Bill C-13 (Historical)

Budget Implementation Act, 2006

An Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006

Part 1 amends the Excise Tax Act to implement, effective July 1, 2006, the reduction in the Goods and Services Tax (GST) and the federal component of the Harmonized Sales Tax (HST) from 7 to 6 per cent. It also amends the Act to provide transitional rules for determining the GST/HST rate applicable to transactions that straddle the July 1, 2006, implementation date, including transitional rebates in respect of the sale of residential complexes where transfer of ownership and possession both take place on or after July 1, 2006, pursuant to a written agreement entered into on or before May 2, 2006. The Excise Act, 2001 and the Excise Act are amended to increase the excise duties on tobacco and alcohol products to offset the impact of the GST/HST rate reduction. The Air Travellers Security Charge Act is amended to ensure that rates for domestic and transborder air travel reflect the impact of the GST/HST rate reduction. Those amendments generally apply as of July 1, 2006.
Part 2 implements income tax measures proposed or referenced in Budget 2006 to
(a) reduce personal income taxes;
(b) increase the child disability benefit;
(c) increase the refundable medical expense tax credit;
(d) eliminate capital gains tax on charitable donations of publicly-listed securities and ecologically-sensitive land;
(e) reintroduce the mineral exploration tax credit for new flow-through share agreements entered into before April 2007;
(f) expand the eligibility criteria for the disability tax credit;
(g) expand the list of expenses eligible for the disability supports deduction;
(h) expand the list of expenses eligible for the medical expenses tax credit;
(i) clarify the eligibility of home renovation and construction expenses for the medical expenses tax credit;
(j) double the amount of disability-related and medical expenses that can be claimed by a caregiver;
(k) introduce a tax credit in respect of adoption expenses;
(l) introduce a tax deferral for shareholders of agricultural co-ops;
(m) reduce corporate income taxes;
(n) eliminate the federal capital tax; and
(o) extend the carry-over period for non-capital losses and investment tax credits.
Part 3 amends Schedule I to the Excise Tax Act to repeal the excise tax on clocks, items made from semi-precious stones and items commonly known as jewellery, effective May 2, 2006.
Part 4 amends the First Nations Goods and Services Tax Act to facilitate the establishment of taxation arrangements between the government of specified provinces and interested Indian Bands situated in those specified provinces. It also amends the Yukon First Nations Self-Government Act to provide transitional income tax measures consistent with negotiated agreements.
Part 5 amends the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act to harmonize various accounting, interest, penalty and related administrative and enforcement provisions. These amendments will apply based on an implementation date that is the later of April 1, 2007, and Royal Assent. It also amends the Excise Tax Act to confirm that debt collection services that are generally provided by collection agents to financial institutions are not financial services for GST/HST purposes and are therefore taxable for GST/HST purposes.
Part 6 enacts the Universal Child Care Benefit Act to assist families by supporting their child care choices through direct financial support to a maximum of $1,200 per year in respect of each of their children who has not attained the age of six years. It also makes consequential and related amendments to the Income Tax Act, the Employment Insurance Act, the Children’s Special Allowances Act and the Old Age Security Act.
Part 7 amends the Federal-Provincial Fiscal Arrangements Act to determine the amount of the fiscal equalization payments to the provinces and the territorial formula financing payments to each of the territories for the fiscal years beginning after March 31, 2006 and to authorize the Minister of Finance to make an additional fiscal equalization payment to British Columbia and Newfoundland and Labrador, and to make an additional territorial formula financing payment to Yukon and Nunavut, for the fiscal year beginning on April 1, 2006.
Part 8 provides for a total payment of $650,000,000 to the provinces and territories for the fiscal year 2006-2007 in respect of early learning and child care. It provides for payments to the territories for the fiscal year 2006-2007.
Part 9 authorizes the Minister of Finance to enter into an agreement to provide protection to mortgagees in respect of mortgage insurance policies that are provided by a mortgage insurer that is approved by the Superintendent of Financial Institutions to sell mortgage insurance in Canada. It also fixes the maximum amount of such protection and determines how that amount can be changed.
Part 10 extends the sunset provisions of financial institutions statutes by six months from October 24, 2006 to April 24, 2007.
Part 11 amends the Canadian Forces Superannuation Act, Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act to change the existing formula by which adjustments are made to a contributor’s annuity.
Part 12 enacts the Mackenzie Gas Project Impacts Act, the purpose of which is to create the Corporation for the Mitigation of Mackenzie Gas Project Impacts. The corporation will provide contributions to regional organizations that will fund projects that mitigate the existing or anticipated socio-economic impacts on communities in the Northwest Territories arising from the Mackenzie gas project. The Part also provides that a payment of $500,000,000 may be made to the corporation and adds the name of the corporation to the schedule of certain federal Acts.
Part 13 amends the European Bank for Reconstruction and Development Agreement Act to permit the European Bank for Reconstruction and Development to carry out its purpose in Mongolia and to allow the Governor in Council to amend, by order, the schedule to that Act. It amends the Freshwater Fish Marketing Act to increase the Freshwater Fish Marketing Corporation’s legislative borrowing limit from thirty million dollars to fifty million dollars. It also amends the Public Sector Pension Investment Board Act to create share capital for the Public Sector Pension Investment Board

Budget Implementation Act, 2006

[Pierre Poilievre, Conservative, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, it is an honour today to reflect on a budget that did after the election precisely what was promised during the election. We promised we could cut the GST. Done. We promised we would deliver a $1,200 choice in child care allowance. Done. We promised we would take taxes off of educational scholarships. Done. We promised we would bring in a tax credit to help with the exorbitant costs of university textbooks. Done.

We promised we would give a tax credit to help parents with the cost of putting their children in sports so they can keep their kids active, healthy and out of trouble. Done. We promised a tax credit, which the NDP once supported, for public transit, to encourage people to get out of their cars and into public transit in efforts to reduce traffic and pollution. Done.

We have gone further and faster to deliver to the people who elected us precisely what we promised them. Why will the member not rise in the House of Commons and say that while he may disagree with what we have done, at least he can admit that we have done what we said we would do?

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, I am pleased to say that the Conservatives have, without a doubt, done what they said they would do, but they have done it for 30% of the people who voted for them, excluding the 60% who did not. When one does not earn enough income to qualify for the tax breaks that are being offered, they are no good. The average students have been abandoned by the government because they will not even qualify for those tax breaks.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, one of the areas my colleague talked about was his home town and how the men and women who work in the industrial sector have been affected. I would like his comments about the missed opportunities in this budget.

As we in our party have said, we should not just oppose but propose. I would like his ideas on what was missed in the budget but also what we can do to help the men and women in the manufacturing sector who are having a hard time, particularly those in his riding.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, when we look at the population in the manufacturing sector the one thing that will strike us very quickly is that the shade of the hair is very much like my own. It is an aging population. Many of the people who have seen their manufacturing jobs collapse on them, and there have been many in the area of Hamilton East—Stoney Creek, are lost. The Levi plant left recently and hundreds of people lost their jobs. Other plants have also moved on.

There has to be training and retraining with a particular emphasis on the older worker who sometimes has a harder time readjusting to the new technologies and the new work of today.

[The Acting Speaker, Royal Galipeau]

Is the House ready for the question?

[Some hon. members]

Question.

[The Acting Speaker, Royal Galipeau]

The question is on the motion that this question be now put. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[An hon. member]

On division.

[The Acting Speaker, Royal Galipeau]

I declare the motion carried.

(Motion agreed to)

[Jay Hill, Conservative, Prince George—Peace River, BC]

Mr. Speaker, there have been discussions between all the parties present this afternoon and I think if you seek it you could find unanimous consent to see the clock at 2:30 p.m.

[The Acting Speaker, Royal Galipeau]

Is it agreed?

[Some hon. members]

Agreed.

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Speaker, I would seek clarity. I would think there needs to be one more vote taken, which we would agree to on division. and then we would certainly concur with the suggestion of the chief government whip. I would not want Canadians to think that we were seeing the clock as 1:30 on division but I want to be clear as to the vote.

[The Acting Speaker, Royal Galipeau]

The Chair is seeking clarification from the chief government whip. Is he seeking the consent of the House to the motion for second reading of Bill C-13?