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

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

Mr. Speaker, what the member just told us does not make sense. The Conservatives want to increase the retirement age from 65 to 67 and are telling people who are 54 that they will be affected, but not those who are 55 to 65. In other words, those who are 63 today will not be affected and will not work until they are 67. We know that, at present, a large portion of the population is between 55 and 65. Most of the aging population is in that demographic.

Why should we punish future generations, 13 years from now, by forcing them to work two years longer when there will be fewer seniors and we will have the revenue to support them?

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Mr. Speaker, let me assure the hon. member that it is the future generation on which the government has its eye. We want to ensure we have a sustainable old age security system for future Canadian seniors. At the same time, we recognize it is completely unsustainable to require two future taxpayers to pay for what four taxpayers pay for today.

Clearly, it does not take a masters in mathematics to realize that when the number of people receiving the benefit is doubled and the number of people who are actually paying into that system is halved, that system is simply not sustainable.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, let us look at the math.

According to the OECD, Canada's old age security benefits represent 4.2% of GDP, whereas the average for OECD countries is 7%, and the figure is much higher in other countries.

Comparing Canada to countries in trouble only throws fuel on the fire and scares people for no reason, because this program is sustainable.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Mr. Speaker, what I will do is quote from a prominent economist in Canada, Patricia Croft, who says:

(Budget 2012's) initiatives in the job front and addressing the demographic challenge…in both regards I’d have to give the budget probably an 'A'…in a global context, I think Canada is in a fabulous position.

That stands in contrast to the hon. member's remarks. The hon. member suggests that we should going down a road and follow the same path some European countries are following, paths that have led some of those countries dealing with absolutely disastrous circumstances economically, circumstances that will take decades and decades to recover from.

Thankfully we live in Canada which leads the way economically and has a very bright future because of the measures the government has taken.

[Michelle Rempel, Conservative, Parliamentary Secretary to the Minister of the Environment]

Mr. Speaker, my colleague spoke of the ability for Canada to enact these changes for sustainability in our old age pension system over a longer period of time because of Canada's relative economic strength. Some of the measures our government has taken over the last six years, including the competitive corporate tax rate, have ensured that economic sustainability leads to this long-term planning ability.

Would my colleague explain some of the measures in budget 2012 that will ensure Canada's long-term prosperity?

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Mr. Speaker, because of measures that we have taken over the past six years of government, Canada is the envy of the world economically. Organizations like the International Monetary Fund, the World Economic Forum and the OECD have commented that Canada is leading the way relative to other countries.

The corporate tax rate change the hon. member mentioned, reducing the corporate tax rate from 22% to 15%, is one of the things these commentators have pointed to as an absolutely critical step that has led to that result. We see on the other side suggestions to increase taxes across the board, corporate taxes, taxes on job creators and carbon taxes, a complete 180° from the measures we have taken to put Canada in this enviable position.

I hope that all members will take a really good look at the bill, and not just do what their leaders tell them to do when it comes to voting on the bill, but actually vote in favour of Canada continuing that positive momentum that we have made over the years.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, we keep unearthing all these little treasures hidden deep in the bowels of Bill C-38 that we did not even realize were being snuck into this omnibus bill. Now we know why they were put there and their significance.

Bill C-38 repeals the Fair Wages and Hours of Labour Act. This is the construction fair wages act for the federal jurisdiction. For 100 years, we have been fighting for fair wages and working conditions for the construction industry. It is an industry with a transient workforce. Contractors and the like can exploit desperate working people in the construction industry if we do not have regulations that prevent them from doing so. This legislation took wages out of competition so that contractors would win their jobs based on their merits, skills and productivity, not on their ability to find cheaper labour because, by virtue of the fair wages act, it was agreed that it does not benefit anyone.

We have a quaint expression where I come from that “fair wages benefit the whole community”. It is virtuous to have a well-paid, consuming, middle class. It is good for the economy. Driving down the wages of Canadian workers is in no one's best interest. Members would know that the federal government is one of the largest consumers of construction industry services in the country. This act applied to any construction project contracted by the federal government, including military bases, prisons, ports, banking and telecommunications. The Canada Labour Code, which is the federal labour code, applies to all of those including projects that go across provincial borders. What comes to mind when we think about large projects that might span interprovincial borders are pipelines. We have unearthed now that deep within Bill C-38 the federal government has eliminated the fair wages and working conditions that are found in this act. It has completely eradicated that.

The act also states that contractors, whether unionized or non-unionized, have to pay the prevailing wage. This is usually determined by the Minister of Labour by consulting in that area what a normal prevailing wage would be, not the union scale but somewhere in the same living-wage ballpark. As well, it sets the hours of work, including that no construction worker has to work more than 48 hours without time and a half overtime.

All of that has been eradicated. Now, a contractor can bid on one of these federal jobs and post a job notice saying “Wanted: Carpenters, $8 an hour, 84 hour work week, straight time”. No one will apply for that job, which opens the door to the other side of the coin, to mix a metaphor.

The other side of the coin is that the government has changed the laws for temporary foreign workers again by virtue of recent legislation to the point where a contractor can get temporary foreign workers within 10 days. Where do they come from? They are not some unemployed guys in Bangladesh who notice a job opportunity in Winnipeg, Manitoba. Rather, they come from international labour brokers who are peddling crews of temporary foreign workers all over the world for construction projects. We call them labour pimps. Unfortunately, many of the workers working for these international labour brokers are working in a form of bonded servitude for substandard wages with substandard living, health and safety conditions. Not only are they exploiting those temporary foreign workers, they are also driving down the wage and industry standards of Canadian workers by virtue of these contractors who will undoubtedly win every job.

I know construction. I am a journeyman carpenter. I spent my whole life in construction. I used to be a representative of the carpenters' union. I know the margins that construction contractors play with. There is only 2% or 3% between this bid and that bid. It is very competitive. Contractors who bid a job by pricing out labour at 20% and 30% and 40% lower than their competitors will win every job, every time. They will drive down the prevailing wage, because those other contractors will now have to start bidding lower if they are to ever win a job.

To whose benefit is it to drive down the fair wages of Canadian workers? Let me point out a secondary problem this raises. How are we going to attract bright, young men and women into the building trades if the normal wage is now going to be $8, $9 or $10 an hour instead of the $20 or $30 that it is now? Try feeding a family on $8, $9 or $10 an hour. Nobody in his or her right mind is going to go into that industry. We are going to have temporary foreign workers all over again. This is a recipe for undermining the integrity of the construction industry. I believe it is set up specifically to enable the construction of interprovincial pipelines, which used to be subject to these fair wage standards. It is going to create an open door for contractors to avoid paying fair wages to Canadians and these things are going to be built with temporary foreign workers.

Let me provide a recent example. Unfortunately, the pulp mill in Gold River, British Columbia closed down due to normal market forces. The pulp mill was sold to China. Instead of hiring locals to tear down the pulp mill, the 400 men and women who worked there all their lives and knew every nut and bolt in the place, the mill owner applied for temporary foreign workers. The permit was granted. I have a copy of the application. It asked if the mill tried to find Canadians to do the job. The answer was yes. It asked for the reason it did not hire those Canadians. The answer was that the price was too high. Therefore, it brought in crews of guys from India, who sleep six to a hotel room, to tear down the pulp mill while Canadian workers were outside the fence looking in, wishing they had another 12 weeks so they could get a pogey claim at least.

These temporary foreign worker permits are being given away like party favours at Conservative Party conventions to anybody who asks for them. Now the rules have been changed to make it a 10-day turnaround. A company posts an ad in the paper saying carpenters are wanted for $8 an hour, no overtime, no benefits. Nobody applies for the job. Within 10 days, that company has a crew from an international labour broker pimp who is going to provide all the manpower for that job.

Another example is the Winnipeg international airport. Winnipeg is very proud of its airport. Why is it that unemployed Canadian carpenters were outside the fence watching a crew of temporary foreign workers build that airport? It is simple. It asked the government for it. The crew consisted of 80 guys from Lebanon. The last job they came from was in Latvia, where they built another big concrete job. These guys are moved all over the world because it is cheaper than paying Canadians a fair wage. Companies would rather pay foreign nationals, not landed immigrants but foreign nationals, our wages. They are eating our lunches, and those jobs should be going to Canadians.

As if there were not enough to criticize in Bill C-38, the government has just repealed the Fair Wages and Hours of Labour Act. It makes one wonder what kind of a government is opposed to fair wages for Canadian workers. How many trusting blue-collar workers look to their government for support, not to undermine their living conditions? In its zeal to smash the unions, the government is dragging down the standard of living for the largest-employing industry sector in the country: the construction industry.

I know who is behind it: the merit shop contractors. They are regular and frequent visitors in the PMO. They went to the PMO and said, “It would be really great if we could win all the jobs. We win some of the jobs now, but it would be great if we could win all the jobs”. The government asked, “How can we help you?” They said, “Just eliminate the Fair Wages and Hours of Labour Act and then we can offer whatever wages we want, with no restrictions and no controls”.

It used to be that companies had to pay employees time and a half after 48 hours when they should have been paying them time and a half after 40 hours, but that was not good enough. Now they do not have to pay time and a half at all. Minimum wage is the only prevailing wage now, and I mean the provincial minimum wage, on these projects. It is destructive and counterproductive.

It is in nobody's best interest to ratchet down the wages and working conditions of Canadian workers. It is bad for the economy. The government says it is doing these things because it is good for the economy. What is good for the economy are well-paid, consuming, middle-class workers who are buying cars, houses and jeans for their kids, not people who are driven into the poorhouse by their government.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I always enjoy the performance of my thespian friend from Winnipeg. I would like to make a connection to something his boss said, who is in favour of shutting down the oil sands. I would like to make the connection between the oil sands and the manufacturing industry in Ontario that he cares so much about, which I applaud, and the construction industry across the country.

Talking about cars and toys for kids, if his boss had his way and shut down the oil sands, there would be nobody in Alberta buying the cars that nobody in Ontario would be making. There would be no workers building, not just in Alberta but in other parts of the country. Could he make that connection for me?

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, my colleague is making stuff up. Nobody has ever said that he or she will shut down the oil sands. People have said that they would develop the oil sands in a responsible and environmentally sustainable way.

Here is a fact that maybe my colleague does not know. I will bet dollars to donuts that he does not know that Bill C-38 repeals the fair wages act. I also bet that he does know that fully 30% of all the jobs created in this country from 2007 to today have been filled by temporary foreign workers, not by Canadians, and not just in high-paying jobs but at Tim Hortons and as chambermaids in hotels. Canadians are not taking those jobs because of their lousy wage. Maybe if people paid a living wage, Canadians would apply for those jobs.

Temporary foreign workers is not a human resources strategy. It is the polar opposite of a human resources strategy. It is admitting defeat.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Mr. Speaker, I want to thank the hon. member for his speech, which focused on workers' quality of life. In speaking of workers' quality of life, the hon. member spoke a lot about contributing to the economy.

I would like him to say a few words about the fact that contributing to the economy can go hand in hand with sustainable development and respecting the environment and workers' health.

A study shows that in the United States, corporations have invested roughly $26 billion in green energies and technologies in order to adapt to climate change. They have earned up to $533 billion. For every dollar invested, they have earned $20, all while working toward preventing pollution-related respiratory disease.

What should the government do to improve the health of workers and contribute to the economy at the same time?

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, my colleague raises a compelling point.

When I was head of the carpenters union, I conducted a study that showed that job creation through energy conservation actually employed as much as seven times the number of people as the extraction of energy production. A unit of energy harvested from the existing system through the demand side management is indistinguishable from a unit of energy created at a generating station, except that it is available at about one-third the cost, creates seven times the person-years in employment, does not create greenhouse gases and it is available online immediately. In other words, as soon as one turns a light switch off, the unit of energy one saves is available to resell to someone else at the same moment instead of six, eight or ten years to build a new generating station.

The way of the future, the largest single source of energy in the country, is that energy wasted in the current system. Harvesting that energy out of the current system would put more people to work and would be more sustainable than the extraction option that we seem to be reliant on today.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, it is an honour to rise in the House this afternoon and speak to the important investments and reforms our government is making in budget 2012. Economic action plan 2012 is squarely focused on what matters to Albertans and all Canadians: valuable new jobs and sustainable economic prosperity.

We are moving forward with a stable plan to encourage long-term economic growth and job creation by maintaining our focus on supporting entrepreneurs, business innovators and world-class researchers.

Alberta understands the importance of business innovation. Alberta's cities and rural communities are home to some of the world's most innovative companies and research institutions.

Our government is committed to fostering an economic climate that encourages business innovation. Business innovation is increasingly vital to maintaining our international competitiveness and our excellent standard of living.

Economic action plan 2012 contains over $1.1 billion in significant investments for research and development and $500 million for venture capital and for increased public and private research collaboration.

This direct investment will support private sector business projects that will develop new and innovative technologies demanded in the global market.

Our government will help increase the number of persons employed in high-paying research and development fields and will ensure long-term growth by enabling innovative Canadian companies to thrive in an increasingly competitive and global business environment.

In addition to strategic investments, our government is also committed to improving conditions for business investment. Our government will bring forward legislation to implement across the board changes to achieve the goal of one project, one review in a clearly defined time period.

This includes system-wide legislative improvements to the review process for major economic projects, which will establish clear timelines, reduce duplication and regulatory burdens and focus resources on large projects where the potential environmental impacts are the greatest.

In addition, Western Economic Diversification Canada will be launching the western innovation program, which is a new program that provides support to innovative small and medium-sized enterprises in western Canada.

This budget also places a renewed emphasis on cutting red tape and making it easier to do business in Alberta and the rest of Canada. Reducing red tape helps businesses to better compete; it represents a low-cost way to enable economic growth and to boost productivity as Canada emerges from the global recession.

That is why our government will propose new legislation to modernize and streamline its regulatory system.

In addition, economic action plan 2012 proposes $54 million over two years to continue to support effective project approvals through the major projects management office initiative, which has helped to transform and streamline the approval process for major natural resource projects.

Budget 2012's measures build on a strong foundation of investment and support for research and innovation in Edmonton, Alberta and all of Canada. For example, in May 2009, the Government of Canada committed $195 million to the Government of Alberta as part of Canada's economic action plan through the knowledge infrastructure program. These funds facilitated the enhancement of the science degree program at Grant MacEwan University with the building of new and renovated high quality science labs. They helped to build innovative facilities, like the Alternative Energy Centre at the Northern Alberta Institute of Technology, and helped to upgrade the fume-hood exhaust systems in the chemistry and biological sciences building at the University of Alberta. These upgrades will improve the use and utility of high quality research space, ensuring that students and researchers have the best possible space to learn and conduct their work.

Since 2006, we have provided nearly $8 billion in new funding for initiatives to support science, technology and the growth of innovative firms. With economic action plan 2012, our government would continue to invest in research and innovation in Canada.

Budget 2012 proposes to invest $400 million to help increase private sector investments in early stage risk capital and to support the creation of large scale venture capital funds. Facebook, Google and Research in Motion were all at one time start-up companies financed by venture capital, and we want to help launch the next Canadian business success story.

The western innovation program is another proposal from budget 2012. Western Economic Diversification will soon launch this program to provide financial support to innovative small and medium-sized enterprises in western Canada. Budget 2012 also proposes further supporting advanced research at universities and other leading institutions. Our government plans to invest $500 million over five years to the Canada Foundation for Innovation to support new competitions, including the college industry innovation fund which we will begin funding in 2014.

These commitments demonstrate in concrete ways our government's commitment to following a new approach to supporting advancements in research and innovation by pursuing active, business-led initiatives that focus resources on better addressing the needs of the private sector.

However, we must remember what the lifeblood of our economic engine is. In the Alberta economy, as well as in the rest of Canada, our natural resources have given us a tremendously high quality of life.

These resources have also given jobs to hundreds of thousands of Canadians, which, in the current economic climate, is an extremely important asset. The oil sands in Alberta are merely one of myriad examples of natural resources that have helped to drive the Canadian economy forward with benefits to all provinces and territories.

In this global economy, we need to make full use of all of the assets at our disposal and, in this great country of ours, our natural resources are certainly one of those. In 2010, the natural resources sectors of our economy employed more than 760,000 Canadians in communities across the country. In the next 10 years, there will be more than 500 new major economic projects totalling $500 million in new investments. The oil sands industry currently employs over 130,000 Canadians and generates wealth that benefits the entire country.

A recent study by the Canadian Energy Research Institute estimates that, over the next 25 years, growth of the oil sands industry will support approximately 480,000 jobs and will add $2.3 trillion to Canada's gross domestic product. In addition to all of this, the increasing global demand for resources, particularly from emerging economies, will create new economic and job opportunities from which all Canadians will benefit.

However, our economy and our people will only benefit from these demands if investments are made by the most important driver in our economy and that is the private sector. We need the private sector, with all of its drive and innovation, to bring these natural resources to market.

Recently, however, those wanting to invest in our resources have faced an increasingly large and tangled web of bureaucratic rules and reviews before being able to bring these resources to market. Such obstacles can add costly delays, deter investors and undermine the economic viability of major projects.

In order to achieve the greatest value possible from our natural resources, Canada needs a regulatory system that reviews projects in a timely and transparent manner while at the same time effectively protecting our environment. We will adopt a balanced and responsible approach to protecting our environment that makes a significant tangible difference but does not transfer Canadian jobs overseas.

That is why in economic action plan 2012 our government proposes to streamline and modernize the review process for major economic projects. As part of our plan, major projects will have fixed timelines, panel reviews will be limited to 24 months, National Energy Board hearings will be limited to 18 months and standard environmental assessments will be held to 12 months in length. This will create clear, certain and predictable timelines for businesses that will lead to quality, well-paying and skilled jobs for Canadians. These measures will reduce duplication and burdensome regulations while focusing resources instead on large projects where the potential environmental impacts are the greatest.

These improvements to the regulatory and approval process will benefit Alberta’s economy and, therefore, Canada’s and will position us competitively for long-term growth and future prosperity.

Canada is a great nation and we are in an excellent fiscal position. Budget 2012 keeps us on track to balance the budget, keep taxes low and create jobs and economic prosperity in the long term.

Many governments around the world would envy this budget and, if they were in the economic position of Canada, they might be content to rest on their laurels. Not us, not this government. We will not rest. We will continue to work hard to ensure that Canadian businesses, the industrial and educational sectors, are pushing the envelope in each of their respective domains. We will continue to ensure they have the resources and the environment they need to succeed and create jobs, deliver products to market, develop the next cutting edge technological innovation or make revolutionary scientific discoveries.

We will keep working hard as if it all depended on us, and, frankly, it does. Through all of our work, we will keep in mind the model of the Royal Canadian Air Force, which clearly sums up our goals as a government and the economic circumstances we have come through in the past four years: per aspera ad astra, which means “through adversity to the stars”, and if our history and emergence from past adversities is any indication of our future prosperity, Canada's future is very bright indeed.

[Francine Raynault, NDP, Joliette, QC]

Mr. Speaker, can my colleague opposite explain why the Employment Equity Act will no longer apply to federal contracts? I believe this is a direct attack on women, aboriginal people, persons with a disability and visible minorities. Why make this change?

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, it will come as no surprise to my colleague that I reject the premise of her question. We are working together in the interests of all Canadians, male, female, aboriginal, white, immigrant or whoever, to unlock the tremendous capacity that Canada has and that Canadian industry has in our scientific, educational, industrial and resource development areas.

We want to make the playing field as level as possible so that everyone from every part of the country can have an equal opportunity to share in the tremendous success that is Canada, and we will not pit one against the other. We want a level playing field for all.

[Michelle Rempel, Conservative, Parliamentary Secretary to the Minister of the Environment]

Mr. Speaker, I will read a quote:

In the face of tough fiscal choices, the government showed leadership by continuing its investments in research, innovation, research infrastructure and university-private sector collaborations. These investments will build a stronger future for our society and economy.

This was said by Stephen Toope, the chair of the Association of Universities and Colleges of Canada as well as the president of the University of British Columbia.

I share this view. I have a past history working with research administration, and especially our investments in the Canada Foundation for Innovation. I would like to hear from my colleague how he feels that investments in CFI will continue to ensure the development of highly qualified personnel and the continued growth of our economy.