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 Deputy Speaker, Conservative, Andrew Scheer]

Order, please. The hon. member for Vancouver Kingsway.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I agree completely that there are more efficient mechanisms to deliver infrastructure to the municipalities and I think sharing the gas tax revenue is a wonderful idea in that regard. It is a program that already exists and it can flow money more quickly. It actually allows the municipalities to get those moneys flowing and working faster.

I have in fact met with some of the mayors in the Lower Mainland. I met with the mayor or Burnaby, as a matter of fact, two weeks ago. I have meetings coming up with the mayor of Vancouver and the mayor of Richmond, who represent different parties, by the way.

Their message is the same. They are saying that in order to access these federal infrastructure funds, they have to match them. Municipalities generally do not have surpluses sitting there that they can put forward to attract this money. Therefore, one of their problems is that if they want this money, they will have to come up with it somehow, and they will be forced to either borrow the money or raise their mill rates, in which case they will have to raise taxes on their citizens.

I think it is rather deceptive of this government to crow about the tax cuts it is making, only to turn around and compel mayors of this country to raise taxes on their own citizens in order to access the money that this government brags it is making available.

[Ève-Mary Thaï Thi Lac, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I am pleased to speak about the implementation of the budget this afternoon.

First of all, this budget is unacceptable for Quebeckers. They were expecting great things compared to last January's budget. The Bloc Québécois acted very responsibly and submitted a highly detailed brief containing very realistic measures. These measures would have directly helped the people of Quebec. We thought that we would see these recommendations in the budget. In addition, all of the parties in Quebec's National Assembly unanimously adopted a motion. That motion listed what they wanted to see in this budget for Quebec.

Many people lost out in this budget. First, modifying equalization calculations would deprive Quebec of more than a billion dollars next year and more than two billion dollars the following year.

We had great expectations for economic development. The Conservatives cut the program for NPOs in the regions. This program had proven its worth, and Quebec's economic development organizations helped to ensure that businesses grew and jobs were created in our regions. The Conservatives cut this program. We were expecting, since our country was gripped by an economic crisis, to see new funds and even see this program reinstated since it was such a great help to Quebec's regions.

Over the past months, the elderly have seen their savings and investments melt away. A number of elderly people live below the poverty line and have no other choice but to rely on programs such as the guaranteed income supplement. This budget contains absolutely no increases for seniors living below the poverty line. As well, they are still waiting for retroactive adjustments owed to them. And there is nothing in the budget announcing new money for the elderly who desperately need it.

A recession also means job losses. Easing employment insurance eligibility criteria would have been a boon to the growing number of people who will be losing their jobs during the current economic crisis. The government should have enabled as many people as possible to draw on these benefits. The system should also have been improved by allowing those who lose their jobs to collect benefits immediately. Eliminating the waiting period would have been the best measure for these people.

Many of the people losing their jobs are over 55. They have dedicated their lives to the companies that are closing their doors. Many of these people over 55 do not have high school diplomas, and it is becoming more and more difficult for them to retrain. We were looking for improved training assistance and, for those who cannot retrain, an older worker assistance program. During the 2006 election campaign, the Conservatives promised to bring back an older worker assistance program. The Conservatives even mentioned an older worker assistance program in their throne speech. Yet a program to help people who cannot be retrained does not appear in this budget.

Once again—I know I am repeating myself—when plants close, many people 55 and over are forced to empty their pockets, liquidate their RRSPs and sell their houses as a last resort. These older people have to use up the money they saved over the years to use upon retirement. That is not the kind of help we should be giving these people who have contributed so much to our society.

Struggling companies will get no help in this budget. There are measures to help companies, but no refundable credits. The government's measures will not help companies recover if they do not pay taxes. Tax credits are fine, but they only help companies that pay taxes, and to pay taxes, companies have to make a profit. Companies that are on the verge of closing their doors and declaring bankruptcy are the ones running a deficit; they do not pay taxes. I would really have liked to see refundable tax credits for these companies among the proposed measures.

It is all very well to help the financial institutions, but the fundamental need is to help businesses to be viable so that they can keep their workers. Then we would not be seeing the banks repossessing houses and we would not be needing to help the banks deal with a crisis. Levelling up instead of down would allow companies to stay afloat and thus allow people to get and keep jobs in them. That way they could ling their homes and their spending power and get the economy rolling.

With the measures announced in this budget, this segment of the working class will get no help if they lose their jobs.

I represent communities and a riding where there is a great deal of agriculture. At this time people are very disappointed with the budget, because they were expecting help for struggling farmers. The introduction of a $500 million program over five years does not meet the need, because it excludes risk management. The agriflexibility program does not respond to the numerous demands from Quebec stakeholders and even the Quebec agriculture minister. We know that, had those moneys been allocated, and if they had included risk management, they would have enabled the Government of Quebec to improve its agricultural revenue stabilization program. The Bloc Québécois called for risk management to be included in a program that would really help the producers, who badly need it. It would have enabled many Quebec farms to be productive and we are know that the very foundation of an economy is its raw material.

I am very disappointed to see that agriculture is dying, not only in Quebec, but across Canada as well. In my riding, more than 25% of jobs are directly or indirectly linked to agrifood or agriculture. We are experiencing huge problems in agriculture at this time, and there are no measures in this budget. The Conservative government has let down the farmers in my riding and in Quebec as a whole.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I would like the member to comment on how the infrastructure funds in the budget would affect her riding. While she is thinking about her answer, I want to make a point on infrastructure that I have made in the past, but I want to make sure it is on the record and that key members hear it. I have been speaking about this for about a year, although I have not mentioned it recently.

I became worried very recently when I heard officials say that there is no policing or delineation of how much infrastructure funding goes to municipalities and first nations. The people of these municipalities have been very well treated in the past in programs by governments. There is a significant amount of money in the budget for infrastructure and they are very happy about that, but they are worried that it is not going to them. There seems to be no plan to make sure that municipalities and first nations, who have to deliver so much infrastructure to their communities and have the smallest tax base to do it, may not get their fair share.

I know that the people who can do something about that are listening. I want to make sure it is on the record so that the very generous funds available do get to the municipalities and the first nations that really need it so they can deliver infrastructure at the local level.

[Ève-Mary Thaï Thi Lac, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I thank my hon. colleague, the member for Yukon, for his question. The infrastructure program, as it was presented, will indeed help Quebec, but it will not solve everything.

Furthermore, when I talk about assistance, it is conditional assistance, as we know that the municipalities and the Quebec nation must also put in money, since it is a tripartite program. Many municipalities need to rebuild their infrastructures at this time, but do not have the means to put up a third of the funds needed to access these programs.

As we all know, the surplus is in Ottawa. In this budget, we would have liked Ottawa to invest more than the municipal or Quebec governments in the infrastructure program.

I must add another point. The Bloc Québécois would have liked to see this money transferred to Quebec, especially since, we must not forget, the municipalities fall under Quebec jurisdiction.

Furthermore, Quebec would have been in a better position to run this kind of program. But again, although the infrastructure programs and the money announced are positive measures, only the municipalities that have the resources can take advantage of those measures, which is pathetic.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I would like to ask the member two questions.

The first one is on environmental assessments. We now know the government intends to add to the budget that was tabled originally, provisions that will decrease the ability to conduct environmental assessments on certain federal projects. Specifically, amendments will be made to the Navigable Waters Protection Act to so-called streamline the approval process and give more authority to the minister to allow construction without further environmental assessments. I would like to get the hon. member's comments on that.

The second one is on pay equity. The government once again is attempting to remove the ability of the women of this country employed by the public service to pursue pay equity claims before tribunals and courts. I would like to have her comments on that as well.

[Ève-Mary Thaï Thi Lac, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, regarding the environment, we all know that the federal government, the Conservative government, is setting us back by about 100 years. It is a 100 year set back in terms of the environment. We have become the laughing stock of the entire planet, because of the Conservative government's failure to act on the environment.

As for my colleague's second question, pay equity is a very important issue and it is appalling to see the Conservative government trampling on women's rights in this area.

[The Deputy Speaker, Conservative, Andrew Scheer]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Saint-Bruno—Saint-Hubert, Arts and Culture; the hon. member for Windsor West, the Steel Industry; the hon. member for Dartmouth—Cole Harbour, Employment Insurance.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, this week the Office of the Superintendent of Bankruptcy Canada reported that Alberta personal bankruptcies soared by 27% throughout 2008. In December 2008 alone, personal bankruptcies in Alberta rose 106%. This comes on the tail last week of the reported worst one month job losses on record.

No group is suffering more in the downturn of the economy, certainly in the jurisdiction from which I come, than temporary foreign workers, a program that the government introduced and emphasized when it included changes to the immigration bill, nefariously, in the last budget that it tabled. Again it is putting in inappropriate measures.

I want to share what my constituency office reported to me just last night. Just last night, three cases came in on temporary foreign workers who had been encouraged to come to our country under this program and are now out of work and have been abandoned.

A family of five from Germany came to Canada under the temporary foreign workers program. The father was laid off and is not able to find employment that meets the narrow criteria of the permits under that program. He was offered alternative employment but is unable to accept it because it is not “carpentry” work. This family is not able to afford the plane fare back to Germany. These people are currently at the mercy of their landlord who is graciously allowing them to stay. They are using the food bank. The other two examples are exactly the same. A worker from India and a worker from another country came to Alberta, were promised jobs and were laid off. There has been no assistance offered to them and there is no opportunity for alternative work.

This budget invests paltry little in creating new well-paying jobs that these persons could fill. Others across Canada are being laid off daily, likely as we speak.

There is no money whatsoever going into the new emerging green economy that every other nation in the western world and other nations are adopting. We are losing ground and we are losing our competitiveness. While we argue about whether the government is adequately caring for people who have been laid off, it is stridently refusing to provide any money to move these workers into a new economy where they could flourish and prosper.

Energy jobs in Alberta are not declining due to environmental red tape as the government would suggest. Quite the contrary, they are disappearing because of the Conservatives' failed policies.

Hundreds of thousands of jobs are being created in other nations due to the new green economy that they have embraced, that the International Energy Agency has embraced, that the United Nations has embraced, that has been embraced worldwide, that President Obama who will be visiting us soon has embraced. We are missing a golden opportunity to exchange policies. We could have open free trade and exchange green products, technologies, awareness and skills.

The budget document purports to be transforming Canada into a new green economy and yet no new money is being provided to foster these technologies. There is zero money targeted to develop, and most important, to actually deploy the renewable energy which creates jobs on the ground. This is despite recent analyses that Canadians could actually meet the majority of their electrical and energy needs through new green energy. There are fabulous reports coming forward, one in Ontario and one in Alberta. As the hon. Minister of the Environment reported, he would like to move toward meeting the majority of Canada's electrical needs from green energy. The reports are showing that we can do it through real green energy, such as solar, wind, geothermal and virtual power, instead of the Conservatives' so-called green energy, which is just more dirty coal-fired power and tar sands.

The abandonment of this sector which is just getting started in Canada and getting a competitive edge, means not only lost economic opportunities to businesses but a lost competitive edge. Many of these businesses are located in my own constituency. Through their own means companies have started up industries to install alternative lighting to save energy. Industries are now operating across North America helping public facilities in the United States and Canada to retrofit public buildings and train their maintenance workers to run these buildings. All are lost opportunities because the government has blinders to the new economy.

What the government is also blind to, and it was evident in the House today, is the lack of understanding of where the world is moving, including our neighbour to the south, the United States of America.

How many references are in the budget on climate change, on giving money to address it? A singular reference. Not one new regulatory trigger has been tabled by Parliament, the single most important measure to actually move us toward the green economy to ensure we do not incur the massive liabilities incurred through climate change. Not one new regulatory trigger and no fiscal incentive are in the bill. The government touts nuclear power as the singular solution to Canada's energy security and climate change goal, and that is absolutely appalling.

Where is the money to develop an energy security policy for Canada? The United States of America has had such a policy strategy and actual legislation in place for some years. Is Canada only going to become the means to meet the United States' energy security, or is the government finally going to move forward and allocate monies so we can move toward developing a strategy for the benefit of Canadians, not just simply to mine our resources and send them south?

On sustainability, the government also says it does not pick favourites, it has broad-brush tools. Well it has picked favourites. In its so-called clean energy fund, it picks out one technology for the coal-fired power industry and for the tar sands, and that is to pour yet more millions of dollars down the well into testing a technology that we have no idea if it works.

The so-called long lists of non-emitting power sources, where are they? They are not being encouraged in any way by the budget.

The government talks about the money it is putting into research and technology. Let me tell members what is being done with research and technology. The Conservatives talk about their innovation fund. I have had calls from across Canada, including leading edge academics who say their money is disappearing. It is being so-called streamlined. What that means is a path from money being put into creating jobs for leading edge scientists and their burgeoning associates and it is going into buying equipment offshore. It is absolutely shameful. Again, we had the opportunity to be leading edge, developing the technologies, marketing them, but this is absolutely lost.

There is nothing in the budget on water. If we talk to any Canadian or anyone around the world and ask them what their most critical need and concern is, they will tell us it is their disappearing water. It is the fact that water is becoming contaminated.

In my jurisdiction, where we think we have plentiful water, already we are finding water over-allocated in southern Alberta. We are finding a crisis in northern Alberta where the water is declining because of climate change. The glaciers are depleting. There are a good number of people in Canada who depend on those glaciers for their drinking water. Farmers depend on that water to feed their cattle. The industries of Alberta depend on that water, yet there is not one cent, despite the fact there is a clear regulatory mandate on the government to manage water for the benefit of Canadians.

My colleague who spoke earlier asked a question of our colleague from the Bloc about the issue of the intrusion into the budget, nefariously, of amendments to laws. This is absolutely reprehensible. The same kind of measure that was done with the immigration act in the last bill has been repeated with critical environmental laws.

The Navigable Waters Protection Act is one of the most important acclaimed laws in the world. That law was the centrepiece of one of the most important Supreme Court of Canada precedents, which clearly declared that the federal government had clear jurisdiction over the protection of the environment. Now with one fell blow, with zero opportunity for consultation, the government has put that into its budget bill, in a Bush type gesture, so there can be no consultation. Conservatives are taking away the right of affected Canadians, including our first nations, to have the opportunity to discuss the implications of these changes.

These changes are exactly what the government is doing by saying that environmental law is simply red tape. Nefariously, through the budget bill, the government is taking away the opportunity for citizens to come forward and express concern when there are intrusions in their lakes or their rivers—

[The Deputy Speaker, Conservative, Andrew Scheer]

The hon. Minister of State for Democratic Reform on a point of order.

The House resumed consideration of the motion that Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, be read the second time and referred to a committee, and of the motion that this question be now put.

[Gary Goodyear, Conservative, Minister of State (Science and Technology)]

Mr. Speaker, it goes without saying that there has been a rumour going around that the NDP has failed to read the budget. We have just received absolute fact about that. That NDP member has not read the budget. If the member has, she is completely distorting what is in it.

I could cite all day long what this government has done with science and technology.

At the University of Guelph, we have funded a research project that pulls methane gas out of cow manure and what is left is turned into subflooring. That sounds pretty green to me.

At the same university, we have also funded a research project which uses plant fibre as a replacement for oil in asphalt. It sounds pretty green to me.

We are also funding ways to decrease the use of water in the oil sands.

If the member would just read the budget, she would know these are good things for Canadians, but of course the member has already made up her mind. There is no point in having a debate with her because she plans to vote against those green initiatives, and that is shameful.

Will the member now admit that she did not read the budget, or if she did read it, she misunderstood it?

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I do not understand the budget whatsoever. It is my understanding that the monies already allotted for alternative energy will continue, but no new money has been allotted.

It is very clear in the budget that the government is using a streamlining mechanism to take money from programs that do the innovative research and that employ researchers to do the work, including in the Arctic, and simply transferring that over to the innovation fund to buy equipment.

I do not consider that new funding toward a new green economy.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, two government members have talked about science and technology, but I want to put on the record a point that two professors made to me about cuts to the granting councils, the Canadian Institutes of Health Research, the Natural Sciences and Engineering Research Council of Canada. In 2009-10 it will be $17.7 million. In 2010-11 it will be $43 million. In 2011-12 it will be $87.2 million.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I too have been contacted by academics and researchers in my riding.

In addition to the information provided by the hon. member for Yukon, who it is always a delight to hear from, the government is also cutting research monies for the Arctic, at a time when is saying it is going to invest money to ensure the sustainability and environmental protection of the Arctic.

We are taking away money that goes to researchers who look at the impact of industrial activity on the land and on the water, not just in Canada but around the world. These researchers look at the impact of the downfall that falls into the Arctic, contaminating the water and coming out as the north melts. That money is being diverted into building a facility for which they will have absolutely no use.