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.

Extension of Sitting Period

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, I rise on a point of order. I would ask that you ask the member to be relevant in his speeches. I understand the Liberals have not been speaking on this subject all afternoon. Probably they are unaware that we are dealing with Motion No. 17, not with Bill C-43 which is already--

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

Mr. Speaker, I do not know where that member has been. If he had been listening, a number of suggestions have come from this party that make good sense.

First, a good fiscal and prudent government has a plan, knows where it is going and is not throwing money around recklessly. An hon. member from this party suggested yesterday that if they throw more money at it, they have a bigger heart than somebody else but they do not care where it goes.

Let me ask one question. The farmers in Saskatchewan are going through one of the greatest crises. Despite what the government has failed to do, they have done reasonably well. They are staying alive by working two jobs. The wife works, the husband works and the children work. That is the only way they can survive because the government has neglected them.

Our party has said we would put together a program that would look after our farmers. Where were farmers in Bill C-43? There was hardly a passing mention. When they were in a crisis with the BSE and the border was closed, they were looking for some direction from the government. What did the government do? It hoped against hope that the border would open, somehow magically on its own, without any steps on its part.

The government cooked up this deal with the NDP, for one purpose and one purpose only, and that was to stay in power. There is no foresight or vision in Bill C-48. The Liberals asked the NDP members what it would take to buy their votes. The cost per vote was $250 million. Is that called vision? Is that called policy? No. Where was the agricultural crisis when that deal was being made? Where does the NDP stand with respect to the farmers of Saskatchewan, Alberta and Manitoba? Are their concerns not important?

The government is not governed by philosophy or principle. It is governed by what it takes to stay in power, to cling to power, and that is the end. Whatever the means might be, whatever the money may be, it will use it. Those who do it in the cover of darkness will be charged criminally. Here, what the government is doing is in the openness of day, in the presence of the House, using great sums of money to stay in power.

The farmers of Saskatchewan could have done better. There were 46 auction sales in March of this year in my constituency. Farmers are going out of business. A fifth generation farmer who has five daughters has sold his farm. He has not passed it on to his children because of the losses he suffered in his cattle business over the last two years, $100,000 a year.

The government does not have the fortitude to stand up for them, to say that it will be with the farmers because this crisis is not of their own doing. This crisis is of a doing that is bigger than Saskatchewan and bigger than Manitoba. Where was the government? It was cooking up a deal with the NDP to preserve its own hide while the farmers of Saskatchewan were working 12 hours a day. Everyone in the family had to work in order to survive.

We would do things differently. We would ensure they were protected. They would be backstopped. In fact, when the BSE crisis was going on, where was the government? It should have been making some motions before the United States department of agriculture, saying scientifically that there was no reason for the border to be closed. Why was the government not presenting that evidence to the USDA? Why did the minister not insist that the USDA put those reasons in its decision? Because of the lack of those reasons and due diligence of the government, the judge in Montana was able to make the decision he did. There was nothing to prevent an injunction from being granted.

That group was playing politics when it should have been doing due diligence and doing its homework to ensure the border was open. If it failed to do that, it should have put some money into the secondary industry, in slaughterhouses and in marketing and processing. We would do that and we would see that it was done. Two years have passed. I would ask the member to come to my constituency to see whether anything is going forward, whether any money has been placed in it. There is nothing. That would change under our party.

We talk about housing and homelessness. A report states that there are more homeless today on the streets than there were when that government took office. It spent $1 billion and it did not build one affordable housing unit with that $1 billion. According to the minister, it went to protective care, nothing on which one could put their finger. How many more houses are there since it started?

We would take some dollars and put them into something we could see, something that is not wasteful. What money it has put in is $60,000 to $80,000 a unit, when it should be far less.

When the minister was asked for instance about the housing budget, he was prepared to spend the $2.6 billion without regard to the fact that this was a provincial responsibility. Whether the provinces went ahead or not, he was going to do it anyway. He had not spent yet the $700 million that was in the coffers from previous budgets. We think at least he would have that money properly spent before he would be ready to spend this. Anybody can spend money.

If we give someone $2.5 billion and tell them to spend it, they will. Will they achieve a proper balance? Will they achieve what is necessary with those funds? That is another question.

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

Mr. Speaker, as we look at the Standing Orders presently, there is no question that the calendar of this House is a fairly significant event that is agreed to, according to the Standing Orders, by the House leaders.

According to the Standing Orders, during the adjourned period when members of Parliament are in their constituencies, the House does not get called back unless there is need for royal assent on something that is of some urgency. If that is the case, the House can be called back for a short period.

The Standing Order 28(4) reads:

The House shall meet at the specified time for those purposes only; and immediately thereafter the Speaker shall adjourn the House to the time to which it had formerly been adjourned.

When we have a calendar it ought to be respected and, if it needs to be interrupted, then after the particular business is done the House needs to go back into adjournment. There needs to be a reason for the House to reconvene that is of substance.

This House could probably be guided by Standing Order 28(3) which talks about the Speaker utilizing his or her discretion to recall the House. It states:

Whenever the House stands adjourned, if the Speaker is satisfied, after consultation with the Government, that the public interest requires that the House should meet at an earlier time, the Speaker may give notice that being so satisfied the House shall meet....

Therefore there needs to be some evidence that would satisfy the Speaker. There has to be some public interest that requires an interruption of the House calendar.

I would think this House would at least have to satisfy those same principles before this House could put forward a motion that would require this House to extend itself for a further period. What is the public interest?

We have heard discussion about Bill C-48. It does not get implemented until next year. In fact, when we look at the budget implementation portion of it, it talks about the moneys actually being requisitioned or looked at in the next year. What is the urgency? This is not in the public interest. This could be debated in the fall sitting. In fact one could argue that perhaps there is something to Bill C-43 passing.

Bill C-43 has cleared this particular House and is now in the Senate chamber for approval. We have a senator saying that the Conservative senators were prepared to expedite the passage of Bill C-43, the budget legislation bill, which includes the Atlantic accord, but that the Liberal senators were refusing to pass it. He also said that they agreed to waive certain procedural steps in order to speed the passage of Bill C-43.

He goes on to say:

Two other government bills are receiving clause-by-clause consideration immediately following testimony by witnesses in Senate Committees today. The Liberal government will not permit the same procedure to be followed for Bill C-43, thus putting the bill at risk should Bill C-48, the NDP budget bill, be defeated in the House of Commons in the next few days.

We just received notice that those two bills are here for royal assent.

How is it that the Liberal government, on one hand, says that it wants the bill to go forward so the funds can start rolling on that particular bill, but on the other hand, refuses to have it passed expeditiously, as it could have? I think it is playing games with this House.

Let us look at the marriage bill, Bill C-38. Is there a public interest to have it passed or at least a public interest sufficient to call the House back to order when it ought to be adjourned? What is the public interest in that bill? In fact, a large percentage of the Canadian public do not want that bill to pass. Therefore it is definitely not in the public interest to call Parliament back for that purpose and that purpose alone.

What has the government done? It has attempted to lump and link Bill C-48 with Bill C-38, the marriage bill, in an attempt to justify, on some kind of national basis, that it is in the public interest to reconvene the House. However this is not in the public interest. It is all subterfuge. It is all playing with the rules to get their ends.

The House leader stated earlier in the press that he was prepared to not have Bill C-38 pass if Bill C-48 passed, but then he changed his mind, dug in his heels and decided to connect the two and call Parliament back for that purpose.

What is the rush? Bill C-38 is fundamentally changing the definition of marriage. It is fundamentally changing society as we know it. It deserves the time that is needed to discuss it and the public need an opportunity to participate. What we had at report stage was a sham.

During question period today the member for London—Fanshawe asked whether limiting the witnesses at the committee was really doing the job it ought to be doing. Is it appropriate to give witnesses 24 hours or 48 hours notice to appear? Is changing members of the committee appropriate? Is setting up a separate committee to ram through the committee hearings appropriate? Those hearings should have been the widest possible hearings across the country in every city with every member of the public having an opportunity to address the government before that bill completed report stage.

However the Liberals are ramming it through, despite the concerns of Canadians, despite public interest and despite our nation's interest, because they want to. They have confused national agenda and public interest with their own interest. They have confused the House of Commons calendar, which should not be interfered with easily, with their own ends and their own desires.

I think it is appalling. It is appalling to democracy and it is appalling to this institution for the government to go further and put a motion in the House that would limit debate on whether the hours and sittings of this House should be extended. How can it be in this free and democratic country that we cannot have every member in the House speak to whether the preconditions exist for the House to be extended?

We have to justify the pre-conditions of the House. That is why the Standing Order is there. That is why there are safeguards. We cannot, just on a notion, say that we will pass a motion that will change the Standing Orders and call the House back because we want to. There must be some basis for that and that basis is the public interest, because that is the basis, Mr. Speaker, that you might have to contend with.

The Liberals chose not to allow every member in the House to speak. Since when does a government decide that closure is the way to go on an issue so important as whether or not this House should sit in the summer to deal with the marriage bill, Bill C-38.

This is not a national crisis. This is not a national public interest that requires us to do it. The Prime Minister and the government confuse their own interests with the interests of the nation.

When the Prime Minister appeared on television I thought he was going to speak to something that was of national interest or of some national crisis, or even perhaps proroguing Parliament or calling an election.

What was the purpose of that particular television address? At great expense to this nation and every taxpayer of Canada, the purpose of that television appearance was to protect the hide of the Prime Minister and his government because they were on the ropes of losing in a possible election. He used the media and the resources of government to bolster public opinion and that is shameful.

Even the NDP leader acknowledged that. In question period he said, “First, let me add my voice to those who are concerned about the televised address this evening. This is a Liberal crisis; it is definitely not a national crisis.” The government is confusing its own interests with those of the nation.

In the next question, the hon. leader went fishing to see if he could change the government's budget. He said, “Putting aside the issue of corruption, let me see if I can be bought”. How could he do that? He was speaking about the sponsorship scandal and the things that have happened. People were paid for doing little or nothing with Canadian taxpayer dollars for which many people worked very hard to put in the coffers of the government. Some people work 12 hours a day, six days a week, only to lose half of their money to the government to spend on projects and programs.

However we find the government using and abusing those funds to pay ad agencies for little or no work and then having some of that money filter back to the party to fund an election. It was buying votes at $250 million per member to get another party's support to cling to power and giving people positions to cross the floor. Those are the kinds of things that should not happen in the House but it gets worse than that.

The House raised a motion of confidence, if not directly, certainly indirectly. At that point, constitutionally, the Prime Minister and his government had an obligation to Canadians and to the House to raise the issue of confidence themselves and they did not have confidence. They did not have confidence for a week.

The House should have been closed shut. There should not have been one order of business happening until that issue of confidence was settled. For that week we were without a government because it should not have been exercising the powers of government, the levers of government, the position of government to advance its own interests.

However all the while we had ministers and the Prime Minister travelling across Canada signing deals, committing money, spending money, campaigning at public expense and doing the kinds of things that would be shameful in a third world country that is run by a dictatorship.

We should have closed the House down and went to the wall to prevent that from happening because it was an injustice. It was illegitimately trying to legitimize government. It waited until it had the numbers and then it put forward an issue of confidence, and that is wrong.

What is wrong with the government is that it confuses its own interests with the interests of Canada.

We expect far better. We expect to have a government with vision. We expect to have a government that is prepared to take a loss, prepared to sacrifice on behalf of the country and one that puts the country's interest above its own, above its own greed and its own temptations, not a government that tries to shove a bill through the House when the public of Canada does not want it.

We need a government with backbone and a government with the courage to lose if it has to. An election should have been called and that confidence vote should have been respected. The public would have made a decision on Bill C-38.

Now the Liberals are trying to ram it through. It would not surprise me if they would put closure on Bill C-38 and Bill C-48 to get their will, despite the will of the people of Canada. That is wrong and the people of Canada will pass judgment. Believe me, it will not end in this session and it will not end in the summer.

I am prepared to stay here in July, all of August and into September to preserve the democratic right of the people of the country to express their views through members of Parliament on Bill C-38 because what is happening here is wrong.

One could ask whether I was looking at this objectively. I would like to make reference to an article in the Toronto Sun . Chantal Hébert said, “One thing we have learned from the tape affair is that precious little stands between the Prime Minister and a repeat of the sponsorship scandal. It is a culture that's wrong. It is what permeates government that's wrong. It is the thing that says the end justifies the means. It doesn't matter how we get there, it just matters that we get there. Our objective is to stay in power and we'll do whatever we have to, twist and bend every rule we have to stay in power”.

Supply day motions happen once a week every week and it was during that time that a confidence motion could have been put by any one of the parties, including our party. The Liberals took those supply days away and the ability to make a confidence motion until the end of May.

Why was that? To me, that was something I expected to happen every week. It was tradition. It was something the House had as a constitutional kind of arrangement that happened week after week. The Liberals took it away for the sole purpose of preventing confidence because they knew they would lose. They then put them at the end of May. Why? So any election would take place in the middle of summer.

They wanted to have the opportunity to continue to buy, pay, promise, and get to the position where they could win and then call it. There is something fundamentally wrong with that. There is something very wrong with that. That is why the country is going astray. It needs some direction. It needs some commitment. It needs someone with some backbone who says there is a right, there is a wrong, that this is right and we will do it, regardless of whether it costs us or not, and not what we see here.

[Joy Smith, Conservative, Kildonan—St. Paul, MB]

As the governing body. The NDP is not the governing body. Nineteen members do not constitute a majority government. On this side, we are a very formidable opposition, but we are not in governance either.

It is the responsibility of the Liberal government at this point in time to make the budget, because the people of Canada elected the Liberals to it. They did not elect a Liberal-NDP government to rule this country.

Having said that, this is what we are talking about when we are talking about democracy. People on this side of the House had a lot of input into Bill C-43. With regard to Bill C-48, no one on this side of the House was consulted in any way, shape or form. Bill C-48 was simply the result of two parties getting together to shore up a corrupt government.

The member opposite in my view is a woman of integrity. I have personally looked up to her. With all due respect, how can the NDP shore up the corrupt Liberal government? How can it ignore the democratic process? Governments in power are supposed--

[Joy Smith, Conservative, Kildonan—St. Paul, MB]

Mr. Speaker, I have a great deal of respect for the member opposite. She is from my city. I was a little reluctant to get up and ask a question, but I too can add, very well actually.

Bill C-43 was put together under the normal budget process, where one looks at the initiatives one wants to promote, collaborates with people in the field of expertise, and then looks at what can be done. It takes a certain length of time to accomplish this process. Bill C-48 on the other hand was much different. It was constructed in a hotel room in Toronto in a very short period of time. It was constructed with the NDP. The NDP, quite frankly, was not elected to this House of Commons. There are 19 members here--

[Judy Wasylycia-Leis, NDP, Winnipeg North, MB]

Mr. Speaker, I will be splitting my time with the member for Hamilton Centre.

I am happy to speak to this motion to extend the sitting in order for Parliament to pass legislation that has been held up and tied up in knots because of the antics, games and aggressive obstructionist tactics of the Conservatives.

It is unfortunate that we are in this position. It is unfortunate that we have to resort to this motion to get to this point, but that is exactly what is happening today.

I want to set the record straight in terms of what the member who just spoke from the Conservative side said about the bill and about the money and when it will be spent. The Conservatives, in a very crafty way, are deliberately distorting the purpose of the bill and the mechanisms to implement these budget provisions.

I have listened day in and day out to the Conservatives suggesting that this money will not be spent for another year or two, the budget will not come into effect right away, this budget is so big, and there are no details. I want to say hogwash and rubbish to each and every one of those claims.

I will start with the most obnoxious of those claims contending that the money will not flow for another year and therefore, what is the hurry? The members are wrong. The budget bill states very clearly that this money, $4.6 billion divided over two fiscal years, the one we are in and the next one, will flow immediately upon the Minister of Finance determining the exact unanticipated surplus.

We know from past experience and from statements by the government that by early September the exact amount of unanticipated surplus will be known. It is not a question of waiting for another year to know that. The Minister of Finance will know just as we knew in the House when the government actually miscalculated and lowballed its surplus and the Conservatives made a big deal about the numbers.

The government said it was $1.9 billion and we found out it was $9.1 billion. Who screamed the loudest? The Conservatives because they said that was mischievous, dishonest and that the government should be straightforward and honest about the money and about what it knows.

This time that is exactly what is happening only we were out of the gate long before the Conservatives even woke up to this possibility. We negotiated a deal based on the fact that we knew the surplus was going to come in at a much higher rate than expected and listed in the fiscal framework of budget 2005.

I will put it in very clear terms. We are now talking about an anticipated surplus in each of the next three years to be $8 billion. In this budget proposal we have recommended that the government set aside $2 billion for the surplus contingency that would then flow and be put against the debt. That leaves $6 billion.

We are simply saying that $2.3 billion of that should be spent to meet some basic needs of Canadians, to meet the needs of people who want a decent roof over their head, who want to live in safe lodging, for students who want to go to university, for people who want to breath clean air, for people who want to use public transit, and for good hearted Canadians who want to share a bit of the wealth of this nation with people who are living in poverty around the world.

That is what we are doing. We are setting $2.3 billion aside for each of the next two years, leaving a huge surplus, more than the $2 billion that we asked for. There will be more than was ever expected and anticipated.

The Conservatives should get it through their heads that the money ought to be spent to meet the needs of Canadians, create jobs and grow the economy. They should not be sitting here kvetching, yapping and griping over the fact that the New Democrats had some initiative, had some chutzpah, and had the gall to go to the Liberals and say, “Let's make a deal”. Yes, it was a deal. It was a good deal for Canadians.

I suggest that the Conservatives stop the nonsense. We are dealing with a budget bill that is sound, fiscally responsible, based on good economics and not the wacky mathematics of the Conservatives. It meets the needs of Canadians. It is based on what Canadians from one end of this country to the other have told us through the prebudget consultations.

People have said to us, “We deserve a part of the surplus which came from us in the first place. It came from us because of the cutbacks that occurred over the years when the Liberal government started engineering its social cuts in 1993. It is money owed to us because all that happened under the Liberal government is that corporations and the wealthy got the tax breaks and we did not”.

Canadians are saying it is their turn. We in the New Democratic Party have said yes, it is Canadians' turn. We are going to respond to that need and do whatever we can to make the government sensitive and responsive to the needs of Canadians.

The Conservatives are way off the mark when they suggest there are no details in the bill and there is no way the money can flow. The bill is more detailed than the provisions that the Conservatives supported in Bill C-43. The bill is more specific in terms of where the money will flow, how it will flow and who it will benefit than half of the provisions the Conservatives voted for in Bill C-43. The hypocrisy; that is why we say they are disingenuous. They are simply stalling and obstructing the work of this place for their own political agenda.

We are talking about a political party that is so desperate. It needs an issue. It put all of its eggs in the basket of forcing an election on the sponsorship scandal, only to find out that there will be an election on the scandal. There will be an election on corruption. Canadians wanted more from the Conservatives than simply a one issue program. They wanted some plans from the party. They wanted some insights in terms of what the Conservatives would do, but they found out there was nothing there.

All the Conservatives can do in the House is obstruct, play games and put on a big macho act. All we have heard in the last two days is big macho talk: “Who is going to hold up what; how are we going to stall this; how are we going to interrupt witnesses; who can be the most rude; who can be the most impolite?” That is what it has come down to. I reject and resent it and I think Canadians do as well.

This is a plan that Canadians want executed as quickly as possible. This is a budget that will make a huge difference in the lives of Canadians. This is a budget that will see money flow as early as this fall. It is imperative that we pass it now and not wait until the fall. We need to pass it now so that the plans are agreed upon, the programs are developed and all those who have access to this money have the chance to participate.

I want to emphasize that the money will flow this fall. The minister will know how much the surplus will be beyond what had been projected in the 2005 fiscal forecast and in the 2005 budget that we have all seen. It requires us to work in the next three months with members of the Federation of Canadian Municipalities, with the mayors of the towns and cities of this land. It requires us to work now with aboriginal Canadians who will benefit from this money in terms of housing and education.

It is incumbent upon us to work with the provinces and the Canadian Federation of Students to develop plans to ensure that the money will actually make education more accessible. It is incumbent upon us to make sure that the work is done and the budget is passed so that the money will flow this year. If it does not flow, it will only be because the Conservatives delayed, stalled and prevented us from getting the job done. I say to them to stop the game playing. Let us get down to work to pass this budget bill as soon as possible so that Canadians can reap the benefits.

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, we need to straighten something out. The members for Yukon and Davenport should apologize to Canadians for misleading them about the contents of Bill C-48.

I have the bill right here. It is a page and a half long. We have $2.5 billion per page. It is probably the most expensive bill that has ever been brought into the House of Commons and there is absolutely nothing in here about mayors, urban transit or cities.

If members opposite want to talk about a bill, let us talk about Bill C-43, which does talk about mayors, urban transit, cities and the Atlantic accord. It is the government that is holding up the passing of Bill C-43. The government has held it up in the Senate. It refuses to let it go ahead. The Conservative Senators have offered to fast track that bill. The government refuses to do that.

These two members should stand up and apologize to Canadians for misleading them. I will let the member do that at this moment.

[Larry Bagnell, Liberal, Parliamentary Secretary to the Minister of Natural Resources]

Mr. Speaker, I would like to ask the member about the importance of the funds for municipalities in Bill C-48. The opposition member seemed to think it is only in Bill C-43. It is in Bill C-43. We would like to get the budget through. The new deal for cities has all sorts of things for municipalities. As the hon. member has correctly stated, the mayors would like us to adopt these bills as fast as possible if the opposition would not keep filibustering.

I would like the hon. member to talk about the importance of urban transit and the other items in our bills for municipalities, so that we can get these bills passed.

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, as members have pointed out so well, there is no national agenda. That is not why we are talking about extending the hours.

I had a couple of thoughts, as I listened to the House leader this morning. It seemed to me there was hardly a discussion, out of the normal discussion we have in June about staying or going or whatever, until about a week ago. The House leader had newspapers interviews and committed himself to a couple of positions, which I do not think even the Prime Minister knew he was being committed to it. That included passing Bill C-48 and Bill C-38.

This was the first time any of us had heard that had to happen or else we would not be leaving this place. He probably was so far out on a limb that he did not saw the branch off behind him. I would think this is one of the reasons we find ourselves in the situation we are in today.

The second reason we find ourselves debating Motion No. 17, which will allow the government to force Bill C-38 through, is the government does not want to take this home for the summer. The Liberals do not want to debate the issue over the summer. They feel if they go home with this issue, they will be hammered on it. I think they think, rather than allow us to come back in the fall and fully debate the issue, if they can ram it through as quickly as possible, then Canadians will forget about it. I would suggest Canadians will not forget about it.

To demonstrate that the government does not have a national agenda and that there is not an urgency in this, as it proclaims there is, in the other place the government has been delaying the implementation of Bill C-43. When the bill was in the House, at different times, particularly with the Atlantic accord, we tried get it accelerated so the government could begin disbursing money to Atlantic Canada.

On every occasion we tried to do that, the Liberal government stopped it from happening. Now that it is in the Senate, the government is once again trying to stop the passage of the bill. The Conservative senators have asked for this to be fast-tracked and they have offered to do that, but the Liberal government, which is in the business of blaming everyone else, has to take responsibility for this. It has refused to allow the bill to be fast-tracked.

I would like the member's comments on a couple of those observations?

The Budget

[Norman Doyle, Conservative, St. John's North, NL]

Mr. Speaker, a prominent Liberal well known to members of the House called a Newfoundland open line radio show today saying that Bill C-43, the bill containing the Atlantic accord, could not be put through the various legislative stages in the Senate all at once.

The government knows that is not true. All we need is for the Liberals to agree to speedy passage. Why are the Liberals holding up passage of the Atlantic accord when Conservatives have agreed to pass Bill C-43 and to give it royal assent immediately?

[Ralph Goodale, Liberal, Minister of Finance]

Mr. Speaker, I can fully understand why the hon. member is trying to cover his tracks. The fact of the matter is that the Atlantic accord in Bill C-43 has been before the House for weeks and weeks and it was that opposition party that refused to pass it.

It was that opposition party that in fact voted against the budget package which would have had the effect of putting the Atlantic accord entirely down the drain if that vote had prevailed. Fortunately, it did not and this side stood for Atlantic Canada.

[Ralph Goodale, Liberal, Minister of Finance]

Mr. Speaker, let us follow the opposition party's course on the budget legislation in the House.

First of all, the opposition members said that this was a budget that they could support. Then on the first vote they abstained from voting. Then when it came to that package on the crucial first confidence vote, they voted against the budget package. They voted to defeat the government, which would have effectively defeated the Atlantic accord. Then finally they came around to supporting Bill C-43 after months and months of delay. They could have had it passed in March.

[Peter MacKay, Conservative, Central Nova, NS]

Mr. Speaker, I am surprised that a House leader would suggest that the Senate could deal with a bill that it does not have.

Conservative Senators proposed fast tracking Bill C-43, the original budget, so that it could be passed in one day. In fact, that would have meant that the offshore royalties to Atlantic Canada could begin flowing today. It is costing Newfoundland and Labrador $132,000 a day and Nova Scotia $55,000 a day in lost interest.

Why is the Prime Minister allowing his Liberal dominated Senate to punish Atlantic Canada by delaying the benefits of the Atlantic accord? Will the government pay the lost interest to those provinces due to his deliberate disingenuous dithering?

[Tony Valeri, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, as members know, we do not speak for the other place. I would suggest to the hon. member that he call his hon. colleagues in the other place and perhaps get the same cooperation that he seems to be suggesting we are getting on Bill C-43. Perhaps he could ask for that same cooperation so that the Senate can deal expeditiously with Bills C-48 and C-38 when they both get to the Senate.

Extension of Sitting Period

[Rahim Jaffer, Conservative, Edmonton Strathcona, AB]

Mr. Speaker, clearly one of the things that we have said consistently in the official opposition is there has to be a significant balance of tax relief to Canadians who are so overtaxed. Many of them are unable to make ends meet. We have always said that we would not only help Canadians but would help stimulate the economy as well. My colleague is correct. This is one of the reasons we are opposed to Bill C-48.

One thing is beyond me, and I identified that as an inconsistency in my speech, especially with regard to the government. It is the fact that it wants to try to rush Bill C-48 through the House. We have had extensive debate on Bill C-43 and we supported it. Now that the government has the opportunity to start delivering some of the money encompassed in Bill C-43 too Canadians, the Liberal-dominated Senate is holding up the legislation for no clear reasons.

Our Conservative senators have said that they want to get Bill C-43 through the Senate in one sitting. They want to build on what is in the bill to get the money to the communities and cities and to people who have been waiting for it in areas where Canadians have been struggling. Why are the Liberals holding that up?

Now the Liberals want to extend the sitting of this House to deal with Bill C-48 and Bill C-38, but they have no urgency to get Bill C-43 through the Senate.