Bill C-38 (Historical)

Jobs, Growth and Long-term Prosperity Act

An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures

Part 1 of this enactment implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) expands the list of eligible expenses under the Medical Expense Tax Credit to include blood coagulation monitors and their disposable peripherals;
(b) introduces a temporary measure to allow certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract;
(c) extends, for one year, the temporary Mineral Exploration Tax Credit for flow-through share investors;
(d) allows corporations to make split and late eligible dividend designations;
(e) makes the salary of the Governor General taxable and adjusts that salary;
(f) allows a designated partner of a partnership to provide a waiver on behalf of all partners to extend the time limit for issuing a determination in respect of the partnership;
(g) amends the penalty applicable to promoters of charitable donation tax shelters who file false registration information or who fail to register a tax shelter prior to selling interests in the tax shelter;
(h) introduces a new penalty applicable to tax shelter promoters who fail to respond to a demand to file an information return or who file an information return that contains false or misleading sales information;
(i) limits the period for which a tax shelter identification number is valid to one calendar year;
(j) modifies the rules for registering certain foreign charitable organizations as qualified donees;
(k) amends the rules for determining the extent to which a charity has engaged in political activities; and
(l) provides the Minister of National Revenue with the authority to suspend the privileges, with respect to issuing tax receipts, of a registered charity or a registered Canadian amateur athletic association if the charity or association fails to report information that is required to be filed annually in an information return or devotes resources to political activities in excess of the limits set out in the Income Tax Act.
Part 1 also implements other selected income tax measures and related measures. Most notably, it
(a) amends the Income Tax Act consequential on the implementation of the Marketing Freedom for Grain Farmers Act, including the extension of the tax deferral allowed to farmers in a designated area who produce listed grains and receive deferred cash purchase tickets to all Canadian farmers who produce listed grains and receive deferred cash purchase tickets;
(b) provides authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return; and
(c) introduces a requirement for commercial tax preparers to file income tax returns electronically.
Part 2 amends the Excise Tax Act to implement certain excise tax and goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 29, 2012 Budget. It expands the list of GST/HST zero-rated medical and assistive devices as well as the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases. It also exempts certain pharmacists’ professional services from the GST/HST, other than prescription drug dispensing services that are already zero-rated. It further allows certain literacy organizations to claim a rebate of the GST and the federal component of the HST paid on the acquisition of books to be given away for free by those organizations. It also implements legislative requirements relating to the Government of British Columbia’s decision to exit the harmonized sales tax framework. Additional amendments to that Act and related regulations in respect of foreign-based rental vehicles temporarily imported by Canadian residents provide, in certain circumstances, relief from the GST/HST, the Green Levy on fuel-inefficient vehicles and the automobile air conditioner tax. This Part further amends that Act to ensure that changes to the standardized fuel consumption test method used for the EnerGuide, as announced on February 17, 2012 by the Minister of Natural Resources, do not affect the application of the Green Levy.
Finally, Part 2 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to provide authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return.
Part 3 contains certain measures related to responsible resource development.
Division 1 of Part 3 enacts the Canadian Environmental Assessment Act, 2012, which establishes a new federal environmental assessment regime. Assessments are conducted in relation to projects, designated by regulations or by the Minister of the Environment, to determine whether they are likely to cause significant adverse environmental effects that fall within the legislative authority of Parliament, or that are directly linked or necessarily incidental to a federal authority’s exercise of a power or performance of a duty or function that is required for the carrying out of the project.
The Canadian Environmental Assessment Agency, the Canadian Nuclear Safety Commission, the National Energy Board or a review panel established by the Minister are to conduct assessments within applicable time limits. At the end of an assessment, a decision statement is to be issued to the project proponent who is required to comply with the conditions set out in it.
The enactment provides for cooperation between the federal government and other jurisdictions by enabling the delegation of an environmental assessment, the substitution of the process of another jurisdiction for an environmental assessment under the Act and the exclusion of a project from the application of the Act when there is an equivalent assessment by another jurisdiction. The enactment requires that there be opportunities for public participation during an environmental assessment, that participant funding programs and a public registry be established, and that there be follow-up programs in relation to all environmental assessments. It also provides for powers of inspection and fines.
Finally, the enactment specifies that federal authorities are not to take certain measures regarding the carrying out of projects on federal lands or outside Canada unless they determine that those projects are not likely to cause significant adverse environmental effects.
This Division also makes related amendments to the Environmental Violations Administrative Monetary Penalties Act and consequential amendments to other Acts, and repeals the Canadian Environmental Assessment Act.
Division 2 of Part 3 amends the National Energy Board Act to allow the Governor in Council to make the decision about the issuance of certificates for major pipelines. It amends the Act to establish time limits for regulatory reviews under the Act and to enhance the powers of the National Energy Board Chairperson and the Minister responsible for the Act to ensure that those reviews are conducted in a timely manner. It also amends the Act to permit the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters and it establishes an administrative monetary penalty system.
Division 3 of Part 3 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters.
Division 4 of Part 3 amends the Nuclear Safety and Control Act to extend the maximum allowable term of temporary members of the Canadian Nuclear Safety Commission from six months to three years. It is also amended to allow for a licence to be transferred with the consent of that Commission and it puts in place an administrative monetary penalty system.
Division 5 of Part 3 amends the Fisheries Act to focus that Act on the protection of fish that support commercial, recreational or Aboriginal fisheries and to more effectively manage those activities that pose the greatest threats to these fisheries. The amendments provide additional clarity for the authorization of serious harm to fish and of deposits of deleterious substances. The amendments allow the Minister to enter into agreements with provinces and with other bodies, provide for the control and management of aquatic invasive species, clarify and expand the powers of inspectors, and permit the Governor in Council to designate another Minister as the Minister responsible for the administration and enforcement of subsections 36(3) to (6) of the Fisheries Act for the purposes of, and in relation to, subject matters set out by order.
Division 6 of Part 3 amends the Canadian Environmental Protection Act, 1999 to provide the Minister of the Environment with the authority to renew disposal at sea permits in prescribed circumstances. It is also amended to change the publication requirements for disposal at sea permits and to provide authority to make regulations respecting time limits for their issuance and renewal.
Division 7 of Part 3 amends the Species at Risk Act to allow for the issuance of authorizations with a longer term, to clarify the authority to renew the authorizations and to make compliance with conditions of permits enforceable. The Act is also amended to provide authority to make regulations respecting time limits for the issuance and renewal of permits under the Act. Furthermore, section 77 is amended to ensure that the National Energy Board will be able to issue a certificate when required to do so by the Governor in Council under subsection 54(1) of the National Energy Board Act.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends a number of Acts to eliminate the requirement for the Auditor General of Canada to undertake annual financial audits of certain entities and to assess the performance reports of two agencies. This Division also eliminates other related obligations.
Division 2 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Cooperative Credit Associations Act to prohibit the issuance of life annuity-like products.
Division 3 of Part 4 provides that PPP Canada Inc. is an agent of Her Majesty for purposes limited to its mandated activities at the federal level, including the provision of advice to federal departments and Crown corporations on public-private partnership projects.
Division 4 of Part 4 amends the Northwest Territories Act, the Nunavut Act and the Yukon Act to provide the authority for the Governor in Council to set, on the recommendation of the Minister of Finance, the maximum amount of territorial borrowings and to make regulations in relation to those maximum amounts, including what constitutes borrowing, the relevant entities and the valuation of the borrowings.
Division 5 of Part 4 amends the Financial Administration Act to modify, for parent Crown corporations, the period to which their quarterly financial reports relate, so that it is aligned with their financial year, and to include in the place of certain annual tabling requirements related to the business and activities of parent Crown corporations a requirement to make public consolidated quarterly reports on their business and activities. It also amends the Alternative Fuels Act and the Public Service Employment Act to eliminate certain reporting requirements.
Division 6 of Part 4 amends the Department of Human Resources and Skills Development Act to establish the Social Security Tribunal and to add provisions authorizing the electronic administration or enforcement of programs, legislation, activities or policies. It also amends the Canada Pension Plan, the Old Age Security Act and the Employment Insurance Act so that appeals from decisions made under those Acts will be heard by the Social Security Tribunal. Finally, it provides for transitional provisions and makes consequential amendments to other Acts.
Division 7 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the protection of personal information obtained in the course of administering or enforcing the Canada Pension Plan and the Old Age Security Act and repeals provisions in the Canada Pension Plan and the Old Age Security Act that are substantially the same as those that are added to the Human Resources and Skills Development Act.
Division 8 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the social insurance registers and Social Insurance Numbers. It also amends the Canada Pension Plan in relation to Social Insurance Numbers and the Employment Insurance Act to repeal certain provisions relating to the social insurance registers and Social Insurance Numbers and to maintain the power to charge the costs of those registers to the Employment Insurance Operating Account.
Division 9 of Part 4 amends the Parks Canada Agency Act to provide that the Agency may enter into agreements with other ministers or bodies to assist in the administration and enforcement of legislation in places outside national parks, national historic sites, national marine conservation areas and other protected heritage areas if considerations of geography make it impractical for the other minister or body to administer and enforce that legislation in those places. It also amends that Act to provide that the Chief Executive Officer is to report to the Minister of the Environment under section 31 of that Act every five years. It amends that Act to remove the requirements for annual corporate plans, annual reports and annual audits, and amends that Act, the Canada National Parks Act and the Canada National Marine Conservation Areas Act to provide that that Minister is to review management plans for national parks, national historic sites, national marine conservation areas and other protected heritage areas at least every 10 years and is to have any amendments to a plan tabled in Parliament.
Division 10 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act in order to allow public sector investment pools that satisfy certain criteria, including pursuing commercial objectives, to directly invest in a Canadian financial institution, subject to approval by the Minister of Finance.
Division 11 of Part 4 amends the National Housing Act, the Canada Mortgage and Housing Corporation Act and the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act to enhance the governance and oversight framework of the Canada Mortgage and Housing Corporation.
This Division also amends the National Housing Act to establish a registry for institutions that issue covered bonds and for covered bond programs and to provide for the protection of covered bond contracts and covered bond collateral in the event of an issuer’s bankruptcy or insolvency. It also makes amendments to the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to prohibit institutions from issuing covered bonds except within the framework established under the National Housing Act. Finally, it includes a coordinating amendment to the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act.
Division 12 of Part 4 implements the Framework Agreement on Integrated Cross-Border Maritime Law Enforcement Operations between the Government of Canada and the Government of the United States of America signed on May 26, 2009.
Division 13 of Part 4 amends the Bretton Woods and Related Agreements Act to reflect an increase in Canada’s quota subscription, as related to the ratification of the 2010 Quota and Governance reform resolution of the Board of Governors of the International Monetary Fund, and to align the timing of the annual report under that Act to correspond to that of the annual report under the Official Development Assistance Accountability Act.
Division 14 of Part 4 amends the Canada Health Act so that members of the Royal Canadian Mounted Police are included in the definition of “insured person”.
Division 15 of Part 4 amends the Canadian Security Intelligence Service Act to
(a) remove the office of the Inspector General;
(b) require the Security Intelligence Review Committee to submit to the Minister of Public Safety and Emergency Preparedness a certificate on the Director of the Canadian Security Intelligence Service’s annual report; and
(c) increase the information on the Service’s activities to be provided by that Committee to that Minister.
Division 16 of Part 4 amends the Currency Act to clarify certain provisions that relate to the calling in and the redemption of coins.
Division 17 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act in order to implement the total transfer protection for the 2012-2013 fiscal year and to give effect to certain elements of major transfer renewal that were announced by the Minister of Finance on December 19, 2011. It also makes certain administrative amendments to that Act and to the Canada Health Act.
Division 18 of Part 4 amends the Fisheries Act to authorize the Minister of Fisheries and Oceans to allocate fish for the purpose of financing scientific and fisheries management activities in the context of joint project agreements.
Division 19 of Part 4 amends the Food and Drugs Act to give the Minister of Health the power to establish a list that sets out prescription drugs or classes of prescription drugs and to provide that the list may be incorporated by reference. It also gives the Minister the power to issue marketing authorizations that exempt a food, or an advertisement with respect to a food, from certain provisions of the Act. The division also provides that a regulation with respect to a food and a marketing authorization may incorporate by reference any document. It also makes consequential amendments to other Acts.
Division 20 of Part 4 amends the Government Employees Compensation Act to allow prescribed entities to be subrogated to the rights of employees to make claims against third parties.
Division 21 of Part 4 amends the International Development Research Centre Act to reduce the maximum number of governors of the Centre to 14, and to consequently change other rules about the number of governors.
Division 22 of Part 4 amends Part I of the Canada Labour Code to require the parties to a collective agreement to file a copy of it with the Minister of Labour, subject to the regulations, as a condition for it to come into force. It amends Part III of that Act to require employers that provide benefits to their employees under long-term disability plans to insure those plans, subject to certain exceptions. The Division also amends that Part to create an offence and to increase maximum fines for offences under that Part.
Division 23 of Part 4 repeals the Fair Wages and Hours of Labour Act.
Division 24 of Part 4 amends the Old Age Security Act to provide the Minister of Human Resources and Skills Development with the authority to waive the requirement for an application for Old Age Security benefits for many eligible seniors, to gradually increase the age of eligibility for the Old Age Security Pension, the Guaranteed Income Supplement, the Allowance and the Allowance for the Survivor and to allow individuals to voluntarily defer their Old Age Security Pension up to five years past the age of eligibility, in exchange for a higher, actuarially adjusted, pension.
Division 25 of Part 4 dissolves the Public Appointments Commission and its secretariat.
Division 26 of Part 4 amends the Seeds Act to give the President of the Canadian Food Inspection Agency the power to issue licences to persons authorizing them to perform activities related to controlling or assuring the quality of seeds or seed crops.
Division 27 of Part 4 amends the Statutory Instruments Act to remove the distribution requirements for the Canada Gazette.
Division 28 of Part 4 amends the Investment Canada Act in order to authorize the Minister of Industry to communicate or disclose certain information relating to investments and to accept security in order to promote compliance with undertakings.
Division 29 of Part 4 amends the Customs Act to allow the Minister of Public Safety and Emergency Preparedness to designate a portion of a roadway or other access way that leads to a customs office and that is used by persons arriving in Canada and by persons travelling within Canada as a mixed-traffic corridor. All persons who are travelling in a mixed-traffic corridor must present themselves to a border services officer and state whether they are arriving from a location outside or within Canada.
Division 30 of Part 4 gives retroactive effect to subsections 39(2) and (3) of the Pension Benefits Standards Act, 1985.
Division 31 of Part 4 amends the Railway Safety Act to limit the apportionment of costs to a road authority when a grant has been made under section 12 of that Act.
Division 32 of Part 4 amends the Canadian International Trade Tribunal Act to replace the two Vice-chairperson positions with two permanent member positions.
Division 33 of Part 4 repeals the International Centre for Human Rights and Democratic Development Act and authorizes the closing out of the affairs of the Centre established by that Act.
Division 34 of Part 4 amends the Health of Animals Act to allow the Minister of Agriculture and Agri-Food to declare certain areas to be control zones in respect of a disease or toxic substance. The enactment also grants the Minister certain powers, including the power to make regulations prohibiting the movement of persons, animals or things in the control zones for the purpose of eliminating a disease or toxic substance or controlling its spread and the power to impose conditions on the movement of animals or things in those zones.
Division 35 of Part 4 amends the Canada School of Public Service Act to abolish the Board of Governors of the Canada School of Public Service and to place certain responsibilities on the Minister designated for the purposes of the Act and on the President of the School.
Division 36 of Part 4 amends the Bank Act by adding a preamble to it.
Division 37 of Part 4 amends the Corrections and Conditional Release Act to eliminate the requirement of a hearing for certain reviews.
Division 38 of Part 4 amends the Coasting Trade Act to add seismic activities to the list of exceptions to the prohibition against foreign ships and non-duty paid ships engaging in the coasting trade.
Division 39 of Part 4 amends the Status of the Artist Act to dissolve the Canadian Artists and Producers Professional Relations Tribunal and transfer its powers and duties to the Canada Industrial Relations Board.
Division 40 of Part 4 amends the National Round Table on the Environment and the Economy Act to give the Round Table the power to sell or otherwise dispose of its assets and satisfy its debts and liabilities and to give the Minister of the Environment the power to direct the Round Table in respect of the exercise of some of its powers. The Division provides for the repeal of the Act and makes consequential amendments to other acts.
Division 41 of Part 4 amends the Telecommunications Act to change the rules relating to foreign ownership of Canadian carriers eligible to operate as telecommunications common carriers and to permit the recovery of costs associated with the administration and enforcement of the national do not call list.
Division 42 of Part 4 amends the Employment Equity Act to remove the requirements that are specific to the Federal Contractors Program for Employment Equity.
Division 43 of Part 4 amends the Employment Insurance Act to permit a person’s benefits to be determined by reference to their highest earnings in a given number of weeks, to permit regulations to be made respecting what constitutes suitable employment, to remove the requirement that a consent to deduction be in writing, to provide a limitation period within which certain repayments of overpayments need to be deducted and paid and to clarify the provisions respecting the refund of premiums to self-employed persons. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including requiring that the rate be set on a seven-year break-even basis once the Employment Insurance Operating Account returns to balance. The Division makes consequential amendments to the Canada Employment Insurance Financing Board Act.
Division 44 of Part 4 amends the Customs Tariff to make certain imported fuels duty-free and to increase the travellers’ exemption thresholds.
Division 45 of Part 4 amends the Canada Marine Act to require provisions of a port authority’s letters patent relating to limits on the authority’s power to borrow money to be recommended by the Minister of Transport and the Minister of Finance before they are approved by the Governor in Council.
Division 46 of Part 4 amends the First Nations Land Management Act to implement changes made to the Framework Agreement on First Nation Land Management, including changes relating to the description of land that is to be subject to a land code, and to provide for the coming into force of land codes and the development by First Nations of environmental protection regimes.
Division 47 of Part 4 amends the Canada Travelling Exhibitions Indemnification Act to increase the maximum indemnity in respect of individual travelling exhibitions, as well as the maximum indemnity in respect of all travelling exhibitions.
Division 48 of Part 4 amends the Canadian Air Transport Security Authority Act to provide that the chief executive officer of the Authority is appointed by the Governor in Council and that an employee may not replace the chief executive officer for more than 90 days without the Governor in Council’s approval.
Division 49 of Part 4 amends the First Nations Fiscal and Statistical Management Act to repeal provisions related to the First Nations Statistical Institute and amends that Act and other Acts to remove any reference to that Institute. It authorizes the Minister of Indian Affairs and Northern Development to close out the Institute’s affairs.
Division 50 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to provide for the payment or reimbursement of fees for career transition services for veterans or their survivors.
Division 51 of Part 4 amends the Department of Human Resources and Skills Development Act to add powers, duties and functions that are substantially the same as those conferred by the Department of Social Development Act. It repeals the Department of Social Development Act and, in doing so, eliminates the National Council of Welfare.
Division 52 of Part 4 amends the Wage Earner Protection Program Act in order to correct the English version of the definition “eligible wages”.
Division 53 of Part 4 repeals the Kyoto Protocol Implementation Act.
Division 54 of Part 4 amends the Immigration and Refugee Protection Act and the Budget Implementation Act, 2008 to provide for the termination of certain applications for permanent residence that were made before February 27, 2008. This Division also amends the Immigration and Refugee Protection Act to, among other things, authorize the Minister of Citizenship and Immigration to give instructions establishing and governing classes of permanent residents as part of the economic class and to provide that the User Fees Act does not apply in respect of fees set by those instructions. Furthermore, this Division amends the Immigration and Refugee Protection Act to allow for the retrospective application of certain regulations and certain instructions given by the Minister, if those regulations and instructions so provide, and to authorize regulations to be made respecting requirements imposed on employers in relation to authorizations to work in Canada.
Division 55 of Part 4 enacts the Shared Services Canada Act to establish Shared Services Canada to provide certain administrative services specified by the Governor in Council. The Act provides for the Governor in Council to designate a minister to preside over Shared Services Canada.
Division 56 of Part 4 amends the Assisted Human Reproduction Act to respond to the Supreme Court of Canada decision in Reference re Assisted Human Reproduction Act that was rendered in 2010, including by repealing the provisions that were found to be unconstitutional and abolishing the Assisted Human Reproduction Agency of Canada.

Jobs, Growth and Long-term Prosperity Act

[The Acting Speaker, Conservative, Barry Devolin]

Order. The hon. parliamentary secretary.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Mr. Speaker, the NDP's economic policy is not a matter of theory anymore. It is not a matter of promises. It is a matter of real-time existing case studies. NDP governments exist more or less in Greece, Portugal and across Europe. Nine euro currency countries follow NDP policies and they have now been downgraded. Greece and Portugal have now junk status government debt. Their government debts are 1.5 times the size of the entire economy. That is the result of NDP tax-and-spend policies.

The only criticism that the leader of the NDP has had for the eurozone debtor nations is that he believes they are not spending and borrowing enough. He said that a week ago today. We on this side of the House of Commons reject that failed model. We support the Canadian way, a low-cost government, a free people, a shared destiny and a brighter future.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I would like to address the point raised by my hon. colleague about the fact that people are living longer, especially since OAS was first established.

The health-adjusted lifespan of the lowest 10% of income earners has not increased. That means that when they get to about 60 or 65 years of age, life will be very difficult for them because of health issues. If the government really wanted to trim the cost of OAS, why did it not protect this most vulnerable part of our society, the lowest income earners, the lowest decile of income earners, who really need OAS and GIS?

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

We are protecting old age security, Mr. Speaker, by making it affordable for the long run. That is especially important to people most in need.

We do not protect pensioners and seniors by raising taxes on the companies that pay benefits into the pension funds, RRSPs and tax-free savings accounts that Canadians rely on for their retirements. As a result, we recognize the need for a low tax plan that would create jobs, wealth and long-term prosperity so that companies across this country can pay for the retirements of the people who need it most.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, on March 29, the Minister of Finance tabled budget 2012 in Parliament. This budget includes reckless cuts to services that Canadians depend on, such as old age security, health care, provincial transfers and environmental assessments.

The Conservatives claim that their budget focuses on job creation. However, they themselves admit that their budget will result in the loss of 19,200 public sector jobs. The fact is that it will raise the unemployment rate. The Parliamentary Budget Officer estimates that this budget will actually result in the loss of 43,000 jobs in Canada. That, combined with this government's previous cuts, brings the total number of jobs lost to 102,000.

Bill C-38 is the 2012 budget implementation bill, but it is about much more than just the budget. This massive 421-page bill includes not only the measures described in the budget, but also many changes that were not previously announced.

This bill is not like other bills. It is over 400 pages long. This bill will have a major impact on Canadians. At least one-third of Bill C-38 is dedicated to weakening environmental protection and rules.

Furthermore, this bill introduces a series of measures that were not previously announced and that will result in reduced transparency and greater secrecy around the government. These measures include decreasing the Auditor General's powers.

Today I wish to draw your attention to one aspect that I find extremely worrisome. It has to do with the Canadian Food Inspection Agency. It is clear that several parts of the agency are about to be privatized. These cuts to food inspection represent a step backward. We know that the listeriosis crisis in 2008 came about because of a lack of inspectors. Would hon. members not agree that the government should take the safety of Canadians seriously and that it should be transparent when communicating with Canadians?

The Canadian Food Inspection Agency is one of a number of agencies that will be excluded from the Auditor General's supervision. Bill C-38 eliminates all references to the Auditor General in the Canadian Food Inspection Agency Act. For instance, the section of the act that was previously called “accounting and audit” will henceforth be called simply “audit”. Mandatory financial and performance audits by the Auditor General have also been eliminated.

Another important and troubling fact is that Bill C-38 eliminates mandatory financial audits by the Auditor General for 12 agencies.

Bill C-38 also amends the Seeds Act to give the president of the CFIA the power to issue licences to persons authorizing them to perform activities related to controlling or assuring the quality of seeds or seed crops. This amendment opens the door to having private companies do food inspection related work. This also sends worrisome signals about the growing likelihood of privatization of some parts of the Canadian Food Inspection Agency.

This bill will also significantly change how the Canadian Food Inspection Agency monitors and enforces non-health and safety food labelling regulations. In other words, when a company states that its products do not contain any traces of peanuts, for example, the consumer will have no way of knowing whether that is true or not. This government believes that it is up to the consumer to judge the trustworthiness of labels. Parents with children who have peanut allergies will not know whether they can trust what the company is saying.

If they have any doubts, they will have to go online and address their concerns to the companies and associations involved.

In essence, the government is suggesting that we wait and see whether anyone has an allergic reaction. If so, then the consumer will have to go to the company's website to tell the company that it lied. The government is not getting involved.

The government is completely withdrawing from the process and is making individuals responsible for food labelling regulations. That makes no sense. Companies will say whatever they want, in order to sell their products to as many people as possible.

These changes scare me and I know I am not the only one who is scared. A woman in my riding wrote to me to tell me how much these changes would affect her family, as her son has a nut allergy. She is very worried about him and rightfully so.

I would also like to go over some of the comments made last week by my Conservative colleague, the Parliamentary Secretary to the Minister of Agriculture, when talking about budget 2012.

He asked the opposition to at least vote for increased investments in food safety.

I would now like to explain why I am voting against them. First, the government is not giving us the opportunity to vote for individual measures because it has decided to put together a gigantic budget bill that encompasses radical changes, such as the increase in the eligibility age for old age security benefits.

So no, I will not be voting against more investments in food safety; rather, I will be voting against an enormous bill that seeks to change environmental laws, the immigration system and employment insurance, among other things.

Second, what my colleague has not mentioned are the $56.1 million in cuts to the Canadian Food Inspection Agency. Let us do the math. If we add $51 million to a program and then take away $56 million, what do we have left over? A negative figure, or cuts. It leaves us with a weaker inspection program.

That is why I will be voting against the budget implementation bill.

Canadians need transparency. It is not by sneakily passing measures that will have a major impact on Canadians that the government will earn the trust of the people.

Introducing such a wide-ranging bill and allowing so little time to debate it undermines what Parliament is here to do, because members will not have the opportunity to get all the information they need about the bill's content and impact.

It is sad that the government is continuing to ignore what really matters to Canadians: environmental protection, old age security, health care and job creation.

How can we properly do our job as elected representatives of the people when the government is not giving us the time we need to get all the information we need?

The Parliamentary Budget Officer has said repeatedly that MPs are not getting the information they need for proper oversight. He also released a report clearly showing that the old age security program is completely sustainable as it stands now. In fact, the Parliamentary Budget Officer has even said that the program would be sustainable if benefits were increased.

Why is the government continuing to make Canadians pay? Why is it ignoring the various reports that clearly prove certain facts? Why is it so determined to fast-track a bill that includes so many cuts? Who will benefit from these measures?

Those are some of the questions I am asking myself as a mother and an MP. What sort of future do we want for future generations? For all these reasons, I will vote against Bill C-38.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member raises some valid points and I want to highlight and pose a question for the member in regard to what is encompassed in this legislation.

Normally we would talk to and have a good healthy debate and questions and answers strictly with regard to budget items. However, in this budget the government has made changes, some of which are exceptionally profound in terms of issues such as our environmental legislation. All of that has been bundled in through the back door of the budget debate. I would ultimately suggest that it should have been sectioned out. There are probably three years worth of legislation packed into the bill.

How does the member feel about the manner in which the government has limited debate on the huge legislative agenda behind the budget debate on which we are all expected to vote?

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, this is a huge bill. It is over 400 pages. It is full of information. As has been said before, the devil is in the details.

It would be a good idea if the government sent agriculture issues specifically to the agriculture committee and environmental issues to the environment committee. It is as if it is scared to have an open and informed debate on this because it knows that if it were divided, it probably would not pass. Canadians are not for this at all.

[Chris Alexander, Conservative, Parliamentary Secretary to the Minister of National Defence]

Mr. Speaker, I would like to thank the member for Berthier—Maskinongé for her speech. I have a very simple question for her.

The Parliamentary Budget Officer says that the program is affordable as is, but all of the other government authorities that we have access to, as well as all of the authorities in other OECD countries, not to mention most experts and informed observers in Canada, disagree, so who is she going to trust? The lone holdout, or all of the other experts in the field, including government experts who unanimously say that the system must be reformed in order to preserve it for future generations?

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I thank the Parliamentary Secretary for his question.

We trust the Parliamentary Budget Officer. He says that the system is fully sustainable. This situation is not unexpected. Forty years ago, we knew that the baby boomers would be turning into seniors around this time. So we are ready, and the system is fully sustainable. We trust him.

[Andrew Cash, NDP, Davenport, ON]

Mr. Speaker, my hon. colleague brought up a couple of really important points. One was as a parent thinking about the future and the increasingly large gap between the opportunities for young people and those for middle-aged and older workers.

Does the member have concern, and has she heard this concern from other parents in her riding, around the issue of generational inequity and the fact that the budget and the government seems to have no interest in rectifying this huge gap?

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, as a mother, I want to look to the future and hope that it is brighter for our children. It seems the future will be a bit more dim for our kids under the Conservative government.

We hope that with amendments and maybe by sending correct parts of the bill to the right committees we might change things and could then look toward a more positive future, but that is very hard to do with the government.

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, I am privileged and honoured to speak to the budget implementation bill to do with the budget presented by our government. It is ironic that following a federal election in May and then a provincial election in Manitoba shortly thereafter, we have two governments basically on the same track in the sense of process, but on exactly opposite ends with regard to what people want and expect from their governments. I plan to draw some of those comparisons to the recently released budget in the province of Manitoba and the budget that the Government of Canada has put forward.

In budget 2012 we talk about a road map to the future. In the last election, we made commitments to the people of Canada that we would keep taxes where they were or reduce them. We would create no new taxes and balance the budget in a period of time so we could move forward with some of the other needs and requirements of the people of Canada. Manitoba, on the other hand, made very similar promises in the last campaign. It would not raise taxes or establish new taxes and it, too, would move toward a balance budget.

However, when we look at the actual details of the two budgets, we see a completely different story. It is important that Canadians see for themselves what can happen when a government is run by Conservatives, who listen to the people of Canada, consult with them and make a plan that meets their needs, as opposed to a government in Manitoba that completely ignores the people of the province and continues to bear huge tax burdens on them and their children well into the future.

Our budget was about jobs, growth and long-term prosperity for Canada. We have done many things in the past several years in previous budgets. It is only right that I take a look back at what we have accomplished, make comparisons and see where we will go in the future.

The federal government is proposing no new taxes and a reduction in taxes in certain areas. We have extended the accelerated capital cost allowance for manufacturing and processing equipment, encouraging purchases. With a strong dollar, the manufacturing side is looking to renew a lot of its equipment and would do so with a capital cost allowance that would allow companies not only to write it off faster but would also allow them to update their equipment to make them more efficient, more effective and environmentally friendly. We have also increased the small business limit to $500 and reduced the small business tax rate to 11%, all things Canadians told us they wanted and required to move forward, and we have delivered on them.

We have also lowered the federal corporate income tax rate to 15%, making us one of the most, if not the most, competitive jurisdiction of the G8 countries. That speaks well to the investment that is going to flow into Canada. It has already started and will continue to flow because people with money to invest look at countries that are safe, reliable and predictable in their plans going forward. We have had a consistent track record since 2006 of reducing taxes, creating new jobs and wealth for Canadians and opportunity for investment.

We have also increased the lifetime capital gains exemption to $750,000. Why is that important? We have had many discussions here on other issues, but, as we know, over time costs go up and returns have to go up to match them. Allowing businesses to take the $750,000 tax exemption creates better opportunities for the future.

As I said, I want to draw some comparisons, and I will do that now.

The NDP government in Manitoba is planning to overspend this year's budget by $500 million. That is $500 million more in spending than the core revenue it is bringing in. This is what an NDP government does to the country. It has foisted taxes and new charges on the people of Manitoba to the tune of $184 million. In a time of restraint when countries are collapsing under the burden of financial difficulties, we have a province that continues to tax its people to the nth degree. I suggest the people of Manitoba were fooled when they were told by their current government that there would be no new taxes foisted upon them.

The Manitoba government has expanded the provincial sales tax to include more services and insurance premiums, adding $95 million more tax burden on the working people of Manitoba. Not finally but one of a few measures, it has increased gas taxes by 2.5 cents per litre, taking another $44.5 million out of Manitobans' pockets.

I often think back to when we moved to the metric system. We all knew what the price of a gallon of gas was. When 2.5 cents is added to a litre it does not seem like much but it is over 10 cents a gallon for anybody who remembers what a gallon was worth. To add that to the people of Manitoba in one fell swoop, without any discussion, after promising it would not do it, shows what we get with a government that is not committed to making the hard decisions to move a country forward, to move a province forward.

In a short time in office, our government has cut taxes 140 times. That speaks to an investment community that knows it has a government that is on a path of lowering taxes, creating wealth, creating opportunities and creating jobs.

We have created nearly 700,000 new jobs in the last little while, which is unbelievable in a world where the economies of so many countries are struggling just to see the light of day. We only need to look back to yesterday's news to see how important that is in certain countries in the world.

Our government, with its low tax policies, has removed one million low-income families, individuals and seniors from the tax rolls. Why is that important? The opposition tells us that people are in a situation where they are unable to pay their taxes or are barely scraping by. Well, one million more of them have an opportunity to spend their money the way they choose as opposed to being taxed by the government and then having it given back to them in dribs and drabs as some are proposing.

What else have we done? We have increased the amount that Canadians can earn tax free, again a decision made by a government that wants people to become independent, to think for themselves and to make their own financial decisions, not have governments telling them where and when they should make payments. We do that by lowering taxes. It puts more money in their pockets and gives people the ability to make their own decisions that affect their life, their family life and their community life.

We provided income splitting for seniors, one of the greatest things that could have happened in the sense of allowing people to share incomes to lower their taxable rate. We lowered the GST from 7% to 5%. We introduced a children's fitness tax. We brought in the tax free savings account. I know many people of my generation were RRSP buyers. At the end of every year we would do that to reduce our taxable income. Now that money can actually be put into an account and taken out tax free as it grows in the future. If I were giving advice to anybody in Canada today, it would be to take a long, hard look at that tax free savings account as one of the many vehicles that we now have to prepare for our retirement plans, for the future and for our family's future. It is important for people to look at this.This is not a paid political announcement but people should check with their accountants to ensure they are getting all the benefits.

When we look at what we have done across the country, a typical Canadian family today is saving $3,100 in taxes. Imagine having that every year and being able to make a decision on how to spend it or what to do with it, whether to invest in our children's education or our retirement, or whether to buy that retirement home we have been looking for. All of those things are doable and possible when we have a government that is committed to low taxes.

I opened by making the comments that our plan is to keep taxes low, create new jobs and opportunity, create the environment for that to happen and, in doing so, we will create long-term prosperity for Canadians. It is what we told Canadians we would do in the last election and it is what we are doing today.

I urge all members to take a hard look at it and, instead of finding what they can vote against, they should look for the positives that they can vote for and support this budget.

[Alexandrine Latendresse, NDP, Louis-Saint-Laurent, QC]

Mr. Speaker, I thank my hon. colleague from Brandon—Souris for his speech.

Since he brought up the subject of Manitoba and lower taxes in his speech, I wonder if he could talk about the fact that, when the NDP came to power in Manitoba, the tax rate for small businesses was 8%. Since December 2010, as he probably knows, that tax rate has been zero. Small businesses no longer have to pay taxes. This is stimulating Manitoba's economy and it is great for Manitobans.

There are about 100,000 businesses and 97% of them are small businesses. This is an excellent measure. I really do not understand why he is trying to scare people by saying that the NDP might raise taxes, when really, if we look at the facts, Manitoba has an excellent government and very good economic measures.

I would like to hear his comments on that.

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, I was part of the provincial government in 1999 when the NDP won the majority and took over government. The NDP claimed that there was no money left in the till until it y found $1 billion. It spent that billion and continued to spend at a reckless amount. It is still spending above $500 million more in a province of 1.2 million people. That is what the NDP government is committed to spend and that is more than it will take in revenue this year. Plus, it continues to tax every living breathing individual and beyond now with the services it is now taxing people for.

It is simply an obvious case of numbers and the numbers do not add up for the Province of Manitoba. I do not want the NDP to ever be responsible for the numbers of Canada.

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

Mr. Speaker, I have been listening to a lot of talk about Manitoba. I am not sure if this is the right forum to get into arguing about the Government of Manitoba. One either wants to be an opposition member in Manitoba or a government member here. Therefore, I will stick to the budget that we are dealing with in this House as we talk about Bill C-38, and I have a very quick question.

A section in the legislation amends the Salaries Act to abolish the Public Appointments Commission that the Conservatives so excitedly brought in. I was wondering why they would do that.