Bill C-50 (Historical)

Budget Implementation Act, 2008

An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget

Part 1 enacts a number of income tax measures proposed in the February 26, 2008 Budget. In particular, it
(a) introduces the new Tax-Free Savings Account, effective for the 2009 and subsequent taxation years;
(b) extends by 10 years the maximum number of years during which a Registered Education Savings Plan may be open and accept contributions and provides a six-month grace period for making educational assistance payments, generally effective for the 2008 and subsequent taxation years;
(c) increases the amount of the Northern Residents Deduction, effective for the 2008 and subsequent taxation years;
(d) extends the application of the Medical Expense Tax Credit to certain devices and expenses and better targets the requirement that eligible medications must require a prescription by an eligible medical practitioner, generally effective for the 2008 and subsequent taxation years;
(e) amends the provisions relating to Registered Disability Savings Plans so that the rule forcing the mandatory collapse of a plan be invoked only where the beneficiary’s condition has factually improved to the extent that the beneficiary no longer qualifies for the disability tax credit, effective for the 2008 and subsequent taxation years;
(f) extends by one year the Mineral Exploration Tax Credit;
(g) extends the capital gains tax exemption for certain gifts of listed securities to also apply in respect of certain exchangeable shares and partnership interests, effective for gifts made on or after February 26, 2008;
(h) adjusts the rate of the Dividend Tax Credit to reflect corporate income tax rate reductions, beginning in 2010;
(i) increases the benefits available under the Scientific Research and Experimental Development Program, generally effective for taxation years that end on or after February 26, 2008;
(j) amends the penalty for failures to remit source deductions when due in order to better reflect the degree to which the remittances are late, and excuses early remittances from the mandatory financial institution remittance rules, effective for remittances due on or after February 26, 2008;
(k) reduces the paper burden associated with dispositions by non-residents of certain treaty-protected property, effective for dispositions that occur after 2008;
(l) ensures that the enhanced tax incentive for Donations of Medicines is properly targeted, effective for gifts made after June, 2008; and
(m) modifies the provincial component of the SIFT tax to better reflect actual provincial tax rates, effective for the 2009 and subsequent taxation years.
Part 1 also implements income tax measures to preserve the fiscal plan as set out in the February 26, 2008 Budget.
Part 2 amends the Excise Act, the Excise Act, 2001 and the Customs Tariff to implement measures aimed at improving tobacco tax enforcement and compliance, adjusting excise duties on tobacco sticks and on tobacco for duty-free markets and equalizing the excise treatment of imitation spirits and other spirits.
Part 3 implements goods and services tax and harmonized sales tax (GST/HST) measures proposed or referenced in the February 26, 2008 Budget. It amends the Excise Tax Act to expand the list of zero-rated medical and assistive devices and to ensure that all supplies of drugs sold to final consumers under prescription are zero-rated. It also amends that Act to exempt all nursing services rendered within a nurse-patient relationship, prescribed health care services ordered by an authorized registered nurse and, if certain conditions are met, a service of training that is specially designed to assist individuals in coping with the effects of their disorder or disability. It further amends that Act to ensure that a variety of professional health services maintain their GST/HST exempt status if those services are rendered by a health professional through a corporation. Additional amendments to that Act clarify the GST/HST treatment of long-term residential care facilities. Those amendments are intended to ensure that the GST New Residential Rental Property Rebate is available, and the GST/HST exempt treatment for residential leases and sales of used residential rental buildings applies, to long-term residential care facilities on a prospective basis and on past transactions if certain circumstances exist. This Part also makes amendments to relieve the GST/HST on most lease payments for land on which wind or solar power equipment used to generate electricity is situated.
Part 4 dissolves the Canada Millennium Scholarship Foundation, provides for the Foundation to fulfill certain obligations and deposit its remaining assets in the Consolidated Revenue Fund, and repeals Part 1 of the Budget Implementation Act, 1998. It also makes consequential amendments to other Acts.
Part 5 amends the Canada Student Financial Assistance Act and the Canada Student Loans Act to implement measures concerning financial assistance for students, including the following:
(a) authorizing the establishment and operation, by regulation, of electronic systems to allow on-line services to be offered to students;
(b) providing for the establishment and operation, by regulation, of a program to provide for the repayment of student loans for classes of borrowers who are encountering financial difficulties;
(c) allowing part-time students to defer their student loan payments for as long as they continue to be students, and providing, by regulation, for other circumstances in which student loan payments may be deferred; and
(d) allowing the Minister of Human Resources and Skills Development to take remedial action if any error is made in the administration of the two Acts and in certain cases, to waive requirements imposed on students to avoid undue hardship to them.
Part 6 amends the Immigration and Refugee Protection Act to authorize the Minister of Citizenship and Immigration to give instructions with respect to the processing of certain applications and requests in order to support the attainment of the immigration goals established by the Government of Canada.
Part 7 enacts the Canada Employment Insurance Financing Board Act. The mandate of the Board is to set the Employment Insurance premium rate and to manage a financial reserve. That Part also amends the Employment Insurance Act and makes consequential amendments to other Acts.
Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the recruitment of front line police officers, capital investment in public transit infrastructure and carbon capture and storage. It also authorizes Canada Social Transfer transition protection payments.
Part 9 authorizes payments to be made out of the Consolidated Revenue Fund to Genome Canada, the Mental Health Commission of Canada, The Gairdner Foundation and the University of Calgary.
Part 10 amends various Acts.

Budget Implementation Act, 2008

[Martha Hall Findlay, Liberal, Willowdale, ON]

Mr. Speaker, I thank the hon. member for his welcome.

I am not sure if it is procedure to ask a question in response to a question. When he says he disagrees completely with my position, he then denies me the ability to address any of his concerns because he simply refuses to discuss content.

I would ask the hon. member to ask a question on the content. If he supplies one, I might be able to answer.

[Dean Del Mastro, Conservative, Peterborough, ON]

Mr. Speaker, I will address some of the content of the member's speech.

This government has paid down record amounts of debt and reduced taxes. Since the member seems to feel that paying down debt and reducing taxes is not a good thing, what does she propose in a budget? Perhaps increasing the GST to 7% might be something she would recommend the Liberals do. Maybe she would like to reduce the amount of money we spend on Canada's military, or child care, two key areas where the government has invested money, which has increased the overall budget.

What might she propose to do about things? Will she recommend that Liberals increase the GST in their next platform?

[Martha Hall Findlay, Liberal, Willowdale, ON]

Mr. Speaker, I believe I specifically indicated some of the things Liberals would have preferred to see in this budget, including repeated suggestions that of the $10 billion allocated to pay down the debt, we encourage the government to use $7 billion to invest in infrastructure. We specifically suggested that amount because we very strongly feel that at least $3 billion should be kept as a contingency. The government does not even believe in a contingency.

If the member has any other specific questions about the content of my speech, I would welcome them.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, the member opposite, and the Conservatives, got the facts wrong again. He asked if she would vote against the budget because of all these serious immigration issues in it. However, those issues were not in the budget. They did not come out until the little administration bill, which puts the budget into place.

Canadians across the country are outraged at that and have written their members of Parliament. On budget day, when major changes are announced for the country, nothing was mentioned about immigration. Yet when minor administrative amendments came out, which will put the budget into effect and which is probably almost totally unconstitutional, they were shocked.

Could the member comment on the totally anti-democratic actions taken by the government in the financial administration bill?

[Martha Hall Findlay, Liberal, Willowdale, ON]

Mr. Speaker, I will reiterate a couple of key points I made in my speech. The inclusion of these immigration provisions in the budget, as the hon. member has said, is completely inappropriate. They were not in the original one. This is a blatant Americanization of the process, to include something that the government knew would be contentious into something that otherwise we were all prepared to allow to go forward. We will have to see what happens.

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, before I get into the budget implementation bill, I would like to take the opportunity to congratulate the member for Willowdale for her election. I am confident she will do a tremendous job, not only in serving her constituents but making our country a better country as well.

I have listened to the debate throughout the day. Instead of sometimes focusing on the points in the budget, people started talking about what the Liberals did, what the Liberals did not do. The NDP bashed the Liberals. The member for Peterborough bashed the Liberals. The Conservative Party bashed the Liberals. Everyone was bashing the Liberals. However, it is not our budget; it is the Conservative budget.

Members have used a lot of quotes so then let me use some.

Earlier the Minister of the Environment said that he was disappointed that nothing had been said about the environment. He starting quoting and talking about how important it was. At least the Liberals believe the environment is one of the most important issues, along with health care and our other social responsibilities.

I would like to use some quotes such as “Carbon dioxide is not a pollutant”. Who said that? The current Prime Minister, and it is in Hansard, October 11, 2002.

Another quote is, “Carbon dioxide does not cause or contribute to smog, and the Kyoto treaty would do nothing to reduce or prevent smog”. Who said that? The current Prime Minister, as reported in the Toronto Star, on June 10, 2004.

Another quote is, “the Kyoto protocol does not deal with critical environmental issues”. Who said that? The current Prime Minister. That was in his address—

[James Bezan, Conservative, Selkirk—Interlake, MB]

Mr. Speaker, I rise on a point of order. As you know, we are discussing Bill C-50 and the amendment to Bill C-50 put forward by the NDP. I know there is some latitude usually given on second reading, but we are talking about the budget implementation bill. I ask the member to get on topic and on point and debate Bill C-50.

[The Acting Speaker, Conservative, Andrew Scheer]

I am sure the hon. member for Scarborough Centre will try to keep his remarks relevant to the bill.

[John Cannis, Liberal, Scarborough Centre, ON]

It is relevant, Mr. Speaker. The Minister of the Environment brought it up, so if the member cannot take the heat, he should get out of the kitchen.

The next quote is:

My party's position on the Kyoto Protocol is clear and has been for a long time. We will oppose ratification of the Kyoto Protocol and its targets. We will work with the provinces and others to discourage the implementation of those targets. And we will rescind the targets when we have the opportunity to do so.

Who said that? It was the current Prime Minister, as reported in the Ottawa Citizen, on November 22, 2002.

That is the end of my quotes on the environment.

On the environment, the Conservatives did do one thing. They passed out light bulbs. That was how they were going to address the environmental issue.

It is a budget, and we are talking about various aspects within the budget. The Minister of Finance proudly stood up and talked about having to reduce taxes, and I agree. What the Liberals did, as my colleague from Willowdale said, was approach it in a balanced way. We reduced taxes, we reduced the debt and we put money toward programs that Canadians asked us to invest in, like child care, health care, post-secondary education, our cities, et cetera.

In the previous budget, the Conservatives hummed and hawed about how to reduce taxes. A Canadian sent us his tax form. He asked why the Liberals had reduced his taxes to 15% and now he paid 15.25%. In this budget, they have reduced it back to 15%. By doing this, they say they have lowered taxes. I do not know what math the finance minister learned, but I know that one and one equals two and that one minus three equals two.

We know his record when he was the finance minister in Ontario. The member for Willowdale alluded to the debt with which he left Ontario, unbeknownst to the incoming government.

The finance minister also did one shameful act, which Canadians are still paying for today, and that was the income trust fiasco. When the Liberals looked at it, we knew we had to address it, but we never made any decisions because of an election. This cost Canadians. Why? Because of the NDP.

Today the NDP has the audacity to stand and ask where the money is for social housing, or for the environment or for post-secondary education. Under the former Liberal prime minister, there were $1.6 billion for affordable housing, $1.5 billion for education, $1 billion for the environment and half a billion dollars for foreign aid. I stood up in this honourable House and I supported those recommendations. We applauded them.

What did members of the NDP do? They betrayed not the Liberal Party; they betrayed their constituents, who today are asking what happened to that money.

My colleague earlier alluded to support for child care. This is not child care. This is handing somebody $100 a month, which is taxable.

The member for Peterborough talked earlier about the money which was stolen. It is unfortunate he uses that type of language. Judge Gomery brought everything out and the culprits who indeed took money from Canadians were put before the courts and were charged, convicted and imprisoned.

At least we respected Judge Gomery's results. However, that party used Judge Gomery. Before committee, Judge Gomery expressed his disappointment that all the recommendations he put forward were thrown out by the Conservatives. Part of their victory had to do with Judge Gomery's commission.

The party talks about supporting our military. I have said before, I am a son of a veteran as well. We have stood in the defence committee with the chair, for whom I have great respect. We have done everything we can to support our military. Yesterday we had a vote on a motion from the member for Kitchener—Waterloo about lowering the flag on the Peace Tower. What a shameful display from the Conservative Party.

When the member for Mississauga—Streetsville has to go to the polls the next time and visit his constituents, he will have to answer why he betrayed them. He ran on a policy saying he was going to do this and he was going to do that, and the next thing we knew he walked over to the government. We Canadians are still waiting to see the famous report he put together when he went over to Pakistan. We still want to see it. We want to know how much it cost Canadians.

Anyway, I do not want to move away from the budget speech. Here is what one gentleman said some time ago, and I was really impressed, I must say, so I will quote him. He said that there is no greater lie “than a promise not kept”. Do members know who said that?

[An hon. member]

The current Prime Minister.

[John Cannis, Liberal, Scarborough Centre, ON]

No, the current Progressive Conservatives of Newfoundland and Labrador, along with the Prime Minister, of course, because the Prime Minister went out and said to all Canadians that the Liberals wanted to tax Canadians' income trusts, that there was no way for seniors, for everybody; we swear, he said, and he signed it. What was the first thing he did? He went back on his word.

[An hon. member]

Absolutely.

[John Cannis, Liberal, Scarborough Centre, ON]

He went back on his word. It was similar to the Chuck Cadman matter. We look him in the face and he says trust us. It is on tape. It is not something we said. It is on tape, so we are not even making it up.

The list goes on, but let me tell members where the government has failed. When we ask Canadians today what is the most important issue for them, they say health care. The Conservative government has put zero into health care. As a matter of fact, let me tell members what the Minister of Health said about the last budget when he was asked the question. He said the Conservatives would continue the funding that the Liberals put in. That is what they are going to do.

As the Liberal team, we stand on our record. We took over a country that was unofficially bankrupt, we straightened out the books, and we had surpluses never before seen in the history of our country. It reminds me of what a presidential candidate said: that the Clintons took care of the mess, the Bushes destroyed it, and now it is going to take Clintons to correct it.

The terrible Tories--which they are not, they are Reformers--really did a number on this country, whereas we took a mess, as Premier McGuinty has done, and corrected it, and now the Conservatives are about to destroy it.

I have one little closing statement. It is embarrassing to have the finance minister, as a member from Ontario, bashing Ontario. Shame on him.

[Ed Komarnicki, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, if the member is wondering why everyone is picking on the Liberal Party, and why Canadians are picking on the Liberal Party, it is because we have a backlog of 800,000 in the immigration system. The wait times are long. They are up to six years. The Liberals voted against our $1.3 billion in new settlement funding. They voted against the foreign credentials referral office. They voted against cutting the immigration head tax of $975. Those are some reasons why everyone is picking on the Liberal Party.

Let me ask if the member knows who said the following:

The world looks to Canada like we have this great immigration system...but you're not doing the system justice by taking applications that aren't going to get processed for years and years and years.

It doesn't make any sense to us to be continually taking these [applications]...the reality is we need to change the system....

We need an immigration system that is in this regard more flexible and responds to employers, the provinces and our cities.

Who said that? It was said by the member for York West, the former Liberal immigration minister. I wonder if the member would agree with what the former Liberal minister said about what needs to be done in our system.

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, in regard to what the then immigration minister, the member for York West, was saying, she simply was being honest, saying that every individual has the right to apply no matter what the circumstances, even if it is declined once.

At least we Liberals like to believe we live in a democracy, unlike the Conservative Party, where the members have to get permission before they go out to speak, and unlike its candidates, who most recently were not even allowed to speak to the media. The member for Willowdale knows that very well. I remember her commenting on television that she could not even get any debate. The media was going around to ask them questions and they did not pipe up; they were silenced.

The former immigration minister was correct. All these moneys the member is talking about, this government invested in labour--