Bill C-38 (Historical)

Jobs, Growth and Long-term Prosperity Act

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

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

Jobs, Growth and Long-term Prosperity Act

[The Acting Speaker, Bruce Stanton]

Before I invite the hon. member Burnaby—Douglas to resume debate, I will let him know he will have about two and a half minutes, and then I will need to interrupt him.

The hon. member for Burnaby—Douglas.

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I am here to speak today about Bill C-38, the budget implementation act. This enormous omnibus bill is a disservice to the House and to Canadians.

Many parts of this huge bill are of concern to my constituents, but one in particular is of concern to them. It is with regard to the changes to the environmental assessment process. To refresh everyone's memory, the Kinder Morgan company currently owns and operates an oil pipeline that transports 300,000 barrels of oil per day between Edmonton and Burnaby. Most of my constituents tolerate this existing pipeline. It supplies oil and gasoline to metro Vancouver and keeps the local refinery in business. They tolerate it because they are not hypocrites; they use oil and support the local supply chain.

However, Kinder Morgan has just formally produced a new proposal to build a new heavy crude oil pipeline to transport 550,000 barrels per day along the existing pipeline route. This will not serve the local population. This will ship oil in raw form by tanker to foreign countries, bring almost 400 new giant oil supertankers to the Burrard Inlet and require massive dredging beneath the Second Narrows Bridge.

It will build a new pipeline along the existing route, which runs through extremely densely populated areas, including Burnaby, Port Moody, Coquitlam, Surrey, Langley, Abbotsford, Kamloops and many other urban centres.

I have walked this route, and much of it goes by shopping malls, housing co-ops, public parks, schools, modest homes and million-dollar mansions. There is a 30-metre right of way required by the National Energy Board, and a 60-metre safety zone. Members can picture a trench as wide as a highway going through many of these urban centres.

More worryingly, the National Energy Board can expropriate lands, and many people in my riding are fearful that they are going to be forced from their homes, schools and community amenities. In fact, the uncertainty surrounding this proposal is already causing property values to drop along this line. These concerns are real. Thousands of local residents oppose this pipeline, and they have contacted me to discuss these changes.

If we turn to the proposals in this giant budget bill, we see that the changes to the Environmental Assessment Act mean that there may not even be public consultation under this act. It is up to the discretion of the minister. Even if there is consultation, it would be limited to 24 months, and then, after the consultation, the minister could simply ignore it.

I urge the government to clarify what its intentions are with specific reference to the Kinder Morgan proposal and I ask it to withdraw it and debate it on a separate occasion.

[The Acting Speaker, Bruce Stanton]

The hon. member for Burnaby—Douglas will have seven minutes remaining for his speech when the House next debates this bill and, of course, the usual five minutes for questions and comments.

The House resumed from May 7 consideration of the motion that Bill C-38, An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, be read the second time and referred to a committee, and of the amendment.

[Jim Hillyer, Conservative, Lethbridge, AB]

Madam Speaker, I support the 2012 budget.

I wholeheartedly support the 2012 budget because it is good for Canada and good for southern Alberta.

The budget was not simply handed down from on high. The opposition and left-wing media do not know what to make of our government, diverse in its membership and truly national in its character. They have never seen such a strong, united party. They cannot understand it.

Since they do not believe that a free group of people can willingly co-operate and believe that people must be told what to do, they assume the only way we could be so united is by means of a heavy-handed leadership. However, Conservatives are united because we believe in what we are doing.

We blindly support the budget because together we helped to develop it, and we did this by counselling with the constituents in our respective ridings because we know who put us in our seats. We know who we represent.

The overwhelming message that I received from my constituents throughout the year was, “Keep on keeping on. Your plan is working. Continue to keep taxes low. Continue to reduce redundant red tape. Continue to facilitate trade among the provinces and continue to open up new markets around the world”.

They understood the need for the economic stimulus provided in past budgets, but they also understand that the global economic crisis that still rages in the world today is in fact a debt crisis, and that no one can spend their way out of a debt crisis.

They support our commitment to eliminate the deficit and balance the budget over the medium term. They support our commitment to maintain our vital and cherished social programs and government services and they know that we can do this and still cut government spending. When it comes time to make cuts, the overwhelming message I have been hearing is to reduce government waste.

One good thing about the NDP becoming the official opposition is that it more clearly draws the line in the sand and more clearly defines to Canadians their options in getting to where we want to go.

Conservatives trust the people. We believe that Canadians are generally good, kind-hearted, hard-working, industrious and smart, while the socialist NDP believes that people left to their own devices cannot be trusted. NDP members believe people cannot be trusted to do the right thing, to take care of the poor and needy, to figure out a way to make a living, and they believe that people who do figure it out should be punished for their ingenuity and have the fruits of their labour taxed away. They believe the only people who can be trusted are the people who make up a socialist government. These people must go through some supernatural change, because somehow they become magically pure-hearted and unselfish and, of course, smarter than the collective wisdom of the people working together.

The underlying message of the budget is that we trust Canadians. We trust them, so we listen to them. We trust them, so we let them keep their own money and decide for themselves how to spend it. We trust them, so we cut back on unnecessary overregulation, open up trade with other countries around the world and create a business-friendly environment to unleash the power of Canadian entrepreneurs, who will continue to create wealth and opportunities and increase prosperity for all their fellow Canadians.

Of course, some people have criticized some of the spending reductions; every voice matters, but just because a person or group of people speaks loudly or more often does not mean they speak for all Canadians.

A lot of the complaints come from people who expect to be exempt from the government-wide modest budgetary constraints or expect to maintain more than their fair share of the public pie. It would be nice to have a budget that provides everything for everyone. Socialism promises everyone a loaf of bread, but soon no one has any bread, because the bakers are standing in line for their free loaves.

The Conservative government, along with most Canadians, understands the inescapable truth that everything eventually must be paid for. We cannot get something for nothing. It does not matter how hungry we get or how unfair it seems; if we do not plant potatoes, potatoes will not grow.

Let me turn to some third party comments about the budget. In the National Post, David Frum said this:

Under Stephen Harper, Canada can fairly claim to be the best-governed country among advanced democracies in the world. [This year's] federal budget locks up Canada's lead.

[The Deputy Speaker, Denise Savoie]

Order, please. I would remind the hon. member that it is not permitted to name sitting members in the House, even in a quote.

[Jim Hillyer, Conservative, Lethbridge, AB]

Madam Speaker, referring to our Prime Minister and his budget, he says:

[His] budgeting is impeccable in its caution. By 2015-2016, Canada will have reduced both spending and debt to pre-recession levels. Nobody else on earth will be able to say anything like that.

The key in balancing the budget is, well, balance. When the crisis hit, the task was to provide just the right amount of economic stimulus: enough to keep the economy going, but not so much that the country's economic crisis slipped into the debt crisis that plagues the eurozone. Now the trick is to reduce the deficit, but at a rate that will not plunge the economy back into recession. This second task is especially tricky because it requires not only sound judgment but something even rarer in politics: discipline.

There is a famous experiment in which kindergarten kids are presented with a marshmallow. They can eat it right away, but if they wait just 10 minutes, they can have two marshmallows. It is amazing how many kindergarten kids are able to recognize the principle of restraint, the principle that making a small sacrifice now for a big payout later makes sense. The opposition does not seem to share that sense of foresight.

There is no avoiding the fact that if difficult decisions are not made now, even more difficult decisions will be unavoidable later, or, more accurately, they will not be decisions but inescapable consequences, and they will not just be difficult, they will be devastating.

During the several pre-budget consultations I held across my riding, the general consensus was support for this disciplined and balanced approach to managing the country's economy. People also believed that the majority of the deficit reduction savings could and should be found by eliminating waste, duplication and inefficiencies in virtually all government programs.

I am happy to say that 70% of the expected savings come from eliminating government waste, and it is not all cuts. My constituents, along with the majority of Canadians, said that we should invest in economic growth and job creation, research and innovation, infrastructure and development, education and skills. Our budget places a strong emphasis on all of these areas.

Some of our opponents criticize us for focusing so much on the economy. They say that all we care about is money, but then they follow up with a demand that we take somebody else's money to fund their favourite project.

Members may ask why the economy is our priority. It is for two main reasons: first, it is the priority of the vast majority of Canadians. It is their priority for the second reason, which is that in this day and age, things cost money.

We all love our health care system. We love our education system and our roads, libraries and parks. We want to support our veterans, seniors and those who stand in need. We want to live in safe communities and in a safe world. That is why, since we were first elected in 2006, our government has been focused on creating jobs and economic growth. That is why ultimately our goal is to ensure long-term prosperity for all Canadians.

As the Minister of Finance said:

We see a Canada, whose wealth, while immense, will be measured ultimately in the greater happiness and security of its people.

This is a good budget. Because of it and because of our budgets that have preceded it, we can see in the distance every reason to hope. We see young Canadians confident in their future, retired Canadians secure in their senior years, aboriginal Canadians realizing their vast potential and new Canadians strengthening our country as they have done in every generation. We see every region of the country more prosperous than ever in our history. We see Canadian businesses and universities coming up with things that no one has thought of before, leading to new opportunities and a better life for Canadians and for people all around the world. We see Canada for what it is and what it can be: a great, good nation on top of the world, the true north strong and free.

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

Madam Speaker, since the member's speech talked about jobs and how the Conservative proposals are creating more jobs and better prosperity, I would like him to tell me why we have a record number of temporary foreign workers in Canada today.

There are over 300,000 people who have been brought to Canada, many of whom are working in very low-wage jobs in the service sector. One-fifth are in the city of Toronto, which has an unemployment rate of over 8%, and now his government is proposing that they can be paid 15% less than other Canadians. How can undermining Canadian jobs and pay levels be good for Canadian workers?

[Jim Hillyer, Conservative, Lethbridge, AB]

Madam Speaker, the reason there is a record number of foreign workers coming into the country is because there is a record number of available jobs.

My colleague referred to the 15% below average of what Canadians are receiving. That is not true. Foreign workers can only receive 15% lower than the average if other Canadians are receiving 15% lower than the average. A lot of people who work 20 or 25 years make a lot more throughout those years of work than someone who is starting out. That changes the average salary. As a result of market conditions, if the majority of Canadians are receiving 15% less than the average wages, then immigrants can receive that as well so that they are not paid more than Canadian workers.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, I take exception to the member's comments in different ways.

The Government of Canada has done nothing to preserve aerospace jobs in Quebec, Manitoba and Ontario. When Air Canada was in clear violation of the act, the government did nothing to protect those important aviation jobs. The Government of Canada had a choice. It could have taken Air Canada to court in order to preserve those jobs, something that it should have done but chose not to do. Thousands of jobs have been lost. That is one issue that I take exception with when the government talks about jobs.

The second issue is in regard to why the government bundled so much legislation in an attempt to sneak it through the back door by using it in a budget debate. You, in essence, have three years--

[The Deputy Speaker, Denise Savoie]

Order, please. I would remind hon. members to address their comments through the Chair.

[Jim Hillyer, Conservative, Lethbridge, AB]

Madam Speaker, when the Liberals were in government they voted to send those jobs from the member's province to Quebec.

We believe in the free market system. The markets will go where business is best. We will do all we can to generate thriving conditions in all the provinces with the support of the provinces and the Canadian people.

[Mike Wallace, Conservative, Burlington, ON]

Madam Speaker, based on where my colleague's riding is located, could he tell us the importance of Canada's energy supplies as a trading country to the long-term prosperity of Canada?

[Jim Hillyer, Conservative, Lethbridge, AB]

Madam Speaker, the energy sector is not just important for Alberta, as important as it is for Alberta, but it is important for all of Canada. We need to do all that we can to support this industry, and not just support it within Canada but support different ways to export our energy to countries that need it. We need to do all that we can to prevent anything from blocking the way in a safe and responsible manner.

Whether or not we like the energy sector, we all need clean air and clean water, and we understand that fact.

[Marie-Claude Morin, NDP, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, first, I would like to say that I am pleased to rise in the House this morning to support the motion of the hon. member for Parkdale—High Park, whom I would like to commend for this motion and for the clear-headed manner in which she has faced the challenges we have encountered since the tabling of this budget.

Obviously, the purpose of Bill C-38 is to implement budget 2012; however, it goes much further than the budget itself. The bill contains not only the measures described in the budget but also many changes that were never announced before. Personally, this does not really surprise me.

The biggest problem is that this bill introduces a series of measures that are not part of the election promises made by the current government and that will decrease the transparency and increase the secrecy of the government. This government is not a very good example of transparency. It has demonstrated that much over the past year, and things are only going to get worse over the next three years.

This bill contains measures that decrease the Auditor General's authority. Must I remind the House that the Auditor General is an independent and reliable source of objective, factual and, above all, non-partisan information that Parliament greatly needs to oversee government spending and activities?

Finally, any decrease in the Auditor General's powers will reduce Parliament's ability to provide oversight and hold the government to account, as mandated by all Quebeckers and Canadians. In my opinion, this is a very serious attack. The Auditor General ensures that public money is spent properly. We really have a problem with this. I just cannot understand how the government can assume this power. It is completely beyond me.

The 2012 budget makes ill-advised cuts to services on which a large number of Canadians are very dependent. Yes, I am referring to the old age security program, health care, provincial transfers, environmental assessments, and many other matters.

As I was saying earlier, yesterday, my colleague from Parkdale—High Park, seconded by my colleague from Rimouski-Neigette—Témiscouata—Les Basques, moved an amendment to the motion. The amendment clearly explains why the House cannot support the 2012 budget implementation bill.

The House cannot support the bill at second reading stage for various reasons. First, this bill considerably weakens the confidence Canadians have in the work of Parliament. I think that is very serious. I think that in the past year, that confidence has been undermined, and it will only diminish further. Now we know why people are cynical about politics and why young people no longer vote.

Second, the bill decreases transparency and erodes fundamental democratic institutions by systematically over-concentrating power in the hands of ministers and the government, which is not good.

Third, it shields the government from criticism about extremely controversial non-budgetary issues by bundling all those issues into an omnibus bill masquerading as a budget bill. It is hard to know where this will end.

Fourth, it also undermines the critical role played by such trusted oversight bodies as the Auditor General of Canada, the CSIS Inspector General and the National Energy Board.

Fifth, it silences institutional checks and balances to the government's ideological agenda.

Finally, something we have been talking about at length and must continue talking about in order to keep the public aware of the situation is that this budget raises the eligibility age for old age security and the guaranteed income supplement from 65 to 67. I do not understand this reckless approach to balancing the budget. A number of experts have said that the money is there, and they have the numbers to back their claims. The easy excuse is that the baby boomers are leaving the workforce, which means more people are retiring, but we have known that since the 1980s. We saw that coming and we are prepared for it.

This budget also includes provisions to gut the federal environmental assessment regime and to overhaul fish habitat protection, for instance, in a way that will adversely affect fragile ecosystems and Canada’s environmental sustainability for generations to come.

When I hear the Conservatives talking about the future, I do not understand. They are talking about the future, yet they are jeopardizing the health of Canadians and abandoning environmental measures. This makes no sense. This budget also calls into question Canada’s food inspection system and public health regime by removing critical oversight powers of the Auditor General, who works in conjunction with the Canadian Food Inspection Agency.

This paves the way for opportunities to privatize a number of essential inspection functions. This will mean, on the one hand, that wealthy people will have the means to eat well and have their food inspected in order to avoid illness, while on the other hand, poor people will not be able to afford decent food and have it inspected. This is just one more aspect of this bill that is completely unacceptable.

Nor does this budget include measures to help the growing number of unemployed workers in Canada. The budget talks about job creation, but when I read the bill, I saw nothing about job creation. All I saw was job cuts. There is a disconnect between those cuts and the talk of job creation. The main thrust of this bill was not mentioned in the budget that the government tabled on March 29.

Throughout this 421-page bill, the government is trying to introduce new measures under the guise of budget implementation. Quebeckers and Canadians will not stand for that. Bill C-38 proves once again that Quebeckers and Canadians cannot trust the government. It proves once again that the government does not care about what Canadians need.

The government knows that its bill is unacceptable. That is why it has invoked closure once again. Unfortunately, this strategy is turning into a tradition in this Parliament. Still, we are starting to get used to it. It undermines the work of the House, where MPs have an important responsibility to debate bills. Once again, it proves that this government lacks transparency.

I could spend an entire day talking about this completely irresponsible bill, but Quebeckers and Canadians are much more intelligent than the government seems to think. I will now talk about the effects that this bill will have on my riding of Saint-Hyacinthe—Bagot, a very rural riding located close to Montreal, Quebec.

First, the attacks on the environment affect all ridings, obviously. At least a third of this bill is dedicated to environmental deregulation. The government is implementing all the measures that it announced, but it is also introducing new measures that it did not announce. Clearly, Canada's withdrawal from the Kyoto protocol is of great concern to my constituents and to all Canadians since it will result in a great deal of deregulation. I cannot emphasize this enough: this is yet another example of this government's lack of transparency when it comes to environmental assessments.

The executive director and senior counsel at West Coast Environmental Law said that, by gutting Canada’s long-standing environmental laws, the budget bill gives oil and gas companies exactly what they have been asking for—fewer environmental safeguards so they can push through resource megaprojects.

I am out of time. Nevertheless, I think I said everything I wanted to say even though, as I said before, I could talk about this bill all day.

I would be happy to answer any questions.