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

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Madam Speaker, I take exception to my colleague's position regarding the budget, particularly since he decided to vote against it before he had seen or read a single thing about it. He has done a disservice to Canadians.

He mentioned changes to EI. In this very budget we are talking about $1.5 billion over two years for EI and non-EI training programs. We are talking about $500 million to extend EI benefits for workers in longer term training. We are talking about $50 million over two years to cover severance pay. We are talking about extending EI for an additional five weeks. These are all positive measures. I do not understand how my colleague can vote against these measures. They are positive measures.

He says that he sees they are positive measures. However, he is voting against them because they are not exactly the way he would like to see them. That is where the disservice to Canadians comes in.

How can he reject such positive measures?

[Malcolm Allen, NDP, Welland, ON]

Madam Speaker, let me talk about severance pay, since I know a lot about severance pay and EI. It does not get people one dollar more from employment insurance to get severance. EI claws it back, dollar for dollar, which means they do not qualify, so that is a non-starter.

Let me just quote for the member what the Association of Community Colleges in Canada said about the training programs, “We do not have the places.” They do not have the infrastructure in place to accept all those folks that perhaps the money would help, if the government can get it out the door fast enough. The problem is, if we look at the last program, the money did not get out the door.

If the government did get the money out the door, we would simply have folks lined up at community colleges waiting to get in. That is what the community colleges said. They said that they needed $7.4 billion, of which they expected the federal government to come up with $3.4 billion, to help them build the spaces to get those folks in and retrained. What they did get instead was $300 million this year and $200 million next year, which by my count is a shortfall of about $2.9 billion.

It seems to me we will have people lined up outside community colleges waiting to get to those seats to be retrained. Standing and saying “we will”, does not get it done.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Madam Speaker, I would first like to congratulate my colleague for Welland. He is correct, contrary to what the member for Glengarry—Prescott—Russell said. What our Conservative colleague must tell us is what he would do with those who are unemployed, who cannot find another job, who cannot be retrained because they cannot go to another job. Would he adopt the same measures, for example, as those he adopted for women? The conservatives have taken a right-wing stance.

Before asking my question, I will quickly remind them of the following: the Conservatives cut the national day care program; they cut assistance to women's offices—only 4 of 16 remain; they cut literacy programs. They even put in their economic statement—

[The Acting Speaker, NDP, Denise Savoie]

I would like the hon. member for Welland to have the opportunity to respond to the comments and the question.

The hon. member for Welland.

[Malcolm Allen, NDP, Welland, ON]

Madam Speaker, I could not agree more with my colleague when it comes to daycare. Clearly that is a critical component when it comes to the issue of allowing folks to have the opportunity to look for work.

If we do not have daycare facilities, if we do not have that space for our child, how are we to get out in the marketplace to look for that job, especially if that daycare space dried up when our job dried did. If it were tied to our job, it disappears. If it were tied to our income, it disappears because we can no longer afford it.

On retraining, let me just speak to what the gentleman who owned the—

[The Acting Speaker, NDP, Denise Savoie]

Resuming debate, the hon. member for Hamilton Centre

[David Christopherson, NDP, Hamilton Centre, ON]

Madam Speaker, I appreciate the opportunity to join in the debate. I want to commend my colleague from Welland for articulating very carefully what happens to people when they are unemployed. It is important to do that because we can get caught up in the loftiness of national programs and billions of dollars this and billions of dollars that. At the end of the day, however, everything we do is about, or is supposed to be about, people in their homes, raising their families, hopefully going to work and going about trying to enjoy as much as they can the quality of life this great country can offer.

I want to address this very quickly because I suspect one of the backbenchers will want to jump up for their moment of fame and ask me to address why it is that I can come in here and, before even seeing the budget, say that I will be voting against it.

I have a great answer for that one. I spent eight years in the Ontario legislature watching the Mike Harris government dismantle all the things that were great about the province of Ontario. After one budget from Mike Harris, I did not need to read any other budgets. I did but I did not need to because I knew the destructive path that premier and that government were on and I knew the damage they would do. A lot of what is happening in Ontario is the result of those chickens coming home to roost.

Not only is it a government with the same direction, but the chief of staff to the Prime Minister of Canada just happens to be the same chief of staff that Mike Harris had.

I look at the front bench, I listen to QP, I listen to ministers talk and what do I hear? I hear a finance minister going on and on about tax cuts and corporations, and this, that and other thing. He is the same finance minister we had in Ontario. I know the damage that finance minister did.

There are other cronies from that era. Make no mistake, many of us in this House knew exactly what that budget would do, whether or not we had the details. We knew that even if there were something in there that was halfway good, we could not count on the government to implement it. We could not count on the government to keep its word. It passes laws and goes against them. It makes promises and goes against them.

Why, for one minute, would we believe that the government would suddenly be different? All the government had to do was get past the vote, remember, and the Liberals made sure it did. Now, whether it is implemented in a way that is acceptable or not, time will tell. I have no doubt in my mind how all of this will ultimately play out.

I want to raise a couple of issues—

[Some hon. members]

Oh, oh!

[The Acting Speaker, NDP, Denise Savoie]

Order, please. The member for Hamilton Centre has the floor and there will be an opportunity for questions and comments.

[David Christopherson, NDP, Hamilton Centre, ON]

Madam Speaker, I appreciate that but please do not ruin my fun. Half the fun is watching them react and getting them going because that is when we start to see the real members. I would ask that they not be shy on my account and let it rip.

There are a couple of things I want to raise that are here. The Conservatives talk about us not knowing what is in the budget, and our friends in the Liberal caucus are having fun with that drumbeat too, but I have something to tell the House. There is something called the strategic review of programs, which sounds pretty official. What it means is that over three years the government will eliminate $1.3 billion in current money being spent in programs, but we do not know which programs.

Therefore, I say to everyone who is watching who feels that there are parts of the budget they like, that they had better keep an eye on the prize. Until we know what those cuts mean, it may be a program that affects someone who is watching or someone who knows of a family member, a business or a community that is using a program. The $1.3 billion coming out of program spending will hurt somewhere, someone and something. We just do not know what.

Then, of course, thanks to my friend from Ottawa Centre who has been following this like a laser beam, we have almost $10 billion that shows as revenue. Where will the revenue come from? We are not really sure. The government just tells us that it will sell things. What things? We do not know, but $10 billion means a lot of things will be gone. What a lousy time to be selling anything, if we are talking about real estate, which is what most of it is, unless it is going to tap into the art gallery and start selling pieces of art.

I say, with respect, that members do not need to talk to me about passing a budget that members have read or not read. There are things in the budget that no one in this entire House knows in detail what will be cut.

I want to take a minute to talk about EI. I know it has been talked about by a lot of people but I am from Hamilton and we are hurting. We are losing thousands and thousands of jobs every month. When we talk about the manufacturing sector being hit hard, that is Hamilton. This hits home for me.

For every $60 in corporate tax cuts that the government could find, it found $1 to help the unemployed. On the five week extension, let me put on the record what Don Fraser, president of the Hamilton and District Labour Council, said about that. He said:

That extra five weeks, in the greater scheme of things, is just window dressing.

It is all window dressing because the government still has not made the fundamental changes to the system. Even if someone were to benefit from that, the total dollar value for that five weeks is $11 million. This year the national budget is about $258 billion, give or take a few million. The give or take is probably more that the actual increase in benefits that unemployed workers saw.

It is unfathomable in this day and age in the middle of a crisis, with people losing jobs hand over fist, and the one thing the government does not do is help those people and families survive. What an abdication of responsibility.

What is the government's rationale, one might ask reasonably. Let us ask the government. This is the minister responsible, in her own words, “We do not want to make it lucrative home and get paid for it”.

I defy any member of the government to repeat that in front of unemployed Hamiltonians who have just been rejected for EI, who do not know how they will pay the rent or make the mortgage payment, who have birthdays and graduations coming up, but who have no money and no hope. Eleven million dollars are pitiful.

Of the 100% of people who pay EI, 32% of women and 38% of men qualify. Let me put it the other way around. We have an insurance program run by the national government, but paid for by premiums from workers and employers, not tax money. This means that 68% of the women and 62% of the men who paid into EI will not even qualify.

We are worried about people who are on EI because it is not enough to sustain them, but what about those who do not even qualify? Those people get to go on welfare after a lifetime of working.

The Conservative government had a chance to treat Canadian workers, particularly those who are or going to become unemployed, with dignity and give them hope and recognize that their lives and their challenges are important, but it failed them.

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

Madam Speaker, 28,000 Canadians aged 15 to 24 lost their jobs in January. The unemployment rate has gone up to 12.7% and in the last three months alone that rate has gone up by 2.9%, which is roughly about 75,000 jobs. Many of these people do not qualify for employment insurance.

It is scandalous that the Conservative and Liberal budget has zero dollars to help cities, young people and keep child care spaces open. The budget has zero dollars to help the unemployed in Toronto. The budget is a direct cause of the painful municipal property tax increases our families are experiencing.

I know the member has had municipal experience. Could he tells us what kind of impact the budget is having on the city of Hamilton?

[David Christopherson, NDP, Hamilton Centre, ON]

Madam Speaker, the budget is absolutely devastating on many fronts, not the least of which is on people who do not qualify for EI. This is moving from the human factor to the mechanics of running our communities, but if people do not qualify for EI, they will have no choice but to go on welfare. Welfare is cost shared by the municipalities and they are the order of government that can least afford or manage their way through this recession. We are not only hurting individuals, we are hurting municipalities as well.

What really hurts is that when the NDP was in the same position with the Liberals in power in a minority situation, we managed to get over $4.5 billion in exchange for us allowing their budget to pass.

Where was the official opposition on this bill? Why did it not use that power to leverage improvements for the unemployed, to help our communities and to provide child care spaces? Why did it just give it away for nothing?

[Glenn Thibeault, NDP, Sudbury, ON]

Madam Speaker, I need to comment on the passion that my hon. colleague brings to this debate.

Unfortunately, we have all heard over the last few days about the layoffs at Xstrata in Sudbury. Seven hundred families are being affected. We are now trying to get the government to look at the legal binding agreement that Xstrata has with Investment Canada through the Minister of Industry.

The Employment Insurance Act will not allow individuals who have severance packages to claim EI. My colleague and I come from similar communities. How will the choice between making $400 a week or taking a severance package affect families in his riding?

[David Christopherson, NDP, Hamilton Centre, ON]

Madam Speaker, my friend from Sudbury is right. Our communities have a lot of similarities. In fact looking at the history of the ups and downs of our communities, I think we are on track, and Welland would be similar, as would Windsor. Certainly a lot of the older communities, and I speak of Ontario as it is what I know best, are facing the same dilemma.

What really troubles me, and this is why the passion in terms of what is happening, is that if people are not in absolute, destitute poverty before they reach out for a program, the government seems to insist that they take the last hit and get knocked down and when they have absolutely nothing, then they will be offered bare subsistence help.

We are looking for two things: help for families and workers who need it now, and so importantly, hope for the future for those workers and their families. Our children in high school, universities and colleges are terrified right now. They are looking around and saying, “Mom and dad are getting crushed. Everybody I know is getting crushed. Where do I find my place in this world? I thought Canada was one of the greatest countries in the world. Why is it that people seem to be doing so, so well and my future looks so, so bleak?”

That is what the government has given us. We had the opportunity to make a change. All Canadians can hope for now is that change comes sooner rather than later.

[Dennis Bevington, NDP, Western Arctic, NT]

Madam Speaker, I rise today to speak to the budget implementation bill, a bill that covers a budget which really has no vision or direction. It is a budget that represents a scattergun approach to stimulating the economy, one which, at the end of the day after a considerable sum of taxpayers' money has been spent, will not have accomplished what is needed to be accomplished.

It was clear from the very beginning with the economic statement in December that this type of situation would happen, that we would be faced with a budget that simply would not do the job. We cannot expect Conservative ideology to turn around in two months. I am sorry, but that will not happen. We cannot expect that people who have built their dogmatic behaviour around the confines of neo-conservatism would use the finances of this country to provide what Canada needs.

We in the NDP knew that. That is why we formed the coalition in December. We knew very well that in January we would not get what was needed for this economy. Today we hear the Liberals say the same thing. They supported the Conservatives last week for political reasons, but today they are saying the same thing, that the budget is not adequate, that it is not enough. We knew that before. We did not have to wait until the budget was presented. We understand the Conservatives after three years in opposition to them in Parliament.

Once again we saw the mean-spiritedness of a government that would create a budget bill designed to stimulate the economy and get the economy working full of measures that have nothing to do with that, measures that really preserve the Conservative ideological base in this country, to pander to that type of support. We see that so clearly.

Bill C-10 attacks women through its assault on pay equity. It really provides nothing for women who are out of work. We do not see any improvement in EI. We do not see a more understanding nature around child care. We do not see any of that vision that people who are going to be most disenfranchised during this downturn in the economy need to have.

It tears up collective agreements. My inbox was full of emails from RCMP officers in my riding in the Northwest Territories. They said that not only did the government cut the collective agreement for all of Canada, but it also picked on the extra money that is provided as support for the RCMP in carrying out law and order in very isolated places.

I wish the Prime Minister and his cabinet would have gone into a grocery store in Inuvik before the election and looked at the prices of goods for northerners. Perhaps then they would understand what it means when there are cutbacks for the professionals who come in to take care of our communities and provide the services which we hear the Conservatives talk about so eloquently when it comes to taking credit for anything they do.

This budget weakens control on foreign ownership, especially Air Canada. The aviation industry is so transportable. Many of the workers can be replaced by people in other countries. The maintenance work can be done in places that will provide no benefit to our country. We need to hold on to the ownership of our aviation industry. That is not happening. This budget would actually change that.

It attacks student loan recipients. How low do we want to go? How low do we take this?

Today I am going to move away from that and talk about how the bill attacks the environment through its changes to the Navigable Waters Protection Act.

I was in committee the other day when the minister took great pains to say how old this act was, that it dated from the time of our first prime minister. He seemed to have disdain for it because of its age, that this was a good reason to move on from it, to change to something different.

The fact that this law is one of the oldest on the books says to me how important the protection of Canada's waterways is. The role of a national government in protecting its waters dates well before Confederation. There were provisions in the Magna Carta protecting against the construction of fish weirs across the rivers in England. We know that from day one it is so important to look at how our rivers are being taken care of.

Despite this historic precedent as to how important the role of a national government is in protecting water systems, the government wants to eviscerate protection for Canada's waterways. Under the changes the Conservatives want to make, rivers would only be considered navigable under the sole discretion of the minister. There would be no consultation, no forewarning and no appeal, not even any limitation on the type of waterway which could be excluded.

Under these amendments, it is conceivable the minister could declare that the St. Lawrence is not a navigable waterway. What kind of power and authority are we turning over to the minister in this regard? What is this about? We would also turn over to the minister the sole discretion to determine whether any proposed work would have an impact on navigation, once again without prior consultation, no warning and no appeal. With this type of amendment, large structures, such as dams across a river, depending on where they are located and which river they are on, could be considered as not having any impact on navigation.

The amendments give the minister the authority to change at any time the criteria used in assessing whether a waterway is navigable or whether a type of work may interfere with navigation, once again without the ability of Canadians to say anything about it, without any ability to appeal these types of decisions on these waterways which so many Canadians hold sacred.

Canadians identify with their rivers. They identify with the land, the water. Nature is so important to all of us. Why would Canadians want this type of legislation put in place?

The minister said that these changes need to be made because the law has been holding up vital infrastructure projects. Can the minister name one project that has not gone ahead because of the Navigable Waters Protection Act?

Why has the Conservative government put this odious change to the laws which protect Canada's natural environment into a budget bill? Could it be because the Conservatives know Canadians will oppose these changes and will voice strong opposition? The Conservatives sneak it in through the back door knowing that the Liberals will support it in order to get the budget passed. This is how they are working.

When the Navigable Waters Protection Act was reviewed by the transport committee in the last Parliament, the committee recommended more consultations, especially with aboriginal people, recreational users, anglers, canoeists, tourist operators, cottagers, and river advocacy groups. Only one group like that was represented in the committee discussions.

The government likes to say it is here for the people, but if it does not listen to the people, it is not here for them.

Another way the government is not listening is in its approach to stimulating the economy of the Northwest Territories. For years the people and the Government of Nunavut have been calling for a deep sea port at Iqaluit. Instead, the government is pouring $17 million into a harbour in Pangnirtung, on top of the already existing contribution of $8 million last year.

After the budget was released, the Premier of Nunavut asked about the funding and was told to use it or lose it, that a port in Iqaluit would take too long. Pangnirtung needs a small craft harbour and it should get an excellent one for $25 million, but all of Nunavut needs a harbour in Iqaluit as well, and that funding could have gone toward making that a reality. Why did they not do it? The Conservatives think they know better than the people of the north.

Another example from the north is funding for an Arctic research institute.

I will sum up by saying that this budget does not work and we are not supporting it.