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

[Ted Opitz, Conservative, Etobicoke Centre, ON]

Madam Speaker, the work share arrangements for EI would allow other members to share in those work programs so wages and EI benefits would be distributed among a wider group of people.

[Wayne Easter, Liberal, Malpeque, PE]

Madam Speaker, I am pleased to have the opportunity to speak to the budget implementation act. However, I am very concerned about the limited time allowed. This act is about three inches thick, 640 pages plus, and the government, after three hours, brings in closure.

We are seeing the same thing at committees. When opposition brings motions before committee, the government goes in camera and basically votes against opposition motions and keeps them out of the public arena. What are we living in, an executive dictatorship in our country? Is this what the country is coming to?

This is a large budget bill with serious issues for Canadians in it, but the government shuts down debate. That is not the kind of country we have always known. We have known Canada to be a country that allowed debate, transparency and talked about issues in a comprehensive way. What we see from the government is closure.

Those on the back bench, although they get up and talk about its government, they seem to sit in fear, afraid to speak out against what cabinet is doing. It is a reckless government with a reckless agenda. It is just as simple as that.

The member for Oak Ridges—Markham can heckle all he likes, but the facts are the facts. This is a reckless government with a reckless agenda. We now have a huge deficit. The government has taken the country that was in a surplus position and drove it into deficit.

The government, to look at its message in the names of its bills, attempts to leave an impression. However, when Canadians listen to the names of government bills, they should not believe the implication in the name of the bill or what it should do is within the pages of that bill. The government is absolutely great at messaging, but it is what it does not tell us that we ought to pay attention to.

In the bill, the Conservatives talk about bringing in a family caregiver tax credit, which is a very important part. Also in the bill are a volunteer firefighter tax credit and a children's arts tax credit. Yes, it sounds good on the surface, but let us really look at it.

I will turn to the budget bill where it explains the volunteer firefighter tax credit.

I had a private member's bill in the House for years that would have done something for all the firefighters. If one serves as a firefighter, one deserves a tax credit. However, the government is denying the low-income earners. For students who may serve as volunteer firefighters, because they do not have a high income, the government would deny them the right to the same kind of credit, recognition and money as those who earn high incomes. In the government's budget implementation bill, this is a non-refundable tax credit. That means the low-income earners would not get the tax credit.

During the election we proposed, and what I proposed in my previous bill, a refundable tax credit. If one served, one deserved to get the money. However, as is the government's way, it has left the low-income people out of the bill.

Canadians should understand that when the government talks about a volunteer firefighter tax credit in the amount of $3,000, it is 15% of that and firefighters really end up with $450. Volunteer firefighters who are low-income earners, who still have to put gas in their vehicles to do the job, to get to the training, get zero, absolutely nothing.

That is the way the government operates. It supports the big corporations with tax credits and really, to a great extent, it throws a little chaff toward the small business sector. The multinational sector, the big corporations get the tax breaks and they get the tax breaks at a time when the income gap between the rich and poor is growing wider and wider. The way the government is moving forward is unacceptable.

As a party, we have asked the Conservatives to remove the minimum income threshold so low-income Canadians can also quality, but the Conservatives have refused. We think it is unconscionable for the Conservatives to deliberately exclude the very people who are most in need of help.

That is not the only area and it is not all in this budget. We can look at other areas where the Conservatives are involved. Let us look at the crime agenda. I was standing outside while the Minister of Public Safety was doing an interview. One of his responses was “A million here, a million there, we don't have the numbers”.

The member for Calgary Centre said in his remarks that the Conservatives wanted to be responsible with the public purse. We have never seen a government, in introducing legislation, as irresponsible as that government. It is bringing in a crime agenda that the Parliamentary Budget Officer claims could cost in the range of $9 billion.

The government does not have the figures. It will not produce the figures. We know what the crime agenda will do. At the end of the day, it will mean more jails, more costs and more than likely, if it goes the same way as the Americans have gone, more crime. What will happen is people will be imprisoned for longer periods of time. Where they go in for a soft crime, they will come out as hardened criminals.

The government will not even look at the facts and produce the figures to tell Canadians how much it will cost for that particular crime agenda. The costs are not just in the jails.

We fought an issue in the House during the last Parliament. It was over the prison farms. Anybody and everybody in the criminal justice system will say that prison farms were perhaps one of the best rehabilitative tools for prisoners in the system. The government did not look at the facts and closed them down. Some of those operations were in fact profitable, but the government did not want to hear it. It just put criminals in jail. That is what this crew does.

Again, it is a reckless expenditure of money that at the end of the day will produce poor results.

Let me go to my area of responsibility, which is international trade critic. There is not a whole lot in the budget, other than the fact that it will increase trade. The Minister of International Trade is going to China next week. He was at the committee today, but the chair of the committee would not let us ask him any questions. He would not let committee members ask any questions on the problem in the United States, the buy America proposal. The minister was only there to talk about the Canada-European trade agreement.

The government has a whole range of ministers in the area of international trade. There is the Minister of Foreign Affairs, but we know that most of his time is not spent concentrating on the subject at hand. Most of his time is spent defending the ridiculous expenditures of the President of the Treasury Board in terms of patronizing in his own riding.

My point is this: although it is good to be looking at trade in other areas, while the minister was flitting around the world, the government was caught with its pants down in terms of buy America. President Obama telegraphed on June 28 what he was going to do. There have been five speeches since that time, and the government failed to realize it and to be proactive by talking to the administration to stop him from closing down Canadian jobs with the buy American policy.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, initially budget 2011 was introduced in March. Then it was interrupted by a costly and unnecessary election. The Conservatives' platform was the 2011 budget, and the majority of Canadians decided they wanted it to proceed. The member opposite wants to stall the will of the people.

To whom does the member opposite want to deny the benefits in this implementation bill? Is it those who have infirm, dependent relatives? Is it the people who will benefit from the medical expense tax credit, or students who need financial assistance? Who is it that he wants to deny? Is it the firefighters who have been asking for the tax credit?

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, the Liberal Party does not want to deny anyone. That is the difference between the party over there, which forms the Government of Canada, and both opposition parties, for that matter. We want to ensure that low-income people, whether they are looking for the family caregiver tax credit or the volunteer firefighters' tax credit or any other, qualify for those tax credits and those moneys the same as rich people do. In the budget they do not qualify, because it is not a refundable tax credit. That is what we are saying: it should be.

Will the government come to its senses and assist the little people out there who do the same kind of service, but are going to be denied the moneys?

The bottom line, to respond to the first part of the member's question, is that we want to see a budget with this many pages and this much potential, both negative and positive, debated fully in the House, rather than rammed through as the government is doing.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, in the last federal election the New Democrats proposed a 2% cut in the small business tax. Our party actively campaigned on that. The results show that we gained a large number of members in this Parliament.

In this budget I do not see that 2% cut, yet Conservatives are giving away billions of dollars to the large corporations.

Why are the Conservatives against the small businesses?

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, the bottom line in terms of the budget is that yes, it covers a lot of area, but it misses covering the needs of the people who need the money the most.

I have heard colleagues of the member who just raised the question speak to this very issue. One of the most fundamental purposes of government is to create fairness and equity. That has been the tradition in Canada throughout the decades. We are seeing the opposite of that tradition and that policy in this budget, because it denies the money to the people who need assistance the most.

It is a budget that is extremely unfair. It is reactionary in many ways, and debate is shut down as though we have an executive dictatorship. This is a reckless agenda by a reckless government.

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, I am very pleased to enter the debate on Bill C-13 this afternoon, a very lively debate, and I am glad to see interest from members on all sides of the House on this important bill.

Bill C-13, Keeping Canada's Economy and Jobs Growing Act, is a very important one that follows up on our economic action plan that helped steer Canada through one of the most difficult recessions since the 1930s and in the lifetimes of most of the people here.

This is now the second phase of our action plan. The budget implementation bill we are discussing today brings into reality many of the things that were in the budget that was introduced in the spring and debated all the way through the course of the election. We ran on the pledges that are in the budget, and now it is time to implement them.

I will review a few of the things contained in this very big bill. It is a heavy piece of work, some 600 pages, and it is very important because it covers measures that will help keep our economy going in the right direction.

Our focus remains the economy. Our focus is creating jobs and keeping Canadians employed and making sure of the economic advantages we have in Canada, making sure they help us provide the measures that people depend on from government in this country and that we have the resources to keep meeting the needs of Canadians.

Some of the measures in the act include a temporary hiring credit for small business to encourage additional hiring. Some 525,000 small businesses in Canada will have the opportunity to take advantage of this credit to hire employees in the next year.

We are also expanding the tax support for clean energy generation to encourage green investments. Even in a tough economy, this is an important measure to help our environment. We are working on that as well, and provisions are in the bill.

We are extending the mineral exploration tax credit for flow-through share investors by one year to support Canada's mining sector. I come from the province of British Columbia, where mining is an extremely important part of our economy. We are a resource-rich country, and our mining sector is an important contributor to our GDP.

We will be simplifying customs tariffs in order to facilitate trade and lower the administrative burden for businesses. We are extending the accelerated capital cost allowance for manufacturing and processing machinery. That is very important to help keep Canada competitive in a competitive world. Those measures have been well received by the manufacturing sector, which has helped us maintain an economic edge in difficult times. That measure is being extended to that important part of our economy.

We are eliminating the mandatory retirement age for federally regulated employees in order to give older workers who wish to work longer the option of remaining in the workforce.

It is true we have an aging workforce. We have a shortage of skilled workers. I have a very skilled retirement community on Vancouver Island, but many of these people are quite able and willing to continue to contribute to Canada's economic activity by working just a little bit longer for the benefit of their own retirement in the future and for the benefit of their families.

Those are just some of the measures.

We are doing something to help our communities. For example, there will be a permanent annual investment of $2 billion in the gas tax fund to help our municipalities. This is something that the Federation of Canadian Municipalities has been asking for. Our B.C. municipalities have been asking for it. It is tremendously important to help catch up on the infrastructure deficit that many of our municipalities are facing.

Another very important measure is the volunteer firefighters tax credit. Since many of our rural communities cannot afford a full-time professional fire force, we depend on our volunteer firefighters, and they have been asking for this measure for some time. I am very proud we are able to deliver on that. It is a 15% non-refundable volunteer firefighters tax credit to the amount of $3,000 for those firefighters who perform at least 200 hours of service. In my community, this measure is very much appreciated.

While I am talking about volunteer firefighters, I want to mention a citizen we lost last year. He was named the Citizen of the Year in Parksville. His name was Don Brittain, and Don was the chief of the Coombs-Hilliers Volunteer Fire Department. He was fire chief for nearly two decades. This man exemplified what it means to be a volunteer. He motivated many other people. He knew everything there was to know about fighting fires.

I was at his funeral, and the community came out in a remarkable way to honour the contribution by this man to our community. This tax credit will not benefit Don Brittain, but many of the people he motivated will benefit from it in our rural communities, and I know it is very much appreciated.

We are helping families by introducing a new family caregiver tax credit to assist caregivers of all types of infirm dependent relatives. That is a welcome benefit in our communities.

We are removing the limit on the amount of eligible expenses that caregivers can claim under the medical expense tax credit in respect of financially dependent relatives.

These are all important measures to people in our economy.

Then there is the children's arts tax credit, which even in tough times will encourage young people and families not to miss the opportunity for young children to develop their artistic talents, and I know it is very much appreciated.

All of our efforts are geared toward respecting taxpayers, including phasing out the direct subsidy of political parties. I received an email from one of my constituents this morning stating how much he appreciates that measure, because he does not believe he should have to fund parties that he does not agree with or support.

Canada's economic performance has been noted around the world. Our debt to GDP ratio is one of the lowest in the G7 and in the G20, at about 34%.

I was recently at a Canada-EU forum at the EU Parliament in Strasbourg. The target for EU nations set by the Maastricht Treaty was 60%, just for comparison. We are way ahead of our competitors in our debt to GDP ratio. That is something we are proud of. Since 2006, this government paid down nearly $40 billion on our debt before the recession, and that has contributed to our healthy situation going through these troubled times.

We had more encouraging news from the IMF and the OECD. Both these organizations recently forecast that Canada's economy will be one of the strongest in the G7 this year and next. Similarly, Fitch Ratings and Moody's recently renewed Canada's AAA ratings. Moody's August statement credited Canada's strong rating to what it termed “economic resiliency, its high government financial strength, and its low susceptibility to event risk”.

One of my favourites is a quote from a Forbes business magazine that just came out:

Canada ranks No. 1 one in our annual look at the Best Countries for Business. While the U.S. is paralyzed by fears of a double-dip recession and Europe struggles with sovereign debt issues, Canada's economy has held up better than most. The $1.6 trillion economy is the ninth biggest in the world and grew 3.1% last year. It is expected to expand 2.4% in 2011, according to the Royal Bank of Canada.

We have a lot to be thankful for. Managing an economy through difficult times is something that has to be done very carefully and delicately. That is why these measures in Bill C-13 are very carefully crafted.

I note that time is getting skinny for me, so I would just like to comment on some of the economic measures that were put in place to stimulate the economy on Vancouver Island, in my area.

The new cruise ship terminal cost some $24 million. Approximately $8 million of that was from the federal stimulus plan.There are cruise ships coming in to that facility right now.

The Nanaimo Museum just reported it is seeing three to four times more visitors on the days when a cruise ship is in port. That is an indicator of the restaurants and businesses in the downtown Nanaimo area that are benefiting. As word gets out and more ships take advantage of this, we will see more tourism. When people come back to the cruise ship, we are ranked about 90% in terms of the experience people have had, and as the word gets out, we are expecting to see that spread to the entire mid-island area.

The pulp mills in our area are receiving benefits through the green energy transformation fund.

There was funding for our Vancouver Island University for the Deep Bay shellfish research centre. We are pushing forward with science that helps the expansion of our aquaculture industry, which is a very responsible industry, and recently there was more funding for a brand new international centre for sturgeon research, the only one of its kind in North America. That is attracting an international forum to Nanaimo that will bring scientists from around the world, and that will also help stimulate our economy.

All of these measures that we have been taking, including measures helping to keep people employed and measures targeting older workers and keeping people engaged, contribute to helping us get through the economic challenges.

We want to stay the course, keep our taxes low, keep our spending low and make sure we help Canada cruise through to more stable times.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Mr. Speaker, I thank my colleague for his speech.

I would like to ask him a question about the budget and families. The Conservatives say that the budget will help families. However, we see that there will be little help for caregivers. There is a tax credit for caregivers, but they generally do not have enough income to take advantage of it.

Have the Conservatives considered the possibility of direct tax benefits for caregivers rather than tax credits? In this way, whether they are low or middle income earners, they could receive financial assistance to continue helping the people and seniors in their family who often are sick.

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, some of the measures that have been referred to are small but incremental. On top of what we have already done, we have just added a family caregiver tax credit and a children's art tax credit. In addition to that, we have cut over 120 taxes since we formed government just a few years ago.

We cut the lowest personal income tax rate to 15%. We removed over a million Canadians from the tax roll entirely. We increased the amount that Canadians can earn tax free. We reduced the GST from 7% to 5%, putting nearly $1,000 back in the pocket of the average family, a measure that the party of the member opposite would like to reverse. We also introduced the universal child care benefit.

Altogether, these measures save the average family of four $3,000 a year. We think we are on track in helping families.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I think tax credits can be a good thing. They are a good thing if everybody benefits from them. However, there is a difference between a non-refundable tax credit and a refundable tax credit. Unfortunately, when we are talking about non-refundable tax credits, as we are here, those who are in the lowest income bracket do not get the benefit. Yet the government is acting as though everybody is going to benefit from its tax credit.

Does the hon. member recognize that those with very low incomes are not going to get the benefit of these tax credits?

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, I heard the member raise this point earlier in the debate. He does make a point about the lowest-income people, but if they are not paying taxes, of course they will not benefit directly from this program. However, they do benefit when we lower the GST, because even the lowest-income people pay lower GST. Why does this member's party want to raise the GST?

I remember that when the GST was introduced many years ago, it was this member's party that campaigned on getting rid of it—but they forgot to. We lowered it from 7% to 5%, which has helped all families in Canada.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I heard the member mention the IMF a couple of times and Forbes magazine.

I have another statistic from the IMF. The IMF projects that Canada's balance of payments deficit as a percentage of GDP is on its way to becoming one of the worst among advanced economies, worse than that of the U.S., and soon to be worse than those of Italy and Spain. Yet the government is more interested in selling our raw materials, whether it is oil going to the United States or raw logs going overseas to other countries.

What in this budget is going to help develop value-added industry in this country?

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, the member raises an interesting point. We are a resource-rich country. We are so fortunate in Canada to have the abundant resources that we do, that we are able to generate great income in our country to meet our domestic needs, and also have energy that is in demand all over the world. In fact, many people have described Canada as an energy superpower. It is the funds brought in from our energy sector that help to fund many of the programs that we have, including transfer payments to the provinces for health care and education.

That is why we are keen on ensuring that our green energy development goes ahead and that investments in our manufacturing sector go ahead, so that we can continue to meet the needs of all Canadians through the benefits that come in through our industry.

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

Mr. Speaker, this is my third 10-minute speech during debates on bills in a week, and I truly feel honoured to express my vision of Canada in the House.

I have taken the time to study aspects of the bill on implementing certain provisions of budget 2011 and, although I am in favour of some of the measures, others are not very useful and are even harmful in my eyes. As I have already mentioned on other occasions, the government is a major, essential economic player, and anything we do or stop doing has significant consequences for taxpayers, businesses and public servants.

In other words, Bill C-13, dubbed the “Keeping Canada's Economy and Jobs Growing Act”, is not worthy of its name. While the government claims to be promoting economic growth and job growth, we quickly see that it is not taking into consideration the priorities of Canadian families and that small businesses are being overlooked.

I will start with a tax measure that is useless to most and irritating because it is a shameless vote-buying ploy. I am talking about the children's arts tax credit, which will cost the national budget $110 million in lost taxes without clearly promoting participation in artistic activities or affecting the millions of families who do not pay taxes because of their specific situation.

Between 35% and 40% of Canadian taxpayers do not pay taxes for one reason or another. In the vast majority of cases, it is because of their low income. A significant portion of these low-income taxpayers are our seniors. We cannot blame them for not paying taxes, because they are living on less than $20,000 a year.

Another portion of these taxpayers is made up of families with young children whose parents are either young workers who earn close to minimum wage or victims of occasional or long-term unemployment. Most of these Canadian families will not be able to benefit from this tax credit because they do not have a high enough income. This is an elitist measure that excludes a large number of Canadians, people who need to get involved in society and give their children an opportunity to have enriching experiences.

Why exclude these families? Did the government call it a day after creating those 600,000 jobs and give up on addressing the pressing needs of Canadian families?

We have known for a long time that the Conservatives have decided to favour major corporations at the expense of small businesses. This year alone, the government has given nearly $2 billion in tax cuts to businesses that are not held accountable for this massive amount of money. Although our plan is clear on predictions for job creation, the Conservatives refuse to listen to us and implement support measures for Canadian small businesses. The NDP wants to help families directly by creating good-quality jobs. These jobs will enable Canadians to live a decent life in this fragile global economy.

This week, we received the Conservatives' support on a motion calling for immediate economic action. The motion received the unanimous support of the House. Since they recognize the need to act quickly, why do the Conservatives not use their strong mandate to take immediate action instead of giving us this bill with a misleading title? Yet they gave us a strong mandate by supporting that motion.

This bill includes very few measures to stimulate the Canadian economy. There is a temporary tax credit of up to $1,000 on employment insurance premiums, for one year only. This measure announced by the Conservatives does not target new job creation since it applies only to existing jobs. A business can obtain this tax credit by simply increasing an employee's hours. So how will this measure create jobs? It is wishful thinking to expect that that this measure will create jobs. Furthermore, since this measure is temporary, what guarantees that the jobs created this year will be kept next year? If the incentives for businesses are no longer there, why would they create jobs? While we are proposing sensible and responsible solutions for job creation, the Conservatives are throwing money out the window. Instead of giving a tax credit to create jobs, the Conservatives are blindly handing out tax credits.

In addition, there is no information available about the estimated number of jobs that will be created by this bill. We have the impression that the bill was thrown together. Canadian taxpayers do not want this government to squander their taxes, and they want to know what results to expect. This government must be responsible and forecast the results of this fiscal policy before implementing it. How many jobs will be created by these half measures or by this almost total lack of measures?

Is the government searching for economic priorities? I would like to provide one that is important to me in this “year of the entrepreneur”. In Canada, the entrepreneurship rate is declining and, according to the report on entrepreneurship, could sink into the red by 2018. The situation is that serious. Briefly, the report explains that the number of new entrepreneurs is not even sufficient to replenish firms that are already on the market. Owners of profitable and productive businesses will be forced to shut their doors if we do not act quickly.

Quebec has been hit harder than the other provinces by this problem. The government has a duty to take immediate action to deal with the problem of entrepreneurial renewal in Canada. It must get its priorities right and be proactive. Encouraging entrepreneurial renewal is the best way of ensuring that our economy will develop in a sustainable manner.

The NDP is proposing clear actions to support the Canadian economy: cut small business taxes from 11% to 9% and offer a tax credit of up to $4,500 for each job created within the Canadian economy. We also proposed an employee retention incentive that would include offering employers a tax credit of up to $1,000 if they commit to maintaining the jobs created.

Our employment plan aims to create 200,000 sustainable jobs each year, jobs that will support Canadian families. That is concrete action, touch wood. We will ensure Canada's economic prosperity by supporting small business. That is a plan that works and that will work if the government agrees to use it to create jobs. It is solid. It is a plan that responds to the needs of Canada's small businesses.

To conclude, I would like to say that one of my many weaknesses is the pride I inherited from my late father. I refuse to be treated like a monkey being tossed a handful of peanuts. These crumbs are an insult to the intelligence and dignity of this country's families—I am talking about the tax credit for families for art activities—and a large number of families are excluded, as I explained earlier. People need far more dignified and respectful measures.

Can I, as a member of Parliament, accept that a mostly ineffective, needlessly expensive measure—one that has no effect on the families that need it most—is being inserted into this bill?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, what does the member opposite have against employers who employ large numbers of people? We heard repeatedly that he was down on large corporations. However, as we tax large corporations at higher rates, that means they can provide fewer jobs. Not only that, he is also biting the hands that feed him. We have large employers, who are largely unionized and whose unions, after all, provided $85,000 worth of sponsorships for his party's recent convention.