Budget Implementation Act, 2009

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

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

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

Votes

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

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 5:55 p.m.
See context

NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

Madam Speaker, it is extremely important we recognize the work that not only our RCMP officers are doing, but also the work of our soldiers are doing in defending our country.

It is shameful what the government has done with regard to reneging on collective agreements. It is awful. That is not the way to support our troops and that is not the way to support our RCMP brothers and sisters.

The government's pay equity attack is atrocious.

None of this has to do with economic stimulus. It is an attack on workers. It is an attack on families. It is an attack on children.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 5:55 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

Madam Speaker, we have had the opportunity to see just how this budget contains certain provisions aimed at doing secretly what the Conservatives would never have the nerve to do publicly: deprive women of the right to institute legal proceedings, that is to say, to go before the courts in order to obtain equal pay for work of equal value.

I would like my hon. colleague to describe the reaction of women in her riding to the fact that the Conservatives, backed up in this by their Liberal accomplices, are preparing to take this fundamental right away from the women of Canada.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

Madam Speaker, I thank my colleague for his question. The women of my riding, and women all over Canada, are not pleased with what has gone on in this House this week and last with respect to pay equity.

It will soon be International Women's Day and I believe it will be a sombre celebration this year. I am very disappointed in our Liberal colleagues. Women who have fought for pay equity did not stand up, as the members for Newfoundland and Labrador did, to vote against this budget. In the meantime, the Liberals changed their minds and rose in support of it. That is really disgusting!

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6 p.m.
See context

NDP

Bruce Hyer NDP Thunder Bay—Superior North, ON

Madam Speaker, I looked at the Conservative-Liberal alliance budget implementation bill and I was disappointed. I was disappointed to see little for Canadians and especially little for the citizens of communities in northwestern Ontario. I was equally saddened to see that the Leader of the Opposition had chosen to lead the Liberal Party, as his predecessor did, condemning the budget with one breath while rubber stamping it with the next.

Recently I held broad public consultations on the hoped-for budget in my riding and what was asked for is not in the budget. The budget implementation bill does not address the major issues my constituents brought up during those public consultations.

The things that were especially at the forefront of those consultations again and again, in 13 communities, by hundreds of people and dozens of organizations, were a fairer employment insurance system, support for our struggling forest industry and workers and real money for local infrastructure needs.

Employment insurance remains in desperate need of reform. Most workers who pay into it are not eligible for benefits. In Ontario almost 70% of the unemployed do not qualify even though they have paid into it. Paul Martin's Liberals gutted EI and the Conservatives have not fixed it. Nothing was done in the budget to make EI eligibility fairer. The program still maintains regional disparities, keeps the waiting period and there is still a clawback of severance pay.

Over half of the casework at my constituency office, the work of two people, is about EI problems and the failure to access EI fairly and efficiently, and it is growing by the week. Constituents often are unable to get through to the toll-free call centre and do not get the promised callback within 48 hours, or 84 hours, or sometimes weeks. Claims are delayed, deadlines are missed, appeals stretch out for months.

The system is not serving hardworking Canadians who have paid into it, sometimes for decades. This is simply not acceptable. We need a responsive EI system that works for workers laid off through fault of their own.

Thunder Bay—Superior North relies on the forestry sector. The industry has been just about done in by years of neglect by Liberal governments and now the Conservative government. The $170 million over two years announced for marketing is woefully and totally inadequate tor the needs of this industry, which has the potential to sustain northwestern Ontario and many northern Canada communities for many years and decades.

There was no mention of loan guarantees to help companies like Thunder Bay Fine Papers, Longlac Wood Industries and others. In northwestern Ontario and across Canada mills are shutting down and many are in danger of being scrapped. When will the Minister of Industry support the mills and workers in northwestern Ontario?

The AbitibiBowater plant recently announced shutdowns, affecting 1,100 workers in Thunder Bay. Just days ago the Thunder Bay Fine Papers mill narrowly avoided being sold for scrap metal. Three hundred and twenty direct workers and thousands of indirect jobs in Thunder Bay still face an uncertain future due to the credit crisis because the Minister of Industry will not act.

The Minister of Industry has done absolutely nothing. He has one more chance to help this mill survive and the citizens of Thunder Bay are praying that he will take that chance. I have asked him repeatedly and I implore him again. When value-added mills like these are closed, the capacity and workers may be gone for good.

On municipal infrastructure, the lack of vision and strategy is problematic as well. Alleged municipal infrastructure money is a rising tide of red ink and red tape.

There are glaring omissions in the government's implementation of the budget in that there is no preference for Canadian products or Canadian materials, even when billions are planned in stimulus spending, allegedly. What a waste of Canadian dollars to stimulate the economies of the U.S. and China.

Our domestic procurement policies were in the news recently with the buy America amendment to the stimulus bill that was before the U.S. senate. The U.S.A. already had strong domestic procurement rules in place since 1933 and even stronger in the last seven years. Most other industrialized countries have similar rules.

Canada sits alone among the G7 countries in failing to defend domestic jobs and industries with our own made in Canada government buying policy. Where direct federal procurements are somewhat constrained because of NAFTA and WTO agreements, federal transfers to provinces, or states or municipalities for infrastructure are not. All of our other trading partners have already figured this out.

Conservative and Liberal governments in Canada have ignored our rights to buy Canadian. This is a consistent failure of our governments to show courage and resolve in trade negotiations and disputes and to stand up for Canada.

Canada must pass an act mandating made in Canada requirements. Let us really stimulate the Canadian economy and not just the economies of the U.S., Mexico and China. Let us get the most value from hard-earned Canadian taxpayer dollars.

Abandoning key rights in the free market makes no more sense for our industrial strategy than it does for the banking industry. These measures will just bring us in line with other countries. For example, the buy American act has mandated 60% U.S. made products in federally supported transportation projects. The new buy American amendment would take that even further.

In Canada in the last three years we have had B.C. ferries purchased from Germany, York region buses purchased from Belgium, Vancouver sky train, the Canada line, sourced from Korea, just to name a few. Instead let us stimulate Canadian shipyards like the ones in Thunder Bay, vehicle assembly plants and rail production like Bombardier. Millions in tax revenue and spinoff jobs would be created in Canada for a change.

When will the Minister of Industry of the republican party of Canada buy into Canadian industries and stick up for our Canadian workers?

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:05 p.m.
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Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, I appreciate the member's enthusiasm. Canada is a trading nation and there are clear benefits to trade agreements. We have a number and we have just dealt with others.

All of a sudden, if the member follows through with the enthusiasm, the requirement would then be that people would start to do business in a manner which would not be prudent to the investors or the shareholders, or in the case of government procurement to the taxpayers. When one wants a Pontiac but has to get a Cadillac because it is all that is sold, it is not a good idea. Price issues become an issue and the economies of scale in the relationship.

Although I appreciate the enthusiasm, the wish to have a made in Canada requirement would tend to undermine the fundamental principles of good business sense and fair trade.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:10 p.m.
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NDP

Bruce Hyer NDP Thunder Bay—Superior North, ON

Madam Speaker, I have three small businesses. I do understand business principles.

I recently read with interest Pierre Berton's book, The National Dream. At that time, as now, the Liberal Party of Canada wanted to have the Americans build the international dream of the CPR to the west coast.

Interestingly, at that time, the leader of the Conservative Party, Sir John A. Macdonald stood up for Canadian industry and for Canadian provinces. What a shame that we have lost the Conservative Party of Canada. I hope we can get it back some day.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:10 p.m.
See context

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, I share the concern of the member for Thunder Bay—Superior North about the forest industry. Abitibi just recently closed a mill in our province and, in fact, closed it early. It could not wait to close it because it saw the opportunity for support from the government, but it did not come.

A few moments ago, the member for Outremont talked about some poison pills in this budget implementation bill. There are a lot of them there but there is no bigger poison pill to me in this budget than the actions that were taken by changing the formula for the equalization payments, such that the promises under the Atlantic accord to compensate Newfoundland and Labrador were gutted to the tune of about $1.5 billion for that province. That is $3,000 per capita, which for Ontario would be $22 billion and $14 billion for Quebec. Here we are talking about a province with the highest rate of per capita debt of any province in the country.

Would the member care to comment on the kinds of poison pills that the government is prepared to insert into this budget's measures?

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:10 p.m.
See context

NDP

Bruce Hyer NDP Thunder Bay—Superior North, ON

Madam Speaker, I have been to Newfoundland many times on consulting business and recreation. You are the friendliest people in Canada and among the friendliest people in the world. You are also smart enough to have figured out—

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:10 p.m.
See context

NDP

The Acting Speaker NDP Denise Savoie

I would remind the member to make his comments directly to the Speaker. I am not from Newfoundland.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:10 p.m.
See context

NDP

Bruce Hyer NDP Thunder Bay—Superior North, ON

Madam Speaker, thank you for reminding me. Our friends from Newfoundland have been smart enough to figure out, as I commented a minute ago, that the great tradition of conservatism from well over a century ago has failed us. The Premier of Newfoundland has accurately identified that our Prime Minister is not a man to be trusted.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:10 p.m.
See context

NDP

Megan Leslie NDP Halifax, NS

Madam Speaker, we are living in historic times and in these times the work of this House has never been more important. We parliamentarians are being called upon to meet this crisis with new ideas and bold action. We should be taking inspiration from moments of unprecedented, creative and unifying action in our history. We should be meeting the challenge to act with vision and purpose, to unite our country in this period of crisis and build the Canada that we want.

A budget is not just a set of numbers. A budget is a vision for the future. This budget, more than any other, has to meet the test of history.

We should look to history when we think about this budget. In Nova Scotia, a historical figure we celebrate is Joseph Howe. We celebrate him because he fought against patronage and corruption. He fought for democracy and he did it with style and grace. It was the approach as well as the outcomes that mattered for Joseph Howe.

One of the most famous stories about Joe Howe involves his writings against the Halifax elite in The Novascotian. Howe's opponents sought to silence him once and for all by challenging him to a duel. Joe Howe accepted the duel with the full knowledge that he might lose his life, but on that day in Halifax, his opponent shot and missed. In response, Howe raised his pistol and he fired into the air. He was able to rise above the violent and vindictive mentality of his opponents, presenting an honourable alternative through his actions. I am afraid that the government has little in common with Joseph Howe.

When it became clear that the crisis in the financial sector was spilling over into the real economy, the government used the circumstances to ram through its own regressive agenda, attacking the right of women for equal pay for work of equal value, selling off public assets at a bargain basement price, attacking workers through removing their right to strike, and silencing political opponents through the gutting of public financing that keeps our democracy fair.

We all know what happened next. The nature of the economic update forced opposition parties to set aside differences and do the work that government refused to do, namely, provide a stimulus package to protect jobs, help those who have lost them and create jobs for the future.

After a convenient prorogation, the government returned with a tremendous about-face, building up a budget that secures its own job but that does little to help save the jobs of average Canadians.

Joseph Howe could prove to be a positive role model for the current government, but where else can we look for examples of a vision for a greater Canada? Baldwin and LaFontaine had a vision of French and English working together. Under Macdonald, we built a rail system to join this great land. We united to bring about the strong social safety net that defined us in the 20th century, including medicare and employment insurance.

However, what have we seen in this budget? It is the opposite of a greater vision for Canada. We see the government once again using politics of division for its own gain. Just as when it was faced with defeat by a coalition of opposition members and pitted west against east and Canada against Quebec, it has now turned its sword to the Atlantic, dramatically adjusting the equalization formula. This adversely affects provinces such as Newfoundland and Labrador, which my colleague, the member for St. John's East, addressed earlier in this House.

Questionable activity by that party in the previous election also illustrates some of the divisive strategies that now appear in the budget. Sadly, the member for Cumberland—Colchester—Musquodoboit Valley was forced to rise in this House to defend his reputation because of this type of vindictive, obsessively partisan behaviour. The member, I should mention, exemplified the dignity of Joseph Howe in standing up to one of the government's previous failed budgets. For taking a stand for his province, he now sits alone, but he commands the respect of all Nova Scotians.

This divisive approach continues with this bill. Despite its cobbling together of some of the opposition's suggestions, it is fundamentally flawed. It is at odds with the approach that needs to be taken for Canada to be the great country that it is.

Our history has taught us time and time again that greatness in this country cannot be based on the type of strategies practised by the current Conservative government. For Canada to work, we must not pit one group against each other or single out particular groups or particular people for attack and derision just because we can.

In times like this, with a quarter of a million jobs lost in 90 days, the House should be rising to the call of history. Workers in all regions of our country are losing out and they need support to transition to the new economy, the one that is just waiting for a government with some vision, a green, new deal where we achieve prosperity and security for our planet as well as our people and our economy.

With dwindling fossil fuel supplies, sure to lead to higher energy costs for all Canadians in the future, we could have grasped this opportunity to build a less fossil fuel dependent economy, an economy that is more innovative and productive, creating new jobs throughout the country by becoming more efficient and harnessing the wind, water and solar resources that we have in abundance.

Instead, we see the government kneecapping the wind energy industry by cancelling an incentive program. We see that there is absolutely no understanding of the huge potential to save money and energy through energy efficiency programs. We see no funding for building the type of sustainable transportation infrastructure that is necessary to build a creative and knowledge-based advantage for Canada.

New energy efficient buildings are most needed in the affordable housing sector. We know this is the best way to move people off the streets and into better living conditions. It can create construction jobs, help our forestry sector and trigger innovation in green design technologies and techniques but we have a government that does not want to do this because of its ideological blinders.

There was an opportunity in the budget to provide immediate support by expanding employment insurance in all regions of the country. This has been shown to be the most effective form of stimulus because it gets money out quickly to the people who have been hurt by the recession and to the people who will spend it.

It is unfortunate that I have to remind the House, but employment insurance is a fund that is paid into by workers for exactly this reason, so that when times are tough they can be protected. For a government that talks so much about putting money back into the pockets of Canadians, why is it so reluctant to let workers access a fund that they built?

The government has not solved the regional inequalities that exist in this program. This could have united our country but instead we are left with divisions. When we have a minister who thinks that fixing the program makes it too lucrative, it does not give one much hope for the kind of action that is needed here.

On housing, there is plenty of language in the budget about social housing but when we look closely, there is no new money for people already on the street and there is a deliberate move to prevent anyone from confusing this with a national housing strategy. A national strategy is what has been called for by virtually every major housing and poverty advocate in the country. In the face of this housing crisis, the budget proposes tax credits for people who already own their homes to build backyard decks.

I want to return to my point about the politics of division. I regret to say that women remain a prime target in the budget, not a funding target, but a political one. The removal of a woman's right to fight for equal pay for work of equal value was one of the most audacious parts of the November economic statement. It survived the Conservatives manufactured political crisis and will pass through the House with the support of the Liberal Party. Not only that, the stimulus investments that are being made are predominantly in male dominated sectors. A woman who has a job and is not getting equal pay for equal work, well that is too bad, but if one is a woman looking for a job, the Conservative government will not help her.

The budget represents an attack and a neglect of women in Canada. This is not how we build a country. This is not how we unite people.

I have spoken about history and now I would like to speak about the future. Since the decisions we make at this pivotal time will greatly impact the future, it is worth thinking about. In a couple of years, when Canada goes to climate change conventions and other countries have prepared their economies for the transition by investing in renewables and energy efficiency, when home heating and gas prices are again heading skyward and becoming unaffordable, how will we justify the lack of action? Will we say that we are still dependent on fossil fuels but that we have created a lot of backyard decks?

In a couple of years, when other countries have used their strategic investments to reduce their rates of poverty and include a greater number of citizens in society, will we be saying that we did not really get that affordable housing stuff off the ground but we did build a lot of backyard decks? There is nothing wrong with building backyard decks but the budget will fail the test of history because it has failed to produce any vision for the type of country we want for the future. Instead, it deceives and divides.

Canadians do not deserve this. They deserve a vision for a country that will move them forward. In Canada, we move forward when we protect the vulnerable and respect minorities, whether based on ethnicity, gender, or economic status. We move forward when we present an economic alternative to the tired economics of yesterday. The budget and the conduct of the Conservative government takes us in a very different direction, in a direction that our history has shown is quite dangerous. This is why I voted against the budget and the government.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:20 p.m.
See context

NDP

Libby Davies NDP Vancouver East, BC

Madam Speaker, the member for Halifax made a very fine speech. She laid out very eloquently what is not in the budget, what is missing and why it is so disastrous.

The member for Halifax has the honour of having more post-secondary educational facilities in her riding than any other place in Canada. One of the nasty little poison pills that is in the budget is it brings in some new measures and rules that will be very punitive to students who access the Canada student loans program. I am sure as a new MP she is just beginning to learn what it is like when her office is flooded with students who are battling this archaic system of Canada student loans, the penalties they face and the problems they have with a system that is very inaccessible and creates huge amounts of student debt.

It is incredibly outrageous that in the budget which is supposedly there to help people, we see punitive measures that will impact students. Rather than helping students get ahead, making the system work better and making sure that loans are accessible and affordable, we are seeing more penalties being brought in.

I wonder if the member would comment on that, because I am sure it will have a big impact in her riding of Halifax.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:25 p.m.
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NDP

Megan Leslie NDP Halifax, NS

Madam Speaker, Halifax does have the highest density of students per capita of any city in Canada. With all these post-secondary institutions, I have been visited by a lot of students in the riding.

The budget is a poison pill, absolutely. I want to know, what does disclosure or non-disclosure of certain documents have to do with a budget? What does a minister's power to extract information have to do with the current financial crisis?

This is about ideology. This is not about the budget or the economy. I would point out that we could pick our poison pill; if we are talking about equalization for Newfoundland, if we are talking about getting rid of pay equity, there are lots of them and they have absolutely nothing to do with the current financial situation.

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:25 p.m.
See context

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Madam Speaker, I congratulate the member for Halifax on such an insightful speech. It is easy to see she spent a lot of time on this budget document.

Most of us in the House know that the families, the workers and the people of the Maritimes literally thrive on community spirit. What is the hon. member hearing about the way they feel about their national government slapping them in the face with the changes to equalization?

Budget Implementation Act, 2009Government Orders

February 11th, 2009 / 6:25 p.m.
See context

NDP

Megan Leslie NDP Halifax, NS

Madam Speaker, admittedly in Nova Scotia, we have a different situation from what has happened in Newfoundland, because apparently there has been a side deal made with our premier.

My constituents are not talking to me about what is happening with Nova Scotia on equalization, but it is a community affair and Atlantic Canada is Atlantic Canada. We are certainly very concerned about the unfair treatment that Newfoundland is receiving as a result of the budget.