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

[Claude Gravelle, NDP, Nickel Belt, ON]

Madam Speaker, I rise to speak in support of splitting Bill C-9, the government's latest Trojan horse bill.

Once again, the two core issues at hand are transparency and accountability. It seems that every time we turn around, we find this secretive Conservative government trying to sneak things past Canadians. It is almost as if it is allergic to transparency and accountability. Shine the light and the government will run for cover.

This allergy is quite severe. The Conservatives have sneaked into their budget implementation bill clauses that would permit them to sell Atomic Energy of Canada Limited for a mere pittance and weaken Canada Post's ability to provide universal affordable service to Canadians.

On the first issue, the sale of AECL, it is important to note that while the government is busy bragging about its supposed fiscal prowess, it wants to sell a publicly owned corporation, which has benefited from $22 billion of public investment, for possibly a few hundred million dollars. It is the Mulroney era all over again, ballooning deficits, mismanagement and poor public policy. Once again, secrecy surrounds this issue. We need public consultation and we certainly need more substantive debate on the merits or risks of selling these crown corporations.

I call on my Liberal and Bloc colleagues to support the NDP in an attempt to remove these heinous elements from Bill C-9. A budget bill should be about the budget, point final, as we say in French. Why is the government so opposed to acting in the best interests of Canadians? We have seen this behaviour when it comes to foreign investment in Canada as well.

That is why the NDP proposed three key ways of strengthening the Investment Canada Act: one, lowering the threshold for public review; two, holding public hearings in affected communities when a Canadian company is being sold; and three, publishing the reasons for the government's decision to approve a takeover, as well as the conditions that a foreign company must meet in order to get federal approval.

The decision to sell AECL cannot be taken lightly. We are talking about nuclear technology. As signatories to the nuclear non-proliferation treaty, we have committed to do our part in preventing the spread of nuclear weapons and nuclear fuel. We have also committed to ensuring nuclear technology does not get into the wrong hands. We know that India is a nuclear superpower today, in part, because it bought several nuclear reactors from us and used that technology to develop nuclear weapons.

Surely, keeping AECL as a crown corporation would give Canada greater control over how and what we do with civil nuclear technology. Should we not have a more substantive public debate on this issue? We believe that the risk of selling this corporation warrants much more debate and separate legislation.

The second element noteworthy of discussion is the removal of Canada Post's exclusive privilege to collect, transmit and deliver international letters. Denis Lemelin, president, Canadian Union of Postal Workers, stated the issue perfectly when he presented to the Standing Committee on Finance on May 11. He said:

In Canada, letter mail is regulated for a reason. Canada Post has an exclusive privilege to handle letters so that it is able to generate enough money to provide affordable postal service to everyone, no matter where they live in our huge country. This privilege includes both domestic and international letters.

We know that Canada Post is already forgoing revenues to illegally operating international remailers. If we erode Canada Post's exclusive privilege with respect to international mail, there is no doubt the remailing business will grow in Canada and Canada Post will lose more of its international letter business.

A significant portion of my riding of Nickel Belt is made up of dispersed rural communities. Each community is rich in its cultural makeup and traditions. Each community is a gem. I am so honoured to represent these communities. My riding is a perfect representation of Canada as a whole. We have so few people relative to the size of our geography and, as a result, there is a cost to ensure that all Canadians have relatively equal access to mail service.

Canada Post serves a purpose that we deem important to us and to our communities. The government's move to undermine Canada Post's exclusivity in the area of international letters is the beginning of the deregulation of Canada Post. It is betraying the wishes of Canadians and it is jeopardizing that corporation's fiscal capacity to deliver mail remotely at a reasonable cost.

In addition, the government's own strategic review of Canada Post found that there was virtually no support for deregulation. The December 2008 “Strategic Review of the Canada Post Corporation: Report of the Advisory Panel to the Minister” noted:

There appears to be little public support for the privatization or deregulation of Canada Post, and considerable if not unanimous support for maintaining a quality, affordable universal service for all Canadians and communities.

In fact, municipalities were especially adamant in their opposition to deregulation. Five hundred and forty-three of the 653 municipalities that made submissions during the strategic review of Canada Post said that they opposed deregulation. Another 26 municipalities said that they were concerned. Only one municipality supported deregulation.

Municipalities oppose deregulation because they understand the nature of our country. Rural and remote parts of our country account for over 90% of our land mass but only one-fifth of our population. We have a unique characteristic in that we need to equip our public postal corporation with the fiscal capacity to serve these regions at a fair cost to the citizens.

Here we have an instance where the company does not want it, the workers do not want it, Canadians do not want it and even municipalities do not want it. What does the government do? It sides with the remailers and their lobbyists. It does not have the gumption to bring it in a stand-alone bill. It sneaks it into the budget bill. What a disgrace. It can still do the right thing and split this bill. It is not too late.

[Bonnie Crombie, Liberal, Mississauga—Streetsville, ON]

Madam Speaker, the member for Okanagan—Shuswap said that the government was attempting to legitimize remailers. Obviously, they were existing illegally and by imposing them into the budget bill does not really legalize them, but it does not make it right either. We know that Bill C-9 supercedes an upper court decision that confirmed Canada Post Corporation's exclusive privilege.

We know as well that deregulation will lead to compromised service in rural areas and in some urban areas as they close outlets. It will lead to lost jobs and increased costs. The government tell us that there is a service charter in place, a moratorium on closings in rural areas, so we should not worry about it. However, we know that if it had really meant it, it would have legislated the moratorium. Therefore, it is as worthless as the paper it is written on.

I do not even want to go toward AECL, which the member also referenced. This is proprietary technology that all Canadians should be proud of and a barnburner sale is going to take place. It will be the Avro Arrow of our generation.

As the member said, why is the government not willing to sever out these portions of the bill? Why is the government not willing to open up debate on deregulation and privatization to full disclosure and fulsome and mindful debate? Why will it not sever out remailers and AECL for a full debate?

[Claude Gravelle, NDP, Nickel Belt, ON]

Madam Speaker, the government does not want to split the bill to take out Canada Post and the AECL because it knows it will lose that debate. It has already lost it twice.

As far as remailers are concerned, as the critic for the Liberal Party for the post office, she knows full well that there are remailers existing in Canada that are doing it illegally.

Will the member support the NDP motion when it comes time to vote on this bill and defeat Bill C-9 so we can bring back a real budget that excludes all of the heinous issues that the Conservatives have put in this bill?

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, this morning, the parliamentary secretary told the House that everything was going well and that according to the OECD, Canada has had a major economic recovery, which means more revenue for the government. When the government has more revenue, it should be able to provide more support to those who need it most. The government is responsible for redistributing our collective wealth. It needs to provide more support to the unemployed and improve postal services instead of introducing Bill C-9, an omnibus bill that attempts to slip in reduced access to services. The government could be providing more services to the public, but it is doing the opposite.

I would like my colleague to say a few words about the Conservatives' philosophy. They are spending $1 billion on three days of security in Toronto, but they are not giving a dime to support the unemployed, seniors and the less fortunate in our society. What is more, they are not investing anything in the environment, which is supposed to be a top priority for the G8 and the G20.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Speaker, I want to thank my Bloc colleague for his good question.

He is absolutely right. The government is going to spend $1 billion to ensure the safety of the heads of state who are coming to Canada for three days and we do not know exactly why.

He raised another good point: employment insurance. The deregulation of Canada Post and the sale of Atomic Energy of Canada Limited are going to result in more layoffs. The private companies that are going to buy these corporations for just a few million dollars will want to make more and more profits and it is the workers who will be the first to pay the price.

[The Acting Speaker, Denise Savoie]

It being 1:15 p.m., pursuant to order made Thursday, June 3, 2010, all questions necessary to dispose of the report stage of Bill C-9 shall be put forthwith, without further debate or amendment.

The question is on Motion No. 3. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Denise Savoie]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Acting Speaker, Denise Savoie]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Acting Speaker, Denise Savoie]

In my opinion, the nays have it.

And five or more members having risen:

The recorded division on the motion stands deferred.

The question is on Motion No. 4. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Denise Savoie]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.