Bill C-10 (Historical)

Budget Implementation Act, 2009

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

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.

Budget Implementation Act, 2009

[The Acting Speaker, Conservative, Barry Devolin]

The hon. member for Burnaby--Douglas.

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I am a bit surprised. Ridings such as Vancouver Island North have had very serious economic problems with the downturn in the forest industry. The current government and the previous government have been done very little to support the forestry industry in British Columbia. We have this horrible softwood lumber agreement because we caved and did not stand up for that industry and for those workers as a government. That has led to some of the terrible problems that have faced the people of that region.

We are allowing the export of raw logs when those logs could be manufactured into a viable product here in Canada, thus keeping Canadian workers employed. There is no excuse for allowing raw log exports in a time of crisis in an industry in British Columbia.

We have seen the failure of the federal government to deliver on the pine beetle programs. There are 103 aboriginal communities in Canada that list themselves as endangered communities because they have not been able to access the money the federal government promised was there to assist communities in responding to the crisis started by the pine beetle. They have not been able to that. They have not been able to prepare for the kinds of fires that might result, or even to do the firebreak work around their communities to protect those communities, because they cannot--

[The Acting Speaker, Conservative, Barry Devolin]

The hon. member for Vancouver Kingsway may have a short question.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I want to talk about education.

In good times or bad, a country needs a strong educational system. I notice in the budget that one of the target groups the government is going after is students who have student loans. I also want to mention that an important infrastructure project in B.C. has to do with the seismic upgrading of schools, which is important to keep our children safe. Would the member for Burnaby—Douglas comment on the educational impact of the budget and what it does and does not do?

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I am concerned that in the budget implementation act there are new provisions around the Canada student loan program that are punitive. They go after students who are in difficulty with their student loans. They require them to provide documentation to the government. It is actually a punitive measure against a very small percentage of students, those who do not make the payments on their student loans. This kind of measure has no place in the budget implement act. It is not an economic stimulus measure. It is not an economic measure. If the Conservatives were looking to recover money owed to the government, why not go after some of the business loans that are outstanding in programs in which only a very tiny percentage is ever repaid? The government should not go after students who need assistance in getting their education.

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, I am pleased to speak in this House. I am here today because of the citizens in my riding of Saint-Lambert and because of the trust they have put in me. They know that I will never go back on the principles and values that have always carried me through. And it is these principles and values that will keep me from voting for this budget. This budget has brutally attacked the concepts of social justice and solidarity in too many ways. This budget goes against the responsibilities I believe in and that guide my judgment, as well as those of the party I am pleased to be a part of, the Bloc Québécois.

Let us first look at what is planned for women. For the status of women, the budget continues the assault that the Conservatives began when they came to power. By making pay equity negotiable, the Conservatives have trampled a right that many, with good reason, consider to be a fundamental right, a vested right. This serves as a reminder that wilful ignorance, which they do so well, should be denounced at every opportunity, as the Bloc Québécois did when this same government announced cuts to the 2006 budget of Status of Women Canada. Do we need to be reminded that these cuts led to the closure of 12 of the 16 regional offices of Status of Women Canada, one of which was in Quebec City?

We could also mention the abolition of the court challenges program, another shameful tactic to silence citizens' claims against the government. Women's groups made extensive use of this program to assert their rights. I could also talk about this government's decision to reject the recommendations of the pay equity task force. Some years ago, it instructed the government to adopt proactive pay equity legislation, modelled after the existing Quebec law, which provides that pay equity disputes must not be settled through collective bargaining. That law is fundamentally different from the legislation proposed by the government.

No matter, I will continue to add my voice to those unconditionally defending women's rights, as long as I am able to stand, as will all Bloc Québécois members.

I cannot ignore the fact that women are most vulnerable when it comes to employment insurance benefits. In fact, only one out of three women qualifies for employment insurance benefits when she loses her job. Why? Simply because more women hold part-time or temporary jobs, work on contract or on an occasional basis, or are self-employed. In fact, approximately 40% of women hold a so-called atypical job, which considerably decreases their chances of receiving employment insurance benefits. I cannot stress enough how devastating these rules can be for certain families, especially mother-led single-parent families.

But women were not the only ones forgotten in the most recent budget. All manner of unemployed people were forgotten despite what this government may say. Adding five weeks of employment insurance benefits when more than half the unemployed do not meet the program's eligibility criteria will not make much difference for half the workers and will make no difference at all for the other half.

The Conservative government can go ahead and accuse the Bloc Québécois of not working with it, but the Bloc Québécois has long been calling for major changes to the employment insurance system, changes that would certainly have made it possible to provide unemployed men and women with substantial assistance. This morning, in fact, my colleague from Chambly—Borduas has introduced a bill in that connection. I will employ a formula much favoured by the hon. members over the way and invite them to work with us to ensure that the changes he proposes are accepted as promptly as possible. In fact, the main proposals in this bill are: reduction of the minimum qualifying period to 360 hours worked, regardless of the regional unemployment rate; increasing the weekly benefit rates from 55% to 60% ; abolition of the waiting period; and making it possible for self-employed workers to belong to the program on a voluntary basis. There are other measures besides.

After helping themselves to over $54 billion from this fund—to which the unemployed have contributed while working, week in and week out, year in and year out—the least they could do would be to make amends and restore the spirit that lay behind this program when it was created.

The unemployed have suffered for years from this undue hardship, and now that the number of people needing EI benefits will be greater than ever, this government does nothing to improve access to benefits—it does the opposite.

What is there in this budget to remove these inequalities, this profound injustice? Nothing, absolutely nothing. This has led many people to say that the Canadian employment insurance program has been a real joke for more than a decade, but the least funny joke imaginable. It is a very lame joke, indeed. Lame, because everybody has heard it before, and lame, because the consequences are not an imaginary situation, as they are in a really funny joke, but very real. And above all, because those consequences have been rubber stamped, endorsed, and approved by one government after another that ruled this country.

By handing out mind-boggling—not to mention permanent—tax cuts, this government is depriving itself of precious revenues, just as it did when it cut the GST by 2%. These generous donations, which do nothing to help the less well-off who, in many cases, do not pay taxes, have a minimal effect on domestic spending and on gross domestic product, as the government itself admitted in its budget. In fact, every dollar spent on employment insurance contributions returns two times more than a dollar invested in tax cuts, and every dollar invested in infrastructure returns 10 times more than a dollar invested in tax cuts. However, it seems that this government would much rather line the pockets of the rich than help those hit hardest by the economic crisis, which, let us not forget, is still in its early days.

January 2009 was the most devastating month in Canadian history in terms of job losses: 129,000 jobs were lost. If the current trend persists—and there is, unfortunately, no reason to expect it to change—nearly 70,000 of the newly unemployed will not be eligible for employment insurance. What will they do? Where will they go? Where will older workers who cannot be retrained go? The Minister of Human Resources and Skills Development continues to deny reality, just as she did in the House last Friday, and insists on creating a false dichotomy between retraining workers and paying out income support benefits for older workers.

The fact that we are asking for this program—a program that worked well in the past and would cost the federal government less than $50 million per year—does not mean that we do not want older workers who have been laid off to get back into the workforce. We are simply recognizing the harsh reality these people are facing: having to change jobs, perhaps even fields that late in life when getting back into the labour force is certainly more difficult.

In 2005, the Employment Insurance Commission reported that approximately 40% of older workers have not completed their high school education. The result is simple: according to the commission's report, when older workers lose their jobs, they are more likely to remain unemployed longer than younger workers. After spending their entire life working to give the next generation the means to succeed, and as they are approaching a new phase of life, is the Minister of Human Resources and Skills Development prepared to tell them what the member for Jonquière—Alma and the Minister of National Revenue did, that they should move to Alberta where the unemployment rate is lower? Does this government not have any empathy for older workers or will it simply tell them to pack their bags and move if they want to find work?

In closing, I would simply like to say that I appreciate this government's efforts to build concrete infrastructures. However, as women's advocacy groups have said, we must not overlook social infrastructures, which are essential to human development. Their value cannot necessarily be calculated in dollars and cents, but it is nonetheless real. And because I believe such social infrastructures have been overlooked in this budget, I cannot bring myself to vote in favour of Bill C-10, Budget Implementation Act, 2009.

[Keith Martin, Liberal, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I have a simple question for the member. Does she not think that one of the most effective ways the government can actually help those most in need, those people who have lost their jobs, would be to modernize the EI system by ensuring that EI is equitable across Canada, that individuals receive the same benefits in the same way as others who have lost their jobs across the country and to put more money into the processing aspect right now? Many of our constituents are waiting two months or more for their cheque, which means they are losing their homes, the assets they need to live and they are becoming destitute. The loss of jobs is being compounded by the inadequate administration at the EI level.

Does my colleague not think that those would be effective solutions to deal with this problem?

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, in my opinion, the very thing we should be doing during an economic crisis is improving the employment insurance system. My colleague introduced a bill this morning with a view to improving this system.

Last Sunday, I took my son to his soccer game and I spoke with two parents who are seasonally employed. They explained to me that, even though they had made claims for employment insurance in December, they were still waiting to receive their benefits. They told me that this was the first time in 10 years that it has taken this long and that it made no sense.

Meanwhile, these people often use their credit cards to buy food, pay the rent and pay for the daily needs of their family, knowing that the interest rates on these cards have gone up. Imagine when these people receive their first payments—they will already be up to their ears in debt.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Speaker, I would like to congratulate the hon. Bloc Québécois member for her speech, which brought forward many excellent reasons not to support the budget.

I would like to ask her a question. What impact would the budget—supported by the Liberals—have on Quebec women and their children?

On this side of the House, starting at the middle, we know that this budget will not support families.

Why does the budget not support them?

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, I thank my colleague for his question. And I neglected to thank the member for Esquimalt—Juan de Fuca for his question earlier.

In my opinion, this budget is extremely disturbing, especially when it comes to the plight of families, because it includes nothing for families. It talks about renovating social housing, and I know that there is a huge need for more housing, so new social housing should be built.

I seriously wonder what sort of society the government wants. Everything is backwards. The government is abandoning workers and undermining women who have ideas and plans. The government wants to train our older workers. In fact, it wants to hold on to older workers while our young people drop out, and we are calling on the government to make transfers for post-secondary education. It is high time we pushed this issue.

At the same time, the government is not doing anything about the guaranteed income supplement for our workers, for our seniors. Everything is backwards, and I am extremely concerned by this budget. That is why I will not vote in favour.

[Ève-Mary Thaï Thi Lac, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I want to begin by thanking my colleague from Saint-Lambert on her excellent speech. She really covered the waterfront and explained why we in the Bloc Québécois will not support this budget.

Can my colleague from Saint-Lambert tell me how measures such as abolishing the waiting period would benefit people who receive employment insurance?

Why are such measures needed?

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, first of all, I would like to say that if the Conservative government wanted to rapidly take action to help workers in a quick and effective manner, it could decide right now to abolish the waiting period. That does not require a bill. They could implement an administrative measure that would take effect quickly.

If the waiting period were eliminated, employment insurance benefits would be paid on the first day of unemployment. That is very important for anyone who loses their job. That is the reason for putting this measure in place.

There is the additional five weeks of benefits. But not all workers will have access to these five weeks because they may not be available in some regions. How does that help? I repeat that we must help our workers who lose their jobs as soon as they become unemployed.

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, we find ourselves in an interesting time, certainly in the global context, dealing with the unprecedented downturn in the global economy.

One word that has become much more common in our vocabulary, certainly in the political realm, is the word “hope”. This word was frequently used in the election campaign held by our neighbours to the south. It is a word that inspired not only millions of Americans but inspired people all around the world, as well as those here in Canada. As people face unprecedented job losses, the dangers to their savings and the threats to their well-being, they are desperately looking for hope.

Hope was something that we were all looking for in the budget. Our leader and our party talked about what we would like to see in the budget to deal with the hope Canadians were looking for.

I would like to begin my speech by speaking about Canadians in the area that I represent. We are actually feeling quite hopeless when it comes to the budget. I would like to paint a picture of some of the issues that my region is facing.

First, we are dealing with the loss of jobs in the forestry industry, following on a dynamic that crosses our country. People have lost well paying jobs, jobs that are at the root of the well-being of our communities.

While great effort was made by provincial and municipal governments, the federal government was not at the table. It was the softwood lumber deal, or the softwood sell out as we call it, that created the job losses in our area. These jobs have gone elsewhere because Canadians certainly are not benefiting from the softwood lumber sell out.

Jobs are also being lost in the mining sector. As the price of our mining resources goes down, hundreds of people in our area have either lost their jobs or are about to lose their jobs.

We also have in our area a number of first nations communities that have failed to see any kind of job creation and have certainly not benefited from any economic development on a national level. In terms of these areas, people were looking to the budget for some support.

With respect to regional development, I applaud the government for putting emphasis on southern Ontario, but it did not look at other regions. The federal government did not take a leadership role in partnering with the provincial or territorial governments in terms of truly creating broader regional development. We in northern Manitoba consider ourselves to be northern Canada. We would like to see the federal government come to the table and look at some of the economic development opportunities in our region. I can assure members of the House that there are many opportunities and some very promising ones.

Another disappointment was that the government did not address the challenges facing the mining community.While the government issued a press release in December indicating that it would be there for the forestry and mining communities, mining was almost entirely left out of the budget.

I am glad to see support for mining exploration but there is nothing in the budget to deal with the severe job losses that the mining industry is facing and there is nothing for these communities. Hundreds of jobs are being lost in our neighbouring province and many of us fear that it will continue to get worse in our region as well.

I have a great deal of concern with respect to first nations. I am glad to see a positive commitment to housing and education, but I am concerned as to how the money will become realized in terms of tangible changes in infrastructure and the quality of life for first nations. A great deal of emphasis has been placed on private housing. This is not a reality for first nations in Canada. The reality is that many first nations do not have the money to invest in private housing. In order to deal with the shameful third world conditions on many first nations, we need the government to step up and work along with band governments to ensure that first nations have adequate housing.

One of the biggest areas absent in the budget to deal with the challenges facing first nations is that of job creation. I think many of us recognize that job creation and economic development opportunities can help many of these communities become self-sufficient. They certainly stand to benefit from the resources in their areas and of their people, while partaking in the 21st century economy that the rest of Canada takes for granted.

This is an area where the federal government could play a much more substantial role. It would also serve to look at the future and how communities all across Canada can be part of moving ahead as the economy moves forward out of this downturn.

On EI reform, as hundreds of people lose their jobs in our area and across the country, there is a huge concern around the waiting times, with which the government has yet to be deal. The fact is many people, certainly in northern Canada, are not in positions to accumulate enough hours to access EI. There is a need to recognize that these injustices take place and are most often dealt to people who have, year after year, paid into a fund that they hope to access if they are in the unfortunate position of losing their jobs.

My hometown of Thompson, Manitoba has been calling for partnerships in housing for quite some time. We need affordable housing. We need housing for students who are attending University College of the North. We need housing for single parents who are raising their families. We need housing for professionals who are coming into our communities and participating in our industries. Those kinds of investments are not going to be a reality, given the significant lack of funding toward housing as a result of the budget.

We hope many of the commitments in infrastructure are realized in tangible projects and communities. With respect to some of the shovel ready projects, municipalities and the province will need to be at the table. In the case of some of our municipalities, they are unable to come up with some of the funds. There is also the need to look at building some projects that perhaps might be more long term than the two year parameter that has been set up.

On the more national level, and moving beyond the regional piece, there is a number of other areas where this budget poses a great deal of concern. Much has been said today about the rollback of rights, whether it is women's rights or the rights to collective bargaining. That speaks to a real failure to move away from dealing with the economic reality that people are facing. In fact, it brings Canada even further back in the quality of the tangible human rights that we all deserve to enjoy in a country such as ours.

On pay equity, much has been said about following the Manitoba model. Coming from Manitoba, it is important for me to point out that there are some significant differences in our model. Complaining to the Human Rights Commission is prevented as a result of these changes.

These are some of the areas that concern us. I will come back to the initial word that has brought us so much energy at a time of so much despair: hope. Unfortunately, it seems it has not been taken into consideration when looking at the long-term results and impacts of the budget. It seems Canada will be left a lot more hopeless than it began.

[Dean Del Mastro, Conservative, Parliamentary Secretary to the Minister of Canadian Heritage]

Mr. Speaker, I listened to the hon. member's speech with some interest. I want to point out a number of inconsistencies in her speech.

First, she said that members of her party were looking to the budget with hope. Actually, they were not looking to the budget for hope. They were voting against it before they ever saw it.

Second, she cited a number of measures in the United States. The United States is our number one trading partner. I am a member of a party that has always been supportive of a positive relationship with the United States. During my first three years in Parliament, her party spent its time bashing the United States every time it had an opportunity to so. That was not productive in our relationship.

Has the NDP looked outside of Canada's borders? Does it understand what is going on? Does it understand that places like Great Britain are having great difficulty? The United States is not the only other nation that is encountering difficulty. Canada has been insulated by the measures of this government, the proactive actions that we have taken. Does the hon. member understand that? Does she look outside of Canada's borders, or does she just look within and see nothing?

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, all members come with the sentiment of hope that all our constituents bring to us. This has been a guiding force in the work that I take on before Parliament and after Parliament.

As far as being insular, for a moment it seemed that Canada was being portrayed as insular.

In terms of some of the measures the government has not taken, whether it is the failure to adequately invest in research and development or the failure to act in a cutting edge way when it comes to the environment, that reflects some insular modes of looking inside rather than looking at the leadership role Europe and the United States are taking in those areas.