know the rules of the game and know that they will be fair.

That is what the citizens' code of regulatory fairness was all about. I will quote from the guiding principle of this regulatory policy. Principle No. 6 notes, “Regulation is legislation and, as such, will be brought more fully under the control of elected government representatives and subjected to more effective review by Parliament”.

Principle No. 7 of the regulatory policy stated that “the public has an important role to play in the development of regulation and the government will increase public access to and participation in the regulatory process while simplifying procedures and restricting legalities to the minimum”.

Is that not interesting? Back in 1986, almost 20 years ago, introduced in the House was a document which in fact I think speaks very clearly about what the government is not doing today and what it should be doing, the document being, of course, this citizens' code of regulatory fairness.

According to the policies and the guiding principles of this piece of legislation from 1986, it required public participation in the regulatory process and input from the public to ensure that the public fully understood the regulatory process that they were to be governed by and guided by, and that they had input. “Anything but” is the case today.

The code's purpose, as Mr. Hnatyshyn stated, was “to provide a high set of standards for ensuring regulatory fair play”. He said, “The code also provides an explicit basis for judging the performance of regulators. In this way, the code is intended to regulate the regulators”.

There is no regulation of the regulators in this particular bill. In fact, what the bill does is give the departmental bureaucrats, who visited upon the country the cod crisis of 1992 and who visited upon fisheries on the west coast the disaster of 2004, the ability to make regulations on the fly without public input and without the scrutiny of the Standing Joint Committee for the Scrutiny of Regulations. It gives them carte blanche to do what they want and to establish regulations as they see fit without any scrutiny whatsoever. For me, that goes beyond the pale.

I do not want to give the minister the power to have bureaucrats create regulatory offences without some safeguards; I am not prepared to simply turn over to fisheries bureaucrats the ability to make regulations governing the fishery without the appropriate scrutiny. I think that is wrong and I think that for this place to allow this to go forward is just outrageous. It is beyond the pale that the government would bring in a bill of this sort.

The citizens' code of regulatory fairness addresses this issue as well in point 6 of the code. It states that “the rules, sanctions, processes and actions of regulatory authorities will be securely founded in law”.

If a bureaucrat can make regulations on the fly, where is the guarantee that those regulations would be securely founded in law? Where is it? Where is the scrutiny to see that in fact the regulations the bureaucrat is putting in place are regulations that were envisioned by this place when the Fisheries Act and its amendments were passed? It is not there.

Point 7 of the code states that “the government will ensure that officials responsible for developing, implementing or enforcing regulations are held accountable for their advice and actions”.

Accountable? When have we ever held officials in the Department of Fisheries and Oceans accountable? Can anybody name one official in the Department of Fisheries and Oceans who was held accountable during the cod collapse on the east coast or during what went on last year on the west coast? The crisis last year was about the fourth we have had since 1992 and nobody has ever been held to account.

In fact, let us look at one of the latest newspaper headlines: “Ottawa pays officials $32-million in bonuses”. There is also a graph showing us that 223 of 237 executives at the fisheries and oceans department received bonuses totalling $1.7 million. Those bonuses went to officials and executives of the Department of Fisheries and Oceans last year when those boys last year cost the economy of British Columbia probably $70 or $80 million, at a modest estimate, and maybe even as much as $150 million, also a modest estimate, because of lost opportunities in the next cycle of the 2004 fishery. In other words, in 2008 the loss to the economy of British Columbia could total $150 million, yet those guys received bonuses this year.

Where is the accountability? The citizens' code of regulatory fairness says that these bureaucrats should be held accountable. I do not see any accountability in the Department of Fisheries and Oceans, none whatsoever. What I do see with Bill C-52 is the transference of this regulation making authority from the minister or from this place to a bureaucrat, without any scrutiny whatsoever, none, zero.

Nobody is standing there saying that this particular licence condition does not meet the demands or the expectations of the act. It simply says that the bureaucrat can put in place a condition and nobody has any right to challenge it.

If the issue is brought to court, the court would simply acknowledge that Parliament put that regulation in place and it gave that bureaucrat the authority to make that particular condition that is attached to the licence and nobody can do anything about it. The court will simply acknowledge that the bureaucrat has the authority and it will do absolutely nothing to protect the fisherman who is hurt.

As I said to my colleague earlier, if a fisherman who is hurt by that particular piece of legislation comes to a member of Parliament, there is essentially nothing that we could do short of trying to obtain some change to the act to rein the authority of the bureaucrat, but nothing else could be done.

Not one member in this place should find any solace in this bill, nor should there be support for it. It is beyond the pale and my wildest imagination why anyone would want to give this authority to the bureaucrats who caused the destruction of the 2004 Fraser River sockeye run or who were directly responsible, in many ways, for failing to serve notice at the very least to government that there was a crisis in the cod fishery on the east coast before it was too late. Why would we want to give these bureaucrats authority to continue to act with licence? I do not know. I just plain do not understand it.

Bill C-52 would make it a criminal offence to break an unpublished secret law written by unaccountable bureaucrats.

Bill C-52 would put no limits on the nature and scope of the terms and conditions that can be imposed on fishermen.

Bill C-52 would put no limits on the penalty, the breach of every secret term or condition that is punishable by imprisonment. The penalty is not tailored to fit the crime.

Bill C-52 would remove the requirements to publish or make public the regulations.

There is no requirement in Bill C-52 that everyone in a fishery should face the same set of licence conditions. There is no requirement that every fisherman would face the same sets of terms and conditions to fish, so that the fishery then could be tailored and there could be different rules for different people.

Regulations under the Fisheries Act make those who write regulations accountable to Parliament as a whole and in particular the scrutiny for regulations committee, as well as the fisheries committee. In Bill C-52 neither the scrutiny for regulations committee nor the fisheries committee would ever see this new form of regulation. This is not a scheme of regulations that was ever intended by the Fisheries Act.

The Fisheries Act provides for open, public and accountable regulations. Bill C-52 would remove that. These amendments would undermine that scheme of open, public accountability that is built into the Fisheries Act. When regulations are created under the Fisheries Act, they are published prior to going into effect so that members of the public can comment on them.

That will not happen with these terms and conditions. When regulations are created under the Fisheries Act, a publicly available regulatory impact statement is a legal requirement. There is no such requirement for a term or condition as proposed under Bill C-52.

Bill C-52 is simply a way for the minister and the bureaucrats to regulate the fishery outside the requirements of the Citizen's Code of Regulatory Fairness. It would substitute the regulation of the fishery through public accountable regulations grounded in law and would substitute instead a scheme of regulations by unaccountable bureaucrats, all done behind closed doors.

Fisheries ActGovernment Orders

June 6th, 2005 / 4:50 p.m.


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Bloc

Jean-Yves Roy Bloc Matapédia—Matane, QC

Madam Speaker, the riding's name may not be Pearl Harbor, as my friend from Newfoundland pointed out earlier, but as far as I am concerned today's debate is a total aberration.

I was listening to my colleague from Scarborough—Rouge River, who said that we had no choice but to pass the bill in question, because acting otherwise might jeopardize Ontario's commercial fishery. What is surprising to me in such a statement is that we are not talking about a new problem; it has been around for years. The Department of Fisheries and Oceans had the opportunity to review the legislation but chose not to.

To put all this into context, I will remind the House that eight years ago, in 1997, the Standing Joint Committee for the Scrutiny of Regulations criticized the Department of Fisheries and Oceans for making regulations which it described as ultra vires. In other words, the department was making regulations without being expressly permitted to do so by law. The committee, with which some members are very familiar, denounced the Aboriginal Communal Fishing Licences Regulations, among others.

We can go on with the historical overview. Bill C-43 was introduced during the second session of the 37th Parliament. This goes to show that the problem is not new. The bill was to amend the legislation so that the Aboriginal Communal Fishing Licences Regulations could be implemented. Once again, the committee reacted, and gave its opinion: it was opposed. The Standing Joint Committee for the Scrutiny of Regulations did notice that Bill C-43 was fixing the problem, but it denounced its subsection 10(1), which has now made its way into the current Bill C-52.

In my opinion, this is a dispute that has been going on for many years and that cannot be resolved with Bill C-52. We will recall that Bill C-43, the predecessor of Bill C-52, was never passed. Now, Bill C-52 only retains subsection 10(1), precisely the subsection challenged by the Standing Joint Committee for the Scrutiny of Regulations. I cannot conceive how one can put such a bill before the House today and expect the House to adopt it.

What is the aim of Bill C-52? It has only one, which bears mentioning to all the fishers, be they on the west coast, east coast or in Ontario. It aims to expressly provide that a breach of a term or condition of a permission referred to in section 4 of the act, or of a lease or licence issued under the act, particularly for the purposes of stocking or artificial breeding or for scientific purposes, is an offence. As if scientific research were an offence under the legislation or the regulations. This bill contains a very significant incongruity, in our opinion.

Under section 78 of the Fisheries Act, only violations of this act or the regulations constitute an offence liable to a fine or imprisonment. This is extremely important. This is why we clearly cannot support this bill. Violations of the legislation or its regulations constitute an offence solely under section 78 of the Fisheries Act.

However, the conditions of a permission are not statutory provisions or regulations, and the violation of such a condition does not constitute a violation of the act or its regulations within the meaning of section 78 of the act itself.

So, the breach of the terms and conditions of permissions, leases or licences is governed by section 9 of the act, which provides that the minister may suspend or cancel a licence, lease, etc. That section alone has the effect of penalizing a citizen. This is extremely important, because it concerns all fishers. Indeed, the bill will not only apply to residents of Ontario, as mentioned by my colleagues earlier, but to all fishers from coast to coast.

The only effect of this bill will be to deprive a citizen of his freedom, on the grounds that he may not have complied with a requirement imposed by a public official exercising an administrative power. As our colleagues pointed out earlier, it is extremely important to understand that only the House of Commons has the authority to pass legislation and to impose fines or prison terms. This power cannot be given to a public official from the administrative sector, but this is precisely what Bill C-52 does.

The Bloc Québécois does not agree with the bill before us.

Earlier, the hon. member for Scarborough—Rouge River told us that the department had some problems amending the Fisheries Act. For various reasons and motives the department had not yet been able to propose changes to the Fisheries Act. I have news for the hon. member. The Fisheries Act has been in existence for 137 years. During that period, the Department of Fisheries and Oceans had ample time to sit down and propose gradual changes to the act, so as to adapt it to today's world.

I do not buy the claim that, over a period of 137 years, the department did not have time to look at the act and see what amendments should be made. To make such a statement is really not being very serious. Moreover, they are coming up with Bill C-52 at the very last minute. Yet, we have known since 1997 about the problem, about the fact that the act would have to be amended and adapted to modern day fishing conditions.

At the present time, of course, the Fisheries Act can indeed cause problems. Still, as several of my colleagues have just pointed out, the legislation is not what has ended us up in major disasters, nor what has done away with our resources. Nor is it the act that led us to one moratorium in the east in the early 1990s and a second in the early 2000s. It is not the Fisheries Act that has brought the situation to where it is. It is poor resource management that has deprived us of the resource.

Precautionary principles should have been applied to managing the resource. The ability to do so was there and the means were there. If these precautionary principles had been applied, we would still have an abundant resource.

We can talk about what is going on at present. The standing committee has just tabled its umpteenth report on the Fraser River salmon. Once again we realize that Fisheries and Oceans has learned nothing from the past. Hon. members will recall that, back in 1994, there was a similar crisis to last year's. This generated several reports, particularly the one by Mr. Fraser, former Minister of Fisheries and Oceans, and former Speaker of this House. Having stated the problem, he proposed a broad range of recommendations which made it possible to remedy the situation.

It is as if the department has not learned or retained anything of what it was told in the past, everything submitted to it by the various people whom DFO itself commissioned to carry out studies and make the necessary checks. It has not implemented the regulations. The way the resource has been managed has nothing to do with Bill C-52. Management of the resource has been poorly planned and poorly handled by Fisheries and Oceans, and by the Government of Canada in general, ever since Confederation.

In recent years, fishing practices have clearly changed. The issues of fishing have changed and, overall, everything has changed. The pressure on the resource was therefore greater. However, they could manage that pressure and adapt as time went on to new fishing techniques and practices.

As regards the Fisheries Act, I read, among other things, a report released in April 2004 by Donald McRae and Peter H. Pearse. It mentioned of course that the Fisheries Act was out of date and that it should be amended. However, it is not by amending it piecemeal, in tiny bits, from time to time, that they will resolve the problem. On the contrary, they run the risk of creating a problem bigger than the one they are trying to solve.

Indeed, if tomorrow morning the public service were given almost carte blanche power—almost the power to imprison—Parliament would be deprived of one of its main functions, that of passing legislation making it possible to impose penalties.

I note that, despite what our colleagues in government have told us, the Standing Joint Committee for the Scrutiny of Regulations never agreed to subclause 10(1), which the government is tying to impose today under Bill C-52. Never did the committee agree to the clause moving forward through a bill. There was never any question of that. The committee has always withheld its approval. A notice of disallowance is in fact before the House, which should be examined in the coming days.

Obviously, we are going to oppose Bill C-52 for the reasons I have just cited.

We want a total reform of the Fisheries Act. However, an overhaul of the Fisheries Act does not mean the government will better manage resources. It would take real political will to protect them. The primary function of the Department of Fisheries and Oceans is, in fact, to protect and safeguard resources for now and for the future, in other words, for those fishing today and for those who would like to fish in the future.

Fisheries ActGovernment Orders

June 6th, 2005 / 4:15 p.m.


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Conservative

John Cummins Conservative Delta—Richmond East, BC

Madam Speaker, I would like to point out to my friend that in a letter to the Minister of Fisheries and Oceans on April 14 of this year, the committee noted that the proposals in Bill C-52 were essentially the same proposals that were included in Bill C-43 a year ago.

The committee made it clear in that letter, when it said:

To deprive a citizen of his liberty on the ground that the citizen has failed to abide by requirement imposed by a public official in the exercise of an administrative power, such as a term or condition of licence, could be thought undesirable as a matter of legislative policy.

The committee then made it quite clear that penalizing someone and putting someone in jail based on violating a policy that was put forward by a bureaucrat as opposed to Parliament was rather unseemly and unprecedented. The committee unanimously sent that letter to the minister. Now the member seems to think that this is okay.

As well, the minister himself quoted from a letter from the Ontario minister of natural resources. I will not read the quote again, but the response of the committee was:

To the extent this comment suggests that disallowance of section 36(2) would impair the ability to impose terms and conditions of licences, it does not reflect a clear understanding of the nature of section 36(2). Disallowance of that section may change the manner of enforcing compliance with terms and conditions of licences, but would certainly not affect in any way the ability to impose such terms and conditions.

The EconomyOral Question Period

June 6th, 2005 / 2:30 p.m.


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Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

Mr. Speaker, the tax reductions for individual Canadians continue to be a part of Bill C-43. In terms of two particular tax reductions with respect to corporations, they will be proceeded with by means of separate legislation.

I point out to the hon. gentleman that Canada has now the best fiscal record of any country in the G-7. We have accumulated over the last eight years the best fiscal performance of any Canadian government since 1867. That will continue to be the government's approach.

The BudgetOral Question Period

June 6th, 2005 / 2:25 p.m.


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Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

Mr. Speaker, the incredible flipping and flopping of the opposition is what created the controversy around Bill C-43.

I would point out to the hon. member that an arrangement was possible to invest more in housing, post-secondary education, the environment and foreign aid because we had the precondition that there would be no deficit, that the budget would be balanced, that we would run surpluses, and that we would pay down the debt at the rate of at least $2 billion per year.

TaxationOral Question Period

June 6th, 2005 / 2:20 p.m.


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Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

Mr. Speaker, even with the revisions proposed with respect to Bill C-48, there remains over $7 billion worth of tax reductions in Bill C-43, particularly aimed at lower and middle income Canadians.

I would point out that Bill C-48 itself calls for the government to avoid a deficit. It calls for the federal budget to be in surplus. It calls for $2 billion per year to be applied on debt paydown. That is all consistent with the fundamental principles of fiscal responsibility.

National DefenceOral Question Period

June 3rd, 2005 / 11:45 a.m.


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Conservative

Gordon O'Connor Conservative Carleton—Lanark, ON

Mr. Speaker, twice in this House the minister implied that if the budget bill, Bill C-43, were not passed, the military would not get its money. This is false. The Department of Finance advises:

Legislation is not required for many of the spending measures proposed in Budget 2005, such as the funding for National Defence, as parliamentary approval can be achieved through the normal appropriation process.

Why did the minister grandstand and mislead the House with respect to funding for the military?

SupplyGovernment Orders

June 2nd, 2005 / 3:40 p.m.


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Peterborough Ontario

Liberal

Peter Adams LiberalParliamentary Secretary to the Minister of Human Resources and Skills Development

Mr. Speaker, I listened to my colleague's discussion about EI and the suggestion that in some way the EI program was lacking in generosity, that we only needed another $20 million and that this would have some effect. I feel obliged to put some things on the record.

The first one is that in the budget, Bill C-43, which is before us and which I know he and his party are supporting, there are $300 million in new investments in the EI program which shows that the government is putting in money. They include the three new pilot projects which will benefit 220,000 people each year and will run for three years in regions where there is 10% per cent or more unemployment.

These programs will enable individuals new to the labour market or returning after an extended absence to access benefits up to 840 hours of work when linked with the employment program. They also will allow the calculation of benefits based on the best 14 weeks over the 52 weeks preceding the claim. I know we are discussing a change in the 14 weeks.

Also included in the $300 million is increasing the working while on claim threshold to allow individuals to earn the greater of $75 or 40% of benefits in an effort to encourage people to take work without a reduction in their benefits.

This is a figure we also should put against the $20 million which the member mentions. We have lowered premiums every year for the last many years. The result of these rate reductions for employers and employees means that in 2005 they will pay $10.5 billion less in premiums than they would have under the 1994 rates, which are at the beginning of the period that we are discussing.

Could my colleague comment on the fact that it is a generous program, attempts are being made to improve it and that although he is talking about $20 million, there is a lot more than $20 million in play here?

Business of the HouseOral Question Period

June 2nd, 2005 / 3 p.m.


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Hamilton East—Stoney Creek Ontario

Liberal

Tony Valeri LiberalLeader of the Government in the House of Commons

Mr. Speaker, before I get to the weekly business statement, I said at that time that I would begin to schedule opposition days before the end of May and that is exactly what I have done. There are a number more to schedule.

Today and tomorrow, of course, are allotted days. I also wish to designate next Tuesday and next Thursday as allotted days.

When the budget bills, Bill C-43 and Bill C-48 are reported from committee, they will certainly become our highest priority.

In the meantime, we will proceed with third reading of Bill C-22, the social development bill; report stage and third reading of Bill C-26, the border services legislation; second reading of Bill S-18, respecting the census; and Bill C-52, the Fisheries Act amendment.

We will then turn to report stage and third reading of bills that have been or are soon to be reported from committee. These include Bill C-25 respecting RADARSAT; Bill C-37, the do not call bill; Bill C-28, the food and drug legislation; and Bill C-38, the civil marriage bill. If there is time during the next three weeks, we will also start to debate the legislation that has been introduced during the last few weeks.