Bill C-9 (Historical)

Jobs and Economic Growth Act

An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures

Part 1 of this enactment implements income tax measures proposed in the March 4, 2010 Budget. In particular, it
(a) introduces amendments to allow a recipient of Universal Child Care Benefit amounts to designate that the amounts be included in the income of the dependant in respect of whom the recipient has claimed an Eligible Dependant Credit, or if the credit is not claimed by the recipient, a child of the recipient who is a qualified dependant under the Universal Child Care Benefit Act;
(b) clarifies rules relating to the Medical Expense Tax Credit to exclude expenses for purely cosmetic procedures;
(c) clarifies rules relating to payments made to a Registered Education Savings Plan or a Registered Disability Savings Plan through a program funded, directly or indirectly, by a province or administered by a province;
(d) implements amendments to the family income thresholds used to determine eligibility for Canada Education Savings Grants, Canada Disability Savings Grants and Canada Disability Savings Bonds;
(e) reinstates the 50% inclusion rate for Canadian residents who have been in receipt of U.S. social security benefits since before January 1, 1996;
(f) extends the mineral exploration tax credit for one year;
(g) reduces the rate of interest payable by the Minister of National Revenue on tax overpayments made by corporations;
(h) modifies the definition “taxable Canadian property” to exclude certain shares and other interests that do not derive their value principally from real or immovable property situated in Canada, Canadian resource property, or timber resource property;
(i) introduces amendments to allow the issuance of a refund of an overpayment of tax under Part I of the Income Tax Act to certain non-residents in circumstances where an assessment of such amounts has been made outside the usual period during which a refund may be made;
(j) repeals the exclusion for indictable tax offences from the proceeds of crime and money laundering regime; and
(k) increases the pension surplus threshold for employer contributions to registered pension plans to 25%.
Part 2 amends the Excise Act, 2001 and the Customs Act to implement an enhanced stamping regime for tobacco products by introducing new controls over the production, distribution and possession of a new excise stamp for tobacco products.
Part 2 also amends the Excise Tax Act and certain related regulations in respect of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) to:
(a) simplify the operation of the GST/HST for the direct selling industry using a commission-based model;
(b) clarify the application of the GST/HST to purely cosmetic procedures and to devices or other goods used or provided with cosmetic procedures, and to services related to cosmetic procedures;
(c) reaffirm the policy intent and provide certainty respecting the scope of the definition of “financial service” in respect of certain administrative, management and promotional services;
(d) address advantages that currently exist in favour of imported financial services over comparable domestic services;
(e) streamline the application of the input tax credit rules to financial institutions;
(f) provide a new, uniform GST/HST rebate system that will apply fairly and equitably to employer-sponsored pension plans;
(g) introduce a new annual information return for financial institutions to improve GST/HST reporting in the financial services sector; and
(h) extend the due date for filing annual GST/HST returns from three months to six months after year-end for certain financial institutions.
In addition, Part 2 amends regulations made under the Excise Tax Act and the Excise Act, 2001 to reduce the interest rate payable by the Minister of National Revenue in respect of overpaid taxes and duties by corporations.
Part 3 amends the Air Travellers Security Charge Act to increase the air travellers security charge that is applicable to air travel that includes a chargeable emplanement on or after April 1, 2010 and for which any payment is made on or after that date. It also reduces the interest payable by the Minister of National Revenue to corporations under that Act.
Part 4 amends the Softwood Lumber Products Export Charge Act, 2006 to provide for a higher rate of charge on the export of certain softwood lumber products from the regions of Ontario, Quebec, Manitoba or Saskatchewan. It also amends that Act to reduce the rate of interest payable by the Minister of National Revenue on tax overpayments made by corporations.
Part 5 amends the Customs Tariff to implement measures announced in the March 4, 2010 Budget to 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 manufacturing inputs and machinery and equipment imported on or after March 5, 2010.
Part 6 amends the Federal-Provincial Fiscal Arrangements Act to provide additional payments to certain provinces and to correct a cross-reference in that Act.
Part 7 amends the Expenditure Restraint Act to impose a freeze on the allowances and salaries to be paid to members of the Senate and the House of Commons for the 2010–2011, 2011–2012 and 2012–2013 fiscal years.
Part 8 amends a number of Acts to reduce or eliminate Governor in Council appointments, including the North American Free Trade Agreement Implementation Act. This Part also amends that Act to establish the Canadian Section of the NAFTA Secretariat within the Department of Foreign Affairs and International Trade. In addition, this Part repeals The Intercolonial and Prince Edward Island Railways Employees’ Provident Fund Act. Finally, this Part makes consequential and related amendments to other Acts.
Part 9 amends the Pension Benefits Standards Act, 1985. In particular, the Act is amended to
(a) require an employer to fully fund benefits if the whole of a pension plan is terminated;
(b) authorize an employer to use a letter of credit, if certain conditions are met, to satisfy solvency funding obligations in respect of a pension plan that has not been terminated in whole;
(c) permit a pension plan to provide for variable benefits, similar to those paid out of a Life Income Fund, in respect of a defined contribution provision of the pension plan;
(d) establish a distressed pension plan workout scheme, under which the employer and representatives of members and retirees may negotiate changes to the plan’s funding requirements, subject to the approval of the Minister of Finance;
(e) permit the Superintendent of Financial Institutions to replace an actuary if the Superintendent is of the opinion that it is in the best interests of members or retirees;
(f) provide that only the Superintendent may declare a pension plan to be partially terminated;
(g) provide for the immediate vesting of members’ benefits;
(h) require the administrator to make additional information available to members and retirees following the termination of a pension plan; and
(i) repeal spent provisions.
Part 10 provides for the retroactive coming into force in Canada of the Agreement on Social Security between Canada and the Republic of Poland.
Part 11 amends the Export Development Act to grant Export Development Canada the authority to establish offices outside Canada. It also clarifies that Corporation’s authority with respect to asset management and the forgiveness of certain debts and obligations.
Part 12 enacts the Payment Card Networks Act, the purpose of which is to regulate national payment card networks and the commercial practices of payment card network operators. Among other things, that Act confers a number of regulation-making powers. This Part also makes related amendments to the Financial Consumer Agency of Canada Act to expand the mandate of the Agency so that it may supervise payment card network operators to determine whether they are in compliance with the provisions of the Payment Card Networks Act and its regulations and monitor the implementation of voluntary codes of conduct.
Part 13 amends the Financial Consumer Agency of Canada Act to provide the Financial Consumer Agency of Canada with a broader oversight role to allow it to verify compliance with ministerial undertakings and directions. The amendments also increase the Agency’s ability to undertake research, including research on trends and emerging consumer protection issues. Finally, the Part makes consequential amendments to other Acts.
Part 14 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to confer on the Minister of Finance the power to issue directives imposing measures with respect to certain financial transactions. The amendments also confer on the Governor in Council the power to make regulations that limit or prohibit certain financial transactions. This Part also makes a consequential amendment to another Act.
Part 15 amends the Canada Post Corporation Act to modify the exclusive privilege of the Canada Post Corporation so as to permit letter exporters to collect letters in Canada for transmittal and delivery outside Canada.
Part 16 amends the Canada Deposit Insurance Corporation Act to allow the Governor in Council to specify when a bridge institution will assume a federal member institution’s deposit liabilities and allow the Canada Deposit Insurance Corporation to make by-laws with respect to information and capabilities it can require of its member institutions. This Part also amends that Act to establish the rules that apply to the assignment, by the Canada Deposit Insurance Corporation to a bridge institution, of eligible financial contracts to which a federal member institution is a party.
Part 17 amends the Bank Act and other related statutes to provide a framework enabling credit unions to incorporate and continue as banks. The model is based on the framework applicable to other federally regulated financial institutions, adjusted to give effect to cooperative principles and governance.
Part 18 authorizes the taking of a number of measures with respect to the reorganization and divestiture of all or any part of Atomic Energy of Canada Limited’s business.
Part 19 amends the National Energy Board Act in order to give the National Energy Board the power to create a participant funding program to facilitate the participation of the public in hearings that are held under section 24 of that Act. It also amends the Nuclear Safety and Control Act to give the Canadian Nuclear Safety Commission the power to create a participant funding program to facilitate the participation of the public in proceedings under that Act and the power to prescribe fees for that program.
Part 20 amends the Canadian Environmental Assessment Act to streamline certain process requirements for comprehensive studies, to give the Canadian Environmental Assessment Agency authority to conduct most comprehensive studies and to give the Minister of the Environment the power to establish the scope of any project in relation to which an environmental assessment is to be conducted. It also amends that Act to provide, in legislation rather than by regulations, that an environmental assessment is not required for certain federally funded infrastructure projects and repeals sunset clauses in the Regulations Amending the Exclusion List Regulations, 2007.
Part 21 amends the Canada Labour Code with respect to the appointment of appeals officers and the appeal hearing procedures.
Part 22 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes.
Part 23 amends the Telecommunications Act to make a carrier that is not a Canadian-owned and controlled corporation eligible to operate as a telecommunications common carrier if it owns or operates certain transmission facilities.
Part 24 amends the Employment Insurance Act to establish an account in the accounts of Canada to be known as the Employment Insurance Operating Account and to close the Employment Insurance Account and remove it from the accounts of Canada. It also repeals sections 76 and 80 of that Act and makes consequential amendments in relation to the creation of the new Account. This Part also makes technical amendments to clarify provisions of the Budget Implementation Act, 2008 and the Canada Employment Insurance Financing Board Act that deal with the Canada Employment Insurance Financing Board.

Jobs and Economic Growth Act

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

Mr. Speaker, I am very proud of the smart lawyers at Canada Post.

Canada Post belongs to the people of Canada. They run Canada Post like a business. Of course, they want to make sure that they, as a business, make as much money as possible. They understand that not every Canadian has email.

There is an art to writing letters. Handwritten letters are still very important, especially for a lot of seniors who would like to send get-well cards, birthday cards, and wedding cards. All of those elements are important for people to communicate with each other, especially in rural Canada.

We want Canada Post to be financially viable—

[The Deputy Speaker, Andrew Scheer]

Order.

Resuming debate. The hon. member for Windsor—Tecumseh.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, Bill C-9 is a travesty of the democratic process in the House. I know I am not supposed to use the term “hypocrisy” when I am speaking of individual members, but I think I am allowed to do that when I am speaking of the government as a whole. This bill really fits that category.

I have stood in the House repeatedly challenging the government to use omnibus crime bills as opposed to, as it is wont to do repeatedly, repeatedly, repeatedly, individual bills on crime, and of course, taking advantage of all the publicity that it gets, which I find quite repulsive, trotting out victims in each one of these areas just so it can have a photo opportunity.

When we look at the number of crime bills we have had and how many of those could have been incorporated into omnibus bills and then referred to the justice committee where they could have had thorough review, investigations and expert witnesses coming in, hearing from the general public on legislation of that kind, it could have done that in a very efficient way as opposed to what we have seen with regard to the numerous bills we have had. We just had another one today. Bill C-30 came through today. Again, it is a classic example where it could be easily combined with a half dozen other bills that are either outstanding or we know are coming from the government.

Instead of having to waste a great deal of time and debate in the House, we could have had reasonable debate and sent it over to the justice committee where it would have been properly investigated and then come back to the House for further debate and either passage or rejection.

We have seen that pattern by the government repeatedly since it first came to office. Then what we have seen, both in last year's budget and even more so in this year's budget, is an attempt on the government's part to justify that, for efficiency purposes, we should have an omnibus bill.

We have heard from any number of other members the number of provisions, and I am going to come back to this, in this bill that really at their essence have nothing to do with budgetary matters and have everything to do with other serious public policy issues that should be given their due attention as opposed to what has happened with the bill.

When we juxtapose those two positions, all of these crime bills coming through not in the form of omnibus bills, which they should be, and then throwing into a budget bill, which is what Bill C-9 should be, all sorts of other public policy issues that should not be there, it is inevitable to see the inconsistency in those two positions, and as I said in my opening remarks, the shameful way that democracy is being thwarted in this type of approach by the government.

Again, it is not the first time it has done it. It certainly did it quite extensively in last year's budget with the budget implementation bill, but it has gone even significantly further in this one.

We may say, if we have had a reasonable amount of debate on it, is it not justified? As we know, in fact it is not. Any number of those other issues that have been injected into Bill C-9, into this budget implementation bill, are not issues that would call for the government to fail should the provisions not go through the House, whereas the budget bill, as we all know, is a matter of confidence and the government does come down if the vote is against it.

We know that the official opposition is running scared from the government and is not prepared to bring the government down on major policy issues. The government is using that to its advantage with the fear that the Liberals have of having to face the electorate. So the Liberals are certainly guilty to a significant degree when we see these types of bills coming through, because they are being intimidated, they are being bullied, and they are succumbing to that intimidation and bullying by the Conservative government. That again is not a healthy democracy to be functioning within.

That process is bad for democracy and it is bad for good public policy, and let me go to that now. A number of these provisions that have been incorporated into Bill C-9 clearly should not be there, should be stand-alone bills.

Let me deal with the environmental assessment provisions that are in here. The provision in Bill C-9 should be a separate bill. It should be in front of the environment committee, where members of that committee are thoroughly knowledgeable of the necessities we have in this country for environmental assessments. Those committee members have thorough knowledge of what is required with regard to environmental assessments at the national level in this country. They have the ability to thoroughly review the legislation to determine whether in fact it is adequate.

As I think everyone in the House knows, we are opposed to the policy position the government has taken in this regard. Moving the assessments out of the environment department into natural resources, providing almost absolute discretion to the minister as to when assessments are to take place, is clearly not good public policy. It stands out in these circumstances with what has happened in the Gulf of Mexico, the concerns we have of the government being quite willing to be overly friendly with the oil and gas industry, willing to bend the rules. We have seen recently, and I am sure this would have gone through but for what happened in the Gulf of Mexico, a request by the oil and gas industry to further loosen the rules generally with regard to exploration, but specifically with regard to exploration and drilling offshore. That request had been made. But for the Gulf of Mexico, I am quite convinced the government would have been prepared to move on it.

If this bill goes through as is, what will happen is that provision will surface at some point in the future. The government again will be receptive to that kind of approach, claims of poverty by the oil and gas industry that they cannot afford to do full assessments, they cannot afford to meet higher standards, and the government will cave in and allow them to do whatever they want to do. That has certainly been the history, whether it is in Alberta in the oil sands or any number of other places across the country where the oil and gas industry has had its way and we have seen the consequences. That is the kind of abuse that this kind of legislation allows for.

With regard to the other provisions, the provision that is always of particular concern, given the community that I come from, is the stripping out of the $57 billion in the fund that was supposed to be there to take care of workers when they were faced with high levels of chronic unemployment. Stripping that out is something that always stands, in a community such as Windsor—Tecumseh where the labour community is very conscious of that having happened, first under the Liberals and now being finalized under the Conservatives. That bill should be a separate bill. That provision should be a separate provision and we should be voting on it separately so that it is very clear as to who is prepared to stand up in this country to protect workers when they are in that difficulty.

The final point I want to make is what is not in the bill, around pensions. Again, in the community I come from, we have taken some major hits on private pensions going down, on the Canada pension and the OAS not being sufficient to take care of people in their retirement. We owe them that obligation. We have set out in very clear form some of the alternatives that could be followed. None of that is in the bill and is another reason that we are adamantly opposed to it.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I would like to ask about management systems, because I admire the member's intellect in some of these areas. When he talked about management of the oil and gas industry, he brought up the important point that we have been making as well that recently there was a change in the management system so it became a goals-oriented process, so that some mandatory items were removed. The industry had to set goals and prove that they were going to meet those goals. Their arguments are that if we just required certain goals, if there was an accident and they had followed those goals, they could say they were blameless. Or the other one is that things are changing all the time and there are new technologies that the companies could use.

I would like the member to comment on the new management changes.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I thank the hon. member for his question and his kind comments. They were better than what I got from my colleagues back here.

He makes a very good point. With regard to that, some of the news that broke over the weekend was about what went on with the approach taken in the Gulf of Mexico by BP and by their own people, who had told them that the system, the technology, they were going to use was really, seriously questionable. It is the same kind of thing. Even if it was goal-oriented and they had those kinds of standards, they did not meet them.

The initial reports came out from their own staff saying that they had serious doubts about whether this would work, that there were serious problems of risk, and that they should be reconsidering it. A few months later, another report comes out, and all of a sudden, they can now meet them. There was no change in technology.

It is that kind of abuse.

What it is really about, and my friend from the Yukon is very right about this, is that we need government protection in this area. We cannot leave activity as risky as this to be determined by the industry, which is clearly in conflict when it comes to setting those standards. They have to be set by independent arbiters and experts in the field. Those standards then have to be met by the industry in question and have to be enforced.

That is true, certainly, in the oil and gas industry. It is also true in any number of other areas where government has to play the role of protecting their citizens.

[Chris Charlton, NDP, Hamilton Mountain, ON]

Mr. Speaker, I really enjoyed listening to the speech from the member for Windsor—Tecumseh.

Tomorrow is Hunger Awareness Day, which speaks to a whole range of issues, including, of course, issues of poverty, first and foremost.

Employment insurance, for many Canadians, is the last opportunity to stave off a life of poverty when people have been adversely affected because they have lost their jobs. Communities like the member's community of Windsor and my home town of Hamilton Mountain have been just devastated by the tsunami of job losses as a result of the recession we are still in but that we first felt the effects of in 2008.

One of the things in the budget bill, as the member correctly pointed out, is the final nail in the coffin of the $57 billion fund of EI moneys, which the government is now taking for itself and is putting into consolidated revenues. It is basically legalized theft.

I want to ask the member for Windsor—Tecumseh whether his community is facing the same reality as we are in Hamilton, where people now have to rely on social assistance, because EI is no longer there for them. All the costs are now going onto ratepayers, the very people who have lost their jobs in our community.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, there is no question that Windsor and the county governments are faced with a significant increase in the number of people on the social service welfare rolls. There is no question. I have seen a growth in numbers of as much as 17% to 20% over the last two years. It appears to be levelling off at this point. However, the increases are at that level. The Ontario government has made it very clear that across the whole of the province there will be huge increases.

We have seen similar figures, interestingly, in Alberta and British Columbia, with a 20% to 25% growth in the number of people who are receiving welfare benefits. That is a direct result of all that money disappearing out of the EI fund. The federal government is not in a position to expand without taking money out of general revenue, which is what it should have done as opposed to dumping all that money into general revenue over the years.

The fund was there. At a time of crisis, such as we are going through at this period of time and have been going through over the last 18 months, those funds would have made a great difference in ending the poverty level in this country.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I am really pleased to stand to speak to Bill C-9, the budget implementation act, because it gives me an opportunity to speak about what I think are two very critical issues in the public governance field. The first is the question of sound, appropriate public policy in government. The second issue, which I think is just as important, has to do with two different visions of an economic development model in this country, one from the government and one from the New Democrats. I would like to point out that I think Bill C-9 highlights this very critical difference for Canadians.

I want to start, first, with the question of sound public policy and the question of accountability and sound budgeting practices.

The bill that has been tabled is approximately 880 pages long. It is what is called an omnibus bill. For any Canadians who might be watching right now, that means that the government has taken items that are normally part of a budget and has added to them legislative proposals on a wide variety of other subjects that are not typically part of a budget bill.

I would respectfully suggest to all my colleagues and to all Canadians that this is an inappropriate practice, and there are some solid reasons for that.

First and foremost is one of respecting the democratic process. When a budget is tabled in the House, of course, members of Parliament debate the items in that budget and determine the proper and appropriate economic blueprint for the year ahead, which is what Canadians have sent them to do. That includes raising revenue and spending revenue and other measures that have to do with the running of our country, fiscally and economically. In order to debate that budget properly, we need to have subjects in that budget that lend themselves to that debate.

When a government, such as the one here, throws into that budgetary process items that have no business being in that budget, it cripples the debate, and it causes parliamentarians to have to vote on items that are not budgetary in nature. We cannot then have a proper, full debate on issues that are very important.

In some ways, I think Bill C-9 is a classic example of one of the major problems of the current government, which is that it has a fundamental disrespect for Parliament and a fundamental disrespect for the institutions of government in this country.

Of course, this is not the first time the current government has illustrated this disrespect. It has prorogued Parliament twice when it has found it inappropriate or uncomfortable to debate the issues Canadians send us here to debate. It has used the budget process before to engage in this kind of inappropriate behaviour.

We all remember back in 2008 that the current government used the budgetary process as a political attack--a political attack on the public service, a political attack on pay equity, a political attack on women, and a political attack on political parties--by trying to ram through a budget in the fall of 2008 that was as much an aggressive document of political ideology as it was one of sound budget.

I want to highlight for Canadians a couple of those inappropriate measures in this budget, and there are many. These are some of the more egregious ones.

First, the current government has seen fit to put in provisions that would seriously and significantly impair the environmental assessment process at the federal level in this country. They are in the budget. Now, Canadians might ask what an environmental assessment process has to do with a budget. If Canadians asked that question, they would be asking an astute question that I think exists on this side of the House, which the government does not seem to want to answer.

I want to briefly summarize this environmental assessment process. It exempts certain federally funded infrastructure projects from environmental assessments, period. It pre-empts a review of the environmental review process in June 2010. It allows the Minister of the Environment to dictate the scope of environmental assessments. It weakens public participation. It enables the removal of the assessment of energy projects from the Canadian Environmental Assessment Agency and transfers that jurisdiction to the National Energy Board and the Canadian Nuclear Safety Commission.

Let me repeat that. It takes the review of energy projects away from an environmental assessment tribunal and has the projects reviewed by energy agencies. I think Canadians would find that shocking, particularly because, as we speak, there is an oil well in the Gulf of Mexico that is gushing millions of barrels of oil into the Gulf of Mexico. It is creating what will no doubt be a century of environmental degradation and devastation. Why? It is coming out that there were weak regulatory and oversight procedures in the United States. In other words, the fox was in the henhouse.

Canadians, North Americans, and citizens of our world, I would argue, want projects to be analyzed in terms of their environmental sustainability and worth. That is not done by the very agencies whose job it is to try to pass those energy projects. It is a clear conflict of interest.

This budget also includes the privatization of part of the business of Canada Post. One might ask what that has to do with the budget. Why is there any place in this budget for a provision that would send the international mail provision of Canada Post off to the private sector? Again, it is because what the government wants to do is put ideological and political measures into the budgetary process to try to have them passed as a confidence measure. Government members know, as all Canadians know, that the Liberal opposition in this country will pass anything to avoid an election. That is putting narrow political partisan interests ahead of good public policy, and I think it is lamentable.

I want to talk about the budget from a straight budgetary point of view, because there are a lot of bad measures on their own in this budget. For instance, as has been spoken about, $57 billion of EI premiums have been taken from workers and employers in this country—

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

That was the Liberals.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, that is a good point. The money started to be taken by the Liberals. It has been finished off by the Conservatives. They took $57 billion and put it into general revenues and have not put the money back.

I hear catcalls of innocence from Conservative members. If they are sincere about that, they will put $57 billion back into the EI account. They will put it back in, because it is not their money. It belongs to the workers and businesses who deducted it and paid it, trusting that the money would be there as insurance money for unemployment, not for funding tax cuts to corporations.

Let me move to that. What is in this bill, as well, and what is odious in this economic time is the momentous tax shift from corporations to individuals. Every Canadian knows that the Conservative government brought in the HST in Ontario and British Columbia and provided $6 billion of bribe money so that the governments in those two provinces would bring in the HST. It will result in hundreds and hundreds and in some cases thousands of dollars in taxes being transferred onto the backs of ordinary people in these two provinces.

We are doing that at a time when the government is running a deficit of over $50 billion. One would think that when we are running a deficit of $50 billion, we would not be giving money to corporations, but the government does. Why? Because it is the triumph of ideology over common sense. No government in its right mind would be transferring money and wealth, going into debt, and borrowing money to give to corporations when it is $50 billion in deficit, but the government has done that.

It is raising the airline tax by 50%. Every time a Canadian goes to the airport in this country, he or she will be paying twice as much as he or she used to.

The government says that it is opposed to tax hikes, but it has raised EI premiums, doubled the airline tax, and brought in the HST. Canadians are not fooled. They know who is taxing them, and they know that they are being taxed unfairly.

What is not in this budget? There is no child care, no national housing policy, and no real help for pensions in this country. In terms of pensions, the country needs an expansion of CPP and an increase in GIS. We need $700 million annually to lift seniors out of poverty in this country. All we need is $700 million. The government will spend $1 billion on security for three days of meetings in Toronto for a photo op for the Prime Minister, when for $700 million, every senior in this country could be lifted out of poverty.

Budgets are a question of soul. When a budget is brought forth, we look into the soul of a government, and I think all Canadians are seeing clearly where the soul resides in this government.

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Mr. Speaker, we are dealing with the deletions in group no. 1, specifically the air travellers' security charge, the environmental assessment, and the EI funding.

I am particularly interested in the air travellers' security charge. It has been alleged, and rightly so, that the revenues that are being collected through the air travellers' security charge far exceed the money that the government is actually spending on security.

The government is already raising more money than it is spending on security. Why would it increase the charges by 50%, making Canada the highest taxed jurisdiction in the world, exceeding Holland, and putting us at a competitive disadvantage to the United States? In the United States there is an international security tax of $5. The new Canadian tax is $25.

Before this new change, Canadian airlines were already at a competitive disadvantage with people buying their airfares in the United States through U.S. carriers. Why would a government that is trying to make Canada competitive be making Canada more uncompetitive?

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, a government will increase fees on Canadians when it wants to hide the fact that it is raising revenue from ordinary Canadians while trying to fool them into thinking that they are not paying taxes.

Just because a government says it is so does not make it so. The government stands up day and after and says it is not raising taxes. That is what the government says, but it raised the HST, and it is raising the airline taxes and EI premiums. To taxpayers, those all amount to the same thing, it is money out of their pockets.

Worse, the government claims that it is raising the security fee increase in order to pay for security, but the money that would be raised by this tax is not going to aviation security, it is going to consolidated revenues. That tells Canadians quite clearly that the government is raising money off of Canadians every time they go to the airport to help it deal with its $50 billion deficit so that it can give money to corporations in this country that do not need it.

[Chris Charlton, NDP, Hamilton Mountain, ON]

Mr. Speaker, one of the items in this budget bill that perhaps has not gotten nearly as much attention as it should have are the sections that are eviscerating federal environmental assessments.

For people who are maybe watching this debate at home today, that is particularly germane in light of what we are seeing south of the border in the Gulf of Mexico, particularly with respect to the oil spill down there.

We have a government here that, instead of re-examining all aspects of development that have an adverse impact on our environment, is making it easier and is loosening regulations. It is making it possible for people to essentially get around environmental assessment criteria. It is now being put into the budget in a way that formalizes the gutting of our environmental assessments.

I think it is one of the issues that deserves much more detailed attention. It deserves independent study, outside of this budget bill.

I know the member for Vancouver Kingsway is on the west coast. I know he has his own concerns about tanker traffic. I just wonder whether the member could bring a western perspective to that part of the debate, on environmental assessments in particular.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I would like to thank the hon. member for this opportunity to address this issue.

It is exactly true. We on the west coast have a pristine coastline. We are very aware and sensitive to the fact that we are in a seismically active area. Any drilling that would go on, on the west coast or up in the Arctic, would be subject to particular dangers that are simply not worth it.

I think I can safely speak on behalf of British Columbians when I say that they do not want to see drilling off the west coast. They do not want to see oil tanker traffic in sensitive waters off the west coast. They do not want to see any drilling up in the Arctic, where we all know weather and harsh conditions would make the kind of disaster we are seeing in the Gulf of Mexico utterly incomprehensible.

Moving major industrial projects from an agency that is dedicated to environmental protection and handing it over to an industry-friendly board, like the NEB, is simply irresponsible. It is the kind of issue that should not be in the budget. My friend is quite right that we should be examining that separately because I think members of this House would not want to see such a bad policy move. It is hard to do so when it is enveloped inside an 880-page budget bill.

[Megan Leslie, NDP, Halifax, NS]

Mr. Speaker, all members of Parliament here in the House of Commons were elected to represent the constituents in their ridings. Representation can and, I believe, should take two forms.

First, we are elected to be the voice of our constituents and represent their interests here in Ottawa. Our constituents write to us, call us and send us emails. They tell us how they feel about certain issues. They chat with us at the farmers' market or at different community events, and they share their perspectives with us.

We have an obligation to take that feedback. We represent our constituents by bringing those perspectives, thoughts and opinions here. It helps guide us in how we vote, what we say in debates, and how we shape the policies of our parties as well as our government.

However, we are also elected to represent ideas and perspectives of our own, to take leadership on issues, to take positions, and to make decisions about the policies facing our country and our citizens. We are elected to take thoughtful and informed positions and even sometimes unpopular positions.

There is a tension here between what the individual constituents are saying and the mandate upon which an MP was elected to move forward. With respect to this budget and this budget speech, I would like to raise thoughts and ideas that come from individual constituents as well as perspectives of my own and perspectives of the NDP. Interestingly enough, the three are very much aligned.

Like many members of Parliament, I solicit feedback from my constituents with mail-back cards that are attached to my MP mail-outs and newsletters. I have a pretty engaged constituency. I am always thrilled to see a stack of cards in my office with feedback that my constituents want to share with me. I would like to share some of their responses with my colleagues here in the House. It is specifically feedback that I received regarding 2010 budget.

Tim Hosford wrote to me. He said, “Megan, we need a law to protect our pensions. As for the economy, we need to continue to put money into it, allocate monies for education and we need a plan for the next 10 years”. A plan sounds like a good idea.

Halifax has the highest density of students of any city in Canada. It is often reflected in comments that I receive in my office. For example, Dustin Joldersma wrote, “University students!!! Make it easier to get student loans, for example, part-time students should be able to get student loans. Also making cuts to foreign aid is not an answer. Government and universities cannot overlook part-time students”.

Another constituent named Burton Coutts wrote that the Prime Minister is “giving us the worst government in my lifetime and I am 87. Recent priorities are return of money to cancelled and reduced women and children's issues, also CIDA and KAIROS, and it appears his cohorts want to cut funding for birth control and abortions here and in countries where women and children are at risk”.

Alan Matte provided great feedback on pharmacare that was pretty straightforward. J. Scott wrote to me and said, “A priority long overdue is better health care. More doctors available for faster and better service. More help to nurses in hospitals, better emergency service--”

M.T. Lynden from my riding has a really great list. It is a pretty big list, starting with free education. The letter continues, “It's important that everyone can access education, regardless of their income. University students often end up with a large debt. Interest should not be charged on their student loans, neither provincially nor federally...and health: dental and medication coverage...for those who don't have a benefits plan”.

That is a little snapshot of the mood of my riding. I am proud to stand here in this great House and share that feedback with my colleagues.

I would like to pick up on the last issue that came through in a couple of letters from my constituents: the issue of health care. As we heard, it is something that my constituents care quite a bit about. We keep hearing from the government about the need to cut spending, the need to trim the fat, and the need to tighten our belts.

However, the government and this budget fail to realize that while spending on health is growing, we can get a handle on health costs if we just turn the corner and start focusing on what Tommy Douglas referred to as phase two of his health care vision. We could actually control and reduce our costs when it comes to health spending.

Tommy Douglas described his original vision for health care. He described Canada as a country “where all can live free from fear, free from crippling debts when we fall ill”. We have seen a lot of that vision implemented since he established medicare in Saskatchewan half a century or so ago, but that vision is eroding due to a lack of leadership, a lack of vision, and neglect. It is time for us to move ahead with a new vision that is suited to our times and that is phase two.

Phase one was universal public insurance for physician and hospital care.

Phase two has two components. First, to extend medicare to cover services that are increasingly delivered outside of a hospital, services that have become an integral part of our modern health care system, such as home care, long-term care, community care, drug therapy, and initiatives that address the social determinants of health. Again, this is about prevention. This is about reducing our costs.

Dennis Raphael, a professor at York University, put out an excellent report on the social determinants of health. The social determinants of health are a better indication of what one's level of health is going to be and how long one will live as compared to the kind of treatment one will get. We could actually save a lot of money by focusing on social determinants of health and things like home care.

The other component of phase two is managing health care better. Let us make better use of health human resources, wait list management, team practice, integration of services, sharing of best practices, evidence-based practice and other innovations.

I am looking forward to the report coming from the health committee about health human resources. The committee heard some amazing testimony about innovative ways to look at exactly how we can manage health care better, how we can make better use of health human resources and save money, and start controlling our health care costs, but perhaps more important, making sure that Canadians are healthy, happy, and doing well in our communities.

I have spoken before in this House about what I see as the failures of this budget, specifically its failure to seize opportunities in the world of science, technology and innovation. The last time I spoke to this bill that was the focus of my speech, particularly in the world of the green economy of the future. This lack of vision carries through the budget. It is not just the failure to grasp science, technology and innovation. It goes right through the budget on all kinds of issues, including health care.

The only vision that I see here is the sell off of Atomic Energy of Canada Limited, gutting environmental protection, and killing successful projects like eco-energy renewables. That is quite the vision.

The Canadian Centre for Policy Alternatives put together a very well researched alternative federal budget and it has a vision in its alternative budget, a vision for health care, something that is missing from this budget. It says that, “Canada's public health care system is a fundamental pillar of our society, and it must be strengthened, especially in the wake of devastation caused by the economic crisis”. Its alternative budget says, “It's time to launch serious discussions with the provinces and territories to cost share pharmacare between the federal and provincial government and employers--”

The centre proposes a royal commission on the establishment and financing of a public drug plan, and funding the pharmacare of low income Canadians.

It also calls for a restoration of federal cash payments for extended health services, including nursing home intermediate care services, adult residential care services, home care services, and outpatient health care services.

It also talks about working with professional regulatory bodies, health care unions, and immigrant rights organizations to facilitate the recognition of international education.

Its plan calls for funding of post-secondary education in health programs, looking at health human resource strategies, innovative strategies.

This is a real plan. It is an alternative federal budget that actually has a vision for health care. It is a vision that is notably absent from Bill C-9 and it is not a bill that I can support.