Jobs and Economic Growth Act

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

This bill is from the 40th Parliament, 3rd session, which ended in March 2011.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-9s:

C-9 (2021) Law An Act to amend the Judges Act
C-9 (2020) Law An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy)
C-9 (2020) An Act to amend the Chemical Weapons Convention Implementation Act
C-9 (2016) Law Appropriation Act No. 1, 2016-17
C-9 (2013) Law First Nations Elections Act
C-9 (2011) Law Appropriation Act No. 2, 2011-12

Votes

June 8, 2010 Passed That the Bill be now read a third time and do pass.
June 7, 2010 Passed That Bill C-9, An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures, be concurred in at report stage.
June 7, 2010 Failed That Bill C-9 be amended by deleting Clause 2137.
June 7, 2010 Failed That Bill C-9 be amended by deleting Clause 1885.
June 7, 2010 Failed That Bill C-9 be amended by deleting Clause 2185.
June 7, 2010 Failed That Bill C-9 be amended by deleting Clause 2152.
June 7, 2010 Failed That Bill C-9 be amended by deleting Clause 2149.
June 7, 2010 Failed That Bill C-9 be amended by deleting Clause 96.
June 3, 2010 Passed That, in relation to Bill C-9, An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
April 19, 2010 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 5:50 p.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, my colleague had quite a lot of substance in her speech. I just want to talk about two issues.

She spoke about the social determinants of health. Some of the new neuroscience is very compelling in terms of looking at how a child's brain develops, particularly in the first five years going back to the prenatal stage.

I wonder whether or not my colleague feels that a national headstart early learning program would be one of the most powerful things the federal government could do by working with the provinces, and enabling parents and children to have knowledge about the importance of literacy, proper nutrition, proper parenting, and physical activity.

I will reference the work by Dr. Mark Tremblay from Montreal, who did some groundwork research in terms of showing the decline of our children's health and establishing that this is the first generation of children who will actually have a shorter lifespan than their parents.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 5:50 p.m.

NDP

Megan Leslie NDP Halifax, NS

Mr. Speaker, yes, absolutely.

I was so lucky in that during the election campaign I was able to carve out some time to attend a conference and listen to Dr. Charles Coffey talk specifically about this topic.

The age group of zero to five years is exactly when we need to be involved. That is when children's bodies and brains are growing at an incredible rate and they have such an opportunity to learn. They need to be given good, nutritious food in order to grow up to become healthy adults. We need to work with parents. Frankly I do not care what form that kind of program takes, but it is critical. If we expect to have a healthy, vibrant and productive workforce, we need to get involved when kids are in their early years.

I am absolutely in agreement with my colleague.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 5:50 p.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I was very interested in what the member had to say regarding this file. I would like to ask her about electronic health records.

She probably knows that the United States is light years ahead of us in that area. It has certainly been developing electronic health record systems for the last 10 or 15 years now, and Canada is falling behind.

Another area is the idea of a common computer system where a hospital program is developed once and it is replicated across the country. The Canadian government, since the Paul Martin days, has been approached on that subject and has not done anything about it. For example, there is an SAP program in the member's province of Nova Scotia. The city of Halifax is on SAP. I believe the government is on SAP and the hospitals are on SAP as well. In Manitoba the city of Winnipeg headed off on its own with a different system.

Has the member spent any time looking at this area and what are her observations about getting systems online?

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 5:55 p.m.

NDP

Megan Leslie NDP Halifax, NS

Mr. Speaker, the member for Elmwood—Transcona has brought up a really good point. This is exactly the kind of role the federal government could play. There are many things that fall under provincial jurisdiction, but the role of the federal government is to provide leadership. The federal government also has the power of taxation; let us be honest.

We are falling behind when it comes to electronic records. We are falling behind when it comes to housing. We are falling behind when it comes to all kinds of things. We have a government that refuses to show leadership and say, “We are going to convene a meeting of federal, provincial, territorial and first nations representatives. We are going to lead and we will carve off money to help bring this forward”.

With respect to first nations, we do not have a TB strategy. We do not have a national housing strategy. There are so many areas in which we need that kind of federal leadership. Where is it? Why are we not moving forward on electronic records, especially when we consider that, again back to the money issue, it could save us money? More importantly, it could save lives.

This is one of the best ways to make sure that we get accurate, up to date information about a person's health status. Why are we not implementing these innovative measures?

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 5:55 p.m.

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I am pleased to speak to the amendments that have been proposed by the New Democrats. I specifically want to acknowledge the member for Acadie—Bathurst, the member for Edmonton—Strathcona and the member for Hamilton Mountain, who proposed a series of amendments that would delete some of the more egregious clauses of the budget implementation bill.

Those amendments have been divided into two separate groups. Today we are specifically dealing with the amendments in Group No. 1 with regard to deleting the clauses pertaining to the airport security tax, changes to the easing of the rules for environmental assessments and changes to the EI fund. In the short 10 minutes that I have, I am going to deal with two of those areas.

Listeners might wonder why we are debating deletions to the budget implementation bill. This legislation is an omnibus bill that is over 800 pages long. Buried in the bill are a number of items that normally would be stand-alone legislation. They would normally be bills that would be introduced in the House of Commons. They would have a fulsome debate here in the House. If they passed second reading, they would be referred to a parliamentary standing committee where members of the standing committees would call witnesses and examine the legislation in detail.

Instead, the government has chosen to cram some significant changes into an omnibus bill. That is normally not the way Canadians would expect those legislative agendas to be dealt with. They would expect the democratic process of a full parliamentary debate, that due diligence to ensure there would be no unintended consequences.

The New Democrats have been forced to attempt to amend the budget implementation bill. That is the only avenue open to us. Other members have pointed out for example that the part that deals with Canada Post has been introduced as legislation in the House at least twice before. The government had little hope of ramming that legislation through, so instead, it has buried it in a budget implementation bill and is calling it a matter of confidence.

It flies in the face of what we would consider to be a democratic process. I would urge all opposition members to support our amendments to delete the most egregious parts of the budget implementation bill.

I want to turn to two of these deletions.

What the government has done is essentially enshrined the theft of $57 billion from the employment insurance fund. The Conservatives are continuing along the lines of what the Liberals did previously. They are using the premiums that workers and their employers have paid into the EI fund to pay down the deficit.

When workers and employers paid that money, they fully expected it to support the employment insurance fund but also to support other training initiatives. In these economic times, that would seem to be a reasonable use of that money. By including this in the budget implementation bill, the government is admitting that it has no intention of honouring those commitments to workers and their employers.

Let me tell the House why that is important. An article put out by the Citizens for Public Justice, entitled “Bearing the Brunt: How the 2008-2009 Recession Created Poverty for Canadian Families”, states:

The recession revealed the inadequacy of the EI as a social safety net. Despite a rise in EI coverage, almost half of the unemployed did not receive benefits.

Canadians who did receive EI benefits were living in poverty unless they had other household sources of income.

As many as 500,000 Canadians have exhausted their EI benefits without finding new work.

Many of the Canadian men and women who have exhausted their EI benefits are in my own riding. Forestry workers have faced shutdowns in that industry off and on for the last four or five years and now. They have exhausted their EI benefits and many of them are now facing going on welfare.

The article also speaks about employment and income:

The recession increased the rate of precarious work, as part-time jobs replaced full-time jobs, and temporary jobs replaced permanent jobs.

Growth in average earnings for part-time workers did not keep pace with inflation.

Recessions increase the income gap between high income and low income Canadians. The poorest Canadians lose more of their income during a recession, and do not recover at the same rate between recessions.

Those numbers are being borne out. We often hear government members talk about the jobs they have created, but they fail to say that many of those jobs are part-time seasonal contract work and they simply cannot give a family a living wage. They cannot allow families to send their kids to school. In a country as rich as ours, it is absolutely shameful.

The Canadian Labour Congress made a statement to the House of Commons Standing Committee on Finance. The Canadian Labour Congress, the New Democrats and other organizations in this country have some meaningful proposals on employment insurance reform. This includes uniform entrance requirements across the country of 360 hours so that more workers will qualify. It also looks at evening out the unemployment regions. I have talked about this in the House before. My region is tied to the Vancouver labour market. Despite the fact that unemployment is much higher in my area than it is in Vancouver, workers in my area exhaust their benefits far sooner than they should given the rate of unemployment. That simply should not happen.

The Canadian Labour Congress suggests that those differing rates of gaining access to benefits should be evened out. There should be longer benefit periods of at least 50 weeks in all regions so that fewer unemployed workers exhaust their claims. It also calls for higher benefit rates. Given that there was $57 billion in the EI fund, it seems reasonable to make sure that workers in these tough times have access to that money.

I want to turn briefly to the changes to the regulations around the environmental assessment process. Today is the 20th anniversary of the Sparrow decision which was handed down by the Supreme Court of Canada. It set the foundation for treaty negotiations in British Columbia. Today, Sophie Pierre, the chief commissioner of the B.C. Treaty Commission was quoted in a news article as saying, “It put an end to 130 years of denial of aboriginal rights by the B.C. government”. The article states:

The case went all the way to the Supreme Court, which ruled on May 31, 1990 that aboriginal rights exist and were not extinguished by federal fisheries regulations....“We recognize that litigation has informed treaty negotiations and continues to do so. But a government-to-government relationship, with all its complexities must be negotiated,” said Pierre. “We understand that First Nations may feel forced to take legal action to protect interests they do not see being addressed at the treaty table. That's a delicate balance. All governments must recognize that relationships cannot be built in court.”

One might wonder why I bring that up in the context of the easing of environmental regulations. I predict that with the easing of environmental regulations, unless the government upholds the honour of the Crown and makes sure that consultation is in place when these major projects come through, we are going to see more court cases. Sadly, the Sparrow decision is an indicator of how many years it took the first nations to get some justice. There are aboriginal groups who have written to the Prime Minister warning him not to weaken those environmental laws.

On May 26, Duncan's First Nation took its case to the Supreme Court of Canada and the Hague. The case concerns the tar sands and the impact that project is having on first nations in Alberta. It is another example of even when there are environmental regulations in place, first nations are still forced to go to the courts, even internationally, to have their cases heard and their rights respected.

It would be lovely if the government would support these amendments, but I would urge the opposition parties to support our proposed amendments and delete these clauses from the budget implementation bill.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:05 p.m.

Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Mr. Speaker, I listened to my colleague's comments and I commend her on her speech. I was very pleased that she referenced poverty and specifically the recent report from Citizens for Public Justice which confirms the belief that I and her colleague from Sault Ste. Marie and many others have that the recession has been taking a toll.

The government has talked about reductions in child poverty and poverty, but both poverty and child poverty have gone up 2.5% since the beginning of the recession. It is very serious and the government has not allowed the social infrastructure to be prepared for this.

I want to ask the member if she shares my concern. The poor in Canada received very little of the stimulus benefit. It went to higher income groups instead of to those who need it. The small changes made to EI and even social housing are temporary and are going to run out. Those who need help the most are going to be hurt the most. I wonder if the member shares that view and if she has any ideas about how we could remedy that.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:05 p.m.

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, Citizens for Public Justice, the Canadian Centre for Policy Alternatives and many other organizations have rightly identified the fact that there is a growing income gap in our country. A recent report on first nations noted how first nations people were simply largely left out of the whole infrastructure's economic stimulus package.

We need a comprehensive approach. We need to ensure that the social safety net of employment insurance is in place so working families have access to that money in tough economic times and that it is an adequate amount of money. People cannot live or support a family on approximately $300 a week. That is what the average EI benefit is right now.

We need to ensure that we have affordable housing available. We need to ensure that we are supporting early learning and child care. The list goes on and on. Those are investments in our economy.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:05 p.m.

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, we have been debating these amendments to the budget bill for quite some time now, both in committee and now at report stage. It seems to me there are two separate types of issues here. One is a process and the other one is substantive. Substantively, there is a lot at stake, and we have talked about that at great length, whether it is the privatization of Canada Post, the gutting of environmental assessments, the fire sale of AECL, the legalized theft of $57 billion from the EI fund. All those issues are of grave concern to Canadians. However, what is equally of concern to them is they do not have an opportunity to participate in this process because all of these issues have been rolled into this omnibus budget bill.

I recognize we are at report stage, but surely it is not too late to sever those six critical areas from the budget bill, to deal with the budget bill on its own and to deal with these six individual items, if we have to, as stand-alone bills in the House. That would only require the Liberals to vote with us on this. With the Liberals, the Bloc and us, we could give Canadians that opportunity.

First, does the member for Nanaimo—Cowichan see that opportunity as a real one? Second, does she share my optimism that this is something we could do and should do?

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:10 p.m.

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, the member for Hamilton Mountain was also a mover of some of the amendments that we proposed.

If the Conservative government had faith that its suggestions for changes around AECL, employment insurance, easing of environmental rules, Canada Post and the airport tax, it would put those forward in separate legislation. If the government had confidence that Canadians supported that, it would put it forward and allow that kind of debate to happen. If the Conservative had confidence that they were on the right track, they would not be afraid to have a fulsome debate at committee and call in witnesses.

This is an opportunity for the opposition members in the House to demonstrate that they do not agree with where the Conservative government is going and for all members to be present in the House to support the NDP amendments.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:10 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I appreciate the opportunity to continue to challenge the government regarding its approach to the difficult times we individual families and workers are facing. At the outset, I am alarmed at what seems to be a lack of understanding by the government to what is happening out there, the real challenges we are facing in the economy both nationally and globally.

I suppose it should not surprise me. When the government introduced its action plan back in November of 2008, an action plan that almost brought the House down and might have led to a better, more progressive government holding fort in the country, it did not understand either the depth and breadth of the recession we were in and that it had to deal with, so it brought nothing forward. It prorogued the House, as it has a habit of doing, and then brought forward a plan in January of the following year.

I am surprised that Conservatives have not learned anything. They are not doing as so many other countries are doing, which is looking realistically at what is going on in the economy and in their communities.

Let us look for a second at what is happening in the world. We are now looking at the kind of debt that we have not seen, I would guess, probably for centuries in this world. Every country is struggling with what has happened in the last year and a half, trying to come to terms with it and put in place programs and plans to restructure their economies. They are looking at some pretty significant and frightening levels of debt.

For example, this year Portugal is facing an equivalent of 8.8% of its GDP in debt. For Spain, the figure is 10.4%. In Ireland, the Celtic Tiger many will remember, is looking at a debt of 12.2% of GDP. These are staggering numbers. Yet, because of the global nature of the way the economy works these days and that we have bought into in such a significant way, we are affected and will be affected by this.

If there is in fact, as some economists are predicting, a second dip to this recession, we will be affected. We will have to take action. I wonder, because I do not see it, if Bill C-9 situates us as a country to deal with this very difficult reality. When we put that together with what has happened in our communities and to the families and workers we represent, I would challenge the government to rethink what is before us and the proposals it has put forward.

For example, we are in a time when we should be restructuring and reworking our own domestic economy, not talking about free trade as if nothing happened last year or the year before, as if it is just business as usual. In fact, we should be going back to our communities, going back to that which helped us to become one of the strongest countries in the world and, I would suggest, has situated us to deal with the recession in a more stable and better way than many other jurisdictions have dealt with it.

Believe it or not, some Canadians are running out of EI, if they qualified in the first place. Some of those people are getting work, but it is work at much lower wages, so their standard of living and their ability to look after themselves and their families is in jeopardy. People who have already run out of EI are having to resort to living on welfare.

When the stimulus runs out, as it will in a big hurry, as is indicated in the budget, even the few jobs that now exist, which are paying less than the industrial jobs people had before the recession, will also be gone and we will have more people on unemployment.

I will go back to the point I made earlier. As countries around the world were running up serious debt, many Canadians had no choice but to deal with our very difficult economy. Many are facing the challenges of paying bills, paying rent and feeding their children. Some have gone into debt in a major way. As they have struggled with the difficult challenges, many have maxed out their credit cards and their lines of credit and have used up every bit of credit that is available to them. Now they are at a point where they have to deal with that.

I remember back in the middle of the recession attending a meeting in Sault Ste. Marie. An economist from Export Canada talked about the nature of the recession coming at us. He said that it was like a Tsunami, it would come in waves. He described three of the waves that had already hit, and we all identified with that. However, the wave that concerns me most is the one we are still waiting for, and in some instances it has already hit.

Those folks who have worked hard all their lives and have taken advantage of opportunities in their communities to put bread on the table and earn a decent living have maxed out their credit. Now they will have to default on that. Imagine what will happen when the stimulus money runs out, the jobs it created disappear and the economy still has not recovered and hundreds of thousands of people are unable to find jobs and start to default on their loans and credit. What do we do then? How do we respond to that? How do we help those folks? How do we restructure the financial world institutions that will be impacted in such a major way? It is the backing up of a system that I think we will have a very difficult time managing.

On a global level, countries will find it very difficult to deal with the rising amount of debt, together with much of our industry that is struggling at the moment with massive debt. Individuals and families will no longer be able to deal with the debt they have run up in order to keep body and soul together.

Short of Bill C-9, and I do not see anything in it that indicates any preparedness or even understanding of that reality coming at us, what does the government propose to do when that next wave, that next Tsunami hits, and we find ourselves at the beginning of what some economists have predicted that second dip?

I hope we will hear from the government at some point over the next few days just what its plans are.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:20 p.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, I would like to ask my colleague a couple of simple questions on the issue of the government's lack of response to articulate a debt reduction strategy that is credible. The government said that it would cut $17 billion over five years. To me that is voodoo economics in the face of a $56 billion deficit.

Does my colleague accept the government's position that $17 billion over five years will bring us back to a balanced budget, or does he feel the situation is much worse than that and the government will face structural deficit with its inability to deal more effectively with cutting more and elevating taxes a bit in a responsible way? That needs to be done to get us back to balanced budgets.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:20 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, at the outset I will confess that I am not an economist, nor am I an expert in financial matters. However, I do understand, from my own experience and from listening to my constituents, the difficulty that they are facing. All of them are heading toward a structural deficit in their life that they have never seen before.

I would suggest that the government needs to get real about what it is that we are facing. There are some things that it could do. We are inviting the Liberal Party caucus members to join us in challenging the government in away that does not allow it to take advantage of the road we are on.

I believe we do have some vehicles that we could use to manage this debt and deficit and to restructure our economy in Canada that would be way better than what is being proposed in Bill C-9.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:20 p.m.

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I have had the privilege of working in one capacity or another with the member for Sault Ste. Marie for almost 20 years. In fact, on June 6 he will be coming up to his 20th anniversary in public service.

In all of those years, I can honestly say that I have never met a better advocate for trying to create an anti-poverty strategy, first in Ontario and now, of course, in the federal House. Knowing that record and knowing that deep personal commitment, I can only imagine how deeply disappointed the member for Sault Ste. Marie must be with this federal budget.

I will just focus on one part of it and that is the $57 billion theft from the EI fund. For so many Canadians, EI is the very last defence, the very last hope, the very last income support that keeps them from falling into poverty. We know that 880,000 Canadians are about to run out of EI and the government is not helping those Canadians, even though they lost their jobs through no fault of their own.

It is not because the government does not have the money. There was a $57 billion surplus in the EI fund and yet the government does not allocate a dime of that money to helping people who are losing their jobs. It is the workers' money. It was contributed by them and their employers. It is not the government's money.

I wonder if the member could comment about what an integral part of any poverty prevention strategy an effective EI program is in this country?

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:25 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I could not agree with the member from Hamilton Mountain more in that she is absolutely right.

We have just done a two-year study of poverty at the HUMA committee. What we heard over and over again from people across the country was that they needed a number of things, such as a national housing program and a national child care program, but they also needed EI reform. We could do this immediately. We do not need to wait. This could be done tomorrow.

The government could have the support of everybody on this side of the House tomorrow to reform the EI system so that it worked better for people, so more people qualified, so that when they qualified they got more of the money they needed to pay those bills and so they could stay on EI longer, until the economy returns or they get that job that will help them pay the rent and feed their family again.

EI has to be a central part of any anti-poverty strategy the federal government takes on. We encourage the government to take hold of that report when we table it in this House, run with it and do something good for those who are most at risk and marginalized in our communities.

Jobs and Economic Growth ActGovernment Orders

May 31st, 2010 / 6:25 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I am proud to speak to the report stage of Bill C-9, the budget implementation act. This act may more properly be called the Godzilla act because it is a monster act.

The government has taken a budget implementation act and it has thrown in everything but the kitchen sink to make this monstrous, multi-headed act that it is now trying to bring through the House. Fortunately, in this corner of the House we in the NDP do not stand for bullying and we do not stand for these kinds of incredibly dishonest tactics. We are fighting this and bringing forward amendments that will split things off so that we do not have the Godzilla act in front of us.

As members know, Godzilla is a mythical creature in Japanese movies. At least we thought he was mythical until we saw the Prime Minister at work. Godzilla used to run roughshod over people. These report stage amendments address that running roughshod over people. Coupled in Bill C-9 is the removal of $57 billion in employment insurance moneys that are properly owed to the unemployed workers of this country, the Canadians who paid into the fund.

The government is taking out the EI surplus and basically legalizing that theft. One has to wonder what the Conservatives did to replace that. They gave us the HST. In British Columbia, a record number of British Columbians are signing the referendum initiative. That is something that I believe British Columbians and many people in Ontario simply do not accept.

The other thing that Godzilla did was to be very destructive of institutions and buildings. What we see in the Godzilla act of 2010, Bill C-9, are things like Canada Post and the AECL offered up. They are fine Canadian institutions that are being slowly destroyed by the Conservative government. However, the one thing I should say in Godzilla's defence is that he came out of the sea because of the toxic wastes that were being dumped in the ocean. In this case, I think Godzilla was much more environmentally inclined than the government.

In this Godzilla act, Bill C-9, we see environmental assessment being gutted. That is fundamentally important. People around the world are focused on what is happening in the Gulf of Mexico. We have countries moving forward and saying that we have to tighten our environmental policies and the procedures to ensure this kind of thing never happens again.

What do the Conservatives do? They weaken the environmental assessment process, not strengthen it, in reaction to one of the greatest environmental and ecological catastrophes in human history. They are moving to phase out the kind of important environmental assessments that protect our environment and Canadians. It is absolutely ridiculous.

We are bringing these report stage amendments forward because this Godzilla act needs to be pulled apart so that Parliament can vote in an appropriate fashion on each and every aspect of this Conservative hidden plan that it has tried to introduce with this monster legislation.

I know I will be speaking more on this later in the week but I will add that the idea that this HST would be imposed when British Columbians are saying no and up the taxes that are paid under the softwood lumber sellout is particularly reprehensible to British Columbians—