Bill C-43 (Historical)

Budget Implementation Act, 2005

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

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.

Budget Implementation Act, 2005

[Loyola Hearn, Conservative, St. John's South, NL]

moved:

That it be an instruction to the Standing Committee on Finance that it divide Bill C-43, An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005, into two bills: Bill C-43A, An Act to implement the Canada — Newfoundland and Labrador Arrangement and the Canada — Nova Scotia Arrangement and Bill C-43B, An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005; that Bill C-43A be composed of Part 12 (the Canada — Newfoundland and Labrador Arrangement and the Canada — Nova Scotia Arrangement); that Bill C-43B be composed of all remaining Parts of Bill C-43; that the House order the printing of Bills C-43A and C-43B; that the Law Clerk and Parliamentary Counsel be authorized to make such technical changes or corrections as may be necessary to give effect to this motion; and that Bill C-43A be reported back to the House no later than two sitting days after the adoption of this motion.

Mr. Speaker, I will be splitting my time with the member for Okanagan—Coquihalla.

This is an issue that has been before the House on several occasions recently. I will give members just a short bit of history. Three or four years ago, I, along with others, kept pushing government to offer the provinces of Newfoundland and Nova Scotia a better deal in relation to the revenues they get from offshore development. It culminated during the last election campaign, when our party made a solid commitment in writing to the province of Newfoundland and Labrador and to the province of Nova Scotia that should we form the government we would make sure that they would get 100% of their share of revenues from the offshore development.

The government opposite matched that commitment, won the election and now is in the process of delivering. However, in the interim, it was like pulling teeth to get even to where we are today, and we still have a way to go. Once the election was won, the government backed off on its commitment to the people of the Atlantic provinces. Day after day in this honourable place, members of this side of the House constantly questioned and pushed the government to deliver on its promise.

Finally, after being embarrassed by the opposition and by the provinces of Newfoundland and Labrador and Nova Scotia, the government signed an agreement. For instance, the premier of Newfoundland and Labrador had to walk out of meetings and had to order flags be taken down from provincial buildings. It was not easy to do, but it had to be shown to the country how important this issue was and how little regard was being paid not only to the needs of the provinces but to promises actually made by the government opposite.

Finally, on Valentine's Day, and I am not sure if there is a significance to that, everyone sort of kissed and made up and signed an agreement. That was over three months ago and the government was still hedging on bringing forth legislation. The bill is contained in a two page document, so it is not anything substantive. This went on and on. Finally, when the bill was presented it was part of an omnibus bill and was included with 23 other pieces of legislation.

Any bill of that complexity, especially if some of these pieces of legislation are ones which will cause concern to members of the opposition or members generally in the House if they are concerned about how we spend our money in this country, which we know members opposite do not worry too much about, is a very lengthy process.

We immediately asked for single stand-alone legislation. The province of Newfoundland and Labrador asked for stand-alone legislation. The province of Nova Scotia asked for stand-alone legislation. The government said, “No, the bill is in Bill C-43 and we will deal with it in totality”. Then we asked if the Liberals would split the bill; if they would take out the section pertaining to the Atlantic accord provisions and the funding arrangements for both provinces and deal with that separately so the money could flow.

The province of Newfoundland and Labrador is losing $3 million for every week this drags on. We asked that the accord be taken out. We asked that the bill be split. The Prime Minister, in responding to one of my questions, said that he could only do it with unanimous consent from the House. We asked for unanimous consent, we being the leader of the Conservative Party, seconded by the leader of the NDP, actually, whose members have supported this solidly throughout.

The government refused, but instead of taking the blame, it blamed the Bloc for objecting. After a few days we asked again that the government split the bill, this time with unanimous consent from every opposition member in the House. The government refused again.

Finally the budget came and the budget was passed, again with a huge majority thanks to the members of this party. That was because of how important one issue in particular is; it is not that we were in love with all 24 clauses in the budget, but certainly because that one issue is so important to the Atlantic provinces. Around this commitment hinges the future of Newfoundland and Labrador and, to some extent at least, that of the province of Nova Scotia.

The budget passed and now the bill has been referred to committee. The committee now has to deal with 24 clauses, along with a second piece of associated legislation, Bill C-48, the bill brought in to legitimize the buyout of the NDP.

Mr. Speaker, you and I have been around long enough to know that 25 pieces of legislation take time to go through any process, especially if the legislation is complex. We are within days of closing for the summer. If this bill is not passed through this facility, then it drags on into the fall. With other issues coming up heaven knows how long it would take and at $3 million a week we just cannot afford it.

Now that the budget has passed and now that the bill is in committee there is no reason at all why the government cannot ask committee, which is why we presented the motion, to have part 12 sent back here to be dealt with as a stand-alone bill so that the provinces of Newfoundland and Labrador and Nova Scotia can have their money flowing before any other complexities set in that would further drag out the approval of this legislation.

[The Acting Speaker (Mr. Marcel Proulx)]

It being 5:30 p.m., pursuant to order made Monday, May 16, 2005, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-43.

Call in the members.

(The House divided on the motion, which was agreed to on the following division:)

An Act To Authorize The Minister Of Finance To Make Certain Payments

[Shawn Murphy, Liberal, Parliamentary Secretary to the Minister of Fisheries and Oceans]

Mr. Speaker, Canadians are being treated to quite a spectacle here tonight. When Bill C-43 was introduced back in February, most Canadians embraced that budget, but the first Canadian to embrace it was the Leader of the Opposition.

For some reason, either he did a poll or he got a piece of evidence, he came back and told the House and all Canadians three things. First, he told them that regardless of how favourable Canadians thought the budget was, he would vote against the budget. The second thing he told the House was that regardless of what Canadians thought of the Bloc Québécois, he would enter into a deal with the Bloc Québécois. Third, he told the House and all Canadians that regardless of whether or not Canadians wanted an election, he would use every trick in the book to call an election.

Yesterday, the spectacle that Canadians were treated to was that now he would support Bill C-43. My question to the hon. member is why? Can he explain to Canadians why he changed his mind?

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, I am very pleased to debate Bill C-48. I believe that a member on the other side of the House once called it the people's budget. I am going to talk about the budget that hurts people. That is why Conservatives, including myself, will actually be opposing Bill C-48. It hurts seniors. It hurts farmers. It hurts auto workers. It hurts our children, because ruining our nation's finances will be stuck with our children. Runaway spending is not what this country needs.

Since betrayal is the story of the week on the Hill, I want to talk about some very important people, the people of Essex, people who were left out of the budget both by the Liberals and the NDP. One would think if the Prime Minister was desperate to maintain his slipping grip on power, a better deal might have been struck. He was ripe for the picking. Perhaps the deal was made in a sweaty back room in a hotel somewhere and the air was thick, I am not sure, but there are a lot of things missing from the budget, things that harm communities.

For example, there is no new border infrastructure money for the Windsor-Detroit corridor. After allocating maybe $150 million some two and a half years ago, there is about $50 million left in the fund.The very first project allocated under that spending was a very simple pedestrian overpass: ramp up, ramp up, go over the street, ramp down, ramp down. That was agreed to two and a half years ago. It has been a year and a half in design and redesign. Now it comes out with wind turbines and a little swamp bog on the front lawn of a high school that is off the side of that street. The saddest thing is that the simple project has not been built.

The thing that is important is putting pavement between Windsor and Detroit. That is going to cost some money. There is no money in the budget for that. There is no money in Bill C-48 for that. There are trucking companies and owner-operators in our communities whose livelihoods depend on getting this solved. It is clearly not a priority for the government. It is going to take more than $50 million to solve it.

In fact, a third crossing may cost some $300 million to $400 million. Hundreds of millions of dollars more will be required for roads that will connect to a third crossing from Highway 401. The Liberal solution is $50 million. That is shameful. It says that the Liberals did not make a very strong commitment to the region of Essex and Windsor. The NDP had the opportunity to get that with a Prime Minister eager to consolidate his slipping grip on power. There are two NDP members of Parliament in Windsor and they received nothing for the community. It is clear that both the NDP and the Liberals care nothing about Essex and Windsor.

Maybe judgment gets clouded when people cut back room deals, I do not know, but there is no help for farmers in Essex County in this budget.

I rose in the House in February and called on the government for assistance for grain and oilseed producers who are facing foreclosure on their farms. There are 1,200 grain and oilseed producers in Essex County alone. Many of them are facing foreclosure this spring. The CFIP cheques according to the government are rolling in, but for those who actually got some cheques, they were for $100 or $200. That is not enough to cover the cost of fuel to run the combine across the field let alone pay down a short term operating loan that the bank is calling in on them.

As a result, farmers are trading in their equity. One producer told me he has cashed in his RRSPs to hold off the bank, desperately hoping that he is going to make it through the spring. He is not going to make it through the spring. He will not make it through the summer. His farm is done. There is no help for farmers.

When the NDP members had the Prime Minister on the ropes and were going to cut a deal in the back room, they should have thought about Tommy Douglas and the CCF out on the Prairies who said they loved the farmers, but the NDP did nothing for our farmers. Bill C-43 fails our farmers. Bill C-48 fails our farmers as well. The New Democratic Party budget has left farmers to fend for themselves. How apropos for a week of betrayal on the Hill.

I do not know about the stale air in the back room where the leader was cutting a deal with the Prime Minister, but the NDP also forgot to help those Canadian seniors who collect U.S. social security. The New Democrat member for Windsor—Tecumseh and I petitioned the Liberal finance minister to include a rollback of an onerous 70% tax hike that was foisted on Canadian seniors collecting U.S. social security as the basis of their retirement income. We lobbied that this would be a line item in the Liberal budget.

As was expected, the Liberal government refused. It has been fighting against these Canadian seniors for eight long years. Many of the seniors have been dying off. The government has taken the wait and die attitude. That is how the government treats Canadian seniors.

Many of these seniors were forced from their homes. Do we want to talk about housing? They were forced from their homes. They were living in homes and now they cannot afford homes. All the affordable housing in the world will not compensate dead Canadians. These seniors were forced from their homes precisely at a time when the Prime Minister as Liberal finance minister was registering ships in Barbados in order to only pay 2% tax in Canada.

These seniors have been waiting eight years for justice. The New Democrat members from Windsor--Tecumseh and Windsor West have talked about this issue in the House, but when it came time to prop up the government with an NDP budget, they did nothing for these seniors. Let the record show that the New Democratic Party sold out Canadian seniors who collect U.S. social security.

I know that Buzz Hargrove was in the negotiations behind closed doors. Here is the real kicker on Bill C-48. I have heard a lot of talk here about auto policy and helping auto workers. Interestingly enough there is no help for auto workers and their families in this NDP budget.

I am Parliament's first auto worker ever elected and not from the New Democrats or the CCF. I spent three and a half years at the Pillette Road truck assembly plant before it closed and two and a half years at Windsor assembly living in constant anxiety about job security. The global market is even more fiercely competitive.

The Liberal government says that it does not care how many jobs go overseas, but we in the Conservative party actually do care. International competition from cheaper foreign labour markets and a higher Canadian dollar have put the squeeze on our automakers here in Canada.

The New Democratic Party has deep-sixed tax relief for large corporations like automakers. It would have increased their productivity and their competitiveness. It would have allowed automakers to not only fulfill their collective bargaining agreements but still turn a profit and do it here in Canada, preserving Canadian jobs and Canadian families and allowing them to survive. That would have been a win-win situation.

Coupled with its last supply day motion on an outrageous job killing mandatory fuel efficiency regulation, it is clear that the New Democratic Party wants to drive auto jobs out of Ontario and over to China. The 9% unemployment rate in the Essex-Windsor region is not good enough. The New Democrats want it to be 12% or 13% the way they are forcing auto jobs out of here.

The New Democratic Party did not get an auto policy. It left crushing high corporate taxes to kill auto jobs. The New Democratic budget did not fight for tax relief for hardworking Canadian auto families.

I recall for years the New Democrats bemoaning the Liberal government for doing nothing about reinvesting the $45 billion EI surplus in workers. When I look at Bill C-48, where is the $45 billion EI surplus reinvestment that the New Democrats thought was so important? Nowhere.

The 5,500 people I worked with on the line at DaimlerChrysler and their families deserve a better budget than this New Democratic budget. It is an NDP budget that hurts workers.

Finally, this NDP budget hurts families. Governments should be designing budgets to encourage strong families. On the child care initiative, $1 billion a year is what the government says and $10 billion a year is what the CAW says. Where is that going to come from? It is a hidden agenda of $9 billion per year when the government is promising $25 billion. That is going to mean program cutbacks or it is going to mean deficits and debt, a return to red ink. That hurts Canadian families.

This NDP budget is financially ruinous. It hurts communities in Windsor-Essex. It hurts farmers in Essex County. It hurts seniors, auto workers and families. As a result I cannot in good conscience support Bill C-48. I will oppose it tonight, proudly on behalf of those people in Essex who deserve a fair shake.

An Act to authorize the Minister of Finance to make Certain Payments

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, it would be better deployed if it did not go through a program started by the government where 50% or better is lost in administration. Farmers in Saskatchewan have waited over a year for a response. When they do get a response the government is asking for more information that is already there. That is the kind of program we have.

If we go back to the previous bill, Bill C-43, the finance minister himself said that the government could not take away the corporate tax cuts. He stated, “If the gentleman has a serious proposition, please bring it forward and I will give it the consideration it deserves”.

I point out, however, that changes in the corporate taxation are intended to assure jobs, jobs, jobs, and that they stay in Canada. The agreement that was made in the dead of night talks about both parties agreeing to take steps to eliminate those cuts but they are not in Bill C-48. That, plus the workers' protection fund of $100 million, is missing. What happened to it?

It is born in confusion, it is born in duplicity and it will die when the election takes place.

[Roy Cullen, Liberal, Etobicoke North, ON]

Mr. Speaker, it is a pity that my friend Bernie Collins will not be running because I am sure he would do very well against the member.

Knowing what is in budget and what went on with respect to Bill C-43 and Bill C-48, it is obvious that he has not studied the matter very carefully.

He raised a very serious issue having to do with farmers in Canada. I represent an urban riding but it is very important that we have a very strong agricultural sector in Canada. The one thing I find quite interesting is that the government has actually supported farmers in Canada with billions and billions of dollars. I am troubled by the fact that this does not seem to be having any impact.

I wonder if the member could comment on how that money could be better deployed.

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Speaker, discussions have taken place between all parties with respect to the present debate on Bill C-48 and I believe you would find consent for the following motion. I move:

That at the conclusion of the present debate on the second reading stage of Bill C-48, but no later than 5:30 p.m. this day, the motion from the member for Scarborough Centre concerning that the question be now put on second reading of Bill C-48 be deemed carried on division,

And that the main motion for second reading of Bill C-48 be deemed put, a recorded division requested and deferred to the end of government orders this day, just after the vote on Bill C-43.

Act to authorize the Minister of Finance to Make Certain Payments

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I am very pleased to have the opportunity to rise in the House today to speak in support of Bill C-48. It is a significant bill that vastly improves the budget, Bill C-43, which is also before the House.

I am very pleased to say that the bill was the result of participation, discussion and an agreement between the Liberals and the NDP. When we look at the aspects and the specifics of the bill, we can begin to see the significance of these investments. Over a two year period we are talking about a significant investment of $4.5 billion in areas that are really critical to the quality of life for people in the country, and I am proud of that.

Members of the NDP and our leader, the member for Toronto—Danforth, came to this minority Parliament with a real sense of priority about what we had to do and accomplish. We came here with a mission that our job was to fight for those things, the bread and butter issues like housing, help for students and education, help for our municipalities and to ensure that our environment would not destroyed for future generations. We came here with a strong sense of mission about what it was that we needed to accomplish.

I am proud that we saw the opportunity to significantly improve the budget, to make it more progressive and to zero in on the kinds of investments that were needed for Canadians. The fact that there is now an additional amount of $1.6 billion for affordable housing is very important. I know that the minister responsible for housing is probably very happy that the money is now in the budget. We have been saying for years that we want to see a national housing strategy, that we want to see the federal government get back into the housing program and that homelessness in the country is a national disaster and crisis. It is not something that people make on their own, it is because of a lack of supply of affordable housing.

We were very disappointed that there were no new provisions for affordable housing, other than a small amount that was earmarked within the aboriginal community, in Bill C-43. The NDP, in working through this agreement, was able to secure this amount of amount of money over two years to ensure that there would be a federal supply of housing dollars and to ensure that it would not be based wait on provincial matching funds. This is a very important aspect.

I know that there are activists across the country, from the National Housing and Homelessness Network, the Canadian Housing and Renewal Association and the Co-operative Housing Federation of Canada who see this measure as something very significant and important.

We have a need for social housing and for cooperative housing in the country. I just heard the member from the Bloc pan over Bill C-48. I want to tell the member that housing coalition in Quebec, FRAPRU, was very happy to see the amendment. It was happy to see Bill C-48 and the $1.6 billion for affordable housing. I know it has been making its point of view known to the Bloc members, that it is very disappointed that the Bloc will not support this housing investment.

When it comes to other areas, another significant investment is in post-secondary education. What is really important is that the investment of $1.5 billion will go to the students. That is very clear in the agreement and the bill. How many budgets have we seen where supposedly there was assistance provided for post-secondary education to improve accessibility, but in actual fact the debt load of students was increased? Again, this is a significant investment as a result of the bill. It will mean that money and funds actually will get to our students, students who have suffered under enormous debt loads. Why? Because of high tuition. Why? Because federal transfers have dried up for post-secondary education.

An important precedent has been set. A federal transfer has been dedicated to post-secondary education. We have not seen something like this for many years. That $1.5 billion is not contingent on provincial matching funds. It is real money and it will assist students in our country. We hope it will assist in reducing their tuition.

A lot of work needs to be done in implementing that proposal, and we recognize that. We have to start at the beginning. We have to start with step one, and this legislation provides these solid investments.

Other elements of the bill include $900 million for the environment, specifically a 1¢ increase over the next two years, and the gas tax transfer. The leader of the NDP, the member for Toronto--Danforth, has led the way both as president of the Federation of Canadian Municipalities and now as our leader. He has pushed solidly and has campaigned to have a significant investment for municipalities. He has been pushing the Prime Minister to deliver on his commitment on the gas tax for infrastructure and municipalities.

As part of the agreement and as part of the bill, it is important that there be an increase in the transfer of the gas tax. This will help our municipalities deal with their horrendous costs around public transit and infrastructure. Large urban centres as well as smaller communities in rural Canada are struggling with infrastructure costs and they cannot keep up with them. It is important for money to be in the bill that is directed toward helping those communities, whether they are small communities or large urban centres, to meet the fundamentals that move people around a city and that hold the infrastructure together in a smaller community.

These things are important for our environment. All of us are concerned about increasing smog days. We are concerned about the increasing rate of asthma in our children. We are concerned about increasing visits to hospitals because of asthma. These things are a direct result of climate change and of a lack of action to implement Kyoto. This is one specific measure in the bill that would deliver priority dollars where they need to go to help meet that commitment.

By no means is this the full picture. By no means is this a perfect budget. We would love to do more. Given the first budget and the addition of Bill C-48, we believe this is a much more progressive budget. It is based on fiscal responsibility. It is based on sound financial accounting. It will not result in a deficit. These things are affordable. They will be paid for through the contingency surplus. It is a very sound plan.

The last element of the bill is the $500 million increase to foreign aid. This is consistent with Canada's commitment to accelerate progress toward the international target of 0.07% of the gross national income being invested in overseas development. This is a special element of the bill. The three leaders of the opposition parties signed a joint letter to the Prime Minister urging the Government of Canada to live up to its international commitments and responsibilities to meet the target of 0.07% of GNI so Canada would be doing its best to meet its obligations in the international community.

Many time we have seen the commitments of the Liberal government fail. We have seen the government come up short on where it needs to be. This element of Bill C-48 is very important because it accelerates the progress that we are making to meet that goal.

I think Canadians believe we have an obligation and a responsibility to meet our commitments here at home. Our commitment is to ensure that people are not homeless on the street at night. Our commitment is to ensure that we take care of our environment. Our commitment is to ensure that we take care of our students. I think people equally believe that we have to meet our international commitments and the agreement does that.

I am very proud to stand here today to speak in favour of this bill and to give credit to the leader of our party for taking the initiative, for coming here to this place and working hard, for getting the job done for Canadians and for delivering on the commitments he made.

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, it is pitiful to hear such arrogance and disregard for our party, which is a democratic expression of a significant part of the population. The latest polls show that roughly 54% of Quebeckers would vote for the Bloc Québécois.

Does wanting to correct the fiscal imbalance prove we are against Canada? If so, does that mean Canada only functions as long as there is a fiscal imbalance? Does this also mean that all the other provinces, like Quebec, have to experience financial difficulties in order for Canada to function?

Is an accessible employment insurance system that provides adequate coverage a bad thing for Canada? If so, does that mean that if the people who receive employment insurance benefits in British Columbia, Ontario and the Atlantic provinces received an adequate salary replacement rate, this would be detrimental to Canada?

Is a plan with teeth for the Kyoto protocol that is fair to Quebec a threat to Canada?

If that is what it means to live in Canada, then it is time for us to get out.

What I was saying concerned Bill C-43. Now, what is the government doing with C-48. It contains no stable funding for health, education or the fight against poverty. In addition there is nothing for employment insurance, not even a reference. In the case of the Kyoto protocol, this poor plan favoured by the west and the major oil companies will cost Quebec more.

We therefore oppose C-43 and C-48. If Quebec were a sovereign country, this sort of aberration would not need to be debated. However, while we are here, we will defend not only the interests of Quebec and Quebeckers, but the interests of Canadian workers as well. They oppose the fiscal imbalance. They support a real employment insurance system and they want the Kyoto protocol to work.

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, it is a great pleasure for me to take part in the debate on Bill C-48, which sets out the agreement between the Liberal Party of Canada and the NDP.

This is an opportunity for me to condemn a two-part hoax. First, the leader of the NDP thinks he won points for the agreement set out in this bill. Second, the Liberal Party of Canada, through the current Prime Minister and with the help of the leader of the NDP, is inferring that this bill improves the budget, known as Bill C-43, which was totally unacceptable to the NDP and to us when we first debated and voted on it. We voted against it, as everyone knows.

Unfortunately for the Liberals, only the NDP truly believes that this agreement will do something for Canadians and Quebeckers. I saw the embarrassment of some NDP candidates in Quebec as result of this agreement. They had a great deal of difficulty understanding why, in exchange for so little, the leader of the NDP agreed to support a government that, clearly, according to witness after witness before the Gomery commission, appears to be led by a corrupt party.

Obviously the leader of the NDP and his MPs will say that they obtained $4.6 billion for social housing and the environment, among other things. It is all just smoke and mirrors. I will have the opportunity to easily demonstrate this.

I want to come back to the fact that the Liberal Party of Canada and the federal Liberal government specialize in this kind of hoax. Its other specialty, obviously, is believing that taxpayers' money belongs to both the federal government and the Liberal Party of Canada.

That said, I want to come back to this series of hoaxes. Unfortunately, I have just a few minutes, so I will not be able to name them all.

The 25th anniversary of the 1980 Quebec referendum on sovereignty- association is approaching. Pierre Elliott Trudeau, the Liberal Party leader who campaigned for the no side said, in the Paul Sauvé Arena “—we are willing to lay our seats in the House on the line—”.

With what result? A unilateral constitutional agreement that Quebec is not party to and has never signed, despite the fact that both the Liberal Party of Quebec and the Parti Québécois have formed the Quebec government. It caused a constitutional crisis that has yet to be resolved.

In 1995, in response to a question on sovereignty and a partnership with Canada put to him while he was campaigning for the no camp, Jean Chrétien declared his love for us, “We love you, stay with us”. I do not think he convinced very many people. He was nonetheless confronted with a very close vote on referendum night.

What came out of this great declaration of love by Jean Chrétien and the rest of Canada? The clarity legislation. While this does not make any difference, attempts have been made and continue to be made to convince Quebeckers that they are not the masters of their own destiny. That is another federal Liberal hoax.

During the election campaigns of 1997, 2000 and 2003, we were promised a massive overhaul of the EI system. Each time, the elephant gave birth to a mouse. I clearly recall that, in 2000, the member for Bourassa travelled to Jonquière, where the steelworkers were furious. Before this audience, the Liberals made the promise to carry out this reform if they voted for them. The steelworkers did not believe a word they said; they are clever, they realized it was a hoax. As it turns out, the Liberals did not do a thing.

They did the same thing in 2003. They carried out a mini-reform, adding $300 million to the program, when the surplus in the employment insurance fund was $46 billion. That money was diverted to pay back the federal government's debt. In fact, my colleague from Chambly—Borduas questioned the minister on that earlier. The minister recognized that this was a very complex issue. Why would it be so complex? The Liberals, who have been promising reforms since 1997, should know how long it takes to examine an issue. Committees have made recommendation upon recommendation. One more hoax.

I am sorry to say that the Liberal Party of Canada attracts primarily billionaires, be it as leader or as Minister of Human Resources and Skills Development. I hope that, unlike the Prime Minister, the minister is not building her fortune on tax havens.

I can guarantee that I will conduct an inquiry into this matter.

During the last election campaign, at the leadership debate in French, the Prime Minister made a public promise to overhaul EI to make it accessible to the unemployed by reducing the number of qualifying hours. Nothing happened.

I could mention the foundations used to hide the surpluses. I could mention the equalization program, which was unilaterally amended, amendments that have cost Quebec dearly. I could mention the fiscal imbalance that only the federal Liberals, in Canada and Quebec, deny. I could mention supply management, which the government boasts about defending, while it lets in modified milk products from all over the world, thereby jeopardizing this supply management system.

I could also mention Kyoto. Major international commitments are being made, but there is no action plan to ensure that we will achieve the objectives we have committed to. What is more, this is going to hurt Quebec.

Today, we heard another hoax. Yesterday, it was announced that a $750,000 trust fund had been set up. On the one hand, we have learned today that this trust does exist, but that it does not contain $750,000. On the other hand, this amount represents a very small percentage of the dirty money taken by the Liberal Party of Canada. This trust fund is just an empty piggy bank. It is a small empty pig created, once again, to try to deceive Quebeckers and Canadians.

Today, there was yet another hoax in the shape of Bill C-48. It implies that the government is going to improve Bill C-43, the Budget Implementation Act, 2005, which was tabled by the Minister of Finance in February. The leader of the NDP must have been surprised when he realized that his agreement with the Prime Minister and leader of the Liberal Party was not attached in amendment to the budget, but was instead a separate piece of legislation marked Bill C-48. This means he will have to vote in favour of Bill C-43, although he voted against it at first reading.

I must say, moreover, that the only party that has been consistent since the start of this budget debate is the Bloc Québécois. Quebeckers know that. We were opposed to the budget from the start, we still are, and we will be tomorrow. The little amendments brought in with Bill C-48 will not convince us otherwise.

In fact, when one reads the bill, one can see as I have said that it is nothing but smoke and mirrors. I will therefore read an excerpt from Bill C-48.

Subject to subsection (3),...in respect of the fiscal year 2005-2006—

This paragraph says that all payments made by the Minister of Finance may not exceed $4.5 billion over two years. So:

subject to subsection (3), ... in respect of the fiscal year 2005-2006—

The same thing for 2006-07.

the Minister of Finance may... make payments out of the Consolidated Revenue Fund up to the amount that is the difference between the amount that would, but for those payments, be the annual surplus...and $2 billion.

This means that above $2 billion, if there is a surplus, the Minister of Finance will be authorized to use this surplus to comply with the agreement with the NDP. Well, last February, the Minister of Finance was telling us that there was no leeway and he had gone as far as he could go. Suddenly, he finds money. Over the last few weeks, he has discovered $22 billion for promises. This is much more, by the way, than what the leader of the NDP obtained. And why $22 billion? Because the government is under pressure to have an election. I must say that this has paid off much better for Canadians and Quebeckers. Half of this amount is going to Ontario. These are not election promises? It is totally unacceptable.

Earlier I described a bit the federal Liberals' propensity for hoaxes. The only thing that the government can do therefore—and knowing this, it will surely do it—is spend money all over so that there will not be a surplus if it does not want to comply with its agreement. And that will be completely consistent with the bill.

The leader of the NDP failed, therefore, to obtain any guarantees at all regarding this $4.5 billion. It also states in the bill that the maximum is $4.5 billion. For each point, it is the same thing.

Bill C-48 does not guarantee any improvements to social housing, absolutely no correction of the fiscal imbalance, and no improvements insofar as the Kyoto protocol is concerned. In view of its mandate to advance the interests of Quebec, the Bloc Québécois therefore has no other choice, in all logic, than to vote against Bill C-48, as it will also vote against Bill C-43. Thus it will demonstrate both its disagreement with and its lack of confidence in this government, which does not deserve to govern the country any longer.

[Bryon Wilfert, Liberal, Richmond Hill, ON]

Mr. Speaker, let me make it very clear. The government supports and continues to support tax reductions. We had the largest personal income tax cuts in Canadian history of $100 billion over five years. I heard a member over there earlier talk about 10 years, but it is five years.

Bill C-43 includes tax cuts for small and medium business. If the member's party votes against Bill C-48, then those reductions will not be there. On the corporate side, the member well knows that he will have an opportunity after this evening to continue to support the government when legislation is introduced on the corporate tax side.

If the member wants to support tax cuts generally, he has to vote for both Bill C-43 and Bill C-48. If the opportunity arises, he will be able to deal with the corporate issue.

[Bryon Wilfert, Liberal, Richmond Hill, ON]

Mr. Speaker, the party across the way originally supported the budget. I assume at that time the hon. member supported more money for the environment, which is in Bill C-43 and Bill C-48. I assume at the time the member across the way supported more money for affordable housing. I assume he supported assistance for Canadians in terms of affordable housing, which was very important. We announced that. It is an enhancement within a strong fiscal framework. I am surprised that the member's party would say that it would support Bill C-43 tonight, but not to enhancing it, making something even better.

We said from the beginning in the House that the government was prepared to work with other parties to ensure that we had good government for Canadians. We worked with the NDP and now have a budget which Canadians support even more so because it is fiscally responsible and is a good investment.

If the hon. member is going to stand up tonight and say that he supports the environment so he will vote for Bill C-43, then I applaud him. However I presume the member is then going to stand up on Bill C-48 and say that he cannot support it because it has another $900 million for public transit, for wind power, et cetera. The member cannot have it both ways. He cannot support one part of the budget but not the other part, because obviously the government would fall.

I hope the member will reflect and realize that if he really supports these good investments, he will have to support them across the board. We are committed both in terms of small and medium tax cuts, which is in Bill C-43. The minister has made it very clear in the legislation dealing with corporate taxes.

[Randy Kamp, Conservative, Dewdney—Alouette, BC]

Mr. Speaker, the hon. member has me a bit confused and I hope he can help me out.

He has gone on about how important the things in Bill C-48 are, but they did not show up in Bill C-43 when the government had the first crack at it. This really makes me question how sincere the government is in these so-called priorities. It looks as if the government is buying the votes of the NDP.

We all saw the agreement on TV. It looked like they borrowed a Sharpie from somebody, found a blank page and scribbled out these things on a napkin. These do not look like real priorities to me. I would like to see the plans for them. If they are so important, why were they not in the original budget that the Liberals thought was so good that they said it could not be cherry-picked?

I am confused about another thing too. The corporate tax cuts are not reflected in Bill C-48 as far as I can tell from my reading of the legislation. My recollection is that this agreement between the Liberals and the NDP committed to removing certain corporate tax cuts. I am not sure if this is in Bill C-48 or whether it is going to be done separately or is the government pulling the wool over the NDP's eyes? I would like some clarification on that too.

[Réal Lapierre, Bloc, Lévis—Bellechasse, QC]

Mr. Speaker, Bill C-48 is in fact nothing more than a manifestation of the NDP's grievances with the federal budget, on the pretext, among other things, that it did not consider the social measures it contains to be equal to Canadians' needs. It then went on to hold out the possibility of an alliance with the Bloc Québécois and the Conservative Party if the budget were not reworked to their satisfaction.

Given that ultimatum, and the precarious status of the Liberal Party, a scenario was concocted in order to satisfy the NDP's demands by enhancing the scope of Bill C-43. This agreement in principle translates into reinvestments in the order of a total $4.5 billion over two years for social housing, education, the environment, international aid and protection of seniors' pensions. As well, the Liberals would temporarily step back from corporate tax breaks.

Now there is a fine wish list.

I have my doubts. Unfortunately, I do not believe it. It is a fact that it would be a very good thing to improve the sectors I have referred to. Everything we can get out of the government, we will take. But wait.

Why, assuming that they were sincere, did they not just amend the budget implementation bill, namely Bill C-43? Why have another bill? How can they commit themselves to two different things at the same time? Have my hon. friends developed the gift of ubiquity?

First, specific measures are established through the passage of Bill C-43, and corporations enjoy a substantial tax cut. Then a contradictory measure is proposed that can only sow dissatisfaction in the ranks of manufacturers—dissatisfaction that can lead, as we well know, to the withdrawal of funding from the party in power. That is the risk that they do not want to run. Bill C-48 does not meet the NDP's demand that the tax cuts for business be cancelled. Bill C-48 is conditional on the government running surpluses. Conditional—therefore without any real significance.

Even the leader of the NDP acknowledged in this House that the simple act of not making those tax cuts could create a surplus and therefore prevent it all from happening.

They try to take us to 2008 to justify keeping this measure in the original budget. The Minister of Finance himself offered this interpretation to the leader of the New Democratic Party in answer to a question in this House. What lovely evasion! What sleight of hand!

The government does not want any amendments to its budget because that would confirm a measure that is unpopular with an elite that has a long reach and is very powerful.

Let us look at other provisions in the extra budget. There is an additional $900 million for the environment. That could be interesting. Unfortunately, this melody is playing in a minor mode. Despite the importance of the sectors that were identified, namely public transit and energy efficiency, this additional money will not produce convincing results. The gist of it is bad.

The famous Project Green, announced last April 13, is like Swiss cheese. The polluter—the oil and gas industry—is paid through subsidies, while the government still refuses to encourage people to use public transit by making the cost of their passes tax deductible.

And yet these people are doing something concrete for the environment. The people responsible for half the greenhouse gas emissions should logically be forced to come up with an effort proportional to the damage that they do. Instead, the financial burden is shifted to the taxpayer.

If we extrapolate, the cost of a bus pass has just trebled.

And on top of that, this budget provision on the environment infringes on areas under the jurisdiction of the provinces and Quebec, such as public transit. Whatever works.

Quebec's greenhouse gas emission profile differs significantly from that of the other provinces. Why would it be penalized for being cleaner? It should instead be congratulated and encouraged and get its fair share of the tax base provided for implementing the Kyoto accord in order to improve its performance.

Under the circumstances, Quebec should have the funds to enable it to choose what best suits its plans for the future. The approach should be territorial, as the Bloc has already suggested in this House. Otherwise, the government should grant full financial compensation.

Holes in cheese give it some style, but do not improve its flavour. In other words, I prefer Swiss cheese to Project Green. We can take pleasure in the fact that some low income earners will perhaps be able to improve the energy capacity of their homes Maybe, we will see.

In the area of social housing, the government is in a sorry state. It consistently remains far below the level of the needs and therefore the expectations of social groups. While the official budget made no provision in this vital area, the government is now offering $1.6 billion for two years. Investment would certainly be welcome.

The Bloc, however, is calling for a progressive investment over three years, in order to reach an acceptable peak of nearly $2 billion a year. The demand is realistic and necessary. The urgency of the situation has been amply demonstrated by the growth in need since this government took office.

The amounts conceded to the NDP must not be the subject of electoral blackmail, but rather serve the most disadvantaged.

Housing responsibilities and the corresponding budgets must be sent to Quebec as quickly as possible.

If we look at the proposal on education and post-secondary education, we can see yet again that it is open to blackmail. It is all the more unacceptable because we, along with the Government of Quebec, are calling for federal funding for education to be 25% of spending. The political agreement with the NDP is unsatisfactory, because the $188 million Quebec might receive is paltry compared with the $12.2 it spends.

The federal government's commitment to international assistance remains clearly inadequate. While assistance in any amount is welcome, an additional $500 million will not change the fate of the planet. We absolutely need a long term plan to achieve the international target of 0.7% of GDP by 2015. It is outrageous for a rich country like Canada to claim not to be able to achieve the minimum before 2033.

Obviously, it cannot be any other way with the 8% annual increase proposed by the government. That is a disgrace. We are proposing an increase of 12% per year for three years and 15% per year after that, up to 2015. If the NDP is prepared to settle for $500 million, so be it, but I am not.

So, what does Bill C-48 do for my own riding?

Cull producers will continue to suffer because of the underfunding with respect to the mad cow issue. Only fair compensation could have made things better for them. The problem is still there for beef producers.

Would there be any possibility of providing recovery assistance to our shipyard, which, hon. members should know, is a major economic engine for my riding? There is nothing in the budget or Bill C-48. Canada would have much to gain, however, from a real shipbuilding policy.

Was the Summer Career Placement program in my riding designed on the basis of real needs, and is the funding allocated adequate? Certainly not, since an indefensible cut was made to the program.

Is there anything for the tourism and leisure industry, which is a path for the future? No.

Has the funding earmarked for the community sector, which is essential in our area like in any other, been increased? Again, no.

So, to Bill C-48 I humbly say, no, thank you.

Budget Implementation Act, 2005

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Speaker, discussions have also taken place regarding Bill C-43 and I believe you would find unanimous consent for the following order. I move:

That a recorded division be deemed requested on the main motion for second reading of Bill C-43 and deferred to later this day at the end of government orders.