Budget Implementation Act, 2009

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

This bill is from the 40th Parliament, 2nd session, which ended in December 2009.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-10s:

C-10 (2022) Law An Act respecting certain measures related to COVID-19
C-10 (2020) An Act to amend the Broadcasting Act and to make related and consequential amendments to other Acts
C-10 (2020) Law Appropriation Act No. 4, 2019-20
C-10 (2016) Law An Act to amend the Air Canada Public Participation Act and to provide for certain other measures

Votes

March 4, 2009 Passed That the Bill be now read a third time and do pass.
March 4, 2009 Passed That this question be now put.
March 3, 2009 Passed That Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 394.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 383.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 358.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 317.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 445.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 295.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 6.
Feb. 12, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Feb. 12, 2009 Passed That this question be now put.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:20 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, I did not say that. That is not true at all. I said we should be discussing this because there is no consensus. This is provincial jurisdiction, and there are 13 regulatory agencies. However, it is also important to understand that this matter of whether or not we should have a single national securities regulator does not do anything for jobs. It is not necessary. The urgency is not there today. It should have been a separate bill.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:20 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I am pleased to speak today on the group of amendments submitted by the Bloc. For those who are listening, I would like to recall that the budget implementation bill puts into effect several initiatives including tax cuts, elimination of rules for tax deductibility for foreign corporations, and tax havens, which I will discuss in just a moment. It also includes changes to the employment insurance plan which, we believe, do not go far enough and do not address demand or provide the assistance needed by workers in these rather difficult economic times.

In addition, the budget will fund a transition office to oversee the creation of a single securities regulator, which my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup spoke about earlier. The budget also sets a cap on equalization payments and reforms the equalization formula, which has outraged the National Assembly. We have in our hands a motion by the National Assembly and our colleagues in the Government of Quebec, which criticizes the federal government for this. The budget also includes items pertaining to the Employment Equity Act, about which our colleague from Laval talked about extensively last week when she initiated a debate about the status of women.

We would like the House to accept the amendments proposed by the Bloc. Clause 6, which permits the use of tax havens, should be deleted. This short budget clause eliminates a section of the Income Tax Act that was designed to close a loophole used by Canadian multinationals to avoid paying taxes. Tax havens have cost taxpayers hundreds of millions of dollars. Since 1995, and recently, from 2000 to 2002, as well as in the 2003 and 2005 reports, the Auditor General reported on the use of tax havens, which are a from of tax avoidance. Section 18.2 of the Income Tax Act would have plugged this loophole as of 2012.

There is no justification for rescinding this section and it is quite scandalous. We need measures that will create jobs here in Quebec and Canada. We do not need measures that will create competition for local businesses that do not have the means to benefit from such a mechanism.

In this difficult economic context, the Bloc Québécois as well as thousands of taxpayers would like to know why the Minister of Finance is surrendering in such an important battle. The global economy as a whole is threatened by offshore investments and tax havens.

It is inconceivable that we would approve a decision by the Conservative government to allow too many financial transactions to go through tax havens. We must not let companies escape the social contract with the people and run away from their responsibilities. Many Quebeckers and Canadians pay taxes, and I am sure they are outraged to learn that companies will have the right to use such a mechanism and that the government wants to encourage tax evasion by multinationals.

The lack of transparency of tax havens makes it hard to identify credit risks and promotes market distrust. A report by the Auditor General revealed that the Canada Revenue Agency had a hard time properly monitoring international financial transactions and tended to go easy in tax probes of major corporations so as not to hurt relations with those companies.

Is the finance minister so blind that he did not understand from what the lobbyists said that companies are evading billions of dollars in income tax? Tax havens equal major capital flight. In 2000, according to the Auditor General, losses due to tax havens were equivalent to 50,000 taxpayers not paying their taxes. What about today? Statistics Canada says that the use of tax havens is on the rise, which is cause for concern.

The young people in my riding, Vaudreuil-Soulanges, want to know why it was not right to use tax havens to avoid paying tax in 2007, yet it became a good thing in 2008. Workers, seniors and the most vulnerable members of our society are asking themselves the same question.

The Minister of Finance knows, however, that we need some sort of oversight over the international financial market. In his 2007 budget, he said that steps had to be taken to ensure everyone pays their fair share. He complained that some foreign and Canadian corporations were using the tax rules to get around paying tax. He said that every time this happens workers and small and medium-size businesses have to pay higher taxes. He concluded by stating that it was unfair.

The anti-tax-haven initiative was proposed to prevent multinational corporations from using tax havens and other tax avoidance structures to generate two expense deductions for the same investment. Today, not only has the economic situation worsened, but the Conservative government appears to have taken steps to increase the injustice.

The Minister of Finance, members will recall, had already backed off in the fight against tax havens by acting on pressure from financiers in Toronto. He gave them a five-year grace period before the implementation of his plan to fight tax evasion and then set up an advisory panel whose independence and neutrality are highly debatable.

The finance minister out and out reneged on his commitment in the fight against tax evasion when he blindly accepted the recommendations of the Advisory Panel on Canada' s System of International Taxation. This panel was clearly set up to justify the minister's change of heart.

Of the six members of the panel, four are from private companies that may have benefited from the strategy and still can. They include, for example, the former CEO of the Bank of Nova Scotia, the Canadian bank with the most branches in tax havens. The authors of the report are clearly in conflict of interest.

How can the Prime Minister today justify allowing banks and oil companies to avoid taxes through tax havens, when thousands of jobs are being lost each month and businesses are closing their doors?

The fight against tax havens is an ongoing fight. Things must change democratically. A number of European countries would like tighter legislation right away and a much more transparent means of disclosing international financial transactions. Billions of dollars are involved. The disappearance of over half of the money to tax havens is cause for concern.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:25 p.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Madam Speaker, the member's speech was very clear, and I understand her points. I would like to ask her a question about process.

A lot of vulnerable people will be helped by this budget. We want to get the money out to them quickly. However, why would the government put in items that did not have to be in the stimulus package, that would not speed up the help for vulnerable people? Some of these could be rightful topics of discussion, but any proposed changes should be reviewed through the normal processes.

There is the pay equity section. Women of the country and federal unions such as PSAC are understandably outraged that this item would be in the budget, especially when PSAC's been told it would not necessarily save any money. Why is this so urgent and why can it not go through proper debate?

Then there is the Navigable Waters Protection Act, when a boom or a bridge is built, which affects canoeists, kayakers and rafters, hundreds of thousands of recreational boaters' organizations have said that they have not been consulted on that. How will this improve the economy?

The Competition Act has also been included in the bill, about which the Canadian Chamber of Commerce has complained. If we wanted to get money out quickly to those who are hurting, this did not have to be in bill.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:30 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I appreciate my colleague's question. Everything he said is important.

With regard to the most vulnerable, I believe the government is way off base. It would have been wiser to choose its targets better, among others, the changes to the equalization formula. To add to what my colleague said, changes to the equalization formula will cost Quebec almost a billion dollars a year, $991 million to be exact. The bill also lays the foundation for creating a national securities regulator, which the Government of Quebec opposes.

There is also the matter of reforming access to employment insurance. The government refuses to abolish the waiting period. For thousands of unemployed workers, there is nothing encouraging in the budget. The bill proposes misguided tax reductions and eliminates provisions of the Income Tax Act aimed at preventing corporations from avoiding taxes by resorting to tax havens. There is also the matter of deregulation of foreign investment, which opens the door to foreign ownership. Funds allocated for social housing are poorly targeted and allocated, as indicated by the community development trust. And that is not a complete list.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:30 p.m.

Bloc

Jean-Yves Roy Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Madam Speaker, I would like to thank my colleague from Vaudreuil-Soulanges for her wonderful speech.

I would like to give her an opportunity to continue, particularly concerning employment insurance. The government is proposing to extend the employment insurance benefit period by five weeks for those who can receive benefits. Only a minority of the population presently receives employment insurance benefits or could do so.

I would like my colleague to explain why the Bloc has demanded real employment insurance reform.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:30 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I would like to recognize the important work that the member for Chambly—Borduas is doing in this file.

The Bloc Québécois is demanding substantial improvement to the employment insurance system. I would like to read the Bloc's position on this issues. We must make the following changes:

Reduce the qualifying period to a minimum of 360 hours of work, regardless of the regional rate of unemployment; increase the rate of weekly benefits from 55% to 60%; eliminate the waiting period; eliminate the distinctions between a new entrant and a re-entrant to the labour force; eliminate the presumption that persons related to each other do not deal with each other at arm’s length; make it possible for self-employed workers to belong to the program on a voluntary basis; and calculate benefits based on the 12 best weeks.

Those are the major improvements that need to be made to the employment insurance system.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:30 p.m.

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, I am pleased to join the debate on the budget implementation bill. The amendments are being brought forward to try to take away some of the inequities that have been included in the bill, as previous members have stated. They are inequities that do not have much to do with the idea of having a package of financial measures to respond to the fiscal crisis, but rather adopts the government's approach to its agenda for our country, which varies considerably from that which our party supports.

I will review what has happened in the last few months in the country.

On November 27, we had the fiscal update, which to be fair and very polite ignored the fiscal reality. The government decided it was a good time to include three very prominent measures that caused quite a big furor in the House and across the country.

The first was an attack on the rights of women by declaring that pay equity was no longer something with which the Human Rights Commission was able to deal. It was to be eliminated from the remedies under the Human Rights Act and made something that would have to be bargained like any other item for collective bargaining.

The second was an attack on collective bargaining rights, for which workers across the country have fought for decades. The indication that the government would refuse to honour agreements with workers was an attack on collective bargaining.

The third was something that also caused a big furor as well, and that was the attack on the changes that had been made to party financing in the wake of the Liberal financial sponsorship program scandal. Imposed were fair rules for financing our political parties.

We and the Bloc were opposed to the attack on those fair rules. The Liberals were extremely opposed. In fact, as a result of these measures and the failure to address the problem, the Liberals agreed to enter into a coalition to replace the government to ensure that these things would not happen and that the government would be able to respond to the needs of the people.

If all the rest is taken away, that is really what happened in December, just a couple of months ago.

As we know, Parliament was then prorogued through the application of the Prime Minister. We came back again on January 26. What do we have? We have some changes to the government's attitude toward the budget, but what has happened to those three major irritants that caused the problem for the Liberals back in December? All but one of them are still there.

We still have an attack on women. We still have the removal of the pay equity provisions from the Human Rights Act remedies. Women in the public service can no longer avail of the rights that many other Canadians have to seek remedy from the Human Rights Commission for a violation of pay equity in the federal sphere. They now have to go and bargain along with every other item on the agenda of a collective bargaining session and play with the give-and-take of hardball negotiations on the part of the employer, or not, or whatever takes place. Pay equity becomes another bargaining item along with holidays, overtime pay, vacations and various other things. Pay equity is one of the things that as part of these negotiations is totally wrong. However, it is apparently acceptable to the Liberal Party of Canada and to the Liberal opposition in the House. I find it astounding that this could be the case.

The other issue is collective bargaining. Part of the implementation act are the changes that would be brought about to ensure all the collective agreements in the federal public sector would be changed, with pay increases that have been negotiated or agreed to wiped out. That is being done at the drop of a hat by the government, supported by the Liberal Party of Canada.

One of the three major irritants that has been left out is the one which would take away party financing for the Liberal Party of Canada. Now the Liberal Party is supporting the government and the measures it is implementing, including the attack on pay equity, the attack on women and the attack on collective bargaining.

It is kind of ironic. There was quite a furor in the House in December. Every single member of the Liberal caucus signed the letter declaring their lack of confidence in the government, declaring their willingness to form a coalition government to govern the country and prevent the very things that we see them complain about every day in this House.

I was a little encouraged the other day. The member for St. John's South—Mount Pearl was entertaining some protestors from the Public Service Alliance of Canada who showed up at her office on Friday. They were protesting the fact that the Liberal Party was supporting the pay equity changes. According to news reports the member invited them in and she was asked whether or not there was any opportunity of hiving off those pay equity provisions from the budget implementation bill and dealing with them separately. The member apparently was interested in trying to do that but was not sure that it could be done.

I want her and all members in the House to know that there is an opportunity to hive off those sections of the bill. There are opportunities in this debate through report stage motions and amendments to vote against particular provisions of the budget implementation bill and pay equity can in fact be taken out and members can vote accordingly. I would certainly encourage them in that regard.

I am glad to see that the member for St. John's South—Mount Pearl has an interest in that. I look forward to her supporting the amendment which would remove that. For any member of the Liberal caucus who would wish to register his or her objection to the removal of pay equity rights for women, there will be opportunities for them to do that today. Whenever it comes to a vote, I look forward to seeing the member for St. John's South—Mount Pearl and others join with us in seeking to amend this legislation at least to the extent that it does not trample the rights of women when it comes to pay equity. It is a very significant issue for many people across this country and for the women who fought for pay equity.

Again and again I hear the President of the Treasury Board talk about how the Conservatives are fixing this. It took 15 years for women to achieve pay equity in the public sector. My question is, why is that? Who was in government forcing the women to spend 15 years fighting for pay equity? Who opposed these applications? Who opposed these measures before the Canadian Human Rights Commission? It is very obvious. Who was in power during those 15 years? During those 15 years, it was the Conservative government of Mr. Mulroney and then the Liberal government of Mr. Chrétien. Those were the governments in power. That is why it took 15 years, not because there was a problem with the system, but because both governments, the Conservative government and then the Liberal government, resisted every single step of the way to ensure that it took 15 years.

All the President of the Treasury Board has to do is say, “Hey, we are going to streamline this process. We are not going to resist. We are going to let the process take its course as it should”. All the Liberal members have to do is ensure that when the opportunity comes, they actually take this provision out of the budget implementation bill.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:40 p.m.

Bloc

Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Madam Speaker, we are at the report stage for the budget implementation bill, and the group of amendments currently before us includes amendments about tax havens. The Conservatives have decided to do a 180 and go back to the old way of doing business, which resulted in billions of dollars leaving the country. Paradoxically, they have decided to set up a Canada-wide securities commission, which is unacceptable to Quebec. This group of amendments also includes the Conservative government's decision to exempt several foreign corporations buying Canadian companies from review. In these troubled economic times, when we should be tightening up the rules, the Conservative Party has, as always, opted for total laissez-faire and wants the market to handle everything. What a paradox. We all know how that worked out; we are living with the economic crisis now.

I would like the member to tell me whether he finds the Conservative government's decision to go ahead with this measure paradoxical because it will allow greater foreign ownership of our companies with no controls in place. The government will be giving up control over what happens after that. Is it not paradoxical that the Conservative government, with the support of the Liberal Party, should be going ahead with such a measure?

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:45 p.m.

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, yes, it is rather ironic that during the election campaign when the Prime Minister was apprised of the fact that there were serious problems in the stock market, he said that this represented some good buying opportunities. The irony is that by opening up the foreign takeover opportunities, he is now wishing to make those buying opportunities available to capitalists, entrepreneurs and companies in the rest of the world when the stock prices are so low.

Some of these companies are now at fire sale prices. Despite the huge drop in the stock market, many people and companies have enormous cash reserves. This seems to be the wrong time to make it easier for foreign companies to take over Canadian enterprises by lowering the standard and not making it subject to review in many cases. I think the new rule now is $1 billion. There are many companies now available for takeover by foreign enterprises without a review of any kind. It is basically open season for Canadian enterprise to be gobbled up by those with strong foreign cash reserves. It is the wrong time to be doing this and I certainly oppose it.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:45 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Madam Speaker, both Dofasco and Stelco are located in Hamilton with ownership from outside of Canada. The member talked about a laissez-faire style of governance in this country. With the $1 billion cap, it strikes me that a lot of companies will slip out from underneath it. Does the member share that view?

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:45 p.m.

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, yes, a lot of companies previously would not have been covered by this, but because of the low stock prices their market cap is so low they are vulnerable to takeover without any review whatsoever.

We have seen the attitude of multinational corporations--or transnational corporations, which I think is the preferred phrase these days--that have no concern whatsoever for the consequences in this country with respect to layoffs and things like that. It is a bad thing and it is open season.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:45 p.m.

Liberal

Kirsty Duncan Liberal Etobicoke North, ON

Madam Speaker, it is an honour to speak in this House to give thanks to the people of Etobicoke North and discuss infrastructure, an important component of the stimulus package and a real need in our riding.

Municipalities provide much of the infrastructure and services that matter most to Canadians: bridges, public transit, roads, sewage systems, et cetera. However, cities are the level of government least able to fund these projects. Municipalities, unlike federal and provincial governments, are uniquely constrained. Their main source of revenue is property tax which is likely to be reduced for at least the near future as the housing market trends downward.

Canadian municipalities must stay on top of infrastructure needs as complacency and further deterioration may ultimately prove deadly. We cannot afford to ignore warning signs or to repeat the mistakes of the past. For example, a Portuguese mayor repeatedly told the government that a bridge crossed by 1,600 vehicles a day was unsafe before it plunged into a river, submerging two cars and a coach. In 1990 and 2005, the U.S. government gave the Mississippi bridge a rating of “structurally deficient” before it collapsed, sending more than 50 cars plunging 20 metres into the river below. Here in Canada drivers reported chunks of falling concrete about an hour before the collapse of an overpass in Quebec.

These tragedies all have one thing in common: the behaviour of organizations and people who fail to assume their responsibilities during the building or service life of the bridge. I point out that I could have chosen examples regarding other forms of infrastructure.

Recent disasters show the importance of protecting Canada's infrastructure from all types of hazards, for example, the 1996 Saguenay flood, the 1997 Red River flood, the 1998 ice storm, and the 2003 power blackout.

Canadian municipalities build, own and maintain most of the infrastructure that supports our economy and quality of life. Unfortunately, our Canadian communities are increasingly at risk of human made and natural disasters, largely because after decades of neglect, our once efficient and reliable infrastructure is now crumbling. Municipalities facing growing responsibilities and reduced revenues deferred needed investment and infrastructure deteriorated.

Canadian public investment in infrastructure has declined significantly since the 1960s. Public investment measured as a proportion of gross domestic product peaked at almost 5% in 1966 and fell to 2.6% by 2002. Deferred investment has significant consequences including the closing down and failure of some facilities such as bridges, roads, sewage and water supply.

The 2004 report, “Assessing Canada's Infrastructure Needs”, showed that Vancouver had bridge and traffic congestion that cost the region an estimated $1.5 billion in air pollution, lost work hours and shipping delays as the city's bridges were too narrow and therefore had to operate over capacity.

For Calgary, a transportation infrastructure improvement list included 880 million dollars' worth of major roadway projects. For Saskatoon, the needs included two more bridges and a list of road projects worth over $750 million. The estimated costs of reducing the backlog of repairs to highways, streets and viaducts in Toronto was $300 million and continues to grow today. Just to bring home the challenge, there are over 10,000 streets in Toronto with 5,300 kilometres of roads and 530 bridges.

Canada's infrastructure was mostly built between the 1950s and the 1970s. The decay is accelerating faster than previously thought, with infrastructure showing 79% of its service life already used.

Estimated cost to fix infrastructure increased fivefold, from $12 billion in 1985 to $60 billion in 2003. Today the cost is a staggering $123 billion.

Although I have largely focused on bridges and roads, infrastructure is needed for community, cultural and recreational infrastructure, solid waste management, transportation, and water and waste water systems.

The government proudly announces that the gas tax fund allows all municipalities to better plan and finance their long-term infrastructure. This is because municipalities know in advance how much money they are getting, know they will receive funding on a regular basis and know that in turn they must account for how they spend the money. Planned, steady spending allows shovel-ready work to begin quickly.

Unfortunately, Canada's cash-strapped communities are being asked to pick up a third of the cost of stimulus infrastructure projects. This means that Canadians will see fewer shovels breaking ground, fewer jobs created and too little stimulus to the economy when they need it most.

Government cannot afford to wait while municipalities find the money and infrastructure continues to deteriorate. We have all seen far too often what happens when organizations and people fail to assume their responsibilities with respect to building and maintaining infrastructure.

In some cases we will have to go further and make life-protecting investments, such as the much-celebrated Red River floodway expansion project, which provides a once in 300 years level of flood protection, equivalent to the largest flood in Manitoba history.

It is also important to recognize that the risks to infrastructure are becoming increasingly complex and frequent. For example, climate change is affecting our capacity to manage the risks associated with natural disasters, and Canada has seen a rise in severe weather related natural disasters such as droughts, floods and severe storms.

The 1998 ice storm in eastern Canada left three-quarters of a million homes without electricity, and the weight of ice and snow toppled 1,000 transmission towers and 30,000 utility poles.

The impacts of climate change on infrastructure are already evident in Canada's north. Permafrost is the foundation for airstrips, buildings, and community water. Thawing permafrost will have serious socio-economic implications for maintaining these structures.

A more efficient, faster and more stimulative method must be found to transfer federal funding to municipal infrastructure projects. The need is particularly great among first nations communities, where $1.4 billion is targeted for infrastructure, housing and skills; although encouraging, this investment does not reflect the need created after decades of economic marginalization and unfairness. Canada, which normally ranks in the top ten of the United Nations development index, would fall to 48th place out of 174 countries if judged solely on the economic and social well-being of first nations people.

In closing, I leave the House with a plea made by U.S. Congressman Elijah Cummings following hurricane Katrina: “We cannot allow it to be said by history that the difference between those who lived and died was nothing more than poverty...”

The 2001 census data showed that one first nations community was in the top 100 Canadian communities, while 92 were in the bottom 100. Let Canada not make the same mistake with communities that can pay versus those that cannot.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:55 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Madam Speaker, I have to say that I agree with much of what I heard in the remarks of the member for Etobicoke North.

She talked about the difficulty municipalities will have in coming up with one-third of the money to match funds. In my home community of Hamilton, 7,000 people lost their jobs in February. In the last month, 600 families had to go on welfare.

The budget absolutely fails to do what the government says it does in stimulating the economy. We all know that the $62 billion tax break is $60 in tax breaks for every dollar invested in Canadians.

EI is the front-line defence for Canadians, and there has been no change there to help them. There is no change in accessibility. It is the first line of defence for Canadians.

The budget also, in a very underhanded fashion, will neuter pay equity for women in Canada.

Can the member tell us if she will now join with us and defeat the budget?

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 12:55 p.m.

Liberal

Kirsty Duncan Liberal Etobicoke North, ON

Madam Speaker, over the last six months Canada has the second-worst-performing economy of the G8 countries. In the fall our Prime Minister told us that there would not be a recession. At the time of the economic statement we were told there would even be a surplus. By January we were told we would be $13 billion in debt, and today we know it is much higher.

Canadians are in real trouble. A quarter of a million jobs were lost in the last three months alone. We need an economic stimulus package now for all Canadians.

Budget Implementation Act, 2009Government Orders

March 2nd, 2009 / 1 p.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Madam Speaker, I would like to point out that, in this budget, the Conservative government has announced a lot of money for infrastructure. I was in my riding recently, where some of the rural municipalities have 300, 400 or 500 people. They have to do a lot of road maintenance and take care of other infrastructure, and they are having a hard time dealing with those needs because they do not have the money. Even if the federal government does invest a lot of money, they do not have—