Bill C-10 (Historical)

Budget Implementation Act, 2009

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

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

Budget Implementation Act, 2009

[The Acting Speaker, Denise Savoie]

The hon. member for Windsor—Tecumseh has one minute to respond to the question.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

Madam Speaker, I will reply in English, since I speak faster in English than in French.

The reality is that Manitoba actually increased the ratio of the amount that women make in that province vis-à-vis men, by a significant amount in the way it treated pay equity. We will see the opposite with this legislation.

In particular, the Conservatives are changing the way pay equity is being defined. They are not even using that term, other than one occasion in that part of the bill, and they are coming up with new terminology which clearly will undermine the role the legislation can play in protecting women. It will be just the opposite and we will see that gap between men's and women's wages in this country more than likely widen rather thank shrink.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, I am very proud to rise on the issue of Bill C-10 and its implementation.

The context in which we have to discuss this issue today is the root causes of how we came to this international economic catastrophe, how the Conservatives completely failed to understand the implications, and the implications of what they are doing now on the long term, because they all fit together in a very straightforward pattern.

I am sure members will remember the glib comments we heard from the other side of how we avoided a recession. When we saw the U.S. housing market collapse, there was a belief from Mr. Magoo of finance that Canada would not be in any way impacted by a downturn in the United States, even though that has never, ever happened--

[James Bezan, Conservative, Selkirk—Interlake, MB]

Madam Speaker, I rise on a point of order. The member for Timmins—James Bay just used some fairly unparliamentary language in the description of our finance minister. I ask that he retract that comment.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, I had referred in the past to a Liberal leader as Mr. Magoo and the Conservatives laughed and supported it. It is not unparliamentary. We would not find it on any unparliamentary list of words. Mr. Magoo is obviously a cartoon character and so it is perfectly straightforward. However, if the hon. member is feeling a little touchy this morning, Madam Speaker, and I hope this is not coming off my time responding to him, I would say that I have used it as a symbol.

[The Acting Speaker, Denise Savoie]

I had not heard the first comment. I do not believe that it is unparliamentary. I would ask the member to continue.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, speaking of comical, it is the glib response that we saw from the Conservatives when they saw the storm clouds coming, everyone saw this technical, this synchronized recession or whatever the words were that they used, they saw it coming for a long time. What did they do throughout that period? They stripped the fiscal capacity of the country to respond.

They were coming with one tax break after another, which were absolutely useless tax breaks in terms of GST, stripping the country's capacity to be ready at a time of crisis. But that speaks very much to the typical attitude of the neo-conservatives, the attitude of what we saw in the United States, and what we saw in Europe. They created this situation that we are in now.

We are dealing now with the government's response. It is supposed to be 500 pages of economic stimulus. However, the government in November told us that we had missed the recession and the recession was past, then Conservative backbenchers said they had already done their economic stimulus the year before. That was their tax cuts and in fact they were so smart they were ahead of the economic stimulus package. Then, of course, we found out that 130,000 jobs were lost in January and 250,000 since they were making such glib comments. Now they have settled down their tone somewhat.

However, within Bill C-10 we see the real direction of the Conservatives. They are not all that interested in an economic stimulus. They are looking to create the old Reform Party pinata. If we smash this like a pinata, we will find all the ugly little slugs of the Reform ideology start to fall out, for example, their attack on the human rights code. It is right there. What does it have to do with budget implementation? Zero, but the attack on the human rights code is laid out. The attack on environmental protection, the Navigable Waters Protection Act, is in there. What does that have to do with economic stimulus? Zero.

The attack on student loans is absolutely appalling. We have student debt that is crushing middle class families across Canada and yet we see the government adding brass knuckles in its budget implementation bill to attack students who are suffering from student loans. What does that have to do with economic stimulus? Absolutely zero.

Then of course we see the move to strip Canada's foreign investment rules. What does that have to do with economic stimulus? A great deal, if one is a foreign corporate raider and dealing with a Canadian company that is on weak legs, the government has just made it easier.

Let us put all of this in the context of the times. Right now we have the situation of Xstrata in Sudbury, an absolute debacle in the community. It has hit the region like an economic neutron bomb, but it is not just an isolated plant closing. This is the result of the twin pillars of Conservative ideology, which are indifference and incompetence, in addressing the economy.

Let us back up two years to the former industry minister. Some day it will be a Trivial Pursuit question to ask: who was the minister at the time when we lost the two great mining giants of Canada overnight?

I am sure many of the listeners back home will be wondering. I will give two clues: Julie Couillard, the whole “Mom” Boucher thing. That famous member. He was the industry minister. At that time Falconbridge and Inco were attempting to get a merger so that we could make the synergies of the industrial basin of Sudbury actually come together. Inco was having problems with its regulatory approvals and the industry committee, not just the New Democrats but the industry committee said, “Hold off on the hostile takeover by the corporate raider Xstrata until we can ensure that at least there is another bid on the table”. It was not to say, force Falconbridge to marry Inco, but to give Canadian companies the chance because they were being held up by international regulatory approvals.

The minister did nothing because it was not the role of the Conservatives to be involved in the economy in any way unless it was to sell off the great assets of Canada. Therefore, overnight we lost the twin jewels of Canadian money. Falconbridge went to Xstrata and Inco went to Vale of Brazil. We lost the synergies in the Sudbury basin.

At the time there were guffaws from the government side because it was the good times. In good times any idiotic company can make money. That is not a problem. In good times no one is worried about who is paying the bills but the question we asked again and again is what happens when the bust comes? What happens when the bust comes because nickel mining is cyclical? Now the bust has come. The only thing that the people of Sudbury had to protect them was an assurance by the government that a contract had been written to say that Xstrata would agree, in exchange for taking one of the key assets of the Canadian mining industry, that there would be three years without layoffs.

We have not even reached the three years. Now we have heard the industry minister claim, “Oh, don't worry, I stepped up to the floor and got Xstrata to offer some new money”. That is a lark. That money was on the books from Xstrata because it is simply moving ahead with what it planned all along.

If anyone knows nickel mining in Sudbury they will say at $5 a pound, nickel can be mined profitably. Nickel is about $5 a pound. What Xstrata is doing, as part of its corporate plan along, is to move away from the lower grade deposits, move to the nickel rim mine which is a phenomenally rich mine, which will allow it to continue to high grade the assets. Officials knew that if they simply ignored the agreement that they had a toothless, indifferent and incompetent government on the other side of the floor that would do nothing to make them stand up to the signed agreement with the Canadian people. That is exactly what happened.

For the people of Sudbury and all of the northern Ontario economy, the loss of 700 jobs is going to have an impact with long-term implications because anyone who has less than eight years seniority is gone. So sure they will be getting the bus ticket to Fort McMurray, but we are losing the new generation of miners. We are seeing families who do not have this extra six months. Whatever payout they get they are going to have to spend it and lose it before they ever get employment insurance.

In the 500 pages and all the talk we have heard from the Conservative Party, there is not a single provision anywhere in the budget for one extra family in Canada to be allowed access to employment insurance. Nothing. That has profound implications because Canadians pay into these systems. They believe, because they are working, that they do not have to worry about it, that if things go wrong that their government has a system in place.

The surprising fact for the people of Sudbury, Abitibi, and for the people all across my region, is that they have come to realize that the government has complete indifference toward those who are falling through the cracks. The only model applied for employment insurance is the Minister of Human Resources saying that the government did not want the benefits to be lucrative because it wanted to ensure that a hungry belly would ensure that people would get up off the couch and went looking for a job. That is absolutely intolerable.

It is intolerable that we have an indifferent government that has allowed such key resources, such as Falconbridge deposits, to be so cavalierly wasted. It is appalling that we have a government that will not make this foreign corporate raider stand up to the commitments that it made to the Canadian people when it acquired Falconbridge in the first place.

[Claude Gravelle, NDP, Nickel Belt, ON]

Madam Speaker, I would like to thank the member for Timmins—James Bay for bringing up the subject of Xstrata because a lot of people who have been laid off not only live in Sudbury but they also live in Nickel Belt. I would like the hon. member's thoughts on the fact that the industry minister this week stood in the House and, I cannot say the word “lied”, misled the House of Commons into believing that he was involved in the strategy--

[The Acting Speaker, Denise Savoie]

Order. Hon. members must be careful about the language. It is not acceptable to use words like “misled the House”.

[Claude Gravelle, NDP, Nickel Belt, ON]

Thank you, Madam Speaker.

The industry minister tried to make us believe that he was involved in negotiations with Xstrata to put new money on the table, when all along this was old money dating back to 2008. I would like the member's thoughts on the industry minister misleading us.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, we have been fighting this issue so strongly. The issue is really clear. This is a government that through its indifference and incompetence has allowed Falconbridge to be taken off by this corporate raider. At the time we were told not to worry because we have protection for three years, but Xstrata knew that the government did not really care and would not actually stand up for the people of Sudbury because it has not stood up for any other industry in this country.

When our new industry minister stands in the House and says “Listen, I'm taking this seriously”, I am glad he is actually standing up. He seems to have a little bit more backbone than some of his predecessors. But when he is saying there is new money, it is simply not true. Xstrata had money on the books for developing nickel rim because it is a fantastically rich mine and everyone knows it, and it wanted that deposit. It did not want to have to deal with the larger issues of the Sudbury basin and that is again the misuse of our resources, the misuse of commitments that were made to the Canadian people, and the misuse of information in the House of Commons. The government has to at least say, “We had no intention of holding them to any agreement in the first place”. That is a fundamental of Conservative ideology.

[Paul Dewar, NDP, Ottawa Centre, ON]

Madam Speaker, I want to thank my colleague, the member for Timmins—James Bay for his intervention. One of the things he pointed out was the record of the government, not just in this budget but in previous budgets, saying that it is going to do one thing and ending up doing another.

My question is specifically on how it has treated those who are most vulnerable, those who are right now suffering job losses, particularly in his area but also right across this country. Does the member believe that this budget can really actually help people who need the help right now? Are the changes that are contemplated in this budget going to make matters worse in the long run or better?

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, every day my office deals with the front lines of this economic crisis. We hear from the families who are not eligible for EI, who do not have enough weeks for EI, and the older workers who do not have enough funds to bridge them to a pension and end up losing everything along the way.

When we met with bankers, the business communities and labour, we found a surprising unanimity on one issue, which is that we have to allow greater latitude for EI in a time of economic crisis. We have to poverty-proof our communities.

We heard that from all kinds of sectors. Obviously, the Conservatives did not hear it because they continually go back to their basic Reform Party message. They do not want lucrative benefits because they think people are lazy. They want to accuse anyone who comes forward, who says anything about the issues of older workers, that we are not being positive enough. They want this whole Horatio Alger claptrap to be danced out in this House of Commons, and that we should encourage people to be more positive to find jobs that do not exist.

It is simply not acceptable. Families are losing their homes, they are losing their savings, and they are looking to the government to do more. What they see on the government side benches is absolute indifference.

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Madam Speaker, I would like to speak today to Bill C-10, the budget implementation bill, and make some comments about the current situation of the government.

The government has introduced a budget that contains a lot of the stimulus package and ideas that were promoted by the opposition. However, at the end of the day, we have no confidence that this budget will ever see the light of day in terms of implementation. Budgets get passed all the time but governments will underspend budgets. One member was heard to say recently that we are confident that the recession will end, that we will start coming out of the recession within three months and that we will not need to spend a lot of this money.

That is why, fundamentally, we cannot trust or believe the government. It is a Jekyll and Hyde sort of government. The sweater comes on during the election campaign and then, of course, it comes off. Now, I think it is back on again. Some of the members, such as the President of the Treasury Board, have not figured out yet that it is sweater time again. I want to take a few minutes to explain what I mean by that.

In my riding in Winnipeg, we have a serious situation where a freeway and two bridges will be closed for a year and a half, inconveniencing about 200,000 people. For whatever reason, the mayor has decided to punish that quadrant of the city by refusing to stop the closure by allowing two extra lanes to be built. These two extra lanes are envisioned to be built by the city in the next 20 years anyway. In fact, they have been costed out at around $50 million. This has been an issue for almost a year now. When I spoke to the President of the Treasury Board about this, he was really surprised. Given all the publicity on this issue, he felt that the problem could be solved if he could just get the parties together and do a cost-share on the extra two lanes, split into thirds. The federal share might then only be $17 million. He agreed that he would try to get the parties together to do that.

That was back in the early part of November. I have followed up with him since and he told me that he had talked to them but new infrastructure money could not be applied to an existing project. Any project that was on the city of Winnipeg list would be excluded because it was already being dealt with. The issue then became how we would consider this project. I suggested to him that it would be a separate project. The first project had already been approved and it was a triple P, a totally different concept. This should be conventionally financed and they should find a way to do it under infrastructure money. We all remember the shovel-ready talk that this should be done because the city already owns the land.

I have had occasion to speak to the minister a couple of times over the last couple of weeks. On the first occasion, he said that I had better vote for the budget because there would be consequences if I did not. I just attributed that to him having a bad hair day and I let it slide. About a week later, I had another conversation with him. I asked him the same question and he repeated the same thing. He said that I should vote for the budget or there would be consequences. He kept referring to consequences. I do not think that is a good approach. He is out of sync with the Prime Minister because the Prime Minister is back to the sweaters. This minister should get on side and be a little warmer and friendlier.

In the Manitoba provincial legislature, I sat beside the highways minister. This is nothing new. It has been going on forever, regardless of the party that is in power. Conservative and opposition members, who sometimes ask very good, tough questions of the government, would come up after question period and talk to the highways minister, who was sitting right beside me, and ask about the bridges and roads that needed rebuilding in their areas. We need to be able to separate these things. We did not get all excited because the guy had voted against the budget. Of course he had. He was a Conservative in opposition and that was his role. He was supposed to be voting against the budget. He was doing his job by opposing the government and pointing out things the government should be doing.

However, we never held it against the member because he voted against the budget by not giving him his road. What kind of nonsense is that?

Let us flip it back. When we were in opposition, the same thing applied. We would ask the Conservative minister of highways a tough question about something to do with roads and a few minutes later we would cross the floor, have a chat with him and he would give us the answers. That is just the way things operate.

All I have tried to do is to get these parties together. However, we have a stubborn mayor who refuses to listen to over 5,000 people have responded to my surveys. It is not as if there are people opposed to this. Ninety-seven percent of the people are in favour of providing the two extra lanes.

Do members know that last June the Prime Minister announced $70 million, which is a third of the money, would go toward a bridge in Saskatoon? That bridge in Saskatoon carries only 21,000 cars a day. Our Winnipeg bridge, which is 50 years old and falling apart, carries twice as many. It carries 40,000 cars a day and the mayor says, no, that the city will wait the 20 years to add the extra two lanes and the 200,000 people up in that quadrant can just suffer.

I want to make it very clear that it is not the minister's fault that this has happened. I do applaud him for trying to take a leadership role in this, but he should follow through. He should try to convince the mayor that there is money available for these extra two lanes, that if he will put in his third, which he seemed very agreeable to do in the beginning, then we could continue this project and get it done. However, he seems to now have double-shifted back and is saying that it is all contingent upon how we voted for the budget, which is just not the way to do it.

The Conservatives have a new-found alliance with the Liberals but they have to be pretty confident that will last. As the leader keeps moving up in the polls, the Liberals may not pass that big report card the Conservatives need to answer to in a few months.

One would think the Conservatives would get those sweaters back on and be a little extra friendly with all the members over here in the opposition because, guess what, they might need our help some day.

In any event, I would once again appeal to the minister to find a way to get the infrastructure money out to deal with this issue that we are talking about in Manitoba.

We talked yesterday to the municipal people who told us that the infrastructure money was really not there for bridges anyway. They said that it was for shovel-ready projects that had to be finished within two years. They have a list of projects that might apply and those are basically renovations. If a community centre needs a little bit of renovating and it can be done in two years without any environmental assessment, then that is the project that will be funded.

Why, in this omnibus bill, is there a provision dealing with environmental assessments? Just what kind of environmental projects do the Conservatives think will qualify under their rules for the infrastructure money? The answer is, none. There are no environmental projects that will apply here because they will not be able to get their assessment done in time to get the project done in the two year allotment.

Once again, I made the argument about the two lanes. I said that because we already had the land, we probably would not need an assessment because it was already in the plans. I said that this project should be considered as a separate one-off project to avoid people suffering an inconvenience. It is not only me who will be inconvenienced. The member has a colleague from Kildonan—St. Paul who is also in the affected area. Conservative councillors in the area are all in favour. Every elected official, at all levels, is in interested in solving this problem. It is simply the mayor of Winnipeg who is the intransigent one in this particular project.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Madam Speaker, I would like my colleague to comment a little further with regard to employment insurance and the changes in the budget that the Liberals are supporting.

I understand, from what I have read in the budget, that there will be five additional weeks of benefits afforded to people who are entitled to them. However, it does not deal with the two weeks prior, which means that if they cannot get the first two weeks, they wait about 28 days before they get their first cheque.

I was just wondering what impact my colleague feels the changes to EI will have and whether he feels these are as lucrative as the Minister of Human Resources feels they are. I had applied way back when for EI when I was a young teenager and I did not feel that what I was making was lucrative.

In 1996, people used to make $647 a week and now it is down to a maximum of four hundred and some dollars, but on average people only collect about $355 a week. Does my colleague feel that this is lucrative or that it benefits the people who have lost their job? What is the impact on his community?