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.

[The Chair, Conservative, James Rajotte]

Ms. Duncan, just to be clear, we're having five-minute rounds with officials and we're reviewing part 20 of Bill C-9. We will hopefully have witnesses on this section sometime next week.

[Thomas Mulcair, NDP, Outremont, QC]

Thank you, Mr. Chairman.

I want to go back to the last point we were discussing. I was asking Mr. Leboeuf whether Part 20 of Bill C-9 wouldn't have the result, in concrete terms, of weakening environmental assessment as a whole in Canada. I don't want to put words in his mouth, but I'm trying to summarize what I understood from his answer.

You answered that you were doing that. As a legislator, I'm taking a cold look at this. I don't doubt your competence: I'm asking you what the effect of Part 20 is as a whole. Is the position that the exclusions provided for and the screening done in a different manner in no way represent a weakening, in any regard whatever, consistent with your opinion as a professional?

[Thomas Mulcair, NDP, Outremont, QC]

To the part we're studying, Part 20 of Bill C-9.

[The Chair, Conservative, James Rajotte]

I call the meeting to order. This is the 16th meeting of the Standing Committee on Finance. We are continuing our review of Bill C-9, an act to implement certain provisions of the budget tabled in Parliament on March 4, 2010, and other measures.

Colleagues, we are continuing with our review, part-by-part, of the bill. We did get to part 20.

[Cécile Cléroux]

The government determined that the best tool to be able to provide the authorities and the flexibilities to be able to go forward swiftly with the transaction process towards the divesture was using Bill C-9.

[Cécile Cléroux]

Right now this is part of Bill C-9. If it's approved, we will have the possibility to move forward. Decisions will be made by the Governor in Council, and these discussions will take place in cabinet.

[Geoff Regan, Liberal, Halifax West, NS]

Okay. It doesn't really tell me why it's in Bill C-9, but I'll move on.

I see Mr. Menzies is anxious for that.

[Ted Menzies, Conservative, Macleod, AB]

Chair, this is a question for question period, not for the officials. The officials are here to provide background information on the decision that is in Bill C-9.

[Geoff Regan, Liberal, Halifax West, NS]

What is the rationale for putting these provisions concerning the sale of AECL in the budget bill, Bill C-9? Why not debate this separately in the House of Commons? We have, for example, what was Bill C-20, now Bill C-15, on nuclear liability. That's being debated separately, running separately through. Why not AECL?

[Jane Pearse]

...that follows the regulations under Bill C-9, that is registered as a federal institution, then certainly that financial institution might have activities in Manitoba, for example.

[Daniel Paillé, Bloc, Hochelaga, QC]

I have some questions to ask about the concept that you can be a shareholder in a co-op. That seems to be contradictory from the outset.

Clause 1931 of Bill C-9 talks about the right to issue shares. It also says there is no right to vote. But a little later, it says that there is a right to "receive any of the remaining property". In a co-op you invest five dollars, and the Mouvement Desjardins, for example, has had exceptional growth through its own capital.

Is that not a major contradiction? I'm a little surprised to hear you say that consultations were held and the Mouvement Desjardins, for example, is in complete agreement. It seems to me that this is subject to interpretation. It would mean that if Desjardins decided to do that, it would have to have its own federal name, that is understood. But there is a kind of dichotomy. A cooperative with shares: that seems completely contradictory to me. I would like to know more about the idea behind all that.

[Jane Pearse]

I had a discussion with Desjardins, for example, and also with other cooperatives throughout Canada, and with the Credit Union Central of Canada, after Bill C-9 was introduced. In general, their reaction was positive. The Canadian Cooperative Association is happy with the federal model.

[Jane Pearse, Director, Financial Institutions Division, Department of Finance]

There was a discussion 10 years ago with the Proponent Group, a group of large cooperatives that would like there to be a federal model as proposed in Bill C-9. As well, we received a request for support from the Credit Union Central of Canada, which would like there to be a federal model for cooperatives here in Canada.

[Daniel Paillé, Bloc, Hochelaga, QC]

I would like to come back to the number of jobs. Of course, we will be able to see that from the models requested by Mr. Mulcair. You say that if the bill is not enacted, the private sector could lose thousands of jobs. I am trying to understand. That means that $40 million would be generated by thousands of jobs. I am thinking that the $40 million does not represent just the revenue that would be in question. Clearly with thousands of jobs, a lot more work and revenue is generated than $40 million. I am trying to understand this threat. We are told that if, for example, the Liberal Party voted largely with us against Bill C-9, and it didn't pass, the private sector would lose thousands of jobs. I don't see how thousands of jobs could be lost solely because of $40 million.

If you are right, that means there would be the opposite effect on the Canada Post Corporation. Plainly, remailing is not going to double overnight. If the Canada Post Corporation continues to do it exclusively, with its employees, without adding any, thousands of jobs will be lost.

On the other hand, you say that if the private sector enters this market, thousands of jobs will be preserved. The Canada Post Corporation will not eliminate jobs. This means there is some inefficiency somewhere. I am trying to understand.

[Thomas Mulcair, NDP, Outremont, QC]

Ms. Moynihan, it is still your turn. You have to understand our role here. I know you are in a delicate position, and you are here to try to defend something that comes from a political directive. But I'm not trying to draw you into the political side of the issue. As an elected member, I want to get information that is as objective as possible, and that will enable me to make a considered decision. So I have a few questions that call for an objective answer.

If this part of Bill C-9 is enacted, how much will the Canada Post Corporation lose?