Bill C-13 (Historical)

Keeping Canada's Economy and Jobs Growing Act

An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures

Part 1 of this enactment implements income tax measures and related measures proposed in the 2011 budget. Most notably, it
(a) introduces the family caregiver tax credit for caregivers of infirm dependent relatives;
(b) introduces the children’s arts tax credit of up to $500 per child of eligible fees associated with children’s artistic, cultural, recreational and developmental activities;
(c) introduces a volunteer firefighters tax credit to allow eligible volunteer firefighters to claim a 15% non-refundable tax credit based on an amount of $3,000;
(d) eliminates the rule that limits the number of claimants for the child tax credit to one per domestic establishment;
(e) removes the $10,000 limit on eligible expenses that can be claimed under the medical expense tax credit in respect of a dependent relative;
(f) increases the advance payment threshold for the Canada child tax benefit to $20 per month and for the GST/HST credit to $50 per quarter;
(g) aligns the notification requirements related to marital status changes for an individual who receives the Canada child tax benefit with the notification requirements for the GST/HST credit;
(h) reduces the minimum course-duration requirements for the tuition, education and textbook tax credits, and for educational assistance payments from registered education savings plans, that apply to students enrolled at foreign universities;
(i) allows the tuition tax credit to be claimed for eligible occupational, trade and professional examination fees;
(j) allows the reallocation of assets in registered education savings plans for siblings without incurring tax penalties;
(k) extends to the end of 2013 the temporary accelerated capital cost allowance treatment for investment in machinery and equipment in the manufacturing and processing sector;
(l) expands eligibility for the accelerated capital cost allowance for clean energy generation and conservation equipment;
(m) extends eligibility for the mineral exploration tax credit by one year to flow-through share agreements entered into before March 31, 2012;
(n) expands the eligibility rules for qualifying environmental trusts;
(o) amends the deduction rates for intangible capital costs in the oil sands sector;
(p) aligns the tax treatment to investments made under the Agri-Québec program with that of investments under AgriInvest;
(q) introduces rules to strengthen the tax regime for charitable donations;
(r) introduces anti-avoidance rules for registered retirement savings plans and registered retirement income funds;
(s) introduces rules to limit tax deferral opportunities for individual pension plans;
(t) introduces rules to limit tax deferral opportunities for corporations with significant interests in partnerships;
(u) extends the tax on split income to capital gains realized by a minor child; and
(v) extends the dividend stop-loss rules to dividends deemed to be received on the redemption of shares held by certain corporations.
Part 1 also implements other selected income tax measures and related measures. Most of these measures were referred to in the 2011 budget as previously announced measures. Most notably, it
(a) accommodates an increase in the annual contribution limit to the Saskatchewan Pension Plan and aligns its tax treatment with that of other tax-assisted retirement vehicles;
(b) clarifies that the “financially dependent” test applies for the purposes of provisions that permit rollovers of the assets of a deceased taxpayer’s registered retirement savings plan or registered retirement income fund to an infirm child or grandchild’s registered disability savings plan;
(c) ensures that the alternative minimum tax does not apply in respect of securities that are subject to the election under section 180.01 of the Income Tax Act;
(d) clarifies the rules applicable to the scholarship exemption for post-secondary scholarships, fellowships and bursaries; and
(e) amends the pension-to-registered retirement savings plan transfer limits in situations where the accrued pension amount was reduced due to the insolvency of the employer and underfunding of the employer’s registered pension plan.
Part 2 amends the Softwood Lumber Products Export Charge Act, 2006 to implement the softwood lumber ruling rendered by the London Court of International Arbitration on January 21, 2011.
Part 3 amends the Customs Tariff in order to simplify it and reduce the customs processing burden for Canadians by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also simplify the structure of some provisions and remove obsolete provisions.
Part 4 amends the Customs Tariff to introduce new tariff items to facilitate the processing of low value non-commercial imports arriving by post or by courier.
Part 5 amends the Canada Education Savings Act to make the additional amount of a Canada Education Savings grant that is available under subsection 5(4) of that Act available to more than one of the beneficiary’s parents, if they share custody of the beneficiary, they are eligible individuals as defined in section 122.6 of the Income Tax Act and the beneficiary is a qualified dependant of each of them.
Part 6 amends the Children’s Special Allowances Act and a regulation made under that Act respecting payments relating to children under care.
Part 7 amends the Canada Student Financial Assistance Act to provide that the maximum aggregate amount of outstanding student loans is to be determined by regulation, to remove the power of the Minister of Human Resources and Skills Development to deny certificates of eligibility, and to change the limitation period for the Minister to take administrative measures. It also authorizes the Minister to forgive portions of family physicians’, nurses’ and nurse practitioners’ student loans if they begin to work in under-served rural or remote communities.
Part 7 also amends the Canada Student Loans Act to authorize the Minister to forgive portions of family physicians’, nurses’ and nurse practitioners’ guaranteed student loans if they begin to work in under-served rural or remote communities.
Part 8 amends Part IV of the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small business. An employer whose premiums were $10,000 or less in 2010 will be refunded the increase in 2011 premiums over those paid in 2010, to a maximum of $1,000.
Part 9 provides for payments to be made to provinces, territories, municipalities, First Nations and other entities for municipal infrastructure improvements.
Part 10 amends the Canadian Securities Regulation Regime Transition Office Act so that funding for the Canadian Securities Regulation Regime Transition Office may be fixed through an appropriation Act.
Part 11 amends the Wage Earner Protection Program Act to extend in certain circumstances the period during which wages earned by individuals but not paid to them by their employers who are bankrupt or subject to receivership may be the subject of a payment under that Act.
Part 12 amends the Canadian Human Rights Act to repeal certain provisions that provide for mandatory retirement. It also amends the Canada Labour Code to repeal a provision that denies employees the right to severance pay for involuntary termination if they are entitled to a pension. Finally, it amends the Conflict of Interest Act.
Part 13 amends the Judges Act to permit the appointment of two additional judges to the Nunavut Court of Justice.
Part 14 provides for the retroactive coming into force of section 9 of the Nordion and Theratronics Divestiture Authorization Act in order to ensure the validity of pension regulations made under that section.
Part 15 amends the Canada Pension Plan to include amounts received by an employee under an employer-funded disability plan in contributory salary and wages.
Part 16 amends the Jobs and Economic Growth Act to replace the reference to the Treasury Board Secretariat with a reference to the Chief Human Resources Officer in subsections 10(4) and 38.1(1) of the Public Servants Disclosure Protection Act.
Part 17 amends the Department of Veterans Affairs Act to include a definition of dependant and to provide express regulation-making authority for the provision of certain benefits in non-institutional locations.
Part 18 amends the Canada Elections Act to phase out quarterly allowances to registered parties.
Part 19 amends the Special Retirement Arrangements Act to permit the reservation of pension contributions from any benefit that is or becomes payable to a person. It also deems certain provisions of An Act to amend certain Acts in relation to pensions and to enact the Special Retirement Arrangements Act and the Pension Benefits Division Act to have come into force on December 14 or 15, 1994, as the case may be.
Part 20 amends the Motor Vehicle Safety Act to allow residents of Canada to temporarily import a rental vehicle from the United States for up to 30 days, or for any other prescribed period, for non-commercial use. It also authorizes the Governor in Council to make regulations respecting imported rental vehicles, as well as their importation into and removal from Canada, and makes other changes to the Act.
Part 21 amends the Federal-Provincial Fiscal Arrangements Act to clarify the legislative framework pertaining to payments under tax agreements entered into with provinces under Part III.1 of that Act.
Part 22 amends the Department of Human Resources and Skills Development Act to change the residency requirements of certain commissioners.

Keeping Canada's Economy and Jobs Growing Act

[Peter MacKay, Conservative, Central Nova, NS]

moved that Bill C-13, An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures, be read the third time and passed.

[Shelly Glover, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I would like to split my time with the member for Nipissing—Timiskaming.

[The Acting Speaker, Barry Devolin]

In order for the hon. parliamentary secretary to split her time, unanimous consent is required. Is there unanimous consent to allow her to split her time?

[Some hon. members]

Agreed.

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, I appreciate the opportunity to speak in the House today at third reading of the keeping Canada's economy and jobs growing act.

Before continuing, I thank the House of Commons finance committee for its timely consideration and adoption of this important legislation. It represents an ambitious and positive response by our government to today's economic challenges, an approach that gives Canadians confidence that we are on the right track. Canadians know that our government is focused on what matters, and that is jobs and the economy.

Both the IMF and the OECD agree that Canada will have one of the fastest-growing economies in the G7 in 2011 and 2012. Approximately 600,000 net new jobs have been created since July 2009, and over 90% of these new jobs are full-time. Canada has the highest rate of employment growth in all the G7 countries. While the government recognizes that there are still too many Canadians looking for work, Canadians are doing relatively well when the difficulties other countries are having are taken into account. We must continue to implement our low-tax plan to protect the economy and create jobs, and this legislation will help us to meet our objectives.

Our plan has given Canadians more flexibility to improve their quality of life, even when times are tough. It leaves more money where it belongs, which is in the pockets of taxpayers. That is why the keeping Canada's economy and jobs growing act would provide targeted tax relief where it would be needed most to help Canadians.

For example, volunteer firefighters play a critical role in our communities and often put themselves at great risk to keep their neighbours safe. Almost 85,000 volunteer firefighters provide their services to protect the lives and property of Canadians living in both urban and rural communities across Canada. This bill recognizes their courageous service by introducing a new 15% tax credit on an amount of $3,000 for volunteer firefighters who perform at least 200 hours of service for their communities a year. Eligible volunteer firefighters who currently receive honoraria in respect of their duties will be able to choose between the new tax credit and the existing tax exemption of up to $1,000.

As a member of the finance committee, I have had the opportunity to hear from a number of witnesses as we have studied the bill. Indeed, John deHooge, fire chief for the city of Ottawa, told the committee:

“Canada's Fire Chiefs have been advocating for tax relief for the Volunteer Fire Service since 2003. The proposal adopted by the Government of Canada in Budget 2011 was the proposal that the CAFC had presented to the federal government...In our view, tax relief for Canada's volunteer firefighters is a key part of the solution to addressing the recruitment and retention challenges facing Canada's Volunteer Fire Service.

We would like to recognize the government for its commitment to pass this initiative into law....This measure will help with the recruitment and retention of volunteer firefighters across the country, which will in turn help protect Canadians and our communities”.

I want to take a moment to thank him for his service. I know he has put many decades into protecting the interests of Canadians.

This goes to show that our government is actively listening to the concerns of Canadians. While the Liberals and the NDP voted against this program, the Canadian Association of Fire Chiefs have told us that this is a crucial measure to ensure the retention of volunteer firefighters, which will keep Canadian communities safe.

That is not all we have done to support Canadian communities and the families that sustain them. The keeping jobs and economy growing act recognizes the often daunting expenses facing parents trying hard to provide their children with the best possible opportunities for growth and development.

The arts are an important part of a well-rounded education that all too often are out of reach for hard-working families. Recognizing this challenge, the legislation contains a children's art tax credit, which provides parents with up to $500 per child in eligible fees for programs associated with arts, cultural, recreational and developmental activities that are not eligible for the existing children's fitness tax credit.

I am especially pleased to tell Canadians and members of the House that the age limit is extended to age 18 for children eligible for the disability tax credit and provides an additional $500 to acknowledge the additional costs of these programs for children with special needs. This measure builds on our government's strong record of helping parents and their children.

The 2007 children's fitness tax credit, which provides tax relief for fees paid for children's physical fitness activities, has already become a very big hit. Close to 1.4 million children benefit from the children's fitness tax credit each year. I am pretty confident that the children's arts tax credit will have the same positive impact on Canadian families.

So far Canadian parents, who pay hundreds of dollars for music lessons each year across Canada, have expressed their support for this program, not to mention the local small businesses that provide the lessons. It is really helping to give an extra push to encourage the arts.

In the words of Sam Mills, an Edmonton dad, “I would do it anyway but maybe definitely we would do it for the whole year instead of just half the year”.

Listen to Regina to what music teacher, Bob Mossing, whose School of Music will really be positively impacted by the credit, has to say, “This is could be the life saver of our program”.

The next phase of Canada's economic action plan provides even more support for families. Overall, families have gained from the tax relief our government has provided to all Canadians since 2006. Those tax relief measures include the GST reduction to 5% from 7% and popular personal income tax relief measures like the tax-free savings account.

Through our strong record of tax relief, the average family saves over $3,000 a year; however, our Conservative government recognizes that some Canadian families need more help.

That is why the next phase of Canada's economic action plan includes a number of key measures to help Canadian families, in particular, a 15% family caregiver tax credit on an amount of $2,000 for caregivers of all types of infirm dependent relatives, including, for the first time, spouses, common-law partners and minor children.

I am proud that caregivers support this measure. The Canadian Home Care Association said, “In introducing tax credits for family caregivers and improving the medical expense tax credit, the federal government is responding to the reality that Canadians want to remain independent at home for as long as possible.”

In conclusion, the Keeping Canada's Economy and Jobs Growing Act helps to support Canada's economic recovery. Our government is focusing on the issues that are important to Canadians: job creation and economic growth.

I urge all members to support this vital legislation in order to ensure the success of our economic recovery for Canadians and their families. I look forward to questions from my colleagues across the way.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, the government implemented this through a ways and means motion a few months ago. What the member has said, although I respect her right to speak in the House on the bill, is simply not true. What we have seen over the past few weeks is considerable economic hardship for an increasing number of Canadian families. In the month of October, as members well know, 72,000 Canadian families lost a full-time breadwinner. That is a catastrophic figure. The finance committee was told that by some of the economists who visited a few days ago. They said that the loss of jobs was at recession levels.

The government has created less than 200,000 jobs since May 2008. The unfortunate fact, as members are well aware, is the labour market actually grew by 450,000 job seekers. Therefore, the government is actually 250,000 jobs behind from just standing still.

Given all that, will the government change its orientation from what is an austerity budget, which would cut services from middle class and poor Canadians, and rethink its economic agenda, because it is clearly not working?

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, unfortunately my colleague is absolutely wrong on all counts. He talks about catastrophes. If we look at what has happened since the recession, had the government not put in place all these measures that helped to produce jobs in our country, measures like the accelerate capital cost allowance that helps businesses create jobs, there would not have been 600,000 jobs created.

If it were up to the NDP, there would have been major catastrophes. It would have taxed corporations $10 billion more, which would have cost hundreds of thousands of jobs. It would have increased the GST from its current 5% to 7%, or even more. That would have cost Canadians more money for everything, from groceries, to clothes, to all of their personal needs. If we had listened to the NDP, we would be looking at a doubling of the CPP. Even for the Canadian Federation of Independent Business, which is a big producer, representing small businesses that create jobs, its CPP costs would have increased by 60% to 70% . It would have been catastrophic to our country and we would never have survived the way we have.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I listened closely to the member's remarks. The fact is, and it states so in a November 17 article in the National Post, that federal spending has been up 22% since the Prime Minister took power. However, the spending watchdog says, “the large increase in expenditures over the past five years can be attributed to the economic downturn but also to a minority Parliament for most of that time”, meaning the Conservatives are trying to buy an election. “You've had a lot of instability and historically, [governments] spend like a drunken sailor in minority”, says the federal director of Canadian Taxpayers Federation.

Given all that spending, what worries me is that the gap between the rich and the poor is increasing, and it shows through in everything the government does.

The member went on at great length about the volunteer firefighters tax credit, but it is not a refundable tax credit. If a person does not have money, then the tax credit does not apply to him or her. Why not be fair? Is a firefighter who is—

[The Acting Speaker, Barry Devolin]

Order, please. The hon. parliamentary secretary.

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, I am not going to thank my colleague for the question this time because it is about the third time the Liberals have asked this very same question. It just brings up the hypocrisy of that party. The hypocrisy exists because firefighters have been asking for years to have this very tax credit put forward. The 13 years that the Liberals were in power, they did absolutely nothing to address the concerns. In fact, the fire chief, who was in committee, said very clear this was exactly the tax credit for which they asked. Where the Liberals denied them year after year of any kind of tax benefit, not a single measure, we are doing it exactly the way they asked us to and we are going to be proud of it.

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, I am pleased to speak to Bill C-13 and sharing my time with the parliamentary secretary this morning.

It is a privilege to contribute to this debate and speak in support of Bill C-13, keeping Canada's economy and jobs growing act, which is the next phase of Canada's economic action plan. This bill will support Canada's economic recovery and promote job creation. It will support communities and invest in education and training. It will help Canadian families and respect their hard-earned tax dollars.

The bill is a low tax plan for jobs and economic growth. It is a continuation of the sensible fiscal policy that remains at the heart of our Conservative government's economic agenda. Our government is focused on what matters to Canadians, creating jobs and promoting economic growth.

While we see so much financial instability in governments around the world, Canada has become a leader on the international economic stage. We have the strongest job creation record in the G8. Close to 600,000 net new jobs have been created since July 2009. We have renewed our triple A credit rating, and according to the International Monetary Fund, the IMF, we will have the strongest economic growth in the G8 and G7 over the next two years. Forbes magazine has ranked Canada as the best country in the world to do business. I can assure the House, one of the most important things to the people of my riding is to be gainfully employed.

The Canadian economy is intimately connected with the economies of the world and we must remain aware of the fragile economic situation in Europe and the United States. We are not isolated from potential economic problems that remain outside our borders. That is why we must stay the course and implement the next phase of Canada's economic action plan.

Bill C-13 will promote Canadian job creation and economic growth. The hiring credit is precisely what small businesses have been calling for. The one time credit of up to $1,000 will be the catalyst for additional hiring, not only in my riding of Nipissing--Timiskaming but for small businesses throughout Canada.

Not only are we creating new jobs, we are enhancing programs to help businesses keep the workers currently employed through initiatives such as the work sharing program, the wage earner protection program, and the targeted initiative for older workers.

Small businesses are the engine of job creation in this country and our Conservative government is delivering results to them. Our Conservative government is also supporting the Canadian manufacturing sector. We are extending the accelerated capital cost allowance for two years, so that companies can write off investment in manufacturing and processing machinery and equipment. This will allow them to grow their businesses and to procure top of the line equipment that will bring them to the forefront of international technological innovation. In an era of economic uncertainty, this tax measure gives manufacturers the confidence to invest in their future.

Bill C-13 is also doing more to support local communities. We are putting into law a permanent annual investment of $2 billion in the gas tax fund in order to provide predictable long-term infrastructure funding for municipalities. This is something municipalities have been asking for year after year. They want to know they have the source of funding to do the many projects that are necessary to provide the infrastructure for continued economic growth. Making this investment permanent and annual will benefit the many towns and communities in my riding of Nipissing--Timiskaming and in the ridings from coast to coast to coast.

Our Conservative government is also enhancing the wage earner protection program, so that workers are covered and protected from employer bankruptcy and receivership. This is a program that has been very well received and utilized.

Our Conservative government also recognizes the economic benefits that come with investing in education and training. We are supporting universities, colleges, skilled trades and apprenticeship programs.

This legislation forgives student loans for new doctors and nurses in underserved rural and remote areas. A portion of the federal component of their Canada student loans, $40,000 for doctors and $20,000 for nurses, will be forgiven so that these doctors and nurses can practice and support the rural communities of our country that need them the most.

This will ensure that rural and remote communities, such as those in my riding of Nipissing—Timiskaming get the adequate medical services they deserve and require.

This is a plan that will support Canada's economic recovery and promote job creation. It is a plan that will support communities and invest in education and training. It is a plan that will help Canadian families and respect their hard-earned tax dollars.

This is a low tax plan for jobs and economic growth, and I support it.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I listened carefully to the hon. member's speech.

As I have already said in this House, job creation is of great concern to me.

The government can trot out raw numbers and brag about them, but the fact remains that when we take a closer look at the numbers, there are some disparities. The raw numbers do not necessarily reflect the quality of those jobs. When I look at the job creation measure for small businesses in the government's bill, I see another measure that, unfortunately, is missing the mark. Instead of applying to every job created, this measure can apply to companies that fail to create any jobs and just tweak their employment insurance contributions.

I would like the hon. member to tell me why the government is not trying to integrate our job creation proposal into this bill, because it would apply to every job created, instead of allowing companies to get money illegitimately.

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, the hon. member cannot get picayune about this. We have to look at the broader economic picture and our record. The proof is in the pudding: 600,000 net new jobs have been created.

The IMF indicate that we are among the best in the world. Forbes recognizes that Canada is the best place to do business. The NDP plan would simply add $10 billion in taxes to Canadians. If we were to follow that course, we would be in the shape of Greece, or possibly Italy or Spain.

Clearly, our plan is the right plan and our plan is working.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, the parliamentary secretary who spoke previously took a lot of liberties when she was responding to questions. The Liberal Party has always stood for volunteer firefighters. I had private members' bills in the House many times on that issue.

I have to ask the member who just spoke, is this Conservative member suggesting, on the volunteer firefighters bill, that a volunteer firefighter who does not have the income, who does not meet the threshold, is less deserving of a refundable tax credit than someone with money?

If the service is done, a firefighter deserves the refund. Is the member saying that lower income volunteer firefighters should be disregarded, that their service is not as valuable as those with money? Is that what he is saying?

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, all volunteer firefighters deserve this tax credit. The hon. member said he had a bill. I guess his caucus did not support it.

As I mentioned, this is part of a full package to get our economy working. It is working. The first phase of this work generated all kinds of jobs. It generated accolades from all over the world. We cannot get picayune on this.

Our plan is working. It is the right plan for Canadians. We are proud of our plan and we are going to move on to the second phase of Canada's economic action plan.