Income Tax Amendments Act, 2006

An Act to amend the Income Tax Act, including amendments in relation to foreign investment entities and non-resident trusts, and to provide for the bijural expression of the provisions of that Act

This bill is from the 39th Parliament, 2nd session, which ended in September 2008.

Sponsor

Jim Flaherty  Conservative

Status

In committee (Senate), as of Dec. 4, 2007
(This bill did not become law.)

Summary

This is from the published bill.

Part 1 of the enactment enacts, in accordance with proposals announced in the 1999 budget, amendments to the provisions of the Income Tax Act governing the taxation of non-resident trusts and their beneficiaries and of Canadian taxpayers who hold interests in foreign investment entities.
Part 2 enacts various technical amendments that were included in Part 1 of a discussion draft entitled Legislative Proposals and Draft Regulations Relating to Income Tax released for consultation by the Minister of Finance on February 27, 2004. Most of these amendments are relieving in nature, and others correct technical deficiencies in the Act. For example, Part 2 enacts amendments
–       to implement various technical amendments to qualified investments for deferred income plans,
–       to clarify that certain government payments received in lieu of employment insurance are treated the same as employment insurance for income tax purposes,
–       to extend the existing non-resident withholding tax exemption for aircraft to certain air navigation equipment and related computer software,
–       to allow public corporations to return paid-up-capital arising from transactions outside the ordinary course of business, without generating a deemed dividend,
–       to confirm an income tax exemption for corporations owned by a municipal or public body performing a function of government in Canada, and
–       to provide that input tax credits received under the Quebec Sales Tax system are treated for income tax purposes in the same way as input tax credits received under the GST.
Further, Part 2 enacts provisions to implement announcements made by the Minister of Finance
–       on September 18, 2001, limiting the tax shelter benefits to a taxpayer who acquires the future business income of another person,
–       on October 7, 2003, to ensure that payments received for agreeing not to compete are taxable,
–       on November 14, 2003, to simplify and better target the tax incentives for certified Canadian films,
–       on December 5, 2003, to limit the tax benefits of charitable donations made under certain tax shelter and other gifting arrangements, and
–       on November 17, 2005, relating to the cost of property acquired in certain option and similar transactions.
Part 3 deals with provisions of the Act that are not opened up in Parts 1 and 2 in which the following private law concepts are used: right and interest, real and personal property, life estate and remainder interest, tangible and intangible property and joint and several liability. It enacts amendments to ensure that those provisions are bijural, that is that they reflect both the common law and the civil law in both linguistic versions. Similar amendments are made in Parts 1 and 2 to ensure that any provision of the Act enacted by those Parts are also bijural.

Similar bills

C-33 (39th Parliament, 1st session) Income Tax Amendments Act, 2006

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-10s:

C-10 (2022) Law An Act respecting certain measures related to COVID-19
C-10 (2020) An Act to amend the Broadcasting Act and to make related and consequential amendments to other Acts
C-10 (2020) Law Appropriation Act No. 4, 2019-20
C-10 (2016) Law An Act to amend the Air Canada Public Participation Act and to provide for certain other measures

Opposition Motion—Income Tax ActBusiness of SupplyGovernment Orders

March 5th, 2008 / 4 p.m.


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Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

Mr. Speaker, I listened carefully to the minister's remarks, and now I would like to ask her a question.

The motion we are considering today, if passed, would require the government to propose an amendment to Bill C-10—which is now before the Senate—to remove a certain clause.

If I understand and interpret the minister's remarks correctly, the government has no intention of following up on the House's wish in this regard. Do I understand correctly what the minister said about the motion before us today?

Opposition Motion—Income Tax ActBusiness of SupplyGovernment Orders

March 5th, 2008 / 3:50 p.m.


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Louis-Saint-Laurent Québec

Conservative

Josée Verner ConservativeMinister of Canadian Heritage

Mr. Speaker, I will share my time with the member for Abbotsford.

I am pleased to speak today to Bill C-10. I will start by saying that over the last few days, we have heard a lot of false information about the purpose and scope of Bill C-10, An Act to Amend the Income Tax Act, in connection with tax credits for the production of films and videos.

I would like to take this opportunity to set the record straight and to discuss several things.

First, Bill C-10 is in no way a form of censorship. It is not our goal to interfere with freedom of expression, as the opposition would have us believe. Absolutely not. This bill would ensure the integrity of the tax system. The objective of this bill is to reassure taxpayers about the way public funds are spent. Since the Conservative government is responsible, this issue is important to us.

As some hon. members are aware, the Minister of Canadian Heritage has discretionary power to refuse to issue a film or video production certificate if, in the minister's opinion, the use of public funds is contrary to the public interest. This discretionary power has been in effect since 1995 under the Income Tax Regulations.

The proposed amendments in Bill C-10 come as no surprise to Canada's audiovisual industry. They were announced first in 2002 by the former finance minister in the Liberal government, then in 2003 by that same minister and the former Canadian heritage minister in the Liberal government. We therefore have a hard time understanding why the Liberals and now the Bloc seem to be opposed to the amendments. This is not the first time they have changed their minds, though.

Our government submitted exactly the same amendments to the House of Commons and they were approved by all parties on October 29, 2007, four months ago. All the parties approved the bill last fall. Moreover, four of the 10 provinces use the same wording in their system of tax credits for film production. Three other provinces refer to very similar concepts. In addition, Telefilm Canada, the federal cultural agency that provides financial support for Canadian audiovisual production, also refuses to finance some productions for similar reasons.

Many people have said that Bill C-10 will threaten freedom of expression. Nothing could be further from the truth. Our government continues to passionately defend freedom of expression.

The establishment of reasonable measures, such as the ones contained in Bill C-10, is designed to provide as much opportunity to freedom of expression, as it is consistent with the limits of the law and public policy.

Bill C-10 is about government accountability. It is about responsibility. Our government is a responsible government. A fundamental responsibility we have, as members of Parliament, is to ensure that Canadians are represented in these matters. I believe Bill C-10 does just that.

Bill C-10 also includes many other amendments to the Income Tax Act for which the film industry has asked. For example, amendments to section 241 would permit some disclosure of information to strengthen transparency in the administration of the programs in support of Canada's audiovisual industry.

The proposed amendments will allow the publication of recipients of tax credits, along with the names of the key creative personnel associated with the production. Other amendments simplify the tax credit and hence its benefits.

These measures are in keeping with our government's commitment to transparency, to streamline administrative processes and to reduce unnecessary red tape to make these programs work better for Canadians and, at the same time, make sure that the funds are managed effectively and efficiently.

Beyond the scope of this bill, our government has always demonstrated that it believed in the importance of culture.

We believe that it is important that our programs to support the arts, music, theatre, literature and audiovisual production reflect our country's history and Canadians' experiences. We believe that it is important for Canadians' voice to be heard, just as we believe that everyone should be able to hear it.

Our government has confirmed that commitment in many ways. We recently announced additional funding for festivals, the Canada Council and national museums. Moreover, budget 2006 granted a capital gains tax exemption for donations to public charities, many of which are active in the arts and culture.

Our commitment to culture is also evident on the international scene, as we sponsor and support the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions.

In addition, our government promotes the creativity of Canada's audiovisual industry every day through many established programs, including the Canadian Feature Film Fund, the Canadian New Media Fund and the Canadian Television Fund.

We are also supporting this industry through co-production agreements and tax credit programs that have proven their worth.

We are also supporting various key organizations that stimulate the creativity of the audiovisual industry. Telefilm Canada, the National Film Board, the Canadian Broadcasting Corporation and the Canadian Radio-television and Telecommunications Commission come to mind.

In 2006-07, our government invested more than $765 million in Canadian audiovisual content: $74 million went to the National Film Board, $96 million to the Canadian Feature Film Fund, $252 million to the Canadian Television Fund, $14 million to the Canadian New Media Fund and $330 million to two tax credit programs.

Although public funds play an important role, we believe that they are not the only means available to develop the audiovisual industry. To stimulate the industry, we need policies, legislation and institutions. Important legislation, such as the Broadcasting Act, the Investment Canada Act and the Income Tax Act, along with other policies and regulations, contribute without a doubt to the success of our audiovisual industry.

Bill C-10 is about fairness and transparency. Many critics have said that the process is unfair and not transparent. With the passage of Bill C-10, the next step is for the Department of Canadian Heritage to conduct consultations with industry groups, as it did informally on March 3, and take full consideration of their comments and concerns. We will ensure that this will not have a negative effect on financing practices within the film industry.

In conclusion, let me address more specifically the audiovisual content. At the CFTPA convention, I stated the importance of content. In an open, global and multi-platform world, reaching Canadian audiences with Canadian content is the single most important objective.

This is why the creation of and the access to high calibre Canadian content that appeals to Canadians are the main drivers of our government's support. This is further evidence of our government's commitment to diverse cultural expression. Canada needs risk-takers to deliver this content and to capture the Canadian audience.

Our government firmly believes in its duty to support artists, creators and everyone who plays a key role in our cultural industries.

I would like to remind all Canadians that our government will continue to pursue this course with passion, respect and transparency.

Opposition Motion—Income Tax ActBusiness of SupplyGovernment Orders

March 5th, 2008 / 3:25 p.m.


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Bloc

Maria Mourani Bloc Ahuntsic, QC

moved:

That, in the opinion of the House, the government should introduce, as soon as possible, an amendment to Bill C-10, An Act to amend the Income Tax Act, including amendments in relation to foreign investment entities and non-resident trusts, and to provide for the bijural expression of the provisions of that Act, in order to remove the reference to public policy that is added by this bill to subsection 125.4(1) of the Income Tax Act, because this new provision opens the door to unacceptable government censorship of film and video production.

Mr. Speaker, I am very pleased to rise here today to introduce this motion to counter the Conservative government's desire to censor film productions.

The motion calls on this government to introduce, as soon as possible, an amendment to Bill C-10, An Act to amend the Income Tax Act, including amendments in relation to foreign investment entities and non-resident trusts, and to provide for the bijural expression of the provisions of that Act, with a view to remove the reference to public policy that is added by this bill to subsection 125.4(1) of the act.

We must ask the question: why should the expression “public policy” be removed? Well, this expression is so vague that it is open to interpretation. I will give a few over-the-top examples to demonstrate how it could be interpreted in various ways.

For instance, would a film that shows someone burning the Canadian flag or insulting the Queen conform to public policy? That is one question. What about a film that criticizes the Conservative government or questions our presence in Afghanistan or promotes sovereignty in the middle of or prior to a referendum, for instance? Would such a film conform to public policy? We must ask the question. Thus, the words “public policy” could be taken even further still.

With respect to Bill C-10, what is the Prime Minister telling us through the Minister of Canadian Heritage, Status of Women and Official Languages, of course?

Here is the first argument they keep repeating endlessly: given that this bill has already been passed by the House, and is presently being studied by the Senate, we should have acted earlier. That is true.

Nobody pointed out this section on criteria for film production credits. This section is buried in a 560-page bill to amend the Income Tax Act.

When I say nobody, I really mean nobody. The three opposition parties did not see it and the Senate did not see it at first or second reading. It is now at third reading stage. We can even assume—and I did say assume—that the Minister of Canadian Heritage did not see it because it was her colleague, the Minister of Finance, who was responsible for this legislation.

We must humbly acknowledge, and simply say, that a mistake was made and that we are prepared to rectify the situation. That is the important point: let us rectify the situation.

Yet we see that the government continues to make these kinds of arguments.

The second, and not the least important, of its arguments is that this government does not view it as a censorship mechanism. It would serve to prevent the state from funding pornographic movies, child pornography, hate propaganda and so forth. It is true that the state should not fund these types of productions.

We heard the Minister of Canadian Heritage blithely repeating in all the media and even in this House that we must not fund such productions and that the purpose of the section was to prevent such horrors.

I realize that the Minister of Canadian Heritage may not be aware that such movies are not funded in Canada or in Quebec. It is true that we do not have to know everything. In fact, either the Minister of Heritage is acting in bad faith or she is not aware that we have a Criminal Code that prohibits such things. Personally, I prefer to think that she just is not aware of it.

For the benefit of the Minister of Heritage, allow me to briefly summarize the offences found in the Criminal Code in this regard.

Section 319 of the Criminal Code includes provisions on hate propaganda and incitement of hatred. The maximum prison sentence is two years. Section 163 of the Criminal Code on offences tending to corrupt morals prohibits the production and distribution of child pornography and obscene publications.

I could cite other provisions. The famous subsection 163(1)(a) states: “—makes, prints, publishes, distributes, circulates, or has in his possession for the purpose of publication, distribution—”. This all has to do with child pornography.

Subsection 163.1(2) addresses the production of child pornography. Production itself is therefore covered. It also provides for maximum sentences of 10 years for the distribution of child pornography. The Criminal Code also covers other offences, such as defamation and slander.

I also want to remind the minister that the criteria for granting film certificates were changed in May 2005. Section VII, newly created by the Regulations Amending the Income Tax Regulations (Film and Video Productions), stipulates that all pornography is excluded. Child pornography is clearly defined in the Criminal Code. Under this new Section VII created by the Regulations Amending the Income Tax Regulations (Film and Video Productions), productions exclude all pornography. In other words, no tax credit is given to that type of film.

What current events have prompted us to amend the legislation in question? Why were these clarifications added? In my opinion, the question must be asked. Does this legislation not include hidden objectives that reflect the government's desire for censorship? I believe that people are inherently good and I can believe that the government is well-meaning. I am simply proposing that this bill be amended. It is not too late.

We all agree on one thing: the state must not provide funding for pornographic films. The state must not provide funding for child pornography or hate propaganda films either. We all agree on that.

I have good news for everyone: my colleague, the hon. member for Rosemont—La Petite-Patrie, has tabled a bill to have the CRTC regulate violence on television. He would like violent programs to be broadcast after 9 p.m. when children are already sleeping. The purpose of his bill is to get the CRTC to do its job as a regulator. Broadcasters are currently required to regulate themselves voluntarily. This bill offers a way to control violence on television without having to censor anything.

I would like to bring up an interesting argument from a press release issued by the minister's office. The press release contains something I found rather unusual and it really left me wondering. So I wanted to take a closer look at it. According to this document, the creator of a film that includes content that may be subject to prosecution under the Criminal Code “could technically still be eligible for a film tax credit under the Income Tax Act.” The release goes on to say:

This is a legal absurdity; a loophole that successive governments—first Liberal, then Conservative—have worked to close.

I must admit I am rather surprised that a creator who produces a work that includes content that may be subject to prosecution under the Criminal Code could receive a tax credit. That is unthinkable. Let us assume that this creator produces pornographic movies. Child pornography is subject to prosecution under the Criminal Code. We do not pay for these kinds of things.

The creator would not receive a tax credit.

I must admit that I am rather shocked by this argument, which makes no sense, and just goes to show that the government is flailing around and saying any old thing.

I think that the Conservative government—and I am sure many members will agree—is still using the back door to impose its far-right values. The Minister of Canadian Heritage is accusing us of blowing this out of proportion, and is saying that the film industry is panicking for nothing. If that is the case, the Conservatives should reassure us and simply amend the bill. We will have been wrong, we will have blown things out of proportion, and they will have fixed this little problem.

Unfortunately, our Minister of Canadian Heritage is powerless. She does not make the decisions in her department; they are made by her colleague, the Minister of Finance. I think she is so powerless that she is strongly supporting aberrations that are taking us back to the time of censorship. Now that is really something. It is very sad, but I think this is the only concrete action the minister has taken for the film industry, which is an action against the film industry. It is truly sad.

Indeed, this minister's record when it comes to the film industry is absolutely terrible, pathetic even. Let me explain. She is a minister from Quebec and she still refuses to recognize the existence of the Quebec film industry. She is the first minister to have abandoned the International Centre of Films for Children and Young People, whose head office had been in Montreal since 1990, and which had to move to Johannesburg, South Africa.

I would also remind the House that there was absolutely nothing for the film industry in the recent budget. Out of a $240 billion budget, she could not convince her colleague in the finance department to reinvest $50 million in the Feature Film Fund or the Television Fund. Furthermore, she still does not want to establish a $10 million documentary feature film fund, as called for by the film industry. It is so unfortunate and I am very sad to have to tell the cultural community that we have a heritage minister who is merely an extra.

Yes, the cultural community should be worried. As Pierre Even, producer of C.R.A.Z.Y, said, and I quote: “Despite the numerous representations we have made over the past two years to make the government aware of our needs, there was absolutely nothing in this budget for the film industry ... The government understands nothing about culture or how cultural institutions operate”.

This is very sad, indeed.

Here is how CTVM's newsletter summarized the general impression of this community, and I quote: “Our federal minister does not appear to like our movies”. We love movies. Does the minister not like movies? We would have to ask her. What I would say to the film community is that the Minister of Canadian Heritage is not showing any leadership in this file and is merely a powerless representation of a minister in power, even though she has none. She is a powerless minister.

Arts and CultureOral Questions

March 4th, 2008 / 2:50 p.m.


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Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, once again, the Minister of Canadian Heritage, Status of Women and Official Languages, who is powerless, is not answering questions. The solution is for the government to introduce an amendment to Bill C-10 as soon as possible to remove the reference to “public policy”, which opens the door to censorship.

Will the government promise to do so immediately?

Arts and CultureOral Questions

March 4th, 2008 / 2:50 p.m.


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Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, to justify its desire for censorship, the Conservative government is trotting out its old line that people who disagree with the government are promoting child pornography, defamatory libel and hate propaganda. These are already prohibited by the Criminal Code. The Minister of Canadian Heritage, Status of Women and Official Languages is even accusing the industry of creating a tempest in a teapot.

Will the Minister of Finance agree to amend Bill C-10 to ensure that these new provisions do not lead to any censorship?

Bill C-10Oral Questions

March 3rd, 2008 / 2:35 p.m.


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Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, Quebec's cultural community is worried. Bill C-10 on tax measures contains a clause that redefines the conditions for obtaining a film production credit. This highly vague provision is a mistake and must be corrected.

Can the Minister of Canadian Heritage assure us that she will intervene to correct this mistake immediately, a mistake that does not reflect the intention of the legislators?

Bill C-219Points of OrderRoutine Proceedings

January 31st, 2008 / 1:15 p.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 rise on a point of order respecting the procedural acceptability of Bill C-219, An Act to amend the Income Tax Act (deduction for volunteer emergency service), which is currently on the order of precedence in the name of the hon. for Malpeque.

Without commenting on the merits of the bill, I would ask the Speaker to rule on whether the bill conforms to the procedural requirements for tax legislation.

Briefly stated, the Income Tax Act has been amended since the introduction of Bill C-219, so that the bill now has the unintended effect of increasing taxes.

Although the bill was in order when it was first introduced, I will be arguing that the bill should have been preceded by a ways and means motion when it was reinstated in the current session of Parliament.

I will therefore be arguing that the bill should be withdrawn from the order paper.

Bill C-219 proposes to amend the Income Tax Act to allow volunteer emergency workers to deduct $1,000 from their taxable income if they performed at least 100 hours of volunteer service and $2,000 if they performed at least 200 hours of volunteer service.

Bill C-219 was first introduced in the House during the previous session of Parliament on April 10, 2006.

On October 16, 2007 the bill was deemed to have been introduced and read a first time in the current session of Parliament pursuant to Standing Order 86.1 which provides for the reinstatement of private members' business following a prorogation.

As the Speaker knows, bills that increase the level of taxation must first be preceded by the adoption of a ways and means motion. The 22nd edition of Erskine May states at pages 777 and 778 that matters requiring authorization by a ways and means resolution include “the repeal or reduction of existing alleviations of taxation, such as exemptions or drawbacks”.

Bill C-219 proposes to amend the Income Tax Act to provide a tax deduction for voluntary emergency workers. Erskine May makes clear at page 781 that bills that alleviate taxation do not require a ways and means motion.

I therefore recognize that the bill was properly before the House when it was first introduced in the previous session of this Parliament. However, since Bill C-219 was first introduced, the Income Tax Act has been amended and as a consequence Bill C-219 will now have the unintended effect of increasing levels of taxation.

Let me take a moment to explain why.

Bill C-219 would add proposed paragraphs 60(y) and 60(z), and proposed sections 60.03 and 60.04 to the Income Tax Act. As I noted earlier, after Bill C-219 was introduced, the Income Tax Act was amended by Parliament in ways which affect Bill C-219.

First, paragraph 60(y) of the Income Tax Act was added by subsection 174(1) of the Budget Implementation Act, 2006, which received royal assent on June 22, 2006.

The effect of this new paragraph is to provide a deduction equal to the amount of any universal child care benefit that a taxpayer is required to pay. The deduction is necessary because when the taxpayer initially received the universal child care benefit the amount is required to be treated as income. As such, it is taxable.

However, if the benefit is to be repaid, taxes would be paid on an amount the taxpayer did not get to keep. That is why the deduction is required. Without it, more taxes are paid. Therefore, removing the deduction would have the effect of increasing the taxes paid.

Proposed paragraph 60(y) contained in Bill C-219 would set out the new tax deduction proposed in the bill but would also have the effect of replacing existing paragraph 60(y) in the Income Tax Act. Therefore, as currently drafted, Bill C-219 would result in a greater tax burden.

The same could also be said for proposed paragraph 60(z), contained in Bill C-219. Section 105 of the Budget and Economic Statement Implementation Act, 2007, which received royal assent on December 14, 2007, has already added paragraph 60(z) to the Income Tax Act.

Paragraph 60(z) provides for the deduction of any repayment of any grants or bonds paid under the Canada Disability Savings Act. Bill C-219 would remove that deduction.

The third change to the Income Tax Act to which I wish to draw attention is proposed section 60.03 which was added by section 5(1) of the Budget Implementation Act, 2007, which received royal assent on June 22, 2007.

Section 60.03 of the Income Tax Act allows a couple to split their pension income to permit them to take advantage of a lower effective marginal tax rate.

The proposed section 60.03 of Bill C-219 sets out the evidence taxpayers are required to submit to be eligible for the new tax deduction proposed in the bill, but would also have the effect of replacing the existing section 60.03 in the Income Tax Act. In other words, Bill C-219 would repeal the pension splitting provisions and therefore result in a greater tax burden for seniors.

We have with Bill C-219 an unusual circumstance. A ways and means motion was not required when the bill was introduced in the previous session because the bill did not have the effect of increasing taxes at that time.

However, Bill C-219 amends the Income Tax Act, which has since been amended. The provisions of the Income Tax Act, which are being repealed by Bill C-219, were for the benefit of taxpayers. By removing these provisions, we would be adding to the tax burden. Consequently, I would suggest that the bill should have been preceded by an adoption of a ways of means motion at the time of reintroduction in this session and that the bill is therefore now improperly before the House.

I note that in this session the government tabled ways and means motions and had them adopted by the House before the reinstatement of two government tax increase bills from the previous session, namely Bill C-10, the income tax bill, and Bill C-12, the bankruptcy and wage earner protection bill. The government would have tabled a ways and means motion for any new government bill to increase taxes which would remove provisions added in previous budget bills.

In addition, I suggest that the requirement for a ways and means motion is not limited to the introduction of a bill, but also to any motion that would increase taxation. For example, it is clear that motions to amend bills that have the effect of increasing taxation require a ways and means motion. Citation 982 of the sixth edition of Beauchesne's states that, “No motion can therefore be made to impose a tax”.

It could therefore be argued that the motion for second reading of Bill C-219 is out of order, as the bill would have the effect of increasing the levels of taxation.

Finally, Mr. Speaker, if you were to find that Bill C-219 is now improperly before the House, as I argue, I believe you would be obliged to direct that the order for second reading of the bill be discharged and the bill be withdrawn from the order paper, as you did in the case of Bill C-418 earlier in the session, on November 28, 2007.

Tackling Violent Crime ActGovernment Orders

November 28th, 2007 / 3:25 p.m.


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Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Mr. Speaker, I am pleased to speak in this House on a subject to which I have devoted most of my professional career. When I left university, I became a crown attorney, first at the provincial level, then at the federal level. Then I became a defence attorney. I was even the president of the Association des avocats de la défense. I was the Bâtonnier of the province of Quebec, and then minister of justice and minister of public safety. As you can see, I have long thought about crime in general and effective ways to fight it. I have also thought about the bogus solutions that are sometimes proposed and that have produced disastrous results in neighbouring countries. I would not want this country to follow in its neighbour's footsteps only to end up with the same results.

From the outset, I would say that I think we all share the same goal, and that is to fight crime. Where we differ is in how to go about it. I give my opponents credit and they should give me credit as well, especially since my past has shown that, in situations where I really had power, I could fight crime effectively. Our major victory over the Hells Angels in Quebec is a very clear example of that.

Nevertheless, I often heard from the other side that we were filibustering on Bill C-2. I do not know whether the people who said that know what a filibuster is. In French, the word is “filibusterie”. The word “filibuster” comes from the French word “filibustier”. This tactic was first used in the U.S. senate by an elderly senator who had serious objections to a bill. At the time, there was no limit on speaking time, as there is now in all legislatures, thanks in part to him. To express his disagreement with the bill, he decided to speak without stopping. He even took the Bible and read long excerpts from it, and he kept on speaking.

Today, we have measures to prevent filibusters and systematic obstruction. We have a set amount of time to present our arguments. Filibustering means using every possible procedural means to prolong a debate.

Bill C-2 groups together five bills that were introduced during the previous session, including the bill on bail. The motion at third reading was adopted unanimously, without a vote, on June 5, 2007. I therefore do not see how we could have delayed that part of Bill C-2.

Bill C-32 on impaired driving died on the order paper, even before the report stage. Once again, I do not see how anyone could accuse us of filibustering.

Bill C-27 on dangerous offenders also died on the order paper, in committee. What does it mean when a bill dies on the order paper? It means that ordinarily we should have resumed the deliberations that were interrupted in late spring, but the session was prorogued. The government prorogued it. It was the government that aborted the process these bills had to go through before becoming law. As a result, these bills could not be discussed any further.

The same is true of Bill C-22. Even worse, this bill had been adopted at third reading. Once again, it had received unanimous approval.

We voted in favour of these four bills. Where, then, is the filibustering, this tactic where members try to prolong the debate so that a bill they disagree with goes nowhere?

One major bill remains, Bill C-10, which provides for minimum sentences for offences involving firearms.

We were against it for a number of reasons, but the bill was passed at third reading on May 29, 2007.

The government decided to group these five bills together for one reason: none of the bills elicited systematic opposition. Knowing that we have some objections to Bill C-10, which I will discuss shortly, the government is trying to say that if we vote against Bill C-2 because we are against this part, we are also against all of the other parts.

This argument keeps coming up in this House, and I do not think it is well founded. I cannot understand why all of the parties keep using this argument. I myself have never used it and probably never will. However, when we vote in favour of blocks of legislation—such as the throne speech, which contains numerous measures—that means we support some measures, but are against others.

We weigh the measures we support against those we oppose. We explain why we vote as we do. For a throne speech, when the negatives outweigh the positives, we vote against it even though we support some of the measures it contains. It is utterly unfair to say that since we voted against a group of measures, we must oppose all of the measures in that group.

The same goes for the budget when they criticize us for voting against measures that we actually want to see in place. We voted against the budget because the cons, the measures we did not support, outweighed the pros. The same applies when we vote for a budget, which does not necessarily mean that we support every single measure in it.

The argument is a faulty one, but the government has come to rely on this tactic to influence public opinion during the coming election, an election that the government seems to want as soon as possible. For example, they will say that we are against changing the age of consent, even though the bill passed unanimously, and so on.

Let us get to the heart of the matter: minimum penalties. We have some objections in principle to minimum penalties. Based on my personal experience, I believe that minimum penalties do not influence crime rates. I think many people who have long been studying crime would agree with me.

First, I think that no member in this House would be able to tell me how many minimum penalties there are in the Criminal Code. People do not know the minimum penalties. In Canada, the most glaring example is marijuana. I passed the Bar exam in 1966. I started working as a crown attorney at the provincial level, and that was the first time I heard talk of marijuana. There was not much at the time. Throughout university, I do not remember hearing about anyone smoking pot. I did not even know that expression, and I was obviously not the only one.

I then became a crown attorney at the federal level and I started to work on cases related to these issues. Let us talk about marijuana and hashish from Indian hemp. The Indian hemp growing here had no hallucinogenic properties. So at the time, all marijuana, hashish and Indian hemp that people have been smoking since the late 1960s to the present day came from somewhere else.

Does anyone know what the minimum penalty was for importing marijuana into Canada? I am sure that people do not know, just like people at the time did not. The minimum penalty was seven years in prison for importing marijuana. It is one of the harshest sentences in the Criminal Code. But it was while we had that minimum penalty that marijuana use started growing, reaching peaks in the 1980s.

Since that time, levels of marijuana use have remained very high. We can clearly see that minimum sentences had little effect. The problem is that people do not know what the minimum sentences are.

On the other hand, we have an example of success, but it still needs to be taken a little further. I am referring to impaired driving. The minimum sentences have not been increased, but we have seen awareness campaigns and increased education. People know that it is a crime to drive while impaired. I remember when I finished my studies and I was buying my first car, no one talked about it. Our attitude was to consider if the person was capable of driving and we did not really see it as a criminal act. This is no longer the case.

The public has become much more aware and we have seen a decrease in impaired driving charges. In fact, they have decreased significantly. When authorities began conducting the first tests on our roads to see if people were driving while impaired, it was not uncommon to stop about 10% of drivers. When road tests are done today, with the same sample chosen in the same manner, less than 1% of drivers are found to be impaired. People have become more aware. I think of my children who drive and who, when they go to parties, have a designated driver, everyone taking their turn. These are habits they have learned without the fear of prison.

Thus, as we can see, the simple fear of a sentence does not have an impact. Plus, people do not know what the minimum sentences are. We must know a little about how the criminal mind works. I practised criminal law long enough to know a little about the subject. Does anyone really believe that criminals think seriously about the sentence they might have to serve if they are caught? First of all, most crimes are committed on impulse. What people want to avoid and what prevents them from committing crime is not the penalty, but rather the fear of getting caught. If there is a good chance they will be caught, people change their behaviour.

I also had another experience in my personal and professional life. When I began practising law in Montreal, it seemed to be the capital of armed robbery. Some of those listening may remember the famous movie called Monica la mitraille. It was a very good movie. I do not remember her real name, but I did see her in court. She was the leader of one of the groups who committed armed robberies in Montreal. There was about one a day at the time.

Does anyone remember the last armed bank robbery committed last year? I am convinced that almost no one does. Is it because thieves are now more afraid of the sentence than back when it was harsher? Why did they do it? Why has the number of these robberies decreased considerably? It is because of intelligent preventive measures. Banks are built differently and there is no longer access to large amounts of money. The risk of being caught in relation to the anticipated profits is not worth it. Furthermore, all kinds of measures have been put in place in banks and the efforts of bankers has also decreased the menace of armed bank robberies.

Putting in place a series of measures resulted in a true decrease in crime. Fear does not stop people from committing crimes.

The third example I can give is the death penalty. We abolished the death penalty in Canada 25 years ago. Since then the number of homicides has declined steadily rather than increasing.

I am not saying that we should not have sentences. We must have sentences and for certain crimes in certain circumstances they must be severe. However, the use of minimum sentences does not work.

I have another philosophical problem with minimum sentences and it is worth talking about. A judge hears a case and arguments, then weighs all the factors that need to be taken into consideration when handing down a sentence, such as individual and general deterrents, the seriousness of the charge, the seriousness of the crime, the circumstances under which the accused committed the crime, his involvement in the crime, recidivism if any, his home life, his responsibility or the influence others may have had, and so forth.

Implementing minimum sentences forces a judge, who went over all these circumstances in his heart and soul, to conclude that, even though that person should get 18 months in jail, the minimum sentence is 3 years. He is required by law, in that case, to commit an injustice. I have heard judges say that when they hand down minimum sentences.

We often forget that when we want to impose minimum sentences we are thinking about the worst offenders. When I listen to the examples given by the members opposite who defend this bill, I know full well they are thinking about the worst cases. We have to realize that minimum sentences do not apply just to the worst cases, but also to less serious cases.

I will give an example that I witnessed in my career. This will show that, although the members opposite claim that seven-year minimum sentences are not being handed out, a number of people have, at one point, served seven years in prison for importing marijuana.

I remember a young woman whose capacities were diminished after an accident. She had a daughter and her husband had left her. She met a charming, smooth talking American fellow with an education, like her, and she fell for him. He was willing to live with her handicap. He was very attentive towards her. They were in love. He seemed to have a income, without being very wealthy. One day, he left, saying that he would be sending her parcels. It was not immediately clear to her what he was talking about. Parcels did start arriving. Based on telephone conversations between them, it is obvious that she suspected that the parcels contained something illegal, because he asked that she not open them. She did not import anything. She simply stored parcels in her home. But because she suspected that there was something illegal going on, under the doctrine of wilful blindness, she was undoubtedly guilty, like him, of importing narcotics.

I wonder what sentences my colleagues in the House would hand down to that man and that woman respectively. Does it not seem profoundly unfair that the same sentence be imposed on both of them just because the minimum sentence prescribed is seven years? Since the offence involved relatively small amounts of hashish, the least dangerous drug, he may not have deserved a seven year sentence and she certainly did not. This goes to show how minimum sentences result in unfair situations. Different situations have to be considered.

In addition, the examples of cases raised in the House often appeared very serious, based on the two or three reasons for which the judge imposed such sentences. I doubt, however, that this was the case. The judge probably cited 10 reasons or so, which are not listed, for coming to the decision which is described to us as unacceptable. It is entirely possible that a few of the thousands of sentences rendered every day in Canada seem too heavy handed. In the case of a truly unacceptable sentence, the potential remedy would not come from Parliament, as is suggested by our discussions, but from the appeal courts.

In none of the arguments put forward in support of increasing sentences was an unreasonable decision by an appeal court ever mentioned.

Finally, the most important thing to know concerning firearms: in the United States, they incarcerate seven times as many people as we do, and guns roam freely, so to speak. As a result, three times—

Tackling Violent Crime ActGovernment Orders

November 26th, 2007 / 12:55 p.m.


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Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, I am pleased to have this opportunity to address the bill that amends the Criminal Code and makes consequential amendments to other acts. As you know, I come from a region, Saguenay—Lac-Saint-Jean, where the crime rate is very low. Still, I want to take part in today's debate to raise an issue that is a major source of concern for people in my region and in my riding.

It goes without saying that the Bloc Québécois worked actively and positively in committee to improve some of the provisions of Bill C-2. Incidentally, I want to congratulate in particular the hon. member for Hochelaga, who did a great job at the Standing Committee on Justice and Human Rights, and also the hon. member for Châteauguay—Saint-Constant, for her contribution.

Based on what we heard from a large number of witnesses, it is obvious that many Quebeckers and Canadians want some changes to the current justice model.

The committee's consultation process and the message conveyed by our fellow citizens showed two things. First, a large part of the population is concerned about the current justice system and, second, it does not want an American type of justice system.

We believe that the American justice system has produced disastrous results. The Bloc Québécois deemed appropriate to propose a series of amendments to Bill C-2. Unfortunately, the Conservative government kept none of the six amendments that we proposed, even though some of them enjoyed the unanimous support of the public security ministers in Quebec and in the provinces. It is unfortunate that the Conservative government does not take into consideration the fact that this is a minority government.

I would like to briefly mention the six amendments that reflect Quebeckers' values. In my region, the Minister of Labour, who represents the riding next to mine, said that Bill C-2 reflects the public's will. The Minister of Labour should have said, rather, that Bill C-2 reflects the ideology of the minority Conservative government. That is what he should have said first and foremost.

The Bloc suggested, therefore, that parole after one-sixth of the sentence has been served should be abolished. We should also put an end to virtually automatic statutory release after an inmate has served two-thirds of his sentence. The Bloc proposed another amendment as well to the effect that there should be a formal evaluation by a professional of an inmate’s overall risk of re-offending.

In addition, the Bloc suggested that onus of proof should be reversed in the case of criminals found guilty of the offences of loan-sharking, procuring, robbery, fraud over $5,000 and counterfeiting in order to facilitate the seizure of assets that are the product of crime.

We also said that the police needed better tools to deal with the problem of street gangs, especially longer warrants for investigations carried out by means of tailing with a GPS.

It should be against the law to wear any symbol, sign or other mark identifying the wearer as a member of a criminal organization that has been recognized as such by the courts.

Finally, we should eliminate the rule that the time spent in pretrial detention counts double when sentences are determined. Sentences should be deemed to have started on the first day of detention, rather than when sentences are passed.

The minister labour thinks that Canadians want new justice legislation. I agree with him to the extent that the Bloc supports the principle of these changes. This does not mean, however, that Quebeckers and Canadians agree with everything in Bill C-2. When bills are introduced, some changes can be made without changing them completely. We need to adapt to the realities of life in Quebec and Canada.

As I said, the Bloc Québécois supports Bill C-2 in principle and takes crime very seriously. However, when five bills are amalgamated into one, it is only to be expected that some doubts will arise. The Conservative minority government has a duty not to play partisan politics with an issue as important as the justice system.

The Bloc Québécois believes that what really needs to be attacked first and foremost are poverty, inequality and exclusion. They aggravate the frustrations and crime in our communities if not dealt with by the government on a priority basis.

The Bloc Québécois knows very well that many changes must be made to the current justice system and that some adjustments to the Criminal Code are essential. The government has a duty to take action and use the tools at its disposal to enable Quebeckers and Canadians to live safely and peacefully.

The measures introduced must have a positive impact on crime. They must be more than rhetoric or a campaign based on fear. We must avoid copying the American model, which yielded much less positive results than anticipated.

Crime has been steadily decreasing in Quebec, as it has in Canada for the last 15 or so years. Statistics Canada recent stated that in 2006, the overall crime rate in this country hit its lowest in 25 years. Quebec had its lowest homicide rate since 1962.

Unfortunately, there will always be crime in our society. We can never fully eradicate all crime. But statistics show that the current approach should not be discarded in favour of the US model. This means that we must look for improvements while keeping an open mind about the realities facing Quebeckers and Canadians.

In the past, Quebeckers have relied on individualized justice based on a judicial process that is flexible and suited to each case, with positive results. The homicide rate in Quebec is one of the lowest in Canada and is four times lower than in the United States.

Bill C-2 brings together old bills that we largely supported, such as Bill C-10, Bill C-22, Bill C-27, Bill C-32 and Bill C-35.

Justice is an important issue, and this model must truly correspond to the realities facing Quebec and Canada.

In conclusion, I would like to say that Quebeckers and my constituents from Chicoutimi—Le Fjord do not want a justice system based on the U.S. system.

Tackling Violent Crime ActGovernment Orders

November 26th, 2007 / noon


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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Mr. Speaker, it is my pleasure, at report stage of Bill C-2, to deliver some comments to the omnibus crime bill.

I have had the experience of serving on the Standing Committee on Justice and Human Rights and also the legislative committees that were involved with the former Bills C-10, C-22, C-27, C-32, C-35 and C-23, which is not part of the omnibus bill.

I speak with experience at least with respect to the bills and I understand how we came to be here today to speak about what the bill contains. A lot of discussion took place in the debates of the House and in committee with respect to the direction we should take with respect to our criminal justice.

It is important for us, as parliamentarians, to consider what we do when we amend the Criminal Code and its corollary acts. We are dealing with the Criminal Code. It is an organic document. It changes with the times. It is copied and exemplified by one of Canada's justice ministers and prime ministers, Sir John Thompson, from eastern Canada. It has certainly changed with the times as has our society.

In the 1890s the crimes that were top priority might have been things like cattle and horse theft, murder and some common ones. However, with the changing times, we have seen a proliferation of gang related violence, e-crimes, things that would not have existed at the turn of the century.

The point of raising that is as our society changes and the code changes, we owe it to this place, to the committees, to the law enforcement official, which include prosecutors, policemen, probation workers, corrections officers, people in the correction system and judges, quite a fraternity of people involved in the criminal justice system, to say that we looked at these various laws. We looked at how Canada was changing and at the end, we did the very best we could to keep track of what tools would be best to tackle the new problems that exist in society. It is not as if we are inventing new aspects of law. Many of these bills represent an evolution or a progression of laws that already exist.

Just briefly on the guts of the bill, if you like, Mr. Speaker, Bill C-10, which is now part of C-2, was of course dealing with the mandatory minimum provisions which were increased by the introduction of this bill, but they were not increased as much as the government had wanted them to be originally.

I would like to thank the hon. member for Windsor—Tecumseh and the opposition Bloc Québécois critic on the committee as well as the Liberal members on the committee who fought very hard to have some sense reign over the debate with respect to the evidence that was adduced at the committee hearings regarding the efficacy of mandatory minimums in general.

A review is in order. Mandatory minimums existed before the Conservative government was elected. Mandatory minimums were in place for serious crimes with the known aspect of repeat offenders and with some hope, which studies will show one way or the other, that there might be a deterrent and a safety to the public aspect of mandatory minimums.

At least on this side we joined with the Conservatives who, I would say, were very sparse in their acknowledgement that mandatory minimums existed before they came into office, but we joined with them and said that these are good tools for the law enforcement agencies and good tools in the realm of criminal justice.

It is a matter always of how far we go. How far do we go in disciplining our children? Do we take away their favourite toy? Do we ban them from seeing their friends for two weeks? Are we less severe or more severe? Many of us are parents and we deal with this every day. It is our form of the justice system that rules in our own house.

With respect to mandatory minimums, it is a question of calibrating to what extent the mandatory minimums are useful, to what extent do they work, and to what extend should they be increased, if at all.

During the debate process we were very successful in getting the government to get off its basic premise, which is if it is good for the six o'clock news and sounds robust, steady and law and orderish, then it has to be good in the Criminal Code. That is where the slip from the cup to the lip occurred, where it was obvious 90% of the witnesses were saying that the severe mandatory minimums that the government side were proposing would be inefficacious.

We can be as tough as we want, but if it does not work, if it does not make society safer, then we have not posited a good solution to the problems that face our community, and that was the case when we looked at mandatory minimums.

The happy medium that exists in Bill C-2 I think will be borne out, but it is very important to remember that this is an organic process and we could be back here some day soon, perhaps, looking at mandatory minimums in general.

How more timely could it be than in today's Ottawa Citizen, a report called “Unlocking America” is reviewed. In this report, it makes it very clear that the mandatory minimums, one of the many tools used by the American government from the 1970s on when it was felt that the rise in criminal activity was abhorrent, was not as effective as the Americans would have hope it would have been. It left the United States with 2.2 million people behind bars, more than China. The nine authors, leading U.S. criminologists, said that they were convinced that they needed a different strategy.

I am happy to report that as a result of the efforts of the NDP, Bloc and the Liberal Party in general at committee, we did not go as far as the Conservative government wanted to, which was close to where the United States had been which now New York State and New York City admits, is ineffective.

The three effects of imprisonment, and emphasis only on imprisonment, at the cost of crime prevention dollars, if you like, Mr. Speaker, is that the heavy, excessive incarceration hits minorities very hard. In the United States, 60% of the prison population is made up of Blacks and Latinos.

We heard evidence at our committee that there is a preponderance, an over-exaggerated percentage, of first nations and aboriginal people in our jail system, according to their population, which is deplorable. It is overwhelming and undisputed that the negative side effects of incarceration outweigh the potential. That is the two bits on Bill C-10,

On the other bill, Bill C-22, the close in age exemption, was never brought up. Despite all the rhetoric from the government, nothing would save Bill C-22. The issue of sexual consent being given by a person of tender years has never been put forward by any member of the opposition while the Liberal Party was in power.

The close in age exemption was never put in there, so for members of the opposite side to say that finally we dealt with the issue of sexual exploitation of 14 year olds is simply not accurate. The close in age exemption, five years between a person of the age specified, will save many relationships that should not be criminalized.

Lastly, I noted that Bill C-23 was not included in Bill C-2. I have to wonder why.

I live in Acadia. And Bill C-23 included many improvements with respect to choosing the first language of prosecutors during a trial. French is the language spoken by most people in my province. That element was very important to us in Acadia, but the government overlooked this fact.

Why did the government turn its back on the francophone people of New Brunswick in this country?