Bill C-10 (Historical)

Budget Implementation Act, 2009

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

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

Budget Implementation Act, 2009

[The Acting Speaker, Denise Savoie]

There are only 30 seconds left, enough time for a very short question. The hon. member for Berthier—Maskinongé.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Madam Speaker, I would like to congratulate my colleague from Saint-Hubert on her speech.

I would like to hear more about the cuts. Filmmaker Jacques Godbout wants to save the NFB. The National Film Board has also suffered cuts and lacks money. I would like to hear what my colleague has to say about that. That is part of this budget.

[Carole Lavallée, Bloc, Saint-Bruno—Saint-Hubert, QC]

Madam Speaker, this government knows nothing about what artists need. It knows absolutely nothing. It is not making increases where they are needed. For example, the Canada Council's budget should be increased more. The government has cut money for the arts. It has cut $45 million from programs, which is preventing artists from travelling abroad.

It has given $25 million to a phoney Canada prize when the partners in that prize do not even know about it. The prize was a cut-and-paste job, lifted into the federal budget. The government knows nothing and has slashed budgets that allowed our artists to exhibit and perform abroad.

[Maurizio Bevilacqua, Liberal, Vaughan, ON]

Madam Speaker, as I rise today, all members of Parliament on both sides of the House understand that Canada is facing a storm of strong economic and financial headwinds, and we are feeling the turbulence of all this.

The impact has been greater and more extensive than originally stated by the Prime Minister during the recent federal election campaign. When we combine this with a more rapid deterioration in global economic growth, it has necessitated a discussion about substantial government intervention.

As industries such as automotive, forestry, mining and other sectors face uncertain times, as legislators we have a responsibility to respond to the concerns of people. It is the right thing to do, since we are dealing with potentially millions of Canadians who could lose their jobs, homes and savings.

These are difficult times and we need to do all we can to improve the present economic situation.

In 1993 the Liberal Party was challenged by what seemed to be insurmountable obstacles. We inherited a $42 billion deficit, double digit unemployment, skyrocketing debt and a tax system that was stifling economic growth. The record shows that while we were in office, we successfully eliminated the deficit, paid down the debt, created over three million new jobs and significantly reduced taxes, while we were dealing with externalities such as SARS and September 11.

All this was achieved in partnership and with the support of Canadians. It was a clear illustration of our resiliency as a people.

The present crisis and global economic uncertainty will test us once again. Ideas such as expediting infrastructure, investing in housing, building strong, sustainable and flexible labour markets, as well as training initiatives, supporting traditional and emerging sectors and improving access to credit must all be considered.

I believe we can in fact get through this difficult period, provided we adhere to some well defined principles which will address our short-term urgency without creating long-term negative repercussions.

We must first protect and help create jobs in Canada while respecting the taxpayer's dollar.

Truck drivers, hotel workers, people with small businesses, all Canadian taxpayers will be asked to contribute to proposed bailouts and billion dollar aid packages. Sometimes these individuals will be subsidizing workers whose salaries are much higher than theirs, as well as providing financial support to companies that may have misread and misunderstood the changing dynamics of the global marketplace. As Canadians, we have always shared in the risks and benefits of our common citizenship, however, we need to ask this fundamental question. Is this the best use of taxpayer dollars?

The answer to this question will vary according to the specifics of the proposal. Investments that create and expand opportunities should be supported, while others that offer no reasonable chance of success must be discarded. In evaluating the many options before government, it is important to assess the opportunity costs of the proposed measures.

Government's role must be clear. The priority must be to set up an overall framework that will encourage economic growth and job creation.

Canadians also need to have a sense that they can trust the managers of the economy, namely, the government. This is an issue that has arisen in conversations across the riding as I speak to constituents. Whether in schools or coffee shops, when I visit their factories and places of work, they often comment on the challenge they have when it comes to the Prime Minister's announcement during the election campaign, and they are referring to the issue of the deficit.

In September, the Prime Minister said that there would not be a recession in Canada and that we would be fine as long as we did not do stupid things, such as running a deficit.

In October, he suggested that the market represented some good buying opportunities for Canadians.

In November, his failed economic statement promised a surplus for the next five years. Twelve days later, the Bank of Canada announced that we were in recession.

In December, he admitted that his government would run a deficit of $20 billion to $30 billion.

In January, he said that his deficit would be closer to $40 billion. Once budget 2009 was tabled, we saw that the government was running a deficit in the current 2008-09 fiscal year.

So Canadians are concerned, and rightly so. After all, he is viewed as the leader of this country.

I believe that the federal government, in partnership with other governments, business and labour, must work to attain its economic objectives. As part of setting the framework, we must be committed to fiscal accountability, transparency and responsibility. On the tax front, our system must be globally competitive on both the personal and the business sides. We must encourage and reward work, investment, innovation and productivity.

Finally, no country in this world can survive in the long term without meaningful investment in people. This means providing opportunities for training and financial support during job transitions, as well as investing in individuals such as immigrants and aboriginal Canadians, who are consistently underemployed and whose potential remains largely unfulfilled. When aboriginal Canadians' potential is unfulfilled and when immigrants' potential is unfulfilled, our country's potential is not fulfilled.

During these times, we need to make the safety net more responsive and flexible to the changing nature of the labour market. This will guarantee that our human resources will be maximized.

All this must be done without sacrificing spending in areas such as research and development. Such a cut is shortsighted, due to the immense opportunity this area offers in modernizing the economy and providing stimulus for new ideas, new products and new services.

Tempting as it may sometimes be to look inward during difficult economic times, Canada must look at and place a high priority on expanding trade, which forces firms to specialize, to become more productive and to modernize. While recent events have put into question the regulatory framework of financial institutions in economic systems worldwide, I believe it would be ill-advised to impose on Canada's private sector and financial institutions a regulatory regime that would impede growth, innovation and job creation.

On the issue of infrastructure, infrastructure investments are also necessary to address the major deficit in this area. This is an example of smart investment, which will enhance the abilities of our cities, our communities and our country to compete and to maintain an economy that functions well, one in which goods and services move freely and efficiently.

On that point, I believe the government needs to release the funds for these infrastructure programs and not let the funds lapse, which would create a larger deficit for many of the communities that we proudly represent in this House.

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

Madam Speaker, I listened to the speech given by my hon. colleague, whom I knew in the past as the chair of the Standing Committee on Finance when Mr. Martin was the finance minister. Today he is telling us that a good securities commission system is needed. He is not specifying exactly what kind of organization is needed.

Does this mean that he finds the current system to be effective, as the OECD has said? The OECD ranked our system as second in the world in terms of efficiency. There is a consensus in Quebec to the effect that the existing securities commission should continue its work. That is the unanimous consensus of the three parties in the Quebec National Assembly and the entire business community.

Does he not find it inappropriate that this federal government decided to include the creation of a centralist approach to securities regulation in a budget implementation bill? Will the path of non-participation, the voluntary choice of companies, not simply nullify the jurisdiction of the Commission des valeurs mobilières du Québec as it currently exists and as desired by Quebec society as a whole?

[Maurizio Bevilacqua, Liberal, Vaughan, ON]

Madam Speaker, I thought the hon. member was paying careful attention to my speech, but perhaps he was not, because I did not address the issue of the national regulator. What I said was that I believe we need to have the most efficient labour market system that we can, including a financial system that speaks to allowing greater investments within Canada.

The focus of my comments was to outline clearly that certain principles are needed when one is creating a new environment to bring about and spur on economic growth. They include having a plan to eliminate the deficit, which is absent in the present budget; having a plan to invest in human resources; a clear statement in respect of taxpayers' dollars; a competitive tax system that rewards work, innovation and productivity enhancement in an economy; and investments in infrastructure.

I was commenting on this particular issue as it relates to the fact that the present government has lapsed money while communities are looking for funding to improve their quality of life and the economic efficiencies of their own local economies. I do not understand why there is such a government lag on this particular issue.

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Madam Speaker, I know my colleague is intimately aware of research and innovation in Canada. One of the concerns we are hearing increasingly about the budget is that it has provided cuts to the research community.

In my own community, Gerry Johnston from Dalhousie very quickly sent me a note, even while the budget was being unveiled, to say that we are losing money on the tri-councils, and all the research investments made by the Liberal government to make Canada such a research magnet and to reverse the brain drain are being reversed. Cuts to the tri-councils have caused real hardship and will cause much more.

I wonder if my colleague could comment on the cuts to research and innovation.

[Maurizio Bevilacqua, Liberal, Vaughan, ON]

Mr. Speaker, I know the hon. member for Dartmouth—Cole Harbour really cares about that question, because I see him working very hard with our caucus on this particular issue of research and development.

We Liberals understand that research and development is really an engine for new ideas, for new systems of thinking and for the type of innovation that brings about economic growth, usually creating high-paying jobs and thereby increasing the income levels of Canadians.

The field of scientific research and development is one of the fundamental points that the government opposite needs to get its head around. We cannot be cutting in areas that create economic growth while we are facing a recession. It is not smart policy for the present or for the future.

The House resumed consideration of Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures as reported (without amendment) from the committee, and of the motions in Group No. 1.

[Jean-Yves Laforest, Bloc, Saint-Maurice—Champlain, QC]

Mr. Speaker, in response to Bill C-10 to implement the budget, the Bloc Québécois proposed amendments that were then grouped with other amendments. The main purpose of the Bloc Québécois' amendments was to delete the entire portion of the bill relating to the government's intention to create a single securities commission.

Last week, during the Bloc Québécois opposition day, we focused on this issue. In Quebec, there has been strong opposition to this plan for several years. The Conservative government had a so-called expert panel undertake some studies and, in the end, it told the government exactly what it wanted to hear.

Quebec has always been against this plan, primarily because of jurisdiction. Securities regulation falls under Quebec's exclusive jurisdiction. The federal government must respect that. That is the main reason the Bloc Québécois proposed the amendment to delete provisions creating a single, Canada-wide securities commission from the bill. Such a commission would result in a regulatory monopoly that we believe would be dangerous for the entire regulated securities sector.

We currently have a proven system that has been made better with the introduction of the 13 passports. Within this system, the various regulators can deal with each other and institutions or organizations regulated by one entity can do business with the other 12 regulators.

At present, only Ontario has refused to take part in this initiative, which has been commended by the OECD and the International Monetary Fund as being very effective. Ontario has refused to take part because, by refusing, it put pressure on the government to waste no time in creating a single securities regulator that would likely be located in that province. That would have many benefits for Ontario, but not for Quebec.

With the changes affecting stock markets, including the case of the Montreal Stock Exchange versus the Toronto Stock Exchange, the securities regulator in Quebec, the Autorité des marchés financiers, has become the last bastion protecting the industry and securities trading in Quebec. The current passport system has made it possible for several organizations to exist, and it will continue to do so. It provides balance. The smaller regulators can encourage diversity and innovation.

We have only to think of the solidarity fund managed by the Fédération des travailleurs et travailleuses du Québec or FTQ. This is a Quebec innovation, but other provinces have also made innovations. The current system makes these innovations possible. It provides protection against overly large markets that would create a form of regulatory monopoly, as I said earlier.

This bill would establish a Canadian securities regulation regime transition office. This bill would provide the government with $150 million for this plan. We do not need such a system. To start, we would save $150 million. We can see that the government wants to spend large sums at a time when the economy needs the money. Creating this kind of an organization does not make sense; this money should go into supporting businesses. We are reminding the government almost daily that it must increase its help to Quebec's forestry industry, yet it is contributing only $170 million for the entire forestry industry across Canada. This is pitiful compared to the $2.7 billion given to the auto industry in Ontario. This $150 million could very easily be directed elsewhere. It would not entirely correct the inequity, but it would at least serve to soften the severe blows to Quebec's forestry industry.

This group of amendments also deals with tax havens. If it passes—which we hope it will—one of the amendments would ensure that the government cannot back down on recent announcements. In 2007, it said that tax havens are unfair to small and medium-size businesses and to workers in various sectors, because businesses that benefit from tax havens pay less tax, and then the tax which the government requires in order to fulfill its responsibilities comes, for the most part, from the pockets of workers and small and medium-size businesses.

This amendment would keep the government from backing down on previous commitments. We will support this amendment to remove the entire clause pertaining to tax havens from Bill C-10.

To conclude, I reiterate the Bloc Québécois' support for these Group No. 1 amendments.

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Madam Speaker, I am very pleased to have a chance to speak to the budget again at this stage. I want to reiterate my view, which is similar to the view stated by our leader: we are not so much supporting this budget as we are letting it pass. At a time of difficulty, what Canada needs more than anything else is fiscal stimulus and political stability.

There are some things in here that I think will help. Certainly there is a lot more than there was back in November. However, we think a lot more needs to be done and we are going to be looking for a lot more from the government. For example, with regard to pay equity, if the government wants to show some good faith to the people of Canada, the measures it has proposed regarding pay equity should be withdrawn from the budget. They are gratuitous, not needed and detrimental to Canada.

That is not the only area where we need to see changes. We have serious reservations. The biggest reservations I have with this budget concern the people in Canada who are most in need of help. On the weekend, the Leader of the Opposition was in Halifax for the very successful Nova Scotia Liberal annual general meeting. On Sunday morning, he had the chance to meet with some child care advocates in Nova Scotia. We had representatives from a host of organizations talking about the importance of early learning and child care. We had a representative who works in aboriginal early learning and child care, and people who work with people with disabilities and low-income families.

It is very clear that the government is heading in the wrong direction. I was disappointed that there was not something for early learning and child care in the budget. If we want to stimulate the economy, child care is a very positive way to do it. It does an awful lot of things.

Let me read a few of the things that early learning and child care does for Canadian families. Economically, it makes us more competitive. It yields a high economic and social return. Early learning and child care provided under the QUAD system, as was proposed by the Liberal government in 2005 and actually implemented, keeps families out of poverty. Of particular importance is that it supports the participation of women in the workforce, which $100 a month simply does not do.

In December UNICEF reported on a number of benchmarks for early learning and child care across the OECD countries. It is staggering to believe, but Canada ranked last. I should not say it is staggering, because those who understand what is actually happening in Canada, particularly now, would not be surprised. “Disappointed” is certainly a better word.

We come last in investing there. I do not know that all Canadians understand. Perhaps it is because we are not connected geographically to some of the more progressive nations in the OECD with which we consider ourselves allied. However, as a matter of fact, Canada lags when it comes to early learning and child care.

If we had a case in which a child of six or seven was denied access to primary school, there would be an outcry from everybody, yet every day, in every community in this country, children under six are denied the opportunity for early learning and child care. Child care does not stop at age six. However, education does not start at age six either.

On the social infrastructure side, this budget fails on a number of counts, such as employment insurance and tax policy. On EI, we have five extra weeks provided for those who qualify. Less than half of the people who actually pay EI can actually draw it, but this budget does not address that issue. It adds five weeks for those who already draw, which is helpful, no question, and they need it, but what about eliminating the waiting period, or making EI more generous, or equalizing access across this country, particularly for low-income workers, who often tend to be women? What about improving EI in that way? There is so much more that could have been done.

On tax policy, a report put out by Ken Battle of the Caledon Institute indicates that a family of four making $150,000 will get, and I am going from memory here, close to $500 in tax benefits from this budget, while a family of four making $20,000 will get nothing.

That is not fair. It is unconscionable. It is not right. I do not like that, and I want to make sure the government does something to equalize opportunity in this country.

I will give a couple of suggestions. What about doubling the GST rebate, so that families that actually need help could get more money? Measures like this are not only good for the individual and socially just, but they are also economically wise. They would actually put stimulus into the economy at a very big return rate.

A study Ian Lee has quoted, a senate study in the United States, indicates that investing in EI returns $1.61 into the economy. What about EI?

What about investing in the child tax benefit, particularly the low-income supplement that was sacrificed when the universal child care benefit came in? What about enhancing the child tax benefit as an opportunity to make this economy better for those who need help and also to improve our opportunities as a nation?

On the front page of The Globe and Mail today we saw the story of what is happening in research. Then the government stands up and says it is investing in research. It says it is investing here.

I met with some researchers back home on Friday afternoon with other colleagues from my party and my province. They are very worried. How can the government possibly cut the tri-council funding? Why would it cut funding to NSERC, to SSHRC and to CIHR? At a time when Barack Obama in the United States is investing $10 billion in research, we are cutting it back.

It indicates a fundamental lack of understanding of research. It indicates a fundamental lack of understanding that in research you cannot take your foot off the pedal. Ten years ago we reversed the brain drain in this country, and now we are on the verge of a perfect storm the other way. The Americans are investing and we are starting to pull back. That is not productive, that is not sensible and that is not good policy.

I would be remiss if I did not mention, while I have the chance, the importance of social science and humanities research as well. The government is not only cutting funding, but they are also targeting it away from social science and humanities funding. I think the reason is that social sciences and humanities funding validates arguments that are opposed to where the government likes to go on issues such criminal justice and economic policy. It does not make any sense.

We are going to let this budget pass. It is hard for me to say I support it. I say we will let the budget pass. I will give the government two great suggestions, and they do not have to credit the member for Dartmouth--Cole Harbour when they do it. I will stand up and say, “Well done”.

First, a couple of groups are not getting much attention in this whole slowdown. One is our students and another is the group of great not-for-profit organizations in our community, the people who work with people with disabilities, who work with seniors, who do youth recreation from soccer to swimming, who work with the heart and stroke foundation and all kinds of great organizations.

A perfect way to provide a stimulus is that for $100 million, in this day and age a very small investment, we could double the amount of money in the Canada summer jobs program. We could employ an extra 35,000 or 40,000 students this summer. They are going to be having a hard time. Companies cannot afford to hire like they used to, so students are going to be needing work.

At the same time, the not-for-profit organizations and the community organizations across this country are going to have a hard time hiring students. They are going to have a hard time keeping their own staff, so why not double the amount of the funding in the Canada summer jobs program? For $100 million, we could provide 35,000 or 40,000 jobs and help people who are suffering hardship as well as people who work with people with disabilities, with seniors and with child care. It is a great idea, and I give that to them free of charge.

Another one has to do with HMCS Sackville. Canada's naval memorial is looking for a permanent place. HMCS Sackville is the last surviving corvette from World War II. I think there were 269 corvettes that sailed across the North Atlantic and kept the shipping lines open. Many of the Canadians who served on them did not make it both ways.

Now Canada's naval memorial, HMCS Sackville, is looking for a permanent home in Halifax. If we want to use the infrastructure money effectively, the Government of Canada would do well to support the Queen's Landing project and give Canada's naval memorial a permanent home. I know the Minister of National Defence would share this view as well as my respect for HMCS Sackville.

I appreciate the opportunity to speak on the budget. It is not what I would like to see. I think at a time when Canada needs some political stability and economic stimulus, we will see how it goes. I cannot say that I am all that hopeful, but I am a patient man.

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

Madam Speaker, I cannot help but ask the member for Dartmouth--Cole Harbour how he can stand in the House and indicate that he is prepared to vote for something to which he says he is fundamentally opposed.

Where does the member draw the line? When is something so repugnant that he and others in his caucus will stand up and express their true feelings?

He will know, as others in the House know, the old expression, “They came for the women, and I was not there. They came for the people with disabilities, and I was not there. They came for the unions, and I was not there. They came for the Jews, and I was not there”.

Where and when does the member draw a line? When will he stand up for something that is as fundamental as pay equity, a human right in this country?

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Madam Speaker, I appreciate the question, but it portrays a fundamental lack of understanding of where Canadians are.

Let us say we vote against the budget. One of two things will happen. We would form a coalition government, which was proposed before.

Let us just see what she is accusing us of. She is accusing us of not wanting to take power. She is accusing us of not wanting to make our leader the Prime Minister of Canada.

What she is acknowledging in the question is that we are putting the country first, that we want to do what is right for Canadians, that Canadians want some political stability, that Canadians want a party that will put the politics behind us for awhile and make this thing work.

We have given those members every opportunity, but it is a very short leash, and our leader has made that very clear. We will have an election pretty soon, but my office has not been busy with people calling saying that they want an election because they have not had one for so long. It is crazy. We have to give this thing a chance to work, but we have to judge it harshly, and we will do that.

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

Madam Speaker, the hon. member is justly recognized as an astute observer in matters of social policy, spending, student assistance, research and a number of other areas. He has noted the really conspicuous propensity of the Conservative government to shrink government. At a time when government should be investing in the economy to assist the economy, could explain why that is there? Is it simply unrestrained prudence or is it just an exuberance to shrink government?

Three of the ministers over there came from an Ontario government that sold an entire highway to get government out of that. Could he comment on that?

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Madam Speaker, it is a wonderful question from my colleague, one of the most knowledgeable members and parliamentarians in this place.

The fundamental question right now is how the government feels about what it is doing. I am not sure the Conservatives even look at mirrors any more. I know the Kool-Aid containers need new Kool-Aid. They have all swallowed the lines over there. However, those guys do not believe in government. They love power, but they do not like government. They hate government. Now all of a sudden they are forced into doing something. They are saying today that we have to get it money out the door faster. A couple of months ago they did not need anything, everything was wonderful.

That government does not believe in government. It believes in power. It wants to shrink the federal spending power through tax cuts and other things so it does not have the opportunity to help those most in need.

When the Liberal Party of Canada takes power again, we will take care of those who need help. That is what we were sent here to do.