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

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, that is an excellent point. No political party and no government has a monopoly on good ideas. If opposition parties want to propose them, we will certainly listen to them.

I wrote a piece in the past that credited both Preston Manning and Jean Chrétien for the good state the country's finances were in. I credited Preston Manning in opposition for putting the heat on the government of the day under Mr. Chrétien and Mr. Chrétien for enacting the ideas.

Why the opposition today would want to raise taxes and spend wildly, I do not know. I think that explains in part why the third party today is no longer the government.

[Brad Butt, Conservative, Mississauga—Streetsville, ON]

Mr. Speaker, I compliment my very learned friend across the aisle. I know that his background prior to coming here was a tax fighter and he deserves to be congratulated for bringing that skill and knowledge to the House of Commons.

Perhaps he could detail, in a little more specific way, why targeted tax cuts and tax credit initiatives that are in this legislation are important in affecting general behaviour in different sectors that actually help build and grow the economy and for employers to retain and hire new people. Why are targeted tax credits like this so important?

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, over the last five years, our government, particularly on the personal income tax side, has used a number of tax credits and incentives to encourage certain activities. The example of our volunteer firefighters tax credit is a perfect one, whereby we are trying to ensure that these organizations continue to exist throughout the country, thereby saving government money from having to fill in were these volunteers to suddenly disappear.

Similarly, we have seen other measures on trades people, for example, to lower their taxes in their day-to-day pursuit of jobs and opportunities.

We must not forget that when it comes to business taxes, we have actually picked up on reforms that were begun by the Liberal government, which is to keep putting the business tax down to 15%, a broad tax that favours all businesses in this country and encourages them to come here and create jobs.

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, I am pleased to speak to Bill C-13, an act to implement certain provisions of the 2011 budget.

As we navigate through these troubled economic waters, this is a sound budget to maintain our fiscal advantage while offering Canadians the support to enhance their quality of life. I fully support this budget for its measures to create jobs and economic growth to support hard-working Canadians while maintaining Canada's fiscal advantage.

Throughout this period of economic instability, Canada has received many international accolades for its relatively sound fiscal position. I would like to mention a few of these accolades to show that our economic plan is working and should be continued.

First, for the third straight year, the World Economic Forum has ranked Canada's banking system as the strongest in the world. Second, Canada made headlines recently as Forbes magazine ranked Canada number one as the best place to do business worldwide. Third, the International Monetary Fund recently declared that Canada's overall fiscal outlook is the best in the G20. What is more, Canada has had seven straight quarters of economic growth, which is quite remarkable considering the economic instability worldwide.

I congratulate the finance minister for the leadership role he has played in the excellent financial management of Canada. “Canada's low tax plan has created a healthy economic environment for business investment and we applaud the government for staying the course,” said the Canadian Chamber of Commerce, which represents business across the country.

Our government is fully aware that to employ people we need to create a favourable climate for business, and we are doing our best to create favourable climates throughout the country. Measures include tax credits to hire new staff and a reduction in red tape. Support for the hiring credit comes from the Canadian Federation of Agriculture which stated that it will help farm operators that are looking to expand. Speaking of creating favourable climates for business, our government is reducing the red tape that impedes economic growth.

Businesses like Yanke, a Saskatchewan based trucking company, will benefit from reduced bureaucratic hurdles. Recently, Yanke announced that it will be building a transportation and logistics centre, a hub which will bring between 400 and 500 truckloads per week and 40 new jobs to the Regina area. A couple of weeks ago, Alliance Grain Traders announced it will build a pasta processing plant that will employ 60 full-time employees upon completion.

Companies like Yanke and Alliance Grain Traders are able to expand operations which require additional staff because the conditions in Canada are favourable for expansion.

I am proud to say, as my colleagues have said, that 600,000 net new jobs have been created since July 2009. I am especially proud to say that Saskatchewan boasts full employment. It has the lowest unemployment rate in the country at 4%, with 5% being considered full employment. Our low tax plan for jobs and growth is working.

I would like to speak for a moment about how the bill will help communities. Having previously been involved with the municipal government, I realize the challenges involved in funding infrastructure. For this reason, I am pleased our government is investing $2 billion in the gas tax fund. This will provide predictable long-term infrastructure funding for municipalities. Regina, Moose Jaw, and the 11 rural municipalities in my riding will be able to develop long-term plans to fix roads, build power plants, repair bridges and water treatment facilities, and do many other projects. This funding will replace aging infrastructure for the health and safety of Canadians while reducing the municipal tax load that families carry. I call that a good plan.

Let me take a moment to talk about benefits for the agriculture industry. A significant portion of my riding revolves around the agriculture sector. Whether directly or indirectly, Bill C-13 contains measures that will promote sustainable agriculture through targeted assistance to support innovation and long-term profitability. This includes an investment of $50 million over two years to support innovations. Farmers from Caronport to Rouleau to Mossbank and across western Canada will benefit from innovations created through this funding in the years to come.

Let me talk about seniors. Seniors have shaped a generation. They fought for our freedom and built the foundation of our country. We introduced pension splitting a couple of years ago which helped Canadian seniors better manage their finances. Additionally, we have removed over 85,000 seniors from the tax rolls and increased the age credit amount by $2,000. Now, to further support seniors, we are enhancing the guaranteed income supplement for low income seniors to the tune of about $600 for seniors who are single and $840 for couples. The Canadian Labour Congress encouraged this measure and our government listened. It stated that enhancing the guaranteed income supplement is a win for every senior living in Canada.

To further improve the quality of life for seniors, we are expanding the new horizons for seniors program. The extra funding for this program will help ensure that seniors benefit from activities to maintain active and social lives.

Canadians are living longer and much healthier lives than a generation ago, and as a result, remain capable past 65 years of age. I perhaps more than anyone else in the House believe that individuals should not be required to retire at age 65 if they can still do the job competently. Since being elected in 2008, I have taken great pride in being able to help businesses, seniors, youth and hard-working people in my riding with their issues and concerns. Our seniors are a valuable commodity and deserve to be treated as such. I very much support the elimination of this outdated age requirement.

We are continuing to increase support for seniors as shown through these measures.

Let me take a minute to talk about how Bill C-13 would have a positive impact on education.

Our government recognizes the economic benefits that come with investing in education and training. Having been involved in the education system for many years, I am pleased that our government is taking real steps to improve the financial stability of Canadian students as they pursue post-secondary studies. Through Bill C-13, our government is enhancing and expanding access and eligibility for student loans and grants for full-time and part-time secondary students.

Our government realizes there is a shortage of skilled labour and we are offering tax relief with respect to occupational, trade and professional examination fees.

Our government realizes that today's students are tomorrow's leaders and need support to realize their potential.

We are committed to a responsible, credible approach to balancing the budget by 2014-15 in a manner that will create greater efficiency and effectiveness within the operation of government and the many services it provides. We will do this without raising taxes, and without slashing transfer payments to health, education and support for seniors.

Measures included in the bill would help ensure the Canadian government is supporting Canadians as we work our way out of the economic crisis and into a period of sustained economic growth while maintaining a relatively strong fiscal advantage.

I hope all members of the House will join me in supporting this important budget which provides help to Canadians. I look forward to a continuing discussion of this bill.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I want to thank the member opposite for his speech.

I have some questions for him about the current state of affairs. The government says we are staying on course and that everything is just fine. However, 1.4 million Canadians are still out of work. If we count those who have given up and are no longer looking for work, there are 1.7 million Canadians without work. The government says it is addressing the matter, but why is it not using our proposals to resolve this problem and investing more in infrastructure and helping small businesses?

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, we need to support our industrial base and we need to increase employment. We understand that.

We will hear many speakers from this side of the House talk about how the economy is very fragile, and it is. Employment is also fragile but we are working hard to change that. Let me mention a new program starting at the SIAST Wascana campus. This program teaches young people to be plumbers. It has just seen the light of day in the last couple of months. It is an attempt to promote training and education for people so that they can find employment in today's economy.

We are aware of what the member has said and we are working hard to alleviate that particular need.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the Conservatives and Liberals agree on one aspect of this bill, which is the volunteer firefighters tax credit. We recognize the valuable contributions our volunteer firefighters make. Where we tend to disagree is that the Liberal Party believes that volunteer firefighters at a low-income threshold should also get a tax benefit. According to the bill, the government would penalize low-income volunteer firefighters.

Does the member see the value in recognizing all volunteer firefighters, including those with a low income?

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, we are certainly aware that the bill needs some work in terms of some things that may not be totally covered. We are aware there is some discrepancy with respect to that part of the bill. We will certainly look at that and cover the bases so that all will be treated fairly.

[Stella Ambler, Conservative, Mississauga South, ON]

Mr. Speaker, we all know that the first phase of Canada's economic action plan was a huge success for Canada. Almost 600,000 jobs have been created since July 2009 and in the category of economic growth, Canada is the best of all the G7 countries.

My hon. colleague from Palliser knows his community well. Could he tell us how the next phase of Canada's economic action plan would impact his community and how the good things in that plan would help the people in his community and all of Canada?

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, we realize there are many needs to deal with, particularly in infrastructure. Canada's economic action plan has supplied funding for a number of projects. One that comes to mind and which is just being completed is the overpass on Highway 1 which ties into Lewvan Drive in Regina. This overpass is necessary because of increased traffic, particularly freight traffic that will find its way to the international terminal west of the city.

Projects that received funding in phase one of the economic action plan are now coming to completion. Those projects will alleviate a lot of problems for people and will increase productivity for our province.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I am pleased to rise in the House today to debate Bill C-13. This bill implements certain provisions of the 2011 budget.

I am sad to see that the Conservatives are once again showing their lack of respect for our democratic institutions and for Canadians by imposing strict time limits on the debate. The Conservatives' arrogance is an insult to Canadians, more than 60% of whom did not vote for their narrow ideology that defies reason and facts.

The Liberal Party cannot support this bill because it contains a significant number of inadequacies in its current form. With this bill the Conservatives are deliberately excluding low-income Canadians from measures such as the family caregiver tax credit, the volunteer firefighters tax credit and the children's arts tax credit.

How can low-income families and individuals benefit from a non-refundable tax credit when quite often, they do not have enough income to be taxed? Why are the Conservatives choosing to exclude the most vulnerable among us at a time when the economy is so precarious?

For example, if people quit their jobs to take care of loved ones at home, how will they take advantage of a tax credit when they have no income? There are many more examples of how these proposed measures will not benefit those who need them most.

The main problem with this bill has to do with the fact that to be eligible for most of the measures, there is a minimum income threshold. The Conservatives decided to play petty politics with tax credits instead of making them refundable so that low-income Canadians could also benefit, as we proposed. That shows once again that this Conservative government is ignoring Canadians in need.

The Liberal Party wants to work with the government to improve this bill, but it also understands that the Conservatives never listen to the advice of the House or the Canadian public. This government must start working on the problems facing Canadians instead of creating conflicts. A responsible government would not choose winners and losers. It would not choose to ignore a large segment of the population. It would not choose to ignore facts and reason for ideological purposes.

A number of other measures in this bill do not serve Canadian interests and demonstrate that this government has mishandled many issues. Take, for example, the higher charges being imposed on Ontario and Quebec softwood lumber exporters. A few years ago, the Conservative government tried to buy peace with our American forestry competitors, at a cost of $1 billion. Here we are today, forced to comply with the London Court of International Arbitration ruling of January 21, 2011, and increase taxes on this sector of our economy, which continues to be targeted by U.S. trade claims despite the $1 billion already wasted.

The higher charges that Ontario and Quebec exporters will have to face is another demonstration of poor Conservative management. Why does this government prefer to placate Washington instead of standing up for the Canadian workers it is supposed to represent? More than $1 billion has been wasted already, yet the Conservatives have decided to kowtow to the United States once again.

In addition, certain credits set out in this bill are completely ineffective. For example, the small business hiring credit aims to compensate for an increase in employment insurance premiums for some small and medium-size businesses. The problem is that this credit is taxable and is capped at $1,000. To obtain this credit, the business must have paid higher employment insurance premiums in 2011 than in 2010, as long as the 2010 amount was $10,000 or less. Because of these restrictions, the credit targets very small businesses as opposed to all small and medium-size businesses.

For instance, a small business that employs 11 people, each earning $38,000, would be too large to qualify. Based on our calculations, approximately 600,000 small and medium-sized businesses could not take advantage of the credit, which is just another example of this government's petty politics that do nothing to help Canadians.

On top of all that, let us not forget that the Conservatives also announced they want to increase EI premiums by 5.6% in January 2012. Because of that increase, a business with 10 employees, each earning an annual salary of $40,000, would have to pay $800 more in EI premiums next year. In short, any amount left over from the credit will all be clawed back in taxes and increased EI premiums.

The Conservative government seems to be trying to fool Canadians by offering just a few small and medium-sized businesses a hiring credit, when it knows very well that that amount will be taken back in full. This is so typical of the Conservatives: lots of hoopla, with no real results—except for their friends. Instead of giving tax breaks to wealthy corporations that are eliminating jobs in Canada, why not give real tax credits to our small and medium-sized businesses that are creating jobs in Canada?

Another weak point in this bill relates to the gas tax fund. The provisions of that section place a $2 billion limit on annual transfers to municipalities for infrastructure projects. That very fund was created in 2004 by the previous Liberal government, which had, at the time, made provisions for that $2 billion limit to be increased in order to account for inflation and population growth, things that this Conservative government is choosing to ignore. The amount set out in this bill does not correspond to today's reality and does not provide all the help the municipalities need to address the infrastructure deficit, which the Federation of Canadian Municipalities now estimates at $123 billion.

Municipalities—perhaps with the exception of Muskoka—are suffering, and the government is not taking their needs into account. If we consider the facts that municipalities have been growing since 2004, that costs are increasing as a result of inflation, and that our infrastructure is crumbling, as we have unfortunately seen with the Champlain Bridge in Montreal, setting a $2 billion limit now is illogical.

The transfer to municipalities should have been increased in order to take demographic growth and inflation into account; instead, the government preferred to load an additional burden on the backs of municipalities in a typically Conservative manner, namely, without consultation, without debate and without a logical rationale.

Another problematic section is that pertaining to the Canadian securities regulator. The Canadian Securities Transition Office was supposed to be a temporary body set up to establish the permanent organization; however, under Bill C-13, Parliament will have to allocate additional funds to maintain this transition office. By so doing, the Conservatives are trying to force the provinces to accept what they want rather than working with the provinces to implement a functional regulatory system from coast to coast.

If the government wants to show good faith, it will take into account the proposals of the Liberal Party and Canadians. These simple and realistic proposals could easily be implemented. However, by limiting the debate on this 642-page bill to 15 seconds per page, the government is showing that it does not care about debate or about the reasonable proposals that Canadians and the opposition are making. This is an insult to Canadians who do not support the Conservative agenda. Given the current economic situation, we cannot abandon those in need.

The Liberal Party thus commits to defending those whom this government neglects. We cannot support Bill C-13 until the many deficiencies we have pointed out have been fixed.

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, we hear a lot these days about taxing the rich and making the rich pay, and the member touched on that in his speech. I would like to point out that there is a lot talk about tax credits that are offered to people who actually do not pay tax.

In light of the fact that the top 10% of income earners in our country, which begins at $80,000, pays 57% of all income taxes, the top 25% of income earners, which begins at $50,000, pays 82% of all federal income receipts, does the member believe that when tax cuts or tax relief is offered, it should go primarily to people who actually pay taxes, as opposed to being handed out to people who do not pay taxes in the form of spending?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I did not have a chance in my speech to discuss taxes and the amount of taxes being paid by individuals. The only remark I made in my speech was that the large corporations were getting the tax breaks in this budget instead of all Canadians getting a tax break.

The challenge of any government, and it does not have to be a right-wing ideology-driven government like the Conservative government, is that it does not have to just give tax breaks to the people who voted for them. The challenge is to help everybody, the most in need.

In times like these, when people are having a hard time making ends meet, those are the people who should be helped. There are proposals for non-refundable tax credits. The tax credits have to be refundable or they are not effective.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, it is very clear that everyone on both sides of the House understands that small businesses drive the economy and create over 50% of the jobs. Yet we have the Conservative government proposing to tax small businesses in the new year with the payroll tax. How would this affect small businesses in his riding?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I mentioned in my speech that the number of companies that would be eligible for the new hires program would be very minimal. It is supposed to be geared toward small business enterprises, but it will actually only help a few very small businesses with less than 10 employees.

What will be the repercussion? Even if they were eligible to get the $1,000 maximum eligible tax credit, it would be taxable and then it would be offset by an increase in employment premiums.

The small businesses in my riding will not be any further ahead.