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.

[Geoff Smith, Director, Government Relations, Canadian Electricity Association]

Thanks, Mr. Chair.

We often talk about natural resources being the backbone of Canada's economy, but rarely discussed is the central role that electricity plays in our daily lives. Every day CEA members generate, transmit, and distribute electricity to industrial, commercial, residential, and institutional customers across Canada. The energy we make, move, and sell is essential to our homes, hospitals, airports, and businesses, including needed power for resource development.

Founded in 1891, CEA's membership includes publicly- and investor-owned major electric utilities across the country, provincial system operators, power marketers who trade and sell electricity, and more than 40 companies representing various aspects of the electricity value chain. This includes technology providers; manufacturers of electricity meters, cables, and transformers; and representatives from the legal, financial, construction, and consulting fields.

While the integral role of electricity in our society seems fairly obvious, most Canadians take the convenience and reliability of our product for granted. That is likely a result of our industry's excellent record on reliability, of which we are very proud. You flip the switch and there it is.

Even lesser known are the attributes of our actual electricity grid in Canada. If you can just pretend for a moment that I'm Alex Trebek and it's time for final Jeopardy!, today's topic is electricity. Your clue: this percentage of Canada's electricity is generated from non-emitting sources. The answer is that over 80% of Canada's electricity today is generated from non-emitting sources such as hydro, nuclear, and increasingly from renewable sources such as wind, solar, and tidal.

As we move toward the future the demands placed upon our sector will result in innovation and cleaner use of fossil fuels, and extensive construction of other generation including natural gas, wind, solar, tidal, and other distributed generation—of course, all matched with enabling transmission and distribution infrastructure. Additionally, electricity will play an assisting role for other sectors that are also reducing emissions. I'm talking, of course, of electric vehicles and the transportation sector being a great example.

In addition to all of that, our reliable but aging electricity system, the grid itself, requires replacement and renewal. The Conference Board recently released a report projecting that $347 billion in investment will be necessary between 2011 and 2030. It's somewhat fitting that the significant investment in and transformation of our electricity system and its infrastructure is paralleled by the modernization of federal environmental legislation taking place today and through Bill C-38.

Individual CEA members are focused and committed to a vision of sustainability that includes environmental, societal, and economic considerations as part of a holistic approach to managing impacts. CEA's sustainable electricity program is the embodiment of this approach. It's a mandatory sector-wide sustainability initiative that measures performance in all three areas of sustainability. It is externally verified and guided by a public advisory panel comprised of several distinguished Canadians and chaired by the Honourable Mike Harcourt. The program is just one reflection of the commitment by CEA members to provide electricity to Canadians in a sustainable manner.

Our appearance today at the subcommittee is a suitable bookend to our presentation to the finance committee back in September. As part of pre-budget consultations we outlined some recommendations to the Environmental Assessment Act, the Species at Risk Act, and the Fisheries Act to help enable investment in the renewal of our system. That brings us to the changes we're discussing today in part 3 of Bill C-38.

I'm joined by Terry Toner. Terry is the director of environmental services for Nova Scotia Power, which is an Emera company. He chairs our CEA stewardship task group and is the vice-chair of several working groups we have with our friends at the Canadian Hydropower Association that focus on the Environmental Assessment Act and the Species at Risk Act.

I will call on Terry to join me to go into a little more detail.

[Rachel Forbes, Staff Counsel, West Coast Environmental Law Association]

Thank you for having me here this evening.

I am representing the West Coast Environmental Law Association. We are a B.C.-based environmental law, advocacy, and analysis organization. We are one of Canada's oldest environmental law organizations and have been providing legal support to British Columbians to ensure that their voices are heard on important environmental issues. We have worked to secure strong environmental laws in B.C. and throughout Canada for decades. West Coast Environmental Law was actually involved prior to during the drafting of CEAA when it was enacted. We have had a role on the environment and planning assessment caucus for years, as well as on the now defunct regulatory advisory committee. We have been actively involved in this round of review, repeal, and now replacement of the Canadian Environmental Assessment Act since the standing committee's review back in the autumn.

I don't want to be repetitive. I know you have heard a lot of submissions over the last few days. I'm going to start by saying we would also endorse the submissions of some of the other witnesses you have heard from, including MiningWatch Canada, the Assembly of First Nations, Ecojustice, and World Wildlife Fund Canada. There are others we would probably agree with in part.

I want to focus here on three different issues. We actually have one main recommendation for the committee. Then, being lawyers, we have a bunch of alternatives if the committee doesn't want to accept that one. I understand the four pillars of the government's responsible resource development plan are to create more predictable and timely reviews, less duplication in reviewing projects, strong environmental protection, and enhanced consultation with aboriginal peoples. We would also support those as part of a robust regulatory regime for environmental assessment and environmental regulation writ large. However, we don't think that part 3 of Bill C-38 accomplishes any of those, and we think that in some cases it actually hinders them.

We think that part 3 will actually result in weakened protection for fish and species at risk. An entirely new and actually less comprehensive environmental assessment process will see the federal government retreat from a strong role and smart regulations, not just from a lot of regulation. We think there are broad and seemingly unchecked decision-making powers given to cabinet and to ministers, which will result in less accountability and fewer opportunities for public participation and public oversight.

Can we still work towards those four goals that we all seem to actually agree on at the core, but which we have different ways of getting at philosophically? Yes. We think doing so would actually require a significant shift in the legislative process that is under way right now and a complete rewriting of part 3, and that goes to our first recommendation. It probably isn't a shock to anybody that we would hope the subcommittee would recommend to the finance committee the removal of part 3 in its entirety from Bill C-38. We would recommend conducting further scientific, factual, and legal studies and having fulsome, open consultation on amendments to the environmental assessment aspects of it, as well as on other environmental regulation, including that on fisheries and species at risk. That would include contemplated regulations, schedules, and other information that neither the public nor parliamentarians, to my knowledge, are privy to at this point.

After such study and consultation is complete—which in fairness I think would take months, not a couple of weeks—stand-alone bills could be introduced in the House and could go through a proper, legitimate process that actually gives people faith in the process and legitimizes it, regardless of what the actual contents of the bill and the act are. I think the process here and the review of CEAA that has gone on are flawed. Jamie Kneen touched on this the other night when he talked about referral to standing committee for a review, the process that happened at the standing committee, the dissenting reports from that, and then a lot of rhetoric that has ended up in a whole repeal and replace which is smushed into a budget bill where it doesn't belong. I think we need to step back and actually do this properly, regardless of what the content is or what one would say about that.

We believe that's the only way to ensure that the proposed new legislation is reviewed and modified in a fact-based, scientifically, legally defensible way. I know that some members of this subcommittee have spoken about the desire to move away from talking points and rhetoric in drafting a report. I would certainly endorse that. I worry that there's actually a lot of facts, science, and law missing right now that would hinder one's ability to write such a fact-based report. I talked about missing regulations and missing schedules. We haven't heard a lot about how this is actually going to be implemented, and I think that if and when it is implemented, it's going to lead to a lot of uncertainty. People have talked about that as well in terms of what this means on the ground to proponents. What does it mean to the public? What does it mean to first nations? Timelines are uncertain, the process is uncertain, public servants are probably uncertain, so I think things need to be thought out a little bit more thoroughly.

Should the subcommittee not take on our first recommendation, we would, as the alternative, ask that part 3 at least be delayed until regulations and schedules can be produced and people can review them properly. I think the one regulation that no one's heard anything about, the project list regulation, is really pivotal to understanding the legal, scientific, on-the-ground, economic and profit implications of the rest of this new act. It would really be a shame to see it introduced at the last minute and just thrown in without any consultation on it.

Related to this, another recommendation aims at increasing the transparency and accountability of the process. Just last year the Government of Canada signed onto the open government partnership, an international partnership to adhere to accountability, transparency, and open dialogue on controversial issues. While they have made some progress on that in terms of freedom of information, there's been a lot of things in this process, in reviewing and revising environmental regulation, that have flown in the face of that. Again, to put faith in the process, both from an environmental organization and a lot of proponents' perspectives, clearly, this proposed legislation is creating a lot of controversy. A lot of people are interested in it. We need to know more about it and where it's coming from, why it's so urgent. If it is so urgent, why weren't we doing it before when we were doing the review of CCEA?

Finally, our other main recommendation is that in drafting any environmental assessment and environmental regulation legislation, it should take account of the top ten principles for strong environmental law that West Coast Environmental Law and some of our partners released in February. These include things like smart regulation. We released the principles in February because we knew that changes to environmental assessment were coming. We are currently in the process of creating a report card for this bill and whether or not it matches up to those principles. Not surprisingly, we don't think it does, but we do think that working towards those principles—those are public participation, increasing the legitimate role for aboriginal peoples, and the sustainability approach.... In fact, the sustainability approach is a key one, because we see a lot of compartmentalization in the new CCEA 2012 and not a lot of understanding or respect for the fact that we live in ecosystems that are connected. That's not just in CCEA 2012, but in the rest of the bill as well.

You'll see in my written brief that we actually have ten recommendations that are small amendments to the existing part 3 of the legislation that we would like to see made if that part is goes forward. It's things like allowing the National Energy Board to retain its independence, rescinding proposed amendments to the Fisheries Act, and going back to the drawing board with those. It also includes some things about species at risk, permits, and retaining the current triggering approach for environmental assessment rather than going to a project list. There are some other ones in there.

I think I'm probably running out of time No? I can keep going. All right.

[Tony Maas]

Thank you to the Chair, first and foremost, and to the members of the committee for the invitation to speak here today on part 3 of Bill C-38, the budget implementation bill.

As introduced, my name is Tony Maas. I am the national freshwater program director for WWF-Canada. We are, as I think most folks know, one of Canada's largest and oldest conservation organizations. We have staff and offices from coast to coast to coast. Importantly, our work is science based and it is solutions oriented.

I'll talk a bit about our freshwater program as context. Our overarching aim is really about protecting and restoring the health of aquatic ecosystems so that we and future generations can benefit from the many values they provide, whether that's clean water and recreational opportunities, or habitat for fish and water fowl.

With this as context, and given my area of expertise, I'm going to focus my comments primarily on changes to the federal Fisheries Act that are proposed in Bill C-38.

The Fisheries Act is widely recognized as one of the strongest legal tools that Canadians have to protect fish and their habitat, including the water that the fish depend on, water that needs to be of a quality that doesn't poison them, water that shows up at the right time and in the right quantity to maintain their habitat. This, of course, is the same water that we all drink and swim in and use in our recreation. So in addition to protecting fish and fish habitat, the act has provided an extra layer of security around the water resources that we all depend on.

Is the act and how it's currently administered perfect in my view? Well, no, actually it's not. I think there's plenty of room for improvement. But the opportunities for improvement relate largely, in my mind, to how it is applied in a management context, not to the fundamental principle of protecting fish and fish habitat—which certainly holds water today more than ever, given that the numbers of endangered fish across the country continue to grow, and pressure on our rivers, lakes and wetlands mounts.

Let me give you three specific concerns relating to the changes to the Fisheries Act proposed by Bill C-38. First is the narrowing of the act's scope to include only commercial, recreational, and aboriginal fisheries. Creating a system that is based on determining what rivers and lakes deserve protection means, by definition, that some will be left without protection under the act. Does this mean, for example, that wilderness waterways that are not presently fished by commercial or recreational interests or aboriginal peoples get left out? What about streams that are currently being restored to support future recreational fisheries? There's a lot of hard work, including work by our own organization, and dollars that go into restoring the great ecosystems with the intent of having viable recreational and sport fisheries.

So my point is that while the terms “commercial”, “recreational”, and “aboriginal” fishery are defined in Bill C-38, the complete lack of detail on what the scientific basis and decision-making process used to establish which fisheries and waters are in and which are out makes it very difficult to assess the impacts of these changes and what they will mean on the ground.

Our second concern is the shifting of the rationale for prohibition from harmful alteration and destruction of fish habitat—which I'm sure that we in this room all know as the HAD provision—to a test of serious harm defined as “the death of fish or permanent alteration or destruction of habitat”. This would shift the litmus test from a precautionary approach based on accumulated expert scientific advice concerning potential impacts of a project or undertaking to an as of yet scientifically undefined test of serious harm and permanent damage. Again, I'm not saying these new terms cannot be defined by science, but I do assert that when it comes to management and protection of natural resources, like the fisheries and the ecosystems that sustain them, a clear definition of foundational scientific concepts and criteria should proceed, not follow, legal and policy reform.

Finally, our third concern is the exemptions and delegation of responsibility. The provisions in the act that allow for the exemption of certain works, undertakings, and activities, and certain fisheries or waters have the potential to significantly undercut the important influence of scientific experts in the civil service who have the required knowledge to properly assess the impacts of a project and the sensitivities of particular habitats and waters.

On the issue of delegation, I believe there's significant benefit actually in working with provinces and territories to make implementation of the Fisheries Act more efficient, and I would observe that many delegation arrangements already exist to allow provinces and territories—and in the case of Ontario, where I live, the conservation authorities—to administer authorizations under the act. It is unclear, however, what if any additional responsibilities are contemplated for provinces and territories under the changes proposed in Bill C-38 and, more importantly, whether the provinces and the territories—and in the case of Ontario, where I live, the conservation authorities—have the capacity, particularly in these uncertain economic times, to take on additional responsibilities without additional resources.

For me, what is more concerning about the delegation possibilities in the proposed bill is the potential to also allow for delegation to industry or developers the responsibility to authorize adverse impacts on fish and fish habitat, which ostensibly is leaving the fox in charge of the hen house. Such authorization should remain in the hands of government agencies that are by definition bound to make decisions in the public interest.

I'll wrap up with a few more comments that are largely related to the process by which the changes to the Fisheries Act are being brought forward. I noted at the outset that we as an organization are solutions based. The success of our solutions is very much a product of our efforts to create and sustain diverse and often challenging relationships and partnerships that cut across civil society, government and, most importantly, often business and industry.

I believe the process by which the changes to the Fisheries Act, and for that matter, changes to environmental regulations more broadly, are being brought forward through the omnibus budget bill stands to undermine the very important progress that has been made over the last 20 to 30 years in developing strong, functional partnerships between industry and NGOs. Businesses—at least those that we have worked with—recognize the importance of ensuring and enhancing their social licence to operate.

Strong environmental laws are a foundation of this social licence to operate. They allow industry to function knowing that they have the support of Canadians because governments have ensured that rigorous protections of our environments are in place. When we erode those protections, in my view we begin to erode the potential for businesses to operate in a sustainable way in this country.

If I can leave you with just one message, it is this. Improvements to administration of the Fisheries Act do not require the significant changes to legislation proposed in Bill C-38. They are of a nature related to management functions and those can be resolved without these reforms. To that end, I would finish by urging you, the members of this committee, to use your influence to separate the reforms to the Fisheries Act from Bill C-38 so that they can be addressed in a timely but thorough manner through a reasoned multi-stakeholder and, importantly, a science-based consultation process, so that we can together work towards the goal of creating solutions to protect and restore the health of our remarkable freshwater fisheries and the habitats and ecosystems that sustain them.

I thank you for your time. I look forward to your questions.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you, Mr. Chair.

I agree with you. I think this is about democracy. It's called a parliamentary democracy, and that's how our country was started. Parliamentary democracy means Parliament is supreme, and in this particular case Parliament is made up of the supremacy of Conservatives. I, for one, agree with all of the things that are in Bill C-38.

I think it's a great bill, and I have been out with the marching band since I got elected eight years ago, in front of this piece of legislation, wanting it for a long time. I can promise you that the 72% of my constituency that voted for me are behind me too, and that includes 1.7 million people who travel back and forth between Fort McMurray and other places in this country, including the young man who gave me a hug on the plane the last time I came, which was last weekend, from Newfoundland. He told me we were doing a great job and this was a great budget. I had never met that man before, but he gave me a hug. I thought it was a little weird too, but it was on the plane. And I hope he didn't hear that.

Just to let you know, it is about democracy, and we at this particular time are the people who are able to pass these laws. If you look back to when we were a minority government and we had the economic action plan—which included the largest rollout of infrastructure this country's ever seen, at $45 billion—guess who voted against all of those initiatives: every bridge, every road, every job that created? It was the NDP that voted against it.

So you can make promises and you can talk about things here, but when it comes to voting, that's when it comes down to the brass tacks. I do think there's a fundamental difference in philosophy and theory.

I have a couple of questions.

Mr. Noël, you mentioned we should take into consideration seniors and older people. I have a population with an average age of 29. A lot babies are born in Fort McMurray. There are a lot of babies in my riding. Not only that, but there are a lot of industrial accidents, because I have the highest proportion of males in the country, and they all work very hard, and they work in an industry in which there are accidents. Should those kinds of things be considered in the health care costs as well, not just the demographics of the populations, but things like young adults? Having babies is expensive. Should things like industrial accidents be included?

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

But I'll say to you that the Council of Canadians came into existence because of our fears for democracy at the time. It was framed around the free trade agreement, right or wrong, whichever way it went.

I think Bill C-38 has a more damaging effect on Canadian democracy today than anything I've seen since the 1980s. This is a huge bill that is about to force changes in law, in the laws that govern us, the laws for the protection of Canadians in food inspection, the environment, retirement security, employment insurance, and many, many other areas of the operations of our government.

Now, as you see...and members on the other side, I'll offer this to you: as we see our witnesses come in, the successive groups that have come in are a little bit like we are. We get a little testy because we're tired, but they're also starting to recognize the impacts of Bill C-38 and the potential problems.

I appeal to the government side to really honestly look into yourselves and think about what we're about to do here. Really consider it. Put the partisan stuff aside. All of us should do that.

We are at risk of doing severe damage in several areas of our country. We can debate it. We can go back and forth. I think that you are actually people of reasonably good will, overall, from my experience with you, but we are failing Canadian by taking this approach. We have to do better. The future of our country is hinging on several areas of this. You may agree or disagree on the environmental changes, but they're not getting the look they deserve and that Canadians deserve to have us take. We are not able to do our due diligence.

In the future, when they look back at this particular government, they're going to say that was the one single major failure: that they impeded the due diligence of MPs.

If anybody wants to comment, go ahead, because I'm done.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Thank you, Mr. Chair.

If you saw me furiously typing here, I was trying to collect my thoughts just a little bit, because we've been at this for a long time.

We've heard many times from the government members, and I'm not disputing their claims, but they talk about how this is not the largest budget bill, and that's a fact. They speak primarily of previous budgets of their own as far as the number of pages go, but it almost misses the point, because witness after witness and organization after organization here at these hearings has raised concerns about Bill C-38. They see Bill C-38 for what it is: it's a major offence to Canadian democracy.

[Anil Naidoo, Project Organizer, Council of Canadians]

Thank you.

Good evening. I want to thank the committee for inviting us to present.

My name is Anil Naidoo. I am here on behalf of the Council of Canadians, which is over 25 years old, with tens of thousands of members across every province and territory, and with chapters in almost 80 communities across the country.

To give you a sense of the organization, we take no corporate or government money, and therefore we feel we are able to speak independently in the interests of our members and the broader public interest, as we see it.

For full disclosure, the Council of Canadians is assiduously non-partisan, with members from every political party, but I took leave to stand as a provincial candidate for the NDP in the last Ontario election.

The council's campaigns are focused on water, trade, public health care, energy, as well as sometimes carrying forward our members' concerns around issues of democracy and social programs.

Right now our chairperson, Maude Barlow, is travelling around the Great Lakes, holding town halls to protect this most precious body of water, and we are simultaneously hosting a mining conference in Vancouver.

Over our 25 years we have held meetings across the country on the Canada-EU free trade agreement, medicare, bottled water, and many issues of concern to Canadians and our members.

Personally, I am highly focused on the issues of water and want to note that Canada had an important breakthrough on Tuesday when this government recognized the human right to water and sanitation at the United Nations Rio+20 negotiations. The council has been advocating for the human right to water for the past ten years, internationally, as well as pressing successive Canadian governments at home. We are pleased to have been part of the campaign to get the UN to recognize the human right to water. Canada joining the international community is clearly a positive step forward.

Recognizing the human right to water is in the public interest, but we believe those parts of Bill C-38 that deal with water are not. The bill contains amendments to acts related to environmental assessment, fisheries, parks, navigable waters, not to mention cuts to front-line programs at Environment Canada and decades-long monitoring programs studying the health of our lakes, effluent monitoring, and water use efficiency.

I know that others, including former Progressive Conservative Minister Tom Siddon, have presented many of these concerns to you already, so let me suggest that what this process is asking you to do as members of Parliament I believe is untenable. To try to assess, in a matter of mere hours, the impacts of the profound changes to 70 acts of Parliament contained in these 420 pages is in itself daunting, but it is even more complicated than this. Each paragraph impacts whole laws, which are themselves massively complex, as you know.

We should not expect members of one committee to be asked to pass judgment on whether these changes are in the best interests of Canadians. In your situation, I would appreciate more time before making such major decisions regarding these myriad acts and changes. Even a short bill of a few paragraphs, such as Bill C-36, would have a fuller review.

We all know that in one form or another, majority governments get bills passed. This is not the issue. The issue is whether members of Parliament, including Conservative members, get the time to grapple with the issues, suggest constructive changes, and are confident when they vote that they are representing the broader interests of their constituents. This ultimately goes to Canadians being able to have confidence in our system of government.

Right now, people are losing confidence in politics—you know this—and I believe the reactions you are seeing to Bill C-38 are only going to build if there is no political solution to address these types of concerns. Our system is based on convention and tradition, and I believe this bill, while legal according to the letter of the law, does challenge the spirit of our parliamentary system.

I also want to address the framing of this bill. I believe that if we are truly focused on jobs, growth, and long-term prosperity, we must be focused on the environment as the foundation of a healthy economy and society. The environmental legislation we have currently is not frivolous. It was deemed necessary by previous members of Parliament and governments. The threats to our environment are now enhanced, as you all know, not diminished.

I'm asking you to send this piece of legislation back and ask for more time and thought to be put into the implications, and to ask for the consideration that you need to do your job as members of Parliament the way that we, as Canadians, expect you to do it. I know that many other witnesses would also join me in supporting you, if that were your recommendation.

Thank you.

Housing

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

Mr. Speaker, before the budget was tabled, I asked the minister what she intended to do when a number of financial agreements between the federal government and housing co-ops and non-profit housing organizations expire.

She replied that the government was making investments in new social housing, including renovations for 21,000 seniors and 415 projects for persons with disabilities. However, I have still not been given an answer about existing social housing.

Almost all social housing built before 1994 was covered by long-term financial agreements with the federal government. These subsidies ensure that low-income renters can pay rent that is geared to income. With the expiry of these agreements, many renters will suffer because their rents will double or even triple.

There is nothing for social housing, nothing for affordable housing and nothing for the renewal of operating agreements for housing co-operatives and non--profit housing organizations in the 2012 budget or the famous Bill C-38, which is a real Trojan Horse.

There is nothing to help the more than 1.5 million households, or 13% of all Canadian households, that have core housing needs or that do not have access to decent housing that they can afford. The 21,000 people who received help from the government represent just 1.4% of all households that do not have access to affordable housing.

I have a hard time believing the government when it says it is investing in social housing. What is more, the budget makes no mention of social programs, including homelessness and housing, although there is a real need.

The City of Montreal, the Union des municipalities du Québec and the Federation of Canadian Municipalities all made requests of this budget, but all those requests were ignored. Unfortunately, there is still no long-term investment plan for housing. A petition was tabled in the House of Commons two weeks ago calling on the federal government to provide the necessary funding to renovate, improve and modernize all social housing.

I would like to know why the federal government did not allocate any funding to social housing in its budget, in order to help renters affected by the end of these subsidies. At the same time, I would also like to respond to the parliamentary secretary's question about why the opposition never supports the government's initiatives in the area of social housing.

I would answer that it is impossible for us to support initiatives that will help only 21,000 people, when there are over 1.5 million households that need assistance. Conversely, why does the government present initiatives that do not meet the needs of more Canadians?

[Karen Wirsig, Communication Policy, Canadian Media Guild]

Thank you very much.

My name is Karen Wirsig. I'm the communications coordinator for the Canadian Media Guild, a union that represents 6,000 media workers across the country. Thank you for inviting me to appear before you today.

Bill C-38 is a massive undertaking that changes an astounding number of pieces of legislation to enact a budget that itself makes fundamental changes to what our government does and how it does it.

It's inappropriate, in our view, that this budget implementation bill covers substantial legislative changes in a number of areas, including old age security, employment insurance, and environmental protection. More study, opportunities for public involvement, and transparency would be possible if such changes were dealt with under separate bills.

In this context, the elimination of the Canadian Artists and Producers Professional Relations Tribunal and the shifting of its responsibilities to the Canada Industrial Relations Board is not particularly momentous, as I think Alain pointed out. Although details are scarce on how these changes would be enacted in practice, we urge the government to ensure that the CIRB has both the resources and the expertise needed to deal effectively with the issues that have come before CAPPRT in the past and to address its existing files at the CIRB in a timely manner.

I'd also like to take a few moments to talk about the impacts of other budget and Bill C-38 measures on the lives of cultural workers in Canada.

Over the next three years, $191 million is slated to be cut from Canadian heritage programs. Included in this are disproportionate cuts to funding for CBC/Radio-Canada, Telefilm, and the National Film Board. Not only will this shrink opportunities for cultural workers and diminish a vibrant sector of our economy, but the obvious corollary is that Canadians will have fewer opportunities to see and hear ourselves and our stories on our screens and radios. For individual Canadian artists to thrive in our vast and diverse country, institutional supports—including our public broadcaster, film funding agencies, and museums and performance spaces—are essential.

Looking at the planned cuts to CBC alone, we see the disappearance of regional music recording facilities and production assistance. That is causing great concern, especially within the legendary music scene of Newfoundland and Labrador. CBC music producers, recordings, and live broadcasts have helped nurture regional and national music scenes that contribute both to our identity and to our economy. Because of the drop in funding, CBC is also planning to close the only TV production studio in Canada east of Montreal, the home of This Hour Has 22 Minutes, in Halifax. This country would not have a TV production sector without significant government supports, starting with the CBC.

We urge Parliament to examine its support for Canada's cultural sector with a view to reinvesting in the institutions that anchor artistic and cultural expression in the country. Later this year, the Canadian Radio-television and Telecommunications Commission will hold public hearings to renew CBC's broadcast licences. Tens of thousands of Canadians are already participating in a “Reimagine CBC” project. Canadians know that our stories, our diverse cultural experiences, and our ideas rely on public institutions such as the CBC to flourish.

We also know that the cultural sector contributes enormously to our economic well-being. For example, Deloitte and Touche found last year that the $1.1 billion the government has been giving CBC translates into $3.7 billion in economic activity in this important sector. The guild is very concerned that the government is backing away from national public support for culture.

Finally, I have a few words on how other measures in this bill will affect cultural workers. Proposed changes to old age security will primarily affect lower-wage Canadians who don't have a workplace pension. Artists and cultural workers in Canada are too well represented within this group. With the changes to OAS, these lower-wage workers will spend more of their later years struggling to put food on the table. This country needs a decent pension plan for all types of workers—union and non-union, employees and the self-employed. The planned changes to OAS move us in the wrong direction.

Further, the changes to EI are very troubling and will affect our own members who, along with 19,000 federal public servants, are being thrown out of work as a result of the cuts in this very budget. Employment insurance is a plan we all pay into. We rely on it to be there in critical times. It should not be considered the same as general revenues. It's a public trust with a specific mandate, and changes must be made with great care and much consultation among the people who pay into it.

The changes to the definition of an acceptable job and the reduction in benefits to those in higher unemployment areas essentially serve to reduce access to much-needed benefits for unemployed Canadians. Furthermore, the changes to the appeals process stand to create even more delays for Canadians who challenge a denial of benefits. In effect, you are telling workers not to bother appealing, thus giving up on an insurance system they pay into. This feels like a naked cash grab.

With all of the changes in this omnibus bill, the government is provoking widespread anger as more Canadians feel the pain of economic injustice. The polarizing effects of this approach may well lead to situations and consequences that the government hasn't foreseen and cannot control.

Thank you.

[Linda Silas, President, Canadian Federation of Nurses Unions]

Good afternoon.

I am president of the Canadian Federation of Nurses Unions. The CFNU represents close to 160,000 nurses working in hospitals, in nursing homes, in homes, and in our communities.

I thank the committee for providing us this opportunity to appear. I have to say that it reminds me of my days in the emergency room, when we didn't know what would come through the door. Nowadays we don't know what kind of invitation we will get overnight. We rushed to prepare for this.

We will focus on health care, of course, and add our voice to those who are critical of the omnibus nature of this bill. We would ask that non-budget-related items be removed from the bill.

I will focus on the December 19 announcement by Minister Flaherty in regard to the size of Canada's health transfer until 2024, which is in part 4 of this bill. The announcement came as a surprise to every health care stakeholder, and I would say to every premier in this country, because of the Speech from the Throne one year ago, which said:

Our Government is committed to...working with the provinces and territories to ensure that the health care system is sustainable and that there is accountability for results. It will maintain the six percent escalator for the Canada Health Transfer, while working collaboratively with provincial partners to renew the Health Accord and to continue reducing wait times.

Let's build on the words “working collaboratively”. Bill C-38, part 4, is unilateral, and does not go in the spirit of the health accord. The bill does not maintain the 6% escalator. Instead, it will reduce five years later, potentially by half. Nor does this bill make any reference to a plan or accountability framework for the billions that will be transferred to the provinces for health care. Nor does it provide a framework for the redesign needed in our health care system.

Bill C-38 means two bad things for Canadians: the same old same old debate about health care, and a race to the bottom on services. We have population growth, aging, the use and cost of medical technology, the increase in drug costs, and inflation in general. Plus, hospitals across this country are working at over 100% capacity when the safest level for improving patient outcomes and containing costs of overtime, hospital-acquired infections, etc., is closer to an 80% capacity.

We need to improve access, quality, and service across the continuum and across this country. We need federal leadership on a redesign of our health care system. Provinces and territories have good intentions, but they cannot succeed on their own, and they cannot succeed in bending the cost curve on their own.

We are a land of successful pilot projects. It is time this changes. The federal government needs to be at the table for fostering prototypes for positive change and providing leadership, coordination, and cooperation to ensure a race to the top in terms of health care excellence.

I'm sure you share, as federal MPs, the desire to make it right for all your constituents. You do not want your constituents to fall behind. Well, in the absence of a stronger federal role in coordinating health care, you will find gaps in your community. If you live in Alberta, it's one of the best places in Canada if you need home care. But if you're like me and you come from the Atlantic provinces, it is the worst place, because it has the most expensive medication.

We are not alone in reaching this conclusion. The Senate committee reviewed the 10-year accord and concluded that we know what reforms are necessary, and now we need governments, including the federal government, to set up and create the initiative to propel transformation change. A report commissioned by Health Canada on March 2, 2012, just a few months ago, said the same thing.

We ask from this committee that Bill C-38 be amended to ensure that the 6% escalator clause is there for 10 years, followed by an extensive review, and that funding be tied to the new accord being negotiated, which will include accountability for progress towards shared objectives. We also recommend, because health care is not alone here, that the escalator for the Canada social transfer be the same size as the Canada health transfer here.

Some of you will ask how the federal government will afford this. Well, in my last recommendation we urge the committee to study taxation, and as a part of this study to look both at the impacts of tax cuts on Canadians' well-being and at the possible benefits of taxation, such as a financial transaction tax.

Thank you.

[Alain Pineau, National Director, Canadian Conference of the Arts]

Good afternoon. Thank you for the honour of inviting me to testify before you on behalf of the arts, cultural industries and heritage institutions from coast to coast.

My name is Alain Pineau, national director of the Canadian Conference of the Arts, which was created in 1945 by, among others, members of the Group of Seven. The CCA is a nonprofit, nonpartisan organization composed of members representing nearly 400,000 professionals in the arts, culture and heritage throughout the country. The perspectives that the CCA brings to questions of cultural policy are broad and long term. The unique contribution that CCA brings to public debate has been recognized by 46 years of financial support from the federal government.

The abolition of the Canadian Artists and Producers Professional Relations Tribunal and the transfer of its functions to the Canadian Industrial Relation Board is one of many amendment to other acts found in Bill C-38.

The Tribunal was created in 1993 under the Status of the Artist Act. That act governs professional relations, that is, labour relations, between self-employed artists and the producers who retain their services. It grants the exclusive right to negotiate scale agreements with producers. A scale agreement specifies the minimum terms and conditions under which producers engage the services of, or commission works from, self-employed artists in a specified sector.

Some of our members were concerned that the Canada Industrial Relations Board may not understand artists' issues and unique working conditions. We were comforted on Monday night when we heard heritage officials confirm that some of the tribunal expertise will be moving to the board and that decisions will be based on the Status of the Artist Act and on jurisprudence accumulated since the creation of the tribunal.

Maintaining the Status of the Artist Act as a basis for decision is what matters; whether the CIRB or the current tribunal decides on issues should not matter all that much. I will note that Quebec has taken a similar path in the administration of its own status of the artist legislation, and without any negative repercussions.

To sum up, given the guarantees provided by the government, this specific aspect of Bill C-38 is not of major concern.

This said, within the time allotted to me I would be remiss not to use this unique opportunity to raise areas of greater concern in the budget.

Like so many others, we rejoice in the fact that the parliamentary appropriations to the Canada Council have been spared. The CCA is a strong protagonist of the importance—for our economy, our quality of life, and our international reputation—of investing in artists and creators.

This being said, a reality check shows that, in constant dollars, parliamentary appropriations to the Canada Council on a per capita basis have actually declined somewhat between 1990 and 2010. Obviously, given this renewable and non-polluting resource, we need to make more efforts if we don't want to miss opportunities to invest in Canadian creativity.

Cuts in the audiovisual sector will have repercussions on the whole production sector in Canada. These cuts have many people, including the Quebec Minister of Finance, worried about the impact on the ecology of the system. Cutting 10% to Telefilm Canada, the NFB and the CBC's budgets, not to mention the cumulative effects of past restrictions not yet absorbed, means breaking the balance between creation, public money and private investments. These public funds are often used for productions and for research and development that cannot rely on private money. We also emphasize that documentary filmmaking, a genre for which Canada has earned an international reputation, is particularly at risk.

There is reason to rejoice in the fact that the budgets of the national museums were also spared, but the cuts to Library and Archives are major and widespread. Daniel Caron, librarian and archivist of Library and Archives Canada, is quoted today as saying that “the new environment is totally decentralized and our monopoly as stewards of the national documentary heritage is over”. This is troubling.

Archivists, a group not particularly prone to terrorism, have risen in protest to defend the budget of $1.7 million for the national archival development program, which is very important for future historians and researchers. It is ironic that as we celebrate the War of 1812, a founding moment of our history too long neglected, and as we prepare to celebrate the 150th anniversary of our country, we have to fight such small battles in the fields of history.

Several other budget cuts will jeopardize the strength of a complex sector that is so important in the knowledge and creativity economy. I will mention just a few: severe cuts to Statistics Canada, where the last remains of the culture statistics unit, which was formerly highly regarded internationally, are disappearing; the elimination of the Cultural Human Resources Council and the abandonment of its programs; and cuts to the Canadian Music Fund that will weaken an industry that has already been undermined.

Dear members of Parliament, I thank you for your attention. I will be happy to answer any question.

[Alain Noël, Full Professor, Department of Political Science, Université de Montréal, As an Individual]

Thank you.

Thank you for inviting me. I am appearing today in my personal capacity, but also as a professor of political science who has been working for several years on subjects like the architecture of Canadian social programs and transfers, the issues I have been asked to address today.

I will start by saying I was a little reluctant to accept this invitation. I was sceptical about the possibility of a real discussion of a bill like Bill C-38, which is very long and lumps together a large number of very important issues, and which seems to have been passed precipitously. I decided that I could at least come and share that impression with you and comment briefly on the division I was asked to address—and I am glad there is only one: division 17 of part 4, which deals with changes to the Federal-Provincial Fiscal Arrangements Act.

Included in that division are two provisions relating to the Canada Health Transfer. In both cases, those measures had already been announced. The first provision involves allocating the Canada Health Transfer on a strictly per capita basis starting in 2014, and no longer using the value of the tax points transferred in 1977-1978. I will come back to this later. The second provision deals with the ceiling, starting in 2017-2018, on the growth of the Canada Health Transfer, based on economic growth. The two measures are very different, but they reflect the federal government's withdrawal from preserving our health care system, as well as a particular idea about redistribution across the federation.

We will start with the second one, which is probably the most important: the ceiling on growth based on economic growth. I will simply say that in order to evaluate that decision, that measure or approach, we have to understand where we are coming from, in Canada. We have to understand that the role of the federal government in health care funding was originally defined by the idea of the costs being shared equally by the federal government and the provinces.

In fact, there was never really equal sharing, but in 1976, the federal government did contribute 38% of health care costs paid. In 1980, that contribution fell to 25%. It declined considerably starting in 1995. We will recall that this was the year when the federal government took draconian measures to eliminate the public deficit. In 2000, the federal government's contribution to health care funding was a mere 10%. We have gone from a 38% contribution in 1976 to a 10% contribution.

In the first decade of this century, the Government of Quebec established the Commission sur le déséquilibre fiscal, the Séguin Commission, of which I was a member. The commission's purpose was to review all transfers within the Canadian federation. At the same time, the Romanow Commission was proposing that we return to a 25% financial contribution to ensure that the federal government continued to play its role.

By making growth in the federal transfer dependent on economic growth, we are instead moving toward a 19% contribution, which would be a step backwards. This measure is going to create a further fiscal imbalance in Canada and lessen the possibility of the federal government participating in broad policy directions in the health system.

The per capital allocation is also a measure that is far removed from the origins of our health care system. It completely separates needs from funding. It is an allocation that will essentially favour Alberta at the expense of virtually every other province.

In conclusion, I would recommend keeping a link between growth in health spending and the federal contribution, first.

Second, I would recommend that needs be taken into account, possibly by taking into account the number of seniors in the provinces.

With respect to my third recommendation, I have not talked about it, but we could come back to that in the discussion. It is that this also be reviewed in light of the equalization program, on which a ceiling was also imposed in 2008, which makes the mechanics of redistribution much less effective in Canada.

Thank you.

[The Chair, Conservative, James Rajotte]

I call this meeting back to order. I ask that all witnesses and members of Parliament find their seats, please. We have another panel and another hour-and-a-half session.

We are continuing our discussion of Bill C-38, the budget implementation act. We have another six panellists during this session.

We want to thank all of you for being here. We are a little bit behind time because we had to have a brief meeting prior to the last panel, but we want to thank all of you for coming in.

First of all, we have

Alain Noël, who is a professor in the Department of Political Science at the Université de Montréal.

Welcome.

We also have with us the Canadian Conference of the Arts, with Monsieur Alain Pineau, national director; the Canadian Federation of Nurses Unions, with Linda Silas, president; the Canadian Media Guild, with Ms. Karen Wirsig; the Canadian Museums Association, with executive director John McAvity; and the Council of Canadians, with Mr. Anil Naidoo.

You each have up to five minutes for your opening statement. We'll proceed in the order that I've read to you.

We will begin with Mr. Noël.

You have five minutes.

Opposition Motion—Employment Insurance

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I would like to start by saying that I have the honour of sharing my time with the hon. member for LaSalle—Émard.

Today we are discussing the motion regarding the proposed changes to the employment insurance system. This motion is a wonderful initiative from my colleague from Hamilton Mountain. This issue is very important to the people in my riding of Chambly—Borduas, who are concerned for many reasons that I will list today.

The first reason is that the changes will require daily proof of job searches. At the same time, job seekers will receive job offers via email. I addressed this issue earlier by asking a question to my colleague, but I would like to discuss it a little more.

In my riding, one of the municipalities, Marieville, is experiencing a problem that many citizens and even the mayor, Alain Ménard, have had the opportunity to tell us about. It is a matter of access to the Internet. This is not a rural municipality; it borders the greater Montreal metropolitan area, on the south shore. People have noticed a big problem. They have tried to get help from the CRTC to improve digital Internet services in the region. Increasingly, different types of Internet services are being required, and people in rural areas have a hard time accessing them. This is particularly true in Marieville, which is in my riding.

The reason why this is relevant here is that, as I said, we are talking about sending job offers by email, but not everyone has access to the Internet. It goes without saying that, often, people who have lower-paying, less stable jobs—which is often the case for people who are receiving employment insurance benefits—cannot necessarily afford Internet access, even if they live in urban areas where Internet access is easy to obtain. It is therefore hard to see how these job offers will help people.

It is said that people who cannot afford to pay for Internet access can go to the municipal library, for example. However, this presents another problem that was again pointed out to me by the people of my riding and that has to do with the municipal library in Saint-Basile-le-Grand, where I live and where my office is located.

The municipal library offers excellent services, but, unfortunately, it is going to have to reduce the services and Internet access it provides as a result of cuts to the community access program. This was an excellent program that was renewed every year in the budget. It did not just help community organizations, but also municipal libraries. These are very important tools for young people and people with low incomes who cannot always afford such luxuries.

When cuts were made to this program and this service was reduced, once again, people found themselves in a situation where they have one less way of accessing the Internet. This is one of the problems. When we look at the problems this is creating in my riding, we can see why these changes are of such great cause for concern.

The other situation, which my colleagues have addressed many times today in the House, and which I will address again to discuss how it applies to my riding, is seasonal work in tourism, agriculture and other areas. Workers in these sectors have to rely on employment insurance during the off season, especially in tourism, which is very significant in my riding. I am thinking about the city of Chambly, where one attraction is Fort Chambly, a Heritage Canada-recognized site run by Parks Canada. Many tourists from across Canada come to see it. From what we heard in the Standing Committee on Canadian Heritage a few weeks ago, it is one of the most visited Parks Canada sites in the region and in Quebec during the summer.

Jobs there are filled by seasonal workers, who work in tourism of course because many of the tourism programs do not operate during the winter.

These people will not only have to look for another job, but they will have to accept a job that pays less than Parks Canada has been paying them at Fort Chambly.

What is more, in the same bill, the Trojan Horse that is Bill C-38, the government also proposes cuts to Parks Canada that will cause even more problems at Fort Chambly. They knew for weeks that there would be significant cuts to this heritage site in my riding.

This heritage site is suffering a double whammy, not to mention the negative impact on the employees who work at this site during the summer season.

Aside from tourism, there is also agriculture. Although my riding is located between urban and rural regions, on the south shore of Montreal, there are still some farmers in my riding. The work they do is extremely important. This work is very interesting, because it is focusing on sustainable development. These people will have to cut back on their work in this extremely important field for environmental reasons. Their system will have to be completely transformed in light of the proposed changes. I am thinking in particular of wine producers and all kinds of agricultural producers who are not necessarily in my riding but who are in the greater Montérégie area. This will have a negative impact on them.

Incidentally, up until now, I have focused mainly on employers—people who provide services. We often hear that workers have contributed to this system and that they are entitled to use it, but the employers have also contributed to this system and have the right to be defended.

Therefore, it is important to point out that employers will also be punished by the proposed changes. Some will have to close their doors or points of service because the people they depend on to do the work will not return to their former jobs if they are forced to look for other seasonal jobs. At some point, workers will want a certain amount of stability.

If I leave my seasonal job for minimum wage work that is more regular, as required by these changes, it is hard for me to see why I would jump from job to job. This will also punish employers. I believe that it is very important to point this out.

Many business people came to my office to see me this past week, after these changes were announced. Before I am told that it is not true, I would like to give a specific example. I had the opportunity to speak with Ms. Larose, whose husband, Mr. Bélisle, owns a company in Mont-Saint-Hilaire, in my riding, and employs six seasonal workers. The company is called Irrigation Pro-Jet and it will have to close if the proposed changes are introduced. That is the perspective of one businessman.

Small and medium-sized businesses will be adversely affected, and workers will also be negatively impacted.

It is extremely important to point out the negative impact this will have on small and medium-sized businesses and on employers. I hope I have refuted the specious argument that we do not defend employers' interests. It is in their interests as well to prevent these changes.

That is why I am proud to support the motion of my colleague from Hamilton Mountain and to oppose these illogical changes that are harmful to our society.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you, Mr. Chair.

Thank you to the witnesses for coming today. I found it very interesting, indeed.

Mr. Jackson, after our last visit together at the committee for justice and human rights on Bill C-10, which was not that long ago—I enjoyed that thoroughly as well. I was hoping you'd come out on Bill C-38 and be very positive in relation to some of the measures we've taken in this particular bill. I'm basing that on your interest in aboriginal rights and aboriginals and freeing them from poverty.

I'd invite you up to Fort McMurray to take a look at what's going on there. We have 300 very successful aboriginal businesses in the area. Syncrude has a workforce of 1,200 people who are aboriginal—14% of the workforce. They have a pro-aboriginal hiring policy. So does Suncor, with 9% of their workforce being aboriginal, another 700 to 800 people.

To give you an example, one of the bands in the area, Fort McKay, has 600 members, and their businesses did $440 million in sales last year. The aboriginals in my area are doing very, very well.

They are going to do very well indeed under Bill C-38, because of course we have regulatory approval that has been fine-tuned. You don't have a one project, one review situation in Canada; you have 27 reviews and one project, usually, which take up to 8 to 14 years, and now we're looking at a two-year limit.

So I thought you would come out very positively about what this budget is going to mean to aboriginal Canadians, because of course most of these reviews will be in ridings and areas with 90% aboriginals.

Saying all of that, I appreciate all the work you have done. Of course, you are one of the most well-known prisoners' rights advocates in the country. Thank you for your comments today.

In relation to Mr. Turnbull, you mentioned that you thought health care should be an equivalent service to all Canadians and of equivalent quality?