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

[Ruby Dhalla, Liberal, Brampton—Springdale, ON]

Mr. Speaker, I rise today to speak to a budget which impacts my constituents in Brampton—Springdale and many Canadians across the country.

In attending numerous events in my constituency, meeting with many Bramptonians, both men and women, in their workplaces, listening to seniors in seniors homes and visiting with children at schools, I have had the opportunity to hear first-hand of their needs and their priorities.

The past few years have been a very difficult time for many families in Brampton. Brampton based companies, such as Nortel, Saputo and Chrysler have closed their doors. Other small and medium-sized businesses have also struggled. The impact has been felt by many men and many women who were employed at those companies.

There are men and women who have been let go and others who have been laid off. There have been seniors and many of the people who have been laid off who have been forced to make that choice between filling up the fridge, the medicine cabinet or their gas tank.

Many of those families that have struggled in the past few years are looking for opportunities for themselves to ensure they can put bread and butter on the table. They are looking for opportunities to ensure their children have the very best in education, resources, tools and skills they need to succeed. Then there are new Canadians who are looking for opportunities, the opportunity to contribute, to build a better Brampton and a greater and stronger country. Also seniors out there want to have the opportunity to age with dignity and respect.

I think all Bramptonians, like all Canadians, are looking for that better hope for tomorrow and a brighter future. This is why the budget implementation bill brought forward by the government is so incredibly important. It is important to those Bramptonians who are struggling to be heard and those individuals who are the vulnerable.

Let us take a look at the areas in the automotive and manufacturing sectors, both crucial to the economy of Brampton and Brampton families. When Chrysler closed its doors, over 2,000 men and women lost their jobs overnight.

It was amazing to see how the community came together in this time of need. The Chrysler Action Centre was opened for the men and women who had just lost their jobs. The union showed its leadership. Chrysler took leadership. The provincial government also took leadership in opening the centre, which provided resources such as resume writing and job finding for those who had lost their jobs.

They were also looking for leadership in that time of need from the federal government. The budget claims to have created many jobs, but the fact is the country has lost almost 300,000 jobs. Look at our unemployment rates, which continue to rise.

Just a few weeks ago in my riding, Saputo, Canada's largest cheese maker, announced its decision to close its plant. The result is 190 Bramptonians are out of jobs. These are hard-working families that are looking for hope and for the opportunity to give back.

We must ensure that as these people struggle in this recession, there is the opportunity to provide them with job security for the future and with the resources and the skills they will need to find new jobs.

This global recession really knows no boundaries or barriers. A demographic that has often been forgotten is our young people. This recession affected everybody. We only have to take a look at the unemployment stats for young people aged 15 to 24, which reached a record high in 2009 of 20%, the highest jobless rate since 1977.

A report of the Community Foundations of Canada, called “Canada's Vital Signs 2009”, provides insight into the dire situation young people face. The normally lucrative summer months for these young people was 30 hours. It now is down to 23.4 hours. We must ensure these young people have the opportunity to go to university or college. They need that employment during the summer months.

Investing in education, investing in our young people is really about investing in our country's future economic prosperity and productivity. No government can turn a blind eye to young people. We must ensure they have the opportunity to get the educations they desire. As Canada moves forward, we must base the opportunity to go to college and university not on the pocketbook but on the desires and passions of students.

Another challenge we have faced is the issue of infrastructure. Communities like Brampton, one of the fastest growing cities in the country, put forward a number of projects for which they needed funding assistance from the federal government. We heard during the Speech from the Throne and budget 2009 that funds were committed but many of those funds had not been spent.

Out of $2 billion for the infrastructure stimulus fund, $874 million were unspent. Out of $200 million for the green infrastructure fund, $186 million were unspent. The list goes on. Money unspent means projects have not started, which mean people do not have the opportunity to work.

The government needs to act to help Bramptonians who are looking for those jobs. If the projects Brampton had put forward had been implemented, it would have created an estimated 21,000 jobs for Bramptonians who lost their jobs in the past few years.

Then there is the issue of health care. In many ways Brampton's new civic hospital has been leading edge both in terms of technology and the provision of services. However, there still continues to be a challenge faced by not only for my constituents but by many people across the country, and that is the issue of wait times.

Looking at the statistics of Brampton Civic Hospital, individuals with complex conditions are having to wait 17.5 hours versus the average of 13.6 hours. We realize much work needs to be done in the area of health care. People are looking to the federal government for leadership on this issue.

As a health care provider, I have had the opportunity to see first-hand the challenges encountered in our health care system. There is the issue of wait times, as well as the shortage of doctors. We must ensure we provide Canadians with access to doctors, specialists and nurses. We must invest in health human resources to ensure that every Canadian, regardless of where one lives in Canada, or the amount of money one makes or one's socio-economic status, has the opportunity to receive the very best in health care. It is the hallmark of our great country.

I also want to touch upon the issue of poverty. Poverty is a growing concern in my riding. People look at the medium income of almost $80,000 and think my riding must be doing very well. The fact is the issue between those who have and those who have less continues to grow.

The issue of poverty is increasing and impacting many individuals. Many low-income and single-parent families are living too close to the poverty line. People like Edna Toth with the Peel Poverty Action Group have done incredible work to raise awareness.

We must ensure, as we move forward, that the federal government once again takes leadership and puts together a national housing strategy. We are one of the only industrialized countries in the world that does not have a national housing strategy.

There are many issues to discuss and many challenges being faced by constituents, Bramptonians and Canadians. I hope the government will take this opportunity to examine these challenges and work in a co-operative and collaborative manner to ensure Canadians get the changes they need and, most important, the hope for a better future and brighter tomorrow. We must ensure that every man, child, woman and senior in Canada are given the resources, skills and tools needed to succeed. When Canadians succeed, our country succeeds.

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

Mr. Speaker, the member said how terrible the budget was in that it did not deal with poverty, health care, wait times, housing and youth employment. Astoundingly, reading from Hansard, not long ago she did not show up to vote against the budget. She was among the 30 Liberal MPs who did not show up. As a result, the budget passed. Maybe they deliberately did not show up, I do not know.

Is the member planning to vote in favour of or against the budget implementation bill or is she planning, like last time, to simply not show up?

[Ruby Dhalla, Liberal, Brampton—Springdale, ON]

Mr. Speaker, I take the responsibility that my constituents have given me very seriously and whenever there is a vote, every attempt is always made to show up to ensure that we vote. I am a strong voice on behalf of my constituents in Brampton—Springdale. The member's implication that it may have been deliberate is certainly not the case and was certainly not the intention.

When we talk to Canadians at Tim Hortons or meeting them at various events, they are not looking toward an election right now. Hearing the NDP members, I think if they had their way Canadians perhaps may be at the polls on a monthly basis.

Canadians are looking to have work done and action taken on the issues and priorities that are important to them. I am glad that we in the Liberal Party are working in that co-operative and collaborative manner to ensure that Canadians receive the results that they need.

[Jim Abbott, Conservative, Parliamentary Secretary to the Minister of International Cooperation]

Mr. Speaker, I am a little bit unclear. If the member does not want an election which is why she did not turn up or she did not turn up because she was busy in her constituency, I am terribly confused. Perhaps the member can clarify this. Is she going to turn up next time and perhaps she could also tell us why she did not turn up last time or was it something to do with the Liberal inaction policy? How does this all fit together? It seems so bizarre.

[Ruby Dhalla, Liberal, Brampton—Springdale, ON]

Mr. Speaker, I cannot recollect the exact date that the vote took place, but I can tell the House that every attempt is made to always show up for all votes. There is certainly never a deliberate attempt, I hope, by any member of the House to ever miss any votes.

I think when Canadians and our constituents elect us, they expect that we would actually be here to represent their views and their ideas. I can say that by no way, shape or fashion is the budget perfect, but we all know the consequences of what could occur in voting against a particular budget which is a confidence measure.

I would hope that in 2010 we would all be able to turn a new page and start talking about the ideas and the issues that are important to Canadians across the country. I think the time, politically, has come to really put partisanship aside, to put political rhetoric aside, and to really start getting down to work and start delivering results.

[Daniel Paillé, Bloc, Hochelaga, QC]

Mr. Speaker, in an effort to move this very fruitful debate between the New Democrats, the Conservatives and the Liberals forward, I would like to inform my colleague, who does not recall the date of the vote, that it took place on March 10, 2010. Now I would like to hear the member's response.

[Ruby Dhalla, Liberal, Brampton—Springdale, ON]

Mr. Speaker, being a very community-oriented and grassroots constituency MP, I am going to ensure that I get back to the member with my exact whereabouts of where I was before I say something that is incorrect.

I want to take this moment as well to wish the entire Sikh community a very happy Vaisakhi. It is our new year today. I wish everyone who is watching CPAC the very best wishes for the new year, great health, happiness and prosperity moving forward into the new year.

The House resumed consideration of the motion that Bill C-9, An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures, be read the second time and referred to a committee.

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, I am pleased to rise here today to speak to Bill C-9 on the implementation of the budget that was passed in March.

This bill has over 800 pages and implements various initiatives set out in the budget presented on March 4. However, two measures that did not appear in the budget were added to the budget implementation bill. The first is the change to the Employment Insurance Act and the creation of the employment insurance operating account. The other measure, of greater concern to me, has to do with the liberalization of one of Canada Post's business lines.

In the 10 minutes I have, I would particularly like to discuss the measure included in Bill C-9 concerning Canada Post. I will address only that issue, for it is very important to me.

I represent a rural riding, where many communities have rural post offices. I recently presented petitions with over 6,000 signatures expressing the wishes of the people of my riding, who want to keep their rural post offices. They are worried about various measures taken by the government, including privatization and more recently, the restriction of Canada Post’s exclusive privilege.

The Bloc Québécois strongly opposes the privatization, even partial, of Canada Post. We believe that corporation must remain a public entity in order to maintain universal services and consistent rates throughout Canada.

I just want to talk about this part of Bill C-9, because I want to draw attention to the hypocrisy of this Conservative government, which has been trying since 2007 to get a bill passed that would take away Canada Post's exclusive privilege concerning international mail.

First, in 2007, the government introduced Bill C-14, which died on the order paper. In June 2009, it tried again with Bill C-44, which also died on the order paper when Parliament was prorogued.

Now, the government is using the budget implementation bill to introduce this measure and avoid public debate on restricting Canada Post's exclusive privilege concerning international mail.

I also want to talk about this measure to show the insidious nature of the Conservatives' tactic, which is designed to push through their plan to deregulate the crown corporation. We know that the government wants to completely privatize Canada Post, and it is clearly taking the first small step toward that end by including this measure in the budget implementation bill.

I am very active and very close to the people who work in the post offices in my riding. Since Bill C-9 was introduced, I have received many letters from my constituents who work as letter carriers. They are asking me to oppose this bill, because they are afraid of losing their jobs. I also share their fears about how the bill will affect the crown corporation's revenues.

For the people who do not know what I am talking about, I will explain what will happen if Canada Post's exclusive privilege—what we call remailing—is removed.

This measure will permit letter exporters to collect letters in Canada for transmittal and delivery outside Canada. That means that Canada Post's competitors will be able to collect mail in Canada and Quebec and send it outside Canada.

What that means, in fact, is that the forwarding of mail by a remailing company consists in collecting mail items from business clients residing in one country and sending those items to another country where the postal rates are lower. This usually involves a developing country where the mail is sorted and remailed to a third country. This is a cost reduction method and a way of ensuring that the revenue from that mail goes to Canada Post.

Allow me to illustrate this by way of a specific example. A Canadian company wanting to send mail to the United Kingdom goes through a remailing company. The company then sends the mail in bulk to a branch office in another country where the sorting is done at a fraction of the price. The mail is then resent to the United Kingdom. The company will have saved up to 30% of the delivery cost because the mail will have already been sorted.

A business using the services of a remailng company could save up to 66% of the price Canada Post charges. I am getting letters from my constituents about those figures. It is only natural that people working at Canada Post are as concerned as I am because they have good jobs with good working conditions that allow them to live in dignity and be consumers and thereby participate in the economic development of their community and region.

Who does this benefit? We must understand who will benefit from this measure. Some time ago, the government undertook a strategic review of Canada Post. The government reviewed all of Canada Post's activities and, as a result of its analysis, made a number of recommendations. One of these was to revisit the exclusive privilege of Canada Post in the area of international remailing.

However, the strategic review did not indicate the negative consequences for Canada Post of deregulation, even partial deregulation. It was also unclear whether partial deregulation would permit remailers to directly or indirectly attack Canada Post's exclusive privilege within Canada.

They are opening up a crack in order to challenge the exclusive privilege of Canada Post with respect to international mail. However, this may be just the first step. In fact, the entire issue of postal operations within Quebec and Canada may be next.

The Bloc Québécois believes that this bill will weaken Canada Post by eliminating some of its revenue sources. This situation could speed up its desire to regroup the distribution of mail in certain areas, which would result in cuts to home mail delivery to many Quebeckers as well as potential job losses.

I will conclude my speech by stating that, for the Bloc Québécois, it is important to maintain this universal public service and uniform rates throughout Quebec and Canada.

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

Mr. Speaker, the member is absolutely 100% correct in her analysis. This bill was introduced by a Liberal member a number of years ago while in government and then it was variously introduced by Conservatives, under Bill C-14 and Bill C-44 last year in a minority Parliament.

Knowing that it could not pass the minority Parliament and it would be held up, the government seized upon an opportunity to throw it into an 880-page omnibus bill dealing with the implementation of the budget. This has nothing to do with the budget. This is basically an attempt to privatize the post office by stealth at the end of the day.

If this remailer issue is passed by the House, we will see a gradual erosion of the post office's position in the country. These letters, I believe, are going to be sorted in places like Jamaica where the costs are much less. We will see a reduction in jobs in Canada as a result.

It is the dishonesty of the government in its approach. It does not have the courage to bring this bill forth, as it did last year, and subject it to proper debate and scrutiny in the House. It has stuck it in an omnibus bill that has nothing to do with the subject at hand.

It has basically said, “Here it is. Take it or leave it. It is a matter of confidence. If you vote against it, the government falls”. What has that done? It has scared the Liberals, who are against this measure, into having to either support the government and get what they do not want or cause an election. That is where we sit right now with this issue. It is a terrible spot that the government has put us in.

Would the member like to comment any further on this issue?

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, I thank my hon. colleague for his question. I see we share the same concerns about the hypocrisy of the Conservative government, which is using the budget implementation bill to introduce a measure that would end Canada Post's exclusive privilege to redirect mail.

This will lead to financial losses. Canada Post has estimated that it is losing between $50 million and $80 million a year. It is already losing that money, because remailers are already in business. Canada Post filed a lawsuit and won, indicating that it has the exclusive privilege to handle international mail.

Of course, Canada Post told us that if the bill were ever enacted—Bill C-44 at the time—it would suffer financial losses. This will probably pass, since the Liberals will support it. At least, that is what I predict will happen.

One thing is certain: the Bloc Québécois will vote against this bill. It is estimated that Canada Post will lose approximately $45 million to $50 million more if it loses the exclusive privilege to handle international remailing. By including this in Bill C-9, the government is removing Canada Post's exclusive privilege over international remailing. This is completely unacceptable because it is hypocritical, and it makes it impossible for us to have an informed debate, as Bill C-44 allowed us to do.

I hope the Liberal members will rise and vote against this bill, which will remove Canada Post's exclusive privilege to handle international remailing.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I am happy to join in the debate today. I will try to focus my comments mainly on a number of the rural aspects of the budget. My riding is rural, for the most part. There are a couple of bigger communities, Glace Bay and Port Hawkesbury, but for the most part, Cape Breton—Canso is rural. When I go from one end to the other, it is about a four-hour drive and there are about three traffic lights. That would give an indication that it is a fairly rural constituency.

Some of the concerns of the people from Cape Breton—Canso obviously have to do with the out-migration, the shift in population from rural to urban. Many of the issues are being experienced by many rural communities right across this country. What I see in the budget is a lack of initiative, a lack of understanding of rural Canada and how to deal with some of the challenges that are taking place in those communities.

I want to talk about the fishery first. I would like to speak particularly about a program the government brought forward. With regard to the lobster industry last year, it pledged some short-term assistance. Too much fanfare, it announced $15 million in short-term assistance to the lobster industry. As we know, with the economic downturn, many ports along the Atlantic coast saw a downturn in the price of lobster and crab. It was compounded by the fact that catches were down in many areas.

The government announced $15 million in potential assistance for the fishers in these communities. We knew it was a fairly modest sum at the time, but what has compounded it was the criteria that were laid out by the government that made it almost impossible for fishers to receive any of that money.

I saw a cute sign the other day. I have been a Toronto Maple Leafs fan my entire life. I saw a big billboard out in front of one of the local bars in a neighbouring community that said, “Free beer for all Toronto Maple Leafs playoff games”. That is an easy pledge to make. It has been a number of years since we have been in the playoffs, so it is easy to boast the free beer.

This transitional fund for lobster assistance that the government put together is pretty much the same thing. It announced $15 million for those who qualify, but when the criteria are made so abstract and obscure, it is very difficult for an average fisherman to qualify for such funding. We saw just barely over half of that money being allocated to those who really needed that money at that time. It was a very difficult year in the fishery.

I was in Port Hood this past week and had an opportunity to speak at the installation of officers at the Port Hood Volunteer Fire Department. A number of fishers were there from some of the harbours around Inverness County. I spoke with a group from Little Judique Harbour. They said their catches have gone down each of the last five years. The way the program was structured, very few from those harbours along the south side of Inverness County were eligible for any funding assistance at all.

Some fishers in Mabou qualified, but nobody qualified within Mabou Coal Mines. Just a little bit better than half of those funds were expended. It sounded like a good thing to do at the time, but I think the government really fell short in the delivery of any kind of assistance for the lobster industry and let down the fishers along the many harbours in Atlantic Canada.

Some of the representatives back in my riding, including Josephine Kennedy and Trevor MacInnis, said it seemed from the outset that the government was intent on making sure that not one of these full cheques was ever cashed. The maximum was going to be $5,000. Of course, because it was taxable, about 22% would go back to government coffers. About 22% of the money that was issued to the fishers who needed it would be signed back to the government.

On average these fishers would have lost $20,000 to $25,000. For any small business operator, if $20,000 or $25,000 is taken out of that enterprise in any one year, that is a significant amount of money to take off the bottom line.

The reality is that there are very few other opportunities for these fishermen, when we look at the reduction of crab quotas in the gulf and the drop in the price of the crab. They are very limited in their ability to generate other revenues with any other species. They are expensive operations to run. Running a fishing boat operation has a great number of costs involved.

We thought it was a good idea at the time, but it was the execution of the plan that really fell short and disappointed many. It is not the only concern we have about the fishery with the government. We are on record, on a number of occasions, questioning the minister herself as to why she wants to meddle in some past agreements signed off by some ministers but is not willing to in other cases.

We can look at a crab plan that was signed off in 2005. The minister arbitrarily went in and changed the whole context of that particular arrangement. And yet the minister is not willing to revoke the privilege that was issued to Tim Rhyno, a $1 billion licence that was issued by her predecessor, Loyola Hearn, just before the last election.

With respect to the lobster plan, as excited as we were when we first heard about it, the end result was something we probably expected anyway.

There are so many rural issues. The lack of attention that rural Canada got was stark. When the volunteer firefighters were speaking with me the other night, they said they were really hoping this was going to be the year that some recognition would be given for their efforts. If people come from Toronto or Montreal or Vancouver, a major centre, when they go to bed at night they are quite confident that their safety is in the hands of full-time firefighters, full-time professionals. In case of a tragedy or if a fire breaks out over the course of the evening, then full-time professional firefighters will attend them.

However, in rural communities, we all know it is volunteer firefighters. They are very dedicated, committed community members who put their own safety and their own time into making sure we are able to live in safe communities.

The volunteer firefighters were hoping that maybe in this budget there would be some type of recognition, maybe in the form of a tax deduction for volunteer firefighters. That was certainly absent.

I know that all members in this House hold in great esteem and admiration all people who contribute to their communities through volunteerism. The firefighters, the first responders, those types of volunteers stand apart from the regular hockey or soccer coaches or fundraisers for the local charities. It is these people who are rushing into the buildings when everybody else is rushing out.

The volunteer firefighters were very disappointed that there was nothing in the budget for them.

We saw cuts to CAP sites and cuts to ACAP. I know the Minister of Industry came back and said it was all just a mistake, that they did not really mean it and that they found some money for them. So the government will maintain those programs for at least one more year.

Now we see what is going on here, and I think Canadians understand. The government is just trying to sort of rag the puck through to the next election. It certainly does not want to see another budget. It does not want to make it to another budget, because harsh decisions are going to have to be made after the situation we have sort of tumbled into under the guidance of the government.

Therefore I think we fully expect that an election will be triggered this fall. I think Canadians will understand that there were many opportunities missed in this budget, and they will keep that in mind when that opportunity presents itself, probably this fall.

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

Mr. Speaker, I have to say at the outset that this is a rather one-sided debate. We have not heard from a Conservative member for the last two days on this matter.

When we are talking about an 880-page budget implementation bill, we would think they could at least get one member up who could answer some of the questions that we in the opposition have regarding the bill.

The Conservatives have a provision in the bill regarding the provisions of the Criminal Code, applying them to serious crimes relating to money laundering and terrorist financing, and they are going to apply them to cases of tax evasion, which is probably a good idea, but we need some answers as to what sort of application that would have.

Currently the government's policy on tax havens is that it is offering an amnesty. When the gentleman sold the computer records from one of the Swiss banks two years ago to the German government and to other governments and uncovered all these foreign nationals who have money squirreled away in these banks, what is the government's answer? The government's answer is, “We are going to give you an amnesty. Just simply walk into the nearest Canada Revenue Agency location and report that you have been hiding money in Switzerland for the last few years, pay your taxes and you will be scot-free”.

This is the government's tough-on-crime approach to the tax haven issue.

I think we need some answers here. I would like to know what the member thinks.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, the member for Elmwood—Transcona has asked a legitimate question.

It would have been good to have the current government engaged in this debate. Perhaps if it were engaged in this debate we could get some clarification.

The Conservatives make an investment in building more jails, but when they advertise that, it is social housing in their eyes. It would be good to have them stand and give an explanation on these various points, but I guess they have decided not to.

Still, the opportunity exists here today for us to engage in this. We can highlight those points and bring them to Canadians. I think Canadians appreciate the opportunity to be enlightened.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Mr. Speaker, I want to thank my hon. colleague from Cape Breton for his remarks and certainly his insight as he spoke of the situation with the fishery in his riding. I have spoken on occasion in the past with one of his constituents, Josephine Kennedy.

I want to ask the member about what is tabled in the bill as well as what has gone through the economic action plan. It is almost as if there is a strategy, a gamble, by which some people will be excluded from certain programs.

Specifically, the member spoke of the lobster program, which is a valid point, but we also want to talk about community infrastructure. The smallest of our communities are unable to take part in many of these initiatives, one being the RInC program, the recreational program that is 50:50. The smallest of the communities are unable to come up with their half of the funding. Therefore after being told they are approved for $100,000, it is yanked from them, similar to the lobster program where the take-up was.

I would like to get the member's thoughts on where that money should be going, how that program should find its way through to the end, the lobster program, and also about the smaller communities in his riding.