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.

Motions in AmendmentJobs and Economic Growth ActGovernment Orders

May 26th, 2010 / 5:25 p.m.

The Deputy Speaker Andrew Scheer

Resuming debate. The hon. member for Skeena--Bulkley Valley will have about four minutes before the end of government orders.

Motions in AmendmentJobs and Economic Growth ActGovernment Orders

May 26th, 2010 / 5:25 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I wish I could say it is a pleasure to speak to Bill C-9, but unfortunately we are looking at nearly 900 pages that represent a travesty of justice, and a basic and fundamental attack on the democratic principles on which this place is built.

We find within these pages what some have called a Trojan Horse of a bill. We find everything in the way of a laundry list that the Conservatives want to move through but cannot, in part because they keep shutting down the House and killing their own legislation, and partly because the measures rammed into this bill are unpopular. The Conservatives have threatened an election and have told Canadians to just stick it. They have not provided the option of a democratic and open debate about some of the most fundamental things in front of us.

We know that in this cloak of secrecy the government is going to be raising taxes for the travelling public at airports. It is seeking to gut environmental legislation, which my hon. colleague from Edmonton so eloquently spoke of just recently.

The government is seeking in an omnibus format to cobble together whatever it has at hand to give the Minister of the Environment discretionary, almost divine powers, to decide what deserves an environmental assessment and what does not. Somehow he will know in advance what is going to cause environmental damage and what will not, ignoring the fact that the idea behind an environmental assessment is the understanding of what the damage may or may not be. That is why we put the criteria in there in the first place.

We are paying for industrial projects that went wrong years ago: old mines, abandoned oil shafts. We said that we would learn from all of these things, that we would take account of all of these things before we built, so we would know what the effects would actually be on the environment.

What is in the budget affects real lives and has real consequences for our country. It is a shame and a sham that the government pretends to be accountable, pretends to care about the principles of democracy, while on the other hand does this.

Just recently, more than 130 workers from AECL came to this place to be recognized, to ask government members if they would be allowed a free and democratic debate and vote on the sale of AECL, Canada's largest crown corporation, and into which the Canadian public has put more than $22 billion over the years. Instead, where do we find the sale of AECL? We find it buried in the pages of this Trojan Horse, buried in this omnibus bill. We are allowed no debate, no discussion. There is no democracy from the government.

I sat with those 130 workers after question period. I talked to them and listened to their questions. They are worried, concerned, fearful, and most of all, they disbelieve that a government that ran on such principles as transparency and accountability and the fundamentals of democracy could be so opposed to them in practise. Words do not match the actual actions of the government.

It is often said that the best disinfectant is sun light. We need to bring this out in to the light. That is why New Democrats are proposing today to split this bill, expose it, have the debate, have the parliamentary discussion, and bring democracy back to the House of Commons.

The House resumed from May 26 consideration of Bill C-9, An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:25 p.m.

The Speaker Peter Milliken

When the matter was last before the House, the hon. member for Skeena-Bulkley Valley had the floor. There are seven minutes left in the time allotted for his remarks. I therefore call upon the hon. member for Skeena--Bulkley Valley.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:25 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, unfortunately it is seven minutes. We are always in a deficit of time here, particularly when dealing with something as outrageous and undemocratic as what we have contained in these near 900 pages of Bill C-9.

I say undemocratic because within this Trojan Horse of a bill, the government has conspired to lump in just about everything it found to be too distasteful to see the light of day. Rather than have a fair debate about each of these important measures, and there are two or three that are actually laudable but the vast majority are not, the government has decided to make a Trojan Horse, an omnibus bill in which everything is crammed, and then point the gun of an election at the opposition to force a vote on something that probably many members in the official opposition, the Liberals, find distasteful as well, but will obviously cave into once the vote actually comes, because that has become a call-in response from the government almost since time immemorial. The government suggests something, the Liberal Party says that it does not like it, the government dares it to go to an election, and the Liberal Party gets out of the way as fast as it can and votes with the government again. It is a coalition by default and by any other name and function.

I will list for Canadians what is in this bill that we find so outrageous. One thing on the list is the sale of AECL. Yesterday 130 workers from AECL were here in Parliament, in the galleries watching the debate, demanding some sort of fairness. What struck me most in meeting with the workers after question period was how abandoned they felt by their government that would not even allow a fair and free democratic vote on the idea of selling their corporation. It is the largest crown corporation in Canada. It has received more money than any other crown corporation in history, some $22 billion of Canadian taxpayer dollars. The legislation says that when the government seeks to sell it, it must bring it before Parliament in a separate bill.

What did the government do? It went around the rules and the legislation and rammed it into Bill C-9 so there can be no debate about the sale of AECL. There can be no bringing of witnesses to hear whether it is a good thing for Canadians or this is in fact a fire sale of a crown asset.

The government, of course, will not get that $22 billion back. It will get far less, but maybe what is worse is that with no debate, no discussion and no evidence, the government presents nothing about the likely brain drain of the experts who work around AECL to competitors who do not support the Candu reactor system. This was expressed clearly by the workers who were here recently. What are they going to do and who will do the upkeep on the Candus that Canada currently has on the books? That is just one piece of this outrageous and offensive bill.

Another piece of the bill is the raising of airport security taxes. This is from a government that says that it is into lowering taxes while at the same time it increases them. If raising taxes for the travelling public were not enough, it is also seeking to finish off the completion of the hated HST for Ontario and British Columbia, thereby putting it on any duties or any transactions that Canadians have when dealing with brokers. Buying mutual funds will now see further taxation from the government.

Is there any debate allowed about this? Is there any free and standing vote on this particular issue? Of course not, because it is a take-it-or-leave-it bill. It is 900 pages of a threat from the government, 900 pages saying to the Parliament of Canada and the people of Canada that if we do not like the idea of selling AECL without a debate, that is too bad for us, if we do not like an increase in taxes when buying a plane ticket, that is tough for us, and if we do not like the HST in Ontario or British Columbia, that is tough.

We see that type of political arrogance even within British Columbia right now. We are finding out today that every provincial riding in British Columbia have signed up enough citizens to a petition to revoke the HST. What is the arrogant response from the government and that in British Columbia? They do not care. They simply do not care about the functioning of democracy.

We have recall legislation in British Columbia that allows citizens to stand up, and it is a very high threshold, a very high bar to achieve, and British Columbians appear to be achieving it. Now that they have gone through all that work and all the volunteers out canvassing, and I am one of them who goes out and asks people to sign on, we find out that the government does not care about something called democracy, it does not care about representation and our voice mattering because it will ram the HST through anyway with no debate, no discussion, no voice for common people.

It has often been said that the best disinfectant is sunlight and we believe that to be very true when it comes to Bill C-9. We New Democrats have a proposition. With Democrat built right into our name, we like democracy. We like the idea of debate and free votes. We have said that we should take out the parts that need to be taken out and then have a debate about them. We implore other members in this House to see the wisdom of having a fair and free discussion on the elements of this bill.

Ramming everything it could think of into 900 pages of one bill and then making an election threat is not an accountable, transparent and humble government. That is a government that says that the will of the people matters little or not at all. That is disastrous, not just for the political fortunes of its party, which concerns me not, but for the fundamentals of how this place is meant to operate, which is that when we have a debate about something, we put it in legislation and bring it before the House. The government could do that with any of these pieces that it feels so proud of that it has to hide behind in Bill C-9.

We have simply said that, whether it comes to employment insurance, environmental protections, the National Energy Board, the airport tax, the HST and all of the other things rammed into this bill, the government must do the right thing and separate them out.

My last point is around the National Energy Board.

At a time when we are seeing a disaster taking place in the gulf, the President of the United States today saying that deregulation had failed them, that companies monitoring themselves was a bad idea, we see in Bill C-9 that the government is moving in the opposite direction, moving to more deregulation. It would give the Minister of the Environment the divine powers to decide what, if any, projects in the country get an environmental assessment at all. The minister can simply, by writ, decide that there is no environmental risk posed, in his or her own fictional or imaginary world, and, therefore, no environmental assessment happens.

We have learned that we need environmental protections, not just to save the environment but also to protect the communities and the economies on which we rely. This is not an economy versus environment debate and the government needs to realize that. It should allow the breakage of this bill, allow it to be separated so we can have a true and honest discussion, with witnesses and evidence, and allow the vote to stand freely and fairly. That is what a democratic government should do and that is what the government should do.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:30 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, I think my colleague really laid out for people back home what is so wrong with what is happening here. It is about the abuse of Parliament, the abuse of process and contempt for the systems that have been put in place in this Parliament going back right to the beginning. What we see time and time again with the government are the actions of the schoolyard bully, which is that it is the government's way or the highway. The Prime Minister has these tantrums if he does not get his way. We saw this when we were promised that we would have someone who would actually vet the appointments but thePrime Minister did not get his buddy, so he tore it up.

Now we see with this budget bill an absolute abuse of process where the Conservatives are trying to push through stuff that will help their friends in the oil industry by ripping up environmental regulations.

What does my hon. colleague think the opposition should be doing in order to stand up for the rights of parliamentarians and the rights of due process and to ensure a full study of some of these very controversial and bizarre plans that are hidden in the budget bill? What should we be doing, as Liberals, as Bloc and as New Democrats?

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:35 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, what the opposition members should be doing is their job. Our job, when we see irresponsibility and an unaccountable government, is to stand up and oppose that on behalf of Canadians who sent us here to do this.

We saw the Liberals at committee sneak one of their members out the back door to ensure that the vote would pass to allow Bill C-9 to come back to the House. We suspect that the same thing will happen here when the final vote on this outrageous bill comes.

We have seen this pattern of shutting down committees through the monkey-wrench manual the Conservatives produced. We saw it on the Afghan detainee documents. We saw it with the government's abuse of prorogation, shutting down the entire Parliament when questions arose that the government did not like.

Just the other day we finally had it confirmed where the Conservatives learned it from. They justified this bill, this outrageous abuse of democracy, by saying that the Liberals did it. They learned too well at the feet of the Liberals when they were in power and said that they did not like all the debate business, the discussions, the counterpoints and the views so they just rammed things through. That is not a lesson the Conservatives should have learned from the previous government and they should unlearn it quickly.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:35 p.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I thank the member for his presentation on Bill C-9, an 880 page omnibus bill, which is very rare in politics but not so rare when dealing with this particular Parliament and the present government.

While I do not agree with the nuclear option, the fact is that we have interests in nuclear development in Saskatchewan and in Ontario, and worldwide there is a big demand for nuclear power. Therefore, at a time when the future is looking rosy for the nuclear industry, why in the world would a government want to sell off the largest crown corporation in the country, a corporation in which we have invested $22 billion in subsidies in its history? In some ways it seems like a repeat almost of the Avro Arrow of the Diefenbaker years.

I would like to know what the member's comments would be on those observations.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:35 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, here is the mismanagement of this particular industry by the government. We are aware of 120 new nuclear builds right now around the world and zero of them are coming to Canada and zero of them are being made by Canadian operations. That is 0 out of 120.

We would imagine that the government will address this bill this afternoon but I will make a prediction that it has no rationalization because it has presented no evidence and no reason to sell AECL right now and no reason to sell it this way. I will make a prediction that this afternoon, in the parliamentary secretary's speech, the government will continue to offer nothing to Canadians, nothing to the workers and nothing to those families who will be affected by this fire sale because it does not have any evidence. It does not have a process put in place to say that now is the best time to sell AECL for these following reasons: it studied it and asked around and this is the best deal for Canadians.

The government is doing it as a matter of convenience. The entire bill is about political expediency and convenience, ramming everything that it could not get individually through, put it all in one bill, hold up the threat of an election to the opposition and watch the Liberals cave again.

This is no way to run a country. It is undemocratic. If there is nothing more fundamental than that, I beg the government to reconsider the bill, break it up and allow us to have a debate.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:35 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, it is my pleasure to take part in this afternoon's debate on Bill C-9 concerning the government's budget.

We have amendments to part 24, which changes the Employment Insurance Act by establishing an account in the accounts of Canada to be known as the employment insurance operating account and closing the employment insurance account and removing 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 board.

As members will recall, in 1986, the Auditor General said that the employment insurance account should be integrated into the government's consolidated revenue fund. At the time, the government, companies and employees were contributing money to the employment insurance fund.

In 1988, after the employment insurance fund was integrated into the consolidated revenue fund, the Mulroney government started to chip away at employment insurance.

As I recall, that is when things started to change. Brian Mulroney's Conservative government was in power, and the Liberals were the official opposition. I remember that in 1989, in one of the papers—this is not the first time I have brought this up in the House—my predecessor, Doug Young, who was his party's employment insurance critic at the time, urged all New Brunswickers to fight changes to employment insurance because such changes would be disastrous for New Brunswick. That is why I said this is not the first time I have talked about this issue. I want to remind the House about the Liberals' attitude at the time.

In the spring of 1993—even at the end of winter that year—Jean Chrétien was the opposition leader. He then became prime minister. He sent a letter to a group of women in Rivière-du-Loup, Quebec, who were working to stop changes to employment insurance. As opposition leader, Jean Chrétien wrote that the government should not take action against victims, people and workers. He wrote that the government should focus on economic development. The country needed economic development to create jobs for people.

To everyone's great surprise, when the Liberals were elected in the fall of 1993, they continued along the same course. We cannot say they were any worse than the Conservatives because the Conservatives had begun employment insurance reform. We do not know how far they would have gone. The Liberals had taken over the ship. They had taken over the tiller and started focusing on employment insurance. They also started thinking that what was in place was not so bad. Former Prime Minister Brian Mulroney had agreed to the Auditor General's recommendation to put the money into the consolidated revenue fund. The Liberals realized that this gave them more money and that employment insurance contributions gave them more money.

The Conservative government had increased premiums to roughly $3.08 or $3.20 for every $100 and the employer paid 1.3 or 1.5 times that amount. In other words, this represented roughly $8. It was a cash cow.

Money was coming in and cuts were being made to employment insurance. The worst cuts came in 1996: the number of hours to qualify was increased to 910; 420 hours were required in areas where the unemployment rate was greater than 13%; new entrants had to accumulate 910 hours; 700 hours were required in areas with low unemployment; 700 hours were required for a person who was sick or disabled to be granted special leave; 700 hours were required for maternity and parental leave. So much money was flowing into the employment insurance fund that it could not be ignored. The federal government was running a $565 billion deficit. It reduced the deficit by $92 billion, $57 billion of which came from the employment insurance fund.

Paul Martin, who was the finance minister at the time, told Canadians to tighten their belts to eliminate the deficit and pay down the debt. He robbed the employment insurance fund to pay down the debt and achieve a zero deficit.

At the time, the Conservatives, who make up the new Conservative government, condemned the theft from the employment insurance fund. Surprise, surprise, they returned to power in 2006 and this continued on into 2010. Now, they have presented Bill C-9, which is some 900 pages about the budget, and in which the government legalizes this theft from the employment insurance fund. That is what is going on here. By creating this new board, by creating a new fund and putting only $2 billion in it, the government is legalizing the biggest national and federal theft in the history of Canada.

I am calling it a theft, because workers pay employment insurance premiums out of their paycheques as security in case they lose their jobs. It is not meant to be used to pay down the government's debt. Now, people are in need.

We have just been through a serious economic crisis. Some people have used up their employment insurance benefits and do not have a job. We could increase the number of benefit weeks. We could base the calculation on the best 12 weeks instead of the best 14 weeks. We could eliminate the divisor of 14, which would give the best 12 weeks. We could also increase benefits from 55% to 60%. We could give these workers a chance.

In other countries, like France, for example, workers receive 75% of their income. When I brought up the idea of increasing the amount people receive, when we asked the government to increase the number of weeks, all the Conservative government could think to say was that if we were to do that, people would work 10 weeks and would receive 52 weeks of employment insurance benefits. They would work only 360 hours and would receive EI the rest of the year. The Conservatives have no faith in Canadian workers. That is the problem. They have no faith in our fellow citizens.

I asked a member of the French national assembly if paying benefits of up to 75% of wages made people want to receive employment insurance benefits rather than work. His response was altogether different. He said that he truly believes in workers and citizens, and added that they are very hard-working and that they want to work. They pay into the employment insurance program, which protects them in the event they lose their jobs. He added that if these workers want to pay themselves a wage while they are unemployed, it is good for the economy and good for everyone. It is good for the regions and it is good for small and medium-sized businesses. When a citizen receives benefits, he does not take off the next morning for a sunny spot such as Florida.

Instead, he goes grocery shopping. He buys something, or pays his bills. It is good for our economy, for our local economy.

It is unfortunate to see that the government has included all sorts of things in Bill C-9. And the first thing it will say is that we voted against it, that we voted against the huge monster it has created. We cannot support this omnibus Bill C-9.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:45 p.m.

Bloc

Daniel Paillé Bloc Hochelaga, QC

Mr. Speaker, I appreciate the points raised by my colleague. He said that this 888-page bill containing close to 3,000 clauses refers to a budget almost 500 pages long. On page 176, we see all the employment insurance contributions from businesses and workers, and on page 180 we see the employment insurance benefits that will be paid out to unemployed people. Nowhere in the 500 pages of the budget, the 888 pages of the bill or the 3,000 clauses do they do the math. They will steal $19.2 billion over four years. That means that employers and employees will have contributed $19.2 billion more than the amount of benefits paid out.

I would like to know what my colleague thinks about this and how he would describe it. Is there a word that comes to mind to describe this move?

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:50 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, only one word comes to mind: taking without asking is stealing. That is what is unfortunate. Workers, men and women who get up every morning, have built our country. They have families to support and they want to send their children to school, but poverty has reached the point where 1.4 million children in Canada are hungry. We do not need to go to Africa. Right here in Canada there are 1.4 million hungry children, while 800,000 people do not qualify for employment insurance. How can we vote for the budget this government is serving up?

What is sad is that the theft started in 1996 with the Liberals and today it will be sanctioned by the Liberals and the Conservatives. It is unfortunate to, once again, see the coalition between the Conservatives and the Liberals, with its ties to Bay Street in Toronto. That is the problem.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:50 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, Bill C-9 is an abuse of the public. The government is forcing through major changes without giving the public even a chance to sense what is happening. Nowhere is it clearer than with the $57 billion that is being stolen from the EI fund.

The government cannot be honest with the public and neither can the Minister of Human Resources. When we asked the minister about her plan to shut down 15 of the 18 EI processing centres across Ontario, she could not even stand in the House and give an honest answer.

However, we know that Owen Sound, Orillia, Kenora, Belleville, North Bay, Timmins, Sault Ste. Marie, Brantford, Etobicoke, Barrie, Peterborough, Hamilton, Niagara Falls, Thunder Bay, Kitchener and Oshawa centres are being closed. Why are they being closed? Because the government is stealing the money from EI. It is running out of money because it is giving $1.7 billion in corporate tax cuts.

Why is the government unable to give an honest answer to Canadian workers? Why can is the minister not stand in the House and explain what she is doing by robbing workers of access to EI, robbing them of the kind of processing for their EI claims, which they need at this time of recession?

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:50 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, it is very simple. Workers have always been the slaves of big industry. It is not the Conservative government that will support them. Workers pay into the programs so if they lose their jobs, they can get the money when they need it.

Other countries around the world look after their workers if they lose their jobs, especially if they pay into a program. In Canada our government takes the money and puts it toward the debt. It has had a deficit balance how many times because of the money from employment insurance. Of the $92 billion paid down on the debt, $57 billion came from the workers, from the hard-working men and women. The government took it away from them.

The only reason is because the Conservative government is reporting to Bay Street instead of reporting to the citizens of our country, the men and women who get up in the morning and do the work to build this good country in which we live. The government does not care about the workers. It has never cared about them. Instead it says that if it gives workers money, they will stay home.

The problem is the government has no respect for our workers, the men and women who get up in the morning and do the hard work.

Jobs and Economic Growth ActGovernment Orders

May 27th, 2010 / 3:50 p.m.

North Vancouver B.C.

Conservative

Andrew Saxton ConservativeParliamentary Secretary to the President of the Treasury Board

Mr. Speaker, thank you for the opportunity to speak against this ill-advised NDP motion, which is clearly a delaying tactic, and to speak for supporting jobs and Canada's economic recovery. Like my colleagues on the government side of the aisle, I am opposed to this motion.

I oppose this motion, because delaying or threatening to gut budget 2010 and the jobs and economic growth act would only threaten the economic security of Canadians. I oppose delaying over $500 million in transfer protection payments to the provinces. I oppose delaying funding for organizations, such as the $75 million for Genome Canada, the $20 million for Pathways to Education Canada to provide support for disadvantaged youth, and the $13.5 million for the Rick Hansen Foundation.

I oppose delaying important reforms to protect federally regulated pension plans, such as requiring an employer to fully fund benefits if the whole of a pension plan is terminated. I oppose delaying legislative authority to enforce the code of conduct for the debit and credit industry. I oppose delaying crucial tax changes to revitalize Canada's venture capital industry and much more.

I oppose delaying Canada's economic action plan. It is important that we stay the course and do what we must as legislators to ensure that we implement year two of Canada's economic action plan, as outlined in budget 2010, in a timely manner so as to best assist Canadians. Our government, through the jobs and economic growth act, is working to address the long-term opportunities and challenges our country will be confronting in the years ahead.

One of these key challenges is ensuring that our companies remain competitive in the global marketplace. We are determined to assist our hard-working manufacturers in meeting this objective. The jobs and economic growth act proposes to bring forward a series of economic measures to contribute to Canada's advantage now and in the future. One of these measures is the action we have taken to eliminate tariffs on manufacturing inputs, machinery, and equipment, which would make Canada a tariff-free zone for manufacturing.

Some have charged that the act is too ambitious, too large. However, if you were to carefully review the actual act, you would soon realize that because of the technical and legal requirements, the bold action to make Canada a tariff-free zone for manufacturing actually makes up over half of the act. In other words, half the pages in the jobs and economic growth act are the result of that one single measure.

Clearly, as suggested by its size, this measure has immense short-term and long-term benefits for our economy. This has been recognized by the Canadian Manufacturers & Exporters, who were clear that in their view, budget 2010 and the jobs and economic growth act will help Canada's manufacturers and exporters compete. They said:

We worked with the government directly to reduce tariffs for manufacturing and I believe this is an important cost-savings mechanism for companies....[I]t is a bottom-line boost to cash flow for manufacturers at a time when it is needed the most.

By lowering production costs for manufacturing, this initiative increases the competitiveness of our manufacturers, which will help them better compete with foreign suppliers, both in Canada and abroad. By reducing the cost of importing key factors of production, this measure also encourages innovation and allows businesses to enhance their stock of capital equipment. This is very important for improving productivity.

Equally important is the positive impact this measure is expected to have on employment. All in all, it is estimated that our move to make Canada a tariff-free zone for industrial manufacturers will create 12,000 new, good-quality jobs in the years ahead. This will certainly help strengthen our economy. That is why measures such as tariff elimination have been so widely applauded.

We have heard from business leaders, such as like Dani Reiss, CEO of that popular Arctic Canadian coat manufacturer, Canada Goose. He heralded it as “a great move” and said, “tariffs only made it more expensive to be a Canadian manufacturer. I think this move by the government will make 'Made in Canada' viable for more apparel companies”.

However, the jobs and economic growth act does so much more. For instance, the targeted measures include the provisions in part 7 and part 8 of the bill that are part of budget 2010's actions for containing growth in government spending and ensuring that the government lives within its means. In particular, part 7 implements the budget 2010 commitment to freeze the salaries of the Prime Minister, ministers, members of Parliament, and senators for the 2010 through 2013 fiscal years.

By putting forward the salary freeze for the Prime Minister, ministers, MPs, and senators, the government is leading by example in budget 2010.

This initiative has been welcomed by Canadians. The opposition has also reacted positively to the proposed salary freeze, at least initially.

Before concluding, let me directly address those who have been critical of the jobs and economic growth act. They seem to have randomly pointed to select measures and for singularly political reasons have deemed them unnecessary. They would, it seems, delay or defeat the act to prevent these measures from going forward.

Many of these individuals, spurred on by vested interests, have used as their partisan punching bag the provisions that would allow competition in the outgoing international-mail marketplace. This is a measure that we know will directly save thousands of Canadian jobs. I ask those individuals to put partisanship aside and read the frank testimony the finance committee heard from a witness who spoke on this measure, a witness who pointed out that this competition has already been occurring for decades.

Barry Sikora is a small businessman from British Columbia. Mr. Sikora has been involved in the international mail industry for over 30 years. He has been employing people for over 30 years and contributing to his community for over 30 years. He was that witness, and he had a simple message: pass this act. In his own words, and I quote, he said:

...[M]y company employed 31 people. We're not a huge corporation; we're an average business in the printing industry. Now, because of this situation, we're down to 17 employees. Many of our customers have left us...[and] they have taken their business to another country. They have forced our industry to lay off long-time employees, and that's not a pleasant thing to do...Already we've lost a significant amount of business. We're hoping that it will come back, but...if this [act] doesn't pass, I'm out of business.

For those individuals who are spurred on by vested interests and their ideological, procedural, and partisan narrow casting, remember Mr. Sikora and the Canadians he employs and the Canadian jobs he would like to add. Think about those jobs lost and the families impacted if we delay or defeat this act.

Clearly, Canadians are looking to all members of this House to take action to support jobs and economic growth. We cannot afford to delay the implementation of budget 2010.

This motion by the NDP is simply a tactic to delay House consideration of measures that are urgently needed to ensure that Canada's economic recovery continues. That is why the government does not support the motion. Instead, we will continue to work with the opposition to ensure that this act is adopted by Parliament as quickly as possible for the benefit of all Canadians.

I therefore call on all members of this House to oppose this motion.