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.

Motions in Amendment

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, if these changes are so important, why are they buried in a budget bill? It is quite scandalous that when Bill C-50, the budget bill, came in, we suddenly found there were—

[Ted Menzies, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, on behalf of the government, I am pleased to rise to speak in absolute and sincere opposition to the proposed amendments to Bill C-50, amendments that would seek to effectively delete the government's proposed improvements, and I emphasize improvements, to the Immigration and Refugee Protection Act, which are contained in part 6 of Bill C-50.

I note that the amendments originate with my colleagues in the Bloc Québécois, but they are supported by my colleagues down the way in the NDP. Sadly, this is yet another occasion where the NDP, despite its rhetoric, will vote against crucial measures proposed by this Conservative government to help immigrants.

The NDP's track record on immigration is a sorry one at best. In this Parliament alone, the NDP has voted against $1.3 billion for settlement funding, after a funding freeze of 10 years under the previous government. The NDP also voted against the establishment of a foreign credentials referral office. It voted against cutting the immigrant head tax, which our government cut in half, despite the NDP.

The NDP has even voted against providing increased protections for vulnerable foreign workers. Its continued opposition to Bill C-17 is preventing vulnerable foreign workers, who could be subject to abuse and exploitation, from getting protection that they need and deserve.

Despite their talk, the New Democrats do not step up to help newcomers to Canada. This Conservative government, however, does and continues to do so with our immigration changes proposed in Bill C-50.

Our proposed amendments in part 6 of the budget implementation act addressed the legislative roots of Canada's broken and overloaded immigration system. Neither Canadians nor prospective newcomers to our country benefit from an immigration system that, due to its systemic deficiencies, forces prospective immigrants to wait for up to six years before their applications are looked at, let alone processed.

The current system is especially problematic, since by 2012 fully 100% of our net labour growth will come from immigration. The systemic flaws in the current immigration system continue to hinder our country's ability to meet the needs of newcomers and the social and economic needs of our country. Urgent action is required. That is why changes to the Immigration and Refugee Protection Act were included in budget 2008.

“Advantage Canada” 2006 identified that Canada needed the most flexible workforce in the world, an issue that is critical to Canada's future. Without our proposed legislative changes, the uncontrolled growth of the immigration backlog will continue, the backlog we inherited, by the way, from the previous Liberal government, which currently stands at over 900,000 people waiting in line to come to Canada.

This backlog is unacceptable. Urgent action must be taken so the backlog can be reduced. A new and more efficient processing system is desperately needed, a system that is both responsive to the needs of the newcomers and the needs of Canada.

To move toward accomplishing these goals, the legislative changes contained in part 6 of Bill C-50 are absolutely essential. The fact is Canada faces serious international competition in attracting people with the talents and the skills we need to ensure our country's continued growth and prosperity.

Compared to the United Kingdom, Australia and New Zealand, we are the only country that does not use some kind of occupational filter to screen, code or prioritize skilled worker applications. Compared to other countries, Canada's system is simply not flexible enough. While Australia and New Zealand are processing applications in six to twelve months, if nothing is done, processing times in Canada will reach ten years by 2012. As more people submit applications and our current obligation to process every application to completion remains, the backlog continues to grow and Canada's labour shortages worsen.

If we do nothing to address the problem, we risk having families wait even longer to be reunited with their loved ones and we risk losing the people our country needs from other countries. Because those countries are in fierce competition with us for the skills and talents that newcomers bring, our government believes that without this legislative intervention the system is destined to collapse under its own weight.

It is important to note that the legislative changes contained within Bill C-50 are but one aspect of the government's approach to addressing the backlog problem. These legislative changes would prevent the backlog from growing, but let me be crystal clear on two key points about these proposals.

Contrary to the misinformation that is out there, we will not be placing any limits on the number of applicants that we will accept. Canada remains open to immigration and anyone can still apply.

However, under the proposed legislative changes, we will not have to process every application. Those applications not processed in a given year can be held for future consideration or returned to the applicant with a refund of their application fee. Individuals in this category would be welcome to reapply. The result would be that the backlog will stop growing and actually start to come down.

This flexibility in managing the backlog would accomplish three things. It would help reduce the backlog and ensure that immigrants have the jobs they need to succeed and allow our country to continue to grow and prosper.

Once these changes are implemented, the immigration backlog will stop growing and will begin to decrease the long lineup waiting news on entry to Canada through other important measures our government is taking.

Among other things we have committed over $109 million over five years to bring down the backlog.

Other steps that would be taken include: organizing visa officer “SWAT teams” to speed up processing in parts of the world where wait times are the longest; providing additional resources to these busy missions; helping build capacity to meet future levels and increasing demand; and coding applications in the existing backlog with the appropriate national occupational classification code and destination province where they are requesting to reside, so applicants with the skills we need can be referred to provinces for possible selection by provincial nominee programs.

Part 6 of Bill C-50, when combined with these non-legislative measures funded in budget 2008 and beyond, would act to control and reduce the backlog and speed up processing. Because immigration is so important to Canada's future, we need a modern and renewed vision for immigration.

These proposed changes are part of a vision that involves creating a more responsive immigration system, one that allows us to welcome more immigrants while helping them get the jobs they need and building better lives for themselves and their families, because their success is our success.

Urgent action is required. Part 6 of Bill C-50 and all of budget 2008 would deliver this much needed action.

I end by expressing my gratitude to my colleagues opposite in the Liberal Party who have so graciously helped our Conservative government ensure speedy passage of our budget legislation through the House. I am pleased the Liberal Party supports our proposed immigration measures and budget 2008. I am pleased the Liberal Party recognizes that budget 2008 and Bill C-50 are full of positive measures for all Canadians, those present now and those soon to be here as well.

I encourage all members of the House, especially my colleagues in the Liberal Party, to defeat these detrimental amendments to Bill C-50 and continue to work toward its speedy passage unamended.

[Thierry St-Cyr, Bloc, Jeanne-Le Ber, QC]

moved:

Motion No. 1

That Bill C-50 be amended by deleting Clause 116.

Motion No. 2

That Bill C-50 be amended by deleting Clause 117.

Motion No. 3

That Bill C-50 be amended by deleting Clause 118.

Motion No. 4

That Bill C-50 be amended by deleting Clause 119.

Motion No. 5

That Bill C-50 be amended by deleting Clause 120.

He said—Mr. Speaker, thank you for giving me the opportunity to speak to the bill before us and the amendments I made to that bill.

First of all, I must apologize if my voice is a bit hoarse today. I am so shocked at the provisions in part 6 of Bill C-50 that I can hardly speak, which explains why I am having some trouble today.

But seriously, since this is a serious matter, part 6 of this budget implementation bill deals with immigration and will cause a major change in Canada's immigration system. We condemn the fact that this part has been included in a budget implementation bill when its clauses have nothing to do with financial considerations.

This is just a government trick to limit the debate on this major reform of immigration by burying these changes in a sort of omnibus bill that pertains to a number of completely different subjects. From a parliamentary point of view, we could see the absurdity of this manoeuvre by the government and how the work had to be done in committee. Since Bill C-50 is a budget implementation bill, obviously the Standing Committee on Finance was analyzing its content. But that committee did not have the necessary expertise, knowledge or time to study the immigration clauses.

We received a letter asking the Standing Committee on Citizenship and Immigration to study that part of the bill. We hastily looked at part 6 of the bill, but in the end, we had only a week to hear witnesses and make recommendations. We then had to forward everything to the Standing Committee on Finance, which did not take our recommendations into account because the Liberals abstained once again.

This shows that there was no debate across Quebec and Canada. When the witnesses appeared before the Standing Committee on Citizenship and Immigration, what we heard most commonly and systematically was criticism of making such a major reform without taking the time to properly debate or look at the consequences this could have on the immigration system and on Canada's image abroad.

The committee concluded that part 6, the entire part on immigration, should be removed from the bill. That is the focus of the amendments I am proposing this morning in this House. It is the recommendation of the Standing Committee on Citizenship and Immigration. I hope that all the parties will agree with this recommendation, especially since the committee stated in its report that it was available to sit down with the government and the minister to examine the issue and work with them to develop a real document. A consensus might even be found if we took the time to work together.

The committee did this with Bill C-37, An Act to amend the Citizenship Act, which had to do with Canadians who had lost their Canadian citizenship. There were talks and debates. Everyone worked together, a unanimous report was written, and then came the bill. It was passed very quickly in Parliament and everything went smoothly. I do not see why we could not do the same thing for such an important immigration reform. Obviously, the short term solution is to remove this part of the bill. The proposed measures will be detrimental to our system.

Basically, the bill provides that the minister may decide of his or her own accord and with the consent of cabinet, to change the order in which immigration applications are processed. The minister may even decide which categories of applications will be processed and which will not. Currently, although there are a number of priorities, the general principle—which is about to disappear—is first come, first served.

Under our existing immigration system, those who apply can be sure that their applications will be processed eventually. Valid applications will be accepted. Even though wait times are too long because not enough money is being invested in case processing, the system is predictable. Applicants know that they will eventually get an answer. Under the new system, people will submit applications that may never be processed though they wait their entire lives.

Naturally, that is unacceptable. The minister says that the new system was created to prioritize certain categories of workers in fields in which Canada has trouble finding workers.

On the one hand, the current points system for applications takes into account post-secondary study, master's degrees, and doctorates—which are all worth extra points—but does not put enough emphasis on the technical skills and trades where more workers are needed now. Even though the department processes these cases, people can be no more certain than before that they will be accepted.

On the other hand, there are already so many priorities in the system that nothing will really be a priority after this. I have compiled a little list, which I would like to share with you. With respect to vertical priorities, we have inadmissibility, application of the law, refugees, visitors, students, work visas, spouses, children, and the provincial nominee program. Now we are going to have another priority. Clearly, this system is not working. When everything is a priority, nothing is a priority in the end. We need something much better than this to fix the system.

Another provision in this bill is extremely problematic and involves people applying for permanent resident status on humanitarian grounds. Under the current legislation, the department absolutely must review those applications and if the person is eligible, he or she can obtain that status. If they are not eligible, they will be refused, obviously.

The bill is intended to change the word “shall” to “may”. In other words, the department “may”, if it feels like it, if it is interested, review an application on humanitarian grounds. It is hard to understand how a right could become conditional on the will of the department. A right is a right and if, under the law, one is eligible for such an application on humanitarian grounds, one should have the right to have one's file reviewed.

If not, if the right is subject to the arbitrary decision of immigration officers, then it is not really a right. What is more, a permanent resident application on humanitarian grounds is often used by a refugee status claimant whose case has been dismissed with no chance of appeal before the refugee appeal division—since neither the Liberal nor the Conservative governments have ever implemented it.

The Bloc Québécois has introduced a bill to that effect in order to correct the situation. The bill is currently before the Senate. We hope the Conservatives will stop obstructing it. They always complain about the Liberal senators obstructing work in the Senate; now they are doing it.

Nonetheless, I hope this bill will pass quickly in order to correct this shortcoming. In the meantime, people have been using this process to protect their lives, to be welcomed into Canada on humanitarian grounds, but the government is in the process of closing another door in their faces.

In closing, I hope at least that the parties who supported the report in committee will be logical and consistent and vote in favour of these amendments. Obviously I am counting on the support of the NDP, but more specifically of the Liberals who have been utterly inconsistent on this. They supported withdrawing this reform in the Standing Committee on Citizenship and Immigration, but in the Standing Committee on Finance, they kept mum on the matter.

I hope they will have the courage to stand up and vote in this House.

The House proceeded to the consideration of Bill C-50, 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, as reported (without amendment) from the committee.

Citizenship and Immigration — Speaker's Ruling

[The Speaker, Liberal, Peter Milliken]

I am now prepared to rule on the question of privilege raised by the hon. member for Scarborough—Agincourt and the hon. member for Trinity—Spadina on May 15, 2008, concerning the Department of Citizenship and Immigration’s newspaper advertisements entitled “Reducing Canada’s Immigration Backlog”.

I would like to thank the hon. members for having raised this matter, as well as the hon. Leader of the Government in the House of Commons for his intervention.

In his remarks, the hon. member for Scarborough—Agincourt brought to the attention of the House that advertisements had been placed in newspapers by the Department of Citizenship and Immigration regarding proposed changes to the Immigration and Refugee Protection Act. He contended that the advertisements promoted certain changes to the act as contained in section 6 of Bill C-50, 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.

As hon. members know, Bill C-50 has not yet been adopted by this House or by Parliament. The hon. member for Scarborough—Agincourt argued that these advertisements and the use of public funds to pay for them demonstrated contempt for this House on the part of the Minister of Citizenship and Immigration.

In her submission, the hon. member for Trinity—Spadina also contended that these advertisements constituted a contempt of Parliament by presenting misleading information that has obstructed and prejudiced the proceedings of this House. The hon. member likened this situation to a case in 1989 when the government of the day placed an advertisement in newspapers to announce changes to the federal sales tax, which had not been adopted yet by Parliament.

In support of the contention that the use of public funds for these ads constituted a contempt of Parliament, the hon. member cited an October 17, 1980 ruling by Madam Speaker Sauvé regarding an advertising campaign on the government's constitutional position.

The hon. Leader of the Government in the House of Commons argued, for his part, that the question of privilege was not raised at the earliest available opportunity since the advertisements in question had first appeared in newspapers on April 15. To support this point, he quoted passages from House of Commons Procedure and Practice on pages 122 and 124 which state that the Speaker must be satisfied that a question of privilege was raised at the earliest opportunity.

In addressing the issue of the use of public money, the government House leader stated that the funds used were not dependent on the passage of Bill C-50 but, in fact, had been approved in March of this year as part of interim supply.

In addition, he maintained that the advertisements were written in such a way as to take into account what he described as the core principle of Mr. Speaker Fraser's 1989 ruling, that is:

...that advertising undertaken by the government should not presume or suggest that a decision had been made already when it had not been taken by the House of Commons or by Parliament.

He stressed that words and the tone used in the advertisements fully respected the jurisdiction and privileges of Parliament since they did not presume that Parliament had already taken a decision on the matter. To that end, he quoted from the advertisements in question.

In assessing the merits of any question of privilege raised in the House, the Chair is always mindful of the important point raised by the government House leader regarding timing. It is true that members wishing to raise a question of privilege must do so at the earliest opportunity.

However, there is an important nuance the government House leader may have overlooked. In this case, as in others, it is not so much that the event or issue complained of took place at a given time, but rather that the members bringing the matter to the attention of the House did so as soon as practicable after they became aware of the situation.

The Chair has always exercised discretion on this point given the need to balance the need for timeliness with the important responsibility members have of marshalling facts and arguments before raising matters of such import in the House.

In the case at hand, the Minister of Citizenship and Immigration was asked about the advertisements when she appeared before the Standing Committee on Citizenship and Immigration on the afternoon of Tuesday, May 13, less than two days before the matter was raised in the House. Given these circumstances, I am satisfied that the members for Scarborough—Agincourt and Trinity—Spadina have respected the timing requirements of our established procedure for raising questions of privilege.

The Chair must now determine whether or not the placement of the advertisements related to certain provisions of Bill C-50 has interfered with the ability of members to carry out their responsibilities as members of Parliament. In doing so, the cases cited by the member for Trinity—Spadina have been most instructive.

As Mr. Speaker Fraser stated in his ruling in the Debates of October 10, 1989, on pages 4457 to 4461:

In order for an obstruction to take place, there would have had to be some action which prevented the House or Members from attending to their duties, or which cast such serious reflections on a Member that he or she was not able to fulfill his or her responsibilities. I would submit that this is not the case in the present situation.

Despite not finding a prima facie case of privilege in that case, Mr. Speaker Fraser did raise serious concerns about the situation, stating that the ad was “objectionable and should never be repeated”.

With respect to the content and the cost of the advertisements, in the ruling given by Madam Speaker Sauvé on October 17, 1980, she stated on page 3781 of the House of Commons Debates:

The fact that certain members feel they are disadvantaged by not having the same funds to advertise as does the government, which could possibly be a point of debate, as a matter of impropriety or under any other heading, does not constitute a prima facie case of privilege unless such advertisements themselves constitute a contempt of the House, and to do so there would have to be some evidence that they represent a publication of false, perverted, partial or injurious reports of the proceedings of the House of Commons or misrepresentations of members.

As I indicated when this matter was raised, the issue of the money spent for these advertisements is clearly not a procedural matter.

In addition to these examples, another can be found in 1997, when a question of privilege was raised concerning advertisements made by Health Canada in daily newspapers regarding anti-tobacco legislation that had not yet been adopted by the House. In that case, Mr. Speaker Parent ruled, on March 13, 1997, in the Debates, on pages 8987 to 8988, that the advertisement did not give the impression that the House had already passed then Bill C-71 and, therefore, he could not find a prima facie question of privilege.

It is with these precedents in mind that I reviewed the advertisements in question. They contain phrases such as “the Government of Canada is proposing measures”, “These important measures, once in effect,” and “These measures are currently before Parliament”. In my view, the advertisements clearly acknowledge that these measures are not yet in place. I am therefore unable to find evidence of a misrepresentation of the proceedings of the House or of any presumption of the outcome of its deliberations.

While the hon. members for Scarborough—Agincourt and Trinity—Spadina may disagree with the title and content of these advertisements, this is more a matter of debate than of procedure or privilege. The Chair must therefore conclude, for the same reasons as my predecessors did, that the case before us today does not constitute a prima facie case of privilege or contempt of Parliament.

Once again, I thank the hon. members for Scarborough—Agincourt and Trinity—Spadina for having brought this matter to the attention of the House.

Citizenship and Immigration

[Olivia Chow, NDP, Trinity—Spadina, ON]

Mr. Speaker, it is my honour to present a petition signed by almost 100 petitioners.

The petitioners are quite upset that the Conservative government has introduced major changes to the Immigration and Refugee Protection Act in a budget implementation bill. They note that the bill would give major new powers to the Minister of Citizenship and Immigration, that it would have irreversible damage to the humanitarian compassionate tradition that Canada has had, that it would limit the ability of ordinary Canadians to be united, based on humanitarian compassionate grounds, with overseas family members and that it would give the minister and her officials the power to deny visas to those who have already qualified.

They call upon the Government of Canada to abandon the changes to her powers that were introduced as part of Bill C-50, the budget implementation bill, to increase staffing in overseas visa offices to deal with the immigration backlog, to increase Canada's immigration target to 1% of the Canadian population, which would be 330,000 new residents, to facilitate family reunification and meet labour needs and also to stop—

Finance—Main Estimates 2008-09

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Chair, I would like to add that we did not cooperate with the government this afternoon because we were against the time limits and against what they wanted to do with Bill C-50 regarding employment insurance. However, the theft and diversion of $54 billion by the Conservative government and the Liberal government before it has been confirmed.

All that aside, I have a question. The Conservative government, which had a $10 billion surplus at the end of last year, saw the Government of Quebec introduce a program for the manufacturing sector. How could the Conservative government then turn around and allocate just $1 billion for a trust for all of Canada but put $10 billion toward the debt, thereby abandoning Quebec, Ontario and the provinces that are having a lot more difficulty making ends meet? They do not have the financial means since the fiscal imbalance has not been completely resolved.

Why did the Conservative government make such an egotistical decision, as though it were a corporation rather than a government, to allocate 100% of the surplus to the debt, while leaving manufacturing businesses in their difficult situations? Thousands of jobs and many communities have disappeared, families can no longer make ends meet, and tonight, he is telling us that the only way to help older workers is to retrain them so that they can find new jobs even though many of them cannot find new jobs.

Are the Conservative government and the Minister of Finance ready to make a commitment, to change their attitude and to move forward with more appropriate measures to support the manufacturing sector and help older workers? Are they ready to find a way to make Conservative members from Quebec contribute and help solve the financial situation? Could that be why he does not understand Quebec? I do not know.

[Jim Flaherty, Conservative, Whitby—Oshawa, ON]

Mr. Chair, I knew the tax free savings account had to be a good idea because when he was a Conservative, the hon. member for Halton said that this is a good idea, something he had long advocated for. So I know it is a good idea as do the Canadian Chamber of Commerce, the CD Howe Institute, the Winnipeg Free Press and the economists at BMO.

The Canadian Taxpayers Federation said:

This is an excellent policy proposal. Canada needs to reward people that save because their investments fuel economic growth and job creation.

The Canadian Federation of Independent Business said, “--the savings account, for one, that is an inspired measure”.

It is the most significant tax change with respect to savings and sheltering savings since the RRSP was brought in, in 1957. So it has been many years since then, but members opposite will observe in the next couple of years what an important tax measure this is for Canadians from coast to coast to coast, those 18 years of age or over. I sure hope they will support it when it comes to the House for a vote with Bill C-50 later this week or next week.

[Jim Flaherty, Conservative, Whitby—Oshawa, ON]

Mr. Chair, speaking about skating to where the puck is going to be compared to where it has been, I am told it is 1:0 for Pittsburgh. Sydney Crosby scored with two minutes left in the first period. That is for the eight or nine Canadians who are not watching the game, but who are actually watching us do this in this place. That is a great Canadian taking action there.

We have reduced taxes of all kinds. We have also done something else and that is create the tax free savings account. This was something that needed to be done. In Canada we did not have a savings vehicle outside of the retirement savings vehicle and the RESP, not to mention the registered disability savings plan which this government created.

This tax free savings account is terrific. It has been called by various commentators a jewel and a gem. If Bill C-50 were to pass when it comes back to the House within the next day or two, what it means is as of January 1, 2009, Canadians 18 years of age or over would be able to contribute $5,000 a year tax paid into a fund and have any kind of gains, dividends, or accumulated interest within the fund, and have it paid out whenever they want. This is a tremendous advantage.

Over time this is going to mean something like 90% of the savings of Canadians would be sheltered from taxation through one plan or another, especially for young people, but also for people of moderate means. During the first five years there will be no clawback. It is a terrific idea for Canadians to save money. I look forward to Canadians starting to save money through tax free savings accounts starting January 1, 2009.

[Jim Flaherty, Conservative, Whitby—Oshawa, ON]

Mr. Chair, on the GIS, we increased the amount that could be earned to $3,500 in this year's budget. We also created a tax-free savings account which is an important vehicle for young Canadians, however, it is also a very important vehicle for older Canadians in that they will be able to put aside $5,000 a year and earn interest on that, or dividends, or capital gains, or any other type of gain, and not have that money taxed when it comes out.

I expect this will be very popular not only among young Canadians but also among older Canadians based on certainly what I have heard from Canadians across Canada since budget 2008 was announced.

In terms of the employment numbers, employment has been strong across the country. I am pleased to say that in this place. We have seen strength in employment in Atlantic Canada, certainly strength in Quebec and in Ontario, and the west. In fact, in many parts of the country, we are seeing labour shortages.

This is a reality as we go forward with economic growth. We are going to have to seek to have more people working in Canada and deal with the immigration issues that we are attempting to deal with in Bill C-50, so that the economy can grow and we will have the people power that the economy needs to grow.

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

Mr. Speaker, it is interesting to hear the rhetoric of the member and other members of the Liberal Party saying that they oppose the concept of Bill C-50 and the immigration portion that would reform the immigration system so it works better.

However, despite the rhetoric, I appreciate the fact that the Liberals supported us at the finance committee to ensure the bill comes back to the House for a vote, and again today in the main estimates and supplementary estimates, they concurred in approving the injection of additional funds, part of the $109 million that was in the estimates and supplementary estimates, to ensure that goes forward.

They are talking one way in the House with respect to this issue and voting another way to ensure that the bill receives passage. I thank them for that because the bill does need to go forward to address, not only the continuing growth in the backlog that ballooned from 50,000 to over 800,000 under that member and his government's term in office. It needs to be addressed now.

[Gurbax Malhi, Liberal, Bramalea—Gore—Malton, ON]

Mr. Speaker, no one can dispute that Canada's immigration system must be fixed. What the opposition, immigration experts and Canadians do not agree with is the way in which these amendments have been proposed and the unnecessary powers that they would give to the minister.

Major changes to Canada's immigration system, such as those contained in Bill C-50, must be debated openly, honestly and in a non-partisan fashion. The government has failed to meet these three requirements and has failed to earn the trust of Canadians.

I urge the government to listen to Canadians, remove the amendments to the Immigration and Refugee Protection Act from Bill C-50 and allow them to be debated and voted upon on their own merits.

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

Mr. Speaker, to reply to some of the remarks made by the hon. member, it is obviously important to communicate the intention of the budget bill that relates to Citizenship and Immigration because it will affect a number of members of the ethnic community and it is important to meet with them and to ensure they are aware of what we are proposing. That is what has been done.

The intention with Bill C-50 is to take care of the backlog that grew under the member's government over the past number of years from 50,000 to over 800,000, and continues to grow. No one is served by the fact that we are simply taking in more and more applications. The bill would stop the backlog from growing and then would address the backlog to ensure families are reunited faster, skilled workers are brought in from every country and race, to ensure that those skills that are required in the community are met by those who have the skills, and to ensure that is done fairly quickly, not over a period of six years, but in a period of months. It is important for the bill to go forward so that can happen.

The bill would also ensure dollars are invested to reduce the backlog in a proper fashion. It will not be discriminatory in any way with respect to race, religion or ethnicity. It will be charter compliant and dealt with on an objective basis.

Our party is proud of the fact that we have many members of ethnic communities in our party. We were the first party to have a Muslim elected to Parliament, the current member for Edmonton—Strathcona; the first Japanese Canadian to become a cabinet minister, our Minister of International Cooperation; the first Chinese Canadian MP; the first Hindu MP; the first of two Indo-Canadian women, the member in our party for Fleetwood—Port Kells; and, the first black MP and minister of the Crown. Under the previous Clark government, there was a generous response whereby 77,000 Indo-Chinese refugees entered Canada between the years 1975-81 and, of course, Prime Minister Mulroney introduced the first Multiculturalism Act in 1988.

We have opened our arms and doors to invite people from various cultures and countries to come into our country but the immigration system has been burgeoning and has not been proceeding as efficiently as it should.

Also under the previous government, in which the member was a part of, settlement funding was literally frozen for over a period of 10 years. People were coming in but they were not given the support or language training they needed to become integrated as quickly as possible.

Under previous budgets, the government allocated $1.4 billion over five years to directly address settlement issues and to ensure that those who came here would succeed. We also reduced the head tax on newcomers by cutting it in half in the previous budget. In the new budget, we have allocated $109 million over five years to ensure efficiency is built into the system and that it works the way it was intended.

My sense is that we will have more newcomers joining us quicker, more being reunited with their families quicker and more becoming successful citizens faster.

[Gurbax Malhi, Liberal, Bramalea—Gore—Malton, ON]

Mr. Speaker, on April 3, I asked several questions of the government about the amendments to the Immigration and Refugee Protection Act contained in Bill C-50.

Instead of answering my questions, the minister started a taxpayer funded advertising campaign in ethnic media across the country to convince immigrant communities that, despite all evidence, they can trust the government with the future of Canada's immigration policy.

In addition, the Globe and Mail reported yesterday that the minister secretly used Toronto city hall meeting rooms to promote the Conservative Party's views on the Immigration and Refugee Protection Act and Bill C-50 to ethnic media outlets.

This is despite the minister's rejection of Toronto Mayor David Miller's requests for a consultation on the proposed changes.

Mayor Miller is not the only one who is not being fully consulted. The speed at which these amendments have been pushed through the House and its committees shows the government's lack of respect for the opposition and parliamentary procedure. Given the potential impact of the bill on the future of Canada, the government owes it to Canadians to remove the immigration provisions from Bill C-50 and propose them as separate legislation. Changes of this scale should not be just an afterthought in a budget bill.

The minister has also refused to tell Canadians who she would fast-track and who she would leave behind under the new regulations.

This is not a surprise. It would be nearly impossible to sell Bill C-50 if the minister admitted that she plans to put a cap on family class applications, which she has refused to rule out.

One idea that has the support of many in the immigrant community is my proposal of a visa bond system. Under a bond system, immigration officers could give applicants or sponsors the chance to provide a financial guarantee in borderline visitor visa cases. This would help many applicants wanting to come to Canada for weddings and funerals to avoid the rejection and emotional distress they face under the current system.

Canada's visitor visa process is unfair and discriminatory, especially for applicants from developing countries.

The amendments in Bill C-50 would do nothing to improve the situation for visitor visa applicants and, as such, would not truly fix Canada's immigration system.

The government has attached its immigration proposals to a budget bill and tried to force them through the committee and the House without making amendments and used tax dollars to sell its plan to immigrant communities. These are the actions of a government that knows its views on immigration are at odds with those of the majority of Canadians.

I again ask the government why it is sneaking these reforms in through a budget bill, instead of allowing the House to have an independent debate on this critical issue.

[Diane Finley, Conservative, Haldimand—Norfolk, ON]

The provincial nominee program is not directly impacted by the changes introduced through Bill C-50. We have, however, worked with the provinces. We're in the process of removing the caps on the number of nominees that each province can bring in to meet their individual regional needs. We believe that's very important. That's why we've expanded that program and are in the process of doing so right across the country.

The categories of priority processing under Bill C-50 will not affect the provincial nominee programs. In many ways, they complement them. Setting national priorities frees up capacity at the provincial level to identify specific needs for them. For example, if lab techs are in demand right across the country, provinces won't have to use their limited resources to each set those as a priority. They'll be able to expand their provincial nominee programs to other areas, other occupations where they do have specific needs that are local.