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

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, I will be sharing my time with my fine colleague from Kildonan—St. Paul.

I am pleased to rise on behalf of my constituents and to speak with my colleagues about the next phase of Canada's economic action plan. The legislation introduced by our Minister of Finance, Bill C-13 is a key element in the next phase of Canada's economic action plan.

We made a promise to Canadians to focus on the economy and to continue to deliver new jobs and strong economic growth.

With the excellent leadership of Prime Minister Stephen Harper and Minister Flaherty, this Conservative government—

[The Acting Speaker, Barry Devolin]

Order. I would like to remind this hon. member and all others that it is inappropriate to use the given names of other members of this House while in the chamber. He can refer to them by their ridings or by their titles, but not by their given names.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

I do apologize, Mr. Speaker.

The Prime Minister and the Minister of Finance and this Conservative government have cemented the strongest job growth in the G7. Since July 2009 we have created nearly 600,000 new net jobs. This is a result that our government can hang its hat on.

The International Monetary Fund projects that Canada will continue to be one of the strongest nations in the G7 over the next two years. While we appreciate that claim, it does not mean that Canada is protected from the global economic turbulence it is now facing. That is why our government is moving forward with, and implementing, the next phase of Canada's economic action plan.

One of my favourite features of Bill C-13, and one which would help my constituents tremendously, is the forgiving of loans for new doctors and nurses in rural and remote areas. This excellent program will help make access to quality health care in my riding and across Canada easier. It will create jobs in the riding and also support numerous communities in my riding.

Another example of our government helping communities and the excellent volunteers within them is the introduction of the volunteer firefighters tax credit. I know from my own experience serving in the RCMP what it was like to be in the line of duty and see volunteer firefighters at motor vehicle accidents. These are the individuals who put their lives on the line every day just for a simple thanks.

These individuals not only serve in the line of duty but do so as a volunteers. These volunteer firefighters are hard-working taxpaying Canadians. This tax credit would help ease the burden in these difficult economic times. Nearly 85,000 volunteer firefighters provide their services to protect the lives and property of Canadians living in communities across Canada. I greatly respect the work that they do.

As a result of our Conservative government, families are now able to enrol their children in artistic, cultural, recreational and sporting activities. This is great, and with a young family myself, I know the value and results that this brings. Youth stay active and their minds are challenged. It keeps them working hard for their future endeavours so they can contribute to the Canadian economy in years to come.

We are also investing in education by helping apprentices in the skilled trades or workers in regulated professions by making their occupational or professional examination fees eligible for the tuition tax credit.

These are excellent policies that will improve the lives and livelihoods of all Canadians.

Bill C-13 also has excellent measures for supporting Canada's forestry industry, something that is very important for my constituents.

By extending the powers of Export Development Canada to provide financing support to Canadian forestry companies, we have created new jobs and growth. In fact, a new mill is opening in Big River in northern Saskatchewan, and it will provide over 100 new jobs in the reforestation and transportation fields and also in the sawmill process. By extending the enhanced work sharing program to assist forestry employers, we have protected those forestry jobs that were at risk.

Another excellent initiative that helps my riding is the mineral exploration tax credit.

The Canadian mining industry is very important to my riding in northern Saskatchewan. There are numerous mines, and they employ thousands of people. In fact, 300,000 Canadians are employed in the mining industry today. This industry promotes economic stability and growth in the many rural towns and first nations and Métis communities in my riding.

I am very proud to be a part of the Conservative government. We are leading the way on the world stage on how to manage the economy effectively through this dangerous recession.

It is no wonder Canada is the envy of the world.

Our Conservative government set out on a mission to provide stability and growth in these troubled economic times while keeping taxes low, and we have accomplished that.

I would like to quote from Warren Jestin, the chief economist at Scotiabank, who pointed out in the Daily Commercial News and Construction Record on September 27 that “Canada is the best place to be and almost everything I look at screams that out to me.”

We cut taxes over 120 times since 2006. This has resulted in the overall tax burden being at the lowest level in nearly 50 years. We reduced the GST, as it was pointed out, from 7% to 5%. We provided seniors with pension income splitting. We introduced a child fitness tax credit. We cut the personal tax rate to 15%, the lowest it has ever been, and we introduced a children's arts and tax credit. This has resulted in a total savings of over $3,000 for the average Canadian family. That is $3,000 back in their pockets. These are results that all Canadians can be proud of.

The number one issue for this government is getting people back to work, which will help the communities and the country grow.

Today's bill announces measures that would encourage hiring and provide additional financial support to Canadian workers and families during the recovery, including a temporary hiring credit for small businesses of up to $1,000 against small employer increases in their 2011 EI premiums over those paid in 2010.

Today's bill also proposes $4.5 million annually to expand the wage earners' protection program to cover employees who lose their jobs when their employer's attempt at restructuring takes longer than six months, is unsuccessful and ends in bankruptcy or receivership.

In conclusion, Canadians gave our Conservative government the mandate to continue to lead the way on the world stage. I am here to tell members that we will continue to lead the way and Bill C-13 is the way forward for this country.

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

Mr. Speaker, for this entire fishing season on the east coast of Newfoundland and Labrador, we have a shrimp plant that has not been working in quite some time. We are looking at a couple hundred people affected by this closure over this season and, for a lot of them, the benefits they received from employment insurance have now diminished.

I wonder if the hon. member would help me address how the economic action plan would help those people when I meet them soon.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, I, too, have, in northern Saskatchewan, freshwater fishing. What this government is doing is lowering taxes to help small businesses get back on their feet and to give them an opportunity to start hiring more people. That is why we have more people and why we are looking at further negotiations in the world free trade agreements. There are 50 new ones in negotiations right now. These will promote fishing--

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

You are drinking our own Kool-Aid.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, hopefully the member can go back and say to those people that this government is working hard to promote industry, all industries, from fishing, wild rice harvesting--

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

You have to be kidding.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

That would be lying on your part.

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, given that my colleague represents a constituency similar in many ways to the one I have the honour of representing, I would like to hear his thoughts on why, in the government's economic plan, we have not seen the priority put on first nations and the needs that first nations have in our regions in northern Canada, whether it is in terms of housing, funding for education or, quite frankly, a real commitment to economic development in some of the communities where the highest rates of poverty exist in our country.

Given that reality is so critical in our part of the country, I would very much like to hear his thoughts on why his government has been negligent on all of those priorities.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, as I earlier said, forestry and mining are very important in my riding. Those communities across northern Saskatchewan deal every day with those industries. Many first nations people are employed there. Many Métis are employed there. Many non-aboriginals are also employed there. We have people coming from Newfoundland and Labrador to Fort McMurray for employment. We have people coming from Ontario to northern Saskatchewan to work at the uranium mines. That is why we have invested over $1 billion just in the forestry alone for the pulp and paper and green transformation program. That promotes economic stimulus for northern Saskatchewan, as well. We have provided millions of dollars to the mining industry in order to promote job growth.

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, I was listening to one of my colleagues on the Liberal side talk about a shell game. I was quite intrigued by that comment because it is my understanding that the biggest shell game that ever happened was the $40 million that were distributed in brown envelopes. However, that is not my question.

I would ask the member to touch a bit on the capital cost allowance that our government is instituting in this bill.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, we have cut taxes by $120 million since 2006. We have taken one million low-income families, individuals and seniors off the tax rolls altogether, which is very important. We have cut taxes in every way. We cut personal taxes, consumption taxes, business taxes, excise taxes and much more. This includes cutting the personal income tax to 15%.

Wherever we can, we are working to lower the tax burden on Canadian families, as well as on small business in order to promote more business in Canada.

[Joy Smith, Conservative, Kildonan—St. Paul, MB]

Mr. Speaker, I am pleased to stand today in support of the budget implementation bill, Bill C-13. The bill has been debated for a very long time. It was initially tabled in the House on March 22, and today we are dealing with the implementation of the second phase of that bill.

What has happened since we started this discussion? Not only was it debated in the House, not only did it go to committee for a thorough examination and not only did it come back to the House, but we had an election. During that election, I think every member went door to door and talked about the budget. What happened in the end? The Conservatives have a majority government. Why? It is because Canadians said that this government would take care of the economy in this country.

Why were Canadians worried about that? They were worried because there was a disaster in Haiti, a disaster in Japan and a disaster in Iceland where two volcanoes erupted and caused a lot of problems with air quality and things like that. During those disasters, Canada generously participated to help communities and it kept a close eye on what was happening on our economic home front.

The Prime Minister has taken an amazing leadership role. Canada is known as the country with the most economic stability in the world at this point in time. It is not just this side of the House saying that. Many well-known companies, organizations and third parties have said that. Canada has the strongest job growth record in the G7.

What has happened because of this good planning? Six hundred thousand new jobs have been created and Canada's people are working. That is incredible.

The International Monetary Fund is forecasting that Canada will have the strongest overall economic growth in the G7 over the next two years. That is why we need to pass the second phase of this budget implementation bill and allow the economy to grow. Many wonderful things are happening and Canada is in a stable situation. Why? It is because our Prime Minister and the caucus have put together an economic plan that is good for Canada, Canadians, families and seniors.

Canada has the lowest total government net debt to GDP ratio in the G7, which is something to be proud of. We will get the deficit under control. There is a plan to do that.

The World Economic Forum ranks Canada's financial system as the soundest in the world for the fourth consecutive year. That is amazing in this global downturn. Moody's is renewing Canada's triple A credit rating due to our economic resilience. There is very high government financial strength. The world is saying that it is looking to Canada as a leader. As the prime minister of England said, “this is Canada's year”. This is Canada's year because of the leadership.

[The Acting Speaker, Barry Devolin]

Order, please. I must interrupt the hon. member for Kildonan—St. Paul at this point to move on to statements by members. When the House returns to this matter she will have six minutes remaining in her speech.