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

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, I am pleased to rise in the House today in support of Bill C-38 and to explain the necessary changes to the old age security program.

I appreciate as well the opportunity to stand in the House against the NDP and the opposition's tired tactics of delaying, which only serve to threaten Canadian jobs, growth and long-term prosperity.

The changes proposed to the OAS program in Bill C-38 would secure the retirement benefits of future generations, making the program sustainable for the long term.

When these changes were first announced in economic action plan 2012, the Calgary Herald recognized the importance of these measures as part of our government's broader plan to protect Canada's fiscal future, saying:

It's a budget item that seems both responsible fiscally.... The firm-but-reasonable OAS strategy is in fact representative of the budget's overall tone.... Canada has shown great economic strength relative to world powers in Europe and the Americas since the fall of 2008, and continued leadership on that front is important.

The numbers tell us that we have to confront our fiscal and demographic realities to serve the best interests of all Canadians, both now and into the future.

The recent census confirmed that Canada has more seniors than ever before. My riding of Bruce—Grey—Owen Sound has one of the larger concentrations of seniors, and it is going to continue to grow as a retirement area.

The population of Canadian seniors is expected to keep growing in the coming years. By 2030, less than 20 years from now, almost one in four Canadians will be 65 years of age or older, compared to one in seven today. The number of OAS recipients is expected to almost double over the next 20 years, from about 4.9 million in 2011 to 9.3 million by 2030, when the last of the baby boomers reaches 65.

The annual cost of the old age security program is projected to increase from approximately $38 billion in 2011 to over $108 billion in 2030. OAS is the largest single social program of the Government of Canada, and it is 100% funded by tax revenues. Today 13¢ of every federal tax dollar is spent on old age security. If no changes are made, in about 20 years that will grow to 21¢, or one-fifth of all federal tax dollars spent.

At the same time, Canadians are living longer and healthier lives. With the growing number of seniors who will be collecting OAS for longer periods of time, the total cost of benefits will become increasingly difficult to afford for tomorrow's workers and taxpayers.

We cannot stand idly by. We will not stand idly by. We cannot allow the old age security program to continue on its current path. That is why we are taking action: because we want to ensure that future generations have an OAS program they can count on in their older years.

Before I talk about the proposed changes, it is important to clarify that those seniors who currently receive OAS will not lose a cent and will not be affected.

The most important change we are proposing is to increase the eligibility age for the OAS pension and GIS from 65 to 67 by 2029, with a gradual increase starting on April 1, 2023. In essence, it will be phased in over six years.

We are giving advance notification and a long phase-in period to allow Canadians ample time to adapt their retirement income plans and to smooth the transition to the new age of eligibility. We think our phased-in approach is both fair and reasonable.

Two other changes to the OAS are being proposed: proactive enrolment and voluntary deferral.

Starting in 2013, we plan to begin proactive enrolment of OAS benefits to eliminate the need for some eligible seniors to apply for their OAS pension and the GIS. This measure will be implemented over a four-year period and will reduce the application burden on many seniors as well as the government's administrative costs.

On July 1, 2013, we also plan to allow for a voluntary deferral of the OAS pension. This would let people delay receiving their OAS pension by up to five years, up to age 70, in exchange for an enhanced monthly pension, similar to what is happening in CPP.

This new measure will provide people with more flexibility as they plan their transition from work to retirement. Not only will it increase flexibility for older workers, but the option to defer has also been welcomed by small business owners across the country.

Ben Brunnen, chief economist with the Calgary Chamber of Commerce, has been clear that this represents a win for Canadian business by saying:

The OAS changes help remove disincentives and create choice for older workers to stay in the workforce, which can have a big impact on the labour market—especially for a smaller company.

Let me return to the age of eligibility and be absolutely clear about the timeline: current OAS pensioners will not be affected by this change, nor will people who are close to the current OAS age of eligibility. People aged 54 or older as of March 31, 2012—in other words, those born on or before March 31, 1958—would be eligible to apply for the OAS pension and the GIS at the age of 65.

We will ensure that certain federal income support programs that end at age 65 are aligned with changes to the OAS program. This would include programs for veterans and low-income first nation seniors on reserve. This will ensure that individuals receiving benefits from these programs would not face a gap in income at ages 65 and 66.

We will also consider the situation of people between 65 and 67 who receive disability or survivor benefits from the Canada pension plan. These benefits typically stop or are reduced at age 65, when the recipient becomes eligible for old age security. This will be discussed with the ministers of finance of the provinces and territories, who are joint stewards of the CPP, during the next regular review of the program.

Our government has been clear that the proposed changes would not affect the Canada pension plan, as the CPP and OAS are two separate programs. The Chief Actuary has confirmed that CPP is financially sound and fully sustainable for generations to come.

The OAS program cannot continue in its present form. Once again, as we have said, it is becoming unaffordable and needs to reflect demographic realities, and that is why we are changing it now. If we refuse to acknowledge these realities and simply sit back and do nothing, the OAS program would become unsustainable, as it would if the opposition parties had their way.

Conservatives are convinced that the only just and practical way to relieve the cost pressures on OAS is to increase the age of eligibility. As the Government of Canada, it is our obligation to make responsible and prudent decisions for Canadians of all ages over the coming decades. Not only is it our obligation to make responsible and prudent decisions, some of them tough decisions, but we are up to the task. Through our actions, that is exactly what we are doing.

Back when OAS was first put in place, the average age of a male was 67 to 68 years old and the average age of a female was 69 to 71 years old, depending upon which figures one looked at. However, today those ages are 80 and 83. We are living longer, and that is a good thing, but programs like this need to be looked at and changed from time to time.

Many countries in the world have already made these changes or are looking at making these changes. I think it is high time that Canada did the same thing. This policy would put us in good shape for seniors down the road. My sons, when it is their time, will have a healthy OAS there for them.

However, if we do not deal with it, I fear they will be looking at something that is reduced or gone altogether.

I will leave it at that. I look forward to any questions.

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

Madam Speaker, I was saying that what we are facing here is not simply a budget bill. What we are facing here is a double-sided telephone directory of items and issues that go way beyond the budget. Not only that, but as a parliamentarian, I and many of my colleagues feel that we have been denied the opportunity to debate this so-called telephone directory of a bill, Bill C-38, in any meaningful way.

Members on all sides of the House were elected to come here. We run to be MPs because we believe in parliamentary democracy. The role of government in a parliamentary democracy is to propose, and the role of the opposition is to hold the government accountable, as it is for some of the MPs sitting on the other side, as well. There is nothing stopping them from getting up to ask questions if they need clarification.

In a parliamentary democracy, we do not have a dictatorship, we do not have a republic, we do not have the power to veto. Therefore, it behooves even majority governments to allow the parliamentary process to play out, because only then can the people of Canada have full confidence in the workings of this House.

The Conservatives are not used to having a majority. I have been hoping they would learn that they do not have to use time allocation, that they do not always have to smack the opposition on the side of the head and say that we are not going to be given time to debate. I was hoping that after they had used time allocation a few times it would have occurred to them that they do not have to do that. They have a majority. They could let the debate take place and let the Canadian public see what they are trying to do.

They say they have so much pride in what is in the bill. If they have so much pride in this thick document, they should be willing for us to have those discussions right here in this Parliament.

I heard a colleague say that we have had three months. There has not been three months of debate on this bill in this House. If there has been, it must have happened in a different reality in which only the government lives, because it certainly has not happened on this side of the House.

As a result of, I could call it arrogance or the fumes of power which have invaded certain heads, it absolutely boggles my mind that over and over the Conservatives keep using time allocation. We had a vote earlier today once again to limit the debate on this bill which is thicker than many of our communities' phone books. It is a great concern and we really have to pay attention to that.

Let us take a look at what is buried in the bill. There is a whole lot buried in the bill that will have a huge impact upon the world we leave for our children.

I hear a lot of rhetoric about protecting our environment, but when I see the kinds of attacks in this bill on environmental assessments and environmental protections, it causes me a great deal of concern.

Some will say who cares if I am concerned. I am an elected MP. A riding of constituents voted for me and sent me here in good faith.

However, I am not the only one who is raising concerns. People in the larger community are talking about environment issues.

For example, Jessica Clogg, executive director and senior counsel at West Coast Environmental Law states:

By gutting Canada’s long-standing environmental laws, the budget bill gives big oil and gas companies what they've been asking for--fewer environmental safeguards so they can push through resource megaprojects with little regard to environmental damage. It is Canadians and our children who will pay the cost.

I do not want my children, my grandchildren, my great-grandchildren or myself to have to pay the cost, nor do I want the rest of our youth to have to pay the cost.

Ten minutes goes by very quickly, especially when there is an interruption, but I will move on to another area. The changes to OAS are totally unnecessary, as all kinds have experts have said.

I will focus for a couple of minutes on the changes to immigration. Some people will wonder why changes to immigration are buried in the budget bill. The government is planning to hit the delete button for thousands of skilled workers who have been waiting very patiently to come to Canada. Out of the blue the government arbitrarily decided that anybody who applied for the skilled workers program before 2008 is gone. It will hit the delete button and their applications will no longer be valid. I know the government is saying that it will send the processing fee back to them, but the government made a commitment. These people played by the rules made by the Canadian government. Not only did they play by the rules, but they waited patiently. They did not do anything illegal to try to circumvent the system. As they were waiting patiently, they saw a new face of Canada that the Conservative government is showing to the world, that is, that Canada lacks compassion and has no respect for people who play by the rules.

The government will give them their money back, but who will give them back their hopes and aspirations? Who will give back to the family in China who, based on a promise made to them by the Canadian government because they were in a lineup to come here, sold their property. They gave their child an education so that the child would do better here. Now they cannot afford to buy back their house because the cost of living has gone up so much. I have hundreds of stories like that one.

People are demonstrating against us, against the Canadian government, in Beijing, in Manilla, in New Delhi, in Chandigarh and in Hong Kong. Why? Because we as Canadians broke our promise. What are we going to do to give these people back their hopes, aspirations and dreams? Why is the government determined to damage Canada's reputation worldwide?

[For continuation of proceedings see part B]

[Continuation of proceedings from part A]

The House resumed consideration of Bill C-38, An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Jobs, Growth and Long-Term Prosperity Act

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

Madam Speaker, I would like to say it is a pleasure to rise and speak today. However, I am rising here today with a great deal of trepidation and concern, concern that my constituents are feeling as well, because I have discussed this matter with them over the last little while.

I just want to hold up Bill C-38 as a lesson aid, and being a teacher, I appreciate lesson aids. This is how thick it is. It is actually thicker than the telephone directory for the town I have spent many years in, Nanaimo, on Vancouver Island.

I want to assure the House that it is double-sided. Not only is it double-sided, but the writing is so tiny that I would need a microscope to read it. Even putting on my reading glasses, I have to struggle and hold it away from me a little.

It shows the density, in more ways than one, of the legislation that is being debated here at report stage before this House. It is not only the density and the number of pages and the number of clauses, but the fact is that this is not a budget bill. This is masquerading. That is what the government has done, masquerading this as the budget bill.

What it has really done in here is put in changes to more than 70-plus laws and regulations that go way beyond, and have very little to do with a budget document.

[Lynne Yelich, Conservative, Minister of State (Western Economic Diversification)]

Madam Speaker, I am pleased to have the opportunity to take part in the debate on Bill C-38, the jobs, growth and long-term prosperity act, an act that the NDP and the opposition are attempting to delay and defeat.

From the start, let me be clear. The NDP and the opposition parties want to stop today's bill because of their ideological opposition to the natural resources sector and its growth. As a western Canadian and member of Parliament from Saskatchewan, I cannot allow these attacks from the NDP go unchallenged. That is why today I would like to focus on the Conservative government's plan for responsible resource development, a critical part of our economic action plan 2012. It is a forward-looking initiative. It is an initiative that would help ensure that all Canadians would reap the benefits of our wealth of natural resources.

Our government's top priority has always been to support jobs and growth in Canada's economy and we are on the right track with Canada's economic action plan. Indeed, since July 2009, employment has increased by almost 760,000 jobs, the strongest job growth among all of the G7 countries. We all want that job growth to continue and there is no question that the resource sector will play a significant role in Canada's future job growth and prosperity.

A few countries are not as blessed with natural resources as Canada. Natural resources have helped to shape Canada's character and identity. They have been the lifeblood of communities for generations and have helped to give Canadians a quality of life that is second to none in the world. The importance of the resource sectors to Canada's economy cannot be overstated. Natural resources are driving economic growth right across the country.

Today, Canada's natural resource sectors employ nearly 800,000 Canadians and these economic engines of prosperity account for more than 10% of Canada's gross domestic product. They generate billions of dollars worth of tax revenues and royalties that help pay for government programs and services for Canadians. With over $500 billion in potential resource projects over the next 10 years, we have a tremendous opportunity to create jobs and economic growth right across the country. These jobs will be created in virtually ever sector of our economy, from manufacturing, mining, science and technology right to the services sector.

To take advantage of this opportunity and to ensure Canada's prosperity, our government is committed to making this nation of the best places in the world to invest. We have put many key ingredients in place, ingredients such as competitive taxes, new trade agreements and non-discriminatory policies.

However, we cannot take this opportunity for granted. Canada is not the only country in the world with rich mineral and energy resources and other countries have made it clear that they are ready to act and act quickly to supply emerging markets around the world. The bottom line is that Canada is competing with other resource-rich countries for these investment dollars. That is why it is so important that Canada creates the right conditions to attract global investment.

One of the ways that we are creating a favourable climate for investment is by taking the guesswork out of the review process for major development projects, and that is the idea behind our plan for responsible resource development. In a nutshell, here is what this new legislation would achieve. First, it would make project reviews more predictable and timely. Second, it would reduce duplication of project reviews. Third, it would strengthen environmental protection. Fourth, it would enhance consultations with aboriginal peoples. We want to put in place a new system of one project-one review that operates with a clearly defined time period.

In the words of the Saskatchewan Mining Association:

The federal government heard that message, and included the 'one project, one assessment' concept. If you were putting an addition on your house and needed a building permit, you don't require both a municipal and provincial permit. It is just common sense that one review that meets common objectives is sufficient.

Our new plan would also place enforceable, beginning-to-end time limits on assessments of no longer than two years, without compromising the thoroughness of the review. The plan would eliminate duplication by allowing provincial environmental assessments to replace rather than overlay assessments by the federal government, where they meet federal requirements.

Saskatchewan Deputy Premier and Minister of Finance Ken Krawetz declared, and I quote:

If...we are doing duplicate assessments in the environmental field and...there is no need to do a duplicate assessment and one assessment will suffice we are encouraged by that.

He went on to say that an improved system could “reduce government inefficiencies” and ensure that we will have continued due diligence.

Furthermore, Bill C-38 includes new mechanisms that would make consultation with aboriginal people and communities an integral part of the new review process, with additional funding to support aboriginal participation in the process. However, let me be clear: our new plan would strengthen environmental safeguards and it would raise our already high standards.

Bill C-38 would ensure that we stop reviewing projects with little or no environmental effects, and it would focus our efforts on projects that have potential for significant environmental and economic impacts. Right now we know that too many projects are getting caught in the regulatory net. We are wasting our time reviewing projects like blueberry washing facilities, parking lots and hockey rinks, projects that have little to no adverse effect on our environment. Quite frankly, it is time to stop the tangled web of rules that are wasting everyone's time and putting major development projects at risk.

Under Bill C-38, the Minister of the Environment would retain the authority to order environmental assessments on projects deemed necessary. To further protect the environment, Bill C-38 introduces enforceable environmental assessment decision statements to ensure that proponents of resource projects comply with required mitigation measures to protect the environment.

In addition, Bill C-38 proposes to provide federal inspectors under the Canadian environmental assessment act with all the authority they need to examine whether or not companies are fulfilling the conditions specified in decision statements. It introduces penalties ranging from $100,000 to $400,000 for contraventions of the Canadian Environmental Assessment Act. Our proposed changes would strengthen environmental safeguards and create greater certainty for investors.

In today's global economy, we simply cannot afford to have one hand tied behind our backs with a review process that is full of delays, jurisdictional overlaps and unpredictable timelines. Simply put, it is time to bring our review process into the 21st century. That is what responsible resource development is all about.

As the western premiers unanimously declared in a statement at the end of the recent conference, and I quote:

One project, one assessment, one decision increases timeliness and certainty, and reduces the bureaucratic overlap without compromising environmental rigour.

Clearly, today's act is about putting Canada's natural resources to work for all Canadians. I will always stand up for the natural resources sector and the Canadians it employs.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Madam Speaker, I would like to thank my colleague from Winnipeg North for his question.

The NDP shares his concerns. Together with our House leader, we tried to split Bill C-38 into five separate parts so that we could take the time to study them and do our work as parliamentarians in a responsible way. We also submitted hundreds of amendments. We will see whether the Conservative government is willing to listen in order to improve this bill.

However, it is difficult to improve such a gigantic catch-all bill. This bill tackles a lot of issues and important rights: working conditions, environmental protection, seasonal workers. We think this is awful. We do not want to start punishing people because their industry operates for just a few months a year.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, we have expressed, time and time again over the last days and weeks, the concern we have in regard to Bill C-38 and how critically important it is that it be amended. The bill is severely flawed and it sets precedents in terms of budget bills. Many have accused it as being a Trojan Horse in terms of the manner in which the government is bringing in legislation that is completely irrelevant to the whole budget process and that we should be breaking this bill into a number of different bills and stick to the budget debate itself.

In response to the bill, the Liberal Party has brought forward a series of different amendments on which we will voting. I look to the member and I suspect the NDP will support our amendments. How does the member feel about the sheer number of pieces of legislation that this bill will have a very profound impact on, if it were to pass?

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, it is with legitimate indignation that I rise today to denounce the infamous Bill C-38, the budget implementation bill.

With this bill, we get the feeling that the Conservatives decided that Parliament was an open bar and attacked social programs, government, workers and families. It is a catch-all bill, a bulldozer bill, a Trojan Horse. Finally, this is an anti-worker, anti-environment and anti-family bill that does not respect our democratic institutions, that attacks key rights, and that attacks the least fortunate and lowest-income seniors in our society.

It is a catch-all bill. We feel that the Conservatives are taking a shot at everything that works and are taking advantage of the fact that they have a majority to destroy things that have been working well in our society. Based on where they are heading, everything will go to the private sector. Assessing environmental impact is not important. As long as there is development, everything is fine, and future generations will pick up the pieces. They will have to carry this economic debt, as well as this environmental debt on their shoulders.

This is unprecedented in Canadian political history. Officially, this is a budget implementation bill, but it changes no fewer than 70 existing pieces of legislation. The Conservatives are taking a shot at everything that moves.

In addition, the Conservatives imposed a gag order—in fact, it was the 23rd or 24th gag order. Members are not even being given much time to discuss this bill. The government is refusing to split up this bill, which is creating a completely absurd situation.

The NDP proposed having five bills instead of one single mammoth, gigantic and unmanageable bill, which was reasonable. For example, since this is officially a budget implementation bill, but it changes standards for protecting fish habitats, it is the members of the Standing Committee on Finance who are required to study the changes to the regulations on protecting fish habitats. Has anyone ever heard of anything so ludicrous or absurd?

Every decision made in this bill probably deserves days of study. The list of things that the government wants to change is impressive. The bill is supposedly for implementing the budget, but it is being used to destroy and attack a bunch of things that help workers and Canadian families. I am going to try to explain why.

Bill C-38 increases the age of eligibility for old age security and guaranteed income supplement benefits from 65 to 67. We remember that the Prime Minister took advantage of a trip to Davos, Switzerland, to announce these changes in front of his billionaire friends, but one year earlier, he had not even told Canadians that he was going to attack our seniors' old age pensions.

Bill C-38 repeals the Kyoto Protocol Implementation Act, weakens the environmental assessment regimes, eliminates the Auditor General's oversight authority for a certain number of agencies and amends the Employment Equity Act so that it no longer applies to federal contracts. In addition, it dissolves the Public Appointments Commission, reduces transparency with respect to the assessment of major pipeline projects and puts more power in the hands of a single minister. Bill C-38 also dissolves the National Round Table on the Environment and the Economy, which was working well. Lastly, it eliminates the First Nations Statistical Institute.

So we can see the extent of what is in this mammoth bill, this Trojan Horse bill.

There is one more important matter that I would like to address. The Fair Wages and Hours of Labour Act has also been amended. That act guaranteed minimum salaries, base salaries for workers on federal construction sites. Let me give you some examples. In Vancouver, an electrician could not be paid less than $26.20 per hour; a carpenter, $25.19 per hour. In Calgary, an electrician was paid at least $30 per hour and a steel assembler $24.12 per hour. It guaranteed working conditions, and therefore acceptable living conditions, for workers on those sites. The Conservatives are taking the act, tearing it up and telling employers that, from now on, they can pay their employees what they want. There are no more base salaries, no more minimums.

This very ideological and right-leaning Conservative government is constantly making decisions that put downward pressure on salaries. How are the Conservatives going to get the economy going again? By cutting salaries. This is a race to the bottom. This is how they want to build the future, to build a society that is fairer, more just, more united and more decent, a society in which people can live a good life.

When my father bought his house, it was worth twice his annual salary, the only salary. Today, houses cost 10 or 15 times an annual salary. The purchasing power of workers has either stagnated since the late 1970s or become worse. These Conservative and neo-Liberal policies are putting pressure on the salaries of workers, who still have to pay the bills and whose standard of living is not rising.

A family today cannot live on one salary alone. How is it possible that, in a society like ours, people working for minimum wage are below the poverty line? Is that really the kind of society we want to live in? It certainly is the kind of society that the Conservatives want to live in. On the Island of Montreal alone, the number of people asking for food assistance because they lack the means to put bread on the table has increased more than 40% since 2008.

The Conservatives may laugh, but in real life, it matters. In my constituency, 2,000 people are on the waiting list for social housing. What does Bill C-38 say about social housing? Nothing. Zero. Nada. There is nothing in this budget about helping people who are having difficulty paying their rent. When rent takes 50% of people's income, we have a problem. A problem that keeps people in poverty.

It is interesting that the word poverty does not appear in the nearly 300-page budget that the Minister of Finance tabled. That is one of the Conservatives' tricks. If they do not talk about it, then it does not really exist. I am sorry, but that is not how things work. There is no magic wand that makes poverty disappear just because we do not talk about it. There is nothing in this budget, in Bill C-38, to help fight poverty, on the contrary.

I now want to address the issue of temporary foreign workers. That is another example. I have talked about the Fair Wages and Hours of Labour Act. What is in Bill C-38 for temporary foreign workers? Under this bill, temporary foreign workers can be paid 15% less than other workers for the same work. This is just more of the same Conservative policy to put downward pressure on the incomes of Canadians and Quebeckers.

Eugénie Depatie-Pelletier, the coordinator of a branch of CERIUM, the centre for international studies and research at Université de Montréal, said:

Temporary foreign workers, whose employment contracts are already being violated because of administrative restrictions on their fundamental freedoms, will now be subject to a new discriminatory measure.

According to the administrative directive posted online on April 25, 2012, by Human Resources and Skills Development Canada for temporary foreign workers in Canada with “high-skill” occupations, wages that are up to 15% below the average wage for an occupation in a specific region will be accepted. Various observers have said that this federal measure will ultimately contribute to an overall reduction in wages in Canada...

The constitutionality of this new federal Conservative measure will inevitably be challenged sooner or later in court. This measure is a concrete example of the government violating the right of a historically disadvantaged group—immigrant workers in this case—to be free from discrimination.

Furthermore, André Jacob, coordinator of the Observatoire international sur le racisme et les discriminations and an associate professor at the UQAM school of social work, said:

The argument that the local labour force does not want to do the work for which employers use foreign labour is a false premise. In fact, Canadians do not want to comply with the conditions imposed by companies that favour temporary foreign workers [because they work in horrible conditions]. Businesses want to be able to count on a low-cost workforce that is available at all times, submissive, non-unionized and [basically] without rights.

...The temporary foreign workforce is not a cargo of exotic products that can be purchased and sold with only profit in mind. These are human beings with rights. It should not be up to private businesses to protect the rights of all workers; it is the responsibility of the state.

We see the same thing with employment insurance reform. The government is pushing wages down and wants to force seasonal workers to accept jobs with wages 30% lower than what they earned before. The NDP will fight this Conservative government because we want people to be able to live with dignity.

[Lisa Raitt, Conservative, Minister of Labour]

Madam Speaker, I am very pleased to have this opportunity to speak in support of Bill C-38.

Jobs, growth and long-term prosperity are at the heart of this bill, which comes as Canada is emerging from the global economic downturn and facing increased competition in the global marketplace. Fortunately, we are facing these challenges from a position of strength.

Our government pledged in the Speech from the Throne that we would promote a stable low-tax environment, develop a highly skilled and flexible workforce, support innovation, and expand access to markets abroad. Bill C-38 is the next step in delivering on those promises to Canadians.

The Government of Canada's priorities are also the priorities of the labour program. The labour program is cutting red tape. It is modernizing and streamlining its operations, as well as consolidating some programs and activities. The cost-saving measures within the labour portfolio will result in savings of $16.7 million. At the same time, we are continuing to fulfill our mandate to promote a fair, safe, productive workplace, and facilitate co-operative labour relations in federally regulated private industries.

I will begin by describing what Bill C-38 will mean for the federal labour portfolio. When businesses go bankrupt, many people suffer, but some of the most unfortunate are those former employees who were entitled to long-term disability pensions and indeed were receiving long-term disability pensions. Bankruptcies can lead to the reduction or even complete loss of long-term disability benefits when there are insufficient funds to cover the outstanding claims. Economic action plan 2012 proposes to require that going forward, federally regulated private sector employers insure on a go-forward basis, as I said, any long-term disability plans for employees. This will provide additional financial security to these individuals and their families when they need it most.

The new provisions for long-term disability plans complement the support our government already gives workers through the wage earner protection plan, WEPP. The WEPP was introduced in 2008 to provide timely compensation to workers in federally regulated industries for unpaid wages and vacation pay they had earned in the six months preceding their employer's bankruptcy or receivership.

We expanded the WEPP in 2009 to protect severance and termination pay, and again in 2011 to cover workers whose employers had to restructure without success. The recent expansion is estimated to provide an additional $4.5 million annually in support to workers affected by the bankruptcy or receivership of their employer. Through economic action plan 2012, we are proposing to add $1.4 million annually in operating funds to ensure that WEPP applicants receive the benefits they are entitled to when they need them.

I would also like to briefly mention some other economic action plan 2012 measures that will increase efficiency and get better value for Canadians. Among the changes, the federal contractors program will be redesigned, and that will streamline the program requirements. The initiative is part of the Government of Canada's deficit reduction action plan, and it will improve the efficiency and effectiveness of government operations and programs to ensure value for taxpayers.

The obligation for employers to meet employment equity goals will now be placed directly in the contract as a mandatory clause, and failure to meet the obligations shall constitute a breach of the contract. As such, federal contractors that wish to contract with the Government of Canada will be required to meet employment equity obligations. Modernizing the federal contractors program will reduce the administrative burden on contractors. That, of course, was a key recommendation of the Red Tape Reduction Commission.

We also propose to amend the Status of the Artist Act to transfer the function of the Canadian Artists and Producers Professional Relations Tribunal, or CAPPRT, to the Canadian Industrial Relations Board. The CAPPRT currently supports constructive labour relations between federally regulated producers and self-employed artists, but there has been a considerable decline in CAPPRT's case activity over the past five years. Indeed, each year since 2006-07, the tribunal has only received slightly more than one new application, and averaged fewer than one day of hearings.

As a consequence, the government has decided to transfer CAPPRT's powers, duties and functions to the CIRB. With this amendment, the existing framework for labour relations in the federal cultural sector would remain in place, with the CIRB continuing the work of the tribunal and promoting and supporting professional relations between artists and producers.

By transferring CAPPRT's powers, duties and functions to the CIRB, the government is ensuring that an experienced and competent body remains to oversee the relationship between artists and producers in the federal jurisdiction, but it would do so while generating cost savings and improvements to administrative efficiency. We fully expect that this transfer would result in both improved services and reduced delays in resolving cases, while not directly impacting the artists themselves.

We are also proposing to modify the Government Employees Compensation Act to streamline and improve administration of third party claims and to enhance efficiency in the federal public sector. Workers' benefits would be unaffected by this adjustment, but the amendment would allow crown corporations to pursue third party claims under the act and that would reduce overall labour program administration costs for third party claims.

Finally, we are also planning to repeal the outdated Fair Wages and Hours of Labour Act, which was enacted in 1935 at a time when very few regulations existed to protect workers. At one point in time, it did serve a useful purpose, but today it no longer plays a significant role in protecting workers. The reality is that federal construction contracts today account for only 2% of non-residential construction work in Canada compared to 1955 when it was 11%. As well, the provinces and territories already regulate wages and working conditions in the construction sector. In many respects, the Fair Wages and Hours of Labour Act duplicate existing provincial labour legislation.

Today, like all other workers in Canada, construction workers are protected by comprehensive provincial and territorial employment standards. They are also protected by human rights and by occupational health and safety laws of the provinces and territories. Therefore, repealing the Fair Wages and Hours of Labour Act supports our commitment to create jobs and fosters economic growth by eliminating red tape and duplication. It is part of our deficit reduction action plan and we seek to improve the efficiency and effectiveness of government operations and programs to ensure value for the taxpayer.

With respect to temporary foreign workers, prevailing wage rates are already set by HRSDC and Service Canada, and repealing the act will not change this.

In conclusion, the Government of Canada's priorities continue to be jobs and growth, and these are also the priorities of the labour program. Through Bill C-38, our government is looking to move forward on our commitment to make effective and efficient use of our resources in ways that respond to real needs.

I urge this House to support Bill C-38.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Madam Speaker, it is with a rather heavy heart that I rise in the House to speak to Bill C-38.

Not only do I oppose the content of this bill, but I also strongly oppose how the government has gone about getting it through the House.

I was very idealistic when I arrived in the House of Commons barely a year ago. I truly believed in the goodwill of this government, which had just been elected to do politics differently. I realize that the reality is altogether different and that the government wants to push through bills of this magnitude without consultation or consideration by committees and the House.

I oppose this bill because I believe it will have serious consequences not just on jobs, but also on growth and long-term prosperity. In fact, this government is not investing in the economy of the future, but rather in the economy of the past.

In my opinion, this bill is not in the best interest of Canadians and does not reflect the fact that the government must work for the common good.

Canada must foster economic development in a way that respects the principle of sustainable development and promotes the development of our communities and our environment.

It is with this in mind that the NDP has been calling on the government for several years now to reform and modernize the Investment Canada Act, one of the main components of our economic regulatory system. I am talking about it today because this bill includes changes to the Investment Canada Act.

Although the NDP has been calling for an overhaul of the Investment Canada Act for several years, and although a motion was unanimously adopted by the Standing Committee on Industry, Science and Technology to review the Investment Canada Act—I am on that committee, so I should know—this has not been done. Instead, the government continues to hide certain changes to that act within this omnibus bill.

Thus, with so many things going on, the government is modifying the Investment Canada Act bit by bit and without really carefully studying the consequences this will have on jobs, growth and long-term prosperity.

The government promised to tighten up the Investment Canada Act a long time ago, but I am disappointed that it has decided to include these changes in the budget implementation bill, instead of going ahead with the consultations it had promised.

The act will now enable the government to disclose the reasons why it would oppose a foreign acquisition, but the act already sets out some exceptions. The government will first have to consult the company in question and refrain from disclosing the reasons why it opposes the purchase if it would cause prejudice to the company. The changes included in Bill C-38 will also allow a penalty in the form of a security, and not just money, to be imposed on firms found to violate a country's legislation.

The government's proposed amendments to the Investment Canada Act are only minor corrections, when we consider the scope of the challenges.

The biggest amendment made to the act by the government was not made through Bill C-38 but through the regulations. So it is appropriate that I mention it in the context of this speech, given that the government continues to make amendments to the act without going through Parliament or the Standing Committee on Industry, Science and Technology, which would be the appropriate forum.

When foreign investors are buying a Canadian company, an assessment is conducted under the Investment Canada Act. The assessment threshold is currently $300 million, depending on the value of the company's assets. On May 25, 2012, the Minister of Industry announced that, in four years, the threshold would increase to $1 billion, depending on the value of the business. This new measure was based on the recommendations of a committee that submitted a report in June 2008 entitled "Compete to Win". I note that it was not the Standing Committee on Industry, Science and Technology that made these recommendations or a committee of parliamentarians, but an ad hoc committee, if I may call it that.

This announcement will have fairly significant consequences on the possibility of keeping Canadian companies, especially the medium-sized or larger companies, because there will be no review under the Investment Canada Act.

The Globe and Mail recently published an in-depth report on the disappearance of Canada's medium-sized businesses. Canada has many small businesses, but we seem to be losing more and more of our medium-sized businesses, particularly in the manufacturing sector.

These announcements and changes to the Investment Canada Act were made—I repeat—without MPs' approval and with no real discussion by the Standing Committee on Industry, Science and Technology. They will have negative consequences on several sectors of our economy and on Canada's ability to help medium-sized businesses thrive and to keep them in our economy.

Long-term prosperity means long-term jobs. Helping our manufacturing sector to flourish, particularly medium-sized businesses in that sector, is in Canada's best interest. These industries take root in their communities and become active partners in the regions. They will provide long-term jobs, which lead to long-term growth and prosperity.

This is troubling. The government keeps talking about 750,000 new jobs, but let us take a closer look at that number. Those 750,000 jobs have been created since the lowest point of the recession following the loss of 430,000 jobs during the recession. That means we have about 320,000 net new jobs since the beginning of the recession. Yet the number of people in the job market grew by approximately 600,000 during that period. That is why our unemployment rate is still much higher than it was before the recession. It is currently 7.3%.

We are not currently creating enough jobs to keep pace with growth.

I could go on at length about how this bill will have negative consequences on jobs, growth and long-term prosperity.

[Dean Del Mastro, Conservative, Parliamentary Secretary to the Prime Minister and to the Minister of Intergovernmental Affairs]

Madam Speaker, it is a real pleasure to be able to join the debate on Bill C-38, the budget implementation act, our government's plan to keep Canada on course toward long-term growth and prosperity. I want to emphasize to my opposition colleagues in the NDP, the Liberal Party and others in this place that, through the measures that they have undertaken to delay this budget, they are in fact indicating that their concern is not with everyday Canadians who want to see long-term economic growth and prosperity in this country.

At a time when the global economy remains fragile, our government is focused and will remain focused on those Canadians hardest hit by the economic downturn by helping create and protect jobs.

When it comes to creating a job market that is strong and efficient, our government continues to take strong and responsible action. We talk a lot in this place about jobs. We talk about the importance of providing opportunity for everyday Canadians. How does a government do that? Clearly, a government does not hire each and every person who is looking for a job. We create an environment that attracts investment and opportunity and provides that opportunity to Canadians. So far, by any measure, this government's actions are clearly providing results for everyday Canadians.

Since 2009, I know that this number has been said many times in this place, employment has increased by over 760,000 net new jobs. We have said many times that it is the strongest job growth in the entire G7, but that is actually understating it. It is the strongest job performance in the G7 by a very wide margin. It is in no small part due to the measures in Canada's economic action plan dating back to January 2009. I was pleased to participate in the creation of the budget. I think frankly Canadians, generations from now, will look back and say that it was an incredible plan and an incredible document, and that the government of the day should be celebrated for its foresight. More than nine in ten jobs created since July 2009 have been full-time positions, and close to 80% of them are in high-wage industries in the private sector.

When we listen to what Moody's, a respected global credit rating agency, had to say about Canada we should all be encouraged as Canadians. It stated:

In the view of Moody's sovereign analysts, the Government of Canada's Aaa ratings are based on the country's very high degree of economic resiliency, its high government financial strength and its low susceptibility to event risk....The outlook for Canada's ratings is stable. The country was affected less than most other advanced economies by the global credit crisis and recession, and its government financial position remains comfortable.

However, we cannot rest on this success.

I just heard my hon. colleague from Essex speak a few moments ago. I know he is passionate about the southwestern Ontario economy and creating opportunity in that economy. His economy is not so different from mine. The foundational strength of my economy, originally founded locally, was in settling the land and in agriculture, but later grew. Along with the Canadian Pacific Railway, we grew a manufacturing base in Peterborough and in our region that has supported families and economic growth for generations.

However, we want not just to preserve that but to create growth in that sector. In Peterborough we have seen significant growth in our manufacturing sector, contrary to what members may hear. Through the Kawartha manufacturing initiatives, the Tri-Association Manufacturers Initiative, we have been able to create a significant number of jobs. We have done it with skills, with skills training, with innovation, all supported by this government and its economic action plan. That is how the next generation of manufacturing and the people who will manufacture those goods will find success in this country. We will do it by focusing on innovation and by investing with these companies and supporting them.

My colleague talked about the auto sector, but it is obviously much further and much broader reaching than just the auto sector, but we will also open markets.

So much of what we are working to do, not just in this document, but every day, and when we are focused on the economy, we are focused on opening up markets, providing opportunities and creating jobs right at home.

I want to go through a few measures in our economic action plan 2012. As I said, it reinforces the government's commitment to move toward an immigration system, which is focused on the economy as well, with the following three key steps, and this is also something that is very important in my region.

First, we will return applications and refund up to $130 million in fees to certain federal skilled worker applicants. This measure will improve responsiveness of Canada's immigration system by more immediately directing our efforts toward addressing modern labour market realities.

Second, we will work with the provinces and territories and other stakeholders to support further improvements of foreign credential recognition and to identify the next set of target occupations beyond 2012.

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

This is all part and parcel with our larger plan to ensure that we do not just create jobs, but that we have the skilled people we need and, frankly, the raw people power to support the growth of our economy. When our economy grows, it benefits all of us. It provides all of the funding for so many things that so many people in this place care about, whether it is health care, or education, or transfers to the provinces, or support for our foreign embassies and the many good activities that Canada undertakes through CIDA and other agencies, all of these things, all of the strengths that the federal government has is based on a strong economy, a strong labour market, a strong natural resources sector. It is critical.

It never ceases to amaze me that when we come forward with a plan like our economic action plan 2012, the opposition will find things that they claim for that reason and that reason alone they will vote against the entire document. I would argue that there are so many strong and important measures in this document. I do not see how members can vote against it.

When Canadians look at the government's overall approach toward providing and protecting the economy, toward creating long-term economic growth and prosperity, they will receive this budget as good news. They will support it. In the future, members in the House will be held accountable for how they voted on this very important document.

As I said, we have made great progress such as 760,000 net new jobs created and the growth in our GDP leads the G8. We continue to outperform comparable industrial economies. The focus of this government is to back the promise we made to Canadians.

There is one more sector that I want to address. It is agriculture. It seems often it gets lost among the debate in this place. It does not get mentioned as much as it should and it is so critically important to the well-being of our overall economy.

I have heard many people talk about the Fisheries Act and the changes to it. Farmers in my riding have come forward many times on these amendments and have said that they do not understand why, having farmed areas for generations, they would be harassed for regulations that do not make any sense. That is why we are making these changes. That is why I am proud to support them.

I am proud to support this budget. It contains important measures for the people of Peterborough and, indeed, for the people of Canada.

[Jeff Watson, Conservative, Essex, ON]

Madam Speaker, I am pleased to rise today to debate the government's budget implementation bill, Bill C-38, the jobs, growth and long-term prosperity act.

This is a very necessary bill. Procedurally, it follows the adoption of a very important budget that continues to move us on a low-tax track for jobs and growth. This builds on that. Of course, the government is razor focused on the economy. The government was given a strong mandate by Canadians to be focused that way.

The results speak well. There have been nearly 760,000 net new jobs, 90% of them full-time, since the height of the great recession. We have received international praise for our policies and the trend of our economy by the OECD and the IMF, among others. All three major credit rating agencies, Moody's, Fitch and Standard and Poor's, have reaffirmed our top credit rating. There are no issues in that regard, unlike other countries in the world.

Of course, we recognize that more can be done. There is an opportunity to do even more. There are Canadians who are still unemployed. We also recognize statistics from last year. There were some 250,000 unfilled jobs in Canada. We clearly have a need to connect Canadians to labour force realities here in Canada, even within their own labour markets. That is why we need greater efficiency with the employment insurance program.

We still have challenges to face with respect to improving our productivity and innovation. We are in a competition in the 21st century for not only global capital investment but for the most talented minds, those with the talent and skills sets from around the world, if we are going to persist in having a first world economy and first world standard of living by extension.

Now that we have passed the budget, it is important that we pass the implementation act to implement our far-reaching economic action plan 2012. We need to pass it now, not weeks or months from now. It is important that we pass it now.

By way of process, budgets are long-ranging in terms of their consultation. We started consulting extensively last fall. The budget itself was tabled some four months ago. We have had all kinds of debate about the direction of the country.

We have had lengthy debate already in the House of Commons. A full committee and an additional subcommittee conducted hearings with respect to the various aspects of this implementation act. I was able to participate in part of that. I spoke with the Retail Council of Canada, the Canadian Auto Workers Union and others.

I think the NDP members themselves probably agree we do not need any more debate on that. After all, yesterday they voted against sitting until midnight, so clearly they are not interested in debate any longer.

It is also important to pass the bill now because there are threats to the global economy still looming. In the United States unemployment is up recently. The eurozone woes are extremely well known. We do not want to delay implementing the budget and getting on with growing our economy.

There is context for the current budget implementation bill. Budget 2012 builds on previous budgets. There is a real logic to what the government has been doing through the economic action plan in 2009, the subsequent low-tax plan for jobs and growth. One could even go back further.

At the end of this month it will be eight years that I have been here and have been privileged to be the hon. member of Parliament for Essex.

In 2007 we brought in a budget and laid out a vision document called Advantage Canada. We tackled four major challenges: high Liberal taxes on business investment; low business investment, particularly in equipment and machinery technology; a skills shortage; and the forecasted rapid decline of the population over the coming decades.

We proposed five major advantages. First, a tax advantage, or as we like to think, a low-tax advantage. We have reduced all kinds of taxes and we continue to do that. Second, a fiscal advantage. Third, an entrepreneurial advantage, cutting red tape, which is a key move for ensuring our businesses move forward. Fourth, a knowledge advantage, so we could have the best educated, most skilled and most flexible workforce in the world. Fifth, an infrastructure advantage.

We brought in the Building Canada plan, which was an extensive seven-year, comprehensive infrastructure plan with many components to it. It has been helping to renovate and modernize our infrastructure not just for quality of life issues, but also to suit our economy moving forward. We are committed to that.

We brought in the borders and gateways fund as well. We have been acting consistently. Economic action plan 2012 continues to follow in that direction.

We need to pass Bill C-38 now for another reason that is a little more local for me and the Windsor Essex economy. There is a 9.9% unemployment rate, although that is down from well over 15% at the height of the great recession.

There is room for improvement. We need further economic development and diversification. We need to connect those who are unemployed with available jobs in the local workforce. The proposed EI changes, for example, become very clear. We need to give more job information to those individuals who are on EI claims, many of whom think they are faithfully pursuing their responsibilities by looking at job banks. Job banks show only a fraction of the jobs that are available to them.

We are connecting the temporary foreign worker program to the EI program so that permits for foreign workers are not given until local workers have an opportunity to connect to that. That is important. I look at the greenhouse industry in my district and the high tech industry. The high tech industry provides good-paying jobs, yet there may be people who are not aware that jobs are available in that sector.

We are proposing sensible reforms.

There is also responsible resource development. The opposition is positive that resource development is not a good thing for the Ontario economy. Nothing could be further from the truth. I look at a company like Southwestern Manufacturing that made its exclusive fame at the time in the auto industry until tough times came to the auto industry. What has it done? The company has diversified. It has gone to the mining industry and the oil and gas industry. It does heavy machining, which is an easily transferrable skill from the auto sector to the needs of the economy. Half a trillion dollars in responsible resource development: that is a huge amount of investment potential in resource projects in the next 10 years. Mining is one of the fastest growing sectors in Canada. It provides good-paying jobs for Canadians.

There is a responsible and balanced way to do this. How do we do responsible development? These measures are important for my region as well.

Innovation is important. I believe it was a former Chrysler executive who once said that the future of the auto industry was the six inches between our ears. When other countries are pulling back in a mode of austerity on innovation, this government is doubling down on that investment, doubling IRAP and focusing on commercialization. These are all important measures, because innovation will drive high-paying jobs for the future, not just for my region but right across this country.

I urge the opposition to reconsider and support Bill C-38.

[Judy Sgro, Liberal, York West, ON]

Madam Speaker, I am not happy to be getting up here today and talking about Bill C-38 in the form in which it is before us, an assault on democracy resulting from a 452-page omnibus bill that would change over 70 pieces of legislation.

My colleagues on the other side can ooh and aah and all the rest of it, but I can say that when they were on this side of the House and the Liberals introduced what they called an omnibus bill—which was far less than what we have here, because we did not have all these changes to legislation—they hollered, screamed and banged the tables. I think we are very calm on this side and directly addressing the points that are giving us concern.

It would be one thing to bring forward a 452-page document called a “budget” in September and work from September through to June on it. That would be plenty of time for all of the committees and the rest of us to examine it. However, the Conservatives are clearly using this omnibus bill, which they have called a “budget”, to get through everything they want to clean up everywhere.

It will change 70 pieces of legislation. The omnibus bill will change the face of Canada.

If the Conservatives had the confidence level that they should have as the governing party, they would have sent the bill to committee, given us lots of time to examine it and accepted some of the amendments that would have come out at committee level, which probably would have improved some of it. Maybe some of it would never have come back into the House. That would have shown that they had respect for democracy in this country.

There is no minority-government concern hanging over our heads as we had previously, so there was lots of time to debate and discuss the bill. It is not as though the government has anything so pressing on its agenda that it has to shove this bill through today. The Conservatives could have separated the bill into a variety of different areas.

Clearly this is a Reform-style document that forgets democracy. The Conservatives can go abroad and talk about democracy in other countries around the world and tell them how they have to become more democratic and provide votes and opportunities. Here at home, quite frankly, what is happening is becoming an embarrassment.

I have done some traveling overseas this last little while, and I was asked by very many people what has happened to Canada when it comes to issues of human rights or how Canadians are being treated. Clearly there are questions around the world about our country and what has happened to it.

When we used to travel around the world, we were very proud to say that we were from Canada, that we were Canadians. I am not getting that sense back from people now. They are all asking what happened to Canada. They are seeing a significant change.

Well, that is what happens with governments: people elect them. Unfortunately, this election was clearly interfered with, which is something that I suspect Elections Canada will give us more information on. We know already that there were clearly some disparities and ongoing issues in some of the ridings.

However, we move beyond that because we respect democracy in Canada. We would like to think that everybody does the right thing and is honest and straightforward. Clearly, from what we are hearing, it does not sound as though that was the case.

The reality is that we have a majority government today. One of the government members was saying to me yesterday that there will be no election until October 14, 2015. Even when I questioned, there was no chance of an election before then. Well, everything is in the power of the Prime Minister, and he can decide tomorrow, for whatever reason, to have an election. However, if the government is so confident of not having an election until sometime in October of 2015, what is the pressure and the worry that it has to change EI today?

The changes the Conservatives would make would affect so much, including the temporary foreign workers who come over to work on farms and in the agricultural industry. Many of them have been coming to this country to work on farms in Canada for many years; now, all of a sudden, that door is closed for them, even though many of the farmers are saying that they will not be able to get enough workers. By the time they get around to responding to all of this process, their season will be over. That will clearly be a significant problem for their economy.

When we are looking at the changes to EI, seasonal work is a big part of Canada. There are weather issues. Who is going to do all of the seasonal work if the fishers in Newfoundland or New Brunswick are told that they cannot work seasonally any more and they have to go out west or wherever to find a job? Who is going to do the fishing if they all take full-time jobs out west? There are an awful lot of implications. I can appreciate the intent of what the government wants to do, but I do not think it has been thought through as thoroughly as it could have been.

I will now talk about seniors for a few minutes. I am the critic for the seniors file and have spent a lot of time calling on the government to give them more help and additional funds. What does it do? It decides it is going to increase the age for accessing old age security by another two years. Is that happening tomorrow? We have closure on this bill and we have to shove it through. We are going to be up for two or three nights voting because there is an urgency for this 452-page document to be passed this week, when all it would take to satisfy the opposition would be to break up the bill and allow parts of it to have more debate at committee.

On the issue of changing the date of entitlement for old age security, other countries are changing it, but those countries have a pension that makes up 60% to 70% of what people were earning before. It has a huge hit on the GDP. Here in Canada we have a very modest pension system when people reach 65, which is about 25%, or 2.1% of the GDP. It is a very small amount. It is a recognition of the money people paid in taxes and it is going back to them, plus the CPP, and for some, the OAS.

If we consider all of those amounts and that people are now going to have to wait until age 67, it means that every Canadian under the age 54 will be losing $15,000 a year for two years, which amounts to $30,000. The government talks about not raising taxes and all of that stuff, but it is a pretty big tax hit when people lose $30,000 out of their gross net income over the period of their lifetime. Members should not say that is an easy thing to deal with. That is going to have a huge impact on a lot of Canadians, but it is a long way away, so why is there a need to push this bill through by using closure? There is no rationale for it, other than the fact that the government wants it done. The government wants to do things its way and it is going to push it through whether we like it or not. A lot of Canadians who watch these proceedings really do not understand why it is necessary to do that.

Aside from the fact that this is clearly an abuse of power and an assault on democracy, all Canadians should be enraged. We live in this peaceful country and people do not know what is coming until they knock on the door, whether it is a seniors issue, an environmental issue or an EI issue. When people need the services of the government or see that the country itself is eroding is when they start asking questions. Otherwise, the streets would be filled with people protesting.

Let us look at the changes to the environmental regulations. It is very important that we protect the environment, but what is the government doing? It is practically deregulating everything and removing all of the environmental protections and safeguards that would better protect all of us, and our kids and grandkids in the future. A lot of the impacts as a result of this budget are not going to be felt for years to come, and that is exactly what the government wants. The government wants to get this through quietly with as little trouble as possible, and then go on to dismantle the country.

The Prime Minister said several times that if he had an opportunity to become prime minister, he would change the face of Canada. There is a quote somewhere by the current Prime Minister. That is exactly what he is doing, step by step, a little at a time so Canadians do not get too alarmed. He is moving forward on changing our country, exactly what he said when he was the head of the Reform Party, not the head of the Conservatives.

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I am pleased to rise in support of Bill C-38 and to speak against the opposition amendments to delay this important legislation. I will focus my remarks on proposals for the new Canadian environmental assessment act 2012, which is contained in part 3 of the bill.

Before turning to some of the highlights, I will briefly explain why this legislation is important. The current federal regulatory system for project reviews is a patchwork of laws, regulations and policies that have been put in place over a number of decades. While founded upon the best of intentions, the result is an overly complex set of processes that have been plagued by delays and inconsistencies.

In 2007, our Conservative government took action by creating the major projects management office to provide oversight and to inject some coherence and consistency in project reviews. An additional $30 million per year was also invested in the regulatory system. I am pleased that this funding has been renewed through budget 2012.

Despite this effort, it has become clear that fundamental legislative change is required. It is needed both to address the challenges at hand and to take advantage of Canada's promise and opportunity. This is why Bill C-38 introduces measures to promote responsible resource development. The four pillars of this initiative are straightforward: providing predictable and timely reviews, reducing duplication, strengthening environmental protection and enhancing aboriginal consultations.

The portion of Bill C-38 devoted to the Canadian environmental assessment act 2012 supports each of these pillars. First, Bill C-38 would provide for predictable and timely reviews through reasonable and certain legislated timelines for environmental assessments. This is important for investment decisions and the jobs that result from those decisions. This is important for participants in these reviews and is important for federal-provincial co-operation.

The second pillar of reducing duplication is an obvious objective in a federation like Canada where responsibility for the environment is shared between the levels of government. Bill C-38 would accomplish this through new co-operative mechanisms for environmental assessments. Substitution and equivalency provisions would provide for one project one review. The law ensures that environmental standards are not compromised.

There have been statements questioning this fundamental point. Subclause 34(1) of the new act is clear. It states:

The Minister may only approve a substitution if he or she is satisfied that

(a) the process to be substituted will include a consideration of the factors set out in subsection 19(1);

The factors in section 19 that must be considered are at the heart of a federal environmental assessment. A province would have to commit to meeting this standard before substitution or equivalency can be approved. Clause 34 goes on to ensure that the public is provided an opportunity to participate in a substituted environmental assessment and would have access to documents to enable meaningful participation.

Strengthening environmental protection is the third pillar of responsible resource development. I will speak more to this issue later on, but adding enforcement provisions to the Canadian Environmental Assessment Act represents a significant step forward.

Enhancing consultations with aboriginal groups is the fourth pillar. The Government of Canada will continue the practice of integrating aboriginal consultations into the environmental assessment process for major projects. In fact, changes to the environment that affect aboriginal peoples are one of the specific environmental effects identified by the act that must be assessed.

A subcommittee of the Standing Committee on Finance was established to deal with part 3 of Bill C-38.

A few quotes from the witnesses who appeared before the subcommittee during committee stage further illustrate how the new Canadian environmental assessment act 2012 will support responsible resource development.

Mr. Ward Prystay, of the Canadian Construction Association, stated:

We believe the changes to CEAA will establish a regulatory framework that assures one project, one assessment. This will minimize duplication of process, improve timelines, and free up federal resources to tackle projects with the potential for greater environmental consequences.

Mr. Terry Toner, of the Canadian Electricity Association, pointed to the efficiencies that would result from this legislation without compromising environmental protection. This is what he had to say:

The efficiencies realized by the changes in Bill C-38 will in no way diminish the efforts and actions of the Canadian Electricity Association's member companies in protecting the environment throughout project design, construction, and operation.

Mr. Warren Everson, from the Canadian Chamber of Commerce, said:

I think the establishment of timeframes is very critical for all parties.

There has nevertheless been much debate about the impact of Bill C-38 on protection of the environment. I want to devote my remaining time to this, the third pillar of responsible resource development.

The facts are clear. Bill C-38 will strengthen environmental assessment and, in doing so, the federal government's ability to protect the environment.

The Minister of the Environment has spoken in the House and elsewhere about the importance of enforcement. I want to expand on what he has already said.

The existing Canadian Environmental Assessment Act does not have enforcement provisions. Environmental groups have long noted this gap. A Standing Committee on Environment and Sustainable Development identified the lack of enforcement provisions as a matter of concern in 2003. This issue was raised again during the statutory review of the act this past year by the standing committee.

The proposals in Bill C-38 address the enforcement gap in three ways.

First, a decision statement will be issued at the end of an environmental assessment. It will contain conditions that are binding on the proponent.

Second, there is authority for federal inspectors to ensure these conditions are being met.

Third, there are financial penalties of $100,000 to $400,000 for violations of the act, such as a failure to fulfill the conditions set out in the decision statement.

The bill also proposes a new tool to address the challenge of addressing cumulative effects. Currently the act is restricted to a single-project focus. This makes it difficult to assess cumulative effects, particularly in a region experiencing significant development through multiple projects and activities. Bill C-38 includes new authority for the Minister of the Environment to launch regional environmental assessments in co-operation with another jurisdiction. These studies will provide a better understanding of cumulative effects. This in turn will lead to the development of better mitigation measures.

Mr. Pierre Gratton, of the Mining Association of Canada, supports these regional approaches. He is not alone. He recently said:

This was a significant recommendation we had made, and I think has been overlooked by many as an important environmental improvement.... I think environmental groups and industry have been calling for this type of measure for many years and it is in this legislation.

There are other ways that Bill C-38 will strengthen environmental protection. For example, by moving from over 40 responsible authorities to just three, the government is focusing resources and creating true centres of expertise for environmental assessment.

To sum up, I want to emphasize that the four pillars of responsible resource development set out complementary objectives. It is possible to deliver timely, high-quality environmental assessments in a manner that avoids duplication. It is possible to make timely permitting decisions. It is possible to consult aboriginal peoples in a meaningful way.

Bill C-38 would provide the tools to make this happen.

The House resumed consideration of Bill C-38, An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures as reported (without amendment) from the committee, and of the motions in Group No. 1.