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

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Speaker, I have a question for the member from the Liberal Party.

The Liberals are supporting the neo-conservative party on this bill. They keep telling us they are going to demand reports from the Conservatives if they are not happy with what is going on the House. It reminds me of the comic strip Hagar the Horrible when he charges the castle and he looks behind him and his men are running the other way.

Could the hon. member tell me how he expects to defeat the government? Is it not a bit arrogant on the Liberals' part to think the other opposition parties will support them in this attempt to charge the gates?

[Derek Lee, Liberal, Scarborough—Rouge River, ON]

Mr. Speaker, the rationale for supporting the bill has been there. It is not a perfect bill, and probably members on the government side would agree. In fact, I have heard it said that the government does not look very neo-conservative with all the billions of dollars of deficit spending coming down the pipeline. In the end, I do not think Canadians would really forgive us if we did not get these measures passed quickly because of the stimulus contained in them.

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, I am thankful for the opportunity to voice the serious concerns that the residents of Sudbury have with Bill C-10.

As I rise to speak to the bill, for some reason I have the strangest sense of déjà vu, like I have seen and heard this all before. These issues I rise to address now are the very same issues that the entire opposition rose to speak up against only a few short months ago in reaction to the November economic statement.

The opposition's unified stance forced the Conservative government to act and retract its outdated and out of touch analysis of the economic downturn. The opposition spoke with a united voice against the Conservatives attack, against women and pay equity and negotiated collective agreements and their flawed approach to getting Canada out of this economic recession.

The opposition's unified actions backed the Prime Minister into a corner, forcing him to act. Though instead of action in the best interests of Canadians, he acted in his own best interests and those actions closed down the nation's government when its people needed it the most.

There is only one real difference between last November and today. The difference is not with the Conservatives. They have continued their partisan-driven policies. The Conservatives are still up to their old tactics as the implementation bill shows. The most unpalatable of the economic statement's measures have reappeared, though buried in the Conservatives Bill C-10

In the budget implementation bill the Conservatives have included a number of ideological riders, all in an attempt to sneak through a series of harmful, ideologically-driven measures that have nothing to do with the proposed stimulus package.

The real difference today is that the Leader of the Opposition and the Liberals will not oppose the Conservatives and this harmful implementation bill. Tonight will mark the 50th time that they will support the Conservatives. The Liberals will be supporting the very same issues they decried back in December. The issues are under a different name now, Bill C-10.

Just as I did in November, I will be voting against the implementation of these harmful measures. I will justify my reasoning for each measure in my address this morning.

The first and a concerning part of Bill C-10, given the most recent series of events in my riding, is the proposed amendments to the Investment Canada Act regarding foreign ownership. Included in Bill C-10 are amendments that would weaken controls on foreign ownership, making our accountability to Canadians all the more problematic.

This week has shown my riding first-hand the dangers of lackadaisical regulations on foreign companies.

When Xstrata announced it would be laying off nearly 700 workers in my home riding of Sudbury, it was a huge blow to the community. Sudbury is a sizeable city, but these layoffs touch everyone. Each of the 686 people laid off was someone's parent, a friend, a co-worker. What is worse, these layoffs are in violation of an agreement made with Industry Canada back in 2006.

The Xstrata layoffs are a tragic example of the importance of tighter controls on foreign ownership, not looser ones as the Conservatives have proposed.

My constituents will be glad to know that their representative will not vote in favour of measures that will make the events of this week a more frequent occurrence. They will not, however, be pleased when these measures are implemented due to the inaction on behalf of the Leader of the Opposition, who will, along with his party, be supporting these measures.

Another huge issue for my riding, especially as it suffers more job losses, is employment insurance.

The budget implementation bill would end pilot project number 10 under EI, which was aimed at assessing the costs and impact of extending the number of weeks of benefits in selected economic regions. The cut is salt in the wounds of those recently laid off at Xstrata and elsewhere in northern Ontario and right across the country.

When they need their government most, when employment insurance is needed to get families through these hard economic times, the government has given them an opportunity to build a deck.

This is not the kind of action Canadians need in times like these. The government should be improving access to EI and reforming the system so that more than 50% of those who need it can qualify. It is unfortunate that some opposition parties have lost the backbone to stand up to these harmful measures and deliver the EI reforms so desperately needed for their constituents and for all Canadians.

Another hugely detrimental issue in my riding is the proposed changes to the Canada student loans programs. In Bill C-10, the program is amended to require anyone who receives a Canada student loan to provide any documents the minister requests. This creates a host of new penalties for omissions. It also seems to allow the minister to retroactively punish students for making a false statement or omission in an application for a student loan.

I should not need to remind anyone about the already burdensome and punitive process that students in my riding go through to access this program. Students at Sudbury's local universities and colleges, such as Laurentian, Cambrian and Collège Boréal, are already deeply burdened by student debt. Given the increasingly difficult reality students are facing with escalating tuition costs and the lack of affordable student housing, the government should not be positioning itself to make student life harder.

The government, faced with these challenging times, should be investing in its future and ensuring that students have access to high-quality, affordable post-secondary education. Canada will recover from this economic crisis and it will need a skilled and educated generation to move our country forward.

Though I could tell my students that the opposition parties wholeheartedly oppose these changes to the program, I wish I could tell them that all parties will be voting against this measure. Unfortunately for them and the rest of the debt-burdened student population, the Liberals will be supporting these punitive measures.

Another hugely and increasingly important focus, as we learn more about our effect on this planet, is the environment. Unfortunately, measures in Bill C-10 will move our nation backward in terms of environmental assessments.

Recently Sudbury was featured on George Stroumboulopoulos's program in relation to the “One Million Acts of Green” initiative. In the program a Sudbury woman described how she came to live in Sudbury. To the shock of some, she and her family had moved to the riding for her daughter, who suffered from asthma. The feature documents the huge steps Sudbury has taken to increasingly green the community and lessen harmful environmental practices.

As a result, the quality of air in Sudbury is far better than many other regions in Ontario. The people in Sudbury certainly know how to do their part for the environment and ensure the future for their children. It is unfortunate the government, propped up by the Liberals, is unable to do the same.

Pay equity is another concern that is just as important as the other issues I have raised with Bill C-10. Within the Conservatives' bill are proposed changes to the Canadian Human Rights Act to prevent women from taking pay equity complaints to the Canadian Human Rights Tribunal. If Bill C-10 passes, complaints about pay equity will no longer go through the Canadian Human Rights Commission, but through the Public Service Labour Relations Board. If women have a bargaining agent working on their behalf, it will result in a $50,000 fine.

Pay equity was attacked in November's economic statement, and it is attacked again today in Bill C-10. Our caucus was and continues to be wholeheartedly against these proposed amendments, as are the other opposition parties. I am outraged by the proposed cuts to pay equity. I am saddened that these cuts, strongly condemned in the last session, are now okay enough for the Leader of the Opposition and the Liberal Party to vote for their implementation.

Sudbury, like many other northern Ontario communities, draws its community spirit and cooperative nature from local unions. Sudbury is a better place because of the support and solidarity among the workers who characterize my community. This is another reason I cannot support Bill C-10.

Within the pages of the bill is a legislated public sector wage freeze for years. This measure could serve to invalidate the recently agreed collective agreements that secured wage increases above the austerity measures announced in budget 2009. This section also rolls back the RCMP's pay--

[The Deputy Speaker, Conservative, Andrew Scheer]

Order. Unfortunately, the hon. member's time has expired.

The hon. chief government whip is rising on a point of order.

[Gordon O'Connor, Conservative, Carleton—Mississippi Mills, ON]

Mr. Speaker, there have been consultations among the parties, and I believe you will find agreement for the following motion:

That all votes required to dispose of the Supplementary Estimates (B) 2008-09 scheduled for later today be scheduled to take place at 3:00 p.m., and that the time taken up by the votes on the Supplementary Estimates (B) for 2008-09 or any other division today be not added to the end of government orders later today

[The Deputy Speaker, Conservative, Andrew Scheer]

Does the hon. government whip have the unanimous consent of the House to move the motion?

[Some hon. members]

Agreed.

No.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, the member made a comment about there being only one real difference between last November's budget and today's budget, and that the Liberals will not be opposing the budget this time. That seems more than a little myopic. I presume the member opposite does not believe the only thing of significance is the voting that is happening in the House.

In fact, there are two very major differences, and they are affecting Canadians' lives, including the lives of his constituents in Sudbury. First, one real difference is that the situation for people is far more urgent today than it was in November, albeit it was serious then, and the historic job losses in January are evidence of that. Second, this budget, although so flawed that I gave it a C-, does incorporate some of the stimulus measures called for by the opposition, including the member's party.

My question is whether the member has taken the time to ask the folks laid off in Sudbury if they would prefer the outcome the member is vigorously defending and advocating, which is yet another delay of several months before a federal Parliament can possibly authorize action on their concerns.

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, what I can do is write a report for the hon. member. Hopefully she will not put me on probation if I do not get it to her on time.

Recently I had the opportunity to speak to several workers who have been laid off in Sudbury. They are appalled that the EI reforms that have been talked about so much in the House are not being acted upon or supported by the Liberals, so in fact I have been talking to the people in my riding and I thank the hon. member for that question.

The important thing to recognize is that the NDP stands on its principles. Not even five minutes ago the hon. member had a peer stand and talk about the inaction by the government and about how the government has not caused any money to flow. How can we trust that it is going to do anything different?

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, my question follows up on the question asked by the member for Vancouver Quadra. It is very similar.

The NDP talks about assisting workers and talks about providing stimulus to the economy. What is it going to do? It is going to vote against a budget that significantly extends unemployment insurance benefits, contains a substantial increase in work-sharing programs, contains a $12 billion infrastructure injection as a stimulus to our economy and provides assistance for the hardest-hit industries in Canada.

How can the member go back to his constituents and to Canadians and say that despite all that assistance and a major injection into our economy, he and his party are going to vote against it? How can he justify that?

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, it is very easy for me to vote against the budget because there is nothing in the budget or in the implementation bill that does things for workers. It says people can get an extra five weeks if they qualify. Right now no one is qualifying. Ask the 700 people in Sudbury who have just lost their jobs. If they get severance pay, they cannot qualify for EI until that is exhausted.

There are many reforms needed in this system. Workers need a government that is actually going to stand up for workers and not pretend that a five-week extension is a way to give help. That is untrue.

[Dawn Black, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, I listened to my colleague with great rapture. His comments were very succinct and clear about the problems with the budget, and I want to ask a very short question.

In my constituency office I am now getting calls from hundreds of people who are waiting for their EI claim to be processed. It is now taking the EI system seven to eight weeks just to process a claim. Because so many people are out of work and so many people are applying, they are not getting their cheques for 10 weeks down the road.

I want to ask the member how he feels about the idea we had in the New Democratic Party to eliminate the two-week waiting period and if his constituents are suffering in the same way as mine.

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, I will be very brief.

I completely agree. We are seeing perhaps hundreds of people who have lost their jobs coming through our doors, people who do not qualify or who have to wait two weeks. They do not have an income, so what are they going to do?

I have a very quick story. A person who walked through my door had 699 hours and does not qualify for EI. He is one hour short. Flat out, that is horrible.

We need to fix EI.

The House resumed consideration of the motion that Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, be read the second time and referred to a committee, and of the motion that this question be now put.

[Chris Charlton, NDP, Hamilton Mountain, ON]

Mr. Speaker, I am very pleased to have a second opportunity to respond to the budgetary policies of the Conservative government.

Much has been said in this House about whether this budget is adequate in terms of providing the economic stimulus necessary to lift our country out of this deep recession. Members on all sides of the House have evaluated whether we have done enough to stabilize our banking industry, to free up credit, to assist corporations, to fight the unprecedented trade deficit, and to live up to the Prime Minister's international commitment to spend two per cent of GDP on stimulating our economy.

Many of the speeches, particularly on the government side of the House, have focused on whether the budget in the end will help those who in many cases actually contributed to creating the crisis. Much less has been said about whether and how this budget addresses those who are the innocent victims of this crisis. To a large extent, that is due to a fundamentally different view of what the economy is in the first place.

To the Conservatives, the economy is an almost supernatural construct that is and ought to be controlled by some invisible hand rather than by the government. From that perspective, it is the role of individuals simply to serve the economy. For me though, it should be the other way around. Our economy must serve Canadians. The economy is a man-made construct and the rules and regulations we put in place to guide it play a crucial role in determining its winners and losers. In that way, the economy becomes a moral issue. It must be judged by how many people it leaves behind. Since this budget was designed to stimulate our economy, it too must be judged by who it leaves behind. From that perspective, this budget is an abject failure.

We can do better for the hundreds of thousands of Canadians who have lost and who will lose their jobs because of what has happened to our economy. They did not cause the economic crisis that has robbed them of their livelihoods. Neither did the thousands who have seen their life savings and their dreams for a comfortable retirement taken away because of the rampant greed that right-wing governments unleashed and let run wild in the financial markets. We can do more for them and we must do more for them, so let me spend a few minutes this morning talking about these unwitting victims of the recession.

In January alone, 129,000 Canadians lost their jobs, and as many as half will not qualify for employment insurance benefits, yet the Prime Minister has pushed through another budget that leaves laid-off workers out in the cold. With this budget, not one additional unemployed worker becomes eligible for EI. Unfair waiting periods are kept in place and modest EI extensions only apply to those who already qualify but do nothing for those who do not. As Ken Georgetti, the president of the Canadian Labour Congress put it so succinctly, 60% of the unemployed were not getting benefits prior to this budget, and they will not get benefits now.

Here is what the government should have done in this budget. It should have improved eligibility. It should fix the rules so more workers who pay into EI can get benefits when they need them no matter what region or sector they work in. It should have ended unfair wait times. If most families are only two missed paycheques away from poverty, it is cruel to make people wait weeks for EI benefits to kick in.

Economists say that improving EI will help spark our economy, generating $1.60 worth of economic growth for each dollar that is disbursed in benefits. At the same time, that helps families find new work instead of falling into poverty and onto the welfare rolls. That is a win-win solution for tough times and yet it is nowhere to be found in the budget.

What about younger workers in this country? The deepening economic crisis is dimming the hopes of hundreds of thousands of young workers, but they are not getting any help from the Prime Minister's government. The numbers speak for themselves. In just three months, a jaw-dropping 75,000 Canadians aged 15 to 24 have lost their jobs. In January alone, 28,000 young Canadians lost their jobs, pushing their jobless rate to 12.7%. What the numbers do not show are untold thousands of young people who have given up hope or who are still looking for their very first jobs.

The recent Conservative budget provides nowhere near the economic stimulus needed to safeguard jobs in these troubled times. On youth joblessness, it has no strategy at all. That is not good enough. Today's young people will build tomorrow's Canada. They deserve the same chances that earlier generations enjoyed. By ignoring their hardship today, the government is creating bigger problems for the future.

But the victims of this recession are not just the young and working Canadians. Seniors were devastated when they saw their life savings and their dreams disappear in the stock market crash. They were being hit on all sides. For those who had workplace pensions, their sustainability was suddenly thrown into question. For those who had RRSPs, the value of their retirement nest egg plummeted. And for those who were already in RRIFs, they were doubly disadvantaged because the minimum withdrawal requirements meant that they would be eating deeply into their capital. For seniors, the crisis is perhaps even more impactful than it is for the hundreds of thousands of other Canadians who are also suffering.

When the Prime Minister takes his wait and see approach to providing further stimulus, he is suggesting that Canadians just need to hang in there and wait out the storm. However, seniors, by definition, do not have a lifetime to wait. They have spent their whole lives working hard and playing by the rules but now, everywhere they turn, every bill they open, they are paying more and getting less. That is hardly a retirement with dignity and respect. At a minimum, this budget should have increased the old age security so that seniors would not have to choose between paying for food to eat or for fuel for heat.

Seniors built our country and they paid taxes all of their lives. Now that they need those tax dollars to work for them, the government is abandoning them. They deserve so much better from this budget.

There is one group that is also predominantly made up of seniors who deserve special mention here, and that is our veterans. These men and women were willing to sacrifice their lives for our country and this budget could not even sacrifice a few dollars to live up to the commitments that the Prime Minister made to them.

The Conservatives made very specific promises to our veterans. They promised allied veterans that they could receive the Canadian war veterans allowance. They promised all widows of second world war and Korean war veterans access to the veterans independence program. They promised full compensation to veterans and civilians exposed to agent orange. They promised to redress the issue of reducing the SISIP LTD payments for medically released Canadian Forces personnel when they receive other disability pensions under the pension act. And they promised the so-called atomic veterans compensation for their nuclear exposure during trials in the South Pacific and during decontamination efforts at Chalk River after two accidents. Not a single one of those promises has been kept. The government should be embarrassed and ashamed. It is time to put veterans first; in fact, it is long past time.

Mr. Speaker, you are indicating that I am almost out of time, so I will not get the chance to talk about one more group that this budget failed.

I have talked about young Canadians, workers, seniors and veterans, but I very much wanted to talk about children as well. This budget has had a profoundly negative impact on their future.

The Prime Minister's decision to “get out of the child care business” means that his budget fails to renew an annual $63.5 million transfer that funds 22,000 child care spaces in Ontario alone. This approach is painfully short-sighted. We know that quality early learning builds better futures for young people and a stronger economy for all of us. Each dollar invested in child care would inject at least two into our economy, a vital stimulus in times like these. It locks Canada into last place among industrialized nations on early learning. I wish I had just a little more time to expand on this very important issue, but I want to get one last issue on the record.

We are failing our children by not acting seriously on climate change. We did not inherit the earth from our grandparents; we have borrowed it from our kids. Yet, instead of investing seriously in the green economy, the government is pumping hundreds of millions of dollars into unsafe nuclear energy, coal and the unproven technology of carbon capture and storage. Anything green in this budget is purely cosmetic.

We had an opportunity to do the right thing for the environment, for jobs and for our children, but we failed to turn over a new green leaf. This is a decision that likely will haunt us for decades to come.

On behalf of all of the victims of this recession who this budget leaves behind, I cannot do anything other than vote against Bill C-10.