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

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Madam Speaker, I am pleased to speak today to Bill C-9, the budget implementation bill. The NDP is opposed to this bill for a number of reasons. My colleagues have addressed a number of topics, but since I am the employment insurance critic, I will focus on that part. For the record, that is not the only thing I am opposed to in Bill C-9. I could go on about many other points.

Bill C-9 includes certain amendments to legislation. The Canada Employment Insurance Commission is continued. It consists of four commissioners. A new employment insurance operating account has been created in the accounts of Canada. This new account was created because the old account in the consolidated revenue fund has been closed.

The Conservatives boast about creating a new employment insurance operating account that will open with $2 billion. They also boast about not being like the Liberals and not dipping into the employment insurance fund.

This is 2010 and the Conservatives have been in power since 2006. Between 2006 and 2010, who are the mysterious people who stole from the EI fund? It had to be someone. Who stole from the fund between 2006 and 2010? We cannot blame the Liberals for everything. Not everything is their doing. They stole from the EI fund between 1993 and 2006. It cannot be denied; it has been said often enough.

Ironically, during a question period, the Minister of Finance said:

Mr. Speaker, as I said earlier, the plain fact is that the previous Liberal government, in the middle of the 1990s, siphoned off the $58 billion to $60 billion from the EI fund and put it into the consolidated revenue fund. People do not have to take my word for it. Read what professors—

I remember the words he used, but they were changed in Hansard. He said the Liberals stole between $58 billion and $60 billion. “To steal” and “to siphon off” mean the same thing.

Normally when a thief is caught, he has to return the stolen money to its rightful owner. There is more than $57 billion in surplus in the EI fund. I did not make this up. The Minister of Finance said so in the House of Commons on March 29 .

The blues show that that same day, the Prime Minister rose and acknowledged that the Liberals had stolen money from the EI fund. If money is stolen and then recovered, it must be returned to the people it was stolen from. Who are those people? They are the same people to whom the government is bragging about cutting taxes to major corporations. The government is cutting taxes for the corporations and at the same time wants to increase EI premiums by 15¢ per $100 of insurable earnings. So it is a tax for workers. But they claim to want to lower taxes.

The government does not believe in taxing people, and the previous government pillaged the employment insurance fund. The Conservatives continued this from 2006 to 2010. Now, with a bill, they are legitimizing this pillaging and are wiping out the government's debt, the surplus belonging to the workers. Now, workers will pay an additional $223 per year for employment insurance contributions and employers will pay an additional $312.

The government lowered taxes for workers by $100 and patted itself on the back, but it will tax them $212. That is what the government did. It is a tax on workers because workers and employers already paid into the employment insurance fund. They already put money into the employment insurance fund.

The member for Acadie—Bathurst is not the only one saying it. In the question I asked, and I think it is worth repeating, I mentioned that the Canadian Federation of Independent Business recently conducted a survey that showed that 82% of Canadian business owners wanted to see the federal government freeze future increases to EI premiums until the $57 billion surplus has been fully paid back.

Workers are not the only ones saying that they want the money that was taken from them. Business owners are saying it too: 82% of business owners say that they want the money that was taken from them. They are not asking for a cheque for $57 billion. What they want is for their premiums not to increase. They are saying that if the government needs money, it should use some of the $57 billion that it took from them. The government borrowed that money. If it did not steal it, then it should return it to them. If the government stole the money, then we should call the RCMP to come pick up the ministers. That is what we should do.

There are only two things that can be done. On March 29 or 30, the government acknowledged that funds were stolen. But what happened between 2006 and 2010? This same government stole money from the employment insurance fund, too. They want to use Bill C-9 to legalize this theft. But I cannot vote for a bill that would legalize such theft, the biggest theft in Canadian history.

The sponsorship issues in the past were nothing compared to the scandal perpetrated on the backs of this country's workers. It is unparalleled. This is the biggest national scandal ever: taking employment insurance premiums from workers' pay, putting it towards the budget and paying down the debt with this money. The minister acknowledged that funds were stolen but he does not want to turn around and pay back the workers and entrepreneurs. I remind the members that 82% of independent entrepreneurs tell us that they want their money back. That is what has happened.

In addition, there have been changes to employment insurance in this budget. It is all very well for them to pat themselves on the back for new bills as though they can fix everything. I will support the government bill for our people in National Defence. However, there are bigger problems. How many people in this country have cancer, heart problems, and how many need employment insurance benefits for a year but are not entitled even though they paid into them? They are only entitled to 15 weeks. Something could have been done to help workers. Something could have been put in the next budget.

There are other areas where something could be done for the workers, such as lowering the EI eligibility criteria to 350 or 360 hours rather than maintaining the current requirement of 455, 700 or 900 hours. This would help people who are not eligible for employment insurance during an economic crisis. We must not give money only to major corporations through tax cuts. We cut taxes for big business and we put workers on social assistance. Instead, we should be providing assistance to the people who helped make these corporations profitable. These companies have turned a profit a number of times. There are corporate presidents who pay themselves salaries of millions of dollars, not just hundreds of thousands, every year.

The government has turned around, taken pity on big business and given them tax breaks. It is doing the same for banks. The government says that big business and the banks need tax breaks. However, workers who lose their jobs and go on employment insurance are accused of abusing the system. They do not want workers to abuse the system. How many times has the government said in this House that if the number of hours to qualify for benefits is changed to 350, people would work only 10 weeks and receive employment insurance the rest of the time?

I find that shameful. It is an insult to workers. For example, France pays workers 75% of their income when they apply for employment insurance. If asked the question, France would reply that it respects its workers.

[Larry Bagnell, Liberal, Yukon, YT]

Madam Speaker, the member waxed eloquently on EI. He covered that topic very well. He is an expert in that area and I appreciate that.

However, I want to ask a question on a topic in another area. I know he is well versed in all areas, being the whip for his party. My question is in regard to the government's suggestion of reducing the number of people on boards to save money.

Many people have brought forward the fact that it is not going to save much money because most of those are vacant positions and it is only about 18 part-time people, so that is a red herring.

When we eliminate people from boards, usually they represent someone like the unemployed, or the province of New Brunswick, the federal government or NGOs. If we are eliminating positions, who is going to eliminate them?

Does the member have any concerns on this particular part of the budget implementation bill about eliminating positions on boards and if it will really make a difference?

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Madam Speaker, if we eliminate the people who represent the people, there is a problem. I do not think we have ever heard any workers in our country who said that boards are too big. I have heard workers say that there are $57 billion that belongs to them. If they cannot be represented, it encourages the government to hide what it is doing instead.

I think this is wrong. The labour movement and employers should be able to have a say because they are the payers. The government does not pay 1¢ to employment insurance. All the money comes from employees and employers. They should have a say about who will be on boards to represent people across the country.

It takes longer to travel from Newfoundland to Vancouver than from Montreal to Paris. Just imagine that. It is a big thing to go to France, but that is how big our country is.

I think we have to have a fair representation across the country and it is wrong to eliminate people and put them out of work the way the government is doing, but we understand that.

The Conservative government is a government that is not very transparent. We have seen that in the last couple of weeks. It wants to be transparent by eliminating people as representatives of the people.

[Jean-Yves Laforest, Bloc, Saint-Maurice—Champlain, QC]

Madam Speaker, I listened to my colleague from the NDP, who said that, sadly, the Conservative government had ignored the unemployed in its budget and had once again failed to improve the employment insurance system.

I would like to hear him on the misappropriation of $57 billion initiated by the previous Liberal government and continued by this Conservative government at the expense of the unemployed and businesses.

I find it appalling. They do not even have the decency now to give the money back to the people who have worked. Not even a portion of the money is given back to these people at a time when they need help. They are facing financial difficulties, and workers are losing their jobs left and right. Now is the time to give back the $57 billion, but the money has been squandered.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Madam Speaker, I do not know if my Bloc Québécois colleague heard me, but I spoke about that. I can speak about it again. It gives me the opportunity to say that the problem exists everywhere, not just in the Maritimes and the Atlantic provinces, as they would have us believe.

I did a national tour myself. I went all over the country, to every province. I went to Timmins, to Sudbury, Ontario, Winnipeg, Manitoba and Edmonton, Alberta. I went to Nanaimo, Port Alberni, Vancouver, Prince George and even to the Yukon. The problem was the same everywhere. All of the workers said that it was their money and that they should be entitled to it when they lose their jobs.

It all comes back to what was said in France. This is the workers' money. I am happy that they are able to get insurance and participate in the economy instead of having to receive social assistance. I tip my hat to France on this one. We need to stop insulting our workers as the previous government and today's government have done by saying that they abuse the system. These are families who are losing their pay, their income. These are children who are living in poverty. There is a good reason why 1.4 million children in this country are hungry. It is because of the previous governments and today's government, the Liberals and the Conservatives. The money should go to the workers immediately.

[The Acting Speaker, NDP, Denise Savoie]

The hon. member for Burnaby--Douglas on a point of order.

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.

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, it is my pleasure to speak on behalf of the Bloc Québécois regarding this budget implementation bill. It is no surprise that the members of the Bloc Québécois will be opposing this bill, just as we opposed this budget tabled by the Conservative government. Unfortunately, I have only ten minutes to explain to my colleagues the reasons why our party is opposed to this budget implementation bill.

The reasons are many, and each of them might require a speech of at least 30 or 40 minutes. But I shall review just a few of them in the time I am allotted. One of the reasons why the Bloc Québécois is opposed to this bill is that it confirms the desire of the Conservative government to spare rich taxpayers at all costs, including the banks and large corporations.

Earlier, during question period, our colleague the hon. member for Hochelaga and Bloc Québécois finance critic was telling us about the astronomical profits made by the banks in recent months. He mentioned profits of $5.6 billion. When it is time to look for money in the pockets of the middle class and the disadvantaged, governments, and this Conservative government—a government which, by the way, is heartless—have no hesitation about making the middle class, workers and the disadvantaged pay for the deficit.

Another reason why we are not in favour of this bill is that the measures it contains are proof of the above-mentioned desire, since corporations will not be asked to contribute to the government’s coffers. It is workers, people who cannot benefit from tax havens, people who work very hard in plants, in factories, in stores, people who often work for minimum wage, that the government will turn to. But unlike the big corporations that benefit from tax deductions, they are taxed from their first penny, and as soon as they build up a little nest egg, the government is immediately upon them with its taxes.

With regard to tax loopholes, it could be said that the government is talking out of both sides of its mouth. On the one hand, the government says that it wants to go after tax havens and, on the other, in this bill, the Conservative government is opening loopholes in the Income Tax Act to make it possible for corporations not registered in Canada to avoid paying their fair share of taxes. It is despicable on the part of the government to take this approach.

Once again in question period, we went back to the former minister of the status of women, now an independent MP, who, according to rumours here and elsewhere on the Hill, allegedly took advantage of a ministerial trip to Belize to open three bogus companies to again avoid paying income tax. We know that Belize is most definitely a tax haven, just like Barbados and certain other islands in the West Indies or some other small countries where corporations can take advantage of tax loopholes.

In Quebec, there have been two cases of flagrant fraud where small investors were literally fleeced. I am referring to the cases of Vincent Lacroix and Earl Jones. The money of the small investors who were swindled was not in the bank accounts of Vincent Lacroix and Earl Jones.

That money was hidden in countries that serve as tax havens. When they have served their sentences—I will remind members that the Bloc had asked for the abolition of release after serving one-sixth of a sentence, but the Conservatives refused—they will get out and collect their money, which is somewhere in the West Indies. They will be able to resume their princely lives, unlike ordinary investors.

There is the case of two young girls who lost their parents in a car accident. The insurance award was managed by the girls' grandfather. They literally lost everything. That is unacceptable and astounding. That is what tax havens are used for. The Bloc Québécois is anxious for the government to assume its responsibilities and ensure that those listening to us, the middle class workers, are not the only ones who pay their fair share of taxes.

There is another point I want to say a little more about. This budget implementation bill will allow the government to dip into the employment insurance fund surplus until 2014-15. Once again, as we have said many times, the employment insurance fund surplus does not belong to the government. It belongs to the workers and employers who pay premiums. In 2008, the fund reached $1.5 billion and the government cleaned it out. It helped itself to that surplus. That is completely unacceptable.

The Bloc Québécois proposed an independent employment insurance fund that would be jointly managed by workers and employers, similar to the CSST model in Quebec. If there was a surplus in the fund, the board of directors—or whatever it is called—of the independent employment insurance fund could decide which categories of unemployed workers or which categories of workers would benefit from improvements to the plan.

I see my colleague from Manicouagan nodding his head. On the North Shore, in the Lower St. Lawrence, and in Gaspésie, they have to deal with seasonal work. We need to stop calling them seasonal workers. They are not “seasonal workers”; the work is seasonal. Even if they wanted to plant99 trees and do silvicultural work in the forest when there are several centimetres of snow on the ground in February, it would not be possible. It is rare to have a winter where there is almost no snow on the ground, but either way, the ground is frozen, making it impossible. The fishing industry cannot be forced to operate in February. Charlevoix, in my riding, is a very touristy location. There are inns and beautiful sites. We would love to have the inns full in February, but that will not happen in the winter. Some tourists come to go snowmobiling, but not enough to keep our inns and lodges open year-round. So, employers are forced to shut their businesses down, or those that remain open are forced to cut staff.

With the current EI system, which is totally unfair to seasonable workers, these people are forced to experience periods of unemployment on a regular basis. That is not their choice; there is just no work to be done. So, when the working season is short, as it was last summer, these workers do not get called back to work because of poor weather conditions and do not qualify under this unfair employment insurance system. They then experience what is known as the spring gap, which they are currently going through in March and April, when benefits have run out, but it is too early to be called back to work, which will likely be sometime in May. Since it is not May yet, these people have nothing to live on.

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

Mr. Speaker, I did sense the member could have made a lot longer speech and I will give him an opportunity to continue.

The member talked about bank profits, and we know they were $15.9 billion last year, with the CEO of the Royal Bank making about $10.4 million. This was at a time when 800,000 Canadians were out of work. This was at a time when the world was slipping into the worst recession since the Great Depression.

The government essentially supports the big banks. Tara Perkins has a story in the Globe and Mail today. In essence, the Minister of Finance is pretty much an unpaid lobbyist for the banks, by the looks of it. She says, “bankers are more concerned about a number of international rule changes, and when it comes to fighting those they have Ottawa's backing”. Therefore, the Minister of Finance is fighting international rule changes on behalf of the banks at the international level.

President Barack Obama is trying to overhaul the entire financial regulatory system. Meanwhile, Ottawa is working on just minor changes.

In addition, the G7 and the G20 nations are trying to set up a fund to take care of failing banks in the future. Once again, the Minister of Finance and the government are opposed to this. They are fighting the measure on behalf of the banks.

In addition, the G7 and G20 countries are coming out with guidelines for remuneration for bank executives. Guess what? The government and the minister are opposing it on behalf of the banks. Once again, the minister is essentially an unpaid lobbyist for the banking interests in our country.

Would the member like to comment on that and offer any other insights and information about that point?

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, five minutes are usually allotted for questions and comments following a 10-minute speech. I figure that the member used 4 minutes and 50 seconds to put his question. I will therefore attempt to answer within 10 seconds.

Banks are the classic case. Tell me who feeds you and I will tell you who you will look after later. The Conservatives are more favourably disposed towards banks and oil companies because these generously feed their campaign fund. Anything that will further regulate the powers of banks and the earnings of bankers is a good thing.

President Obama warned people that after the health reform, they will have to seriously consider reforming banks, which are making absolutely obscene and unacceptable profits, and I am all for such reform.

In the budget, the Conservatives' handouts to banks and oil companies came as no surprise. They are acting like reliable poodles. It is payback time for those who influence Conservative government policies.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I am pleased to rise in the House today to speak on behalf of the constituents of Vancouver Kingsway and to offer their feedback and views on Bill C-9, the budget presented by the Conservative government.

Prior to the budget being presented in the House, I spent several months meeting with my constituents in my office and in my community in every kind of context one can imagine. I visited owners of small businesses. I went to community centres. I went door-knocking from house to house. I visited my constituents on the streets, in the markets, in the businesses and in the cultural and recreational venues of Vancouver Kingsway.

I asked them about their lives. I asked them about the federal government and about the priorities they would like to see presented in the budget. This is a particularly cogent question. As we all know, over December, January and February of 2009 and 2010, many people, including the people of Vancouver Kingsway, had to deal with a challenging economic environment. Many people, from children to seniors to working men and women, to single mothers to owners of small businesses have been struggling.

These are the priorities that my constituents overwhelmingly and repeatedly mentioned they would like to see in this budget.

They wanted to see a budget that focused on creating jobs and not just jobs as a number on a page, but good, well-paying jobs upon which someone could raise a family. They wanted to see the federal government get back into developing affordable housing in the country. They wanted to see the provision of federal funds to create a national, universal, affordable and accessible child care system.

My constituents told me they wanted to see the federal government increase its transfers to the provinces in every aspect of education, from preschool to elementary and secondary public education to universities, trade schools and community colleges of every type. They told me they wanted to see the federal government increase spending on public transit. They wanted to see the government make a clear stand, both in policy terms and in financial backup to protect our environment.

The people of Vancouver Kingsway told me they wanted to see help for seniors, whether that was providing medical, dental and transportation support. They wanted to ensure that every senior in British Columbia and across Canada could have a decent, comfortable, safe and secure place to live.

They told me they wanted to support for small businesses. They told me they wanted to see fair taxation returned to the country. On that score, the people of Vancouver Kingsway, unlike the people on the other side of the House, believe in government and believe that if we pool our resources together, we can collectively build the kind of country that will provide strong public services for every person from coast to coast to coast.

Last, the people of Vancouver Kingsway wanted to see action taken on pensions. As the baby boomers age, as the demographics in the country move us closer to retirement in ever-increasing numbers, people across Canada, including those in Vancouver Kingsway, are starting to be concerned that they will not have enough money to live decent and dignified lives when they retire at the age of 60, 65 or 70.

I submitted these submissions to the Minister of Finance and I submitted them well in advance of the budget. I am also proud to say that I submitted a number of specific requests that also emanated from direct requests from the people of Vancouver Kingsway.

They wanted us to build a mid-sized performing arts theatre in Vancouver Kingsway. They wanted to see federal help to build a Filipino cultural centre and a Vietnamese cultural centre. They wanted to see investments in affordable housing at the Little Mountain site and at the RCMP headquarters site, which will soon be vacated. They wanted to see senior stand-alone housing, public housing projects and affordable renting housing developments backstopped by the federal government.

The people of Vancouver Kingsway wanted to see the federal government make a clear stand for the children and youth of our communities and the recreational needs of our citizens by helping contribute funds to the Mount Pleasant outdoor pool, to help fund the programs and capital requirements of Cedar Cottage, Little Mountain and Collingwood Neighbourhood House

They wanted the federal government to help make sure that our community centres, such as Renfrew Park, Douglas Park, Trout Lake and Riley Park, have adequate space and enough funding for their programs.

They wanted to see increased services for new Canadians, the funding of more language training programs and more settlement and counselling services which are critically important to ensure that new Canadians can get settled and prosper in their new country of choice.

The people of Vancouver Kingsway specifically wanted to see more investment in community crime prevention programs and increased community policing in the riding. They wanted very practical environmental solutions right in the riding, things like bicycle paths and greenways in Vancouver Kingsway. They wanted to see increased tax credits and government grants to encourage the green retrofitting of residential and commercial buildings. They wanted to see the federal government lead the way in encouraging urban food production by investing in community gardens and other community food safety and security programs.

Most importantly, the people of Vancouver Kingsway wanted to see investments in our children. They wanted to see federal contributions to help us seismically upgrade our elementary and secondary schools. As we all know, Vancouver is in a seismically active area, and schools are the first places that people will go to in the case of an earthquake. We have seen earthquakes devastate so many countries in the world. I can say that the schools in Vancouver Kingsway and Vancouver are seismically unsafe.

They wanted to see capital and operating funds for elementary and secondary schools in Vancouver Kingsway, and operating funds for new and existing child care providers, because nothing is more important to the people of this country than their children.

Last, as I said, they wanted to invest in public transit to increase service levels on overcrowded bus routes, expand rapid transit in Vancouver and keep transit fares affordable.

This is what the people of my riding told me they wanted to see. But what did they see? Did they see the Conservative government deliver those priorities? Absolutely not.

We see very little new in this budget. It shows a government that has no clear vision for the economy. Even worse, it is repeating the failed policies of the past instead, policies that are based on the flawed assumption that increasing corporate tax cuts and deregulation are the way to fuel the economy of the future.

We see a budget that provided a missed opportunity to create jobs, help the vulnerable and contribute to building the strong kind of economy that will be needed in the years ahead. The truth is that none of the priorities expressed by the people of Vancouver Kingsway are reflected in the budget.

I heard it expressed recently that a budget represents the soul of the government. When we read the budget's priorities, we can see deeply into the very soul of the people who make up the government. We can tell what they think is important. In this respect we have a very clear picture of the type of soul on that side of the House, which is one that favours corporations, ignores the vulnerable and needy and does not fundamentally believe in building a strong, public system and delivery of services to all Canadians.

The budget should have included a national industrial strategy that focuses on investing in green jobs and the green economy. We would have liked to see a budget that provided high-paying jobs that are based on fostering innovation in green technology and green energy and, at the same time, adopting provisions that save families money on energy costs and that make sure that we have clean air, clean water and protect the environment for future generations.

We wanted to see a budget that was an opportunity to deliver on child care. Canadians need help getting back to work. Nothing is more important to them than their children, so what better way to invest and support working families than by making sure that when they drop their children off in the morning, they are in safe, secure, stimulating environments. Having a lack of child care disproportionately impacts women and low income families of all types. It is time we had a national child care program. Canadian families are waiting.

The budget was an opportunity to launch an affordable housing strategy. In Vancouver, housing is incredibly unaffordable, and the lack of affordable housing is a huge issue for many families. Too many Canadians have no adequate housing at all. Shamefully, in this country there are many people who are homeless.

Many people who are struggling to maintain housing, would like to purchase housing, or rent clean and affordable housing cannot do so. It is time that we had a federal government that came back into the housing file instead of leaving it to the provinces and cities. Without federal government participation we simply cannot provide acceptable affordable housing for everyone.

My colleague from Vancouver East has Bill C-304 before the House right now and it is time that we all got together and supported it.

I could go on, but I will conclude by saying that the budget needs to be rejected by members in the House. We need to replace it with a budget that works for everyday Canadians based on the priorities that have been identified by my constituents.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, I listened to my hon. colleague with great interest and heard him talk about many things that he wanted to see in the budget. If he looked more closely at the budget, he would actually see those things.

I will use my riding as an example. We had an amazing announcement to support seniors in rural communities, in low income housing. We have provided upgrades for our aboriginal communities. Last week we announced a green transformation for our pulp industry which is actually going to decrease emissions by 67.2%, increase power to the grid. This is all great news. I am sure these things are going on in ridings throughout the country.

Does the hon. member not recognize the importance of also having a strong economy, strong businesses so that they can support these very important things that we all want for Canadians?

[Don Davies, NDP, Vancouver Kingsway, BC]

Madam Speaker, of course New Democrats absolutely want a strong economy for this country, but our vision of how that would be delivered is very different from that of my friend opposite.

The budget delivers no tax cuts for Canadian families. The budget increases EI premiums on working Canadians and businesses which the government simply refuses to acknowledge. It imposes more fees on the travelling public at airports. It gives tens of billions of dollars of tax cuts to corporations that do not need it. I am talking about big companies such as the oil companies and banks. On the other hand, small businesses in this country are struggling and that is why the New Democrats support the amount of small business income eligible for the reduced federal income tax rate of 11% being increased from $400,000 to $500,000. That is a positive move that we support.

The bottom line is that the budget does not provide the priorities that I mentioned. There is no national child care system. There is no national affordable housing strategy. It guts environmental examinations and environmental reviews. Unbelievably, it transfers environmental assessments from the Environmental Assessment Agency to the Canadian Nuclear Safety Commission and the National Energy Board. Now who could stand in the House and say that represents a positive move to protect the environment when the government is transferring assessments from the chickens to the foxes?

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

Madam Speaker, I would like to drift away from Bill C-9 for just a moment to ask my colleague a question. He spoke of the social groups within his own province.

Recently I read a report about the despicable occupation of human trafficking. I found in my reading that his province and the social groups there have gone a long way in trying to alleviate the social cost in human trafficking of mostly women, by getting women out of the business and providing a safe haven for them. It seems in the House the debate is focused primarily on the penalties being given to those who traffic, which is a good thing and I supported the bill in relation to that. What would the member support for the federal government to get involved in providing a social safe haven for people who are victims of human trafficking in this country and around the world?

[Don Davies, NDP, Vancouver Kingsway, BC]

Madam Speaker, I very much appreciate the question from the member. I would indeed like to get into that dialogue at some appropriate time, but really the matter before the House is Bill C-9, and I want to focus on that.

The government's own budget documents show that corporate tax cuts are the worst way to stimulate the economy. Page 281 of the Conservatives' own budget, which I have read, reveals that in 2010 every dollar spent on infrastructure grows the economy by $1.60. Every dollar spent on housing grows the economy by $1.50. Every dollar spent on low income households grows the economy by $1.70. However, every dollar spent on tax cuts for families only grows the economy by 90¢, and every dollar spent on corporate tax cuts grows the economy by a mere 20¢.

If we are talking about smart economics, what government would put forth a budget that is based on massive corporate tax cuts that we get 20¢ on the dollar return when we could get $1.70 return for every dollar spent by giving that money to low income households?

That is what I mean by the New Democrats proposing measures that are smart economics for the 21st century that will build an economy that works, that is green and that is fair. That can be done, but this budget does not do it.