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

[Deepak Obhrai, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, to be honest, it is rare that I listen to the NDP's economic policies. However, as I was listening to the member, what really surprised me was the point he made regarding political subsidy. He wants Canadian taxpayers to pay for his party. His party has difficulty raising money from the Canadian people. If people liked his party's policies they would give it money. When its members realize that is not a possibility, they want Canadian taxpayers to pay for their party.

What is even more interesting is the member mentioned that big corporations would be coming back and paying back. He forgot to look at the other side of the coin. There are limits regarding donations to political parties. Businesses are not allowed to donate to political parties. Unions and their buddies are not allowed to donate to them. That is why they are feeling the punch and why we see them crying about it.

[Jamie Nicholls, NDP, Vaudreuil—Soulanges, QC]

Mr. Speaker, our party is in a fairly good position to raise its own money, so it will not be a problem for the party.

What I said was that the most disadvantaged members in our society may not be able to participate in the political process because they will not be able to afford it. Therefore, if political parties have to constantly hit up individuals for money, those who do not have the money or whose social situation is affected by the government's economic policies might resent the fact that a political party is asking them for money. Therefore, we see that the per-vote subsidy would allow those poorest members of society to take part in the political process.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, first I want to congratulate my hon. colleague for what is one of the most thoughtful speeches I have heard delivered here from either side of the House. He talked about facts and developed arguments using logic that was respectful to all parties and history.

When I listen to the members opposite, what is always interesting is how rhetorical they get and substitute invective, such as name calling, for logic. My hon. colleague across just talked about us crying or something to that effect. What kind of childish argument is that?

Here are some facts. The two biggest deficits in Canadian history are Conservative: Michael Wilson, under the government of Brian Mulroney; and, the deficit last year of this current Minister of Finance.

What are the policies that led to our stable banking system? The Conservatives wanted banks to merge, to be deregulated and to sell insurance, all measures that were stopped and that Canada was thankful to not have in place to help us with the recession.

I ask my hon. colleague for his thoughts on the Conservatives' record and what he feels the NDP would do instead?

[Jamie Nicholls, NDP, Vaudreuil—Soulanges, QC]

Mr. Speaker, I am disturbed that the debate on this motion is being guillotined. We have time limits in the House. I am aware that I was not prevented from speaking, rather my speech was cut off in accordance with those time limits. However, I believe there are more comments of substance to be said about this legislation that might not be said due to time constraints.

To answer my hon. colleague's question, if we look at the economic record of NDP governments in Canada at the provincial level, we have shown ourselves to be fiscally responsible, fact-based and realistic about measures.

During the cuts to the transfers to provinces, in British Columbia Mike Harcourt's government did not reduce costs. It actually invested in infrastructure at that time. We now see that it is in a healthier position regarding its infrastructure.

There are many examples of NDP governments having been successful at managing the economy.

[Deepak Obhrai, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, it is an honour and a pleasure to rise and speak to this bill, a very important bill that talks about keeping Canada's economy and jobs market growing.

Members will remember quite clearly the recession of 2008. The government acted very strongly and brought in the first economic action plan, which included spending for infrastructure to ensure that there was money flowing into the country and that there were jobs.

The stimulus package worked all across the nation. It was a step that helped Canada weather the storm. I can say to all members that Canada, despite the fact of the global turmoil, weathered the storm very well.

Now we are coming to the same situation, due to the eurozone crisis and the instability in the U.S. market. We are again facing economic uncertainty, so the government has come forward, once more, with the second stage of the economic action plan which this bill is addressing.

When the first economic action plan was presented in the House, the NDP had the same arguments opposing it. The NDP opposed all the measures put into that action plan. Now those members are standing up and using the same arguments.

It is no surprise to anyone that members of the NDP are standing up again to oppose an economic action plan that works for Canada.

We hear the arguments made by the other side. The last speaker was talking about nitpicking. It is amazing. There is a recession in the world and this party is bringing bad news. Members of the NDP are saying that everything is going wrong and the sky is falling. It is the same thing they have always been saying. I have been sitting here, all these years, listening to this party giving the same arguments.

Despite the fact that some of the members have changed, nothing has changed in the NDP ideology. The NDP does not look at critical factors or what this bill will do. This bill addresses how we can get more people working. That is a key thing. Right now, as we speak, President Obama has a bill in the U.S.A. trying to get people back to work.

It is quite interesting that the NDP members will get up and talk about how we are losing jobs. Then they talk about the pipeline that is going to be built to the benefit of Canada. Who is opposing it? It is the NDP.

They will find some rationale, at any give time, to oppose anything that would benefit Canadians and the Canadian economy. Their rationale for always opposing everything is their ideology, which is big business, higher taxes, bigger taxes.

We just heard the NDP members talking about subsidies and how the taxpayers should pay for them, so they can go and collect money. I find it quite strange, but if they did make an effort to go out, they would find out what Canadians are actually saying. This time Canadians are saying that politicians should not get free money from taxpayers.

It is important to recognize what this bill is all about. It is about creating an economic environment that is there for businesses, big and small, to have the opportunity to hire people.

The bill talks about training people to ensure that our workforce is capable. People who have lost their jobs can get training and go back into the workforce. The important point here is to get people to work. That is what the NDP should understand.

There are provisions in the bill to help. Maybe the members of the NDP should see that this would help Canadians and maybe they should support this for a change. Now that they are the official opposition, they should take a rational look at it and support those measures. After they support it, they can come back and give their ideas on what would help Canadians. Working together is how we will get out of the recession.

My friend from Winnipeg talked about the ostrich with its head in the sand. That applies to the members of the NDP. They have their head in the sand and do not see what is happening globally. There is a crisis in Europe and in the United States. We do not live on an island. We are an integrated economy with the world. The impact of these things are being felt in this country.

A recession is going on. This is not a good time. It is not a time when figures are flying high and the economy is booming. The economy is not booming anywhere around the world. There are danger signs all around the world and we need to take steps to create an environment that will enable Canadians to get jobs. A Canadian who is willing to work can feed his family, take care of his children and send his children to school, and all those things that make societies very strong. However, the NDP would never find anything good. It is always negative.

In conclusion, I ask my friends on the other side to look at this carefully, as there are excellent points in this, and to support it because it is for the good of the country. If they have any better ideas, we would be more than happy to listen to them and work together. However, at the end of the day, we are talking about Canadians going back to work and a sound economy.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I was actually quite surprised that the hon. member opposite was so upset when asking the question.

It is outrageous that taxpayers must pay for political parties. What is more outrageous is that the government is saying that taxpayers need to pay for prisons, jets and all kinds of right-wing policies. This is outrageous.

Why are these policies part of an economic plan for a country that is in a recession?

[Deepak Obhrai, Conservative, Calgary East, AB]

Mr. Speaker, I should not be surprised by that question from the NDP.

Are we talking about jets? No. We are talking about arming our armed forces and getting them the best equipment for the future. We are talking about the future defence of this country. When we talk about our crime bill, it is about making our streets safe. That is what Canadians want and that is why Canadians chose us. Maybe she should consider that.

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

Mr. Speaker, I am not sure whether I want to thank the hon. member for his speech. It was not really a sales pitch for the budget. It was really more a diatribe against the NDP. However, he did say somewhere in there that he would be glad to hear some useful ideas.

I will give him this idea. There are a number of tax credits in this plan but they are non-refundable. I would make the suggestion that they should be refundable so that the least fortunate, the lowest income Canadian, would actually be able to benefit from them. I think that is a good suggestion. I would like to hear what he has to say about it.

[Deepak Obhrai, Conservative, Calgary East, AB]

Mr. Speaker, at least we have a suggestion, as opposed to criticism, from the other party. It was not a diatribe against the NDP. It is the NDP that is opposing Canada's action plan. However, he has given us a suggestion and we will look into it to see if it does benefit. We may come back with good news, who knows.

[David Sweet, Conservative, Ancaster—Dundas—Flamborough—Westdale, ON]

Mr. Speaker, I have listened to the NDP for the entire day and the last member actually talked about cherry-picking the facts. Who are the New Democrats going to believe? Do they believe the OECD, the IMF, Forbes magazine, Statistics Canada? All of these organizations have talked about the success of Canada through this global downturn and the fact that we added 600,000 new jobs.

The previous NDP member, again cherry-picking, mentioned that the report said that we needed more research and development. What he did not say was that was in the private sector. We lead, per capita, as far as government spending goes, in research and development.

I want to ask my colleague if he thinks that we should replace what the private sector should be doing with taxpayer money?

[Deepak Obhrai, Conservative, Calgary East, AB]

Mr. Speaker, first he asked what the NDP believes in, which reports or anything else. I will be very blunt. The NDP will believe in any report that is negative to Canada. That is how it cherry picks.

In answer to my dear colleague's question, it is very simple. There needs to be a good balance between the government and the private sector, but, most important, we know that it is the private sector that will carry the most important innovation and investment. Therefore, our job is to create that environment.

[Lynne Yelich, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, I am pleased to stand in the House today to speak to Bill C-13, the keeping Canada's economy and jobs growing act. Our government has made Canada's economy our number one priority. We have been keenly focused on creating jobs and providing the right conditions for economic growth. We recognize the economy is what Canadians are concerned about and we are working hard on their behalf.

The bill that we are debating is an important part of the next phase of Canada's economic action plan. It builds on the tremendous work done by our government to secure Canada's economic success. There are many positive aspects of this bill that are deserving of mention and that I am pleased to address. Most important, this bill is a clear plan to promote job creation. It is a clear plan to create economic growth. It provides support for our communities. It helps families and invests in education and training. Not only does this bill address these many important issues, but it does so while respecting taxpayers, something that has been the hallmark of our government.

This bill contains several measures that would encourage the hiring of more Canadians and create necessary jobs. It would provide a temporary hiring credit for small businesses, the very companies that are so vital to building our economy. This bill would reduce red tape because reducing red tape makes it easier for Canadians to get jobs and keep them. We are also supporting young entrepreneurs by providing $20 million to enable the Canadian Youth Business Foundation to continue assisting young entrepreneurs.

These initiatives—

[Scott Andrews, Liberal, Avalon, NL]

Mr. Speaker, I rise on a point of order. Since the government put closure on this bill, one would think members would be here to listen to it. There should be a quorum call right now.

[The Acting Speaker, Conservative, Bruce Stanton]

I am seeing quorum.

The hon. Minister of State for Western Economic Diversification.

[Lynne Yelich, Conservative, Blackstrap, SK]

Mr. Speaker, that is interesting that one single Liberal in the House can call quorum and--