Bill C-466 (Historical)

An Act to amend the Income Tax Act (transportation benefits)

This enactment amends the Income Tax Act to provide for a tax exemption for employee transportation benefits.

National Public Transit Strategy Act

[Olivia Chow, NDP, Trinity—Spadina, ON]

moved that Bill C-305, An Act to establish a National Public Transit Strategy, be read the second time and referred to a committee.

Mr. Speaker, today millions of Canadians were left behind. They were stuck in traffic or they just could not squeeze into the subway car, or the bus was full and did not stop for them. The millions of Canadians who were left behind were on their way to work, to school, to shop, to play, or to take care of their families.

Millions of people across Canada have been left behind: in big cities like Montreal, Toronto and Vancouver, as well as in small towns and villages.

Millions of people were left behind because Canada is falling behind on public transit. We are falling behind the rest of the world. All other G8 countries have a national transit plan, not Canada. Most have predictable capital funding, not Canada. Most have transit-related research and development funding, not Canada. Most have recognized the essential importance of transit in this day and age as a national priority, not Canada. We are falling behind. We are failing to invest where it counts and it is costing us dearly.

In 2006, five years ago, traffic congestion in the Toronto and Hamilton areas alone cost $6 billion in lost productivity; $6 billion five years ago and the congestion is much worse now than it was ever before. Canadian cities are now among the worst in the world.

Add to those costs the cost of traffic accidents, wasted fuel and lost opportunities. Billions and billions of dollars every year go up in smoke with nothing to show for it but bad air and road rage. Those are a lot of bucks. We can do better. We must do better. What is required is resolve and leadership.

With the national transit strategy set forth in this bill we have the chance to show that leadership and move Canada forward. If we do so we will have a positive impact on the lives of all Canadians. There is an urgent need for national leadership, so let us not miss the bus this time. Let us not pass the buck and say that public transit is not the jurisdiction of the federal government. Let us take the lead.

Here are some wise words on jurisdiction: “The national transit strategy would mean the leadership to align a common vision and the opportunity for all three levels of government to work together and define the roles, responsibilities and priorities of each jurisdiction”. Those are not my words. They are not words from the NDP. They are not the words of a federal politician. Those are the words of Her Worship Hazel McCallion, the legendary mayor of Mississauga. Those words were in a letter she wrote to me a few weeks ago in support of this national transit strategy bill.

It is interesting that Hazel McCallion was just ranked number one in a Canadian poll as the most popular mayor. Naheed Nenshi, the major of Calgary, is number two. He is the Prime Minister's mayor and he supports a national transit strategy. Gregor Robertson, the mayor of Vancouver, is number three and he too supports a national transit strategy. These mayors are all in touch with their constituents. They all know what is needed.

Here are some more words: “We would encourage all parliamentarians and all parties to support the creation of a national transit strategy” They are not the words of a big city mayor. They are the words of the mayor of Grande Prairie.

The mayor of Winnipeg said that this provides an excellent framework for a national transit strategy. He was talking about the bill.

On the east coast, the Charlottetown city council supports the bill for a national transit strategy. That endorsement is echoed in all parts of the country, the transit authorities of London, Ottawa, Kelowna, the Saskatchewan Association of Rural Municipalities, the Alberta Association of Municipal Districts and Counties , the Association of Municipalities of Ontario, the Federation of Canadian Municipalities which represent over 2,000 cities large and small, from coast to coast to coast.

Business groups such as the Toronto Board of Trade, and just today, the Victoria Chamber of Commerce, are on board.

There is a reason that all these great community leaders, business groups and ordinary Canadians are crying out for us to act. Transit is important; in fact, it is vital.

It is hard to imagine anything else that could touch the lives of so many Canadians in so many positive ways in every part of our vast country every single day in every season of the year. People going to work are affected every day, as are students going to university, parents trying to get to the daycare centre before it closes, seniors going shopping or to a doctor's appointment, as well as teenagers going to a movie or a hockey game.

Here are some good words that every member of the House should hear:

Investments in urban transportation help ensure the efficient movement of goods and people, thereby strengthening the economy, reducing traffic congestion, greenhouse gas emissions and air pollution and improving the quality of life of Canadians.

Those words sum it up in a nutshell. I could not have said it better myself. I am sure that every member of the government would agree because those words are the very words of the government. They are on the Transport Canada website and have been for over a year. I think we all agree that public transit is critical. That is why we must proceed with a national transit strategy.

We had an opportunity to move forward in the last Parliament. My colleague, the hon. member for Victoria, introduced Bill C-466. That bill would have provided tax incentives to employers to support green commuting by their employees, not just by bus, streetcar or subway, but by bike and on foot. It would have achieved more than the current transit tax credit would, and would have cost less. It was supported by environmental groups and municipal politicians, but the government did not get it done. If we proceed with a national transit strategy, we should be able to revisit this forward-looking approach once again as part of a national solution.

Canada has been left behind, but let us not miss the bus again. Let us not pass the buck. Let us not say that it is not our jurisdiction. A national vision is our jurisdiction. National leadership is certainly our jurisdiction and our responsibility. Municipalities are looking to us for help, as is every Canadian who is sitting in traffic or has just missed the bus. Canadians need more than words, they need action and leadership from this House.

It is not just a question of money. Major investment funds are needed, of course. We have a huge shortfall in what is required for transit capital funds, but we need more than money. We need a strategy to ensure a consistent, reliable, predictable, long-term plan and accountability rather than a piecemeal approach. That is what we need to ensure fast, reliable, accessible and affordable public transit in and between cities and communities large and small, east and west, south and north.

Without a strategy that is hammered out and agreed upon by different levels of government, capital funds are often driven by political considerations and do not achieve long-term national goals. Which transit lines are worthy of support? Why choose subway lines rather than streetcar lines when streetcar lines are cheaper? Why are there buses to one town but not to another town of the same size? Should the number of buses be based on current riders, or on population and potential riders?

We need co-operation, transparency and accountability to ensure that we deliver on our goals. It is a national issue and we need a national solution to a growing national crisis.

Let us find solutions to address the public transit crisis that is affecting the entire country, and use this as an opportunity to have a positive impact on the lives of all Canadians.

This should be a priority for every part of the government, every department and minister, because moving Canada forward with public transit is so important.

Considering the implications for the government and Parliament, clearly a national transit strategy would have a major impact on achieving the goals of the Minister of Transportat and Infrastructure. Nothing could give more bang for the buck, so let us not pass the buck.

Think of all the goals of every government department.

For the Minister of Finance, there would clearly be a major impact on the economy, on growth, on mobility, and on the productivity of the workforce, as well as on the livability and competitiveness of our cities.

Think of the Minister of Labour and the Minister of Human Resources and Skills Development. Mobility of the workforce is a vital goal for them.

The government has made law enforcement a priority. Think what could be achieved by moving forward on transit. There would be fewer traffic accidents, less drunk driving by teenagers, less road rage, the ability for emergency vehicles to get around, fewer muggings, better public safety. Think, for example, of the positive impact of reliable, affordable public transit for a woman going home after a night shift. Think about how many lives we can enhance.

For the Minister of the Environment, a central focus on public transit would help us meet our international commitments on greenhouse gas emissions, would reduce our carbon footprint, and would lead to more innovation and research.

For the Minister of Natural Resources, when it comes to energy, better public transit would mean better energy utilization and lower reliance on fossil fuels, and more emphasis on innovation and research.

For the Minister of Citizenship and Immigration, there would be an impact on immigrants. New Canadians bring such a wealth of talent to our cities and rely heavily on transit.

Think of the benefits for the Minister of Health with better air quality, less stress and fewer traffic accidents. Better transit means a healthier Canada. Think of the ability of patients and seniors to get to the doctor, the hospital, the clinic, or the outpatient facility. Think of the ability of ambulance drivers to quickly get through the traffic to the emergency wards. Think of the ability of hospital staff to get to work, to get to a night shift, to get home. People could afford to commute in cities where living downtown has become so expensive.

For the Minister of Industry, major investment in public transit and infrastructure would create jobs. Building train systems, buses and subway cars would improve competitiveness. It would move us forward with innovation and would open up more export opportunities.

We all would win, so let us not miss the bus or pass the buck. I am sure every minister in the government could think of many positive benefits of investing in public transit. It is hard to imagine any negative examples.

Think of children going to school or to their sports clubs, breathing in the fresh air, or going for a walk with their grandparents.

Think of working men and women who would be able to get to work on time and back home and spend more time with their children. People would exercise more.

Think of how many people we could help and how many lives we could touch. Let us not miss the bus or pass the buck. Let us move forward for all Canadians with all Canadians. Let us not leave anyone behind. Let us not hear anyone say that it cannot be done.

Transportation

[Linda Duncan, NDP, Edmonton Strathcona, AB]

I have a second petition, Mr. Speaker, from the citizens of Edmonton calling on the House of Commons to support Bill C-466 to create greener commuter choices.

The petitioners are concerned about declining urban air quality, the threat of climate change and the fact that one-half of transport is personal transport creating greenhouse gases.

They call on the House to pass Bill C-466 and to implement a national transit strategy and to increase the municipal share of the federal gas tax.

[Kevin Page, Parliamentary Budget Officer, Library of Parliament]

Good afternoon.

Thank you, Chair.

I want to thank the committee for the opportunity to appear before you today. FINA members and parliamentarians in general have consistently referred interesting issues to my team, which has kept us busy and challenged.

I have a few brief introductory remarks I would like to make regarding my general process for preparing estimates of the proposed legislative amendments to the Income Tax Act and our specific review of Bill C-290.

Following this, I would be pleased to answer any questions members may have regarding the correspondence I sent to the committee chair on May 14 or any other issues.

I want to begin by outlining the general process by which we prepare cost estimates of legislative amendments to the Income Tax Act proposed by private members. Over the past year, we have received 15 requests and completed 4 cost estimates. All have followed the same general three-step approach.

Step 1 is to prepare terms of reference for the study, which specify timelines, resources and key assumptions to be used. These terms of reference are presented to the requesting parliamentarian or other interested Committee members for approval before any formal work begins.

Step 2 is to identify relevant data, research and expertise that can be used to determine how many taxpayers are currently eligible for the proposed legislative amendment, and how many taxpayers may be induced to change their behaviour to make themselves eligible.

The third step involves completing a reality check with people who actually work in the field and who are familiar with the policy area. After the calculations are completed and the draft report prepared, we then examine whether results are reasonable given what policy experts know about this domain.

For example, when I prepared a recent cost estimate regarding Bill C-466, the tax exemption for public transportation benefits, we benefited from the insight provided by U.S. firms that actually administer the proposed programs and indicated that, depending on how the legislation was worded, administration costs and adoption rates could vary widely. This is the type of real-world knowledge that is very relevant to preparing a cost estimate, but it's not typically collected in the data.

In the case of Bill C-290, we did not progress beyond step one, the preparation of the terms of reference. My staff met with several committee members shortly after receiving the request and completed a review of the cost estimates prepared by the Bloc Québécois and the government by early May.

At that time, it became evident that the divergence between the two cost estimates primarily related to differing legislative interpretations of Bill C-290. The Bloc Québécois believe it to be narrowly targeted, while the government believes it to have a wider application.

The government estimate assumes that all recipients of income from registered pension plans are eligible for a tax credit on pension income. In contrast, the legislative interpretation of the Bloc Québécois assumes that only retirees whose pension income has been reduced as a result of financial distress of the sponsoring firm are eligible for a tax credit on lost pension income.

After determining this, my staff asked the committee to clarify these assumptions and reach a common understanding of precisely which legislative proposal was to be costed. After waiting a week, we sent correspondence to the chair of the committee providing a preliminary assessment of the two cost estimates—$5 million per annum and approximately $10 billion per annum—and again highlighted the need to reach a common understanding regarding the legislative interpretation of Bill C-290 before moving forward with this request.

As noted in my correspondence of May 14, both estimates appear to be free of major errors. While a government estimate of $10 billion appears reasonable, given its assumptions, the Bloc Québécois estimate of $5 million may be near the low end of a range, based on their differing assumptions.

I would like to convey to committee members that we would look forward to continued work on a terms of reference for this request should members provide additional direction with respect to the legislative intent of Bill C-290.

I would be pleased to answer any questions Committee members may have regarding our process for preparing cost estimates of legislative amendments to the Income Tax Act or my preliminary analysis of Bill C-290.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I am rising to present a petition from residents of British Columbia, Ontario and Alberta. They are calling for the members of the House to support Bill C-466.

They are concerned that the rising use of vehicles is increasing climate change and reducing air quality in cities. They wish to have the federal government take action to promote greener commuting choices by a national transit strategy and a greater municipal share of the federal gas tax to promote cleaner transportation.

Opposition Motion--Climate Change

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Madam Speaker, I thank the member for Thunder Bay—Superior North for splitting his time with me. I also want to acknowledge the passionate work he has done in terms of ensuring that Canada takes a leadership role in protecting the environment.

As the member noted, we will supporting the Bloc opposition day motion and, in part, it is because it reflects work that the NDP has already proposed. The NDP has long been out there speaking to the need to take on action around climate change and to protect the environment. We recognize the significance of the crisis that is facing us.

Bill C-377 was originally introduced by the member for Toronto—Danforth. In his appearance before the committee, he talked about the fact that we need to deal with climate change. It is a fundamental issue. How fundamental? The United Nations Secretary General has called climate change the biggest challenge to humanity in the 21st century. The Global Environment Outlook by the United Nations environmental program stated:

Biophysical and social systems can reach tipping points, beyond which there are abrupt, accelerating or potentially irreversible changes.

We must do our share to prevent the planet from reaching the point of no return.

That was the underpinnings of Bill C-377, which was adopted by Parliament on June 4, 2008, so clearly there was debate and the hearing of witnesses. The bill talked about long term targets to reduce Canadian greenhouse gas emissions 80% below 1990 level by 2050 and medium term targets to bring emissions 25% below 1990 levels by 2020.

We have heard in the House that the NDP simply does not have an action plan. That is absolutely untrue. Our fighting climate change program contains a lengthy list, so I will not go over every detail, but it does talk about implementing a $3 billion green collar jobs plan, including a fund for training; establishing an industry innovation plan to help businesses reduce their energy use; investments in renewable energy solutions; reduce pollution through an early adopters program that encourages the purchase of commercial and electric hybrid vehicles; investing in environmental solutions and incentives to encourage individual Canadians and small businesses to make better choices for their environment through a better building, retrofit and energy efficiency initiative; investing in stable annual transit funding, and it goes on and on.

I would encourage members who have not read our fighting climate change action plan to read it because there are those kinds of concrete actions in it.

The member for Thunder Bay—Superior North has covered some of the details and some of the other potential links with the economy. Sadly, however, we have some serious inaction by the Conservative government. As the member for Thunder Bay—Superior North pointed out, the Minister of the Environment said that they would wait for 192 other countries to put in place regulations before Canada would develop its regulations.

Canada should be a leader, particularly since we are the second highest emitter per capita in the world. We should be out there demonstrating leadership in this field, not waiting for 192 other countries to come onside.

In Canada, fortunately, we have communities and members of Parliament who are actually taking action, not waiting for the government to step up to the plate. I want to turn to a couple of communities on Vancouver Island. In Victoria this past week, about 1,000 people showed up to say that they wanted the government to demonstrate global leadership on climate change. We also know that greater Victoria is the national leader in green commuting. Its bike commuting rate is nearly triple the second place city and the walking rate is tops among census metropolitan areas.

Victoria also has a an excellent member of Parliament who is also taking some initiative. The member for Victoria has introduced Bill C-466 to make employee benefits for transit car pooling and bike commuting tax free. That would go a long way toward encouraging the kinds of behaviour that we know can have an effect on greenhouse gas emissions.

We also know that the member for Victoria has called for a national transit plan. Canada is the only G8 country without one. We also need to increase the municipal share of the gas tax. I am well aware that the City of Victoria and the member have called for global leadership at Copenhagen.

As well, there is an organization in Victoria called the B.C. Sustainable Energy Association, which is certainly an organization that is taking concrete, meaningful action. It has a program called the SolarBC Solar Hot Water Acceleration Project, which has put solar systems in 50 homes in 17 B.C. communities. It also has a climate change showdown program, delivering an interactive climate change education program to 5,000 grade 5 and grade 6 students and challenging their parents to reduce emissions. These are grassroots community initiatives that can have some influence on the kinds of behaviour that we see as important to position Canada as a global leader.

As well, I know the member for Victoria has also taken a leadership role right here in the House, by initiating a series of talks to bring parliamentarians together to find common ground on climate change. These are important educational initiatives to help parliamentarians understand the seriousness of the problem.

I want to turn to my own riding of Nanaimo—Cowichan for a couple of minutes, because in my riding we have many local initiatives. I just want to focus on a couple. One is the Cowichan Green Community, part of whose mandate is the promotion of energy efficiency, healthy housing and environmental sustainability in the Cowichan Valley. It does that through a whole series of initiatives. It has a food security initiative for community gardens, for growing one's own food, fruit gleaning and buying local. It has healthy, efficient housing initiatives, which build sciences geared specifically to the valley's temperate climate. It has a water conservation and water quality initiative; sustainable gardening and landscaping around organics and native plants; natural based household products; rural air quality; and alternative transportation.

Just a couple of things it has undertaken to help support local responsibility for greenhouse gas initiatives include a buy local push to prompt local grocers to support local farmers; a car share co-op; help to start a garden; support for the Duncan Seedy Saturdays, including seed sharing and preserving heritage seeds; and food security concepts, where they have initiated a local food security program.

It does not stop at Cowichan. The little town of Cowichan Bay is part of the slow food initiative, which links local restaurants and farmers.

We have a biodiesel co-op and local restaurants providing vegetable oil to it. We are finding that a lot of our local people are signing up to reduce their greenhouse gas emissions by using local biodiesel.

We have the Nanaimo food link program, which has a field-to-table program and is looking at food policy and food security systems. Again, it is trying to link up and protect local farmers, and encouraging and purchasing local food.

We also have programs supporting the cultural and traditional indigenous foods project. In this particular project, we are seeing organizations work with first nations all over Vancouver Island to support the traditional local diets that were far healthier. It is also making links back to local growers and local suppliers, including our wild salmon suppliers.

We can see that local communities are stepping up to the plate. Local communities recognize that in the absence of leadership, we need the municipalities, the provincial governments and the federal government to come to the table.

In its recent report, the “World Energy Outlook”, the International Energy Agency warned that each year of delay in addressing climate change will cost $500 billion globally. This is the kind of legacy we are leaving behind for our children, grandchildren and great grandchildren. I would argue that it is time for us to come together as a House and work across party lines to take on this very serious challenge and demonstrate that Canada can be a leader in fighting climate change, both in this country and internationally.

Income Tax Act

[Denise Savoie, NDP, Victoria, BC]

moved for leave to introduce Bill C-466, An Act to amend the Income Tax Act (transportation benefits).

Mr. Speaker, I am please to introduce my commuter choices bill this morning. The twin threats of climate change and poor air quality demand that we creatively encourage alternative modes of transportation to the single occupancy vehicle.

Today, I am proposing to allow employees to receive tax-free employer-provided benefits to cover the costs of transit, carpooling and bicycle commuting. This bill compliments and is an improvement to the current government transit tax credit. The employer-related commuter benefits that are proposed for tax exemption would apply to an employee's highest personal income tax rate. It would also save payroll costs for employers and remove administrative barriers that exist presently.

As this bill illustrates, government can help make better commuter choices easier for Canadians. It would help us to meet our eventual commitments to reduce our greenhouse gas emissions.

I want to thank my constituents, Sarah Webb and Dan Pollock, who inspired this bill, and CUTA, the Canadian Urban Transit Association, for the policy work it did on this bill.

(Motions deemed adopted, bill read the first time and printed)