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.

Bill C-13—Notice of time allocation motion

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, on a point of order, our government has remained steadfastly focused on improving Canada's economy, including our focus in the House this week during jobs and economic growth week. Today we are debating the keeping Canada's economy and jobs growing act. It would implement important measures of our government's low tax plan for jobs and growth, including the job creation tax incentive for small businesses and a tax credit for children's arts and dance lessons.

I must advise that an agreement has not been reached under the provisions of Standing Order 78(1) or 78(2) concerning the proceedings at report stage and third reading of Bill C-13, An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at those stages.

Report Stage

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the comments put on the record by the previous speaker.

The government House leader has just stood up, and this is something we see a great deal of lately, and gave notice of time allocation on this legislation because of the government's inability to work with the opposition in any way and its tendency to use its majority government to prevent any sort of real debate on legislation.

That member has had the opportunity to speak to the bill, but many members of this chamber will never get that opportunity because her government House leader has now said that the government does not want all members to speak to the bill.

If the bill is so good, why does the government want to limit debate on it? Why will the government not allow other members of its own caucus and members of the opposition the opportunity to participate in the debate on an important bill?

[Cathy McLeod, Conservative, Parliamentary Secretary to the Minister of National Revenue]

Mr. Speaker, perhaps my hon. colleague did not actually hear the start of my comments when I talked about the history of the bill. The bill was introduced many months ago. The debate has been had with Canadians who, in the last election, said that they believed in our plan and they believed it was the route forward. They supported our government in terms of moving forward with phase two of Canada's economic action plan. That was 34 million Canadians from across the country.

[Alexandrine Latendresse, NDP, Louis-Saint-Laurent, QC]

Mr. Speaker, I want to continue in the same vein.

There is something I do not understand in all this. If their action plan is working so well, then why did 60% of Canadians not support this type of action plan? Why is it that all of us here, the entire opposition, currently want to talk about it, debate it, discuss it and introduce concrete measures? The only thing the government is saying is that it does not want to listen to us, that it will steamroll over anything that happens or anything we say, and that it does not care about those who do not agree with it.

That is the only message I am getting in all this and I find that absolutely offensive.

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

Mr. Speaker, again, Canadians gave us a strong mandate to move forward with this measure. We have talked with Canadians. They have said that the volunteer firefighter tax credit is absolutely important. Parents are asking to share their RESPs with different siblings. Doctors and nurses are waiting for these important measures.

It is time to move forward. Let us get this budget through.

[Daryl Kramp, Conservative, Prince Edward—Hastings, ON]

Mr. Speaker, I am tremendously impressed with and confident in the good work done in the finance committee by that member. Having served on that committee, I know a tremendous amount of consultation has been done with Canadians across the country. Many members of the opposition have been saying that no one has really had a chance to provide input, but that is absolutely absurd.

Could the member tell us what kind of consultations go on across the country and from whom she has heard information in addition to the departmental and government agencies?

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

Mr. Speaker, I really appreciate the question from my hon. colleague because the finance committee is in prebudget consultations right now.

Prebudget consultations means that we travel across the country and we hear from Canadians. We have had over 400 submissions. All of that will go together in preparing our next budget.

It is important to recognize that we have some challenging times ahead because of what is happening in Europe and the United States, but Canada has done exceptionally well.

The consultation process with Canadians on where we are going to go with next year's budget is happening now.

We are talking about something that happened over a year ago. We are talking about measures that Canadians want. These measures were debated across the country for many months.

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

Mr. Speaker, I see some members are not that enthused that I am delivering this speech. I swear that I will not take any offence.

Since I only have a few minutes, I would love to talk about my riding of Bonavista--Gander--Grand Falls--Windsor. It is the most beautiful little gem on earth. In fact, a lot of the commercials about Newfoundland and Labrador are shot in my riding, with its beautiful cliffs.

[An hon. member]

And it has a great MP.

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

Sure, it has great representation. On division, right?

I want to follow up on a comment that was made, because I think there are some misconceptions in the debate. I do not think I ever went against the government because it was not consulting enough. I always thought that the consultation process, which was there prior to this government and others, was always substantial enough. Access to one's member of Parliament has always been substantial enough to affect any budget. The problem is, if we are looking at certain costs, and we want to bring the deficit down to a manageable level, we start cherry picking. We have to face up to the fact that we are not going to invest in other things that Canadians want because we cannot afford it.

For example, we would love the volunteer firefighters tax credit to be a refundable tax credit, but it is a non-refundable tax credit. Yet let us not pretend that all Canadians want it. It is the type of thing where we say that we will do this when the deficit is down to zero.

The other issue occurs when we do not fulfill a promise. We might as well be honest and tell people that we cannot do this at this time. A certain amount of respectability needs to be brought back into the level of debate in the House, and certainly in the way the government is acting upon this particular issue.

There are great things in this budget, but the problem is there are a lot more things that need to be done. That is what we debate in this House.

I assume my time for debate has now expired, Madam Speaker.

[The Deputy Speaker, Denise Savoie]

The hon. member will have seven minutes left when the bill returns to the House.

It being 5:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

The House resumed consideration of Bill C-13, An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I am pleased to rise today to speak to Bill C-13, the keeping Canada's economy and jobs growing act, a very important bill to residents in my riding of Richmond Hill and to all Canadians.

This bill builds on our government's commitment to continue the work over the last five years focusing on what matters most to Canadian families. It continues our long-term plan launched in 2006 to heighten Canada's advantages through a national economic road map that would truly make Canada a world economic leader and improve the quality of life for students, seniors, families and workers.

It is because of this government's prudent and visionary decisions since then that Canada has weathered the global economic turmoil of the last three years better than most other advanced countries. As we see the difficulties endured by so many other countries around the globe, we recognize that this strong, stable national majority Conservative government is acting swiftly to ensure that Canada's economy continues to grow and remain strong.

I would like to remind all hon. members in the House that before the global recession hit, our government paid down nearly $40 billion of the debt to bring Canada's debt level to its lowest level in 25 years. We were well on our way to more competitive taxation levels. This is why we were able to act promptly to stimulate our economy as the downturn in the global economy necessitated appropriate action.

I am proud that under the leadership of our Prime Minister Canada currently has the strongest job growth record and the lowest net debt to GDP ratio in the entire G7. Both the International Monetary Fund and the Organisation for Economic Co-operation and Development anticipate Canada to lead the way in economic growth over the next few years. The reason for this enviable record is that this government's top priority has always been the economy with a focus on a long-term low tax plan to create jobs and growth.

Despite our strong domestic economy, we remain in a period of heightened global uncertainty. As has been mentioned many times in the House, Canada is not immune from global economic turbulence. This is precisely why Bill C-13, the next phase of Canada's economic action plan, is so essential for Canada's continued economic stability. Bill C-13 invests in key areas that support job creation. Our government's priority has always been Canadian families, emphasizing help for students, seniors, families and communities, while maintaining our fiscal advantage.

Bill C-13 contains strategic investments that will contribute to the long-term economic growth and prosperity for Canadians.

One might ask how Bill C-13 will create jobs and economic growth. For one, it recognizes that it is the private sector that drives growth and wealth creation. We know that small- and medium-size businesses have been leading the way in job creation over the last two years. This is very important in Richmond Hill where 98% of all businesses are small or medium size, with the vast majority of those having less than 20 employees. This is why we will continue to support entrepreneurs and job creators in Richmond Hill and right across the country with key initiatives in the next phase of Canada's economic action plan, Bill C-13. Let me highlight a few.

A temporary $1,000 hiring credit for small businesses will help up to 525,000 employers defray the costs of additional hiring. A two year extension of the accelerated capital cost allowance treatment for investments in manufacturing and processing machinery and equipment will support our manufacturers. The extension by 16 weeks of the work-sharing program will help employers going through a rough patch retain their employees and the skills they contribute to their businesses. A reduction in the increase of employment insurance premium rates in 2012 from 10¢ to 5¢ will stimulate job creation. Reducing unnecessary red tape through the continued work of the Red Tape Reduction Commission will allow entrepreneurs to focus on what they do best: growing their business and creating jobs.

Increased funding for the National Research Council's industrial research assistance program will support collaborative projects between colleges and businesses and will help strengthen our manufacturing sector by accelerating the adoption of information and communications technologies. Further reducing the corporate tax rate will make Canada very attractive as a place in which to invest and do business. In fact, Canada will have the lowest overall tax rates on new business investment in the G7, a fact of which I am very proud. Keeping taxes low allows our businesses to invest in their operations, creating much needed jobs for Canadians.

These are the very kinds of measures that will help small businesses like those in my riding of Richmond Hill. Nestled in the heart of the GTA, Richmond Hill is one of Canada's fastest growing and most diverse communities. It is a shining example of Canada's dynamic communities. Families, seniors, small- and medium-size businesses, organizations and the municipality find that the stability our government has infused into our economy is the key factor that has positioned us as world leaders throughout the global economic crisis.

This next phase of Canada's economic action plan, Bill C-13, continues to build on our strong economic policy with help for all Canadians and particularly for those who most need it, our seniors, our families and our communities.

For example, 680,000 low income seniors are benefiting from the enhancement to the guaranteed income supplement. Those who need it most are receiving an additional $600 per year if single, and $840 per year if a couple.

A new caregiver tax credit on up to $2,000 will financially help those looking after loved ones with infirmities including for the first time, spouses, common-law partners and children.

Homeowners are being helped with the extension until March 31, 2012 of the eco-energy home retrofit program. Some $400 million has been allocated across the country to help homeowners defray the costs of making their homes more energy efficient, an investment that at the same time is creating jobs and stimulating local economies.

A new children's arts tax credit on up to $500 in eligible fees assists families with the costs associated with arts, cultural and developmental activities for their children. Arts, cultural and educational activities are very important in Canada, especially in my riding of Richmond Hill. Last week I was at Cosmo Music highlighting this very measure which is in effect for the 2011 taxation year. Parents in Richmond Hill are very pleased to know this kind of assistance is available to them. They appreciate knowing the value and recognition our government places on these types of activities.

I am also very pleased that Bill C-13 makes permanent the annual gas tax funding for municipalities each and every year. People will remember that it was this government that doubled this investment from $1 billion to $2 billion. Permanent gas tax funds give our municipal partners stable, predictable funding that they can count on to assist with their infrastructure needs. This is very significant particularly in Richmond Hill. As an example, the town can now expect over $5 million each and every year and can incorporate this revenue into its budgetary process.

These and other measures in Bill C-13 continue to focus on what matters most in my riding and to all Canadians: creating jobs and promoting economic growth. We are maintaining our focus on the priorities set out in the next phase of Canada's economic action plan by supporting job creation and providing support for families, seniors and communities.

In closing, I call on all members in the House to support the important initiatives in this next phase of Canada's economic action plan that will continue on our nation's proven path of economic stability. I look forward to the passage of Bill C-13, the keeping Canada's economy and jobs growing act, and the benefits it will bring to all Canadians.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I listened intently to what my colleague said and, again, it is obvious that the Conservatives are clearly out of touch with the needs of Canadian families. Canadians want real action on job creation, real action on hiring more doctors and nurses and real action on retirement security.

Fast-tracking this legislation, which is over 600 pages, is the wrong thing to do. We talked about this but I need to emphasize it again.

The fact of the matter is that there is an issue here with the economy, and the government is not acting on it. The government is going to make it harder for people who have to access EI.

Given the fact that the government is fast-tracking the bill, I am wondering if the member could tell me whether or not the government is looking at proroguing.

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, on the question of what we are doing for nurses, I would like to remind the member that built right into our economic action plan is the credit for nurses and doctors that would forgive their loans. That is very important in the northern regions of Canada.

Let me add that 600,000 new jobs have been created in Canada since July 2009 as a result of our government's ability to react when it was needed most to help Canadians.