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.

Business of the House

[Jay Hill, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, the hon. House leader for the official opposition has many questions for the Thursday question and I will try to get to all of them.

Today we will continue debate on Bill C-14 on organized crime, which he mentioned. Following Bill C-14, we will consider Bill C-15, drug offences, and Bill C-16, the environmental enforcement act in that order.

Tonight we will complete the debate on the first report of the Standing Committee on the Status of Women.

Tomorrow we will begin debate at third reading of Bill C-2, the Canada-European free trade agreement and continue with any unfinished business that carried over from today.

When the House returns from the constituency week, we will continue with the business from this week, with the addition of Bill C-9, transportation of dangerous goods, which was reported back from committee.

You can add to the list for the week we return, Mr. Speaker, Bill C-7, marine liability, Bill S-3, energy efficiency, and Bill C-13, Canada grains, which are all at second reading and any bills that have been reported back from committee by then.

As to one of the questions that the member specifically mentioned, the last day in this supply period shall be on Tuesday, March 24, when the House will vote on supplementary estimates C, interim supply and the interim supply bill. As he noted, it is a very important day as these are the resources necessary to provide the stimulus to which we have all been looking forward and which Canadians are greatly anticipating.

Hopefully, the Senate will have passed the budget bill, Bill C-10 by then. In fact, as my colleague mentioned, my understanding is the opposition has suddenly discovered the parts of the budget bill that pertain specifically to the extension of employment insurance benefits, which will come into effect immediately upon royal assent of Bill C-10, the budget implementation act. Therefore, rather belatedly, the Liberal senators have decided to work with the Conservative senators in the other place and get the bill passed expeditiously. I hope that takes place this afternoon. It would be therefore my hope as well that royal assent could take place as early as this evening and we would see that bill enacted as quickly as possible.

As to the reiteration of my colleague's support for Bill C-14 and Bill C-15, our two latest justice bills, I welcome his support and I appreciate that. We are open to moving these bills through all stages as quickly as possible. Failing that, we would look to put up a minimum number of speakers, as we have done on many pieces of legislation already in this session, to move legislation through as quickly as possible. The problem, as my hon. colleague well knows, is not with the official opposition on or of the Conservative Party, the Conservative government, but with the other two parties, which are unwilling to do so.

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Speaker, I have the usual Thursday question about House procedure for the next couple of weeks. We all know that next week is scheduled to be a week to work in constituencies.

Therefore, I would like to ask the government House leader specifically what he has in mind for tomorrow and then the week following the constituency work week. Specifically in that week, which day will he officially designate as the final allotted day in this supply period? That would be the day not just to deal with an opposition motion, but also the supplementary estimates and the appropriations act, dealing with interim supply. It is very important for the House to know in advance which day that will be.

Second, I would ask the hon. gentleman, again, if there would be a mood in the House, apropos some of the subjects dealt with in question period, to move expeditiously on Bills C-14 and C-15. It was over a week ago that the official opposition offered co-operation to expedite those two pieces of legislation dealing with gangs and drugs. We renew that offer today in order to move those items forward quickly.

Finally, with respect to Bill C-10, which is in the other place, as we understand the developments as of today, it is possible that the other place will today finish its deliberations with respect to the bill, at the initiative of the Leader of the Opposition. I would ask the government House leader if he could indicate when there will be royal assent arranged for Bill C-10. Would he expect that to happen tonight or tomorrow?

The Environment

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Mr. Speaker, the changes made to the Navigable Waters Protection Act are unacceptable.

The Conservatives want to prevent people who hunt and fish from freely accessing Canada's natural resources. That is an acquired right that dates back to Confederation. The NDP proposed an amendment to remove that measure from Bill C-10. Unfortunately, the Liberals agree with the Conservatives on this issue.

Why should people who hunt and fish be deprived of those activities, which are already carefully monitored and regulated?

Employment Insurance

[Michael Ignatieff, Liberal, Leader of the Opposition]

Mr. Speaker, could I ask the Prime Minister again whether he is prepared to instruct the Conservative senators to vote speedy passage of Bill C-10 so that enhanced EI will be available?

[Michael Ignatieff, Liberal, Leader of the Opposition]

Mr. Speaker, Senate hearings discovered that eligibility for EI benefits was backdated two weeks prior to royal assent of the budget. This morning Liberal senators unanimously agreed to vote immediate passage of the budget. That way Canadians will be eligible for the help they need as early as March 1.

Will the Prime Minister instruct his Conservative senators to do the same so that Bill C-10 can get royal assent and Canadians in need of enhanced EI get the help they need right now?

Foreign Affairs and International Development

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Madam Speaker, I would like to begin with a short comment to correct the record. Earlier, the hon. member for Crowfoot said that the NDP moved this motion to somehow delay other debates. In fact, we are not opposing debate in the House, we are generating debate. We delayed moving concurrence in this report while the House was addressing Bill C-10. We were very responsible. However, this is a particularly important issue.

I listened to the hon. member for Calgary East go on about terrorists. The type of discussion that is happening here leads one to wonder how many members of the government have decided that Omar Khadr is in fact guilty.

I want to thank the member for Pierrefonds—Dollard for his intervention. The critical importance of this debate is the fact that we are shining light on a turn the government has made, which seemingly puts the government in the position of making decisions around guilt or innocence.

We have heard from Bloc members and others talk about the case in Colorado of Mr. Smith, who was sentenced to death, and the government chose not to intervene. There is something very wrong happening in our country.

[Judy Wasylycia-Leis, NDP, Winnipeg North, MB]

Madam Speaker, I am pleased today to address an issue I raised in the House that is actually turning out to be one of the most critical issues facing the life of this Parliament and facing the pursuit of equality in this country for many decades.

It will come as no surprise to many members that I rise again in the House on the issue of pay equity because it was on March 4, just last week, as a result of legislation presented to this chamber by the Conservatives and supported by the Liberals. that saw the death of pay equity in this country.

It is now up to the Senate to try to reverse the damage that has been done. I hope somehow that the folks in the Senate will see the wisdom of reversing the decision around pay equity and return to the women of this country their right to pursue equal pay for work of equal value through the courts.

I have the following questions today for the parliamentary secretary. Why kill something that is so important to the economic situation facing women in this country? Why cause a national embarrassment, which has been the case now with the Public Service Alliance of Canada raising a complaint with the United Nations? Why do something that will cost the government even more, because, if the Senate does not reverse the damage done, the women and the labour movement in this country will not stop? We will join them in helping them pursue a court challenge, which will cost the government incredible amounts of money.

I want to tell the House about the kind of correspondence we have received from individuals on this issue. I want to refer to Paul Durber, the former director of pay equity for the Government of Canada, who said, “I read part II of Bill C-10 with interest and great disappointment. Not only does it do away with pay equity, it even deprives people in the public service with pay equity of the right to have it maintained. The whole thing, quite frankly, is a smokescreen to mask the taking away of any obligation to compare the work of men and women”.

I want to reference the good work of Ruth Walden. She was part of a group of nurses called Medical Adjudicators who took their complaint for lack of equal pay for work of equal value to the Human Rights Commission beginning in 2004 and finally won that case just last year. If that case today were put to the government on a complaint basis it is likely it would be turned down and rejected because of Bill C-10.

Finally, I want to refer to Jennifer Meunier, a young woman who wrote to me and said:

You are not alone in fighting this. I may young but I am old enough to know that women have died fighting to protect our rights as equal citizens in this country. I certainly will not stand by the wayside and watch a lifetime of many women's hard work go to waste with the stroke of a pen.

I am here to tell Jennifer and others that we will not stop fighting this battle on winning equality.

[Ted Menzies, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, first let us be clear that our Conservative government is protecting transfer support during these challenging economic times.

We all recall that the old Liberal government shamelessly slashed transfer payments to provinces and territories to balance their books, forcing hospitals and universities to suffer. Our Conservative government will never do that. We will ensure provinces and territories have the long-term growing support required to provide the vital health care, educational and other transfers for the social services families need.

Despite what the member suggests, there have been no cuts to Canada's health transfer. In fact, federal support for health care is at an all-time time. Indeed, in 2009-10 the Canada health transfer will rise by $1.4 billion, reaching $24 billion. What is more, that support will continue to grow at 6% annually, reaching over $30 billion in 2013-14. We are not making any cuts to this historic level of that funding, nor will we change the legislated growth path of the health transfer.

However, we are responding to a shift in the economic circumstances of some provinces, most notably in Ontario, a shift that has resulted in unfair treatment of health transfers. In budget 2009, we set out the principles that will ensure fundamental fairness of health transfers, helping facilitate the move to equal per capita cash in 2014-15.

We recognize the need for provinces to have time to adjust to this new allocation formula. We also acknowledge the provinces' desire for more consultation on how to best move forward to meet health care needs for all Canadians while maintaining fairness in the transfer program.

That is why we decided on a transitional approach to implementing the equal per capita principle. Bill C-10, the budget implementation act, will ensure fair treatment for Ontario with respect to health transfers. Without this change, Ontario would not receive its fair share of health transfers. For 2009-10 and 2010-11, fairness for Ontario will be achieved through a separate payment. This will have no impact on Canada health transfer cash for any other province.

Again, no province will see a decline in their health transfers over 2008-09 levels as a result of this change. In fact, Manitoba will receive $903 million from the Canada health transfer in 2009-10, $43 million more in 2008-09. Rest assured that provinces like Manitoba can continue to count on long-term growing support from our Conservative government during these challenging economic times.

If the member for Winnipeg North will not take my word for it, she should contact her NDP provincial cousin, the NDP finance minister for Manitoba, Greg Selinger. He said, “The federal budget is good for the province and will stimulate the slowing economy. The budget had something in it for everyone, from consumers to businesses”.

Canada-EFTA Free Trade Agreement Implementation Act

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

Mr. Speaker, I would like to ask my hon. colleague a couple of questions.

There is an interesting opportunity for us to have a true national shipbuilding strategy. In my riding of Esquimalt--Juan de Fuca, we have outstanding men and women who work on shipbuilding.

The questions I have are these.

First, a section of Bill C-10 tore up an arbitrated agreement that our shipworkers had. This agreement actually eliminates the arbitrated wage settlement for which they have been waiting for a long time. Will the hon. member bring this matter to the attention of the minister and ask his government to reinstate that agreement? It is the right and fair thing to do for the shipworkers who work in our government shipbuilding and ship repair yards.

Second, will he support a national shipbuilding strategy and the movement of the import tax that we have when we buy ships abroad so that the import tax would go into a dedicated fund, matched by the private sector, that could be used for infrastructure for our shipbuilders?

Opposition Motion -- Employment Insurance

[Libby Davies, NDP, Vancouver East, BC]

Madam Speaker, the hon. member has asked a very timely question, considering we are approaching International Women's Day and should be celebrating the gains women have made.

Yesterday we saw the clock literally being turned back with the passage of Bill C-10 and the budget. The hard won gains that women have made over many decades for pay equity, for the principle of equal pay for work of equal value, have now been completely sabotaged by the government.

The member is correct. We know a woman earns about 70¢ to each $1 earned by a man. We know women's wages are lower. If they qualify for EI, and that is a big if in the first place, their benefit rates are lower too. They face barriers on two levels.

This is so patently unfair. All members of the House should feel a sense of outrage that this has been allowed to happen. We should support the motion to redress the wrongs that have taken place. We are talking about basic living standards. People are being denied a basic quality of life because of the terrible decisions that have been made around our EI system in the past decade.

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

Mr. Speaker, I also want to thank my colleague from Hamilton Mountain on proposing this motion this morning.

The debate we are holding today could be called “the dignity or deceit debate”. Allow me to explain. When I refer to dignity, I am talking about the dignity we need to give the unemployed, who did not choose to lose their jobs. When I refer to deceit, I am talking about how, since the early 1990s, the unemployed have been robbed of the tool the government created to support people who lose their jobs: the employment insurance fund.

The employment insurance fund used to be called the unemployment fund. The unemployment insurance program paid benefits to people who lost their jobs. That program was changed and given a new look. We did not want that change. Two successive federal governments changed that concept, in order to use the program in a different way.

As I said, the employment insurance fund is the only tool the unemployed have. Workers and their employers are the only contributors to this fund, which will help workers if they are unfortunate enough to lose their jobs. That is why the EI fund is also known as an insurance policy. I will not go on too long about this. I just wanted to remind this House about the nature of this tool.

This tool is structured to cover unforeseen circumstances. The unemployment rate is sometimes very high. Depending on the region, it has sometimes fluctuated between 8% and 9%, and it has reached 18% in some areas. There are even places where it has climbed to over 20%. Every time, the fund has fulfilled its commitments to the unemployed. Today, contributions are $1.73 per $100, but they have been as high as $3.20 per $100. When unemployment was higher, contributions automatically increased. Sometimes, the government came to the rescue for brief periods when contributions were not enough to cover benefits. But each time, the fund paid the government back.

In the mid 1980s, the Auditor General said that it might be a good idea to move the fund to the national budget, so it could be administered along with it. The accounting of it has, however, always been separate in order to meet obligations. The recommendation was made in 1985-86. In 1988 or 1989, the government accepted the recommendation.

Things became complicated when Canada found itself with an exponentially growing debt. When the Conservatives arrived on the scene, I think the Canadian government debt amounted to $93 billion. While the Conservatives were in office, they drove the debt to a little over $500 billion. Shortly before, Mr. Trudeau and his government had also contributed significantly to increasing the country's debt. This lack of concern over controlling the debt gave rise to public pressure, and the government had to do something.

Instead of looking for new sources of funding, however, the government dipped into a source not intended for the purpose. Beginning in the 1990s, the Conservatives began dipping into the fund. Subsequently, the Liberals made substantial use of it to the point that, by 1997, the fund had generated a surplus of $7 billion. Incredible.

And how did the fund generate a surplus of over $7 billion? The Liberals limited the conditions of eligibility so that accessibility to the plan, which was capable of providing benefits to 88% of people who had lost their job, was limited to 40% of the unemployed. According to the human resources department, the figure now is 46%.

This spells disaster for people who lose their job, their family, the regions and the provinces concerned, such as Quebec. The approach is totally disgraceful. The government paid off the debt little by little by appallingly taxing people who lost their job. They were denied a source of income that would provide a living for them, to the tune, today, of $57 billion. This is money taken from the employment insurance fund.

That is unacceptable. I find it hard to understand how the two major national parties are so comfortable with this situation. Not only are they comfortable with it, but they created it, are perpetuating it and continue to defend it. It is a huge swindle.

In legal terms, the Supreme Court ruled on it and said that, technically, the government was entitled to do what it was doing, because it had the power to collect taxes in different ways. This is one approach. Technically, the Supreme Court said it could. Ethically and in terms of its justice, however, should we tolerate this situation and allow it to continue—justice being our first concern—or should we not change tack today and correct the situation?

The deceit continues. Yesterday's vote on Bill C-10 will not correct the situation. With this budget, the two major parties have given the government the green light to keep contributions to employment insurance at their lowest level since 1982. What does that mean. It means that the government is putting a lock on any possibility of improving the employment insurance plan. Things are now twice as difficult.

We listened to our Liberal friends this morning. I am pleased with what they said but I am not pleased about what they did yesterday. It makes us skeptical about their discourse. Are they aware that what they are saying today cannot be taken to its logical conclusion without turning around and authorizing increases in contributions to keep step with needs, especially in an economic downturn such as the one we are experiencing now.

That would be quite in step with the recommendations made by groups concerned. These groups are the employers who also contribute to the fund, and the unemployed or the unions. We have to improve the employment insurance system and improve its accessibility.

The House of Commons Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities, in a December 2004 report completed in February 2005, made 28 recommendations, including the measures proposed in this morning's motion. Thus, both governments, the previous Liberal government and then the Conservative government, did not follow through. They found all manner of subterfuges to not follow through. That is also a form of deceit. There is no getting around it. It is a serious economic crime.

Every riding is out an average of $30 million annually. Not only does this impoverish the unemployed, it impoverishes their families, the regions, the provinces and, as I was saying earlier, Quebec. In the end, people contributed to an employment insurance fund in order to have an income if they had the misfortune of losing their job. But they do not get their money because Ottawa is holding it back. Thus, the province has to step in and support these people who do not have an income. At that point, welfare kicks in. The same people pay twice for a service provided by their province even though the latter should not have that responsibility. But it is forced to assume it because the federal government has sloughed it off. And the fiscal imbalance increases even further.

Thus, responsibility rests with the two major parties, as I mentioned earlier.

I will begin the second part of my speech by referring to something which most of our mothers have probably told us. In any case, it is something that my mother often said to me: “My boy, if you are not able to keep your word, if you are not able to honour your signature, if you dishonour your family, then of course you dishonour yourself”. In this Parliament, there are parties that have not honoured their commitments, not kept their word, and not honoured their signature.

I will give two examples. Let us take the Liberal Party. During the election campaign, it made a formal commitment, hand on heart, to help to ensure that this Parliament adopts measures to make employment insurance more accessible and to eliminate the waiting period—a formal commitment. In a joint platform signed by the three opposition parties on December 1, 2008—three months ago—the Liberal Party undertook to ensure that the program for older worker adjustment, POWA, was restored, that the waiting period was eliminated, and that the employment insurance fund would henceforth be used only to assist unemployed persons. This was barely three months ago. The Liberal Party’s vote yesterday on Bill C-10 is flatly contrary to that—three months later. Therefore that party has not kept its word, not honoured its signature.

As a result, the other opposition parties are very much afraid that they will be unable to depend on the word and the signature of the Liberal Party. Under the circumstances, given that this motion expresses an opinion to the government, that it is not binding on the government and does not create any constraints, we are very skeptical that the Liberal Party will again honour to the end its signature and its commitment.

It is very important to continue this debate and to continue to focus on the behaviour of the Liberal Party, to make sure that it understands that the three opposition parties form the majority and that they have a mandate from the population to see to it that the Conservatives do not act as if they were the majority and do not continue to implement their ideological decisions and programs. That should be the framework of the Liberals at this time. We have a responsibility. The mandate the people have given the majority opposition is to keep an eye on the government and ensure that the programs proposed are actually carried out. That is why we were elected.

In December, the coalition’s platform was created on the basis of these programs. The opposition parties looked in their programs for points in common, constituting a platform which would gradually take us out of the economic crisis. The objective was to kick-start the economy, so that in four years we might again have a balanced budget with a deficit of $23 to $27 billion during this period, with a very specific program.

There is something here that does not respect electors' wishes. The Liberals’ behaviour denies us the mandate we have been given. This I stress very strongly—more so than the content of the employment insurance program. For it will determine the way things turn out. If the Liberals are not going to honour their commitment to the end, we will never be able to rectify the employment insurance program. This injustice must be corrected.

This injustice can be corrected, formally, by voting for two bills, among others, which the Bloc Québécois has already introduced. That is why we are pleased that the NDP is joining us on this platform. I refer to Bill C-241 introduced by my colleague from Brome—Missisquoi, which concerns the elimination of the waiting period and which, incidentally, does not create enormous costs since these are only administrative expenses and there is no addition to the number of weeks.

We must therefore carry this through to the end and vote in favour of Bill C-241, which is presently in second reading. We must also vote in favour of Bill C-308 which it has been my honour to introduce myself, and which covers all the other elements of today’s motion so as to make the employment insurance system more accessible and improve it in a manner that respects the dignity of unemployed Canadians.

[Ted Menzies, Conservative, Parliamentary Secretary to the Minister of Finance]

Madam Speaker, I thank my friend and colleague from the other side for his continued questions and his passion for ensuring that his province is treated the same as every other province.

I just want to mention that today is a sad day for Nova Scotia. On this day, we mark with sadness the passing of a great Nova Scotian. I would like to convey my respect and condolences to the family and friends on the passing of the Hon. Michael Baker, Minister of Finance for Nova Scotia, after a long and courageous battle with cancer. Our thoughts are with his wife, Cindy, and his sons, Matthew and Daniel, at this time.

On behalf of the Minister of Finance, I wish to read his statement on Minister Baker's passing:

I had the good fortune to work with Michael, both in cooperation with Canada's other finance ministers to address the collective challenges facing our nation, as well as directly in our efforts to secure a resolution to the long-standing Crown Share payment issue for the people of Nova Scotia.

In all cases, Michael advanced the interests of Nova Scotia and Canada with the utmost respect for his constituents and colleagues, a profound appreciation for our parliamentary traditions and a great sense of personal responsibility for securing his home province's prosperity. His passing marks a tremendous loss for his family, his friends, his province and our country.

I will now address today's question. I want to assure the member that Nova Scotia's cumulative best-of guarantee is untouched by budget 2009 equalization changes. This means that Nova Scotia will receive at least as much equalization and offset payments on a cumulative basis as it would have under the system that was in place when the 2005 accord was signed.

On top of that, it will receive $1.5 billion of equalization and offset payments combined for 2009-10, along with a $74 million transitional adjustment payment, ensuring payments to the province are the same as 2008-09, despite the fact that Nova Scotia's fiscal capacity has grown significantly. This payment is legislated through Bill C-10, the budget 2009 implementation act. It is referenced on page 335 of that document.

In subsequent years, total equalization payments under the new O'Brien based system will grow in line with GDP on a three year moving average. The amount each province gets will depend on its fiscal capacity.

For example, a province growing faster than the national average might see a decrease, while a province growing less than the national average could see an increase. However, Nova Scotia was provided with what has become known as the cumulative best-of guarantee. This guarantee ensures that Nova Scotia will do at least as well under the new O'Brien based system, which Nova Scotia has opted into on a cumulative basis, as it would have if it had remained under the old system that was in place when the 2005 accord was signed.

The cumulative best-of guarantee and the 2005 equalization and accord system are not touched by the equalization changes in budget 2009.

The Environment

[Dennis Bevington, NDP, Western Arctic, NT]

Madam Speaker, I rise today to present a petition from the people of the Northwest Territories calling on the Conservative government to stop its plan to eliminate the environmental protections and the protections of the rights of navigation under the Navigable Waters Protection Act found in Bill C-10.

My constituents go on to indicate their displeasure with this provision being attached to the budget implementation bill and the elimination of the opportunities for extensive examination of this important right of Canadians and committees. This petition contains 63 signatures of people from across the Northwest Territories.

Budget Implementation Act, 2009

[Gordon O'Connor, Conservative, Minister of State and Chief Government Whip]

Madam Speaker, there have been consultations among the parties and I believe you will find consent for the following motion regarding the report stage of Bill C-10, the budget implementation bill.

I move:

That, notwithstanding any Standing Order or usual practice of the House, at the conclusion of debate at report stage of Bill C-10, an act to implement certain provisions of the budget tabled in Parliament on January 27, 2009, and related fiscal measures, all questions necessary to dispose of report stage of this bill be deemed put, and recorded divisions be deemed requested and deferred to 3 p.m. on Tuesday, March 3, 2009, provided that the bill may be taken up at third reading in the same sitting.

Opposition Motion — Municipal Infrastructure

[Megan Leslie, NDP, Halifax, NS]

Mr. Speaker, it is my pleasure to speak to the motion introduced by the hon. member for Parkdale—High Park.

I would like to thank the member for London—Fanshawe for agreeing to share her time with me.

The motion is essentially a way to address the failings of the budget implementation bill. It is really trying to send a message to the government.

Bill C-10, which is currently before the finance committee, simply does not go far enough to address our current economic crisis. Further, in the budget implementation bill the Conservatives have attached a series of ideological riders. They are trying to sneak through the back door a series of ideologically driven measures that have nothing to do with the stimulus package.

Hidden in this document of more than 500 pages are the Conservatives' proposals to take a woman's right to pay equity out of the human rights act. The bill would open up Canadian industry to more foreign ownership and would make it easier to go after students punitively. The budget fails to protect the vulnerable, fails to safeguard the jobs of today, and fails to create the jobs of tomorrow.

Today we have a Liberal motion to transfer money to municipalities via the gas tax and to transfer at least half of the proposed new infrastructure funding with no requirement that these funds be matched by the municipalities.

At the finance committee this week, New Democrats proposed amendments to Bill C-10. We proposed to strike the clause that proposes changes to the human rights act to prevent women from taking pay equity complaints to the Canadian Human Rights Tribunal. We proposed to strike the provision that relaxes rules around environmental assessments under the Navigable Waters Act. We proposed to strike the provision that unilaterally tears up collective agreements signed by the government. We proposed to strike the provision that introduces punitive changes to student loans. We also proposed to strike the provision that weakens control on foreign companies taking over Canadian ones, and we tried to strike the clause that required other levels of government to match funds before they flow.

The motion does try to fix one problem with Bill C-10, and that is a laudable premise, despite the fact that the Liberals abstained from a vote in committee earlier this week that could have done essentially the same thing. They abstained when a vote of “yes” would have meant a majority and would have meant that there would not have been strings attached to infrastructure funding.

Our proposed amendments were practical proposals for change. Our amendment to address environmental assessments in particular under the Navigable Waters Act was a proposal that was demanded by the people of my riding.

Constituents have written to me in shock that the Conservative government would see environmental regulations as red tape to be cut through. One constituent, Joel Richard from Halifax, wrote to me and said:

When we protect public access to waterways in Canada, we are also protecting the natural environment of those waterways. We understand that it is important to initiate infrastructure projects to stimulate the economy. But we should not use that as an opportunity to dismantle safeguards put in place to protect Canada's environment.

It has been made abundantly clear in the House that the budget and its implementation bill use the economic upheaval we are facing to push through a tax on women, workers and students. New Democrats would like to see less of that brutal agenda and more of the funds that are needed to get Canadians back to work.

The budget is another very good example of the government's inability to develop strategies, strategies to address issues such as the economic crisis, climate change, or gang violence.

Today the Minister of Public Safety introduced another bill that lacks a real strategy. In their attempt to address gang violence, the Conservatives have introduced a bill that really does not do much.

New Democrats will support the bill. In fact, we call on the Conservative government to fast-track it. When it comes to tackling violent gang crime, New Democrats are calling on the Conservatives to move farther and faster.

We need a comprehensive federal anti-gang strategy, but the bill is not a strategy, much like the budget implementation bill. A comprehensive strategy must include not only tougher sentences but also more police officers on the street, improved witness protection, tougher laws to tackle proceeds of crime, modernization of the laws that cover surveillance and evidence-gathering, and a comprehensive plan for prevention to ensure our kids are diverted from gangs in the first place.

The people of my riding are used to New Democrats getting results for people, and we have continually done just that.

Back in 2005, New Democrats in this House were able to get Bill C-48 passed. That was the NDP budget bill. The leader of the NDP and the member for Winnipeg negotiated hard to get billions of dollars for infrastructure and housing investments. This meant real investments for Halifax transit and infrastructure.

The NDP's 2005 budget amendment meant around $85 million in new investments for Nova Scotia, including $26 million for transit, $29 million for university and college infrastructure, over $20 million for much-needed affordable housing, and almost $8 million for off-reserve aboriginal housing.

Very much as a result of the member for Toronto—Danforth's work when he was president of the Federation of Canadian Municipalities and then later the leader of the New Democratic Party, we saw a new funding model that allowed money to flow in a quicker and more equitable way. This gas tax formula was superior to the previous system of always requiring matched funds.

It is clear that New Democrats know how to work collaboratively and represent Canadians in Parliament for results.

Housing is an area of provincial and municipal jurisdiction that the federal government can assist via infrastructure funding.

Until the mid-1990s, Canada had been a world leader in developing cooperative and not-for-profit housing, but it has done very little since. The Liberal government of the day allowed affordable housing investments in this country to stall for a decade because of the requirement for provincial matching funds at a time when provincial coffers were bare, so it is welcome now to see that the Liberals have adopted the NDP approach as their own.

New Democrats enthusiastically support this motion. I would have preferred that the members over there would have agreed to try to amend the budget bill instead. That would have actually changed the funding models in reality. As I stated earlier, these same members blocked our amendments that would have done exactly what this motion calls for.

Unfortunately, even if it is passed, this motion will have no real effect on these funds flowing out now. We will continue to see a requirement for matching funds from municipalities and provinces already stretched to the limit, and we will continue to see a lack of private funding slowing down projects. This will lead to unacceptable delays.

Just last month, I held a press conference with builders and housing advocates to illustrate how investment in affordable housing can address a serious housing crisis in a city while at the same time acting as a powerful fiscal stimulant. This conference was held at a site purchased and ready for affordable housing units, but waiting for adequate funding.

We have seen record job losses across the country, and the sad irony is that many of those jobs were in the construction industry at a time when thousands are waiting for sustainable and affordable housing to be built.

At this press conference, I was joined by Carol Charlebois of the Metro Non-Profit Housing Association, who spoke eloquently about the poverty-alleviating effects of affordable housing, and by Peter Greer, from the carpenters' union, who addressed the creation of jobs that would come from this type of investment. Jennifer Corson was there from Solterre Design, and she spoke about the carbon-reducing benefits associated with building environmentally sustainable units. It is win-win-win.

We had hoped that the budget would at least have a plan for creating jobs and helping those in need through affordable housing investments, but instead we saw small investments with these onerous strings attached.

I was also honoured last week to second the member for Vancouver East's bill to establish a national housing strategy. If passed by this House, this bill will bring all levels of government together to work to ensure secure, adequate, accessible and affordable housing for all Canadians. What we need is strong legislation to guarantee that money is turned into housing, so I hope all my colleagues here will support the member for Vancouver East's bill when it comes soon before the House.

In closing, I support this motion, but again wish that the members opposite had decided to do something about this just a little earlier.