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

[Randy Kamp, Conservative, Pitt Meadows—Maple Ridge—Mission, BC]

Mr. Speaker, my colleague highlights the fact we are at a very opportune time in Canada. We finally have a coherent foreign policy that takes a place on issues on the world stage. More than that, we are now financially and economically well positioned to lead the world in many ways. In fact many are taking lessons from our financial sector and the changes in Bill C-9 add to that some more. There are many things in this legislation that will help us continue to advance ourselves in the world.

On the point the member made about working together, one thing I have learned the longer I do this job at the local level is that it really is a team game. We cannot do it alone. We need to work together with the provincial governments and the municipal governments, the private sector, the non-profit sector, the NGOs and so on to provide the kind of good government Canadians need and deserve.

[Randy Kamp, Conservative, Pitt Meadows—Maple Ridge—Mission, BC]

Mr. Speaker, the member is absolutely right. Sometimes I say to my constituents that as a government anybody can balance a budget; when there is almost unlimited access to money, just by raising taxes or cutting the way money is spent, almost anybody could balance the budget. If people had that kind of access in their household budgets, for example, I think they could do that. However, it is how a budget is balanced that is really the key to good government. As the member said, we do not want to repeat how it was done in the 1990s. In fact, we have made a commitment, as my colleague has pointed out, not to do that.

One of the measures in Bill C-9 is to implement the transfer protection payments to Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Manitoba and Saskatchewan that was announced in December 2009. We need to get that into law. The longer this bill is delayed, as the NDP has done its best to do, the longer it will take to put this and other measures in place.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, I want to commend the member for Pitt Meadows—Maple Ridge—Mission on his intervention on this very important bill, Bill C-9, which allows Canada to move forward with its economic action plan.

One of the things we had promised as a government was that we were going to do our level best not to repeat the Liberal performance from about 10 years ago when the Liberals cut transfer payments to the provinces. As a former council member in the city of Abbotsford, I know how much that hurt communities across this country when the federal government balanced its books on the backs of municipalities and provinces.

Could the member for Pitt Meadows—Maple Ridge—Mission comment on what our budget does to protect those transfers to ensure that we do not pass the buck for balancing the budget onto the provinces and municipalities?

[Randy Kamp, Conservative, Parliamentary Secretary to the Minister of Fisheries and Oceans]

Mr. Speaker, on behalf of the government and the good people of Pitt Meadows—Maple Ridge—Mission who support a strong Canadian economy, I rise in support of the jobs and economic growth bill.

Budget 2010 and the jobs and economic growth bill outline a positive and ambitious plan to strengthen Canada's economy, and a plan that is working. Indeed the IMF just forecasted Canada's economic growth to be at the head of the pack for the G7 and all countries with advanced economies this year and next year as well. The IMF also singled out Canada for praise, saying:

Canada entered the global crisis in good shape, and thus the exit strategy appears less challenging than elsewhere.

This follows an OECD report earlier this month also predicting Canada's economic growth will, by a wide margin, lead all G7 countries this year, so we are off to a good start this year.

Statistics Canada announced that Canada's economy grew by 6.1% in the first quarter of 2010, representing both the strongest quarterly rate of economic growth in a decade and the strongest growth in the G7. What is even better, Canada's economy continues to create jobs. In fact, May represented the eighth month of job gains in the past ten months. In May we saw 24,000 jobs created. This follows a record-breaking 108,000 new jobs created in April. In fact, overall, since July of last year, Canada has created almost 310,000 new jobs.

Clearly our government is on the right track. Our economy is growing and we are creating jobs for Canadians, and it is being noticed around the world. The influential magazine The Economist recently called Canada “an economic star”. The OECD said that Canada's economy “shines”. Standard & Poor's, the world's premier credit rating agency, also said:

Of the other G7 countries...Canada is posting the best fiscal results. Canada also best weathered the financial crisis...is now well positioned to continue to outperform...

World leaders are also singling out Canada. U.S. President Barack Obama praised Canada, saying:

—in the midst of this enormous economic crisis, I think Canada has shown itself to be a pretty good manager of the financial system in the economy...And I think that’s important for us to take note of...

This reinforces what we said all along. While not immune from the global recession, Canada's economy did enter it, but will exit it in the strongest position.

However, the global recovery remains fragile. We must stay on track to ensure that our economic recovery remains strong. Our top priority remains the economy and implementing Canada's economic action plan to create jobs, lower taxes, foster growth and invest in better infrastructure.

Budget 2010 and the jobs and economic growth bill is one way our government is staying focused on the economy. I am here to speak about some of the budget 2010 measures that are laying the foundation for Canada's future economic prosperity.

Budget 2010 and the jobs and economic growth bill introduce measures that will help businesses access the financing they need to support the recovery, improve the framework of our financial sector and pursue a more forward-looking approach to protecting consumers of financial products and services.

Canada's financial sector has been widely acknowledged as one of the strongest in the world. The World Economic Forum, for example, rated Canada's banking system the soundest in the world. Well capitalized financial institutions and sound regulation have meant that financial institutions in Canada were better able to weather the global financial crisis than those in many other countries, perhaps all other countries. Over the past year, Canada's economic action plan provided measures to support financial institutions and the financial system in the midst of extraordinary circumstances. In particular, the global economic crisis made it difficult for Canadian banks and other lenders to obtain funds from international markets at reasonable costs.

To soften the impact of this crisis, Canada's economic action plan included measures to provide up to $200 billion to support lending to Canadian households and businesses. This helped to keep credit flowing to Canadian consumers and businesses throughout the crisis and helped Canada's financial sector improve its global competitive advantage.

Nevertheless, ensuring that businesses of all sizes have adequate access to financing to acquire vehicles and equipment is increasingly important as the economic recovery matures.

Our government is not content to rest on our laurels. We are continuing to find ways to improve the financial sector framework.

As outlined in the jobs and economic growth bill, Canada is home to a strong and vibrant credit union industry that provides financial services to millions of Canadian consumers and small businesses. To promote the continued growth and competitiveness of the sector and enhance financial stability, the jobs and economic growth act, Bill C-9, will enable credit unions to incorporate and continue their operations as federal entities. Allowing credit unions to grow and be competitive on a national scale will broaden choices for consumers by helping credit unions to attract new members and improve services to existing members across provincial borders.

Why would we want to delay such a positive part of the jobs and economic growth act? We need to pass Bill C-9. Indeed, let us read what the Case for Progress Committee, a coalition of several credit unions such as B.C. credit unions FirstWest and Vancity, had to say about this measure.

It said that the federal government’s plans to introduce legislation that would make it easier for credit unions to operate nationally was applauded and supported by committee, a group composed of credit unions across Canada. It said that the legislation would give Canadian credit unions more choices in their growth options by allowing them to operate outside their traditional provincial boundaries, and would also strengthen the credit union system. It said we were marking a ”historic milestone” today, that this new legislation would benefit all Canadians by increasing their choices in selecting a financial institution. It would strengthen the stability and competitiveness of the entire financial services industry in Canada.

From my home province of B.C., Tracy Redies, president and CEO of Coast Capital Savings, praised these measures, saying that credit unions are:

—a very, very vibrant part of the financial services industry in Canada and I think the pending legislation will enable it to continue to grow and prosper and...that's good for Canada.

I agree with her.

If we go to the other side of the country, we can listen to Jamie Baillie, president and CEO of Credit Union Atlantic, who said, “this measure will promote the continued growth and competitiveness of the sector and enhance financial stability...This provides a framework for a more competitive banking system in Canada and will enable further growth of the credit union alternative”.

Clearly, this measure is supported from coast to coast and deserves to be passed by the House.

However, this is not all the government is doing to support consumers and to promote the efficient functioning of the financial system. The Canadian payments system is a vital support to the economy, linking Canadians, merchants and financial institutions together and facilitating payment transactions through, for example, credit and debit card networks and clearing and settlement systems.

In November 2009 our government released for public comment a proposed code of conduct for the credit and debit card industry in Canada, which responds to issues raised by stakeholders in the debit and credit card markets. The code, which was developed in consultation with market participants, aims to promote fair business practices and ensure that merchants and consumers clearly understand the costs and benefits associated with credit and debit cards.

In April the government released the final code for voluntary adoption by the industry within a few weeks. To support adoption of the code, the jobs and economic growth act would provide the Minister of Finance with the authority to regulate the market conduct of the credit and debit card networks and their participants if necessary.

We have heard very positive responses since we announced it and participants have already agreed to sign on to the code. For instance, the Canadian Federation of Independent Grocers, or CFIG, commented:

The Code of Conduct is a very positive step and we are very pleased to note that many of the concerns CFIG has raised on behalf of independent retail grocers, such as negative option billing practices, have been heard and responded to, by the government.

CFIG also welcomed the decision by the Minister to bring in legislation that will give the government the ability to regulate the market if the voluntary Code of Conduct does not work...the Code...provides retailers with choice and ensures that our members can continue to compete as important members of the food industry and the communities they serve across the country.

The Canadian Federation of Business, the CFIB, was also very supportive. Its president, Catherine Swift, said:

[The] Code constitutes an important step and is timely as we enter the summer season that is so vital to so many businesses, especially coming out of a recession. We are particularly pleased that government is being proactive in helping to lay the groundwork in advance of major expected campaigns on the part of Visa and MasterCard in the debit card industry. These developments will create a better future for merchants and help ensure a fair and transparent credit and debit card market instead of just letting large industry players call all the shots.

This part was confirmed at the finance committee hearings from the Retail Council of Canada when it said:

[We] commend the minister and the Government of Canada for establishing a card payment regulatory framework, and for equipping the Financial Consumer Agency of Canada with the tools it needs to monitor and enforce compliance with the code of conduct changes, changes that are both contained in Bill C-9.

As the Retail Council of Canada correctly pointed out, many of these important changes to help our small businesses will only take effect with the passage of the jobs and economic growth act, Bill C-9.

That is not all we are doing to safeguard our financial sector in the jobs and economic growth act. A few other measures we are taking include: amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in order to enhance the government's ability to protect Canada's financial system from money laundering and terrorist financing activities; amendments to protect depositors in the event of an institution failure; extending the due date for filing annual GST returns from three months to six months after year-end for certain financial institutions; and much more.

While not as high profile, these measures are nonetheless important to the efficient functioning of our financial sector.

The global economic recession clearly demonstrated the importance of a strong, well-regulated financial sector. Around the world, Canadians were bombarded with news of bank failures and bailouts. In Canada, we did not have any bank failures or bailouts, showcasing the strength of our financial sector to the world.

As a result of our strong financial system, Canada is doing better than our G7 partners. We entered this recession later and are exiting it in a stronger position than our international peers.

For the average Canadian this means stronger economic growth and more jobs for Canadians. It means that for the first time in a generation, Canada's unemployment rate is nearly 1.5% lower than the United States. It means that when Canadians go to their local bank branch, they do not have to worry that their bank will close its doors to them.

Clearly the continued strength of our financial system is important for our government and Canadians. While our financial system is strong, we will not rest on our laurels, as I have said, but we will continue to move forward and find ways to further improve our financial system.

Budget 2010 and the jobs and economic growth act would do just that. The actions and measures in this legislation are important and contribute to a well-functioning financial system that meets the needs of Canadians and supports our future economic prosperity.

We must pass Bill C-9, the jobs and economic growth act, to help build our financial sector for the future and, in turn, create the jobs and economic growth that Canadians need and deserve.

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 third time and passed.

Bill C-9

[Christiane Gagnon, Bloc, Québec, QC]

Mr. Speaker, budget implementation Bill C-9 alone amends 70 other statutes, some of which have nothing to do with the budget. The privatization of Atomic Energy of Canada Limited without requiring a debate in Parliament, the end of Canada Post's monopoly on certain services, and the intentional disappearance of the $57 billion that the Conservative government owes the employment insurance fund are just a few examples of the amendments in Bill C-9.

By hiding his reforms in such a huge, indigestible bill, the Prime Minister is muzzling the public, which is struggling to sort everything out, and the hon. members, who cannot study these reforms with the attention and the diligence they deserve.

As Le Devoir's Manon Cornellier points out, by creating this omnibus bill, the Prime Minister is bypassing debates and once again undermining the role and the authority of the people's representatives, .

This is yet another illustration of the Conservatives' lack of transparency and their contempt for parliamentary democracy.

Jobs and Economic Growth Act

[Bernard Bigras, Bloc, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I will use my two remaining minutes. There is a risk with Bill C-9. What does it do in terms of oil and gas drilling projects, especially in offshore areas? It transfers responsibility from the Canadian Environmental Assessment Agency to the National Energy Board. It means that an economic department is going to conduct environmental assessments. That is the current risk. It is like putting the fox in charge of the henhouse. We must remember the events in the United States. When an economic office is responsible for the environmental assessment of projects, the ecosystems will definitely be in danger.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, on this World Oceans Day, I imagine that the member for Rosemont—La Petite-Patrie's opinion on Bill C-9 is surely motivated by the increasing concern for the Gulf of St. Lawrence and the estuary, with respect to oil and gas development. I would like to hear what he has to say about this because Bill C-9 opens the door to a laissez-faire approach that, in my opinion, is very dangerous.

[Bernard Bigras, Bloc, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I am very pleased to have this opportunity to speak to Bill C-9, the budget implementation bill, but I am also deeply disappointed. This bill to implement one of the most important aspects of the parliamentary cycle—the budget—and to formalize this defining moment is something of a lost opportunity. The government had a golden opportunity to reposition Canada's economy as a 21st century economy that focuses on the future and will outstrip the past 30, 40 or 50 years during which our economic activity was heavily dependent on the oil industry.

The government decided to shelve the green revolution that Canada needs to restructure the economy and create the value-added jobs of the future, many of which are green jobs. Instead, the government chose to remain in the stone age of economic development and cling to its reliance on the oil industry, which is located primarily in the west, as is its political base.

Today's initiatives concern the budget presented a few months ago, which proved that the government's economic choices were essentially political, partisan choices made in the interest of the party's political base in Saskatchewan and Alberta, choices that penalize most other regions of Canada, especially those that rely on manufacturing. Manufacturing, this country's second economic driver, particularly in Quebec and Ontario, has been penalized over the past few years by Canada's policy of promoting fossil fuels, thereby causing the Canadian dollar to rise. Canadian manufacturing exporters have been victims of what is known as the Dutch disease, a phenomenon that Holland experienced and that Canada is going through, too.

Canada's dollar rose largely because of choices about natural resources. Canada and Quebec are being penalized by the government's economic choices made at the expense of the manufacturing and forestry sectors.

Instead, especially when Canada will be hosting the G8 and G20, we would have expected our country to answer the call that came from the UN on October 22, 2008, asking the G8 nations to come up with a green new deal by developing initiatives to promote investment in clean technologies and natural resources.

This green economy initiative was designed to create green jobs and to develop policies and market instruments that could expedite a transition to a sustainable economy. Moreover, the UN has given countries 24 months, until October 22, 2010, to come up with a plan. But judging by the discussions at the UN, the Prime Minister is refusing to give the fight against climate change a prominent place on the agenda for the G8 and G20. Yet climate change is one of the most important issues of the century, because it is causing other crises, such as food and financial crises.

One day, we are going to have to understand that as long as we do not tackle climate change head-on, the food crisis in developing countries will escalate. Canada's lack of leadership on climate change at the G8 summit is disappointing, and it shows that as soon as the Conservatives came to power, they decided to give up on the fight against climate change. We know what happened. We found out last week when Environment Canada released a report stating that by the time the Kyoto deadline arrives, Canada's greenhouse gas emissions will have increased by 30% over 1990 levels.

That is the problem. Canada could have included a number of initiatives in its budget. Moreover, we had made pre-budget proposals calling for Canada's economy to be converted to a sustainable, greener economy. What did we propose? First, we did not propose reinventing a number of programs. We said that existing programs, programs the government had cut and programs that were underfunded should all be enhanced.

That is the case with the ecoauto program, for example, which gave financial incentives to citizens wanting to purchase more fuel-efficient vehicles. What did the government do? It refused to agree with us and use an existing tool, taxation, to encourage greener forms of transportation. We also said that the government, again using this fiscal instrument, could give financial incentives to a number of businesses. That is the case with renewable energy. We proposed improving the wind power production incentive program under which, in the past, the federal government would pay 1¢ for every kilowatt hour of energy produced by wind. It was a federal contribution, using this fiscal instrument, to help the economy shift towards a carbon-free economy. Once again, the government turned a deaf ear.

And what is happening now? We have learned that in Quebec, for example, businesses in Bromont's wind-energy sector are closing down simply because the government decided against offering tax incentives. But things south of the border are booming. And American President Barack Obama has decided to invest in energy sources of the future, to pursue this new economic revolution—the clean technology revolution—and use his federal budget to invest more than 10 times more per capita in energy efficiency and the fight against climate change. While the American economy is transforming itself, the Canadian economy is killing time and, when it comes to economic development, has decided to stay in the stone age. But at what expense? At the expense of economic sustainability. And this will ensure that the jobs of tomorrow will not be value-added jobs. We have to use what I call the fiscal instrument to convert our economy.

However, the government has another instrument at its disposal, and that is regulation. The government could adopt regulations that force our economy to be more sustainable. It started to do so by regulating motor vehicles. For 10 years, we have been calling on the House of Commons to amend motor vehicle manufacturing standards to match the ones that exist in California. We are happy to see that the government is going along with our proposal. Quebec initiated this harmonization a few months ago. Quebec was criticized by the Minister of the Environment.

All of a sudden, the minister is saying that Quebec was right. The standards will now be harmonized with those in California.

In conclusion, I want to say that it is possible to present a federal budget that aims to make our economy carbon-free. If we do not do it, our neighbours to the south will. And our competitiveness will be the first to suffer. At the end of the day, it is the workers who will see new jobs created, but they will be so-called carbon jobs with no added value.

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, I congratulate my colleague on his speech and for pointing out the complacency and, even worse, the fact that the Liberals are again sitting on their hands when it comes to this budget. What is even more pernicious, in addition to the fact that they are keeping the Conservatives in power, is that it allows the Conservatives to add all the elements mentioned by the member because they know that the Liberals will let the budget pass. The bill will, among other things, deregulate the postal service and confirm the pillage of the employment insurance fund. These are elements that should not be in a budget, which has become an omnibus budget bill, as previously stated by my colleague from Hochelaga, our finance critic.

As my colleague asked, why do the Liberals not realize this? Yesterday, they could have voted for the amendments to withdraw these pernicious elements from Bill C-9. They at least would have taken a stand. They have again shown that they are incapable of doing so.

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

Mr. Speaker, the member is absolutely correct in his analysis of Bill C-9. We have an omnibus bill which is 880 pages long; it has to be a record. The government is adding in all sorts of measures that have nothing whatsoever to do with budget implementation. More to the point, they are measures the Conservatives have been trying to get through the House for the last two years.

For example, on the post office remailer issue, the government introduced Bill C-14 and Bill C-44 over the last two years. The Conservatives brought those bills to the House, debated them, but could not get them through the House, so they simply have seized the opportunity while the Liberals are sleeping to stick it into this huge omnibus bill and ram it through the House. That is the way the government is approaching the legislative agenda today and it is absolutely wrong. It is the wrong way to proceed.

I would like to ask the member for his comments.

[Robert Carrier, Bloc, Alfred-Pellan, QC]

Mr. Speaker, I will be sharing my time with my colleague from Rosemont—La Petite-Patrie.

We are at third reading of Bill C-9, the budget implementation bill. The Bloc Québécois voted against this Conservative bill at second reading because, in addition to not meeting Quebec's needs, it undermines Quebec's economic development, against the wishes of Quebec's National Assembly.

We obviously supported the NDP amendments at report stage that would have deleted parts of the bill.

Although it has been shown that this bill is unacceptable for Quebec, it has still made it to the final stage, thanks to the complicity of the Liberal opposition, which arranged that the bill would receive enough support through all the stages.

In their speeches, the Liberals—and we just heard an example—make some pro forma criticisms of the bill but when it comes time to vote there are enough absentees to allow the bill to pass, because it is a confidence vote.

This so-called official opposition does not want to defeat the government. In order to make themselves understood, they even announced in advance what they would do, supposedly because the voters do not want an election. It was very easy, therefore, for the Conservative government to introduce major changes to other bills in six parts of this one in order to quietly slip them through.

The Conservatives also took advantage of the opportunity to trample all over the jurisdictions of Quebec and the provinces by creating a Canada-wide securities commission in Toronto.

I like to think that the ideal would be a good government that is concerned about the well-being of the population, old people and our fragile environment and, insofar as Quebeckers are concerned, considers us a nation, as it did officially acknowledge. But that is not what this Conservative government elected in the fall of 2008 is doing.

We should all remember that this is a minority government and the opposition parties exist precisely to express their opinions, say why they disagree, and oppose when necessary.

A general election is obviously a major undertaking for the various parties and there are necessarily costs involved, but the social and monetary costs of more years of Conservative rule are much more onerous, especially for Quebec.

I would like to speak now about my riding of Alfred-Pellan. A Liberal candidate was chosen about a year ago and he seems to have been campaigning ever since, in case there is an election. It just goes to show how indecisive and inconsistent the Liberals are.

It is only natural for a candidate to work hard for success during an election campaign, but perhaps this one should be reminded that his party does not even want an election. In any case, I would like to know what kind of alternative a Liberal candidate would currently offer.

Today is the last chance for all the members from Quebec to oppose this bill.

It contradicts two unanimous votes in the Quebec National Assembly, and it is simply unacceptable for members from Quebec to be complicit in it, given that the Quebec nation was officially recognized in this House.

There was a unanimous request from Quebec that the government provide $2.2 billion in financial compensation for the harmonization of the sales tax. Still the government refuses, despite the agreements that were signed with five other provinces for a total of $6.8 billion.

On March 31, 2009—more than a year ago—the Quebec National Assembly unanimously passed a motion asking the federal government to treat Quebec fairly and equitably by providing compensation comparable to what Ontario is receiving for harmonizing its sales tax.

Despite the repeated pleas of the Government of Quebec and all the attempts of the Bloc Québécois to correct this injustice, the Conservative government is still refusing Quebec’s requests.

What was possible with five other provinces does not seem to be possible with the one that is in fact recognized as a nation. That is unacceptable to Quebec.

What can we say now about the government’s intention of trampling the powers of the provinces and of Quebec by creating its national securities commission, again in spite of a unanimous vote against it by Quebec?

The entire economic community of Quebec is mobilizing against this coup. The editorial writer in La Presse, a newspaper owned by Power Corporation that is in fact dedicated to defending federalism in Quebec, says, and I quote: “The expression ‘predatory federalism’ is overused, but that is what this comes down to.”

In addition, the editorial writer in Le Devoir says, in an editorial entitled “Perverse process”, that if the government wins in the Supreme Court, it would be a flat-out intrusion into a provincial field of jurisdiction, another step toward centralization of the country.

He goes on to say that the trap lies in the provinces’ freedom to join in the process. The three recalcitrant provinces, Alberta, Manitoba and Quebec, will not be able to resist the pressure from the market.

We are looking at a poorly disguised attempt at constitutional fraud. Once it has its foot in the securities field, the federal government will find it easy to expand its sphere of activity, while Quebec’s will shrink, against its will. The members from Quebec must not take part in this attack on the Quebec nation.

This negation of Quebec in the bill was not enough. Taking advantage of the Liberals’ acknowledged servility, the government has introduced very significant amendments to other statutes in this bill that it does not have the courage to put forward and defend by introducing separate bills, as our democratic parliamentary rules require.

In the few minutes available to them, witnesses we heard in committee expressed their confusion in the face of the lack of consideration given to subjects as important as the exclusive privilege of the Canada Post Corporation, the privatization of Atomic Energy Canada, the Canadian Environmental Assessment Act and the Employment Insurance Act.

I would like to speak specifically about part 24 of the bill, which amends the Employment Insurance Act. The Bloc Québécois called for substantial improvements to the scheme. Instead, the bill hands us the following measures: the 2010 budget closes the employment insurance account and creates a new account, the employment insurance operating account; and the accumulated employment insurance surpluses are eliminated finally and permanently, with retroactive effect to January 1, 2009.

The employment insurance surplus, amounting to more than $57 billion on March 31, 2009, will disappear for good.

That was not enough. Lifting the freeze on premium rates in 2011 as set out in the bill will not even improve the system. The government will help itself to surpluses estimated at $19 billion between 2011 and 2015. It is appalling that they will penalize the workers of Quebec and Canada like this.

Out of respect for the people of my riding of Alfred-Pellan, I will vote against this budget, which clearly does not meet their needs and in fact works against their development and progress. In fact, I would like to see all members of this House from Quebec show some solidarity at this crucial moment and oppose this bill.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, Bill C-9 has 24 sections in it. We hear often from the opposition that this is a big bill and so on. Hundreds of pages are for the tariff relief that we are providing.

However, we are providing expenditure restraint. We are improving competition when it comes to Canada Post. We are fighting money laundering. We are improving the Financial Consumer Agency of Canada's abilities. There is a variety of things we are doing.

Could the parliamentary secretary tell me why anybody would be voting against this particular bill?

[Ted Menzies, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I am pleased to have the opportunity to rise and speak at third and final reading to the jobs and economic growth act, referred to in the House as Bill C-9.

We spent quite a bit of time debating this, and I am almost as happy as most Canadians are to see this debate coming to a close so that we can move it on to the other house and actually implement all of these good measures.

The jobs and economic growth act and budget 2010 are an integral part of Canada's economic action plan. It is a positive and ambitious plan that has been successfully strengthening our economy and helping to create jobs throughout our country.

Recent job gains help illustrate that Canada's economic action plan is indeed working. May represented the eighth month, out of the past 10, of job gains. Since July 2009, Canada has created over 300,000 net new jobs.

What is more, both the OECD and the IMF have predicted that Canada's economic growth will lead the G7 by a wide margin this year. What is more, just recently, the IMF singled out Canada for praise, saying, “Canada entered the global crisis in good shape and thus the exit strategy appears less challenging than elsewhere”.

This reinforces what we have said all along. While not immune from the global recession, Canada's economy entered it from the strongest position, and Canada will exit it in the strongest position. Listen to a Toronto Sun editorial following the great announcement that over 100,000 new jobs were created last April. It said:

Our economy in April produced a record 108,700 jobs...the largest one-month increase ever in raw numbers....[T]he job growth numbers support [the] Prime Minister's contention Canada's economic recovery is among the strongest in the world....What politicians of all stripes on Parliament Hill need to remember is that for average Canadians, the economy is job one.

We agree. We acknowledge that the global recovery remains fragile. That is why our number one priority remains the economy. That is why we have been working, and will continue to, to fully implement Canada's economic action plan, which is a blueprint for creating jobs, lowering taxes, fostering economic growth, and investing in better infrastructure.

Budget 2010 and the jobs and economic growth act is one way our government is doing just that. It is staying focused on job one, the economy.

In the remainder of my time, I want to speak about the constructive and encouraging initiatives in the jobs and economic growth act. However, first I would like to highlight, for the benefit of the chamber and Canadians, how witness after witness at the finance committee, during its consideration of this important act, spoke strongly in favour of these important initiatives They were witnesses like the Canadian Apparel Federation and the 400 Canadian companies and 50,000 workers it represents. The Canadian Apparel Federation spoke glowingly of the jobs and economic growth act and the historic step within it to eliminate all tariffs on manufacturing inputs and machinery and equipment. It understood the importance of this bold move, one that will make Canada the first G20 country to establish itself as a tariff-free zone for manufacturers.

In the words of the Canadian Apparel Federation at the hearing:

[O]ur most important industrial policy issue has been the duties paid on imported raw materials. I am happy today to support the passage of Bill C-9, because it contains the elimination of these duties....In the current economic climate, this is the most effective policy at government's disposal to lower the costs of domestic manufacturing. It eliminates an unnecessary financial burden on domestic manufacturers....

That is a compelling argument.

Witnesses such as the Retail Council of Canada, and the 40,000 Canadian stores and online merchants it represents, strongly urged the committee to pass the jobs and economic growth act, especially the legislative provisions within it to monitor compliance with the code of conduct for the credit and debit card industry and to regulate the industry if necessary.

The Retail Council of Canada stated:

Merchants across Canada are following this issue closely. They commend the minister...for establishing a card payment regulatory framework and for equipping the Financial Consumer Agency of Canada with the tools it needs to monitor and enforce compliance with the code of conduct changes, changes that are both contained in Bill C-9....[W]e...applaud the fact that there are regulations that will allow the minister to in fact regulate the payment system....[T]his may have to happen sooner versus later.

What about witnesses such as the Canadian Cancer Society, which spoke in favour of the initiative in the jobs and economic growth act to help counter illegal contraband through an enhanced stamping regime for tobacco products?

As the Canadian Cancer Society stated at committee:

All members of Parliament are aware of how we have a significant illegal contraband problem in Canada, and we need solutions. We support the enhanced tax stamp regime that will be authorized with this bill....It will assist in preventing counterfeiting.

The finance committee has also heard from witnesses such as Pathways to Education Canada. The jobs and economic growth act provides $20 million for pathways, which is a unique program of early interventions and support for high school students to help them overcome the barriers they may face in pursuing post-secondary education. This community-based, volunteer-supported program provides tutoring, mentoring, counselling, and financial support to disadvantaged youth and their families. It has an established record of reducing high school dropout rates. It has a record of being effective in increasing post-secondary enrollment of students from inner-city high schools.

The $20 million in new support authorized with the passage of the jobs and economic growth act would allow Pathways to grow and would help even more disadvantaged youth.

As David Hughes, president of Pathways to Education Canada, told the committee:

[O]ur program...is lowering dropout rates of at-risk youth and helping them to make the all-important transition to post-secondary education and meaningful employment. This investment will enable Pathways...to expand its program from being a regional program to being a national one, helping us expand to 15 to 20 locations, to seven to eight provinces, and serving over 10,000 students.

The committee also heard from Genome Canada. Genome Canada is a not-for-profit corporation dedicated to developing and implementing a national strategy in genomics and proteomics research for the benefit of all Canadians.

The research performed by Genome Canada, such as genomics research, has outcomes in the areas of human health, the environment, and natural resources. Recognizing the work performed by Genome Canada, the jobs and economic growth act would invest $75 million in this organization to launch new research, an investment that Genome Canada is ready to put to work.

Indeed, when Genome Canada appeared before committee, it noted:

[W]e are proud of our track record....[T]he recent federal budget provided $75 million in additional funding to Genome Canada, for which we are thankful....We want to get these funds directly into the hands of the researchers as quickly as possible....Excellence is the only standard that Genome Canada will accept or fund.

Witnesses also appeared before the finance committee to applaud the provisions in the jobs and economic growth act that would enable credit unions to grow and remain competitive by permitting them to incorporate as federal entities, if they so choose.

We all recognize that Canada is home to a strong and vibrant credit union industry that provides financial services to millions of Canadian consumers and small businesses. It has long been argued that allowing credit unions to grow on a national scale would broaden choices for consumers by helping credit unions attract new members and improve services for existing members across provincial borders.

Indeed, that is what we heard at finance committee.

Credit Union Central of Canada presented a very convincing case. It noted that the jobs and economic growth act provided:

a good first step towards the establishment of a useful, attractive, accessible, and distinctive federal charter option for credit unions.

The president of Coast Capital Savings Credit Union, Tracy Redies, added that the act was:

—a historic milestone that will enhance the strength and stability of the credit union sector and financial services industry as a whole....It will give credit unions the chance to develop greater economies of scale and more competitive cost bases while remaining true to cooperative principles. This, in turn, will allow the development of a wider range of enhanced products and services that credit union members now expect.

Increased competition from federal credit unions will provide Canadian consumers more choice, drive innovation, and lower prices.

Finally, the finance committee heard powerful testimony from witnesses praising the government for allowing competition in the outgoing international mail marketplace. We heard evidence that this move would directly save thousands of Canadian jobs. I note that this competition has already been occurring for decades.

Representatives of the Canadian Printing Industries Association, which represents over 7,200 printing establishments that employ some 65,500 Canadians, came to committee to warn of the dire consequences of failing to pass the jobs and economic growth act in a timely manner. They said:

Canadian printers and remail companies have already seen a significant decrease in business given this industry's uncertainty over the past few years. Without this amendment, these companies stand to lose even more business as their customers will simply take their business to another country....No one is going to win: not Canada Post, not our small businesses, and not the Canadian economy.

What about the other quote that we heard from Barry Sikora? This was at committee also. Mr. Sikora is a small businessman and has been involved in the international mail industry for over 30 years. Mr. Sikora came to committee with a simple plea. He said:

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

He is referring to the jobs and economic growth act.

For those in this chamber who would get lost in ideological and procedural debate, I ask them to remember Mr. Sikora and the hard-working Canadians his business employs. I want them to think about these employees, the jobs that would be lost and the families affected if we did not pass this act in a timely manner. We need to always keep that in perspective.

We also need to keep in mind the other positive measures in the jobs and economic growth act. I would be remiss if I did not speak briefly to a few of these measures. For instance, the act provides important tax relief to those Canadian seniors who collect U.S. social security benefits.

For background, before 1996, Canadian seniors, who received U.S. social security benefits, were required to only include 50% of those benefits when calculating their Canadian income tax. In 1996 the then-Liberal government changed the tax law to tax 85% of those social security payments, an unwelcome change for those Canadian seniors on fixed incomes.

Budget 2010 and the jobs and economic growth act reinstates the pre-1996 tax treatment for those Canadian seniors who have been in receipt of these benefits before 1996, as well as their spouses or common-law partners eligible to receive survivor benefits. This important change, which fulfills a promise that our Prime Minister made during the 2008 election campaign, was warmly welcomed. Indeed, listen to what William Thrasher of the Canadians Asking for Social Security Equality told the Windsor Star recently. He said:

We've been fighting for this for 15 years...The tax increase was a "disaster" for seniors. People were thrown out of nursing homes because they couldn't afford to live there...at least seniors will be getting a bigger portion of their social security. It's a major victory.

However, there is more in our jobs and economic growth act. As we all will recall, in 2006 our Conservative government introduced the universal child care benefit. This benefit provides $100 per month for each child under the age of six and gives working families the support and freedom to choose the best child care option for them. The jobs and economic growth act will ensure that single parents are not disadvantaged by allowing single parents to choose to include universal child care benefit payments in the income of a dependant. In most cases the dependant would not be subject to tax.

This change will ensure that single parents are not disadvantaged by their family status and will provide nearly $200 in tax relief for each child a single parent may have. The Institute of Marriage and Family Canada , like most observers, has welcomed this change. It has said:

—the government has recognized that single parent families have been unfairly penalized through an excessive tax clawback of the Universal Child Care Benefit.

There is so much more to applaud in the jobs and economic growth act, like the half a billion dollars in payments to various provinces to support the key health care and social services that they provide by ensuring no decline in their total transfers in 2010-11, money that our provincial partners are counting on receiving in a timely fashion. Indeed they put it in their budgets. There is also the modification to section 116 of the Income Tax Act to better help Canada attract foreign venture capital and the jobs that it will create. In addition, there is the important extension of the mineral exploration tax credit, a move that will help promote employment and investment growth in rural and remote communities throughout Canada.

Clearly the jobs and economic growth act will implement key measures in Canada's economic action plan to help to secure sustained recovery and create jobs. Given the importance of the jobs and economic growth act, I ask all members to give it the support it deserves and to pass this important legislation in a timely manner.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, the venture capital market in Canada traditionally has been small and it continues to be small. It trucked up considerably during the recession.

I want to point out that the official magazine of Canada's Venture Capital and Private Equity Association states:

The Canadian government has listened to the financing community, understood the severity of the problem and removed the major tax barriers that have prevented critically needed international investment capital from crossing our borders.

That is a quote from the association. That is in Bill C-9. That is why members should support it.