This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.
Jim Flaherty Conservative
This bill has received Royal Assent and is now law.
This is from the published bill.
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.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
Randy Kamp Conservative Pitt Meadows—Maple Ridge—Mission, BC
Okay.
Now to the changes to sections 20 and 29, I still find it a little bit confusing about what we did in Bill C-38 and what we're doing here now. I just wondered if you can give us a bit more help on that.
November 6th, 2012 / 9:15 a.m.
Assistant Deputy Minister, Ecosystems and Oceans Science Sector, Department of Fisheries and Oceans
Thanks for the question. I'll start with why it was in there, why we included it. Then I'll explain why we think the proposed version in Bill C-45 is better.
When it was being decided what fisheries we wanted to ensure were protected, we wanted to ensure that we were protecting all fisheries that are fished by Canadians. That certainly includes commercial and recreational fisheries, regardless of whether they're fished by aboriginal groups or by others. But we knew that if we just said “commercial and recreational fisheries”, that wouldn't cover everything we wanted to protect. We wanted to make sure that we were protecting food, social, and ceremonial fisheries, but there are a number of land claims in place that have used the word “subsistence” fisheries, which is not necessarily covered by either “commercial and recreational” or “food, social, and ceremonial” fisheries.
So the language that was proposed and adopted in Bill C-38 said that we would be protecting food, social, and ceremonial fisheries and subsistence fisheries. That was specifically to pick up the land claims agreements that use the language “subsistence”.
It was pointed out that future land claims agreements may use different language from “subsistence”, so we wanted to make sure we were covering whatever is in a land claim agreement with respect to fisheries. As a result, we used the broader term of anything else that is in a land claim, as opposed to just “subsistence”, so taking the very specific piece...in addition to which there was some confusion about what “subsistence” fisheries might cover. We thought it would be clearer to say that it was anything in a land claim, and more broad with respect to what we were trying to protect.
November 6th, 2012 / 9:15 a.m.
Assistant Deputy Minister, Ecosystems and Oceans Science Sector, Department of Fisheries and Oceans
I would say it depends on the section, but in different ways. We heard from stakeholders, both when Bill C-38 was going through the House in the spring and after it was passed; we heard virtually all of the sections asking questions.
Our view was that the act, as passed in Bill C-38, would address most of those issues, but it was pointed out that there was some legal uncertainty in a few of the sections. Those were pointed out by a number of stakeholders, by some aboriginal groups, some industry groups, some conservation groups.
Randy Kamp Conservative Pitt Meadows—Maple Ridge—Mission, BC
Thank you, Mr. Chair.
I thank the officials for appearing before us to try to answer some of our questions.
Mr. Stringer, you've told us from a high level what the changes are. Can you tell us how these changes came about? You've said they have to do with the follow-up to changes that were previously made in June, in Bill C-38.
How did it come to your attention that there needed to be further clarity or certainty, as you said?
Kevin Stringer Assistant Deputy Minister, Ecosystems and Oceans Science Sector, Department of Fisheries and Oceans
Thanks very much.
We have very brief remarks to start. I am joined today by David Balfour, who is the senior assistant deputy minister for ecosystems and fisheries management, and by France Pégeot, who is a senior assistant deputy minister for strategic policy. I, the thorn between two roses, am Kevin Stringer, the assistant deputy minister for ecosystems and oceans science.
We have a few opening remarks, and then we will be happy to answer any questions you may have with respect to the proposed changes to the Fisheries Act that are included in this bill. These proposed amendments are pursuant to the Fisheries Act amendments that were made in the former Bill C-38, the Jobs, Growth and Long-term Prosperity Act, which was passed in June.
Specifically, the proposed amendments in Bill C-45 are very targeted and focused. There are very few of them. For the most part, they are to provide greater legal clarity and more legal certainty regarding some of the Fisheries Act amendments that were approved in June.
The former Bill C-38, therefore, is the context for this act. You will recall that the original amendments to the Fisheries Act provided in that bill provided for a regime that focuses on protecting Canada's commercial, recreational, and aboriginal fisheries—a regime that provides protection from serious harm to those fisheries, which would impact on their ongoing productivity; a regime that addresses managing threats to those fisheries, from challenges to habitat to aquatic invasive species and other threats; a regime that provides enhanced tools for compliance and protection of those fisheries; a regime that enables partnerships with provinces, territories, conservations groups, and others, so that our work at DFO can be better aligned with their work to achieve better results in terms of overall fisheries protection for Canada.
The amendments in Bill C-45 for the most part seek to provide greater legal clarity and certainly with respect to a few of those elements that were in the previous bill. I should note that most of the significant changes that were included in the Fisheries Act amendments that were passed and adopted in June have not yet come into force. Some of them are in force, but the most significant ones—the focus on commercial, recreational, and aboriginal fisheries, the focus on serious harm, and the focus on ongoing productivity of fisheries—are not yet in force. It is proposed that should the further Fisheries Act amendments proposed in Bill C-45 be adopted, they would come into force at the same time that the previously approved amendments come into force.
This initiative amends the Fisheries Act and the Jobs, Growth and Long-Term Prosperity Act to provide legal clarity to previous amended sections and to provide a transitional authority for existing authorizations for harm to fish habitat.
For example, a provision is added to section 40 to direct all fines collected under section 40 of the Fisheries Act to the existing Environmental Damages Fund, to be used for proactive initiatives to further advance the protection of Canada's fisheries.
There is also a proposed amendment to the definition of “aboriginal” with respect to fisheries, which effectively replaces the term that was in Bill C-38, the term “subsistence”, with the term “purposes set out in a land claims agreement”. This will help to ensure that we are clearly capturing the responsibility to protect fisheries that are defined in current and future land claims agreements.
With respect to fish passage, it is proposed that sections 20 and 29 of the Fisheries Act be amended to provide greater clarity so that it's clear that the main prohibition in the Fisheries Act—section 35—applies to fish passage. It applies to barriers to fish, dams, etc.
There are also transitional provisions to clarify that if we provided an authorization under the previous act, that it continue under the current act, and there's an opportunity for people who are subject to the conditions of those authorizations to have that tested against the new prohibition requirements.
With that, that's a high-level overview of what the changes are, and we're happy to take any questions from the committee today.
Anne Minh-Thu Quach NDP Beauharnois—Salaberry, QC
Mr. Speaker, today I am going to talk about the government's decision to eliminate the experimental lakes program, or to do away with it. I think that decision is catastrophic.
Research on the quality of our water is critical to Canada. The development of the oil sands and the resulting pollution and contamination due to mining operations, not to mention acid rain and so on, are increasingly important stressors for our lakes and rivers. And we are not even talking about the risk of environmental accidents caused by offshore oil and gas development. It is hard to understand why this government has decided to axe a program that was contributing to Canada's reputation abroad.
The program includes research on blue-green algae, on the impact of climate change on our lakes and fish habitat, and on the impact of contaminants on the lakes' biodiversity. The studies being done by scientists in 58 lakes in their natural state are unique and cannot be replicated anywhere else in the world.
Why? Because it is the only place where research is done directly in the lakes, in constantly evolving complex ecosystems rather than in laboratories. Scientists around the world know this very well. That is why they criticized the cuts from the very outset. In Canada, more than 20,000 people signed the petition to continue the existing public experimental lakes.
Why eliminate this program? The government's answer is that it wants to save money. And yet the Conservatives estimate the savings generated by this decision at only $2 million, when closing the lakes will cost $50 million.
This irresponsible decision by the Conservatives will cost us $48 million and threaten the quality of our waterways.
Canada recently announced that it had signed an agreement with the United States on monitoring water quality in the Great Lakes. Will the government be able to meet its international commitments if it cuts all research programs like the experimental lakes program?
The cuts at Fisheries and Oceans Canada will affect hundreds of scientific jobs all across Canada. In Bill C-38, the first mammoth budget implementation bill, the government took the axe to the environmental assessment process. There were over 3,000 fewer environmental assessments this summer. Bill C-45 goes after lakes and rivers. There are now only 97 lakes and 62 rivers in all of Canada that will continue to be protected. All the water quality monitoring mechanisms are being ditched, one after another.
And then the government goes and tells our neighbours to the south that we will monitor the water quality of the Great Lakes. It is completely absurd.
In addition to axing water quality monitoring programs, the Conservatives are gagging scientists. Scientists working on the experimental lakes program cannot talk publicly about what is going on or explain the impact of the cuts on their research program. Tom Muir, who was formerly a biologist with Environment Canada and who is now an independent researcher, found that there was politicization of research within the department.
Scientists can no longer explain their research findings. They have to refer all questions from the media to the department’s communications branch, staffed by employees who are trained to dish out propaganda rather than scientific facts.
Today we learned that Environment Canada research conducted on the oil sands was censored once again. Scientists at the University of Alberta discovered that contamination levels in snow and rain near the oil sands extraction sites were much higher than average.
Here the department made the researchers use a series of canned responses when speaking to the media. In most cases, the scientists were not allowed to answer media questions and had to refer all interview requests to the departmental communications people. We can no longer ask questions, and the public has no right to know whether our lakes and rivers are being polluted.
I have a question for the minister or the parliamentary secretary. What will happen to our Experimental Lakes? Will the program be privatized?
November 5th, 2012 / 3:55 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
Bill C-45 suspends the board. Once the account is in the black, the board will determine the contribution rate based on the new approach under Bill C-38.
Starting today and until then, the rates will increase by 5¢ each year to balance out. Since the board cannot fulfill its duties as set out by the legislation, with respect to investment and funds allocated to the account, the government decided to suspend its activities and resume them once the balance is achieved.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Bill C-38 is putting in place a new method of operating that will come into effect around 2016-2017. However, Bill C-45 aims to eliminate the board immediately.
What will happen in the meantime? Bill C-45 proposes eliminating the Canada Employment Insurance Financing Board. The board won't be abolished in 2016-2017?
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
It states that the mechanism that was implemented under Bill C-38 will come into effect only once the cumulative balance of the account is zero.
How much is the deficit currently? Can you remind me?
Kirsty Duncan Liberal Etobicoke North, ON
Mr. Speaker, through economic action plan 2012 and Bill C-38, the government severely cut the budget to Environment Canada, gutted environmental legislation, cancelled the National Round Table on the Environment and Economy. The Conservatives have also silenced dissent from environmental non-governmental organizations and continue to muzzle government scientists, threatening our economy and environment.
Our world-renowned natural heritage is now being further imperilled by a government that fails to understand that water is the foundation of life, is at the centre of economic and social development and is fundamental across economic sectors, including agriculture and energy.
Through its latest anti-democratic omnibus legislation, Bill C-45, the government is stripping federal oversight from thousands of Canadian waterways. Of the roughly 32,000 lakes in Canada, just 97 lakes and 62 rivers will now be protected.
Instead of killing the Navigable Waters Protection Act, will the government prioritize clean water and restore our freshwater ecosystems?
November 1st, 2012 / 4:45 p.m.
Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Sure. My colleague Annie has just explained the process for getting the approval of the Superintendent of Financial Institutions. In this case it would work the same way. The applicant and the financial institution in Canada would both come to OSFI to make an application. OSFI would assess it from a prudential perspective, would bring a recommendation forward to the Minister of Finance, and then there would be a process whereby we would consider whether the criteria that were added to the law in Bill C-38 had been met. That recommendation would then go to the minister for approval.
November 1st, 2012 / 4:45 p.m.
Chief, Financial Institutions Division, Structural Issues, Financial Sector Policy Branch, Department of Finance
No. I am talking to you about what is now found in Bill C-38.
November 1st, 2012 / 4:40 p.m.
Chief, Financial Institutions Division, Structural Issues, Financial Sector Policy Branch, Department of Finance
We didn't change the framework for the ones that were currently allowed before Bill C-38. For those ones there are exactly the same rules.
What we did is we looked at this new class of investors. We looked at whether we needed to modify certain clauses for them to make it a little more.... For instance, there are certain provisions in the Bank Act right now whereby when you've already received an approval from the minister, if you increase your share number by 0.1%, you don't need to come back for another approval. It's really a minor additional share you're getting.
We said for those types of investors we ask them to come back. We're saying, “For you, we prefer that you come back because we really want to see every share issuance.” That's an example. We didn't change the status for the previous investor. We just clarified it for those ones where we say, “We want to see every share issuance. So this little technical exemption doesn't apply to you.”
Peggy Nash NDP Parkdale—High Park, ON
Just so I understand it, if I'm an investor who had invested before Bill C-38, now with these changes to harmonize the investments, what change would I see? If I were a previous investor, what change would I see with these new rules?
Annie Hardy Chief, Financial Institutions Division, Structural Issues, Financial Sector Policy Branch, Department of Finance
My name is Annie Hardy. I'm going to give you a brief overview of this section.
The first Jobs, Growth and Long-term Prosperity Act permitted certain public sector investment pools to invest directly in Canadian financial institutions to provide access to stable long-term investment. The amendments in part 4, division 1, are consequential to the initial provision in Bill C-38 and implement technical and coordinated changes to support the previously legislated policy.
The objectives of the amendment included in this bill are to ensure the new ownership framework for public sector investment pools is harmonized with the current ownership framework for other types of investors, and to clarify that the minister has the exact same powers for this new framework for public sector investment as he has with other investors. Thank you.