This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.
Jim Flaherty Conservative
This bill has received Royal Assent and is now law.
This is from the published bill. The Library of Parliament often publishes better independent summaries.
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.
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.
The Deputy Speaker Conservative Andrew Scheer
Resuming debate, the hon. member for Burnaby—New Westminster.
Peter Julian NDP Burnaby—New Westminster, BC
Mr. Speaker, I am pleased to rise to speak to Bill C-9, the budget implementation bill. The misnomer of course is the subtitle, which is “Jobs and Economic Growth Act”. I think a number of speakers from this corner of the House, from the NDP, have pointed out how inappropriate that term is, given that the current government has absolutely no fundamental economic approach, no industrial policy, and no real attempt to create jobs and prosperity for the middle class. What the government loves to do, as members well know, is just shovel money off the back of a truck to bankers and the richest of Canada's CEOs. That is the government's attempt at economy policy.
In this corner of the House we actually believe in sound economics and a fundamentally economic approach that includes an industrial policy, that includes building export markets abroad by providing the same supports that our competitors are providing to their export industries. So, we have different approaches.
I would like to say that Canadian values and Canadians are much closer to where the NDP is going than what the Conservatives are offering in this budget implementation bill.
As I mentioned previously, this should be called the “everything but the kitchen sink act” because what the government has done is thrown in a whole range of inappropriate measures into this bill.
Is this in keeping with where Canadians want to go? Of course not.
Do Canadians want to see Canada Post gutted in its ability to provide services across the country? Of course not.
Do Canadians want to see punitive softwood tariffs imposed that would hit the provinces of Saskatchewan, Manitoba, Ontario and Quebec? Of course not.
This would force more mill closures and more job losses. We had the softwood sellout that killed 20,000 jobs across the country. The budget implementation bill would continue that tradition among the Conservative government budgets and policies of killing our softwood jobs in this country.
What this bill would also do is legalize the employment insurance theft that took place. This is $57 billion of money that was taken from Canada's middle class, Canada's workers, by the former Liberal government, a practice continued by the Conservative government. This was money that Canadians paid into an employment insurance account as an insurance policy against loss of wages.
Yet, what this budget implementation bill would do is legalize that theft. It is quite simple. It is as if we rob a bank and then afterward we change the law to say that robbing banks is okay. Well, robbing the employment insurance fund was robbing Canadians, robbing unemployed Canadians. For the Conservatives to offer the legalization, the retroactive legalization of this theft, whether it occurred under the former Liberal government or the current Conservative government, is equally inappropriate. I believe Canadians will punish the Conservatives when they get the opportunity to voice their disapproval on what is a fundamentally irresponsible and dishonest act.
What this bill would also do is centralize control in Ottawa the environmental assessment process. We have seen this with other Conservative ministries. We have seen how the Conservatives have tried to centralize control in Ottawa, that growing sense of entitlement of the Conservative government. We have certainly seen it perhaps most particularly just in the actions of the last few weeks.
However, the centralization of control, putting into the hands of very few people, or one or two ministers, the ability to determine whether or not the environment is protected in various parts of the country, again, is something that conflicts with basic Canadian values. Canadians are a fair people. Canadians want to see increased protection of the environment, not decreased protection.
What this budget bill would do, the everything but the kitchen sink bill thrown in, in addition to all of these other measures put into this completely inappropriate omnibus bill, is simply allow the Minister of the Environment to dictate the scope of environmental assessments or whether they even occur at all.
For my province of British Columbia, perhaps the worst aspect of this budget implementation bill is that it would compound the incredibly unfair redistribution of taxes through the HST. In my province of British Columbia, HST is a hated word, an epitaph. The B.C. Liberal government is on the retreat and desperately falling in the polls because of what it has done. What it has done is restructured taxes. It has given corporate CEOs another free ride, and it is saying to the average family in British Columbia that it is going to pay $2,000 more a year to supplement this tax-free ride that is being given to the corporate bigwigs.
It is $2,000 at a time when British Columbia has been hard hit by incredibly inappropriate economic policies, both by the Conservative government and also by the B.C. Liberals. To force B.C. families to pay $2,000 more out of pocket so that corporate bigwigs can have an even longer tax-free holiday is absolutely inappropriate.
What we have seen over the last few days shows the willingness of British Columbians to fight back. In places like the Peace River Country, which is certainly not a hotbed of the NDP, we have had hundreds of British Columbians lining up to sign the referendum question, basically a petition to force a referendum on the HST. Those names have been coming in so quickly that Peace River is virtually finished in meeting the threshold to force that referendum.
In places like Delta, we have had 1,000 people out at community meetings. Right across the province, Vancouver Island, the Okanagan, and the lower mainland, we are seeing a record level of support to sign the petition to force the referendum and to force back the federal Conservatives from their incredibly unfair attempt to give corporate bigwigs a tax-free holiday and force ordinary British Columbians to pay more.
The budget implementation bill just compounds that problem by enlarging the HST into other areas like financial services. It is like the Conservatives have completely lost the ability to understand British Columbians. They just do not listen to British Columbians anymore. As far as the Conservatives are concerned, as we heard from one of the budget speeches that was made by the Conservatives, Canada basically ended at the Rocky Mountains.
That inability to understand British Columbians and their belief in having a fair tax system, and their abhorrence of unfair redistribution of taxes to penalize the average B.C. family $2,000 while giving corporate bigwigs a tax-free holiday, is something that will cost the Conservatives quite dearly whenever that next election occurs. Whether it is this spring or next fall or next year, there is no doubt British Columbians will punish the Conservatives for refusing to listen to them.
In the meantime, British Columbians are lining up to sign the petition. There is no doubt we will see a referendum in British Columbia that will cut the HST.
The B.C. Liberals have been pointing their fingers at the federal Conservatives and saying that if the HST bill is not passed in the B.C. Legislature, the Conservatives are going to doubly punish British Columbians. I would just caution the Conservatives. British Columbians are already fed up. They are angry enough at Conservatives.
If the idea of the federal Conservative government is that it is going to punish British Columbians and make them pay more if this bill does not pass the Legislature, I would say that they will see a degree of anger and rage against these federal Conservatives that has never been seen before in British Columbia.
I would be inclined to say every single Conservative seat in British Columbia would be put in jeopardy if the Conservatives are foolish enough to threaten British Columbians by saying that it is going to impose an additional 5% PST on top of this 12% HST unless the bill is passed in the Legislature. That is a warning that I think all British Columbians will be delivering to Conservatives in these coming days.
With all of these inappropriate measures, given what Canadians and British Columbians are living through, there is no doubt that the strong B.C. caucus of federal New Democrats will be voting against this budget implementation bill. It does nothing to address the fundamental economic challenges that we are facing and nothing to help the middle class in British Columbia and elsewhere in Canada.
Larry Bagnell Liberal Yukon, YT
Mr. Speaker, I wonder if the member would comment on the process for a minute, getting away from content and into a wider vision of process. He made a good comment about process, what obviously should not be illegitimate in the budget implementation bill, just like last year with the Navigable Waters Protection Act and pay equity, where the government did the same trick.
The member is quite experienced on another process issue. In a normal government situation, policy would come from expert bureaucrats. The government would take that policy and make bills. It then would have programs evaluated and spend a lot of money for the purpose of seeing whether the programs should go on.
However, it is backwards with the current government. The recommendations coming up, for instance, from the experts in justice are totally ignored in its crime bills. It does the exact opposite of what its officials are recommending. When it gets excellent evaluations for programs, such as the Aboriginal Healing Foundation and the Canadian Foundation for Climate and Atmospheric Sciences, the government shuts these two programs down in this budget, laying off all those experts who are doing great work. That is a great economic action plan.
Would the member like to comment on the process of the government?
Peter Julian NDP Burnaby—New Westminster, BC
Mr. Speaker, that is the fundamental problem that we are seeing with the Conservative government.
The member for Yukon may disagree with me on this but I believe that the Liberals were thrown out of government because of corruption and their inability to respond to ordinary Canadians across the country.
The Conservatives made a series of promises that they promptly broke. One of their fundamental promises was transparency and due process in Parliament, and they have completely betrayed Canadians who voted for them on that basis.
We are seeing as many scandals as we saw under the former Liberal government but, arguably, the Conservatives are much worse when it comes to secrecy, central control and the inability to provide for access to information. The Information Commissioner has given them an F on access to information, and that was one of the fundamental promises that the Prime Minister made when he was elected to government.
Paul Calandra Conservative Oak Ridges—Markham, ON
Mr. Speaker, we have been hearing a lot throughout this debate from the Liberals about why they were such a failure in government, all the policies they were unable to enact, why they were so unsuccessful as a government and why Canadians ultimately turned to a new government that would cut taxes, invest in Canadians' priorities and focus on jobs and the economy.
We have also been hearing throughout this debate a lot of the policies that the extreme left-wing coalition opposite would have introduced had they ever gotten the opportunity to govern in this country.
I wonder, though, if he could shed some insight into why his Liberal-led coalition partners are actually voting in favour of this budget and other budgets and why they continue to allow our good government to do what Canadians want, which is to focus on the economy and jobs. If, as they have been saying, things are so bad, why would they be voting in favour of it?
Peter Julian NDP Burnaby—New Westminster, BC
Mr. Speaker, I will not comment on the Liberals voting for this budget and supporting and propping up the Conservatives over the last four years. Canadians have already cast their judgment on the Liberal Party, which is why it has collapsed in the polls and why it is non-existent west of Toronto. Canadians have had their say.
What I would like to do is respond to the comments about the Conservative government being good. He used the word “extreme”, which is very appropriate in describing the Conservative government. The Conservative government, yes indeed, is extreme, extreme in its betrayal of the fundamental promises it made about transparency and respecting democracy, and extreme in its sense of entitlement.
The NDP had to stop the Minister of National Defence from taking a $100,000 joyride to Vancouver when commercial flights were available. If the NDP had not intervened, $100,000 would have been splurged on a 10-hour joyride. We have seen that sense of entitlement from other ministers as well. Some of the ministers have had to resign and some ministers should resign. The Conservative government is an extreme government.
Christiane Gagnon Bloc Québec, QC
Mr. Speaker, today I join the debate on Bill C-9, the Jobs and Economic Growth Act, which should really be called the Budget Implementation Act. This bill is about implementing the last budget. Since the Bloc was against the budget, it is against this bill on jobs and economic growth, or rather this budget implementation bill. The name has been changed to give the impression that something is actually happening and something new is being put on the table.
There are many reasons for our position. One need only think of the manufacturing and forestry industries, successful industries in Quebec, which are being left to their own devices. Jobs could have been saved in many regions where there have been layoffs and plant closures. For five years these industries had been asking the government to take action and help them so they can purchase new equipment or harvest the forest differently, for example. The manufacturing industry was also faced with having to restructure companies.
The government therefore released the amount of $170 million, but what shocked us is that it was able to find $10 billion for the automotive industry. The forestry industry, which is an important industry in Quebec, was thus suffering, since the $170 million had to serve the forestry industry all across Canada. We are really talking about crumbs here. The lack of sensitivity toward Quebec was obvious; nothing was done to save this industry. Yet for the automotive industry there was no problem, and they could find the money, that $10 billion, to save it.
One need only think of another priority: equalization. The Prime Minister made a commitment in the 2005-06 campaign to change the equalization formula, and in particular, not to do so unilaterally. But he did the opposite. The change he made to the equalization formula created a shortfall for Quebec. The loss was $1 billion for last year alone, and every year it will grow by $350 million.
So we have reasons not to vote in favour of this budget implementation bill. These are not small amounts. Added up, they total billions of dollars. Quebec finds itself left out of this government's priorities.
Furthermore, the calculation of equalization for Quebec takes account of the revenues of Hydro-Québec, yet the calculation for Ontario does not take account of the revenues of Hydro One. There, once again, is the double standard. The automotive industry has favoured Ontario. To repeat, calculation of equalization for Quebec takes account of the revenues of Hydro-Québec, but in the case of Ontario, it does not take account of the revenues of Hydro One. The effect of this is to increase the relative wealth of Quebec and decrease its equalization payment. For Quebec, the shortfall in this regard comes to $250 million per year. How does this government explain this double standard?
Harmonization of the sales tax is another reason to vote against this bill. Here too, the policy of the double standard prevails. Whereas Ontario, British Columbia and the three Atlantic provinces were compensated for harmonizing their provincial sales tax with the GST, the government refuses to do the same for Quebec. The amount of this compensation is $2.2 billion per year. The Conservative government alleges that there has been no harmonization. Many questions have been asked in the House. The Bloc Québécois has been very persistent on this demand for compensation, but it always receives the same response.
Yet, certain documents recognized that the Quebec sales tax and the GST had been harmonized. Then, all of a sudden, this process was no longer called harmonization. The QST and the GST were harmonized in 1992, and a unanimous motion was passed by the Quebec National Assembly. As I mentioned earlier, in its 2006 budget, the Conservative government itself recognized that the QST and the GST had been harmonized.
This was recognized in the 2006 budget but now that the time has come to deliver the goods and give the money to Quebec—particularly considering that the government did it for other provinces—it no longer wants to give back to Quebec what it is entitled to for harmonizing its tax with the GST.
The government has changed its mind. It refuses to compensate Quebec to the tune of $2.2 billion, because it is trying to put pressure on Quebec so that Canada will collect the harmonized tax itself. But Quebec has been doing it since 1992. This is nothing less than blackmailing Quebec taxpayers, who are being asked to tighten their belt. But the fact is that this money is owed to Quebec. This is another reason why we voted against the budget.
As for the environment, we are nowhere near making the green shift. We are well aware that the Prime Minister's performance in Copenhagen was mediocre. Instead of behaving like the leader of a country that seeks to be a model and encourage other nations to follow its example, this government has decided to contribute to the wealth of oil companies and to oil sands development in Alberta. Again, this is happening at Quebec's expense.
As I mentioned, the government's last budget provides $1 billion for the nuclear industry, compared to $51 million for a few tepid environmental measures. As we know, the nuclear industry is primarily located in Ontario, not in Quebec.
We can see that the choices made by this government do not allow Quebec to develop at an adequate pace.
Moreover, there is nothing in the budget to help reduce greenhouse gases at the source. However, there is a lot for oil companies, through tax benefits and also the absence of a carbon tax.
The Bloc would also have liked to see in the budget a recognition or compensation program for industries that have made efforts to reduce their greenhouse gas emissions, including Quebec industries, such as its manufacturing industry which has reduced its greenhouse gas emissions by 24%.
The Bloc proposed many other measures for the environment, such as allocating $500 million, over five years, to a fund for green energy initiatives, and developing a plan to promote electric cars and the electrification of transportation. Obviously, we are talking about huge investments of billions of dollars.
Preference has also been given to tax havens. This budget very certainly does not do what was announced to combat tax havens. That was also something the Bloc Québécois had called for. The government is engaging in double talk. On the one hand, it says it wants to tackle tax havens, and on the other hand, it uses this bill to open loopholes in the Income Tax Act to allow corporations not registered in Canada not to pay their fair share of tax. That is a double standard. We would have liked to see a second recovery plan in this budget, to get the economy going. There is nothing in this budget that suggests that the right decisions have been made.
The Conservatives have decided to eliminate tax withholding for certain non-resident corporations that sell their assets in Canada, which many experts in the field say will open the door wide to tax evasion. So this facilitates tax evasion.
We know that that there are also some corporations that use tax havens to avoid tax. The figures from the auditor general tell us that corporations would save as much as $600 million a year by doing business in tax havens.
The Bloc Québécois therefore urges the government to stop talking and start acting, instead of proposing pseudo-solutions made up of empty words as the Conservatives are doing. The Bloc Québécois has been proposing concrete solutions since 2005 to do away with access to tax havens like Barbados and eliminate the double deduction of interest.
The government has done nothing in this regard and it is plain that the bill confirms the Conservative government’s desire to protect rich taxpayers at all costs, among which we find the banks and big corporations. This shows contempt for workers in our industries, including the forestry industry, which are experiencing hard times in Quebec. Right when those industries need help the most, they are not offered a hand.
We could also talk about the reduction and elimination of positions in the government. The adjustments made are merely cosmetic. A large majority of the positions they said they want to eliminate, 90%, had been vacant for several years.
So it is ridiculous to offer to reduce positions that have been vacant for several years. The measures proposed by the Conservative government to cut operating costs in the federal bureaucracy are very insignificant, when we compare them to the stringent recommendations made by the Bloc Quebecois.
We had proposed some $5.4 billion in savings per year. There are several reasons for this, and I think they are justified.
We held consultations across Quebec and our new finance critic, the member for Hochelaga, also heard other suggestions. Numerous people told us we were not heading in the right direction.
Jim Maloway NDP Elmwood—Transcona, MB
Mr. Speaker, I have a friendly question and request for the member. Bill C-9 enables a voluntary code of guidelines regarding credit cards and debit cards. The government is constantly siding with big banks and big business against consumers.
Canada's first air passengers' bill of rights was opposed by all the Conservatives, who are more interested in protecting the interests of Air Transat and Air Canada. All opposition parties, the Bloc, the NDP and the Liberals, voted for the bill at second reading. However, at the transport committee, the Bloc critic turned against Quebec consumers, and he is now supporting the Conservatives to kill the bill.
I know most of the Bloc members are very progressive in their outlook politically. Could the member investigate why the Bloc critic has turned his back on Quebec air passengers and sided with the Conservatives? I think that would be very helpful, because I thought we had a very good understanding with all three opposition parties supporting the bill. Something went wrong at committee, and I am very curious to know why it happened.
Christiane Gagnon Bloc Québec, QC
Mr. Speaker, by voting against the budget implementation bill today, the Bloc is reflecting the entire population's disappointment with this budget that does nothing for ordinary people. It is a budget primarily for the richest people, the banks and big business.
The Bloc is watching very closely. The context of committee discussions must also be watched. I was not there, but we study each and every decision that is made in committee or by the parties. Quebec's political will must also be considered.
If the Bloc members feel that a measure is advantageous for Quebec, they will often vote with the Liberals or the New Democrats or the government. We are not dogmatic. We are realists when it comes to Quebec's situation, which we know so well.
We also present the unanimous consensus of the National Assembly on a number of issues. So I cannot respond to the member right now, but I am sure that my colleague, the transport critic, has studied this issue. We have to look at the details of the proposed measures.
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Mr. Speaker, my colleague gave an excellent speech. She said that the Bloc Québécois cannot vote in favour of the budget. She gave the example of the more than $10 billion provided to the automobile industry, which is highly concentrated in Ontario. She added that a measly $170 million was given to the forestry industry, which is a fundamental part of the Quebec nation.
The Conservative government has recognized the Quebec nation, but not in a concrete way. It was recognized, but only in words. It is absurd that the budget does nothing for the numerous single-industry municipalities and villages that depend on forestry. The budget does nothing to help this industry either.
I would like my colleague to comment on this.
Christiane Gagnon Bloc Québec, QC
Mr. Speaker, I thank my hon. colleague.
Indeed, it is absurd and very shocking that the Conservatives, who promised to be fair to Quebec and who recognized the Quebec nation, would present an empty shell. It makes no sense; it is absurd.
The $10 billion they managed to find for the auto industry is 57 times more than the $170 million invested in the forestry industry. They found $10 billion, but Quebec receives a pittance. It is ridiculous. They recognized the Quebec nation, but what does that mean—
Francis Scarpaleggia Liberal Lac-Saint-Louis, QC
Mr. Speaker, as I was studying the budget document in preparation for this speech, like others in the House, I found that the title is a bit of a misnomer. The title reading “Leading the Way on Jobs and Growth” perhaps should be, in my opinion, “Missed Opportunities: Letting Others Take the Lead”. That would more appropriately describe this budget.
The reason I say that is that the budget is a missed opportunity to begin or, in some cases, continue laying the groundwork for solutions to many of the problems we face today and will face in the future. As my main area of interest as a member of the environment committee is water policy, I of course look at the budget through the lens of water. A good starting point in terms of comparing the weaknesses of this document to what it could have been would be to look at the Ontario throne speech, which was delivered only a few short days ago and which, contrary to the throne speech that was delivered here on Parliament Hill on March 3, has only half as many words yet says so much more. Let me read a few lines from that throne speech:
As part of its Open Ontario Plan, your government will introduce legislation that will build on Ontario's expertise in clean water technology.
The Water Opportunities Act would lay the foundation for new Ontario jobs and make our province the North American leader in the development and sale of new technologies and services for water conservation and treatment.
The Conference Board of Canada estimates the global market for water technology at more $400 billion US per year—and doubling every five to six years.
The question becomes: Why do the federal budget and the throne speech that preceded it not include visionary statements such as that? The reason is that the government does not believe in vision. It believes that vision is Liberal philosophy's evil twin and therefore does not think in visionary terms. When we do not think in visionary terms, we miss opportunities. There are things staring at us that we cannot see, and that is the problem when we do not have a vision.
Here is an example of how the government has eschewed the whole notion of vision. I presented a motion in the House a few years ago calling on the government to create a national water strategy. Now if the government were thinking in terms of a national water strategy, it would see the opportunities for actions like those the government of Ontario has mentioned in its throne speech. The motion passed because I guess many of the members on the government side did not feel they could look their constituents in the eye if they voted against such an obvious and important motion.
However, that was three years ago, and on the government's website today there is no national water strategy. There is a PDF file called “Federal Water Policy”, but if we click on that file, we see that the national water policy is the Pearse report that was commissioned in 1987 by the Mulroney government. As a metaphor for the way the government looks backward, just go and look at the website and see that it has posted as its national water policy a task force report from 1987. I think that says a lot.
The budget also forgot to mention the St. Lawrence River, which is one of the 15 largest waterways in the world. Its watershed occupies one-third of the territory of the province of Quebec. About 40% of Quebec's municipalities draw their drinking water from the river, and more than 75% of Quebec's industrial facilities, including its large hydroelectric plants, are located on the St. Lawrence River. Finally, the St. Lawrence valley contains 70% of Quebec's population, yet we do not hear a word about the St. Lawrence River. Why is it particularly important in March 2010 that the budget mention the St. Lawrence River?
It is because the fourth installment of the St. Lawrence action plan, which extended from 2005 to 2010, ended on March 31, 2010, and there is still nothing to replace it. It is one of the most important rivers in the world, one of the most important rivers in Canada and North America, and the government has not even begun to think about extending the St. Lawrence action plan. That is what happens when we do not have a visionary mindset. We do not see the obvious, and that is very unfortunate.
The budget also will give extraordinary powers to the Minister of the Environment to undermine environmental assessments in Canada. Let me give the House a bit of background on this.
There is a practice going on, especially in northern mining communities, where mining companies, to save money, instead of building impoundment areas for mine tailings, take those mine tailings and dump them in freshwater lakes, thereby killing the lakes. This has been permitted by part of the metal mining effluent regulations, which allow a mine to be listed on schedule 2 and therefore be given permission to use a lake basically as a tailings pond.
Ever since the government took power, the number of mines that have been added to this list has exploded, while the opposite has happened in the United States. One of the first things the Obama administration did was to put on hold some 200 coal mining permits from companies that wanted to dump waste in streams and wetlands. While the Obama administration is protecting its water bodies, in Canada the government is rushing to destroy them, and that is really unfortunate.
The solution to that would be to make environmental assessments stronger. In the past when a project went to a federal department for environmental assessment, the Department of Fisheries and Oceans in this case, it would split up the project into different pieces and then it would do a cursory assessment of each piece. If the project were looked at as a whole, a much more comprehensive assessment, maybe even a panel assessment, would be needed. But officials in the Department of Fisheries and Oceans were not doing that. They were in fact undermining the principles of environmental assessment.
What happened? About a month ago some environmental groups took the government to the Supreme Court of Canada and won. How did the government respond to that? In the budget it gave the Minister of the Environment the legal power to basically reverse that Supreme Court decision. The minister would now have the power to define the scope of a project. The minister can now do what fisheries officials were doing before. This was found to be against the spirit and the letter of the Canadian Environmental Assessment Act when the Supreme Court looked at the issue.
Now we have a government that is going to make sure mining companies can still use freshwater lakes as dumping grounds for toxic mine tailings, and that is an awful development. I hope more attention will be given to that by environmental groups that are already doing good work on trying to underscore this problem and also by the media and other parliamentarians.
The budget mentioned the government would be investing in a RADARSAT project called the RADARSAT Constellation Mission, which is essentially a process for linking up satellites. That is all fine and well, but the government has been dragging its feet with respect to RADARSAT on another issue, a water issue.
Ducks Unlimited, in partnership with Environment Canada and the Canadian Space Agency, had begun phase one of what is called the Canadian wetlands inventory. This is a project to map all of Canada's wetlands. The reason it is important is that Canada contains about 25% of the world's wetlands, more than any other country in the world. Wetlands are very important to us. They are an essential part of the hydrological cycle. This project had begun but was then starved of funding by Environment Canada, so it never went beyond the point of establishing the methodology for mapping Canada's wetlands.
Why did the government not take the opportunity in the budget to mention that it would relaunch this project and that it would fund phase two? This is an extremely important issue, especially in the oil sands. Last week we found out that the oil sands companies now say that they cannot afford to restore the wetlands they are destroying even though they previously made commitments to do so.
Daniel Paillé Bloc Hochelaga, QC
Mr. Speaker, I would like to draw on the extensive parliamentary experience of the hon. member for Lac-Saint-Louis, who has much more experience than I do. He has heard many political speeches, dealt with many strategies and listened to members on all sides of the House.
I listen to the speeches given by some of his colleagues and find them very interesting. I even agree with them in some cases. I know the Liberals are speaking out against the budget, but will vote to support it. I probably do not have enough political experience to understand that contradiction. They see that this budget is really bad, which is why we will be voting against it, but they are incapable of bringing down the government.
I really have to wonder about this. Perhaps my colleague can draw on his political experience and enlighten me.
Francis Scarpaleggia Liberal Lac-Saint-Louis, QC
Mr. Speaker, I would be pleased to enlighten my colleague and I welcome him to the House of Commons.
He is incorrect when he says that the Liberal opposition voted in favour of the budget. We voted against the budget.
I would like to remind the hon. member that the parties that come into power, here in Parliament, are parties that have principles and that listen to the public. If we want the power, we have to listen to the public. The public was quite clear in telling us that now is not the time for an election. That gives the Liberal opposition time to prepare to take power eventually. It gives our party time to develop Canada-wide strategies and visions to offer to all Canadians in the next election.
To answer my colleague's question more specifically, I would add that a number of the measures in the current budget will be overturned by a more enlightened Liberal government.