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.

Technical Tax Amendments Act, 2012

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I wish to thank my hon. colleague from Saint-Lambert for her excellent comment. Indeed, if there had been a time frame, we might not have had to deal with a doorstop of some 1,000 pages. It is almost impossible for the Standing Committee on Finance to consider all the changes in a reasonable and careful manner.

All members of this House were elected to work carefully and thoroughly. It is very important that we be given the tools to do so. When omnibus bills with hundreds of pages are introduced, like Bill C-38 and Bill C-45, we are prevented from doing our job. Yet it is very important that this work be done carefully.

I wish to thank my hon. colleague for pointing out that work to prevent tax evasion has unfortunately not been done on the other side. This is just one small step. It is not a serious one. We have to work much harder and make choices in order to carry out a tax reform that reflects our priorities. Instead of making old age security at age 67 a priority we should be focused on increasing the guaranteed income supplement, and on the environment, in order to offer a better tomorrow for future generations.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-48, An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation.

First of all, I would like to say that I will be sharing my time with my colleague from Manicouagan.

As I mentioned earlier and as many of my colleagues in the House of Commons have said today, this bill is very big. The bill is huge, and with nearly 1,000 pages, it is the size of a very thick brick. It is a bill that dates from 2001 and to which no amendments of this scale have been made.

This bill is so big because previous governments had been dragging their feet, because they did not do their job and because they took too long to bring the bill to the table. Because they did not do their job properly, today we are faced with a huge bill, a bill that we might call an omnibus bill.

However, this bill does not compare to the horrible omnibus bills C-38 and C-45, which covered a range of different items such as the environment, the economy and old age security. Those were really bad bills. It was with good reason that they were called “Trojan horses”. Those omnibus bills were horrible, “monster” bills.

This omnibus bill is acceptable as it deals only with income tax legislation. However, the problem is that the bill is so huge that it is practically impossible to study it carefully within the timeframe we have been given. The Conservative government must be much more attentive and efficient in bringing forward their bills on a more regular basis, which would allow us to have time to study the amendments to these bills.

In this regard, Auditor General Sheila Fraser stated in the report she tabled in the fall of 2009:

No income tax technical bill has been passed since 2001. Although the government has said that an annual technical bill of routine housekeeping amendments to the Act is desirable, this has not happened. As a result, the Department of Finance Canada has a backlog of at least 400 technical amendments that have not been enacted, including 250 “comfort letters” dating back to 1998, recommending changes that have not been legislated.

This has been dragging on since 1998.

If proposed technical changes are not tabled regularly, the volume of amendments becomes difficult for taxpayers, tax practitioners, and parliamentarians to absorb when they are grouped into a large package.

As I mentioned, that is what happened. The Conservatives have wasted time since coming to power, and now we have a hefty, 1,000-page omnibus bill. Of course I am neither an expert or a tax practitioner. However, as parliamentarians, it is important that we study bills with as much rigour as possible and within a reasonable amount of time. Unfortunately, we will not have the opportunity to do so with this bill.

Another point I would like to address is tax avoidance. Bill C-48 is a first step towards fighting tax evasion. However, the Conservative government is talking out of both sides of its mouth. On the one hand, it is taking a small step to prevent tax avoidance; on the other hand, it is signing bilateral agreements with countries that flaunt basic tax rules and are even tax havens. This government is not taking this seriously.

A number of my NDP colleagues sit on the finance committee. They heard some very interesting things from Brigitte Alepin, a very well-known tax expert. She has written two books that are reference works for anyone interested in fighting tax evasion and tax havens.

The first book is called Ces riches qui ne paient pas d'impôt. I recommend that all members of the House read it, particularly the Conservatives, since the work on tax evasion in Bill C-48 was not done properly. This excellent book, which was published in 2003, describes all the pernicious ways people use on a regular basis to avoid paying taxes, whether it be by deferring their taxes for ever or by inventing a rather questionable foundation.There are bona fide foundations but others can be very questionable. Clearly, there are also all sorts of subsidies.

I am going to talk about various issues but these are the choices that have to be made with a bill such as Bill C-48. The environment is very important and, right now, the government is shamelessly providing billions of dollars in subsidies to the oil and gas industries. They are even providing coal subsidies. I am not talking about tax evasion here but about subsidies that make the tax roll unfair and inequitable.

Ms. Alepin describes the three basic principles that are very important to a sound taxation system: the system must be simple, effective and fair. That is very important. However, right now, the Conservatives do not have a simple, effective and fair tax system, far from it. I mentioned a few aspects. I would like to read a short summary of Ms. Alepin's latest book, La crise fiscale qui vient, which is very interesting. If my colleagues have not read this wonderful book, I recommend that they all do so, particularly my Conservative colleagues since they did not do their work on the fight against tax evasion properly. This is what the book summary says:

The author identifies the signs of the impending fiscal crisis, which has already begun in most western economies. She provides a simple and enlightening description of the new conditions that exacerbate this crisis: the increased number of charitable foundations [I spoke about this earlier], the development of electronic commerce, the increasing use of tax havens [I also spoke about this], the competition between states to attract large corporations, etc. Although current governments seem to have given up on dealing with this crisis [and the Conservative government is a good example], Brigitte Alepin shows that there are solutions to this problem. She also shows how tax measures can help to reduce greenhouse gas emissions, among other things.

That is why I referred just now to tax measures and environmental measures. My colleagues also said that we could promote tax measures to favour, say, renovations. We had the ecoENERGY Retrofit--Homes program for energy efficient houses. Such programs are very good from the tax point of view. They are straightforward and keep the economy moving. It is the same thing here. When we have a government that stands up and earnestly tries to prevent tax evasion, and wants to invest in good things that benefit our economy and our planet and are good for our children and for future generations, we can make fairer and more enlightened choices.

To sum up, Brigitte Alepin is truly a tax expert. She has written other books, like Ces riches qui ne paient pas d'impôt about rich people who pay no taxes. The summary I have just read you is taken from La crise fiscale qui vient, about the looming fiscal crisis. I advise everyone to read these books, and of course to invite Ms. Alepin once again before the Standing Committee on Finance, because she has a lot of useful things to say.

In closing, it is very important when embarking on such reforms to do so quickly, so that there is not too much work to be done, so that it is not impossible to do it, and above all, to make enlightened choices that will be the right ones for future generations.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I will indeed be very brief. I would first of all like to congratulate my colleague on her excellent speech.

I would like to ask her a question about some concerns already raised by the Auditor General with regard to the slow pace at which the government enacted technical changes.

As mentioned earlier, this bill is nearly 1,000 pages long. It is huge. It could be called an omnibus bill, even though it is very different from Bill C-38 and Bill C-45, which were terrible, horrible omnibus bills because they tackled a range of issues. This bill is quite technical.

What does the member think of the Auditor General’s advice that the government should move faster in order to avoid ending up with a bill so huge it is impossible to adequately address all the issues? The government should be more efficient.

Aboriginal Affairs

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, the NDP has proposed an emergency debate on the breakdown of first nations and Crown relationships as evidenced by the continuing peaceful protests across the country. In fact, today on Parliament Hill, Idle No More has gathered to continue to raise these issues.

In particular, concerns are being raised that omnibus bills, Bill C-38 and Bill C-45, which affect inherent aboriginal rights, were passed into law without the constitutionally required consultation and accommodation. Now the Mikisew Cree First Nation and the Frog Lake First Nation have filed a notice of application for a judicial review on the conduct of the responsible ministers in developing environmental policies and the proposed implementation of those policies through the omnibus statutes, Bill C-38 and Bill C-45.

This is the first time since nationwide rallies began on December 10 that the House has had the opportunity to consider this matter. In that time, the rallies have grown, both in size and in the number of their locations across the country. International attention has been brought to these matters, with support for the protests from six continents. The continued disregard for the concerns being expressed at the grassroots level puts at risk Canada's economic security and the constitutional rights of its citizens.

Therefore, the NDP is requesting this emergency debate and I thank the Speaker for his careful consideration.

[Jonathan Genest-Jourdain, NDP, Manicouagan, QC]

Mr. Speaker, the Conservatives and the Conservatives alone are responsible for the protests being organized by the Idle No More movement.

When the Conservatives imposed omnibus bills C-38 and C-45 without any consultation, they showed their arrogance towards all Canadians who support the aboriginal cause. The path to reconciliation begins with respecting the nation-to-nation relationship.

Will the Conservatives acknowledge what is happening outside or will they continue to pass legislation that does not respect treaties or the basic rights of aboriginal people?

Technical Tax Amendments Act, 2012

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, today we are discussing Bill C-48. As you can see, it is rather thick. It is more than 950 pages long.

As my colleague from Parkdale—High Park mentioned, we will support this bill because it eliminates a number of tax loopholes and resolves several problems. Decisions about these issues have been made over time by agencies such as the Canada Revenue Agency, so this bill is needed. However, as I have mentioned in other speeches, this bill will amend the Income Tax Act as well as other acts: the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and other related legislation. It will make an already complicated system even more complicated.

I will give some background on this bill. In October 2012, we received a notice of ways and means from the Minister of Finance, which was more than 950 pages long and consolidated almost all of the outstanding tax measures. These measures date back to 2002 and even earlier. More than 400 decisions have been made by different agencies, including the Canada Revenue Agency, which receives inquiries from businesses and tax advisors asking whether they can interpret a specific condition in the Income Tax Act in a particular way. The Agency then sees that this was not foreseen by the legislator and proposes an amendment.

Over time, the Canada Revenue Agency has collected its interpretations of more than 400 issues. Now, over 10 years after the last tax bill was passed, we are discussing another bill.

Obviously, the department drafted this bill after consulting the private sector. The Standing Committee on Finance, on which I sit, has heard from private sector representatives. They spoke about several tax issues, including the technical issues we are discussing, as well as the complexity of the current legislation. I will get back to this a little later in my speech.

The impressive Bill C-48 has been before us since November 21, 2012. I doubt that more than a dozen of the 308 members of Parliament will read the whole thing before they have to vote on it. This is understandable, because these are of course extremely technical issues. It really is a shame, though, because it undermines our role as MPs, as representatives of our constituents. We cannot realistically vote with a full knowledge of all the elements in the bill. They just throw this at us in Parliament, at first reading. Yes, we will discuss it at Standing Committee on Finance meetings. It will eventually be passed at second and at third reading. However, for a matter as important as taxation, the Conservatives are being pretty casual by tabling this bill in the House of Commons and asking us to pass all of its recommendations, which will probably not be studied very carefully by the House. It is not that we are unwilling to do study the bill, but it will be really difficult to understand the scope of the measures being put forward because they are so complex and so highly technical. The Standing Committee on Finance will do the best it can, but still, the way the bill was introduced is a real concern.

Bill C-48 is an omnibus bill. We agree on this. However, unlike Bill C-38 and Bill C-45, otherwise known as mammoth bills or monster bills, this is a real omnibus bill. Bill C-38 and Bill C-45 contained a patchwork of measures and legislation. In those two bills, which are now law, more than 130 items were added, deleted or amended in two votes. Bill C-48 has a single basic principle that aims at amending the tax system consistently and making it fairer.

I would just like to quickly go back to the definition of an omnibus bill to confirm what I am saying. According to the Library of Parliament, an omnibus bill per se is a bill that, while it aims at creating or amending several different acts, has “one basic principle or purpose which ties together all the proposed enactments and thereby renders the Bill intelligible for parliamentary purposes”.

Bill C-48 is an omnibus bill. Bill C-38 and Bill C-45 were not really omnibus bills.

As I mentioned earlier, this bill is nearly 1,000 pages long. It updates the rules relating to many different tax measures that are still outstanding and brings them into harmony with the current system.

Regarding the tax changes, the implementation of the measures in this bill is unique. We have a majority government, and the rules in the bill will be adopted. As my colleague, the official opposition's finance critic, said in her speech, we are going to support this bill at second reading. In fact, the rules are practically in effect already, according to the International Financial Reporting Standards, as they have been ever since first reading when the bill was tabled on November 21, 2012.

They are also valid and in force according to the Canadian accounting standards for private businesses. Since November 21, our businesses have had a little more security and stability under Canadian and international standards, something that will be welcomed by these firms. The Standing Committee on Finance has heard this on a number of occasions.

For a number of years, in fact, there has been an effort to achieve some harmonization of accounting standards and tax rules at the international level. This is another set of issues that the government should at least look into. The reason is very simple: we see it as a way of facilitating the containment of tax evasion. Thanks to my colleague from Brossard—La Prairie, this is something that the Standing Committee on Finance will be addressing.

We are also facilitating trade and investment in a world that is increasingly integrated in economic terms, but in which standards still differ from country to country. Tax evasion is a major problem. It exists because of loopholes in the Income Tax Act and other tax legislation, including legislation on corporations.

With consistent rules and cohesive tax regulations, we can help companies to be much more competitive and to know what to expect. Regulatory predictability is a key factor in minimizing the risks our industries face. The OECD, in particular, has demonstrated leadership in arranging the coordination of rules internationally.

In Canada, it is the Accounting Standards Board that has handled the incorporation of international rules into the Canadian legal system and Canadian standards. According to the Canada Revenue Agency, the rules in this bill are currently in force for publicly accountable enterprises.

With the tabling of this bill today, we have an opportunity to discuss issues relating to Canada’s tax structure, given that action is already being taken by the various accounting bodies. Needless to say, most of the changes in Bill C-48 are in fact not only familiar to the main parties concerned, but more importantly, are already being applied in their operations. Hence, there should be no great surprises in the debate, or in the eventual passage of this bill.

There are no special innovations in Bill C-48, apart from two minor technical amendments that are included in the bill.

As I noted in my earlier questions to the parliamentary secretary and our official opposition finance critic, the Income Tax Act currently runs to 3,000 pages. The original act passed in 1917 had 10 or so pages. Now, it has 3,000. A bill like this one will add many more, in order once again to eliminate specific tax loopholes.

As the system grows in complexity, however, there are more and more opportunities to find loopholes in the legislation that companies and individuals, who in many cases have the resources to work with tax consultants, can use to try to introduce personal arrangements that will ultimately reduce the fairness of our tax system.

A well-known Quebec tax specialist, Brigitte Alepin, who testified last year before the Standing Committee on Finance, has written a book explaining that Canada’s tax system is headed for a brick wall and that the government should do something before it is too late. In her book, she explains that in order to be sustainable, taxation systems should generally follow three major principles: they should be simple, effective and equitable.

The Canadian system, unfortunately, is trying to distance itself to a dangerous degree from those principles, hence the urgency of reviewing the foundation on which it is built.

In her book, Ms. Alepin also points out that an ideal tax system should be cost-neutral; in other words, it should not be too expensive to administer.

She refers to a study conducted by the Fraser Institute, which I do not often quote here in the House. It is worth mentioning here today, however. The 2007 study evaluated the cost of administering the Canadian tax system.

In 2007, the Fraser Institute estimated the cost of the system to be between $19 billion and $31 billion, that is, about $950 per Canadian. Thus, the cost of administering the system is incredible. It is a huge and complex system, but we should not have to pay nearly $1,000 a year for every Canadian in order to administer it.

We need to debate the complexity of the tax system. Indeed, Bill C-48 allows us to do just that. We need to have this debate because the issue of simplifying the system, much like the issue of simplifying the Canadian justice system, is important for every Canadian, including the people we represent here in the House.

I would remind the House that the Supreme Court of Canada stated that tax laws should be certain, predictable and fair so that taxpayers can order their affairs intelligently. It also described some consequences of complex tax laws, and these were reiterated in 2009 in the Auditor General's fall report. She stated:

Taxpayers’ ability to comply with tax legislation depends on their understanding of how the rules apply to their own circumstances. When the intent of the legislation is not clearly conveyed by the words, taxpayers may find it difficult to assess the income taxes they owe and this could foster tax avoidance. Uncertainty about how the law should be applied can also add to the time taken and costs incurred by tax audits and tax administration.

This issue is so fundamental and so important that it was one of the central topics of all the recent prebudget consultations that the finance committee was pleased to have the opportunity to hold regarding previous budgets. During the consultations, several witnesses talked about the problems and difficulties that Canada will encounter if we do not begin to recognize the situation we are in and do something about it.

One of the people I would like to quote is Denis Saint-Pierre, chair of the Tax and Fiscal Policy Advisory Group of the Certified General Accountants Association of Canada. The Government of Canada quoted this organization to support what it was saying about the benefits of Bill C-38, but the organization said something else that the government failed to mention. Mr. Saint-Pierre said that, when the Standing Committee on Finance invited Canadians to share their priorities for the 2013 federal budget, the committee asked him five questions to which he could provide only one answer again this year and that is that the simplification of the tax system is vital. He said:

Canada's tax system is unduly complex. Entrepreneurs will tell you that. My clients tell me that. There is a growing consensus that the complexity of Canada's tax system must be addressed if Canada is to remain competitive, able to attract business and investment, and create jobs and economic growth.

For example, the Canadian Chamber of Commerce identifies Canada' s complex tax system as one of the top 10 barriers to competitiveness. Tax simplification is the number one public policy priority for CGA-Canada.

Robin Bobocel, vice-president of public affairs for the Edmonton Chamber of Commerce, said exactly the same thing:

One of the significant costs that business bears with such a complex tax code is compliance with it. There's a significant cost borne on simply filing tax returns and trying to ensure that you're taking full advantage of the tax code as it sits.

This was mentioned in the study conducted by the Fraser Institute. Quite frankly, Canada's global competitiveness will suffer the consequences if we do not conduct a comprehensive review of the tax code.

Here is one last quote from someone who testified before the Standing Committee on Finance on the very important issue of the complexity of the tax system. Michael Conway, chief executive and national president of Financial Executives International Canada, had this to say before the committee:

We again recommend that the Minister of Finance establish a task force to undertake a comprehensive review of the federal Income Tax Act, with the objective of reducing complexities, because—to be clear—compliance has become unmanageable, and the costs are killing everyone.

That act is too cumbersome for the government to administer and it creates an excessive burden on business, especially small business, which is one of the engines that drive our economy.

In its final report on the pre-budget consultations, the committee unanimously recommended that the federal government undertake a comprehensive review of the tax system and ensure its fairness as well as neutrality by continuing to close tax loopholes that allow select taxpayers to avoid paying their fair share of tax.

The tax system's complex and cumbersome nature, in addition to being costly for the taxpayers, undermines the concept of fairness that would allow taxpayers to see it as legitimate.

The Standing Committee on Finance has already done some work on this. For some people the tax system is an exciting issue, while for others it seems more technical. It affects one of the essential elements for Canadians, that is, to contribute fairly to this society and this country in which we live.

Since 2011, when we became the official opposition, and even since the current government took office in 2006, the government has shrugged off all taxation issues in a most disingenuous way. During debates, the government regularly mentions the phantom carbon tax the NDP wants to impose, although there is no such thing. Moreover, in all their speeches, the Conservatives say that the NDP wants to tax and spend, which is also not the case.

If we look at the records of all the NDP governments in the country—provincial ones, since we have not governed the whole country—we find that NDP governments have achieved more balanced budgets than the other parties that have governed the provinces, territories and the country since 1987, or even 1982, if we want to go back that far.

Now we need to debate tax policy like grown-ups. The NDP is ready to do that and the other opposition parties are probably ready as well. We must stop treating the taxation system as a purely political issue and listen to the voters who are stuck in a system so complex that they cannot tell the true facts from the illusions the government has created.

When people talk about the complexity of the taxation system, the tax brackets are not the problem. The tax brackets are very simple for the individuals or businesses filing their tax returns.

We must consider three key elements, two of which are easy to analyze.

First, there are loopholes. Bill C-48 is supposed to deal with this problem. We certainly hope that some of these loopholes can be eliminated.

Then there are tax expenditures, and especially boutique tax credits, that is, a choose-your-own list of tax credits for various parts of Canadian society. They include tax credits to assist volunteer firefighters and those for families that want their children to have more training in the arts or sports activities. These are non-refundable tax credits. The people who use them are paying taxes. Thus, the people who need them most are not able to use these tax credits.

Finally, there is a lack of concerted effort and coordination internationally. This has to be addressed at the most basic level. It is necessary for Parliament as a whole and every member of Parliament to participate in seeking more fairness and exploring ways our tax system can adapt to the new reality, because the Income Tax Act has been around since 1917, and making sure than Canada remains competitive.

Adding the complexity of Bill C-48 to the already complex Income Tax Act is not the way to resolve this fundamental issue that will soon have to be addressed.

We will support Bill C-48 at second reading.

We hope to have a good debate on it in the Standing Committee on Finance. I will be pleased to take questions from the hon. members.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, I want to take this opportunity to welcome all my colleagues back to the House. I trust they had an enjoyable break over the holiday period, and that they are all energized and looking forward to getting back to what I am sure will be a very busy winter and spring session.

Today I am pleased to rise on Bill C-48. The bill implements over a decade of highly technical changes to Canada's tax code.

The way I feel about it is that one of the most if not the most important work for us, as elected members of Parliament, is to make decisions about taxation and spending. It is about respecting how hard Canadians work to earn the money they get. We make decisions about taxing that money so we can provide for public services, public infrastructure and democratic machinery.

Most Canadians accept the principle of paying taxes as something that keeps a healthy society. However, they want us to have a very careful eye on their tax dollars and on how that money is spent. I think most Canadians want, and I fear they do not feel they get enough of, is transparency and integrity in our system of tax collection and spending and in our government. They want accountability. They want respect for every dollar they send here.

When we have a situation, for example, like the Parliamentary Budget Officer, who has to take the government to court to get information about how tax dollars are being spent or what cuts to services, which Canadians depend on, are being made, that decreases confidence in our system, in the accountability and transparency of government.

So too does the complicated nature of our tax legislation. Individuals who may not have English or French as their first language, or seniors or young people really struggle with the complicated nature of our tax legislation and certainly yearn for greater simplicity.

That brings me to this bill. Many of these changes seem like they make a lot of good sense. There are provisions in Bill C-48 to ensure that all of an airline corporation's taxable income will be attributed to the provinces and territories in which the corporation has a permanent establishment. There are provisions to discourage tax avoidance in the taxation of foreign affiliates of Canadian multinational corporations. There are anti-avoidance measures for specific leasing of property, limits on the use of foreign tax credit generators for international tax avoidance, as well as housekeeping changes to the Excise Tax Act such as repealing a provision that has not been in use since 1999.

We believe these changes in total will be revenue positive and that they generally move to discourage tax avoidance and therefore ensure the integrity of our existing tax law. Furthermore, the vast majority of these measures have already been in practice for several years, since it is standard practice for tax measures to take effect upon their proposal. Once they have been announced, people accept them as adopted. For these reasons the official opposition New Democrats will be supporting the bill.

Bill C-48 implements over a decade of highly technical changes to Canada's tax system.

In the end, we believe that these changes will be revenue positive. They generally move to discourage tax avoidance and ensure the integrity of the tax system.

The vast majority of these measures have been in place for several years, since it is standard practice for tax measures to take effect upon their proposal. For these reasons, the official opposition will be supporting this bill.

New Democrats believe in cracking down on tax avoidance and tax evasion, while ensuring the integrity of our tax system. That is why we have pushed, since the election in 2011, to have the finance committee complete its study of tax evasion. It looks like we will finally be doing that this year. However, that is why we support the changes being made in the bill, especially those that aim to reduce tax avoidance.

I do want to raise some concerns relating to the size of the bill, which comes to us at close to 1,000 pages.

First, the massive scale of the bill indicates that the government needs to be more responsible regarding its handling of the tax code. In particular, it must ensure that tax proposals are legislated on a regular basis. In fact, the last technical tax bill was passed in 2001. In her fall 2009 update, the former Auditor General, Sheila Fraser, raised concerns about the fact that there were at least 400 outstanding technical amendments to the tax code, which had not yet been put into legislation.

No technical income tax bill has been passed since 2001. Although the government has said that an annual technical bill of routine housekeeping amendments to the Act is desirable, this has not happened. As a result, the Department of Finance Canada has a backlog of at least 400 technical amendments that have not been enacted, including 250 “comfort letters” dating back to 1998, recommending changes that have not been legislated.

Over 200 of these outstanding changes are addressed in Bill C-48, but that still leaves hundreds of outstanding amendments.

I spoke recently in Calgary to a group of more than 1,000 tax practitioners, general accountants, certified general accountants and tax lawyers. They agreed that the comfort letter process works, but they wanted the clarity of having these laws fully in place. It would make their jobs so much easier and create greater clarity for Canadians. The Auditor General's 2009 fall report also expressed a need for these legislative changes so that the comfort letters identified could be enacted.

During this fall's pre-budget consultations, the Certified General Accountants Association of Canada told the finance committee:

—the government must introduce a technical tax amendments bill. The last time a technical tax bill was passed by Parliament was over 11 years ago. Literally hundreds of unlegislated tax amendments to the Income Tax Act...have been proposed, but not yet enacted, which brings uncertainty and unpredictability to the process.

These are the experts speaking, the tax practitioners who deal with this work every day of the week. The quote continues:

—we strongly feel that implementing a sunset provision would ensure that tax amendments are legislated, which ultimately will eliminate the ever-growing backlog of unlegislated tax measures once and for all. With this provision, if a tax policy change is announced and not incorporated into legislation within a reasonable amount of time, the measure would lapse. This would bring greater clarity and certainty to tax legislation, reduce the compliance and paperwork burden, and, perhaps most importantly, prevent any future legislative backlogs.

What they are asking for is a sunset clause so that if government announces tax changes in one year, by the end of that year, it would bring those changes into law. It makes perfect sense. We should not be waiting 11 years to get clarity on tax changes the government has already made. We strongly support this recommendation from the CGA.

The Income Tax Act is a living document, perhaps more so than any other piece of legislation. Feedback from the lived experience of taxpayers and tax practitioners can help us make amendments in order to ensure the integrity of our tax system. The responsible management of the tax code means that these changes must be made on an ongoing basis. Failing to do so can lead to uncertainty for business and for tax practitioners.

One thing I have heard, while going across this country and talking to businesses from the east to the west coast and in many places in between, is that they find the government takes too much action on an ad hoc basis for political reasons and does not create enough certainty by laying out a plan and following that plan.

Anything we can do to create greater certainty for business leads to a better investment climate. It helps businesses make decisions about investing in machinery and equipment and creating more jobs, because they have greater certainty of what the future will look like. Clear tax legislation helps do that. Failing to do so leads to uncertainty. That is why we need the government to act so we do not have decisions being made on an ad hoc basis. People and business want predictability and reliability in our tax system. Without these basic building blocks of predictability and reliability, businesses cannot do effective fiscal planning.

Canadian families need the same certainty. These ad hoc, boutique tax credits, which undermine our tax base and take revenue out of our tax system, are also unpredictable for Canadian families. Their introduction on an ad hoc basis means that it is difficult for families to plan ahead for their tax obligations.

As the former Auditor General noted:

If proposed technical changes are not tabled regularly, the volume of amendments becomes difficult for taxpayers, tax practitioners, and parliamentarians to absorb when they are grouped into a large package.

Amen. That is what we have today, a bill of about 1,000 pages. Bringing more than a decade of tax changes into one bill does not create a situation of the greatest transparency. Yet we need transparency and accountability for our tax legislation, which is something that touches all Canadians and all businesses. It has become a pattern in this Parliament to create these massive omnibus budget bills with hundreds of pages of legislation and very little time to examine them. Furthermore, only a fraction of MPs, similar to the Canadian public in general, are tax specialists.

With regard to Bill C-48, tax lawyer Thomas McDonnell said that we should also remember the huge so-called technical tax bill introduced last fall. The hard copy of the amendments and explanatory notes was over 900 pages. He believes that this bill will also be passed without an informed debate in the House of Commons, and most parliamentarians who vote on the bill will admit that they did not read it or really try to understand the impact of their vote no matter which way they vote. He added that this is not the way Parliament is supposed to carry out one of its main duties, which is to generate revenue. It is sad to say, but he believes that most parliamentarians do not understand this aspect of Parliament's role or they do not have the courage to stand up and defend this role.

While we do not support the government's serial use of omnibus legislation, we recognize that it makes a big difference that Bill C-48 makes technical changes to a smaller number of closely related laws. The vast majority of these measures have already been in practice for several years and have incorporated feedback from tax practitioners. This is a stark contrast to the Conservatives' Trojan Horse budget bills, Bill C-38 and Bill C-45, which made sweeping changes to everything from environmental protection and government accountability to immigration and EI, all without thorough consultation, debate or scrutiny.

That being said, the bill still poses a definite challenge for most parliamentarians, who will not have the opportunity to thoroughly study it and will not be able to study it at committee.

Transparency must be at the heart of our work as publicly elected representatives. We must do everything in our power to ensure that legislation receives full and informed debate in the House. I therefore urge my colleagues to ensure that the legislation receives thorough debate and consideration at all stages, but we also need to go further.

It is our responsibility as MPs to be continually examining how we can most effectively represent the interests of our constituents, including in the tax system. People lose confidence when they see the government's ineptitudes, such as the financing of the F-35 procurement program or individual expenses such as $16 orange juice.

However, in the tax system, when a dishonest few refuse to live up to their responsibilities not only do the rest of us pay more to make up for it, but those who do seek to live up to their responsibilities are put at a competitive disadvantage, and I am thinking of businesses here. This places enormous pressure on corporations and business owners. Too many businesses find themselves in a race to match the tax avoidance measures of their competitors. Yet public budgets provide so much of what Canadians value most. Basic government services are the foundation of our economy: infrastructure, police, education, our legal system.

In testimony to the Senate banking committee Marlene Legare, the former chief of the sales tax division in the Department of Finance's tax policy branch, explained:

Until now, the choice has probably been more in favour of combining measures so as to put forward fewer bills. I think the lesson that we learned from this experience is that it may be preferable to change the balance somewhat.

She is speaking of the omnibus bills. She continues:

That may mean putting forward smaller bills which would contain measures that would be enacted on a more timely basis.

That is, going forward, let us make the changes within a year after they are announced so that there is clarity for taxpayers and for tax practitioners, and so that we are fully recouping the tax dollars for changes that have been announced. It is inexcusable that it has taken so long for the sitting government to take action on these changes.

The official opposition stands firmly in support of focusing on compliance and creating clear tax structures in a timely manner to ensure the integrity of our tax system. That is why we are supporting Bill C-48. However, the massive size of the legislation demonstrates that there is still a huge amount of work to do in getting such technical changes legislated in a timely fashion. Failing to do so hurts taxpayers and tax practitioners and makes it difficult for a proper evaluation by Parliament.

The official opposition stands firmly in support of focusing on compliance in order to ensure the integrity of our tax system. That is why we are supporting Bill C-48.

However, the massive size of this legislation demonstrates that there is still a huge amount of work to do in getting such technical changes legislated in a timely fashion. Failure to do so would hurt taxpayers and tax practitioners and make it difficult for a proper evaluation by Parliament.

I therefore urge my colleagues on all sides of the House to work to ensure that the bill receives thorough examination and discussion in Parliament. We will continue to work to ensure the integrity of our tax system with a more effective process when it comes to technical tax legislation. We need to continually demonstrate our respect for the hard work of Canadians and the taxes they send to Ottawa, and to reward that with transparency and predictability. New Democrats, when we get the opportunity in 2015, will do just that.

Opposition Motion--Investment Canada Act

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I want to thank my colleague from Don Valley West for detailing the historical basics, which are vital to understanding the important actions taken in terms of the Investment Canada Act the other evening.

The changes the government introduced have not just been tinkering, as some might suggest. We have taken a targeted approach and that is, quite honestly, the responsible way for us to remain effective in the face of evolving foreign investment trends, not only in this country but in others around the world. We know that Canada is a bit of a target because of its strong economic position over the last number of years that got us through the economic downturn.

In 2007, our government introduced guidelines on investments by state-owned enterprises. In 2009, we introduced national security provisions into the ICA, as well as amendments to increase the threshold for net benefit reviews and to remove sector-specific restrictions on investments. In the most recent federal budget, we introduced targeted measures intended to improve transparency and enhance enforcement.

In 2006, we recognized that investments by foreign state-owned enterprises represented a unique challenge to Canada as these investment opportunities seem to be growing, as I mentioned earlier. There is a concern that state-owned enterprises may not be commercially oriented, which could affect their operations in Canada. Guidelines on state-owned enterprises first enunciated in 2007 place significant focus on whether the Canadian businesses being acquired could operate with commercial orientation. Since that time, Canada has seen a significant increase in investment by state-owned enterprises.

As we see Canadian businesses and opportunities growing, state-owned enterprises are taking a large interest and that interest is growing. Hence, the need for the guidelines that were brought forward the other night. The Prime Minister did that on Friday evening. The revised guidelines will be applied to proposed transactions.

I will highlight the guidelines that have been mentioned time and again, and in fact, today in the House of Commons during question period. The Minister of Industry will consider among other factors: the degree of control or influence a state-owned enterprise would likely exert on the Canadian business that is being acquired; the degree of control or influence that a state-owned enterprise would likely exert on the industry in which the Canadian business operates; and the extent to which the foreign government in question is likely to exercise control or influence over the state-owned enterprise acquiring the Canadian business.

The national security provisions have also been raised a number of times. In 2008, the Competition Policy Review Panel, led by Mr. Wilson, in its final report called “Compete to Win”, recommended that the government introduce national security provisions in the ICA. It is amazing, quite honestly, that it was not until 2008 that Canada had a consideration for national security provisions within its ICA. In 2009, that recognition was given.

Under the national security review provisions, the Minister of Industry, in consultation with the Minister of Public Safety, is required to review all transactions, regardless of value, for national security concerns. In cases of concern, if it does show up at varying degrees of severity, a more in-depth review is undertaken and the minister may present the matter to cabinet for consideration. Cabinet is given broad powers to protect Canada's national security interests under the act, which are similar to protections in peer countries.

As we all know, the Prime Minister announced plans to permit the extension of national security reviews in the exceptional cases where it is necessary to do so. This will ensure that the government has the time it needs to thoroughly examine the complex cases that come before it. There is no more solemn duty of the government than protecting Canada's national security. In adding a national security review process, this government brought Canada's investment review regime into line with the practices of countries around the world.

We have heard a lot in the discussions in the House about net benefit review and those thresholds. The government also accepted another recommendation of the Competition Policy Review Panel. The government has taken steps to increase the net benefit review threshold from the existing $330 million to $1 billion. The purpose here is both to limit the role of the government in the private sector and to permit a focus on only the most significant transactions.

Additionally, the government accepted the panel's recommendation to shift the basis for calculating the review threshold from asset value to enterprise value. The government followed this recommendation in recognition of the fact that the business world has changed. Intellectual property, such as patents and trademarks, are of growing importance to business. Yet intellectual property is undervalued when considered on the basis of asset value. Enterprise value does a better job of more accurately capturing the value of a going concern business, including its intellectual property.

Members will recall that the Prime Minister announced that the increase in the net benefit review threshold will go forward for private businesses. However, and this is important, the higher threshold will not apply to transactions proposed by state-owned enterprises. Investments by state-owned enterprises will still be subject to a net benefit review at the lower threshold of $330 million. This will ensure these transactions are closely monitored.

When we look at transparency and enforcement, the Investment Canada Act contains strong confidentiality protections, which are necessary to ensure that investors willingly provide the sort of information that is required to conduct net benefit reviews. Under the Jobs, Growth and Long-term Prosperity Act, the ICA was amended. These are changes that will address the concerns of the opposition. The changes permit the disclosure of more information about the review process while still preserving commercial confidences. Specifically, the minister may disclose the fact he has sent preliminary notice to an investor that he is not satisfied that the investment is likely to be of net benefit to Canada. He may also explain his reasons for sending the notice, so long as it would not prejudice the Canadian business or the investor. At the same time, the ICA was amended to assist the government in obtaining investor compliance with undertakings.

In conclusion, our government has demonstrated over and over again that it needs to act and has acted to ensure that Canada's investment regime protects Canada's interests and is relevant to the global economic reality, which is a moving target. The Prime Minister's announcement of changes to the foreign investment review framework on Friday night were welcomed, not only by our caucus but by people around the world.

Employment Insurance

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I thank the Parliamentary Secretary who will once again have the courage to reply to my intervention.

I rise again here today to further explore a question I asked in this House at the end of September. I had asked the Minister of Human Resources and Skills Development why her government had so much contempt for unemployed workers and why it was introducing a new calculation for the working while on claim pilot project.

Ever since the employment insurance reforms were introduced in Bill C-38, thousands of Canadians have joined together to condemn the negative impact of those changes on our economy. Furthermore, those changes have proven to be an attack on the unemployed.

The changes to the calculation of the working while on claim pilot project were particularly troubling. Before the reform, a worker who had lost his job and was working part time while looking for another full-time job could still receive benefits. The rule was that those benefits were cut by 40%, with a non-deductible limit of $75.

The government is now proposing to eliminate the base amount, but to allow workers to keep 50% of their employment income. During question period in September, the minister even gave an example where the EI recipient would receive more money under the new system than under the old one.

In the weeks that followed, the opposition demonstrated many times in this House, that the new calculation penalized most of the program beneficiaries, especially low-income workers.

The minister had to admit that there were problems with the pilot project, and she was forced to make changes that gave some workers eligible for the program the choice of using the old calculation method or the new one.

Could the minister be honest and responsible towards Canadians? Was this change to the pilot project designed to make low-income workers receive less money, or was it just incompetence?

What will happen to other aspects of the reform that are currently making the headlines? Changes to the appeal mechanisms are being criticized by everyone, and many are predicting that unemployed workers will have to wait even longer than they already are.

What explanation does the minister have for the fact that the number of hours worked to settle first and second level appeals will decrease from approximately 18,200 hours a year with 700 part-time officials to 9,000 hours a year with 39 part-time officials, and that they will be doing the same job?

It is obvious that these reforms are being made haphazardly. Canadians deserve better because they have contributed to the social safety net. Will the Conservatives show some respect for the unemployed, and will they step back from their reforms?

Jobs and Growth Act, 2012

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, I rise in the House today to, once again, express the official opposition's strong objection to Bill C-45, the second budget implementation bill that we have seen this year.

In the spring, Bill C-38 attacked old age security, forcing people to wait two more years to claim their benefits. It attacked employment insurance and health care transfers and turned back the clock on environmental regulation. Now, with Bill C-45, it shows the Conservatives have not learned their lesson. They did not listen to Canadians, who were outraged by that first Trojan horse budget bill.

Bill C-45 continues on the path set by this spring's budget bill, further weakening our ability to protect the environment and ensure sustainable development for future generations. It would completely gut the Navigable Waters Protection Act. We have heard about the loss of protection for 40,000 lakes and 2.5 million rivers. In addition, it would further erode the Canadian Environmental Assessment Act.

The disturbing Conservative trend toward the concentration of power also continues in Bill C-45. The bill would dismantle a series of commissions and give more power to ministers to make decisions without accountability.

However, there are new problems too. The combined effect of the Conservatives' proposed changes to the SR&ED tax credit, the research and development tax program, will be to reduce government support for business research and development at a time when Canadian businesses most need to increase innovation and productivity to succeed in an increasingly global economy. These changes are also likely to drive firms to move their R and D activities to other countries with better incentives.

The New Democrats are also concerned by the proposed changes to public service pensions that will create a two-tiered work force in which younger people will have to work longer for the same retirement benefit. These changes come in the context where the Conservative government is failing to take action on youth unemployment and crippling student debt, while also making young people, especially, work longer in the future to qualify for old age security benefits.

The bill talks about jobs, but let us be clear. The Parliamentary Budget Officer has estimated that this budget bill will cost 43,000 Canadians their jobs. When combined with previous rounds of cuts, the Parliamentary Budget Officer projects a total of 102,000 jobs lost.

As a result of these job cuts, economic forecasters have been revising their projections for the Canadian economy downwards. In fact, on the day Bill C-45 was released, the Minister of Finance suggested a downgrade would be announced in the fall economic update. Sure enough, the minister announced, during the November fall break, that the government would fall short of its own deficit targets.

Worse still, Conservatives have failed to outline any contingency plan to deal with the slowing growth and increasingly negative fiscal indicators. In the third quarter, Canada's GDP grew only by 0.6%, even lower than the Bank of Canada projected rate of 1%. Ongoing volatility in the global economy poses a significant risk to Canada's future economic growth.

The official opposition New Democrats believe strongly that the federal government should take action now to safeguard the Canadian economy against outside risks, such as an escalation of the eurozone crisis, which is back in recession, or a worsening of the American economy.

There are internal risks as well. Ultra-low borrowing rates, which have remained unchanged for more than two years, are fuelling unprecedented household debt.

Increased inequality is one of Canada's greatest challenges.

Most Canadians' real wages have remained stagnant for several years now. In fact, the average income of Canadians has increased by only 5.5% over a period of 33 years.

According to the Conference Board of Canada, income inequality is growing faster in Canada than it is in the United States. Much of this growing inequality can be attributed to an increase in the revenues of the richest 1% of the population. Canadians who belong to that 1% have increased their share of the nation's total revenue from 8.1% in 1980 to 13.3% in 2007.

In fact, Canadians in that 1% are responsible for nearly one-third of total income growth between 1997 and 2007. This growth occurred at the expense of other income groups.

Youth unemployment is still a major crisis. Unemployment for youth is at 15%, up 1% from last year, and there are 70,000 fewer youth jobs than one year ago. Food bank use increased again last year and is up 31% compared to pre-recession levels for youths. Nearly one in five food bank users is currently or was recently employed. That is from the Food Bank of Canada.

In 2009 a report from the UN rapporteur for adequate housing found that Canada had been lagging in its commitments for social housing and to end homelessness. With three million Canadians living in housing insecurity, Canada remains the only G8 country in the world without a national housing strategy.

Unfortunately, the Conservatives are focused on austerity measures that will act as a further drag on our economy. Multiple witnesses confirmed at the finance committee that Bill C-45's proposed changes to the SR&ED program would kill jobs and hinder innovation, which is a key factor in economic growth. Even worse, innovation is the best solution to Canada's two decade long productivity slump and the cuts to SR&ED will only further weaken Canadian productivity growth.

That is not just New Democrats saying that. Let us hear from Warren Everson of the Canadian Chamber of Commerce who confirmed at the finance committee, “The budget 2012 decision to cut a quarter of the SR and ED tax credit was, in our opinion, a step in the wrong direction”.

Let us hear from Martin Lavoie of the Canadian Manufacturers and Exporters who raised similar concern at the industry committee this November. He said:

Thus far, $633 million will be withdrawn and $333 million reinjected annually. That is a ratio of two to one. Will other measures eventually be announced? I do not know and we cannot really rely on that. What we are also hearing from our members...is that we cannot base our future investments on what we do not know. What we do know is that SR&ED will be reduced. We do not know whether there will be new types of direct sectoral investment.

How can businesses plan for job creation and investment with the government's piecemeal approach?

The Conservatives have no comprehensive plan to create jobs. Instead, Bill C-45 is another one of these 400-page budget bills that lumps together a large number of unrelated measures. It modifies, amends or repeals over 60 other pieces of legislation and contains an entirely new act, the bridge to strengthen trade act, on the Detroit-Windsor bridge, which we would like to support, but it is lumped in with many other measures that we do not support, hence our opposition to this omnibus budget bill.

The NDP did everything it could to study the bill at depth at committee and improve it. However, on every occasion, the Conservatives refused to work with the official opposition. While New Democrats worked hard to ensure that the content of Bill C-45 received full examination and that substantive amendments were proposed to the bill, we saw our Liberal colleagues join with the Conservatives in order to support stricter time allocations for the finance committee. We did not agree with that.

The committee did vote on every substantive amendment, every submitted amendment to Bill C-45 during the clause-by-clause study. However, it was clear that the Conservatives would not consider any amendments to Bill C-45, even despite compelling witness testimony that some of the measures in the bill would have significant consequences for Canadians and the Canadian economy.

While the Liberals and Conservatives have used the committee process to play partisan games, New Democrats remain dedicated to giving Bill C-45 much needed scrutiny and debate on behalf of all Canadians.

Unfortunately, the Conservatives continue to show that they are more interested and invested in ramming through their agenda than in staying accountable to Canadians, and Canadians are taking notice. Let me just offer some other points of view.

Stuart Wuttke of the Assembly of First Nations noted at the fisheries and oceans committee:

—my appearance today does not qualify as consultation with first nations. The Assembly of First Nations is a political organization and the first nations themselves are the individual rights holders of aboriginal rights and treaty rights. A robust consultation will be required by the Government of Canada with first nations across Canada....

Clearly, that has not happened.

Tony Maas of the World Wildlife Fund Canada raised a similar point at the transport committee, in saying:

I am a believer in participatory democracy. While I appreciate the opportunity to speak to the committee today, I do not claim to be, and should not be considered, a representative voice for conservation organizations or for others whose navigation rights and waters may be negatively impacted by the changes in the proposed bill.

I cannot emphasize strongly enough that Bill C-45 is yet another massive omnibus bill making amendments to a wide range of laws, and once again the Conservatives are trying to ram legislation through Parliament without allowing Canadians and their MPs to thoroughly examine it. Of course, we are seeing the sad spectacle of the Parliamentary Budget Officer, whose position was created by the current government, being forced to take the government to court to get basic information that he and, therefore, parliamentarians need to do our jobs. It is unbelievable that we are in this situation.

The NDP did everything in its power to have this bad bill split, but the Conservatives refused to do so. We then tried to thoroughly examine it in committee, but the Conservatives did not accept any of our amendments. Finally, we tried to delay the final vote because we still had hope that we could convince this short-sighted government to improve this monster bill.

Canadians deserve better. However, the Conservatives systematically refuse to listen to them and to work with the official opposition to pass laws that would make Canada a better place to live in instead of destroying our country little by little.

Our New Democrat team opposes budget 2012 and this implementation bill unless it is amended to focus on the priorities of Canadians, really creating good-quality jobs, not just putting the word “jobs” in the title of a bill; protecting our environment; strengthening our health care system; protecting retirement security for all; and ensuring open and transparent government. These are the priorities that Canadians tell us they care about. We have consulted throughout this process in our ridings, in our communities and across Canada and this is what Canadians have told us. They have serious concerns about both the process of this omnibus budget bill and the specific content contained therein.

With that, I therefore move:

That the motion be amended by deleting all the words after the word “That” and substituting the following:

this House decline to give third reading to Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, because it:

(a) weakens Canadians' confidence in the work of Parliament, decreases transparency and erodes democratic process by concentrating changes to over 60 pieces of legislation in one omnibus 400 page bill under the guise of a budgetary bill;

(b) continues to roll back Canadian environmental protection measures by gutting the Navigable Waters Protection Act and further weakens the Fisheries and Canadian Environmental Assessment Acts;

(c) fails to provide substantive measures to create good Canadian jobs and stimulate meaningful long-term growth and recovery;

(d) reduces much needed job-creating tax credits for Scientific Research and Experimental Development; and

(e) creates a two-tiered workforce in the public sector that discriminates against new hires.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, the parliamentary secretary has not dealt with some of the things in the budget that do not belong in a budget. I am talking about the Navigable Waters Protection Act, which strips environmental protection from some 30,000 lakes and rivers in the country. This follows hard on the heels of the government's elimination, or almost elimination, of any environmental assessments required by Bill C-38, which was also a budgetary bill.

Could the minister explain how a handful of small lakes in Muskoka, which do not have any navigation on them except for a few pleasure boats that belong to people with large and expensive cottages, are protected under the act, but other similarly large lakes in Quebec and other places in Canada lose their protection.

Employment Insurance

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, in September, when we returned from the summer break, Canadians were just beginning to discover the full scope of the Conservatives' famous mammoth budget bill.

The employment insurance counter-reforms imposed by the government would have all manner of negative consequences for our economy, but also for our workers and the unemployed.

Last May, because of pressure from the opposition, the Minister of Human Resources and Skills Development was forced to clarify for Canadians the concepts of suitable employment and reasonable job search. We then discovered what the Conservatives deem to be suitable employment.

In Bill C-38, the government has done away with the concept of suitable employment, except in cases when employment arises in consequence of a work stoppage.

The minister also explained that the Canada Employment Insurance Commission would henceforth determine which jobs are suitable for workers based on personal circumstances, working conditions, hours of work, travel time, type of work and salary.

The government also announced the creation of three new categories of claimants: long-tenured workers, frequent claimants and occasional claimants. All of the categories of claimants will be under more pressure to find a job and, within a few weeks, will have to accept any old job at pay that can be just 70% of their previous salary.

As for the notion of reasonable job search, we know that claimants will have to prove that they are conducting daily job searches. We even learned that job seekers would have to prove that they are filling out five job applications a week in urban areas and three applications a week in rural areas.

Claimants will have to keep a journal in which they log all of their job search activities and will have to submit this evidence on request. There will also be a new electronic job alert system that claimants will have to consult, even though claimants do not all have easy access to a computer, let alone the Internet.

Lastly, job seekers will have to search for jobs within a 100 km radius of their home or the equivalent of one hour of commuting time.

I have to say that when I was in Montreal recently, it took me 20 minutes to go through three lights near the Palais des congrès. So the 100 km radius is not always clear.

A few months ago, a man from Carleton was offered a job in Gaspé, even though Gaspé is three and a half hours from Carleton. Someone else, a man from the Îles-de-la-Madeleine, was offered a job in Bonaventure, on the Gaspé Peninsula. That is a twelve-hour trip, including a $50 ferry ride.

How can the minister call these job offers “suitable employment”, when accepting such an offer would cost the unemployed individual one way or another? It would involve either a costly move, uprooting that individual from his community, or a loss of income that could actually exceed the wages offered, after transportation costs.

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

Minister Oliver, my constituents are writing me letters and writing letters to the editor about wasteful government spending, namely the $4 million mentioned on page 108 for advertising programs. While you're doing this advertising, government is promoting itself while cutting valuable services and innovation in science. We tried to put the department back on track by proposing a study on innovation in the energy sector.

I can tell you that my constituents who are concerned about safety and pipelines don't appreciate being called radicals. They don't appreciate being called radicals on the public dime.

They write letters to me and they write letters to the editor. I notice you're a fan of writing letters to the editor too and attacking concerned citizens and journalists. Unlike $4 million spent in advertising, writing letters to the editor is free, so it's good: you're saving taxpayers' dollars by writing letters to the editor.

But certainly, with all the changes made to Bills C-38 and C-45, it will be difficult to convince Canadians that their interests will be taken into account. The changes made show that the government is not at all interested in incrementalism. They are instead showing that our government is a radical one. The power is concentrated in your office. You already have the ability to overturn the decisions of the National Energy Board.

Canadians are right. It's a split with the public. I can describe that as something radical.

Would you support what Premier Marois and Premier Redford proposed? Would you support the joint consultations with the provinces for projects that are under way, such as Enbridge's line 9?

Jobs and Growth Act, 2012

[The Acting Speaker, Bruce Stanton]

It being 12:14 p.m., pursuant to an order made Monday, December 3, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the report stage of the bill now before the House.

Before completing debate at report stage of Bill C-45, I wish to explain the process to the House.

Since the motions in Group No. 1 have already been proposed, I will only refer to the motion number when putting the questions on the motions in that group.

With respect to the motions in Group No. 2, they will be put to the House in the usual manner. When the House is ready to proceed with the putting of the motions of said group, I will only refer to the motion number.

To this end, I have asked that copies of the report stage section of today's notice paper be placed on each member's desk for ease of reference.

I would like to point out that this is the same process that was used last June at report stage of Bill C-38.

We shall now proceed to the putting of the question on Motion No. 1. Is it the pleasure of the House to adopt the motion?

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I rise today to speak against Bill C-45 because, once again, we have before us another reiteration of an omnibus bill. Instead of respecting parliamentary democracy and dealing with issues and different aspects separately, whether it be the environment; changes to EI, labour laws or immigration; protecting our waterways; or pensions; the government has buried all of those issues into this omnibus bill, thus preventing us as parliamentarians from having an in-depth debate.

When MPs are elected, it is stressed how important it is for us to do our due diligence and provide oversight on the budget but the Conservatives keep moving time allocation. Here we are at report stage and once again my colleagues across the way, with an absolute lack of respect for parliamentary democracy and elected parliamentarians, have shut down debate, more or less saying that because they have a majority they can be the bullies that they are surely proving to be.

It is not only members of the NDP who think that way. If there were no time allocation, I could stand here for the whole day and there would be others who would speak and support the position we are taking.

With respect to Bill C-38, Andrew Coyne, who is not exactly a Liberal commentator, wrote the following, which also applies here:

Not only does this make a mockery of the confidence convention, shielding bills that would otherwise be defeatable within a money bill, which is not: It makes it impossible to know what Parliament really intended by any of it. We’ve no idea whether MPs supported or opposed any particular bill in the bunch, only that they voted for the legislation that contained them. There is no common thread that runs between them, no overarching principle; they represent not a single act of policy, but a sort of compulsory buffet.

...there is something quite alarming about Parliament being obliged to rubber-stamp the government’s whole legislative agenda at one go.

From the emails received by many colleagues with whom I have spoken, we can see that this is of major concern, not only to members in the House but also to those who care and cherish our parliamentary democracy. Our citizens are wondering what the government has to hide and why it is not debating key issues in Parliament on their own merit instead of burying them in a new piece of legislation that is the size of a phone book and a phone book larger than those in many of the cities in Canada.

The mantra we also hear, which is a learned kind of refrain, is that the NDP voted against it. I am proud to be standing here speaking against the legislation because it would not do what the Conservatives purport it would do. They say that the bill is all about job creation but we know that is another misleading comment and a kind of mantra used to try to stop what I would call proper discourse on key issues.

The Conservatives claim that the budget is about job creation. However, when the Parliamentary Budget Officer appeared before committee he said that the budget would cost 43,000 Canadians their jobs. That does not seem like a job-creating budget. The budget would actually lead to a loss of jobs. I am not the world's best mathematician, nor will I pretend to be, but I understand what losing 43,000 jobs would mean. I also understand that it is not just the people who will lose their jobs but also the communities in which they live that will lose. When one person loses a decent paying full-time job, it has an impact on the whole community. It has an impact on the business community, on our health care and on all of our institutions. I predict that the job losses will be a lot larger.

The Conservatives claim that they have encouraged jobs by giving tax breaks to small businesses. That tax break will expire before the budget is passed. It is only a minimal $1,000 and it is only there for the year 2012. What a misleading piece of propaganda the Conservatives exude.

It will not be with pleasure, but I will be proud to stand in the House and speak against a budget that attacks the basic Canadian values of our environment, our pensions, our jobs and so on.

At this time I move that, notwithstanding any Standing Order or usual practice of the House, Bill C-45 in clause 321 be amended by adding after line 13 on page 291 the following: the addition of the navigable waters listed below is deemed to be in the public interest and the Governor-in-Council shall, by regulation, as soon as it is reasonably practicable after the day on which the act receives royal assent, add those navigable waters to the schedule, including with respect to lakes, their approximate location in latitude and longitude, and with respect to rivers and riverines, the approximate downstream and upstream points, as well as a description of each of those lakes, rivers and riverines, and where more than one lake, river or riverine exists with the same name indicated in the list below, the Governor-in-Council shall select one to be added, namely, Calder Lake, Rusty Lake, Drybones Lake, Contwoyto Lake, King Lake, Tukweye Lake, Sandy Lake, Dissension Lake, Mid Lake, Hook Lake, Crooked Lake, Tsu Lake, Duckfish Lake, Marion Lake and Cotterill Lake.