Bill C-38 (Historical)

Jobs, Growth and Long-term Prosperity Act

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

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

Jobs, Growth and Long-term Prosperity Act

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I thank my Liberal colleague.

I had the opportunity to work with her on the Standing Committee on Health and I noticed that we have the same concerns about Canadians' health. I will repeat what she said at the end of her question.

Everyone knows that living longer leads to many problems, including dementia, as my colleague mentioned. Unfortunately, our colleagues opposite do not trust scientists or statistics. They simply apply their ideology.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I would like to ask my NDP colleague a question.

At the end of the year, the Minister of Finance decided, without the consensus of the provincial premiers, to radically change how health transfers are made. Federal transfers to the provinces will decrease. In fact, last year, the federal government paid 20% and the provinces paid 80% of every health care bill.

If we look at the figures, we clearly see that the federal contribution is dropping from 6% to 3%. In the end, the provinces will have to spend more on health care and, in some cases, people will have to pay, which will create a two-tier system in Canada. Personally, I like my free universal health care system.

I would like to know what my colleague thinks of that.

[The Speaker, Andrew Scheer]

The hon. member for Saint-Bruno—Saint-Hubert has only 30 seconds remaining.

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I would like to thank my colleague, who is also a member of the Standing Committee on Health, for his question. I really appreciate it.

His question demonstrates that the NDP is very concerned about the unilateral decision taken by the government without consulting the provinces and territories. As he said, our health care system is already in critical condition. It is on life support. The government's decision to reduce transfers could put the whole system in a coma—

[The Speaker, Andrew Scheer]

I have to interrupt the hon. member because her time is up. Resuming debate. The hon. Parliamentary Secretary to the Minister of Labour.

[Kellie Leitch, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, I am proud to be here to discuss some of the highlights of Bill C-38, the jobs, growth and long-term prosperity act, and to speak against the NDP and other opposition amendments that are focused on delaying the passage of the bill.

As our economic record shows, Canada has performed well in the face of global economic uncertainty. Both the IMF and the OECD forecast that we will have among the strongest economic growth in the G7 over this year and the next.

This resilient performance did not happen by accident. It is the fruit of hard labour, solid economic principles, and consistent implementation of a plan that works: Canada's economic action plan.

Economic action plan 2012 sets out a comprehensive agenda to bolster Canada's fundamental strengths and addresses the important challenges confronting the economy over the long term. Our economy's strength provides an opportunity for our government to take significant actions today that will position Canada for a secure and prosperous future.

So far, Canada has had every reason to be proud of its successes. Since our government introduced the economic action plan in 2009 to respond to the global economic recession, Canada has created nearly 760,000 net new jobs, which is the best record in the G7.

Nevertheless, the global economy remains fragile, especially in Europe, and too many Canadians are still looking for work. That is why, in this uncertain economic climate, our government is staying focused on our low-tax plan for jobs and growth, a plan that is focused and works toward serving Canadians well. To this end, economic action plan 2012 focuses on the drivers of growth and job creation, innovation, investment, education skills and communities.

Through my remarks today, I would like to highlight some of the measures our government is proposing to keep the labour market healthy and prosperous.

My first point today will focus on employment insurance. EI is Canada's single largest labour market program. It provides temporary income replacement to help individuals and their families, as well as training and other labour market supports to help Canadians return to employment.

Bill C-38 makes targeted changes to make EI a more efficient program that promotes job creation, removes disincentives to work, supports unemployed Canadians and quickly connects Canadians to jobs that improve their quality of life and Canada's economy.

To outline these important measures, I will break this down into some details.

Our government is committed to helping Canadians who are looking for work. That is why our government will invest $74 million in a new national EI pilot project to ensure claimants are not discouraged from accepting work while still receiving EI benefits. This new pilot project, the working while on claim pilot project, will cut the current earnings clawback in half, to 50% of earnings, and apply it to all earnings while on claim. This will ensure EI claimants always benefit from accepting work by allowing them to keep more of what they earn while still on employment insurance.

Second, matching workers with available jobs is critical to supporting economic growth and productivity. Economic action plan 2012 will invest $21 million to enhance the content and timeliness of job and labour market information that is provided to Canadians looking for work. Along with providing relevant and timely job information, we will strengthen and clarify what is required of claimants who are receiving regular EI benefits and looking for work.

Third, our government recognizes that Canadians want stable and predictable EI premium rates and a transparent rate-setting mechanism. Our government would ensure predictability and stability in the EI premium rate. Over the next few years, we will limit annual rate increases to 5¢ until the EI operating account is balanced. Once the account has been returned to balance, the EI premium rate will be set annually on a seven-year break-even rate to ensure that EI premiums are no higher than needed to pay for the EI program. After the seven-year rate is set, annual adjustments to the rate will also be limited to 5¢.

Overall, these changes to employment insurance have been widely welcomed, especially from small business.

Indeed, the Canadian Federation of Independent Business said:

Since the recession, skills and labour shortages have re-emerged as a major concern for Canada’s small business community. We believe the changes to defining suitable employment, based on how frequently EI is claimed, will help to remove disincentives to work and hopefully make it easier for small firms to find the people they need.

Another way we propose to help meet Canadian labour market needs is to solidify our immigration system. Economic action plan 2012 helps set the stage for strengthening our immigration system into one that is targeted, fast and efficient, and can sustain Canada's economic growth and deliver prosperity for the future. Canada needs immigrants who are ready, willing and able to fully integrate into Canada's labour market, particularly when there are essential skills shortages.

Economic action plan 2012 reinforces the government's commitment to move toward a more economically focused immigration system with the following three measures.

First, we will improve the responsiveness of Canada's immigration system by immediately directing our efforts toward addressing modern labour market realities.

Second, we will work with the provinces, territories and stakeholders to support further improvements to foreign credential recognition and to identify the next stages of target occupations beyond 2012. This will help more highly skilled newcomers find work related to their training, allowing them to quickly contribute to Canada's economy.

Third, we will continue to consider additional measures to strengthen and improve the temporary foreign workers program. This will help support our economic recovery and growth by better aligning the program with labour market demands.

Reaction to these changes has been very positive. In the words of the Canadian Construction Association:

The reforms promised by the budget to...immigration will ensure the country is well placed to take advantage of the more than $500 billion in major economic projects expected in Canada over the next ten years.

When it comes to creating a labour market that is strong and efficient, our government continues to take responsible action that meets our changing circumstances. Canadians gave us a strong mandate to stay focused on the economy and that is exactly what we have done and continue to do. We have a record to prove it.

Since July 2009, employment has increased by nearly 760,000 net new jobs, the strongest job growth among G7 countries over the economic recovery. More than 90% of these jobs created since July 2009 have been full-time positions and 80% are in high wage industries and in the private sector. While these are positive signs, Canada cannot rest on its record of success. We need to keep focused on the economy and on creating high quality jobs.

That is why I urge members of the House to pass Bill C-38 without delay because it will help create jobs for Canadians, and that is the right thing to do.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I listened carefully to the Parliamentary Secretary to the Minister of Human Resources and Skills Development and it astounded me that not once did she mention anything about affordable housing. That is because there is nothing in the bill about affordable housing, which is really quite shocking.

I wonder if the parliamentary secretary is aware that one-third of existing social housing units are at risk of the expiry under the federal social housing operating agreement, which is a potential loss of 200,000 social housing units in Canada. As a result of her government's inaction and the fact that there is nothing in the budget about affordable housing or social housing, existing social housing is now at risk. Why did she not comment on that in her budget speech? Why is the government so blind to the whole question of housing and what is at risk?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, this government has invested significantly in social housing and in ensuring that vulnerable Canadians have a roof over their heads. Over 615,000 individuals in this country have benefited from the economic action plan of this government.

I will be clear. We have taken action. We are providing housing and support for vulnerable people. The NDP vote against these initiatives every time.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I want to acknowledge the fact that the working while on claim project is a worthwhile initiative and it is something we have supported. It was first announced in February 2005 by the then minister, Lucienne Robillard, and the Conservative government has increased the amount.

The member says that it is a new program. Could she outline the differences between the program that was announced in 2005 and this current program?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, the working while on claim program is now a national program. The intent behind this program, as I mentioned in my speech, is to decrease the amount of clawback on employment insurance so that individuals who take a part-time job and are still able to claim EI are encouraged to continue to work. A number of individuals who take on part-time work then transfer into a full-time job. This is a way of creating the attachment of individual Canadians to the labour market. It is a great program. We are moving forward with it. I am delighted that it is in the budget.

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Health]

Mr. Speaker, I want to ask my colleague a question about certain Conservative ideology, a horrible Conservative radical idea that I mentioned earlier, called mathematics. We have been hearing the NDP members speak this evening to the cuts in the budget to health care.

I know the member is a very well-known surgeon and physician and is very supportive of our health care system. She works hard to promote the ideals that we as Canadians really do appreciate.

I know the member knows that the NDP's approach is to throw an indefinite amount of money at the health care system. However, we have a different approach. I am talking about accountability, sustainability and things like that. I wonder if the member could take a few moments to discuss the differences in the NDP, Liberal and our approach. As well, could the member throw something in about mathematics to explain that to the opposition members?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, I thank my colleague from Oshawa for his great work on the health committee. I have had the opportunity to be at the health committee a few times.

The very simple math is that the Government of Canada has put forward, in previous budgets and in this budget, an escalator of 6%, which means that each year it is a cumulative effect. It is an increase each successive year. Following that, we will have a base of 3%, if not higher, to GDP. It is very simple math. It is just adding simple numbers. I would encourage the NDP to do just that.

The other thing that the government is doing that particularly benefits the health care field and something that I feel very strongly about is our support for innovation, science and technology. Whether it be the $37 million more for granting councils or the $60 million for high-class research at Genome Canada, these things are extremely important to ensuring we have the next set of great discoveries so that they can benefit Canadian patients.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Mr. Speaker, I am pleased to have the opportunity to rise in the House today in support of Bill C-38 at report stage.

I must begin by expressing disappointment at the opposition's delay tactics which threaten the important measures contained in the bill. Instead of debating the issues that really matter to Canadians opposition members choose to engage in dire prophecies of doom and gloom and temper tantrums similar to ones by toddlers on a supermarket floor. Fortunately, Canadians can see past the opposition's melodrama.

As we heard again and again during the lengthiest consideration of a budget bill in more than 20 years, the legislation before us today focuses on what Canadians want. It would strengthen our economy, promote jobs and growth and ensure Canada's long-term prosperity. It would ensure the sustainability of programs not only for today, but also for future generations to come. For example, the changes to old age security would ensure that these benefits would remain sustainable and would be there when retired Canadians need them. The changes to employment insurance would make it easier for unemployed Canadians to get back to work in a more timely manner. Of course, we are also making changes to ensure balance when it comes to environmental regulations. Canadians want a government that balances the environment with our responsibility to promote jobs, growth and long-term prosperity.

Crucial to a sound economy is law and order. In that regard, our government committed to getting tough with criminals when we were first elected. We have backed up that commitment with concrete actions. We have listened to the needs of victims, police officers and ordinary Canadians, all of whom told us that the time has come to take strong measures to deal with gangs and violent crimes.

We have taken steps to give law enforcement officials the resources and legislation they need to address crime and help ensure that law-abiding citizens are not afraid to walk down the streets. We have strengthened and modernized the Criminal Code. We have introduced measures to make sure that people convicted of a serious crime are dealt with appropriately.

Bill C-38 contains important measures which would help us do even more, specifically to combat guns, drugs and other contraband goods that often find their way onto our streets and into our school grounds due to smuggling operations by gangs and organized groups. It is those measures that I would like to speak about today.

In some cases these criminals use land ports of entry. In others, our shared waterways with the U.S. often provide a ready-made channel for criminals to smuggle these illegal products into Canada, threatening our homes, our families and our neighbours.

Many of us have heard the stories of high-powered boats skipping across the St. Lawrence or Great Lakes waterways with law enforcement agents in hot pursuit. The good news is that in some cases these criminals are stopped in their tracks, but the bad news is that in many cases they manage to get away. The criminals who smuggle illegal goods across our border with the U.S. can sometimes avoid capture and prosecution in one country by slipping across the international boundary. Law enforcement officials from the U.S. and Canada have to call off the chase at the border due to jurisdictional limitations, which means that illegal and dangerous goods can and do sometimes make their way into the hands of gangs, thugs and dangerous criminals.

Bill C-38 would help put an end to that. It would give law enforcement officials on both sides of the border the tools they need to do their jobs effectively, which is something our government has continued to do here in Canada since we were first elected in 2006.

The legislation before us today contains important measures that would ratify an agreement which our government signed with the U.S. to allow specially trained and designated Canadian and U.S. officers to work together on jointly crewed marine vessels, known as shiprider teams, in order to enforce the law on both sides of the international boundary line.

It spells out how these joint operations would be carried out, while also proposing amendments to the Customs Act, the Criminal Code, the Immigration and Refugee Protection Act and the Royal Canadian Mounted Police Act.

The measures in Bill C-38 stipulate that all shiprider operations would be conducted in a manner respecting the rights and freedoms protected by the Canadian Charter of Rights and Freedoms and domestic privacy protections. They would also be done in a way that respects the domestic sovereignty of both nations and in accordance with the rule of law.

For example, in Canadian waters, operations would be subject to Canadian laws and procedures and conducted under the direction and control of Canadian law enforcement officers. The opposite would apply when ships are operating in U.S. waters.

The bottom line is this: By being able to enforce the law on both sides of the border, Canadian and U.S. law enforcement officers would no longer be faced with jurisdictional challenges associated with cross-border policing that are often exploited with criminal organizations. Shiprider officers would now be able to continue pursuit of criminals trying to evade arrest and prosecution by ducking across the border.

In addition, these operations would allow Canadian and U.S. law enforcement agencies to maximize existing border law enforcement resources. Instead of mirroring operations on either side of the border, this integrated approach would allow resources to be deployed most strategically along the border and leverage enforcement capacity, range and capability.

This is just one way in which Bill C-38 would help reduce cross-border crime while protecting our economy by cracking down on the smuggling of illegal contraband.

Criminals who smuggle illegal guns and drugs across our borders will have to face the consequences of their actions. They will be caught and they will be prosecuted.

In practical terms, we know from direct experience that shiprider is an effective border law enforcement tool. In 2007, operations in the Cornwall-Massena region in the east, and British Columbia-Washington border region in the west netted a large quantity of marijuana, over one million contraband cigarettes, six vessels and a huge amount of cash. However, it is some of the images that really tell the story and I will give a few examples.

Several years ago, the United States Coast Guard took a photo of a smuggler on the Great Lakes gesturing in contempt as he crossed the maritime border. The smuggler knew that the Coast Guard could do nothing to respond as he had managed to make it into Canadian waters with the help of a hand-held GPS. The Coast Guard could only monitor the situation. What a sad story.

Fast forward to 2007, and this time the Coast Guard, working with an RCMP officer aboard a shiprider vessel, set off in pursuit of a speedboat suspected of carrying drugs from the United States to Canada. When the pilot crossed the international boundary, he kept on going, knowing that officers could arrest him on either side of the border. The officers did not catch the boat on the water, but with the assistance of local police, they were able to intercept the perpetrator on shore yielding a haul of marijuana, more than one million cigarettes and a car.

In another instance, a fleeing boat stopped after it had crossed the Canadian border only to be approached by shiprider personnel. While no contraband was found on the vessel, the boat itself tested positive for cocaine residue and was promptly seized.

That same year, local police asked for shiprider assistance in a suspected case of child abduction. Because law enforcement officials on both sides of the border were able to co-operate, the abduction was averted and the child was returned unharmed.

The presence of shiprider operations in the area also helped to displace a considerable amount of smuggling to border ports of entry. The Canada Border Services Agency noted that there was a marked increase in arrests at land-based border crossings as a result of the shiprider program.

Considering all of the examples I gave, I urge my colleagues on the other side to support the bill so that we can implement these important measures.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, shiprider is an interesting program that actually came through the Senate, the unelected chamber, in terms of its analysis, and now it has been altered significantly in the budget bill. There was a lot of evidence of problems with the shiprider program and the problems it creates for tourism and trade.

I want to focus on why the government is cutting the Canada Border Services Agency inspections officers down to 1,100 officers. In fact the government is getting rid of one-quarter of the sniffer dog teams that are directly linked to eliminating gang operations as well as drug smuggling and gun operations. It is eliminating them through the budget. How does the government square the circle that the shiprider program can do those things?

I would invite my colleague to talk about the fact that in the United States there were a couple of interesting cases where U.S. customs officers actually killed American citizens. There was also the case in Niagara Falls four years ago where an American law enforcement agent pursued an American vehicle into Canada, killing a single mother on the streets of Niagara Falls.

Maybe my colleague could talk about those cases. It would be interesting to square the circle as to how the government will have accountability for those issues in this agreement.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Mr. Speaker, the shiprider program has been operating on a pilot basis since 2005. As I mentioned in my speech, we have seen the positive outcomes. I gave the example of a child who was abducted and because of the shiprider program, the child was reunited with his parents.

This will promote economic benefits by protecting the border and cracking down on the smuggling of contraband.

As I mentioned, more than one million contraband cigarettes were confiscated in one year, and marijuana also. The target for all these drugs and contraband cigarettes ultimately is our youth, the young children in our schools.

I would ask my colleague to help us to implement these rules so that we can protect our youth from all these smugglers.