Softwood Lumber Products Export Charge Act, 2006

An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence

This bill was last introduced in the 39th Parliament, 1st Session, which ended in October 2007.

Sponsor

David Emerson  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

The purpose of this enactment is to implement some of Canada’s obligations under the Softwood Lumber Agreement between the Government of Canada and the Government of the United States, by imposing a charge on exports of certain softwood lumber products to the United States and on refunds of certain duty deposits paid to the United States and by amending certain Acts, including the Export and Import Permits Act. The charge on exports will take effect on October 12, 2006 and will be payable by exporters of softwood lumber products. The enactment also authorizes certain payments to be made.

Elsewhere

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

Votes

Dec. 6, 2006 Passed That the Bill be now read a third time and do pass.
Dec. 4, 2006 Passed That Bill C-24, An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence, as amended, be concurred in at report stage with further amendments.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 50.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 18.
Dec. 4, 2006 Passed That Bill C-24, in Clause 17, be amended by: (a) replacing lines 42 and 43 on page 12 with the following: “product from the charges referred to in sections 10 and 14.” (b) replacing line 3 on page 13 with the following: “charges referred to in sections 10 and 14.”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 17.
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 13.
Dec. 4, 2006 Passed That Bill C-24, in Clause 12, be amended by replacing lines 2 to 13 on page 8 with the following: “who is certified under section 25.”
Dec. 4, 2006 Passed That Bill C-24, in Clause 10.1, be amended by: (a) replacing line 27 on page 5 with the following: “referred to in section 10:” (b) replacing line 12 on page 6 with the following: “underwent its first primary processing in one of”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 10.
Dec. 4, 2006 Failed That Bill C-24, in Clause 107, be amended by replacing lines 37 and 38 on page 89 with the following: “which it is made but no earlier than November 1, 2006.”
Dec. 4, 2006 Failed That Bill C-24, in Clause 100, be amended by replacing line 3 on page 87 with the following: “( a) specifying any requirements or conditions that, in the opinion of the Government of Canada, should be met in order for a person to be certified as an independent remanufacturer;”
Dec. 4, 2006 Failed That Bill C-24 be amended by deleting Clause 8.
Oct. 18, 2006 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
Oct. 16, 2006 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “the House decline to proceed with Bill C-24, An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence, because it opposes the principle of the bill, which is to abrogate the North American Free Trade Agreement, to condone illegal conduct by Americans, to encourage further violations of the North American Free Trade Agreement and to undermine the Canadian softwood sector by leaving at least $ 1 billion in illegally collected duties in American hands, by failing to provide open market access for Canadian producers, by permitting the United States to escape its obligations within three years, by failing to provide necessary support to Canadian workers, employers and communities in the softwood sector and by imposing coercive and punitive taxation in order to crush dissent with this policy”.
Oct. 4, 2006 Failed That the amendment be amended by adding the following: “specifically because it fails to immediately provide loan guarantees to softwood companies, because it fails to un-suspend outstanding litigation which is almost concluded and which Canada stands to win, and because it punishes companies by imposing questionable double taxation, a provision which was not in the agreement signed by the Minister of International Trade”.

October 31st, 2006 / 9:10 a.m.
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Conservative

The Chair Conservative Leon Benoit

Good morning, everyone.

Pursuant to the order of reference of Wednesday, October 18, 2006, we're dealing with Bill C-24, An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence. I read that just to remind people that we're not here to debate the softwood lumber deal; that debate is over, or at least it's not before this committee. We're here to deal with Bill C-24, which is an implementation bill.

We have as a witness, from Baker and Hostetler, Elliot Feldman. Again, welcome.

And from Gottlieb & Pearson, international trade and customs lawyers, we have Darrel Pearson, senior partner; and at the table with him, Michael Woods.

So we will take the opening statements in the order that we have on the list here, starting with Mr. Feldman. Perhaps you could state who you're representing here at the committee today, as you appear, and then go ahead with your opening statements, and we'll get to the questioning.

October 26th, 2006 / 11 a.m.
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Conservative

The Chair Conservative Leon Benoit

The clerk thought the steering committee agreed that provided Bill C-24 is finished, we would then do this.

We'll make the amendment and add that. It's what was intended.

Is that agreed?

October 26th, 2006 / 10:55 a.m.
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Conservative

The Chair Conservative Leon Benoit

We've agreed to extend the time on Thursday, and we'll have ample time to go through clause-by-clause. On the notice, we'll have added extra time in terms of nine to one. We may even add another time later on, but we're not likely to need it.

Something that will really help is the cross-reference for standard clauses, which is about 90% of this bill, a standard used in other legislation. Every member will be able to cross-reference ahead of time the clauses in Bill C-24 to the clauses in the Excise Tax Act, the Income Tax Act, and the other acts these clauses are used in. It should be helpful in dealing with the standard clauses more quickly.

Yes, Mr. LeBlanc.

October 26th, 2006 / 10:50 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

We have witnesses on Tuesday, Mr. Chair, and for us to say we set a deadline for amendments and then have witnesses who I think will be adding a lot of content to Bill C-24, it just doesn't make sense. It's not logical. It doesn't make sense to say “Well, we appreciate your testimony, but we've already closed off the possibility for amendments”.

I can understand Ms. Guergis's concern that we set a date. We're talking about a couple of days more and witnesses appearing on Tuesday. It's through nobody's fault that today's session was with the trade officials rather than with the witnesses who we brought forward. That was unfortunate, but that's what happened.

So, given that we had to change that date, it makes sense to keep the possibility for amendments open until the end of the business day on Tuesday so there would be time, from the testimony, for any direct amendments that any member around this committee chooses to be put forward--and it respects the witnesses, as well.

October 26th, 2006 / 10:40 a.m.
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Conservative

The Chair Conservative Leon Benoit

So your starting point would be in Bill C-24, a certain clause. That clause is used in these other acts as well.

October 26th, 2006 / 10:40 a.m.
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Conservative

The Chair Conservative Leon Benoit

We have only about three minutes before we go to dealing with our subcommittee report. I do have something first, and then, Mr. Julian, if you have a question or two we'll get to you.

This act includes a lot of clauses that are included in other acts. It would be really helpful if we could get a cross-reference to the standard clauses that are used in Bill C-24 and also used in, for example, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act, which is the GST act, and the Income Tax Act. So if we could get those cross-references it will certainly help us in clause-by-clause.

When members see that these are standard clauses used, there's likely to be a lot less question and a lot less debate needed on those.

October 26th, 2006 / 10:25 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

You seemed to be looking to your right. I wanted to make sure I had your attention.

I'd like to thank Ms. Negus for referring to those four pieces of legislation that have the same kinds of draconian clauses that we're discussing today in Bill C-24. I would appreciate it if you could send to the committee those exact references for each of those clauses, because in each of those four pieces of legislation that you cite, there's a system of checks and balances.

I think what we're struggling with today is the fact that there do not seem to be the same checks and balances within Bill C-24 that may exist in other legislation. It would be helpful to have those pieces of legislation, in order to see how we can make this legislation much more balanced.

October 26th, 2006 / 10:10 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

I'm talking about Bill C-24, Mr. Chair.

October 26th, 2006 / 10:05 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Thank you, Mr. Chair.

I'd like to clarify that it's not the government's own money. It's taxpayers' money that would be used for this little shell game of reimbursing companies with taxpayers' money, because we won't be getting money from the United States for many months.

The other thing we established on Tuesday that's important to clarify is there is no provision in Bill C-24 for what you've mentioned, Mr. Robertson. It may be a promise to the government, but we're dealing with the hard facts of Bill C-24.

In Bill C-24, the situation that Monsieur André speaks of is very possible. We've established that it's very possible. There are no provisions in this legislation to ensure that won't happen. In fact, the legislation is very clear.

October 26th, 2006 / 9:45 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Thank you, Mr. Chair.

However, the special charge of course is not ordinary in any sense of the word; it's quite extraordinary. My point is, and I think it's well taken, you have this special charge that is imposed, and essentially a company that sees that special charge imposed is forced to pay it before they can see any money coming back through the taxpayers on EDC, and then it has an appeal process that conceivably would take over a year. That's the important point, I think, for this committee to know as we deliberate and do our due diligence on Bill C-24.

October 26th, 2006 / 9:05 a.m.
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Conservative

The Chair Conservative Leon Benoit

Good morning once again, gentlemen.

At today's meeting we're continuing the review of Bill C-24, Softwood Lumber Products Export Charge Act , with the officials from the department.

We have with us again today, from the Department of Foreign Affairs and International Trade, Paul Robertson, director general, North America trade policy; Brice MacGregor, senior trade policy analyst, softwood lumber; Dennis Seebach, director, administration and technology services; and John Clifford, counsel, trade law bureau.

From the Canada Revenue Agency, we have two people today: Ron Hagmann, manager, softwood lumber; and Cindy Negus, manager, legislative policy directorate.

I thank you all very much for coming here once again.

We will start directly with questions. Of course, as usual, at least one or some of you will be here when we actually go through clause-by-clause next Thursday, and we're looking forward to having you here again.

I do appreciate your taking the time. I know you have a lot to do with your time. Some members of the committee did feel that we wanted you back, so we appreciate your coming.

We'll go directly to questioning.

Mr. Temelkovski. Go ahead, Lui.

Procedure and House AffairsCommittees of the HouseRoutine Proceedings

October 24th, 2006 / 11:40 a.m.
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Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I thank you for the opportunity to speak to what I consider to be an extremely important issue.

First, beyond the issue that we will be discussing for the next few minutes, there is something all Canadians should recognize as well. Despite what my hon. colleague from the official opposition, the opposition chief whip, has stated, the intent of this motion is not to discuss whether provisional Standing Orders should be made permanent. It is not even about whether an agreement was broken. The purpose of the motion today is the official opposition, and I suspect in concurrence with other opposition parties, clearly wants to hijack the workings of Parliament. The members of the opposition are using procedural tactics, which are available to them, to delay proper implementation of government legislation. They are using delaying tactics, in other words, to disallow full discourse and debate on government legislation, which we introduced into this place. They are doing that for their own political partisan reasons and, frankly, that is not only objectionable, it circumvents and undermines the purpose of this place.

My hon. colleague, the chief opposition whip, said in her opening remarks, when she introduced the concurrence motion, that the provisional Standing Orders served a number of purposes. One is to allow opposition parties the ability to introduce motions, to speak and to question government members. However, she also said something extremely important. The provisional Standing Orders or the Standing Orders should allow the government to conduct its business. In other words, it should allow the government to govern.

I totally agree with that. The Standing Orders should allow governments to govern. On one hand, the chief opposition whip agrees with that statement. Yet on the other hand, and proof is in today's concurrence motion, which is the fourth of fifth concurrence motion we have had in the last two weeks, she is delaying the ability of the government to govern. That is the first point and I want to get it on the record.

This is highly objectionable. I think most Canadians would agree with me that the purpose of Parliament is to pass legislation or to at least have healthy debate on the it. Yet by the very action of the opposition members, that debate is not taking place. They are finding ways, through procedural tactics, to shelve any meaningful debate on legislation that the government plans to bring forward.

This aside, that is their right. Under the Standing Orders, they can introduce concurrence motions. They have done so. We are now debating the motion for three hours instead of debating government legislation, but so be it. I will accept that because it is something that is available to all opposition members.

I want to turn my attention to the motion at hand. I again want to emphasize that the real issue in the debate on Standing Orders, whether the provisional Standing Orders should be made permanent, is not the issue. The issue is there was an agreement in place that was broken. I believe strongly that agreements and words are extremely important in this place. We could not operate in this place if we had a culture in which a word that was given could be broken at a whim.

I know you, Mr. Speaker, being the senior statesman in this place, would understand. Over the last few decades you have worked in this place and represented Canadians here. I suggest to you that you feel quite strongly that when one gives his or her word to a colleague, that word should be respected, that word should be honoured and to break that word is extremely serious. This is the issue with which we are dealing.

Even though it has been talked about before, let me give the scenario that occurred, chronologically.

On September 19 of this year, the meeting of the House leaders took place, at which time the government House leader talked about extending the provisional Standing Orders for approximately 60 days, until November 21. The reason the government House leader introduced this was because the previous agreement was that the provisional Standing Orders would stay in place only until October 10. If they were not put into place in a permanent fashion at that time, we would revert back to the old Standing Orders.

The government House leader then said that we should have some all party discussion on whether these provisional Standing Orders should be made permanent or whether they should perhaps be amended somewhat. He proposed to extend the provisional Standing Orders until November 21, an additional 60 days. He suggested that during that 60 day extension, the staff of all four parties get together and discuss whether there should be amendments or whether we were happy with the provisional Standing Orders as written. Then we could adopt them into a permanent state, with or without amendments, by the November 21. All House leaders said that was reasonable and they agreed to it.

The following day, on September 20, the government House leader, in this place, introduced the motion asking for unanimous consent to extend the provisional Standing Orders until November 21, as agreed upon in the previous day's House leaders' meeting. It was unanimously agreed upon. That is why I say there is indisputable proof that there was an agreement made at the House leaders' meeting of September 19.

I have great respect for all of my colleagues in positions such as whips or House leaders, or caucus officer positions. Not only do I have respect for them, I absolutely know they are intelligent people who would not allow a motion to pass unanimously unless there had been an agreement. In other words, if we, as the government, tried to pull a fast one and we asked for unanimous consent for a motion and we tried to slide something through, if there had not been an agreement the previous day at the House leaders' meeting, my colleagues on the opposition benches would not have given unanimous consent. However, they did not do that. Everyone agreed to pass the motion unanimously, which again verifies my contention that there was an agreement in place. That is indisputable.

Now having proved that there was an agreement in place, what happened? Rather than waiting until November 21, rather than waiting for all staff members from all opposition parties and the government to get together to examine these provisional Standing Orders to determine whether there should be amendments made and rather than honouring the agreement, on October 5 of this year, at the procedures and House affairs committee, the chief opposition whip introduced a motion, without prior consultation, stating that she wished to make the provisional Standing Orders permanent immediately. That was in violation of the agreement, which stated they should remain in effect until November 21. This is the issue that I am debating. An agreement was broken.

The reason the opposition whip introduced this motion was payback. Opposition members were upset at us because we used a provisional tactic several days beforehand, Standing Order 56.1, and we caught the opposition by surprise.

The circumstances were this. Bill C-24 was being debated in this place. It was the softwood lumber debate, legislation which we had introduced and we wanted to get passed as quickly as possible. Our colleagues from the NDP, during debate, kept raising amendments and subamendments, and then putting up speakers to deal with those amendments and subamendments. That is perfectly acceptable under the Standing Orders of this place. NDP members were, in other words, using procedural tactics to delay implementation of Bill C-24. They did not agree with Bill C-24, so they were using procedural tactics to delay the implementation of it as long as they possibly could.

The Conservatives disagreed. We felt this bill was an extremely important piece of legislation that would benefit the softwood lumber industry and finally put an end to years and years of litigation and dispute between Canada and the U.S. We wanted to fast track the bill. We wanted to stop with these sorts of procedural delays, get the debate completed, get the bill to committee, and ultimately vote on it in this place.

What did we do? We employed a procedural tactic of our own. It is called Standing Order 56.1(3). For those in the gallery and the Canadian viewing public, it is what I would suggest is a fairly arcane procedural Standing Order, which says that there needs to be 25 members of the opposition in this place to defeat a motion that we were about to bring forward.

One day, knowing that the opposition tends not to show up to work very often, the Conservatives introduced a motion which would, to cut to the chase, effectively limit the amount of debate that the NDP would be able to use. In other words, it would stop the NDP from using its procedural tactics to continue to delay the implementation of this bill.

The Conservatives introduced a motion and all of a sudden, by the rules of this place, all of those opposed to our motion had to stand and be counted. There needed to be 25 opposition members to defeat our motion. What happened? There were only 21 opposition members in this place at that time.

I would suggest that speaks volumes about the intentions of the members opposite who actually do not think it is that important to show up to this place during routine proceedings. Nonetheless, only 21 members stood, so the NDP could not defeat our motion. Consequently, it was stymied in its attempts to delay discussion and debate on Bill C-24.

In other words, because of the procedural tactic the Conservatives used, the opposition was angry. Opposition members were very angry and decided they had to push back, that there was payback and there were consequences. They were angry that the Conservatives pulled a fast one like that, embarrassed NDP members, and stifled their ability to talk about a bill they did not agree with.

What happened? On October 5 in the procedure and House affairs committee the opposition whip introduced a motion to break an agreement. She introduced a motion that would place a permanent status on the provisional Standing Orders. She said no, the opposition was not going to honour the agreement to wait until November 21 and was not going to honour the agreement to allow all staff members to get together and examine the provisional Standing Orders to see whether amendments should or could be made. It was going to say to heck with that, it wanted to break the agreement, and wanted these Standing Orders to be made permanent immediately.

That is the issue. The opposition members broke their word. That much is indisputable. In every question and comment period, I have asked every member opposite the simple question of whether there was an agreement in place and not one of the members has had the courage to stand here and say, “Yes, you were right, there was an agreement and that agreement was broken”. They try to change the channel, skirt the issue, and stand in this place to say that is not really issue. The issue is that we should be discussing these provisional Standing Orders. That is the issue.

When members give their word of honour in this place, I suggest they must honour that word. This place could not operate without it. We all know that. From time to time in committees, opposition and government members get together and say, “We are debating something in committee. Can I count on your support?” If somebody says yes, that word is taken as that person's bond.

If we start breaking agreements and breaking our word, then our word is meaningless. This place will not operate. I will give an example of something that affected me, but will show all members how I try to conduct myself in this place.

I was first elected in 2004. I was new to this place and new to the committee structure. I was on, ironically enough, the ethics committee at that time. During debate of some motion that was coming forward, the hon. NDP member for Winnipeg Centre, I believe, gave me a phone call and told me he was introducing something and that he would like my support. He explained his position to me. I said it sounded reasonable and made sense, so I said I would vote with him and support him when that initiative was brought before the committee.

I found out fairly quickly that perhaps before giving one's word one may want to consult with one's own party because I found out afterwards that it was not the position my party wanted to take. They gave me some very salient and cogent sort of explanations of why we should oppose the initiative that the member for Winnipeg Centre was going to introduce.

It came before the committee and what did I do? I voted with the member. I opposed our party's wishes. I paid for it. I had a discussion with some of our caucus officers who told me that they did not really appreciate my position, but the reason I did it was because I had given the member my word and was willing to live with the consequences. That is how this place must operate, I would suggest.

We have a fundamental issue and that is the issue of the day, the agreement that was made at the September 19 House leaders meeting has been broken. Nothing else matters. These provisional Standing Orders, I could live with them as they are. I could live with them with minor amendments, but that is not the issue.

An agreement was broken and it was done deliberately for partisan reasons, not for the benefit of Canadians, and not because we want to get these provisional Standing Orders in effect today. They would have been effect in any event come November 21 because I would guarantee that all members of the committee, prior to November 21, would have brought forward a motion to deal with it before the deadline ran out. It would have been voted in favour. Those provisional Standing Orders would have been adopted with or without amendments.

However, the opposition party and the chief opposition whip brought this motion forward as a form of what probably may be considered as political payback, but in effect the opposition broke an agreement. It broke its word and that is the issue that we have to deal with here.

We will always disagree on fundamental issues. We will always agree to disagree ideologically, politically and philosophically, but I would suggest, and hope, that every member in this place would agree that when a member of this place gives his or her word to another member, that word should be honoured, and it is not.

We have had, in my opinion again, a serious breach of trust in this place. Some might suggest that the trust has been lacking for a long time. I could agree where some members would suggest that this place is not conducive to trustworthiness. Certainly, all parties are suspicious of the motives of other parties from time to time.

I am quite convinced, even as I speak now, that there are members in the opposition ranks who feel that my motives are politically driven. I just want to assure them, whether or not they take me at my word, that they are not. I absolutely believe that when one gives his or her word in this place, it must be honoured.

We are starting to break down the ability of members to trust one another in the most primary and fundamental environment of asking whether another member will agree to support one and to support a piece of legislation. When a word is broken, when a trust and a bond is broken, I do not believe we can operate efficiently. That is the issue.

I would ask in summation that every member in this place stand during their comments or in their questions, and please accommodate me and answer one simple question. Do they not believe that when one gives his or her word in this place, it should be honoured?

October 24th, 2006 / 10:55 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Since Mr. Feldman can't make it to Ottawa on Thursday, I'd like to suggest that the three witnesses I've put forward should be heard next Tuesday, and that the trade officials should come back. There are a lot of questions we still have to ask on this briefing on Bill C-24, and I've not exhausted my questions by any means. I'm sure it's the same with other members.

October 24th, 2006 / 10:55 a.m.
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Conservative

The Chair Conservative Leon Benoit

Thank you all, gentlemen, for coming. I think you've gotten us off to a good start in dealing with Bill C-24. Your input and help today is much appreciated.

We have some other business to deal with, and we have to be out of the room by 11 o'clock. On Thursday's meeting, it will be just a 9 to 11 o'clock meeting, because the witness for whom we were going to extend the meeting, Mr. Feldman, can't come. So it'll be a 9 to 11 meeting, as scheduled.

I remind you that any amendments members of the committee would like to bring on Bill C-24 should be to the clerk by Friday.

For next Tuesday, Mr. Julian, you've asked to have Mr. Feldman fit into the program. Would 30 minutes at the start of the meeting be appropriate?

October 24th, 2006 / 10 a.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Thank you, Mr. Chairman.

As Mr. Cardin pointed out, we're not exactly thrilled by this agreement. In light of all the job losses over the past few weeks since the implementation of the agreement, and given that the WTO clearly said that we were entitled to all of the money and that there was no need for us to tax our own companies, I find it somewhat ridiculous that we're looking into this.

Having said that, on our agenda for today is the clause-by-clause study of the bill and we thank you for joining us.

I want to start with subclause 18(3) of Bill C-24. It says:

Every specified person in respect of whom a covered entry is to be liquidated as a result of a revocation shall pay to Her Majesty in right of Canada a charge at the specified rate on the amount of any duty deposit refund that relates to the covered entry.

Further down, in subclause 18(5), it says:

The charge under subsection (3) becomes payable by the specified person on the later of

(a) the day on which this Act is assented to, and

(b) the day that is the earlier of

(i) the day on which the duty deposit refund is issued to the specified person or a designate of the specified person, and

(ii) the day on which the specified person sells the rights to the duty deposit refund to Her Majesty in right of Canada.

I'd like you to lead us through the practical implications of that particular clause.