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

[Daniel Paillé, Bloc, Hochelaga, QC]

Mr. Speaker, I found my colleague's comments very interesting. He spoke about the differences between the treatment of the automobile industry and Quebec's pulp and paper industry. I know that when I was running in the byelection, he was also very involved. I know that he said that if the government had treated the forestry industry fairly, it could have had a profound effect on very specific regions in Quebec. I would like to hear the member's comments on this.

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, I believe that my colleague from Hochelaga is talking about F.F. Soucy in Rivière-du-Loup, in the riding of Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, which has announced an impending closure.

When I was helping our candidate in the election, the people I met asked for loan guarantees in order to support this industry. This would support F.F. Soucy in Rivière-du-Loup as well as numerous businesses throughout Quebec. They were unanimous; there was a consensus on this. I am sure that the member for Hochelaga was hearing the same thing during his consultation tour.

The Quebec Conservative members—Conservative Quebec members would be more like it—say that market forces are to blame. If market forces can be a good excuse for pulp and paper and for forestry, they should be a good excuse for the automobile industry too. However, this was not the case for the automobile industry because the Conservative Party favours the traditional automobile and oil.

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I do ask your indulgence and the indulgence of members but in light of the terrible tragedy in Poland, I want to acknowledge the Poles in my constituency of Dartmouth—Cole Harbour. St. Anthony's Church in my riding has a Polish mass once a week. It is the home of St. Faustina Kowalska Polish Mission's Rev. Jan Grotkowski. Like other members, my heart goes out to the people of Poland and the people of Polish descent. We offer our prayers and our best wishes.

I am pleased to have the opportunity to speak to the budget. I have had the opportunity on other occasions to speak to an issue that matters a lot to me, which is the issue of poverty. I will not focus on that today but I take every opportunity I can to commend to members reading the Senate report, “In From the Margins: A Call to Action on Poverty, Housing and Homelessness”. I commend Senator Eggleton and Senator Segal for the work they did leading that group.

The human resources committee of the House of Commons is doing the same kind of work. I see a colleague of mine from B.C. who is on that committee. The work has gone on for a couple of years and I am very hopeful that the committee will be coming to a conclusion and issuing a report. This country needs to do more about poverty and the Government of Canada needs to follow the lead of the six provinces that have anti-poverty strategies. I do not think the government has done anywhere near enough for the people who are most in need in this constituency, and I hope we can do much more.

I also do not like the fact that we have frozen our overseas development assistance. I think that is a huge mistake. Canada is abdicating a place that was head in the world, which may not have been enough but which was better, which was a symbol of peace and democracy and also a symbol of support and partnership for developing countries.

The budget is very weak on the environment and has been criticized for its lack of action. After the embarrassment of Copenhagen, we need to do more.

I want to talk about three specific things, the first being on the research and innovation side with the Canadian Council on Learning not having its funding renewed. This is a travesty. The Canadian Council on Learning was set up in 2004 and was set up to help develop a coherent vision for education, particularly post-secondary education in Canada. It has done amazing work. It has received plaudits, not only in Canada but from outside agencies as well who have said that the work of the Canadian Council on Learning must on, and everybody assumed that it would go on. I think even the Government of Canada assumed that.

I have a copy of a letter here that the Minister of Human Resources and Skills Development sent in May 2009 to Robert Giroux, the chair of the board of directors of CCL, where she says, “I agree the Canadian Council on Learning has played a key role in supporting efforts in this area of knowledge and skills”. She also says, “I understand the Human Resources and Skills Development Canada officials began discussions with CCL in the summer of 2007 about stabilizing strategies for the organization”.

CCL has put out some fabulous information, which is what Canada needs. When we talk about research and innovation and about where Canada is, we have always been a very educated country but we are losing the edge that we had as we focus less on research and innovation and education and other countries focus more on those things.

In fact, CCL has produced, as part of its composite learning index, a chart that looks at a number of countries, Australia, EU countries, Germany, U.S., Switzerland, U.K., New Zealand and Canada, and looks at a number of areas where education can be measured. For example, has there been a major review in the last five years? Every country, yes, but Canada, no. Has there been system-wide goals and objectives? Every country, yes, but Canada, no. Is funding aligned with national priorities? Other countries, yes, but Canada, no. Are quality assurance agencies in place? Other countries, yes, but Canada, no. These are the things we need to have. We need to have accountability in education. We need to know where we are. We need surveillance. We need to know where we are in terms of having a national post-secondary education strategy, and we do not have that. It is my view, and I think the view of many others, that is just totally and completely foolish.

When people heard that the Canadian Council on Learning was being shut down or that the federal funding, which provides almost all of the funding, was being shut down, they could not believe it. Arati Sharma, the national director of CASA, said:

Without the research of groups such as the Canadian Council on Learning, Canada will continue to lack the knowledge needed to improve access, persistence and quality in our post-secondary institutions.

A Toronto Star editorial stated:

But without the council's work, it will be more difficult for us to know how we stack up as a nation.

Cary Brown, an associate professor at the University of Alberta, said that the loss of funding to an organization like CCL is shocking and short-sighted.

Even the Secretary-General of the OECD sent a letter to the Prime Minister of Canada saying that we need to keep CCL in place. That is how important this work has been.

Why would the government cancel the funding for CCL? It is not a huge amount of money. The best thing we could say about this decision is that it is stupid. The worst thing we could say about it is that it was a deliberate attempt to hide the inadequacies of the government. When we have a decision that the best thing we can say about is that it is stupid, it does not speak very highly of where we are going in post-secondary education, at least in coming to terms with where we need to be to compete with other nations.

We also had the example in this budget of the cancelling of the tax exemption for post-doctoral fellowships. This is something that not a lot of Canadians may understand but it will have a big impact on research and innovation in Canada.

The Minister of Finance, in defending that decision, had come up with the idea that the average salary of a post-doctoral fellowship student was $70,000 a year. In fact, the average salary is less $40,000 a year. It is nowhere near $70,000 a year. We have 6,000 post-docs in Canada, a large number of whom will be hit, in terms of taxation, to the tune of $4,000 or $5,000 a year. If we look at that, it does not make any sense. We are supposed to be encouraging research and innovation. In this move, we are telling post-doctoral fellowship students to go look at the United States where the tax regime is better and the funding is stronger. We do not have strong graduate or post-doctoral investments in Canada. We cannot afford to lose people who are doing this kind of work.

One specific post-doctoral student, David Davidson, has put on paper what he is actually earning and he talks about his four children. He must make some decisions now that will mean he may not be able to put his children into some of the programs that they were in. He needs to look at how they are being schooled. He even needs to look at how they are being fed. He also may possibly need to look at leaving Canada like other of his colleagues have done to do their work. This is a short-sighted decision that makes no sense.

At the very least, the government should have reviewed that decision. Probably some clarification would have been good because we do have some post-docs in Canada who were entitled to the exemption and some who were not getting it. However, it should not just come out in a budget and tell people, who we want in Canada and who in many ways epitomize the research and innovation agenda that this country is seeking to achieve, that it will penalize them by making decisions that may not be good for them and may not be good for Canada either. That is another decision that does not make any sense.

The budget also announced the extension of the enabling accessibility fund. At page 131 of the budget, it states:

Budget 2010 builds on the success of this program by extending the Fund and providing an additional $45 million over the next three years.

When the enabling accessibility fund was announced originally, with funding of $45 million, people looked at it and wanted to know what it was made of. It turned out that of that $45 million, $30 million would go to two projects. So, of all the needs in Canada, two projects were to get 66% of that funding. That never made any sense to people in the disability community. Right away they recognized that the program was tailored specifically for two projects, one of which would be in the Minister of Finance's riding for a project that I believe he and his wife were on the board of, and that I think his constituency assistant is still on the board of. The disability community did not think that made any sense.

The kicker to that is that the money was never even expended and the program never got off the ground. It may be that it is a wonderful facility, and I have no reason to believe that it is not, but we have facilities like that across the country. We need to ensure that any program that comes forward serves the needs of the people who are most marginalized in this country, and when we talk about poverty we talk about people with disabilities. They deserve, at the very least, to be treated to a standard of fairness and dignity that would allow them to have equal access across the country to the services provided by the Government of Canada.

We have seen decision after decision that does not make any sense, that does not take into account the needs of Canadians. For that reason, I do not like everything in the budget; there are many flaws. We do not believe that Canadians want to have an election, but Canadians deserve a lot better than this budget and deserve better than the current government.

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

Mr. Speaker, the member made some very valid points certainly about the lack of a national education strategy on the part of the government and how necessary it really is. But can he imagine for a moment what a Conservative majority government would be like? If a minority Conservative government is doing these kinds of things, dropping an 880-page omnibus bill with things like post office remailers in it, if it can get away with that and not even speak to its own 880-page bill, if it could do that in a minority situation, imagine what our future would be in a majority situation?

Could the member tell us what he thinks a majority Conservative government would do in the areas of research, innovation and a national education strategy? Where would the Conservatives take us over 4 or 10 years?

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Mr. Speaker, my colleague asks a very good question which is what would the government do if it had a majority? I am probably not as equipped to answer as someone like my daughter who is a specialist in horror movies. She might have a better idea of what this country would look like. She is a beautiful little girl, 13.5 years old, but she likes horror movies, so she might have seen something that would resemble a Conservative government because I do not think we would recognize Canada.

I do not pretend that my values represent all Canadians. One of the great things about this country is that people have different points of view, different understandings and values. What is a common thread of citizenship in this country is that we take care of those who need help. That is a fundamental responsibility of government. That is the area, taking care of those who are most vulnerable, those who need the government's help, where the government has fallen down the most. If there were a majority government, which I do not believe would happen, people would be divided into the haves and have-nots, the winners and the losers, and there would be a lot more losers than winners.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

Mr. Speaker, since the hon. member is so good at looking forward, I wonder if he could share with the House what the government would have looked like if there had been a coalition between the Liberals, the NDP and the Bloc Québécois, if we would have seen the billions of dollars in tax cuts eliminated as the NDP as stated, if we would have seen the stimulus removed, if we would have seen greenhouse gas emissions standards removed, if we would have seen the job promoting agenda of this government, the focus on jobs and economic growth, killed by such a coalition government. Could he explain for us what that type of coalition would have looked like either going back or moving forward? Since he is so good at looking into things that might happen, could he also explain how he squares the circle with respect to working with his very good friends in the NDP and coalition partners in the Bloc Québécois?

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I have friends in all parties and I have friends across the country who would share the concern of a Conservative majority government. But if we had formed a coalition, I think the country could have survived with better EI enhancements, better investments in education, better investments in the environment, and better investments in health care. Those are things that would have been positive.

I also believe that our leader made the right decision when he said we had just had an election in October 2008. There was a potential of a coalition government, which probably would have definitely given more progressive legislation than the current government. But on the other hand, our leader was wise to say that we are going to let the government go for a while.

We supported the budget last year. We did not like some of the things that were brought in last fall. We are not in love with this budget, but on the other hand we do not think that Canadians want an election. But a coalition government would have offered a lot of progressive policies that could have benefited Canada. That is probably the only time in the history of Canada that the leader of a political party in Canada turned down a guaranteed opportunity to be prime minister because his first view at that point in time was not for himself but for his country. That continues to be his view and continues to be the view of the Liberal Party of Canada, that people come first.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I am pleased to have an opportunity, brief as it is, to enter into the debate on Bill C-9, the budget implementation bill, this massive tome that I hold before me today. My only regret is that I will not have the time to adequately go through many of my strongly-held views on the inadequacy of this particular document.

Let me begin my remarks by sharing with the House the content of a speech that I once heard by a civil rights leader in the United States. He began by saying that if there are five children and only three pork chops, the solution is not to kill two of the children and neither is it the solution to divide those three pork chops into five equal pieces because then all of the children go to bed hungry and none of them have enough to eat.

The social democratic point of view, as well as my own, is to challenge the whole idea that there are only three pork chops and to challenge the whole myth or lie, as it were, that in the richest and most powerful civilization in the history of the world, we cannot provide for the basic needs of a family to not only survive but to flourish.

This introduces the theme, in the few minutes that I have today, that Bill C-9, the budget implementation bill, fails Canadians in the most fundamental ways because a budget implementation bill is an opportunity for the redistribution of wealth in this country and speaks volumes about the priorities of the ruling party that crafted the budget and the implementation bill.

I am trying not to overstate things, but there has been an undeniable and recognized trend in recent years of the shift of wealth from the middle and working classes to a smaller and smaller elite of the very wealthy. This budget document does nothing to ameliorate this shift of wealth, what I argue is the redistribution of wealth, against the best interests of ordinary Canadians. In fact, it exacerbates the problem. It compounds that trend.

I will perhaps only have time to dwell on what I believe is an obvious argument to make my case. Within this document is found the argument that dealing with poverty or bringing seniors out of poverty through dealing with inadequate pensions, et cetera, is somehow a structural deficit and, therefore, the government cannot go there. Yet, giving permanent corporate tax cuts to the extent of $15 billion is viewed as a necessary investment in the economy.

How did we ever come to such a perverse view of the distribution of wealth in this country that lifting seniors out of poverty is viewed as a structural deficit that we cannot allow ourselves to enter into and yet, in fact, going even further, borrowing money to give permanent tax cuts to corporations is viewed as an investment in the economy? Nowhere can anyone find a single study that proves beyond doubt that giving corporate tax cuts leads to job creation. It simply does not exist. I challenge and defy people to show me the direct evidence that giving yet another corporate tax cut will create jobs in Canada and can, therefore, be viewed as an investment.

This is all an elaborate hoax, in my view. In the absence of any evidence to the contrary, I accuse the neo-conservative mindset of perpetrating an elaborate, deliberate hoax on the Canadian people to further what I believe is a nonsensical argument that corporate tax cuts will produce the results claimed. It is a leap of faith that is not warranted. It was not even warranted when there was a budgetary surplus and now we have to borrow money to give another $15 billion away.

I will give one example of how wrong-headed this is. It is a point made by the leader of my party, the member for Toronto—Danforth, to our recent NDP convention in Manitoba. He and our party costed out what it would cost to lift every Canadian senior citizen up to the poverty line. There are approximately 450,000 Canadian seniors living below the poverty line. The cost of elevating every one of those seniors just to the poverty line would be $700 million. That is less than one-fifteenth of the corporate tax cuts that are inherent within this budget.

The leader of the NDP went to the Prime Minister with this very argument, suggesting the government put the brakes on these tax cuts for a year or two. Given that we are in an economic recession and we want to get money out there quickly, one way that we can stimulate the economy and achieve a secondary objective as well is to put more money in the hands of poor seniors. They would spend the money immediately and they would spend it in the right places, in the local economy. It would be in circulation the very next day at a cost of $700 million, not an insignificant amount of money but it pales in comparison to the $15 billion that the government contemplates giving in corporate tax cuts.

That is how wrong-headed it is, and one of the reasons that so many of these Conservative absurdities actually become government policy is the intellectual veneer that is applied to them by right-wing think-tanks that, in fact, are bought and paid for by the same people whose special interests are being served by this reasoning and this logic.

Again, I challenge the reasoning. I challenge the logic behind this spending. I am frustrated in my tone perhaps, but somebody has to sound the alarm. Somebody has to blow the whistle on this trend.

I saw a bumper sticker the other day on a car that said, “At least the war on the middle class is going well”. In fact, working people, or those from the middle class on down in the economic spectrum, are feeling the pinch. It is not their imagination. Canadians should be comforted to know that it is not their imagination that it is harder and harder to make ends meet. It is true, and this is the predictable consequence of economic policies and economic trends that, in fact, leave less money in the pockets, transferring this wealth, once again concentrating this wealth, in the hands of people who do not even necessarily have the best interests of the country at heart, who do not even reinvest in Canada.

When given the opportunity, again I challenge anyone to show me the empirical evidence that these tax cuts create jobs in Canada. More often than not, that money is transferred to these corporations in the form of tax cuts and there are no strings attached. They could invest in an offshore plant. They could actually lay off 1,000 workers in the same year that we are giving them money. The irony is that these tax cuts are not going to the very businesses that do need some help and support. Because of its nature as an income tax break, it is only businesses that are showing profits that are benefiting from these particular tax breaks.

It is just wrong-headed and the leader of my party was right to appeal to the Prime Minister, to urge him, even if he cannot see fit to cancel this round of even further corporate tax cuts, to delay them or cut them in half, reduce them, use some of that money for something more strategic that would, in fact, elevate the living standards of the people who gave us their confidence, who sent us here to advocate on their behalf.

I was shocked to learn that 450,000 seniors are living below the poverty line in this country. I believe that if we had used $700 million to address their specific needs, it would have put more money into circulation and it would have been the moral thing to do.

Let me perhaps spend the last minute that I have to comment on the last article of this 450-some-odd page tome, which is the final straw in the wholesale theft of the $57 billion surplus of the EI fund.

I have been speaking on this for the better part of 10 years. When someone deducts money from workers' paycheques for a specific purpose and then uses it for something entirely different and denies them the benefits they were guaranteed when it was taken off their cheques, that is wholesale fraud. It is not only misleading; it is fundamentally wrong. That is $57 billion that would have given us the fiscal capacity to address our social programs. It has been eliminated and gobbled up and used for different things—

[The Deputy Speaker, Conservative, Andrew Scheer]

Questions and comments. The hon. member for Elmwood—Transcona.

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

Mr. Speaker, I have been looking forward to asking Conservative government members questions, but we cannot find one who will speak and support this 880-page omnibus bill, the budget implementation bill. I would like to ask if one of the government members would speak about the $15.9 billion profit that the top five banks in Canada made last year and the corporate salaries that those banks are paying their presidents.

The Bank of Nova Scotia president was paid $9.7 million. The Bank of Montreal president was paid $7.4 million. The Toronto Dominion Bank president got $10.4 million. The CIBC president got $6.2 million. This was at a time when we were supposedly in a recession. Bank profits are at record levels. The government's answer is to reduce the corporate tax rate even more.

Bank president salaries are at record highs in a recession. What is the government's answer? Its answer is to do nothing. In fact, the G7 and G20 have come out with guidelines on corporate salaries. Has the government implemented those? Not at all. I was speaking to a member of the financial community the other day and he said he thought it very unlikely that the government would ever support those guidelines, because the banks will not let it.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, this is an issue that makes my blood boil. Corporate governance never used to be considered a blue-collar issue. I have heard people say that Canada did not have to bail out its banks because they are in good shape. In fact, we assumed $75 billion worth of risk from our banks to give them an easier ride through this economic downturn.

At the same time, these bank presidents have the nerve and gall to reward themselves with big, fat bonuses. I guess they should reward themselves, because they duped the government into underwriting all their risk so they can take all the profit. It is as if they like to socialize the losses and privatize the gains. They are socialists in one way. They want to share all their risk and losses. However, when it comes to their profits and gains, they are privateers again.

One of the most satisfying things I have experienced as a member of Parliament was when I crashed the shareholders' meetings of a bunch of the big banks. I moved a bunch of motions to limit the CEO salaries of John Cleghorn, Matthew Barrett and all these guys to 20 times that of the average worker. I was seconded by a wonderful guy from Quebec, Yves Michaud, who was seconding all of these motions.

One other motion we moved that I think the member for Elmwood—Transcona would like was for gender parity on the board of directors of every Canadian bank. The vote on that was the exact same as the Quebec referendum, 49.4% to 50.6%. We almost achieved gender parity on the board of directors of the Royal Bank of Canada through shareholder activism. People are going to have to stand up on their hind legs and demand that banks be more accountable to people, especially when they get away like bandits with their CEO salaries.

[The Deputy Speaker, Conservative, Andrew Scheer]

The hon. member for Rosemont—La Petite-Patrie has about 30 seconds left.

[Bernard Bigras, Bloc, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I listened carefully to the speech given by my colleague across the floor.

From my perspective, this government has not taken any action to stimulate Canada's economy, and more importantly, it has not taken any action to create a greener and more sustainable economy.

This morning I read that, in the United States, investments in clean technology jumped by 29% in the first quarter of 2010. That is 83% higher than the same period last year.

In order to “decarbonize” our economy and make it greener, should the government not have drawn inspiration from the Obama administration's budget from a few months ago and invested more per capita in energy efficiency and sustainable development?

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I would like to thank my colleague from the Bloc for a very poignant question.

The economic stimulus money inherent in this budget is a missed opportunity. We could have done something truly transformative with that money, like the Obama administration has done, to shift us from the carbon economy to a green economy rather than filling potholes and building more highways to accommodate more cars.

We could have spent that money on the work that needs to be done to save the planet. That is the work that could have been done to get us through the economic downturn.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, we are discussing the implementation of a budget that never would have passed if the Liberals had not been so complicit or passive. Some showed up in the House to vote against the budget, as did the hon. member for Madawaska—Restigouche in New Brunswick, but there were not enough of them. That was a form of complicity, which is why we are here today talking about the budget implementation bill.

Before I get to the heart of the matter, I must say, I am concerned about several current issues, particularly what is happening in the crab industry in Gaspésie—Îles-de-la-Madeleine, the riding I represent.

Earlier there was discussion about employment insurance measures that are missing from the budget. If the budget had truly met the needs of the public, the impact of the crab fishery crisis on the people of Gaspésie—Îles-de-la-Madeleine would not have been as great. They would have felt supported by a government that has their best interests at heart during such a difficult time. Some 1,000 jobs in Gaspésie—Îles-de-la-Madeleine and 2,500 jobs in New Brunswick are at stake.

To give hon. members an idea of what that means, 1,000 jobs in Gaspésie—Îles-de-la-Madeleine is equivalent to roughly 20,000 jobs in Montreal and even more in Toronto. If it were a matter of losing several thousand jobs in Montreal, Toronto or Vancouver, there would probably be an emergency debate held today.

We have to take the time think about these people who are in difficulty as a result of mismanagement by the Department of Fisheries and Oceans, which has reduced the crab quota by 63% this year. Such a reduction will have an impact: less money will circulate in the economy.

We heard today that Michel Chartrand died. I had the chance to meet and get to know Mr. Chartrand. If he were to deliver a speech today, his language would undoubtedly be quite colourful. If I were to describe the budget using the names of symbolic objects generally found in a church, I would be called to order. As hon. members know, tabernacles, chalices and hosts are found in a church.

In addition to his rather colourful use of language, Mr. Chartrand was a passionate man. He defended people in difficulty, like the workers in the crab fishery who are in crisis right now. That is why it is important to pay tribute to him today.

I know that the people in my party will be paying tribute to him later on during question period and members' statements, but I think it is important to take the time to acknowledge him right now.

In any case, we have a budget and an implementation bill. We are examining some aspects of the budget implementation bill, but we must also look at items that, unfortunately, are not mentioned in the budget, especially tax havens and employment insurance.

I would like to talk about tax havens. What does this budget actually do?

It ignores the fact that, if we changed the laissez-faire approach to tax havens, we could stop the budget hemorrhaging, which will fatten companies and individuals who no longer know what to do with their money. They go to the Bahamas or elsewhere and put their money in the banks' vaults to avoid paying Canadian or Quebec taxes. That hurts because this is not done by just a few.

I was listening to some supposedly distinguished economists who have done major studies and concluded that taxing the rich will not change much. Excuse me, but it will yield many millions, even billions. And remember, one billion is 1,000 million. We could recover billions of dollars if we truly tackled the problem of tax havens and tax loopholes. That is what should be highlighted and considered when presenting a budget. In fact, measures have been introduced but there are other measures that have been forgotten, relegated, ignored, clearly set aside, and that could help to balance the budget, even just a little, and result in interventions that more closely meet needs.

Speaking of needs, I wish to linger a little longer on the employment insurance issue. It is frightful what is going on there. It started some time ago with the Liberals and the Conservatives of the period, when they used to call themselves Progressive Conservatives.

On this issue I think in particular of Gaétan Cousineau, of the Mouvement Action Chômage Pabok. This is a person who has always been dedicated to the cause of employment insurance and the injustices in that field. I remember working with him and others when I was waging the employment insurance battle in community and union organizations.

That battle continues for me as a member, but at the same time, there have been what one might call “mini-measures” on employment insurance announced right and left by the Conservative government and by the previous Liberal government. I say “mini-measures” because one’s final impression, if I may be permitted some colourful language, is that of a drop of justice in an ocean of injustice. That is really what is happening.

The regions of Gaspé and Îles-de-la-Madeleine, like other regions in Quebec and Canada, have had to absorb cuts and to suffer them at the same time, for those cuts have impacts. When this sort of decision is made to cut employment insurance, to slash benefits, to arrange that fewer EI benefits are provided or that eligibility is made more difficult, the money is recovered somewhere, but there is an impact that can be felt across many regions.

Such an impact affects individuals as well as communities. Yes, it can affect individuals. I heard someone talk about people who earned their living at the minimum wage. Consider, for example, a wage of $9 an hour for someone in the tourism industry who has to work as a cleaning lady,or in a restaurant or elsewhere. These people work split shifts for the minimum wage. This is not a job where you work 40 hours a week and everything is fine. On the contrary, there are situations where people have to work 20 hours during the week. Other times it is 35 hours or 60 hours a week, depending on what is happening in the tourism industry. These people must be available to work seven days a week during tourist season. That is why it is important to consider this issue.