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 was last introduced in 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. The Library of Parliament often publishes better independent summaries.

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 the Library of Parliament. You can also read the full text of the bill.

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 11th, 2009 / 3:40 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, first of all, allow me to congratulate my colleague for Jeanne-Le Ber, a dynamic and very eloquent member. I would like to come back to a point that he discussed just now, equalization. He said that it is a truly complex matter and I agree. However, it is quite simply a formula which, at the end of the day, distributes wealth based on the capacity of each province, including Quebec, to generate revenue, namely taxes.

This type of formula is mechanical and normally removes any subjectivity. Both the Liberals and the Conservatives have manipulated or fiddled with this formula. I would like my colleague to talk about this, for the benefit of all the Conservatives and Liberals, so that they truly realize what this government has done by fiddling with the equalization formula.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:40 p.m.
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Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Mr. Speaker, my colleague is quite right. A number of arbitrary items have been introduced with respect to this formula for redistributing wealth. I cited a few in my presentation. All these arbitrary components, without exception, are detrimental to Quebec. An arbitrary item has never been introduced that would benefit Quebec. It is systematically to the province's disadvantage. Even though Quebec, in absolute terms, receives the largest share of equalization payments of recipient provinces, it remains the province that receives the smallest per capita contribution.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:45 p.m.
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NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I do appreciate the opportunity this afternoon to share a few thoughts with the House and with the people of Canada who are watching on why it is that I, as a member of the New Democratic Party caucus in Ottawa, cannot support the budget that is being supported by the Conservatives and Liberals.

I will do that by sharing just a small piece of my own story because sometimes it is in telling that story that we are able to more completely or fulsomely understand why a person might take a position which, at first glance, might not seem in the interests of one's home community.

In spite of the fact that the government has packed the budget with investments in communities like my own that will be helpful in the short term, and of course all of us will be thankful for that, it does not move us away from an approach to our economy that got us into the mess that we experienced in the last part of last year in the first place.

It was an approach that saw a government continually and ever more generously give tax breaks to large corporations, which in turn diminished the ability of government to play a constructive and positive role in the protection of communities and the development of opportunities. It diminished the ability of government, without running tremendously large deficits, to help our communities and the economy, and to protect the jobs of working men and women across this country.

I believe that we have a wonderful opportunity in this country at this point in time, if we would only read the signs to understand what is fundamentally happening, to make a significant and fundamental shift that would serve us all better in the long run.

Back in 1959 my father and mother sold everything they had in Ireland and bet that money on a dream. That dream was Canada. They brought their seven children, I was the eldest of seven children, to Canada to give them a future. It was not very complicated. They were not really looking for much. As I sat with my father in his last few years, he explained to me that really, what he was looking for was a good job that would help him put food on the table, provide a home for himself, his wife and his children, and would put some money aside so that we, his children, might go to school one day and have a life for ourselves. That was all. It really was not complicated.

We ended up in the small town of Wawa in northern Ontario, where he got a job mining iron ore. He was paid a decent wage for doing that work, enough so that we were a very happy family. We discovered a community that was very supportive. It was a mix of races, cultures, religions and languages. Because we were fairly isolated, people would get together on occasion for weddings, funerals, and to celebrate with each other in a way that we had not experienced in such a fulsome fashion where we had come from.

We learned as we went along that the iron ore that we were mining in that little town, and 1,200 people worked in those mines, was sent to the big city a couple of hours down the road or by train to Sault Ste. Marie where yet another 12,000 people took the sinter that we produced and turned it into steel. That steel was sent to communities across Canada, to Saint John, New Brunswick, to British Columbia and to Windsor where it was used to make cars, build ships and make buses. It was sent to Quebec for the industries that province had going at that particular time.

Those industries were providing jobs for people, jobs that paid decent wages and allowed families, like my own, to put bread on the table, have a decent home and expect that at some point in the future they would be able to send their children to school so they might have a future for themselves.

We also discovered, in that little town of Wawa in the 1960s and 1970s, that government actually cared about us as well. We watched as the Canadian government, in partnership with the Ontario government, began to put in place programs like health care. If my mother, father or siblings got sick, we had access to a doctor or we could go to a hospital without it being a tremendous financial burden on us. We thought it was wonderful. What a country. What a place to live. What a wonderful way of life that my father and mother had adopted for themselves and us.

We brought in a program called unemployment insurance so that if people lost their job or got hurt on the job, workmen's compensation ensured that they would not be devastated. They would have some money to carry them through a difficult period until they found another job or were able to get back to the same job after they had fixed whatever it was they had hurt on the job. The federal government brought in the Canada assistance plan, a program that was delivered by the province, to ensure that those in our community who were most at risk and vulnerable were also looked after.

What a concept. What a wonderful country, where nobody would be left behind. Those programs, even though never as generous as some of us would have liked them to have been, were certainly more generous than they are today. For the most part, a number of the important programs that were put in place back in those days no longer exist. They were taken out of commission in order to pay down the deficit and the debt and to do a number of other things that I will speak to in a minute.

I was able to go to university with the benefit of a loan and grant program. I was the oldest of seven kids. It was difficult for my parents to put together the kind of money that would have seen them able to pay for my education and then the six coming after me. With the use of student loans and the grants that were available at that time, I was able to go to university and get a degree. Universities and colleges in Ontario in those days were growing. After I got out of university, my first job was with Sault College. It was part of a new introduction for training and retraining in the province at that time, and those colleges were growing in almost every community across the province.

My job with the college was to go out and promote the value of further education and lifelong learning. In every community, from Elliot Lake to Chapleau to Wawa, I promoted further education, training, retraining and lifelong learning.

As we moved into the 1980s and 1990s, we began to see government pull back from that kind of involvement with communities, families, people and workers. We began to see a reduction in the presence of government in our communities. It began with the giving away of taxes by way of tax breaks, particularly to big corporations, which reduced the capacity of government to be as generous as they were with these programs that provided support for families and communities. We moved into a regime that saw us reduce the capacity of government by giving away the revenue that government collected.

My father had very simple dreams and modest expectations of getting up every morning, going to work and getting paid. If the family should get sick or if I wanted to go to university, he expected to get some help from government. However, we began to see that government help became less and less the reality for families.

We saw the giving away of government revenue through tax breaks. We saw--

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:55 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

The member's time has expired so we will move on to questions and comments. The hon. member for Kitchener—Conestoga.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:55 p.m.
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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I listened with interest to the member's comments and I understand his concern for people who are facing tough economic times and challenges.

I would like to point out that many of the initiatives in our budget address the issues he was talking about: $1.5 billion over two years for training programs; $55 million over two years for youth employment; $60 million over three years for the targeted initiative for older workers; and $40 million that will go to the $2,000 apprenticeship completion grant. These are really important initiatives for Canadians in these tough times.

I would like to ask the member how he and his party could actually vote against something that will help Canadians through these times.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:55 p.m.
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NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I want to quickly finish what I was saying in answer to my colleague's question.

In the 1990s and in the last few years, we have moved into a regime where we have reduced taxes and the ability of government to play a major role in people's lives. When the concept of free trade was brought in, many communities, particularly in my neck of the woods, lost plants that had provided work for people not only in those communities but for people in larger centres and the other places where the product was sent.

Now we have a government that does not have the capacity to respond to the real challenges that are facing us, particularly those in the last six to nine months, and will not be able to face the challenges as we look ahead at what economists are predicting will happen.

We are not saying that we disagree with the investments that the government is making but those are things in which it should have been investing all along. Our problem is that when this period of deficit financing is over, the government's capacity to continue to keep that going and to provide the kind of supports that I spoke of earlier, the supports that were there for my family, will no longer be there for communities, for families and for working men and women across the country. That is why we are not able to support the budget.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:55 p.m.
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NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I thank my colleague from Sault Ste. Marie for raising issues that are important to a lot of people. I will ask him one specific question about post-secondary education.

When we gleaned through the budget we tried to find where it mentioned help for students. Students are leaving universities and colleges with mounting debt loads, which does not help their communities, the economy and certainly not themselves or their families. The budget has money for some bricks and mortar but there is nothing for students to alleviate the cost of going to school. This has been made clear by national student organizations at every prebudget consultation. The government has said that it was listening.

I would ask my hon. colleague. if the government had been listening to students across Canada and their representatives, how could it possibly have been so tone deaf to the one essential thing that was asked, which was lowering student debt loads.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 3:55 p.m.
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NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, that was an excellent question and it goes right to the heart of the argument that I was making as to why we cannot support the budget. The budget does not fundamentally change an approach that both the Liberals and the Conservatives have taken over the last 15 or so years. Both parties continually and aggressively moved the cost of education on to the shoulders of students and their families. We believe education is a government responsibility.

Jurisdictions around the world that are doing really well economically see education as an investment in their future. There are no tuition fees in places like Finland, probably most Scandinavian countries, and Ireland. They understand that if people have the opportunity to go back to school and become the best that they can be and participate in the economy, everyone is better served. However, if financial roadblocks are put in the way, people will not be able to take advantage of that.

In these difficult economic times, when we do not know where the jobs will be or even if there will be any jobs at all, it will be more difficult for students to feel comfortable taking on the kind of debt that many of them are experiencing today. It is a real roadblock for them and more so as we stand here this afternoon.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4 p.m.
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Bloc

France Bonsant Bloc Compton—Stanstead, QC

Madam Speaker, I would like to take this opportunity to thank the people of Compton—Stanstead, who voted me into office for a third time in four years. Just think, three elections in four years. But on to serious issues.

After the loss of 18,000 manufacturing and forestry jobs in the Eastern Townships over the past few years, I was hoping to see significant investments for these sectors so vital to the region's economy in the Minister of Finance's budget. My faint hope has been dashed. This is a political budget and priority has been given to the province with the most federal ridings—Ontario. For members such as myself who were elected to defend the interests of Quebec first, this budget is completely unacceptable.

Let us be clear. I support providing assistance to the auto sector. I am well aware that the latter, in recent years, has become the industrial engine of North America. In my own riding, several hundred jobs in Waterville or Coaticook, in particular, are directly related to the auto sector. Nevertheless, the Eastern Townships needed substantial help for the manufacturing and forestry sectors.

In the Haut-Saint-François regional county municipality, located in my riding, a number of major saw mills have ceased operations, namely those in Bury, Weedon and Saint-Isidore-de-Clifton. The forestry workers of Haut-Saint-François were expecting more from this government and today they are rightfully disappointed.

And what about the manufacturing sector? The plants of the Shermag group, a leading light in the economy of the Eastern Townships, are now all closed. Hundreds of workers have lost their jobs in Lennoxville, Dudswell and Scotstown, to name but a few, because of the indifference of the Conservative government toward them.

The office of the Minister of Public Works and Government Services is still operating as if it were the 1950s. It is being openly said that people just needed to vote on the right side to get assistance. I find that extremely edifying. Yet the powerful political lieutenant for Quebec is in the Townships, in fact in the next riding to mine. The communities hardest hit, the ones I just named, Dudswell and Scotstown in particular, are only a few minutes down the road from his riding. Like all his other Quebec colleagues, he continues to show complete docility toward the Prime Ministerat the expense of his own region and of the Quebec nation.

During the last election campaign, Conservative candidates kept on saying at every possible opportunity, that there was not, and would not be, any crisis, that Canada was sheltered from it, that people need not fear falling back into the vicious circle of federal deficits. Ninety days later, they had totally changed their tune. Strange, that. Suddenly we were told that prompt and energetic action was needed. The government promised to help the middle class and the victims of massive layoffs. With the budget, and Bill C-10 which implements that budget, we are far from achieving that.

The latest unemployment figures are disastrous. Unemployment has shot up to 7.2% in Canada, to 7.7% in Quebec and now 8.5% in our beautiful Eastern Townships region. With the endless stream of bad news from south of the border, we can anticipate significant difficulties for our local industries and their exports. Thousands of workers are losing their jobs and thousands of others unfortunately are going to share the same fate.

In this kind of situation, the government's duty was clear. It needed to provide better assistance to the unemployed, to make the unjust employment insurance system with which we are saddled more flexible. In my region, the Mouvement des chômeurs et chômeuses de l'Estrie has been calling for EI reform. The government has continued to turn a deaf ear.

And so, employment insurance will remain what it is—an unfair system that cannot be accessed by more than 50% of the people who lose their jobs, the majority of them being women. These workers lose their jobs and are declared ineligible for employment insurance because of some technical detail and they cannot quickly find other work because the economy is currently destroying more jobs than it is creating.

Everyone knows what we proposed: eliminate the waiting period, relax the eligibility criteria and get rid of distinctions between the regions in terms of the number of hours required to be eligible for benefits.

The Conservative government has done absolutely nothing. It has abandoned the unemployed.

This is typical of the Reform-Conservative ideology. This same ideology continues to overlook low-income families. These families, who are having increasing difficulty finding affordable housing, have also been abandoned because this government prefers to fight the poor instead of fighting poverty.

In Sherbrooke, the vacancy rate hovers between 1% and 2%, well below the equilibrium point. Instead of constructing affordable housing units with two or three bedrooms, the government prefers to invest in renovating existing homes. Only the Prime Minister, proudly wielding a nail gun in a chic Ottawa neighbourhood, seemed happy with his ill-advised decision.

To kick-start the economy, the Conservatives have pulled the old infrastructure trick. On the substance, I fully agree: building infrastructure has a ripple effect and contributes to job creation. However, the proposed infrastructure programs require investments according to the following formula: one-third from the federal government, one-third from Quebec and one-third from the municipalities involved.

I was on Ascot's municipal council for eight years, and I can say that financial decisions are always painful. Small municipalities in rural regions already have so few resources with which to meet their needs.

Had it been possessed of some foresight, the government might have proposed a funding model consistent with each level of government's ability to pay, that is, 50% from the federal government, 35% from provincial governments and 15% from municipalities, as suggested by the Bloc Québécois.

This government seems to be making a habit of downloading problems to the Government of Quebec. In Bill C-10, the government is showing its true colours and going ahead with its proposed changes to equalization. These changes will penalize Quebec severely. According to the new formula, Quebec will lose some $3 billion over three years. Not only is the government not investing in Quebec, but it is also denying the Quebec government the means to do so itself. Then the government will turn around and say that the fiscal imbalance has been resolved.

Unlike the Liberals, I swear that my party and I will not get down on our knees before the Conservatives.

This government's budget and budget implementation bill introduce measures that are clearly not in Quebec's best interest. We, the members of the Bloc Québécois, are not prepared to vote for a bill that deprives Quebec of billions in equalization payments, that creates a federal securities agency, and that reopens a matter that has already been resolved: women's right to equal pay for equal work.

I got into politics to defend the interests and the values of our people. I did it for justice. I did it so that Quebec could get the tools it needs to develop, to reach its full potential, and to take its place in the world.

What the government is proposing is diametrically opposed to the interests of the Quebec nation. It tramples on our values. The members of the Bloc Québécois will stand up and vote for Quebec. That is why I represent a sovereignist party.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4:10 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Madam Speaker, I would like to thank my colleague for her heartfelt speech on the plight of the most vulnerable members of our society.

With respect to employment insurance, the government thought it had come up with the idea of the century—the only idea of the century—when it decided to tack five weeks of benefits onto the end of the benefit period. That is not a bad idea, but there is no way people will be convinced that the government made a real effort. In addition, there is a time limit on this measure. It will be in effect until 9-11-2010. Maybe the government chose 9-11 to symbolize the fact that what is happening in the employment insurance system is a real disaster. In fact, that has been the case for the past decade.

In addition, the government deliberately sets the contribution rate so as to limit possible benefit increases. I would like to hear what my colleague has to say about the financing board the government created, which has sole authority to set contribution rates.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4:10 p.m.
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Bloc

France Bonsant Bloc Compton—Stanstead, QC

Madam Speaker, I thank my hon. colleague, whose riding is struggling with high unemployment.

During the 39th Parliament, when I was a member of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities, we worked together with this government to create an employment insurance financing board. Its mandate, paid for by the government, was to set the premium rates pursuant to section 66 of the Employment Insurance Act. The strange thing about all this is the board exists and the Conservatives are already meddling. They began setting premium rates themselves.

That is not the only promise they made that they have not kept. They also promised, by introducing a bill, to have fixed election dates. If that were the case, we would have an election again in October 2009. Also, they promised not to appoint any senators, saying that elections would be held and that mandates would be for eight years. What did the government do? Eighteen new senators were appointed, and it is not over; I assure this House, more senators will be appointed.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4:10 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

Madam Speaker, I would like to point out that in 1996, the maximum employment insurance rate was $604. Now it is approximately $447. Overall, those who can benefit from it receive approximately $355 a week.

I would like to ask my colleague if she agrees that one of the best ways to stimulate the economy would be to reduce poverty and ensure that unemployed workers can access EI?

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4:10 p.m.
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Bloc

France Bonsant Bloc Compton—Stanstead, QC

Madam Speaker, I thank my colleague for the question. The Bloc Québécois asked that the two week waiting period be abolished and that more people be eligible for employment insurance. Even if you extend employment insurance by five weeks, more than 50% of workers do not even have access to it. In reality, people are not all lazy as the government is saying.

We also suggested an increase from 55% to 60% of the rate of—

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4:10 p.m.
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An hon. member

insurability.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 4:10 p.m.
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Bloc

France Bonsant Bloc Compton—Stanstead, QC

—of insurability. Excuse me, I cannot find the words. I am overcome with emotion. It is true: to eliminate poverty, we have to provide employment insurance benefits. Many people who worked all their lives are eligible for employment insurance on a short-term basis. These people are losing their homes and watching their savings evaporate. That is why you have to have a heart to eliminate poverty. I believe that this government forgot to order this heart, because it really did not think about poverty, about women especially, about the unemployed, about all those losing their jobs.