Budget Implementation Act, 2009

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures

This bill is from the 40th Parliament, 2nd session, which ended in December 2009.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 implements income tax measures proposed in the January 27, 2009 Budget. In particular, it
(a) increases by 7.5% above their 2008 levels the basic personal amount and the upper limits for the two lowest personal income tax brackets, thereby also increasing the income levels at which income testing begins for the base benefit under the Canada Child Tax Credit and the National Child Benefit supplement;
(b) increases by $1,000 the amount on which the Age Credit is calculated;
(c) increases to $25,000 the maximum amount eligible for withdrawal under the Home Buyers’ Plan;
(d) introduces amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds to allow for recognition of losses in accounts between the time of the annuitant’s death and final distribution of property from the account;
(e) repeals the interest deductibility constraints in section 18.2 of the Income Tax Act;
(f) extends the mineral exploration tax credit for one year;
(g) increases to $500,000 the annual amount of active business income eligible for the 11% small business income tax rate and makes related amendments;
(h) clarifies rules relating to timing of acquisition of control of a corporation; and
(i) creates cost savings through electronic filing of tax information.
In addition, Part 1 implements income tax measures that were referenced in the January 27, 2009 Budget and that were originally proposed in the February 26, 2008 Budget but not included in the Budget Implementation Act, 2008. In particular, it
(a) clarifies the application of the excess corporate holdings rules for private foundations;
(b) increases the amount that corporations will be able to pay as “eligible dividends”;
(c) enacts several regulatory amendments that complement and complete measures enacted in the Budget Implementation Act, 2008;
(d) introduces minor adjustments to the Tax-Free Savings Account rules and the scientific research and experimental development investment tax credit rules included in the Budget Implementation Act, 2008;
(e) implements rules in respect of donations of medicines; and
(f) reduces the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.
Part 1 also implements other income tax measures referred to in the January 27, 2009 Budget that either were themselves previously announced or flow directly from previously announced measures. In particular, it
(a) implements technical changes relating to specified investment flow-through trusts and partnerships and new tax rules to facilitate the conversion of these entities into corporations;
(b) contains amendments to take into account financial institution accounting changes;
(c) extends the general treatment of capital gains and losses on an acquisition of control of a corporation to gains and losses that result from fluctuations in foreign exchange rates in respect of debt denominated in foreign currency;
(d) enhances the carry-forward for investment tax credits;
(e) implements amendments relating to the computation of income, gains and losses of a foreign affiliate;
(f) implements amendments to the functional currency tax reporting rules;
(g) implements minor tax amendments relating to interprovincial allocation of corporate taxable income, the Wage Earner Protection Program and the Canada-United States tax treaty’s rules for cross-border pensions;
(h) provides for an extension of time for income tax assessments that are consequential to provincial reassessments;
(i) ensures the appropriate application of the Income Tax Act’s trust rules to certain arrangements and institutions under Quebec civil law;
(j) enacts regulatory amendments relating to prescribed amounts for automobile expenses and benefits, eligible medical expenses, and the tax treatment of foreign affiliate active business income earned in a jurisdiction with which Canada has concluded a tax information exchange agreement;
(k) introduces rules to reduce the required minimum amount that must be withdrawn from a Registered Retirement Income Fund or from a variable benefit money purchase pension plan by 25% for 2008, and allows related re-contributions;
(l) extends the deadline for Registered Disability Savings Plan contributions; and
(m) modifies the provisions relating to amateur athletic trusts.
Part 2 amends the Excise Act, 2001 and the Excise Tax Act to implement measures to reduce the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.
Part 3 amends the Customs Tariff to implement measures announced in the January 27, 2009 Budget to
(a) reduce Most-Favoured-Nation rates of duty and, if applicable, rates of duty under other tariff treatments on a number of tariff items relating to machinery and equipment imported on or after January 28, 2009;
(b) divide tariff item 9801.10.00 into two separate tariff items pertaining to conveyances and containers, respectively, and make two technical corrections, effective January 28, 2009; and
(c) modify the tariff treatment of milk protein substances, effective September 8, 2008.
Part 4 amends the Employment Insurance Act until September 11, 2010 to extend regular benefit entitlements by five weeks. It also provides that a pilot project ceases to have effect. In addition, it amends that Act to provide that the cost of benefit enhancement measures under that Act, provided for in the budget tabled in Parliament on January 27, 2009, are not to be charged to the Employment Insurance Account. Finally, it sets the premium rate provided for under that Act for the years 2002, 2003, 2005 and 2010.
Division 1 of Part 5 amends the Financial Administration Act to authorize the Minister of Finance to take, subject to certain conditions, a number of measures intended to promote the stability or maintain the efficiency of the financial system, including financial markets, in Canada.
Division 2 of Part 5 amends the Canada Deposit Insurance Corporation Act to provide the Canada Deposit Insurance Corporation with greater flexibility to enhance its ability to safeguard financial stability in Canada. The Division also adds Tax-Free Saving Accounts as a distinct category for the purposes of deposit insurance. It also makes consequential amendments to other acts.
Division 3 of Part 5 amends the Export Development Act to, among other things, expand the Export Development Corporation’s mandate to include the support and development of domestic trade and business opportunities for a period of two years. The period may be extended by the Governor in Council. Division 3 also increases the Corporation’s authorized capital.
Division 4 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.
Division 5 of Part 5 amends the Canada Small Business Financing Act to increase the maximum outstanding loan amount in relation to a borrower. It also increases individual lenders’ cap on claims. These amendments will apply to new loans made after March 31, 2009.
Division 6 of Part 5 amends a number of Acts governing federal financial institutions to improve access to credit and strengthen the financial system in Canada, including amendments that will
(a) provide new authority for further safeguards to promote the stability of the financial system;
(b) enhance consumer protection by establishing new measures to help consumers of financial products; and
(c) implement other technical measures to strengthen the financial sector framework in Canada.
Division 7 of Part 5 provides for payments to be made to provinces and territories, provides authority to the Minister of Finance to enter into agreements respecting securities regulation with provinces and territories and enacts the Canadian Securities Regulation Regime Transition Office Act.
Part 6 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes, including infrastructure and housing.
Part 7 amends Part I of the Navigable Waters Protection Act to create a tiered approval process for works in order to streamline the approval process and to exclude certain classes of works and works on certain classes of navigable waters from the approval process. This Part further amends Part I of the Act to clarify the scope of the application of that Part to works owned or previously owned by the Crown, to provide for the application of the Act to bridges over the St. Lawrence River and to add certain regulation-making powers.
Part 7 also amends the Act to clarify the provisions related to obstacles and obstructions to navigation. The Act is also amended by adding administration and enforcement powers, consolidating all offence provisions, increasing fines and requiring a review of the Act within five years of the amendments coming into force.
Division 1 of Part 8 amends the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations to provide that unpaid wages for which an individual may receive payment under the Wage Earner Protection Program include unpaid severance pay and termination pay.
Division 2 of Part 8 amends the Canada Student Financial Assistance Act to, among other things,
(a) require the Chief Actuary of the Office of the Superintendent of Financial Institutions to report on financial assistance provided under that Act; and
(b) authorize the Minister of Human Resources and Skills Development to suspend or deny financial assistance to all those who are qualifying students in respect of a designated educational institution.
Division 2 of Part 8 also amends both the Canada Student Financial Assistance Act and the Canada Student Loans Act to, among other things,
(a) terminate all obligations of a borrower with respect to risk-shared loans and guaranteed loans if the borrower dies;
(b) authorize the Minister of Human Resources and Skills Development to require any person who has received financial assistance or a guaranteed student loan to provide that Minister with documents or information for the purpose of verifying compliance with those Acts; and
(c) authorize that Minister to terminate or deny financial assistance in certain circumstances.
Division 3 of Part 8 amends the Financial Administration Act to provide express authority for agent Crown corporations to lease their property, restrict the appointment of employees of a Crown corporation to its board of directors, require Crown corporations to hold annual public meetings, clarify Treasury Board’s duties to indemnify Crown corporation directors and officers, permit more flexibility in the frequency of special examinations of Crown corporations, and require the reports of special examinations to be submitted to the appropriate Minister and Treasury Board and made public. This Division also makes consequential amendments to other Acts.
Part 9 amends the Federal-Provincial Fiscal Arrangements Act to set out the amount of the fiscal equalization payments to the provinces for the fiscal year beginning on April 1, 2009 and amends the method by which fiscal equalization payments will be calculated for subsequent fiscal years. It also amends the method by which the Canada Health Transfer is calculated for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014.
Part 10 enacts the Expenditure Restraint Act. The purpose of that Act is to put in place a reasonable and an affordable approach to compensation across the federal public sector in support of responsible fiscal management in a difficult economic environment.
It sets out rules governing economic increases to the rates of pay of unionized and non-unionized employees for periods that begin during the period that begins on April 1, 2006 and ends on March 31, 2011. It also continues certain other terms and conditions at their current levels. It preserves the right of collective bargaining with regard to other matters and it does not affect the right to strike.
The Act does not preclude the continued development of workplace improvements by employers and employees’ bargaining agents through the National Joint Council or other bodies that they may agree on. It also permits bargaining agents and employers to agree to the amendment of certain terms and conditions of collective agreements or arbitral awards.
Part 11 enacts the Public Sector Equitable Compensation Act and makes consequential amendments to other Acts. The purpose of the Act is to ensure that proactive measures are taken to provide employees in female predominant job groups with equitable compensation.
It requires public sector employers that have non-unionized employees to determine periodically whether any equitable compensation matters exist in the workplace and, if so, to prepare a plan to resolve them. With respect to public sector employers that have unionized employees, the employers and the bargaining agents are to resolve those matters through the collective bargaining process.
It sets out the procedure for informing employees as to whether an equitable compensation assessment was required to be conducted and, if so, how it was conducted, and how any equitable compensation matters were resolved. It also establishes a recourse process for employees if the Act is not complied with.
Finally, since the Act puts in place a comprehensive equitable compensation scheme for public sector employees, this Part amends the Canadian Human Rights Act so that the provisions of that Act dealing with gender-based wage discrimination no longer apply to public sector employers. It extends the mandate of the Public Service Labour Relations Board to allow it to hear equitable compensation complaints and to provide other services related to equitable compensation in the public sector.
Part 12 amends the Competition Act. The amendments include
(a) introducing a dual-track approach to agreements between competitors, with a limited criminal anti-cartel provision and a civil provision to address other agreements that substantially lessen or prevent competition;
(b) providing that bid-rigging includes agreements or arrangements to withdraw bids or tenders;
(c) repealing the provisions dealing with price discrimination and predatory pricing, replacing the criminal resale price maintenance provision with a new civil provision to address price maintenance practices that have an adverse effect on competition, and repealing all provisions dealing specifically with the airline industry;
(d) introducing an administrative monetary penalty for cases of abuse of dominant position, increasing the maximum amount of administrative monetary penalties for deceptive marketing cases, and increasing the maximum fines or terms of imprisonment, or both, for agreements or arrangements between competitors, bid-rigging, criminal false or misleading representations, deceptive telemarketing, deceptive notice of winning a prize, obstruction of Competition Bureau investigations and failure to comply with prohibition orders or production orders;
(e) clarifying that, in proceedings under section 52, 74.01 or 74.02, it is not necessary to establish that false or misleading representations are made to the public in Canada or are made in a place to which the public has access, and clarifying that the “general impression test” applies to all deceptive marketing practices in sections 74.01 and 74.02;
(f) providing that the court may make an order in respect of cases of false or misleading representations to require the person who engaged in the conduct to compensate persons affected by the conduct, and may issue an interim injunction to freeze assets if the Commissioner of Competition intends to ask for such a compensation order; and
(g) introducing a two-stage merger review process for notifiable transactions, increased merger pre-notification thresholds and a reduced merger review limitation period.
Part 13 amends the Investment Canada Act so that the review of an investment will be applied only to the more significant investments. It also amends the Act to allow more information to be made public. This Part also provides for the review of foreign investments in Canada that could threaten national security and allows the Governor in Council to take any measures that the Governor in Council considers advisable to protect national security, such as prohibiting a non-Canadian from implementing an investment.
Part 14 amends the Canada Transportation Act to provide the Governor in Council with flexibility to increase the foreign ownership limit from the existing levels to a maximum of 49%.
Part 15 amends the Air Canada Public Participation Act in relation to the mandatory provisions in the articles of Air Canada regarding constraints imposed on the issue, transfer and ownership of shares. It provides for the repeal of the provisions requiring that the articles of Air Canada contain provisions imposing limits on non-resident share ownership and the repeal of the provisions requiring that the articles of Air Canada contain provisions respecting the enforcement of these constraints.

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

Votes

March 4, 2009 Passed That the Bill be now read a third time and do pass.
March 4, 2009 Passed That this question be now put.
March 3, 2009 Passed That Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 394.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 383.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 358.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 317.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 445.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 295.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 6.
Feb. 12, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Feb. 12, 2009 Passed That this question be now put.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:30 p.m.

Liberal

Bonnie Crombie Liberal Mississauga—Streetsville, ON

Madam Speaker, I rise today on behalf of the residents of Mississauga--Streetsville to speak to the budget implementation bill and to ensure the Conservative government is held accountable to implement the stimulus measures promised.

For Canadians, the crisis is not about structural deficits or the cyclical nature of the markets. It is about the nest egg they have worked hard to build over their entire working lives but which was cut in half almost overnight. They worry about how they will pay for their children's educations, their mortgages or rents and how they will put food on the table for their families.

We are living through unprecedented times brought on by an economic crisis and exacerbated by the Conservative government's poor fiscal management during these times. Canadians need a government they can trust. They require political stability and economic certainty to weather this economic storm. Canadians need to know that the government in Ottawa is fighting for their jobs, their savings and their pensions, but most of all they need hope, which is why the Liberal Party has put partisanship aside and has supported this budget.

After consulting with Canadians, Liberals are willing to support the budget on the condition that the Prime Minister and his government are held accountable for their actions. We have placed conditions on our support, such as the delivery of mandatory progress reports to be tabled in March, June and December where the Conservative government must demonstrate that the money promised is flowing to Canadians in a timely manner.

The Conservative government has mismanaged the economy for three years, squandering the $13 billion surplus created by the Liberal Party through a decade of sound fiscal management. The Conservatives recklessly spent the $3 billion contingency fund left to them in good faith by our party. They did not put money aside for a rainy day when times were good and they did not plan for the future. Now the Liberal Party has put them on notice that this is not acceptable. We have put them on probation.

In truth, this budget is filled with numerous measures that would not have been possible without the pressure put on it by the Liberal Party over the past three years. Some of the measures we fought for include new investment in social housing and infrastructure, targeted support for low and middle income Canadians through the expansion of the child tax benefit and working income tax benefit, additional funding for skills training and enhanced employment insurance, and investment in regional development agencies throughout the country such as the Southern Ontario Development Agency, SODA, which will benefit the auto industry and the manufacturing sectors that have been so devastated.

Our support for the budget is not unconditional. It recognizes that the budget is significantly flawed. It does not protect the most vulnerable. It does not protect the jobs of today or help create the jobs of tomorrow. It does not go far enough to protect Canadians who have lost or will soon lose jobs. Two hundred and thirteen thousand jobs have been lost in the past three months alone, 71,000 of them in Ontario. That is 55% of the job losses in this country.

My riding is not immune. I have heard from many of my constituents about the hardships they now face because of the downsizing and layoffs.

This budget opens the door for attacks on pay equity for women. It also breaks the Conservatives' promise to all Canadian provinces on equalization. It also missed an opportunity to invest in clean industries of tomorrow and to kickstart the green economy to make Canada a world leader. Finally, it lacks a clear plan for getting us out of the $85 billion deficit the government will lead us into over the next five years, a number that will rise as the projections grow worse.

Despite these substantial deficiencies, the Liberal Party has decided to support the budget to ensure that the money flows to those sectors and those individuals who need it most. Let me be clear. We want to see the money getting into the hands of municipalities where it is needed most. That is why our party has made regular progress reports a stipulation for our support.

In my time remaining, I would like to address the five key areas that are of specific concern for the residents of Mississauga--Streetsville: first, the critical need for infrastructure funding to flow; second, the lack of fairness in the employment insurance program; third, the vital need for investment in social housing; fourth, the serious lack of a universal child care program; and fifth, a fundamental lack of jobs stimulus for women.

First, on infrastructure. Municipalities, such as Mississauga, which have shovel-ready projects, have been disappointed in the past by the government's web of red tape. The legendary mayor of Mississauga, Hazel McCallion, calls it “the glacial pace at which funding announcements turn into cash”. Mississauga is still waiting for its share of the $33 billion building Canada fund to flow for projects such as the $52 million rapid transit bus system, the $30 million for downtown revitalization, the $20 million for Sheridan College, the $10 million for Burnamthorpe Branch Library, the $8 million for fire halls and the $4 million for pathway lighting, just to name a few. Unfortunately, municipalities will be required to pay one-third of all the project costs and few will have the ability to do so.

As reported in The Mississauga News just last week:

Not only is the cheque not in the mail for Canadian municipalities, but the instructions for writing the cheque aren't even written yet.

Even though federal politicians trumpeted the billions in infrastructure dollars for cities in the federal budget announced Tuesday, municipal officials are still trying to determine just how the money will be dispensed.

It is unclear to what degree matching funds from the provinces and cities will be required, whether money will be distributed on a per capita basis or through applications, and exactly what kind of projects will be eligible.

Second, employment insurance. With the mounting job losses, more Canadians will face the prospect of applying for employment insurance for the first time. While the budget provides some additional funds for skills training and extends employment insurance benefits for an additional five weeks, many unemployed Canadians are ineligible because they work on contract, part time or in seasonal jobs that do not last long enough for them to qualify.

The problem is most acute in Ontario where the unemployment rate has now jumped to 8% versus 7.2% nationally. Unemployed Ontarians each receive an average of $4,600 less than those out of work in the rest of Canada. EI coverage rates are 43% for Canada and only 30%, or three in ten, for Ontario and even less in the greater Toronto area at only 22%.

With the five week extension, a worker in Mississauga must work 630 hours to qualify for a maximum of 45 weeks worth of employment insurance, whereas a worker in Regina or Winnipeg would only need to work 420 hours to get up to 50 weeks of employment insurance. This is unfair and must be addressed.

The government should reduce or eliminate the two week waiting period. It must also work to significantly reduce and standardize the number of hours of work needed to qualify for EI benefits, either permanently or for the duration of the recession. Those who have contributed to the EI system deserve to have access to it in their moment of need.

Third, social housing. The lack of availability and a high demand for affordable housing exists in Mississauga. The investments allocated in the budget are a good first step. However, within the region of Peel, there is a list of 13,500 households eligible and waiting for social housing, including more than 7,500 families, 2,200 seniors and 3,600 singles. Subsidized housing units typically have a low turnover rate and wait times for new applicants are in excess of 21 years for families and singles. Seniors and special priority applicants are waiting up to seven years. Those on the wait list represent the most vulnerable segment of our population: those at risk of becoming homeless if they do not get assistance soon.

Fourth, universal childcare. Women in Mississauga—Streetsville continue to ask me to advocate on behalf of an affordable universal childcare program. However, universal childcare is not a women's issue or even a family issue, for that matter. It is an economic issue. Allowing women the option of leaving their children in a safe, regulated environment so they can seek skills training or employment must continue to be a priority for all levels of government. Not surprisingly, the United Nations reported Canada dead last among developed nations when it comes to providing affordable quality day care.

Finally, job stimulus for women. The government has shown contempt for women in this budget. I use the word “contempt” because it has callously cancelled pay equity for women that provides a level playing field for employees of every gender. The government has not included a single job creation incentive for women and has ignored the plight that females in the workforce face each day. The stimulus package is largely infrastructure spending, leading to a multitude of construction industry jobs, while so-called pink collar jobs that are predominantly filled by women are ignored.

The Conservative government has shown a lack of respect for Canadians. In this time of economic crisis, it has turned its back, opting to play political games rather than providing assistance to those who need it most. It was the Liberal Party that stood up for Canadians, as it always has. Through tough opposition, we have held the government to account and forced it to take action.

Although this budget lacks clarity, it does contain some measures that we believe can help Canadians in the short term. We support the budget because Canadians expect us to be responsible. By putting the government on probation, we have stood up for Canadians so they can get the help they deserve.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:40 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, it is interesting that my colleague runs down the budget in such context and then supports it later. I would like to focus on that in terms of the Liberal strategy of putting the government on probation with the amendment which does not have teeth to it. I am wondering what the tipping point is.

The Conservatives have already said “no” to many of the things that the member complained about. They were very explicit with regard to employment insurance. They already said “no” to doing what the member is correct in asserting, especially in regions of Ontario and the GTA that are hurting with regard to employment insurance. Eliminating the two week waiting period as well as making it more uniform with regard to qualifications, the Conservatives have already said “no” to those things. They have explicitly said we are not getting those changes.

What is going to be the motivation over the next few months to have the Conservatives change that position when they have already said “no”? Could the member tell us how the Liberals could make some of these things happen when the Conservatives have been quite clear in saying “no” and the Liberals are giving them the ability to do so?

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:45 p.m.

Liberal

Bonnie Crombie Liberal Mississauga—Streetsville, ON

Madam Speaker, at least we read it before we said “no”. The important issue here is that Canadians who need the money get the funding they need. Individuals and sectors across the country, whether it be the automotive sector, the manufacturing sector, or fisheries and forestry, must get the money they need to jump-start this economy once again. We need to get people working as soon as possible.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:45 p.m.

Liberal

Andrew Kania Liberal Brampton West, ON

Madam Speaker, I would like to compliment my friend on her very worthy contribution to this debate. She has described the fact that the budget obviously is far from perfect, but is necessary at this stage and that Canadians cannot afford a $300 million election right now. They need the economic stimulus help. I am wondering if she could provide any examples from her riding specifically showing why the situation is so urgent, why this has to pass and why people need assistance.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:45 p.m.

Liberal

Bonnie Crombie Liberal Mississauga—Streetsville, ON

Madam Speaker, in fact I do have a number of examples in Mississauga. We have had the following announcements in recent months. PPG, an automotive paint finishing company, announced it is closing its plant and moving 150 jobs to an existing plant in the U.S. AstraZeneca is relocating its sterile manufacturing mine. That is 200 jobs to a plant in New Jersey. Kingsway Financial announced 162 job losses. GPX closed production and is relocating to the U.S. as well. CPI Plastics is in receivership as is Skd. Hitachi as well is moving one of its lines to another location at another plant.

I received this very compelling letter from a constituent this morning. It reads:

I am in turn asking for your assistance. I have just been laid off from my job. My wife is also without work. We have 4 boys, ages 12-21, and are experiencing considerable financial hardship. We have owned our home in Streetsville for 20 years and do not want to lose it. Our line of credit, credit card bills and utility bills are going unpaid. I know that this may be a common occurrence these days, but it's one that I haven't previously encountered to this degree.

Number 1, I need a job, as does my wife. In the meantime we also need some kind of social net to help us in these trying times until I get another job. Can you help us?

That is why the Liberals are going to support the budget.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:45 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, with regard to the companies just mentioned, some of them are in the automotive sector. I would like to know why the member would support a budget that does not have an auto strategy, including implementation of the Canadian Automotive Partnership Council recommendations, which has called for a strategy since 2004. The budget does not have that. As well, it does not address the fact that the United States has put $25 billion aside in low interest loans and additional money for the parts industry. This budget has not matched any of that.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:45 p.m.

Liberal

Bonnie Crombie Liberal Mississauga—Streetsville, ON

Madam Speaker, as I have already reiterated to the member, we are supporting the budget for a number of reasons including the fact that the money will get into the hands of the people who need it most. There have been enhanced employment insurance benefits with five weeks on the end of a claim. There will be enhanced skills training opportunities and enhanced job training opportunities. We are working with banks to ensure that they are loosening up lines of credit. Hopefully, infrastructure funding will be flowing, as will targeted funding to the different sectors in the economy.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 12:50 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Madam Speaker, I would like to begin my statement by addressing yesterday's announcement by Xstrata Nickel that it would be laying off 686 permanent workers in Sudbury.

In July 2006, as part of Swiss-based Xstrata's takeover of Canadian owned Falconbridge mines, the company made a commitment to the Minister of Industry that it would not lay off a single Canadian worker for at least three years. Neither Xstrata nor the Minister of Industry dispute this agreement. In fact, a copy of the agreement can still be found on Xstrata's website.

Yesterday, when the hon. member for Sudbury and I asked the Minister of Industry if he was going to stand up for Sudbury and put an end to Xstrata's layoffs, we received a less than adequate answer. The Minister of Industry made comments regarding commitments to continue the operation of nickel rim by Xstrata. This is of small comfort to the hundreds of families who have found themselves with a pink slip instead of a paycheque this week.

For every job in the mining sector there are at least four spinoff jobs within the local economy that are lost. These layoffs will be devastating to the communities in Nickel Belt and greater Sudbury.

When a foreign company takes over a Canadian company certain commitments are made. These companies must be held accountable by the Government of Canada. What good are rules when they are not being enforced? What is to stop other foreign companies from reneging on their commitments? The government has set a dangerous precedent and Canadian workers will be the ones to suffer.

In the government's budget implementation bill, the government has set out to loosen foreign ownership legislation by amending the Canada Transportation Act. It would increase maximum foreign ownership levels by a whopping 49%. In this economic recession we need to protect Canadian companies from aggressive foreign takeovers.

As I was reading through Bill C-10, page after page, I became more and more shocked. Each new announcement was more meanspirited than the first. The Conservatives have held nothing back. As soon as they secured Liberal support, they filled the implementation bill with attacks on pay equity, the environment, collective agreements, debt burdened students, and employment insurance pilot programs.

I urge members of the Liberal Party to carefully read the full 551 pages, or at least the summary of the bill, before supporting it. I think many of them would be surprised to see what their leader is more than happy to let slide in order to prop up the neo-conservative agenda.

Under the guise of modernizing pay equity programs, the government is removing the rights of public sector workers from making pay equity complaints to the Canadian Human Rights Tribunal. For decades, Canada has been moving forward on recognizing the rights of oppressed groups and now, with these measures, we are moving backward. Shame.

Women in traditionally female positions have been fighting to have pay equity recognized. They have educated employers, the government, and the public about the need for equal pay for work of equal value. The government is simply being meanspirited by going after this group of workers whose contributions are undervalued.

Next, the government has set out to allow certain projects to be approved without completing a thorough environmental assessment. Again, the government is using the guise that this will speed up infrastructure spending.

If the government was serious about speeding up infrastructure spending, it would abandon the flawed building Canada fund that requires municipalities and provinces to seek out private investments and match federal dollars. The municipality of greater Sudbury has a growing infrastructure deficit of $480 million.

Many municipalities are uneasy, and rightfully so, about partnering with private, profit-driven companies to build public infrastructure, like water treatment plants. Greater Sudbury has planned a Levack water treatment centre, but has been unable to secure adequate funding. This project is shovel-ready and legally must be completed. This water treatment centre is greatly needed in my riding of Nickel Belt.

A much more efficient and direct way for the government to invest in shovel-ready projects would be through increasing the direct gas tax transfer to municipalities. We have heard from municipalities throughout the country how appreciated this transfer has been. This transfer was secured through the negotiations of the 2005 NDP-Liberal budget.

This budget implementation bill goes after debt burdened students. I am not sure why the government has decided to go in this direction. There is no logic to it. Students and recent graduates are going to be the drivers of our new economy. As a country we should be encouraging post-secondary education. There are no measures to relieve students. The minister will only provide debt relief should a student die or disappear. I am sure students struggling to make student loan payments will be thrilled to learn this. This is truly shameful.

Could the government not provide more significantly relief for student loans especially during an economic recession? The government bailed out the banks that administer the loans. Surely, it can spare more than crumbs for our students.

One area in which I have several questions for the minister is in regional economic development. The government has announced in its budget the creation of the southern Ontario economic development agency which is expected to receive $1 billion over the next five years. The New Democrats campaigned on the creation of such an agency and we are pleased that it is included in the budget. My questions concerns FedNor and how it will be impacted by this new agency for southern Ontario? Will any of the workers employed by FedNor be laid off or transferred to the south as a result of this newly created agency? Will SODA be an independent economic agency or one that is hidden under many layers within the Department of Industry like FedNor? Will any of the infrastructure funding within the budget be administered through FedNor and will the application process be streamlined in response to the unprecedented need in northern Ontario for infrastructure projects?

During this recession the government has an opportunity to make FedNor a fully funded independent economic development agency similar to ACOA. This would increase its funding and mandate. Then maybe worthy projects like the centre for excellence in mining innovation and the long-term care facility in Chelmsford would finally receive the funding they deserve. Now is the time to make these changes.

The last issue I want to raise is the employment insurance program. The employment insurance program can be a great economic stabilizer. Unfortunately, after a decade of Liberal gutting of the program only 40% of workers can qualify for employment insurance benefits despite paying into the insurance policy for years.

The Conservatives had an opportunity in the budget to broaden the employment insurance program to help absorb some of the fallout from the economic recession. Instead, not one additional worker will become eligible for benefits despite a record 7.2% unemployment rate across the country.

Laid off workers will still need to wait two weeks before they become eligible for benefits. The government should know that the hydro bills and mortgage payments will not wait two weeks. Instead of treating laid off workers with dignity, the government has insulted them by refusing to reform the employment insurance program for fear that it may become lucrative for individuals to stay home and not look for work. Shame.

The government has also ended a pilot project that was examining the effects of extending benefits. I am not sure why it would do this except to punish laid off workers and their families.

Bill C-10, the budget implementation bill, goes well beyond the budget and sneaks through the backdoor to bring neo-conservative measures that have nothing to do with stimulating the economy. The government and the Liberal Party should be ashamed of its contents. The attacks on women, students, workers and the environment have gone too far.

This bill is just another reason why we in the NDP caucus have lost confidence in the Conservatives.

The Liberals have given the Conservatives the very blank cheque Canadian voters refused to give them in October. The Liberals have sold out Canadians and their families in exchange for propping up the Conservatives. This budget fails to protect the vulnerable, safeguard the jobs of today or create the jobs of tomorrow.

As part of the real, effective New Democratic opposition I will be voting against this bill.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1 p.m.

Conservative

Greg Rickford Conservative Kenora, ON

Madam Speaker, I am perplexed. As a northern Ontario member of Parliament that is certainly not what we heard in our riding and it is not what we heard in other parts of northern Ontario that go as far as the borders of the hon. member's riding. I guess if he had spent some time looking through the economic plan he would have noticed that FedNor in fact has never been stronger and more invested in by the government. Is it true, with respect to the building Canada fund, that his constituents and stakeholders are saying that building infrastructure in northern Canada and for that matter in Canada is a bad thing?

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Madam Speaker, I am also perplexed as to why the member for Kenora does not understand the budget. I do not think he has read it.

There are obviously a lot of projects in northern Ontario that are shovel ready and would create employment. For example, in my riding there is the long-term care facility in Chelmsford which would create 160 permanent jobs. FedNor is not funding that project. There is the water treatment plant in Levack which I spoke about. It is ready to go.

The Conservative government wants the municipalities to get funding from private agencies. In these economic times, private agencies are not funding these projects. These projects are so important they should not be funded by private companies.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, I am glad the member raised the concern about the projects. Even the Parliamentary Budget Officer, when he was before the finance committee on February 5, according to the answer from the member for Scarborough—Guildwood, reported that the government has experienced significant delays in delivering funds related to planned infrastructure. For example, in 2007-08, the last year for which data is available, Infrastructure Canada lapsed 50%, $1.1 billion of the $2.3 billion in its non-gas tax related funding. Lapsed in government jargon means promised but not spent.

My concern is that we have the same situation for the current fiscal year, 2008-09. There are approved infrastructure programs and funds are ready to go, but they have not been delivered to the municipalities.

Does the member have any idea why the government does not want that money to flow in the current fiscal year? Does it have anything to do with trying to make the current fiscal year look a little better than it really is?

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Madam Speaker, unfortunately I cannot answer the question as to why the government is delaying the funding of these projects, but maybe because of the Liberal-Conservative coalition the hon. member from the Liberal Party could ask the Conservative government. After all, the Liberals are supporting the Conservatives, which is something I just cannot understand. I just cannot believe the Liberals would attack the budget and then stand up and support it.

Maybe the member from the Liberal caucus could ask the coalition government why the funds are not flowing to the municipalities that need them. They need the funds now.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1 p.m.

Conservative

LaVar Payne Conservative Medicine Hat, AB

Madam Speaker, I understand the member for Nickel Belt has several projects in his riding that are shovel ready and are very important to his riding. I am really interested to know why the member would not support the budget with the infrastructure funding the government is providing in the economic action plan. Why would the member not support the budget? Maybe he should stand up for his constituents and support the budget.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Madam Speaker, we are not supporting the budget because of the past history of the Conservative government. In the past, the Conservatives have promised funds to the municipalities and have not delivered the funds. We do not expect the Conservatives to deliver the funds. There are other reasons, such as pay equity for women. The budget attacks women and in attacking women, the government is also attacking children. The budget attacks foreign ownership. It attacks students.

BUDGET IMPLEMENTATION ACT, 2009Government Orders

February 10th, 2009 / 1:05 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Madam Speaker, I rise today to speak to the budget implementation bill, a bill which for all intents and purposes summarizes the budget.

If the budget had been tabled a few weeks ago, it would have been one of the biggest compilations of misleading figures ever to be referenced in this chamber. Why do I say that? Let us go back to last year's budget, tabled only nine months ago, with a projected surplus of $2.3 billion for 2007-08. When the finance minister was questioned on this number, he repeatedly said that Canada's fiscal foundation was solid and that we would not see a deficit this year or even next. He stood by his numbers and statements in spite of the fact that most reputable economists were saying that the minister's projections were dubious at best.

We all remember the 2008 election campaign ad in which the Prime Minister pulled on a sweater vest, looked into the camera and paraphrased George Bush and John McCain in telling us that the economic fundamentals of this country were strong, which implied that Canadians need not worry about the global economic crisis that was quickly approaching our shores, and that to this day, the course attitude was the correct course of action.

What the Prime Minister did not explain to Canadians during the election campaign was that while our economy was on solid footing thanks to 13 years of strong Liberal stewardship, only three years of Conservative rule emptied the government coffers at a time when the sheer enormity of the economic crisis that began in the U.S. would hit Canada and the government would have to react.

While the Prime Minister was extolling the virtues of inaction to appear strong and win an election, our economy was losing jobs and slowing to a crawl.

We Liberals repeatedly questioned the finance minister and the Prime Minister for over a year as to why they had not included a contingency reserve for economic downturns in their projections. They must have thought the request came from outer space, because the finance minister and the Conservatives claim that contingency reserves for economic downturns were only necessary when they were cooking the books. Well, the minister did not just cook the books, he threw them directly into the fire.

I even questioned the Conservatives' lack of a contingency fund due to the fact that in their own 2008 budget documents the government provided a table indicating that for each 1% decline in GDP growth, it would result in a direct hit of $3.3 billion to government revenues.

In June 2008, only three months after the tabling of the budget, the Governor of the Bank of Canada had already predicted a substantial decline in GDP growth.

Why mention this? Well, given the inaccuracy of the finance minister's figures last year, we have to question whether we can trust them this year. The question is an honest one. Unfortunately the only response by the minister was to deplore the rate at which the economy changed.

Had he taken the trouble to listen to the Bank of Canada and the Liberal Party last year, he would have known that an economic downturn was in the wings and that a contingency reserve in the budget would have given him more manoeuvring room to protect Canadians' jobs, investments and pension plans.

The minister cannot say he was not warned. In addition, when he and the Prime Minister say they are concerned about the current state of the economy, I can only conclude that they are demonstrating bad faith, incompetence or the inability to listen.

Only a few months ago, during the election campaign, the Conservative members spoke up to defend the government's figures and to say that the economic crisis would have no impact on Canada. The Prime Minister went so far as to tell Canadians to take advantage of the deals on the investment market. What is more, barely a few weeks ago, in an economic update, when the government should have provided the latest figures and adjusted its sights, it continued to refuse to recognize the facts.

Now I turn to this year's budget and the question becomes, how can we not support a budget that spends $60 billion over two years at a time when stimulus is needed? The problem with the budget is that the Conservatives cannot stop themselves from grandstanding simply because it is good politics.

However, when we look at the budget in detail, we see that the Conservatives are providing every man, woman and child with an additional debt burden of $1,000 each. In the case of my family, the Prime Minister is borrowing $4,000 on my family's back and is giving us back less than $500. Some families who earn less money are getting back less than $300. Good politics, bad policy; this is the story of the Conservative government over and over again.

What about return on investment in the case of services Canadians will enjoy? This is a different kettle of fish, because a conservative generally opposes this kind of spending. So, in order not to offend voters, who want good services and expect to benefit from them, spending must definitely not assist or support social programs.

The Conservatives have cut taxes, but have done so without a plan. They took symbolic action on behalf of workers and those having difficulty making ends meet instead of improving the income tax system to better suit the needs of a modern economy. They opted for the easy way out by putting forward a whole slew of clever tricks intended to do nothing more than fill the pockets of their supporters while running up the country's debt.

Governments must keep some funds in reserve in order to provide services. However, as the Conservatives do not believe in services, why bother with issues so annoying as retaining surpluses, when it is easier just to buy votes?

And there is worse. When the Prime Minister realized that he had emptied the piggy bank and the polls were still not giving him the majority he so coveted, he plunged into a spending frenzy, flinging a fistful of dollars wherever he thought he might be able to buy votes. There was no considered planning here. Pleasing came first and foremost. The result was fewer food inspectors to protect Canadians, crumbling nuclear facilities, failure to use infrastructure investment funds and the loss of Canadians' savings.

The problem is that we have reached a point where action must be taken immediately. Stimulus is needed and bickering among ourselves is petty and counterproductive.

This budget proposes $60 billion in stimulus over the next two years, which is a significant amount. I do not like how all of it is being spent and I do not agree with every line item in the budget, but I think it is a fair compromise. The Prime Minister has been given a chance by the Liberal Party to clean up this mess, but we will be watching. The Conservatives have one last chance. We are doing this for the sake of Canadians and in order to restore some sanity to this Parliament.

There will be the usual complaints from the NDP members that the spending in this budget does not go far enough, but I have come to expect that from them because, to them, too much is never enough. Our choices are simple. We could hold up the business of this chamber indefinitely by trying to get our way on everything; we could bring down the government, which would hold up business once again as a coalition is formed or an election runs its course; or, we could get down to business and propose reasonable amendments to the budget that demand nothing more than what is manageable at this time of economic crisis.

It is a minority government, so we will hold it accountable. The money the Conservatives are spending is my money, everyone's money, money that belongs to all Canadians. Now that we are satisfied with the overall direction of this budget, we Liberals only want to address the Prime Minister's credibility problem. There will be no more double-talk. The budget is a binding set of policy proposals which the government must implement effectively and in good faith. The Liberal Party will support this budget on the condition that the three fixed dates for the government to report to Parliament to review the government's performance in implementing the budget is respected. We will test the government on how it implements the budget, how transparent the process is and how the Canadian economy is reacting to the budget. Failure in any of these categories will result in the loss of confidence in the government.

The Prime Minister has to answer to Parliament and I am glad to say that my leader is now the head coach. No more tricks, no more deception; the rules are simple: listen to the coach, produce results, or get benched.