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.

Report Stage

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is important that the previous speaker recognize that since 2008 there are actually 500,000 fewer full-time jobs.

Housing is a very important issue in Winnipeg north, as I am sure it is in many communities across our country, whether it is housing for seniors or individuals on low income. We are looking for leadership from the government to deal with things such as housing co-ops, non-profit housing, house leases, different types of housing programs that would make it that much more affordable for home ownership.

Does the member have any comments on how he believes this budget would advance those types of issues?

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, we all know that the government has focused primarily on creating jobs with its low tax plan.

As far as housing is concerned, the member wanted me to point to something specific in the budget, and I will point specifically to the funding for the retrofit program, which has been extended. Canadian families from coast to coast to coast are availing themselves of this program. Over $400 million in additional money has been allotted to that program. It is an excellent example of how our government is helping families cope with the costs of improving their homes.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, the opposition is calling for higher taxes and reckless spending. We have seen this experiment in Greece and in Italy and it has not worked there.

Could the member explain to the opposition why that is not a good path to follow?

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I am going to point specifically to our Minister of Finance who has been voted as the best finance minister in the world by his peers. The reason, in my humble opinion, he has that distinction and that recognition among his peers is that our finance minister, under the leadership of our Prime Minister and this government, has been able to react to changing global economic conditions quickly with this next phase of Canada's economic action plan. It is the best possible plan we could put in place at this point in time.

I urge all members in the House and my colleagues in the opposition to support this important legislation.

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Mr. Speaker, it is indeed an honour to rise in the House in support of Bill C-13, the keeping Canada's economy and jobs growing act.

It is also an honour to follow my friend from Richmond Hill, who so eloquently stated the reasons why the bill is so important for our country.

As the finance minister said early on in the introduction of the bill, our government is focused on what matters to Canadians: creating jobs and providing economic growth.

Canada has the strongest job growth in the G7, with nearly 600,000 net new jobs created since July 2009, and the IMF projects that we will have among the strongest economic growth in the G7 over the next two years.

As has been pointed out over and over again, we are not immune to global economic turbulence. That is why we need to stay the course and implement the next phase of Canada's economic action plan. Our government is focused on creating jobs and generating economic growth. Based on our economic performance compared with the rest of the world, it is truly working.

Our measures have been applauded by many in the private sector. For example, the Canadian Federation of Independent Business applauded the government's provision of a temporary hiring tax credit. Dan Kelly, the senior vice-president for the CFIB, said:

Since the 2011 budget announcement, many members have called about the credit and reported it will make it easier for them to hire, enhance wages or adjust to rising Employment Insurance premiums. ... This is a particularly important initiative as the government has declared 2011 as the Year of the Entrepreneur.

It is the entrepreneurs and the small business owners in this country who create the jobs this country needs.

The keeping Canada's economy and jobs growing act would help support Canada's economic recovery and would be promoting job creation and economic growth by implementing a whole host of measures like, as I pointed out a minute ago, providing a temporary hiring credit for small business and expanding tax support for clean energy generation to encourage green investments.

Coming from Manitoba as I do, I know that clean, green energy from Manitoba Hydro is very important to our economy, and this is what our government is supporting.

I was especially pleased to see the extension by one year of the mineral exploration tax credit for flow-through share investors to support Canada's mining sector. It is truly remarkable how the mining sector has come alive in Canada over the last decade and has become such an important contributor to our gross national product.

Indeed, that is why it is so shameful to see the NDP denigrating our country, denigrating the oil sands, when the oil sands are so important for our country and our economic growth. It is truly a shame that it is out to kill this most important enterprise. Having worked in the oil sands myself and lived in an oil sands camp, I have experienced first-hand the men and women of Canada who are working in the oil sands, providing for their families, saving for their children's education, and on and on. It is truly a remarkable Canadian achievement, and it is truly disgraceful to see the NDP doing whatever it can to kill this engine of economic growth.

We are also simplifying customs tariffs in order to facilitate trade. Canada is a trading nation. Trade is what supports our economy and, in turn, what supports the social programs that all Canadians need.

We are accelerating the capital cost allowance.

This is something I am kind of interested in. We are eliminating the mandatory retirement age for federally regulated employees in order to give older workers wishing to work the option of remaining in the workforce. That is something that many of us are clearly looking forward to.

In terms of supporting communities, our bill would legislate a permanent annual investment of $2 billion in the gas tax fund to provide predictable, long-term infrastructure funding for municipalities. I represent a remote rural constituency with many municipalities, and this fund that our government has doubled in the last few years is vital to the maintenance of important infrastructure for my communities.

We are enhancing the wage earner protection program.

Here is one that was especially well received in my constituency and indeed across the country. We are introducing a volunteer firefighters tax credit for volunteer firefighters. This is an example of how the government supports communities. Our volunteer firefighters give of their time. For many years they were the unsung heroes of many of our communities. We are so proud to have provided the volunteer firefighters tax credit, something they have requested for many years, which in a sure but small way recognizes the contributions they are making to our communities. That is what community is all about and what the government supports.

We will be increasing the ability of Canadians to give more confidently to legitimate charities.

With regard to the family caregiver tax credit, we are removing the limit on the amount of eligible expenses caregivers can claim under the medical expense tax credit.

We are introducing a new children's arts tax credit for programs associated with children's artistic, cultural, recreational and developmental activities.

This is truly an incredible list of what the government is doing. It includes forgiving loans for new doctors and nurses in underserved rural and remote areas. As a member of Parliament, like many of my colleagues I represent a remote rural constituency. Health care is very important. Providing incentives to new doctors and nurses to live and work in our beautiful rural communities will only help to strengthen them.

We will be helping apprentices and skilled trades and workers in regulated professions by making occupational trade and professional examination fees eligible for the tuition tax credit.

We will be improving federal financial assistance for students.

We are making it easier to allocate registered education savings plan assets among siblings without incurring tax penalties or forfeiting Canada education savings grants.

The phasing out of the direct subsidy of political parties is something I am pleased to see. As we listened to the members of the NDP early in the debate on this particular bill, I was astonished that all they focused on was this tax giveaway to political parties, which to their minds is a big deal. I guess free money is what they are all about, whereas the members of our party have worked hard. We have attracted donations from thousands of small donors and have built up a strong base of funding. We earned it. They want it for nothing. That is the difference between us and them. I am pleased to support the phasing out of the direct subsidy of political parties.

We will be closing numerous tax loopholes that allow a few businesses and individuals to avoid paying their fair share of tax.

In terms of Manitoba in particular, as all members in the House know, all politics is local. I am especially pleased with what Manitoba will see come out of the bill. There will be $5,000 in grants from the energy program for Manitoba families to make their homes more energy efficient; $840 in new annual financial support for needy Manitoba seniors; the new family caregivers tax credit; and, this is one that is especially important in my constituency although the point is somewhat moot now, the waiving of licence renewal fees for hunters and firearms owners. Thank goodness this will be a thing of the past once the bill is passed.

I thank the hardworking Minister of Public Safety, another Manitoba MP I might add, who is spearheading this particular initiative, along with the member for Portage—Lisgar.

In terms of agriculture, and I represent a very strong agricultural community, help for Manitoba farmers will be provided by the new $50 million agricultural innovation initiative. Our agriculture is only strengthened by research and innovation. That is why Canadian producers are among the most efficient in the world.

I could go on with the number of initiatives that are in our budget. I will say that this is a good budget for Canada and all of our citizens. It is our low tax plan for jobs and economic growth.

[Andrew Cash, NDP, Davenport, ON]

Madam Speaker, yesterday, the Task Force on Competitiveness, Productivity and Economic Progress released its most recent report tracking Ontario's economic progress. The report states that Ontario lost 300,000 manufacturing jobs between 2007 and 2009 and that everyone knows that these jobs are not coming back. This flies in the face of all the numbers the Tories like to trot out. I wonder if the member opposite can speak to this disconnect between the facts and what his government keeps talking about.

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Madam Speaker, there is no disconnect between the facts and our performance.

One need only look at who is in government in Ontario: the poster child for a high tax economy that does not create jobs. Ontario used to be the engine of the Canadian economy and could be still, if the proper policies were put in place. High taxes and the excess spending of government funds simply do not work and Ontario shows that.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, when the member from Dauphin made reference to hydro, it really made me sit up and listen. We in Manitoba have a passion for Manitoba hydro because it is a wonderful opportunity for economic development.

This is a billion dollar question, maybe even a bit more than that. I wonder if the member could provide any comment on his thoughts on east side versus west side for the Bipole III transmission line for Manitoba Hydro.

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Madam Speaker, I share the member's concern regarding the choice the Manitoba government has made. The Manitoba NDP government chose to build a hydro line along the west side of Manitoba that will cost an extra $1 billion to build, rather than the shorter east side line.

The extra distance causes a line loss of enough electricity to power 25,000 homes, or a community the size of Brandon, Manitoba. That represents $1 billion of excess spending by the Manitoba NDP. Year after year enough energy to power 25,000 homes will simply go up in smoke for nothing.

[Vic Toews, Conservative, Minister of Public Safety]

Madam Speaker, given the member's reputation as a strong environmentalist working with corporations to ensure that the environment and industry work together, could he comment?

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Madam Speaker, one of the things that is evident, when one looks at environmental indicators around the world, is that as a country gets richer the environmental indicators get better. There is no trade-off between wealth creation, economic growth and environmental quality; they all go hand in hand.

[The Deputy Speaker, Denise Savoie]

It being 5:45 p.m., pursuant to an order made earlier today it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the report stage of the bill now before the House.

The question is on Motion No. 1. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Deputy Speaker, Denise Savoie]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.