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

[Thomas Mulcair, NDP, Outremont, QC]

Madam Speaker, how can the member support legislation that takes away a woman's right to equal pay for work of equal value, that takes away unions' rights to bargain collectively, that attacks the environment by removing the essence of the Navigable Waters Protection Act?

Two of those three things were in the fall statement on which the Liberals were ready to defeat the government. The only thing that has changed this time is the Liberals got their party financing back.

Is this not the definitive proof that the only principle the Liberals believe in is the principle of their own—

[The Acting Speaker, Denise Savoie]

I would like to give the hon. member for Dartmouth--Cole Harbour a brief opportunity to respond. He has 30 seconds.

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

Madam Speaker, my colleague is asking me about pay equity, the environment and the public sector. In the next election Canadians will have a choice. The government after the next election will either believe in pay equity, the environment and the public sector or it will not.

We believe in those things. We will stand up for those things and ensure that they are done the way Canadians want them to be done.

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

Madam Speaker, I rise with incredible sadness, disappointment and concern again today. It is really hard to sit in the House and to hear from Liberals that they find certain elements in the budget bill absolutely repugnant and reprehensible, yet they are able to look themselves in the mirror and vote for it.

The Liberals suggest that it is the Conservatives who should look in the mirror and try to face up to what they are doing. The irony is we know where the Conservatives are coming from and we are trying to change their minds. We know from statements of the past that they do not believe in equal pay for work of equal value. In fact, they are clinging to the concept of the fifties of equal pay for equal work. We know they do not respect the work of women in our country, women who have for the last 30, 40, 50 years struggled for equality. We know they do not understand what is at stake for women who desperately want to achieve in their lifetime that goal of equal status. Therefore, we understand what we are up against and we are using every tool we can think of and find at our fingertips to try to bring them to their senses. While they may agree with those antiquated regressive statements and positions, the majority of Canadians do not. Therefore, we expect the government of the day to reflect the majority will of Canadians.

However, for the Liberals, I cannot begin to find any rationale at all in the statement just made by the member for Dartmouth—Cole Harbour, that they can justify standing up and saying that they believe in something as fundamental as pay equity, but they are going to let the government do what it has to and that they are going to just hold their noses and let it happen.

Where do they draw the line? When do politicians stand up for what they believe in? When does it count? Why did we get elected than but to stand for something we believe in and fight for it?

Pay equity is unlike all the other issues we are dealing with right now. It is a fundamental human right. It is a right that is being totally eliminated in Bill C-10. Members should read the bill. The government is taking away the right of women to go to the Canadian Human Rights Commission. There is no reprieve, no avenue through our courts to seek that fundamental right entrenched in the charter.

Instead, the government is putting in place legislation that does not honour the concept of equal pay for work of equal value. In fact, it does not allow for a comparison of jobs between men and women so we can get rid of women in ghettos where they are underpaid and undervalued.

Interestingly, nowhere in the entire legislation, in this so-called equitable compensation act, is the word “men”. How can we have pay equity if there is no way to compare? The legislation is not proactive. It takes away a fundamental right. It is the loss in one fell swoop, in an instant of everything for which the women's movement has fought for more than 30 or 40 years.

The Liberals can stand in the House and say that in the interest of avoiding an election they will let it go.

[Randy Hoback]

Smart people.

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

My Conservative friend over there suggests they are smart people. I guess by a Conservative definition, that is being really smart. That is intelligent, is it not? Do not stand for principles. Do not stand for what one believes in. Do not be committed to why one got involved in politics in the first place. Principles go out the window. Expediency counters all commitment to principles. It does not matter. Is that smart? Is that intelligent? That is not what the voters want. They want us to stand up for something in which we believe.

We are not looking at this from the point of view of whether it is going to cause an election. We are simply saying this is fundamentally wrong.

The Minister of Justice, the Attorney General of this land, is wrong. He is not being forthcoming. He is not telling the truth to Canadians. We have only a few opportunities to say that and to try to convince somebody in the House, besides New Democrats and the Bloc, to stand up for their principles. We do not have any time left.

The Liberals need to think about what they are doing. They need to realize what this means in the country. They need to understand what they are doing in terms of destroying a legacy, of destroying something women before us fought for and won. They should not think about themselves; they should think about the women and others who fought for pay equity before us.

There are other parts of the bill that are up for debate this afternoon, and I want to touch on another one. This group of amendments deals with the national securities regulator. Again, I want to let all members of the House know why we are opposed to the national securities regulator. In fact, this does not come from a group of New Democrats but from many Canadians who are very worried about savings that may be lost or who are feeling the pain of having lost their life savings.

Whether we look at our seniors or our small business investors, one thing is clear. They have all told us we cannot simply put in place a national regulator and expect the world to be fixed. This will not mean anything unless the government decides it really wants to get tough, in terms of financial abuses, and wants to crack down on fraudsters and those who take advantage of others through criminal means.

I want to refer to a well-known activist in this area. The Conservatives will know the name of this person, I would hope. It is Stan Buell, president of the Small Investor Protection Association. He says very clearly that we can consider the idea of a national securities regulator. However, we know that unless we proactively work in this area to protect seniors and others from those who take advantage of them, all the national securities regulators in the world will not mean a thing. Regulators, he says, requires someone who believes in taking power to do just that. This area requires investor protection, not just regulation. He says that we have to have action that allows for whistleblowers to come forth under protective and proactive legislation.

He says:

For Canadians across Canada to receive adequate investor protection, there must be a paradigm shift in the approach to regulation.

I want my Conservative friends to listen to this very clearly so they will know where we are coming from and what we expect of them. He says:

Whether Canada moves to a NAFTA regulator, moves to a harmonized system with passports and Uniform Securities Laws, or retains the status quo, investors will see no improvement if the regulatory system remains based on prescriptive rules that enable the industry to circumvent regulations and to develop new products faster than rules can be changed.

That is what is at stake with respect to this part of Bill C-10 and why New Democrats are fundamentally opposed to a provision in the bill that now suddenly, out of the blue, moves toward a national securities regulator. For all of these years, nothing was done by either the Conservatives or the Liberals before them, to the point where the provinces put in place the passport system, which has been serving our country well in the face of a vacuum.

It makes no sense for the government to now proceed without indicating to Canadians that it is prepared to crack down on fraudsters and con artists who take advantage of people and their life savings. No one in the country will be assured through this budget of any kind of help or assistance on the part of the government if there is no set of protective measures put in place that will give Canadians the confidence that someone will be there when a fraudster operates and when consumers are taken advantage of. That is putting the cart before the horse, and we object to that.

[Jack Harris, NDP, St. John's East, NL]

Madam Speaker, I have a letter from the president of the Newfoundland and Labrador Federation of Labour, Lana Payne, addressed to me. I assume the six Liberal MPs from Newfoundland and Labrador have also received a copy of the letter, because she is asking all opposition members to take whatever steps are necessary to remove the Public Sector Equitable Compensation Act from the budget implementation bill. We will have a chance to do that later today, so I hope the Liberals from Newfoundland will help to try to defeat this.

I do not know if there has been enough attention given to one of the things she complains about in the letter, that in the budget implementation legislation there is a provision that says that if an individual woman in the public sector files her own complaint through the Human Rights Commission, if a union supports and helps in that effort, the union will be fined $50,000 for helping one of its members apply to the Canadian Human Rights Commission.

I wonder if the member for Winnipeg North would care to comment on the fact that a government would impose a fine on a union for helping a member file a human rights complaint. Is that something she has ever heard of before? I know I have not. I do not know everything that has happened in this country in the last 50 years, but this is a real shock to me.

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

Madam Speaker, that was a shock to all of us. We knew the Conservatives were dead against something as progressive as pay equity and were going to try to do whatever they could to kill it, but on top of that, to fill up this legislation with slings and arrows and to suggest that anyone advocating in the labour movement on behalf of an employee to get the employee's rightful access to pay equity would be penalized to the tune of $50,000 is just beyond comprehension, beyond belief.

I have never heard or seen anything like this in my 20 years of elected political office, nor in my 40 years of working in the political movement, especially in the women's movement where we have fought for so long to have pay equity in the first place. We cannot stand here and allow pay equity to be killed in one fell swoop without doing everything we can to stop it. Everything about this legislation is wrong, wrong, wrong, and I would urge the Liberals to rethink their position.

Just today in the press we noted that the Minister of Health, a woman in the cabinet of the government, has come out in full support of the Conservative government's legislation preventing female federal public service employees from filing pay equity complaints, and supports the notion that a union would be fined $50,000 if it gave support to an employee for pay equity. That is shameful. That is unacceptable, and I would hope that if we cannot convince the Conservatives, at least the Liberals will stand up and help us separate this part of the legislation out of Bill C-10.

When it came to equalization, the leader of the Liberal Party somehow managed to give all the members from Newfoundland and Labrador dispensation from voting against equalization. Now we are simply asking, if the Liberals really believe in pay equity and understand it is a fundamental right, will they be given dispensation to vote against Bill C-10 and stand up for the women of this country and stand up for pay equity?

[Thomas Mulcair, NDP, Outremont, QC]

Madam Speaker, when someone says the contrary to the truth and does not know the facts, it is a misstatement. When someone knows the facts and says something that is contrary to the truth, of course it is a lie.

Day after day in the House, the President of the Treasury Board has been standing and saying things that are contrary to the truth. In light of the fact that he was an attorney in Manitoba and should know, what his party is doing here, removing women's rights to equal pay for work of equal value, is not what happened in Manitoba, and he keeps saying the contrary.

How would my colleague qualify the statements of the President of the Treasury Board?

[The Acting Speaker, Denise Savoie]

The hon. member for Winnipeg North, of course without unparliamentary language.

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

Madam Speaker, I know that to give the President of the Treasury Board the name of what he really is doing would be unparliamentary, so I will not do that at this point. I will say there is not a shred of truth in anything he is saying about a resemblance between this so-called pay equity—more likely inequity—legislation and what Manitoba did.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Madam Speaker, on behalf of my constituents of Don Valley East, I am pleased to rise today to speak to Bill C-10, the budget implementation bill, but before I speak to Bill C-10, I would like to respond to some of the comments made by the member for Winnipeg North.

I would like to remind the member not to be so sanctimonious. She talks about principles. What principles does the NDP have? It has zero. What did it give up in 2006? It gave up Kelowna, Kyoto, the agendas of citizens and communities, and early learning and child care.

The NDP leader said “Lend me your vote.” For what? He then got into bed with the Conservatives. The NDP members talk a good talk when it comes to the vulnerable, but when it comes to the real fight, the real nuts and bolts of supporting the vulnerable, they are nowhere to be seen.

So I really do not need any lessons on principles from the member or from that party.

Going back to Bill C-10, this has been a strange week in Ottawa, with an admission from both the Prime Minister and the finance minister that Canadians should somehow expect that rushing the stimulus package out the door will result in a budgetary boondoggle by the Conservative government.

This is a remarkably frank admission by the Conservatives, considering that the money has yet to be approved by Parliament. It is defeatist language coming from the Prime Minister, who presented a self-inflicted political crisis in December when his fledgling government was forced to withdraw its November 27th economic statement that was drafted by some zealots in his office.

Last November should have been the government's first opportunity to present a stimulus package, when the whole world was aware that we were heading into tough economic times. Instead the Conservatives, who lack all impulse control when it comes to partisan games, brought in an economic statement that had more to do with political tricks than economic management.

In the fall, during the last election, the Prime Minister falsified information. He claimed that there was no economic crisis, and that if there were a recession, Canadians would already be in one. The Prime Minister even joked about the opportunity to buy stocks. This is the Prime Minister who does not have any regard for the countless Canadians who have lost their jobs.

The solution they provided in their November economic statement, which was the most absurd solution—

[An hon. member]

And toxic too.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

And toxic too.

Madam Speaker, the solution they provided attacked the most vulnerable. It attacked pay equity, the labour unions, et cetera.

Therefore, the Liberal opposition forced the government back to the drawing board, over the holidays, to come up with a meaningful budget to help stimulate the economy and protect the vulnerable from adverse effects.

As the official critic for national revenue, I sit on the public accounts committee, and the responsibility of public accounts is oversight of government spending. We have seen a number of areas where the government has not been accountable or transparent, and it has shown total incompetence in fiscal management. This does not span only the financial area; it deals with federal-provincial transfer payments, the health and safety of Canadians, the environment, et cetera.

There are positive things in the budget that we had asked for, and there are areas of concern. For example, we are concerned about the management of the home renovation tax credit. This tax expenditure has the potential for disaster, and we will insist on proper accountability.

It is because of this kind of dismal performance, the government's dismal economic performance—getting rid of the $13-billion surplus, going into a deficit, not being able to manage the economy—that the Conservatives' allies at the National Citizens Coalition, once headed by the Prime Minister, disparaged the government for poor management. In fact, the head of NCC has called on grassroots supporters of the Conservative Party, many of whom are already tapped out, to withhold political donations until they see some form of improvement on the part of the government.

The chief economist for the Toronto-Dominion Bank and a former senior finance official, Don Drummond, specifically pointed out that the home renovation tax credit looks like one big black hole with few safeguards and little room for accountability. Therefore, I sincerely hope that the Minister of Finance will consult carefully with his officials at the Department of Finance to make sure we do not end up with a Swiss cheese stimulus package that is full of holes.

The Canadian people deserve better leadership, and as the leader of the official opposition has indicated to the government, the Liberal caucus has put the government on probation. This stimulus package will be reviewed at regular intervals to ensure it is effective and accountable and that the money does move out to projects that the budget claims to support.

There are many parts of this budget that the Liberal Party fought for and are urgently needed by Canadians—for example, the national child care tax benefit, doubling tax relief provided by the working income tax benefit to encourage low-income Canadians to find and retain jobs.

We also asked for and strongly support a provision that will reduce the minimum withdrawal rate of RRIFs by 25%. As I mentioned before, the leader of the Liberal Party has indicated that Liberal support for this budget is conditional and that we will be reviewing the government's use of taxpayers' dollars quite closely.

There are some measures we welcome. These are the $400 million for construction of social housing; $75 million for the construction of social housing for persons with disabilities; $400 million for first nation reserves; and $200 million over two years in social housing. However, we have to have transparency and accountability.

The Conservatives have a habit of announcing and not delivering, especially in the infrastructure area. They have announced it in three budgets but have never made the money available. It is important that this money be delivered.

In consulting with my constituents of Don Valley East, they made it clear that any stimulus package must contain measures to protect the most vulnerable in our society, to secure jobs that we already have and to prepare the economy for the future. Canadians demand fiscal responsibility, and that is why we are granting conditional support.

Just today, Statistics Canada released data, and now the Minister of Finance is asking Canadians to prepare for a substantive drop in GDP. Economists are predicting a 3% to 4% drop in GDP, but this should not have come as a surprise to the government or to the Prime Minister, who claims to be an economist.

The stimulus package should have been done in October 2008, right after the election, but the Prime Minister was busy telling Canadians to buy stocks. There can be only two reasons the Prime Minister did that, either he was totally misleading Canadians or he was totally incompetent and does not know the economic environment and does not have an economic vision for the country.

If the Prime Minister and the finance minister were serious about the economic situation in Canada, they would not have called an illegal election for October 2008 and broken their own election law. They should not have been so neo-conservative in their economic statement, which had nothing, no stimulus package, and they should not have prorogued Parliament.

If the finance minister wanted $3 billion without accountability, the Liberals could not give it to them. The government needs to grow up and take responsibility. Without a vision or accountability, it is rudderless. That is why I would like to ask my colleagues across the way what pay equity has to do with a stimulus package. What does attacking the most vulnerable have to do with a stimulus package? What does the Competition Act have to do with a stimulus package? What do navigable waters have to do with a stimulus package?

I would like to let the Conservatives know that we have put them on probation and that they cannot put a whole hodgepodge of items in the budget and expect it to go through.

[John Cannis, Liberal, Scarborough Centre, ON]

Madam Speaker, this is another opportunity for me to speak to Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures.

This is probably one of the most important bills that we will have before us in this Parliament, although I also believe it is vitally important that the Conservative government bring forward legislation as soon as possible to deal with the unfortunate crimes that are taking place in different parts of our country. I do not want to name provinces or cities, but crime is crime is crime.

This has come to my attention because during the election there was a shooting in a school in my riding. I was asked to speak on the radio which I did. The attorney general was also on the radio. He said everything and nothing. I said to him then and I will say it again now that he should not just do the talk, he should do the walk. He should bring in the legislation. We will be there to support him. We will support good legislation that will help fight crime.

Everyone remembers that the Liberals brought in the anti-gang legislation which helped address the problems that were occurring in Quebec with the biker gangs. It helped us address problems with gangs in the greater Toronto area. I am asking the Conservatives to put their money where their mouths are and bring forward that legislation.

On the budget implementation bill, Bill C-10, my colleague, the member for Don Valley East was so eloquent in her speech. She pointed out the main reasons the Liberals are supporting the bill. We had discussions with our constituents and they told us to support the bill for various reasons.

One reason is that the economic downturn that is taking place in our country needs to be addressed as soon as possible.

As well, as I responded to the NDP members when they questioned me as to why I am supporting the government, the last thing Canada needs right now is to dish out over half a billion dollars for an unnecessary election. Our support for the bill has conditions. There is a caveat. We want to make sure that the government does what it is supposed to do.

For the last little while we have been listening to Canadians and to other parliamentarians who bring their views from their constituencies. There are some things in the budget that are merely cosmetic as far as I am concerned. For example, on the home renovations allowance of up to $10,000, Canadians today are worried about keeping their jobs, not about fixing their basements or adding on an extension. Should Canadians go out and borrow money or use some of their savings to add on an extension, to do a kitchen renovation, to replace windows or put on a new roof so that they can get a maximum $1,350 tax credit?

We had a similar program in our platform in the most recent election. Our program was that if Canadians wished to renovate, they would be able borrow up to $10,000 interest free for those renovations. I do not think Canadians paid that much attention to it. They were buried by all that propaganda put out by the Conservatives. The Conservatives spent tens of millions of dollars in advertising to defame our leader at that time, to talk about the so-called carbon tax and the green economy that we wished to bring forward. Who is talking about the green economy today? President Obama. Who agrees with him? The current Prime Minister. I listened to the Prime Minister on CNN on Sunday. If my TV screen had been blank, I never would have imagined it was the Prime Minister, the leader of the Conservative government, who was speaking. Nevertheless, that is what we are dealing with today.

An unemployed auto worker, a gentleman by the name of John MacDonald, in talking about the retrofit program stated, “ You're not going to retrofit your house if you don't have a job”. He is right.

The most important thing today is how to get Canada moving, how to make the right investments. Most important, the budget talks about putting billions of dollars here and billions of dollars there, but that money has to get to the specific areas. We talk about shovel-ready programs. That is the new term nowadays, shovel ready. That means the shovel is ready to go in the ground. Great. If we assume that is the case, then let us explain to Canadians what the delay is in getting the money for a new recreation centre, or for upgrading a road, or for repairing a bridge. What is the delay? Proper due diligence should be done, and I think the system is there to make sure that is the case.

The Conservative government knows very clearly that we on the Liberal side are prepared to support this budget bill. We are standing here expressing our views constructively to ensure that Canadians understand why we are behind this budget bill. Canadians are applauding what the leader of the Liberal Party and the entire Liberal team has said, which is that we need to look after the nation today given what is going on. We are putting our differences aside and we are working for the good of the nation. We are stepping up to the plate.

As I said earlier on the crime and justice issues, it is very important to all of us, or at least to us on the Liberal side, that we ensure that the legislation is brought forward as soon as possible. The Minister of Justice stood the other day and a lot of hot steam came out of his mouth, which is fine, but bring forward legislation. Nothing is stopping him. I can tell him right now that the Liberal team is here to stand and support good legislation.

I also have a concern. When we talk about shovel-ready programs, moneys have been allocated in previous budgets, but to this very day, these moneys have not been delivered. I want to put some figures into the record. The Conservative government, for example, has left unspent $88 million that was meant for two specific areas. The government had allocated $140 million for disaster relief, but $76.4 million is unspent. The big sheriffs from the west want to fight crime. The government allocated $43 million in its last budget for crime prevention. The government has spent $19.3 million and $24 million is still sitting there.