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.

Helping Families in Need Act

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I think members of the House all agree that this is a small step in the right direction to help parents of young children who may be sick or victims of crime.

We are seeing the effects of Bill C-38, the omnibus crime bill, in our communities right now. In my constituency of Surrey North, I have seen people who are struggling to get their cheques on time. People are trying to speak to a live person on the other end of the phone line. People are struggling to qualify for these benefits that they have paid into. I heard from one of my constituents who has paid into the EI program for decades.

Is my colleague hearing that people are having trouble getting someone live on the phone? Is he hearing these sorts of complaints from his constituents?

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, this is a small step in the right direction. However, the Conservatives have taken giant steps backwards when it comes to Canadians getting benefits and how they qualify. During the time Canadians are getting benefits, if they want to work part-time or earn extra income, the Conservatives are cutting back on the take-home pay people are able to make.

I have watched Conservatives in this House as they constantly play with the numbers. We are seeing that right now. In fact, 40% of unemployed Canadians receive benefits. The other 60% are not receiving any EI benefits at all.

Bill C-38 and the cuts Conservatives brought in to services and benefits are a big issue.

Would my colleague agree that this is a small step in the right direction to help families, yet the Conservatives have taken large steps backwards in providing benefits to the unemployed?

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Mr. Speaker, I have heard very similar stories in my constituency of Scarborough—Rouge River, but I must go one step further. We have extremely high levels of unemployment among adults and youth. My constituency has the highest youth to population ratio in all of the GTA and we know that youth unemployment is skyrocketing. It is the highest in our history and continues to skyrocket.

We know that 4 out of every 10 unemployed workers have not qualified for EI benefits as a result of the continued cuts and clawbacks and changes to the EI legislation from the omnibus Bill C-38, along with other changes that the Conservative government continues to make. These will continue to erode the benefits that employers and employees have paid for.

Finally, we have to remember that the EI benefits fund is one that only employers and employees have paid into, and if the government is not paying into it--

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, these are good changes that will help families in time of need and we fully support them. However, I want to highlight the bigger problem with the EI program. We have seen the gutting of the EI program by the Conservative government. Bill C-38 not only gutted the benefits paid to Canadians but also cut services for people who want to access these benefits.

I have seen this in Surrey North, where hundreds of people have come to my office. They struggle with the maze that is in place when phoning and getting either no answer or no live person answering. Not only that, but people are also having difficulty accessing the EI benefits they paid for. After two and a half months they have not received their first cheque. Under the Conservative government we have seen the highest personal consumer debt rate among all Canadians, so people who lose their jobs need the money to bridge that gap.

Has my colleague heard these sorts of complaints in her constituency?

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, it is important to know that we on this side of the House support these changes to the Employment Insurance Act. They will help Canadian families at a time when they need the benefits the most.

Many people have come to my riding office who have told me they are not getting their benefit in time and cannot get access by phone. There are many cases of people waiting months to receive their first EI benefit cheque, and this from a fund they have paid into and unfortunately have to access after losing their job.

I wonder if my colleague could tell me about her experience in her riding. How are people being affected by these drastic changes to EI and the service cuts that were part of omnibus Bill C-38?

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, this is the first time I have had a chance to stand in the House since you were elected and I want to congratulate you. I know the House will benefit from your knowledge and your wisdom. I have benefited, as have many newer members in the House. I look forward to working with you.

I will be splitting my time with my fellow British Columbian, the member for Esquimalt—Juan de Fuca.

I rise today to speak to Bill C-44, An Act to amend the Canada Labour Code and the Employment Insurance Act. My colleagues in the NDP support the bill. It is not a question about ideology. It is not a question about partisan politics. It is about assisting families in times when they need the help most. It goes without saying that we support these changes that would help ease the suffering of parents who need the help.

Parents who have children who are ill and parents of children who are victims of crime deserve our support so that they do not need to worry about financial support when they are struggling to cope with very difficult situations. In situations where children are in a hospital the parents need to do the parenting and not worry about financial decisions that need to be made.

It is a good bill in that sense. We also support the new right to combine EI benefits so that if people get sick or injured while on parental leave, it does not take time away from their children. The bill is definitely a step in the right direction but I do have some concerns.

My understanding is that the Conservatives promised in their campaign literature in 2011 to provide enhanced EI benefits to parents of murdered or missing children and parents of gravely ill children. This was their promise. However, the Conservatives also promised that the funding for this measure would come from general revenues, not EI premiums. The grant for parents of murdered and missing children would be paid from general revenues and not through EI. However, it appears that the Conservatives have ignored their promise that benefits for critically ill children would be paid from general revenues.

I am curious as to why they have made this choice and gone back on their promise that this would not come out of EI. We have an accumulated deficit of $9 billion in the EI fund and that deficit has occurred under the current government.

A few years ago we had a surplus of $50 billion in the EI fund that was paid by the workers and employers so that when the fund was needed it was there. However, we have seen the government take that money out of the EI fund and put it in general revenues. The money that was there for people to use EI has been taken away by the government and now we have a deficit of $9 billion in the fund.

On top of that, we have seen the government increase EI premiums both for the employer and for working people. That happened this year and that is not fair.

We in the NDP have been very clear. We want comprehensive EI reforms. We want to make EI accessible and effective for all Canadians when they need this insurance policy. These measures also do not address the greatest challenge with EI, the lack of access for unemployed Canadians. I am concerned that the government is avoiding the biggest problems with EI. For example, fewer than half of all unemployed Canadians are receiving EI benefits.

As of July 2012, about 500,000 Canadians receive regular EI benefits. We have 1.3 million unemployed Canadians looking for work. This means that we have over 870,000 or 40% of unemployed Canadians who are without EI benefits. I would remind the House that is an all-time historic low. That is why the NDP will continue to fight for an EI system that is fair, accessible and effective for unemployed Canadians.

Over the last number of months, we have seen changes to the EI program itself as well as service cuts brought through the omnibus Bill C-38. The effects of those changes are trickling into every corner of this country. I have seen this firsthand in my constituency. People who have come into my office are struggling to access their benefits because of the maze that has been created. They are having difficulty resolving issues, getting through on phone lines and even talking to a live person over the phone because of the service cuts.

On top of that, we have seen the changes brought in by the Conservatives through Bill C-38 strip away the benefits from workers who have contributed into this fund. They are not able to receive the benefits that they should be receiving. I have had many cases where people have waited months to receive their first cheque. People pay into the EI program to collect the benefit when they are laid-off. It is a bridging for them until they find another job.

We know that Canadians are burdened with high consumer debt and living from cheque to cheque. When people lose their job and apply for EI, one would think they would get their cheque as soon as possible. However, under the Conservative government, people are waiting for months. One gentleman who came into my office waited two and a half months for his cheque. He had paid into the EI system for decades and had never collected EI benefits before but, unfortunately, he lost his job. He was literally on his last box of macaroni and cheese. In fact, he had to go to the food bank to get food for his family. After two and half months, one would expect his cheque to be there. When he phoned EI, there was nobody live to talk to. In fact, there was a small administrative issue that could have been dealt with many weeks earlier. However, this fellow was getting nowhere. We were able to help him, but, again, a person who paid into the system should not have to wait that long to receive EI benefits.

I could go on because I have seen first-hand how these types of changes are affecting everyday families in my constituency and right across this country.

This is a small change but a good initiative that will help Canadian families throughout the country, and we welcome that. As we have said, we would like to discuss the changes made in Bill C-38 in committee so that we can get to the bottom of the bigger issues, which is the broken EI system that has been put in place by the Conservatives.

Health

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

Mr. Speaker, I rise today to go back to a very valid question that I asked in the House before the summer recess. At the end of April, I drew the minister’s attention to the fact that, all spring, the NDP had asked the government a great many questions in order to get answers about the impact of the Service Canada cuts.

What I regretted at the time and what I regret to this day is that few concrete responses have come to the ears of Canadians, although Canadians deserve clarification on the employment insurance reform this government has set in motion. The government is clearly demonstrating a lack of transparency, whereas its first responsibility is precisely to be accountable to Canadians.

I spoke then about a culture of secrecy that prevails in the Conservative team. I maintain that that behaviour puts into clear and present danger the entire system on which our democratic institutions rest, institutions that should be built on mutual trust between the government and the people.

Over the past year, Canadians have unfortunately witnessed this unacceptable behaviour on a number of occasions. At the time, I asked the minister when Canadians would have the pleasure of an open, honest and communicative government. I stand here today on behalf of all Canadians in order to obtain more information in that regard.

At present, we are well aware that in the history of Canada, there has never been a more controlling cabinet than the Prime Minister's cabinet when it comes to information. Information is disclosed in dribs and drabs. This is not surprising when we think of how things are managed, the F-35 fiasco, implementing the budget while keeping Canadians in the dark, and the many ethical lapses that the government must constantly cover up.

Examples of the lack of transparency on the part of this government abound, to the dismay of the people, who only want to know where they stand when it comes to reforms or cuts.

It is the same problem with employment insurance and its reform. Since Bill C-38 was introduced, Canadians have been given the broad general outline of an unwarranted reform but not the details and content of or, more particularly, the rationale for this reform. How can Canadians who are affected by these changes plan their futures or anticipate the possible impact on their quality of life or on their family life if they are kept in the dark?

How do we know whether seasonal workers in the regions who mainly make their living on the seasonal economy will have to be uprooted from their communities and forced into exile in a place where low-quality, full-time jobs are available? How do we know whether unemployed workers who find a job that pays 70% of their salary and who then lose their job again will not see their salary disappear by being obligated to accept a job that pays 70% of 70% of their initial salary? How do people avoid the trap of the downward spiral of poverty? How does a mother who is the head of a single-parent family get child care so that she can work a 40-hour week in a town that is an hour away by public transportation?

In an ideal world, Canada would have full employment from coast to coast to coast. However, in the real world, our economy depends on the global economic situation and one must assume that entire economic sectors—sectors that make Canada a prosperous and economically balanced country—involve seasonal work. This government must recognize and value that fact.

I would like the minister to take this opportunity to reassure Canadians of her government's desire for transparency in the management of its files, including that of employment insurance.

Bill C-38

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I rise today to present a number of petitions from earlier this spring. The petitioners are concerned that we should not pass Bill C-38.

Faster Removal of Foreign Criminals Act

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, it is with very mixed feelings that I take part in this discussion on Bill C-43. I say mixed feelings because there is definitely an issue here worth discussing and finding a solution to, but this is no way to approach it.

I am here, speaking in the House, because of the voters of Trois-Rivières. We can all agree that Trois-Rivières is not exactly an immigration gateway to Canada. Imagine my surprise in the weeks following my election when I saw the plurality of the cultural communities in Trois-Rivières, when I spoke with the people of those communities and recognized the wealth of diversity. I also recognized a need to listen to one another, in order to try to understand each other, given our respective cultural baggage.

I realized that there should be an individualized approach to immigration for each of the people that I met with in my riding office. There is no doubt that, of all the files that I have dealt with in Trois-Rivières since I was elected, those related to the Department of Citizenship and Immigration have been the most complex. It seems that this goes without saying, given the nature of the subject at hand. As a result, I have a very hard time when someone tries to present a simple or even simplistic solution to a complex problem involving immigration.

Thus, to support Bill C-43 as it stands would require me to turn my back on core values that I cannot deny. It is also asking me to take a great leap of faith to vote to send this bill to committee in the hopes that major amendments will be made to it, particularly given the number of amendments that were accepted in the case of a bill as large and important as Bill C-38. If the past is any indication, there is not much there to reassure me.

However, with all due respect for parliamentarianism, I must still place some hope in committee work and in the fact that the committee could considerably improve a bill that contains certain elements that I think are essential and could do away with others that are simply not consistent with the values held by most Canadians.

For the sake of time, I will start with my biggest concern. If I have any time left, I will end with the points on which both sides of the House could come to an agreement. I hope that this approach will be constructive and will help to set the tone for the work that members of this committee will do.

My first concern is that the vision of the Conservatives' bill is completely black and white. Bill C-43 is one of many Conservative bills that, as I said earlier, proposes a simple solution to a complex problem. With regard to the bill we are discussing this afternoon, there seem to be good people and bad people but very rarely good people who have given in to a moment of weakness and are not necessarily destined for a life of crime, but whom the Conservatives want to force to leave the country.

The picture before us is, once again, presented only in black and white, with almost no shades of grey. Yet it is difficult to describe reality without using all shades of grey. We simply have to think back to black and white television, for those who are my age, anyway. If there had been no shades of grey, we would not have seen much of anything. Very few things, particularly concerning immigration, correspond to this dualistic view of the world. Any search for consensus must look at solutions that take into account a broader range of shades of grey, which will allow us to consider every possible situation.

Bill C-43 also presents a risk of considerable abuse.

Let us first talk about the powers that would be granted to the minister. I must point out that this is not a question of examining the personality of the current Minister of Citizenship, Immigration and Multiculturalism, but rather of the powers that could be exercised by any individual who is in charge of that rather complex department.

Usually, in famous western movies, there are good guys and bad guys, and there is usually a sheriff to mediate the conflict. Well, in this case, it seems that the sheriff is none other than the Minister of Citizenship, Immigration and Multiculturalism. His discretionary power will increase, while the criteria used to achieve justice seem to be decreasing.

The minister would thus have the authority needed to rule on the admissibility of temporary resident applicants. That means that the minister could rule that the foreign national is inadmissible for up to 36 months, if he believes that it is in the public interest.

I will digress for a moment. First, the verb “to believe” introduces a grey area or value judgment. It is hard to imagine that the verb to believe refers to objective criteria. The belief might vary from one minister to the next. We know that cabinet shuffles, even changes in government, are legion in our democratic system.

Bill C-43 does not define public interest. What is really in the public interest and allows the minister to determine that it would be best to deport a person?

What is more, Bill C-43 takes away from the minister the responsibility, even the obligation, to examine the humanitarian circumstances of the foreign national who is deemed inadmissible for security reasons. That again is a grey area and is difficult to define.

I believe that the minister in charge of such a department must be the instance of last resort. He must rise above the fray and not be a part of the decision-making machine, and not have a penchant for ideology.

Furthermore, the bill changes the definition of what is considered to be “serious criminality”. This will be a particularly important matter to be debated in committee. What corresponds to the NDP or Conservative view of what we might term “serious criminality”, and will also garner the broadest consensus among Canadians when it is time to describe and judge what constitutes “serious criminality”?

Previously, a serious criminal was someone given a sentence of two or more years, which was the logical connection to the judge's reasoning when judging a crime. If a crime was deemed to be punishable with a sentence of two years or more, the criterion of “serious criminality” was met.

By changing this criterion from two years or more to six months or more, will judges be asked to change how they interpret the law and make their rulings? Absolutely not. It means that we are opening the door to including all sorts of crimes that, under the old law, would not have been viewed as “serious criminality” and that detractors would consider to be grounds for deportation.

We can well imagine that judges will not change their rulings and that a much larger number of cases may find their way into the new process set out by Bill C-43.

What about the right to an appeal process? It is no longer an option, even for someone given a six-month sentence for a crime that most Canadians would not consider a real threat to public safety.

For example, imagine an immigrant with an incurable illness that causes unbearable pain. He decides to seek relief by discreetly growing five or six pot plants at home. He is not selling drugs. While some parliamentarians are considering the possibility of legalizing marijuana, for just such a situation, that person could be found guilty of a serious crime and be deported to a country that he does not know well enough culturally to live in safely and soundly. He may have come to Canada as a child. Canada could be his only refuge and ours the only culture he has ever known.

Lake Protection

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, many people are perplexed by the joy the Conservatives seem to take in destroying the environment, as demonstrated by Bill C-38. For instance, in my riding of Laurentides—Labelle, the people of the municipality of Nominingue wanted to protect their lakes. They embarked on a lengthy process to change some boating regulations, which involved submitting to a long series of procedures and public consultations. These people are wondering if it still makes sense to pursue their efforts considering the elimination of the protection of wildlife habitat, or if they should simply give up and put up with the 350 horsepower engines on a lake that is only 0.85 square kilometres. Personally, I think this government could not care less. I would say that the lights are on but nobody is home.

Employment Insurance

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

Mr. Speaker, I congratulate you on your recent appointment and I thank Ms. Savoie for her good work. I can name her in the House now that she is no longer a member of Parliament.

I am pleased today to get back to an issue that is very important to Canadian workers who have lost their jobs: employment insurance. When Parliament was still hard at work many weeks ago, I asked a question to the Minister of Human Resources and Skills Development, which had to do with the funds used to continue operations of the Employment Insurance Financing Board of Canada, when millions are being cut in essential services at Service Canada.

We were in the middle of debate on the reforms to employment insurance found in Bill C-38, that Trojan Horse bill that was hiding all kinds of legislation that will have a number of negative effects on our economy, our social programs and our environment. I think that my question deserves more of an explanation than what I received as an answer. That is why I am here today.

Canadians deserve more transparency from this government. It must be accountable for its unjustified actions that affect Canadians. This is a matter that concerns me greatly. Millions of dollars in cuts have been made to Service Canada in recent years; available resources should be allocated to providing the best possible services to Canadians, who, when applying for employment insurance, are already dealing with mostly casual employees.

In the view of the NDP and of thousands of Canadians, essential services for the unemployed have become inadequate and inaccessible. Workers all across the country who lose their jobs have to wait for weeks, if not months, without seeing hide nor hair of their first benefits. It has become practically impossible to speak to someone at Service Canada about one's own file and one's own situation.

The unemployed see their bills piling up; entire families are falling into complete financial peril. How many people do we know who can go two whole months with no income and still manage to meet their needs? Are we that rich in Canada that we are able to do that? Meanwhile, Service Canada employees can no longer keep up with the demand, or are let go as a result of the draconian cuts that followed the most recent budget.

The government claims that Canadians had a choice to make: eliminate the deficit or have good public services. That choice is completely absurd. Eliminating the deficit is an excellent idea as long as it is not done at the cost of public services and on the backs of Canadians. They need the front-line services and they must not be deprived of them.

Essential services must be maintained and this government will not be fulfilling its commitment to Canadians by closing hundreds of points of service and revamping appeal procedures in order to make them even less accessible. Accessibility to EI is at an all-time low in Canada. Under the Conservatives, although all workers pay into employment insurance, only 37% of them have access to it when they need it.

In conclusion, the government has put in place rules that are so strict that less than one in four people will henceforth qualify for the program. Let us also recall that the government has not contributed to the employment insurance fund since 1990. The contributors to the fund are people without jobs, people with jobs and employers.

Opposition Motion—The Canadian Economy

[Steven Fletcher, Conservative, Minister of State (Transport)]

Mr. Speaker, I listened to the member intently. Having visited his riding several times, including last summer, I want to say that it is a beautiful riding with wonderful people.

However, the NDP policies do not seem to be consistent with the desire of the people of the north. For example, on the gun registry, the member for the Northwest Territories voted against that. We had action through Bill C-38 to increase the ability for environmentally-friendly development at a fast rate. Again, it was something that would be great for the people of the north, but the member voted against it.

Everything we have done as a government is wonderful for the north, but the people across the way just want to make the north a big national park for the Americans.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I will be sharing my time with the member for Vancouver Centre.

I am delighted to have the chance to discuss this motion, which at its core is about the need for all levels of government to work together to build a balanced 21st century economy. That certainly is something the Liberal Party supports.

First, I have to say it is sad to have to beg a Canadian prime minister to participate in an economic summit with the premiers of the Council of the Federation. It is untenable in a federation to have a prime minister who refuses to attend important meetings with the premiers of the provinces and the territorial leaders. Instead, the Prime Minister prefers to act unilaterally, dictating a new health accord and ramming through costly and harmful crime bills without consulting the provinces and territories, the very entities that will be bearing huge financial costs for these decisions. This is not the way to build a united country or balanced economy. In fact, it is a betrayal of our federation's democratic principles.

Second, I cannot help but find this motion which urges politicians to work together across various regions to be a little hypocritical coming from the leader of a party whose signature economic policy at the outset of his leadership was to pit one region of the country against another. In fact, just a few months ago when the western premiers voiced their concerns about the NDP leader's divisive approach to the Canadian economy, the leader called them the Prime Minister's “messengers” and said, “I'm not responding to any of them”. How can the NDP expect a positive response from the Prime Minister to meet with those very same premiers when its own leader says they are not worth talking to?

If we are going to talk seriously about building a 21st century economy, then Canada needs a responsible government that truly stands for fiscal responsibility, equality of opportunity, and a sustainable environment. Canada needs a party that can establish a track record of sound fiscal management. On that count the current government is failing miserably.

In fact, when the Liberal Party came to office in 1993, a previous Conservative government handed us the largest deficit in Canadian history. Members will remember papers like The Wall Street Journal openly wondering if Canada was becoming a third world banana republic. Economists were writing that Canada was going bankrupt.

The Liberal Party went to work on behalf of Canadians and succeeded. It turned that deficit into a surplus. It grew the economy. It created good jobs across the country. During difficult economic times, the Liberal Party balanced the federal budget, reduced federal debt every year, and produced surplus after surplus after surplus. It reduced the size of government without stifling creativity of the nation or demonizing our civil service. The Liberal Party turned Canada into a globally envied model of fiscal discipline. It did all this while investing in a sustainable future for Canadians and their environment. I am proud to say that I was part of a B.C. Liberal government that succeeded in a very parallel turnaround in British Columbia a decade ago.

However, since 2006, what have the Conservatives done? They turned a $14 billion Liberal surplus into the largest deficit in Canadian history. They took a trade surplus of $26 billion and turned it into a trade deficit of $50 billion. This string of deficits started before the global economic crunch, and let no one claim otherwise. The government spent Canada into a deficit before the recession. To say the Prime Minister's economic record is shoddy is an understatement. He continues to disappoint. Gas prices are rising. Groceries bills are rising. Household bills are going up. Family incomes are not keeping pace. The divide between the haves and the have nots is growing larger and larger. In my city of Vancouver and across the country, more and more Canadians are falling behind.

Young people are struggling to find jobs. As an example of that, this summer I hosted a meeting about prospective youth entrepreneurs. A flood of people came out on a sunny summer evening. They were desperate to get some ideas and encouragement to start their own businesses because they were having trouble finding jobs. These are university graduates, intelligent young people who cannot find work because of the economy which is languishing under this government.

In British Columbia, we have a gorgeous natural heritage and tourism is very important. There are thousands of tourism jobs, especially on our coast and throughout British Columbia. The country's top tourism resort is located on the north Pacific coast actually, near Hartley Bay.

The Liberals have committed for 40 years to protect the waters around Haida Gwaii from risks of a massive job-killing oil spill, but the Conservative government has demonized the very people who are concerned about this risk. Citizens, environmental groups, and first nations who wanted to express concern were demonized. When that did not work, the government, in Bill C-38 , took pen in hand, and I believe on the back of an envelope wiped out the very heart of our environmental assessment legislation to remove the requirement to assess the risk to salmon streams of pipelines going across the heart of British Columbia's wilderness. That is not acceptable. Tourism is incredibly important to our economy and to job creation. The Conservative government is failing the tourism industry.

Last year, the Canadian tourism sector generated $78 billion worth of economic activity and its share of the country's GDP was larger than that of agriculture, forestry and fishing combined. Tourism is responsible for the creation of 600,000 direct jobs and 1.6 million indirect jobs across Canada. That is close to 10% of all jobs in Canada. What is more, tourism's slice of the pie is getting bigger every year.

Despite all that, Canada's share of the global tourism market is shrinking. From 2002 to 2011, most countries welcomed higher numbers of tourists. Not Canada. Over the past decade, Canada fell from seventh to eighteenth on the list of top tourist destinations. The government is entirely responsible for this decline.

Other countries invest heavily in tourism promotion. For example, the United States recently allocated an additional $200 million to fund new tourism promotion initiatives. Not Canada. Canada has cut funding for tourism promotion dramatically.

Given our rich natural and cultural heritage and the unique experiences that tourists can have here, the government should take tourism seriously.

What the government has done instead is it has wiped out enough of the budget of the national parks system so that not only are scientists being laid off, but parks are closing for parts of the season when normally they would be open. What that does is it hurts small businesses, stores, restaurants and tourist services that depend on those national parks. Small businesses are incredibly important to our economy and to job creation.

The Conservative government is failing our small businesses. It failed small businesses when it cut funding from the regional programs that support them. It failed them when it increased EI payroll taxes for businesses. It failed them because it has not changed the small business tax rate even though it has slashed the large corporate tax rate from 22% to 15% since coming into office.

I guess we can see why the Prime Minister has been avoiding the premiers.

With the right leadership, the right choices, and the right ambition, Canada's economy can thrive in the future. We must do better for our remote and northern areas, for our first nations people, for all Canadians. We need to transition to a truly sustainable 21st century economy in all aspects of that word: the people, the businesses, the environment, the economic opportunities. We can do that.

I hope that in November the Prime Minister will hop on a plane to Halifax and sit down with Canada's premiers and start working together. We have all waited long enough.

Opposition Motion—Canadian Economy

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

Mr. Speaker, I hope that the member will pay closer attention to the speech I am about to give than he did to the question I just asked him. I will be sharing my time with the member for Hull—Aylmer.

The motion has already been read in the House. We are asking the Prime Minister to show some leadership for once and meet with the premiers who are members of the Council of the Federation during a conference to be held this November in Halifax about how to address the economic uncertainty that Canada is still experiencing. Such proof of leadership is critical given that, contrary to what the government would have us believe, there has been very little communication between the federal government and the provinces and territories concerning economic issues.

The government can talk about individual meetings all it wants, but some issues need to be discussed and explored in depth by all of the regions together. Unfortunately, despite the promises it made in the past, the Conservative government has done nothing to make this happen. We think that this is critical to raising awareness of the flaws in the Conservatives' economic policy regardless of all of the claims they have made so far today and will likely continue to make for the rest of the day.

At the end of the day, the Conservatives did nothing and brag about being responsible for getting Canada through the last recession—even though things are still uncertain now—and for getting Canada through this period relatively unscathed in comparison to the global economy.

But according to most economists and analysts, this is not because of the policies they are implementing, but simply because of Canada's existing financial, economic and banking structures.

Before I continue, I will give some examples of bad Conservative economic policies, policies that represent opportunities the Canadian economy could have had if the right decisions had been made. I will start with their arrival to power in 2006. Members will recall that we had a budget surplus. During their first mandate, the Conservatives decided to reduce the GST by 2%. This was a political and economic move that they bragged about, even though economists said that it was probably the worst way to stimulate the economy. They did it. Since 2006, this has represented a dead loss for the Canadian treasury of between $8 billion and $10 billion a year, so nearly $60 billion overall.

But the Conservatives chose the worst way to invest this $13 billion surplus to best stimulate the Canadian economy. That is what economists told them. That is what we told them. And that is what everyone who knows a thing or two about economics told them.

I mentioned in one of my questions that for every dollar lost in GST revenue, the Department of Finance and most people who study the multiplier effect of such decisions are clear: only 30¢ is put back into the economy. This means that economic growth represents only 30¢ on the dollar of what we lose in revenue.

If the Conservatives truly wanted to effectively stimulate jobs, if they wanted to go in this direction by eliminating the surplus, they could have made other decisions. They could have invested in infrastructure. Canada has an infrastructure deficit of about $130 billion. If they had taken every surplus dollar and invested it in Canadian infrastructure, every dollar would have brought in $1.50 in economic growth. That would put us in the black.

If they had wanted to invest in housing, the return would have been $1.50 for each dollar invested in housing infrastructure. If they had wanted to take measures intended directly for the disadvantaged and the unemployed, the return would have been even better still: for each dollar invested in these measures for the least fortunate, the unemployed and the most disadvantaged people, $1.70 in economic growth would have been generated.

By lowering the GST, the government generated economic growth of 30¢ for each dollar lost. In addition, in terms of revenue from the tax on company profits, the economic growth is also 30¢ for each dollar eliminated or lost.

So the choices the Conservatives made are economic. They tried to justify them but, at the end of the day, instead of investing the $13 billion surplus in paying down the debt, they could have made better choices that would have done more for the Canadian economy.

The government's choices were not made in consultation with the provinces, even though this government and the members who have spoken so far are talking about great communication. It is a unilateral gesture.

I was talking about the $13 billion surplus that had been eliminated in a year and a half because the GST was lowered by two percentage points, among other things. We were in a deficit situation even before the recession, even before the economic stimulus packages. This government claims to be the appropriate manager of public finances. But it must realize that, aside from that period of a year and a half when this government had a budget surplus that it inherited when it was elected and that it changed into a deficit, we still have a deficit. We are celebrating a very important anniversary in 2012. It is the 100th anniversary of a balanced federal Conservative budget, because the last balanced budget under the Conservatives, before the one they inherited in 2006, was in 1912. Do you know who the prime minister was then? Robert Borden.

I know that the Conservatives really enjoy talking about the NDP's economic performance. If we look at the Department of Finance's own figures in the performance analysis of the federal and provincial governments in terms of balanced budgets and proper management of public funds, we can see that all the NDP provincial governments have the best performance economically, as well as in fiscal management and balanced budgets. They are far ahead of the Conservative and Liberal governments. It has been so since 1982 or 1987, depending on which year you choose as a reference.

Once again, in terms of sound management of public funds, the Conservative government has nothing to teach us and we have nothing to learn from it.

We also have to realize that what the Conservatives are doing—once again, generally without consulting the provinces and using a completely one-sided approach—is an impediment to the country's potential growth. I am talking about the restraint measures during this period, among other things. Let me refer you to the last budget and probably the upcoming budget, if we rely on the rumours going around. The Conservative government has started to promote its restraint measures and to talk about cutting 20,000 jobs in the public service, as well as cutting the budget of various departments by 5% to 10%.

Once again, we are talking about general cuts of 5% to 10% at all levels and no notice is being taken of whether we are cutting the fat, as the Conservatives are fond of saying, or whether we are cutting into the bone. I can tell you that, in plenty of departments, many of the austerity measures implemented—the budget cuts—were cuts into the bone. The Conservatives do not care. They are applying the 5% to 10% cuts to everyone, regardless of the impact it will have.

The Conservative government's austerity measures have been criticized by this side of the House, of course, but also by rating agencies. Fitch and Moody's condemned the austerity measures and warned the government not to go too far because austerity measures are dangerous in times of economic uncertainty, such as those we are still facing in Canada. However, the Conservatives turns a deaf ear to all the economic wisdom that is shared with them. We on this side of the House are not surprised. The government refuses to listen to anything we say. We saw this before with the budget consultations and in the different stages of Bill C-38, the mammoth bill. The fact that the Conservatives are turning a deaf ear to wise advice such as that provided by Fitch and Moody's is completely irresponsible.

I would like to end by talking once again about the lack of leadership and communication with regard to employment insurance. The measures proposed in Bill C-38 are there to address a local labour shortage problem that is affecting western Canada and other areas. We agree on that. We are waiting for the minister to provide administrative regulations for employment insurance. The implementation of a Canada-wide employment insurance reform with all these measure that have a negative impact on regions such as eastern Quebec demonstrates a blatant lack of vision for the different economic realities of the specific regions. Although it is becoming more economically diverse, my riding of Rimouski-Neigette—Témiscouata—Les Basques, like those of the Atlantic provinces and others, still depends on seasonal work, whether it is in the forestry, fishing, agricultural or tourism sectors. The Conservative are blind. I will tell you who opposed this reform: most of the provincial premiers, including those of the Atlantic provinces.

For us, it is essential that the government choose the path of co-operation, of working together with the provinces, and that is why we are moving this motion calling on the Prime Minister to attend the economic summit being held by the Council of the Federation in November.

[Thomas Mulcair, NDP, Outremont, QC]

Mr. Speaker, I would like to thank my colleague for her question and for zeroing in on the aspect of Bill C-38 that was the gutting of our environmental legislation.

Let us take one concrete example. Going back to 2009, there was a piece of legislation that was a world model. It was 100 years old: the Navigable Waters Protection Act. I remember the night. I was in a parliamentary committee here in Ottawa. We had canoeing and outdoors groups from all over the Ottawa and Gatineau region coming to the parliamentary committee.

They watched, gobsmacked, as the Conservatives, which was less of a surprise, with the culpable complicity of the Liberal Party voted to gut the Navigable Waters Protection Act. That is the record of the Liberals on the environment. This year they are completing the work.

We know the budget bill that we saw in the spring went after that legislation again. I remember the so-called Minister of the Environment, today in foreign affairs, saying that it was the greatest job killer. Imagine that, saying that a piece of legislation that has protected navigable waters in Canada for over a century, a model for the world, was a job killer. That is the Conservative vision.

They do not understand that in the 21st century, economic growth, protection of the environment and social responsibility all have to go together.