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.

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

Thank you, and welcome, Mr. Macdonald. I appreciate you being here.

I'm going to have a couple of comments, and it's not necessarily a question directed to you, so don't feel you have to jump in. I will get more specific at the bottom.

When we look at this action, one has to wonder why the Conservative government is changing the Constitution in these three territories to in fact increase control over the financial affairs of the territories, without public consultation, by putting it through Parliament in Bill C-38. I said yesterday, when I was starting off prematurely, that it strikes me as not being consistent with the government statements that the fourth pillar of their northern policy is improving and devolving northern governance. In fact, the territories, from what I understand, are on record requesting the elimination of borrowing limit provisions. So, again, one might wonder why the Conservative government won't give the territories the same type of respect that they give to the provinces.

To my mind, these changes increase almost a colonial-style governance and control over the territories, and I'm left to wonder why the government won't accord the northerners the same kind of respect they do other provinces in the formation of this and the planning of this.

Was there a financial problem, a financial risk, or something that generated this, that you know of?

[Randy Kamp, Conservative, Pitt Meadows—Maple Ridge—Mission, BC]

On a point of order, Mr. Chair, it's my understanding that the terms of reference for this committee were to look at part 3 changes in Bill C-38. I believe that's in part 4.

[Scott Brison, Liberal, Kings—Hants, NS]

But if these proposed changes in Bill C-38 weren't enacted, what's the concern that PPP Canada could be considered an agent of the crown for any of these activities...?

What do these changes accomplish from PPP Canada's perspective?

[The Chair, Conservative, James Rajotte]

I call this meeting to order. This is the 60th meeting of the Standing Committee on Finance. We are being televised.

Our orders of the day are pursuant to the order of reference of Monday, May 14, 2012. We are studying Bill C-38, An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures.

Colleagues, as you recall, last night we were still discussing part 4 of Bill C-38. This morning we are starting with division 3. Division 3 deals with PPP Canada Inc.

We have two officials with us here this morning for this division. We want to welcome them to the committee.

If either or both of you have an opening statement or an overview of this division, please go ahead, and then we'll have questions from members.

[Randy Kamp, Conservative, Pitt Meadows—Maple Ridge—Mission, BC]

Thank you, Mr. Chair.

Thank you, Ministers, for appearing.

Let me start by thanking you for your work on behalf of Canadians. I know it's not an easy job.

Minister Oliver and Minister Kent, you can relax for the next seven minutes or so because I'll be directing my questions to Minister Ashfield.

Let's start with what we do know, and that is that Canada's constitutional documents provide that the jurisdiction for seacoast and inland fisheries falls under the federal government. By way of your appointment as Minister of Fisheries and Oceans, it's your job to manage those seacoast and inland fisheries.

We've had a Fisheries Act for most of the time since Confederation. I think the bulk of it was written in 1868. The obvious question that occurs to me is, why change that? Or, to ask it another way, what frustrations have you and your officials experienced in your obligations to manage seacoast and inland fisheries, and how do the amendments that are proposed in Bill C-38 help you to better manage fisheries in Canada?

[Peter Kent, Conservative, Minister of the Environment]

Thank you.

Good morning, honourable members.

Mr. Chair, I am pleased to be here this morning as you commence your study of Bill C-38. I will focus my remarks on proposals for a new Canadian Environmental Assessment Act, as well as important changes to the Species at Risk Act and the Canadian Environmental Protection Act, 1999.

Some comments during the debate about this bill have emphasized the proposal to repeal the current Canadian Environmental Assessment Act. This is not accurate. The current act will be repealed and, I must emphasize, replaced with the proposals in Bill C-38 for new and effective environmental assessment legislation.

Environmental assessment is a key part of my portfolio. It's an important part of the government's plan to strengthen environmental protection today and for the benefit of future generations of Canadians.

This is why we have protected funding for the Canadian Environmental Assessment Agency at a time of fiscal restraint. Despite what the media has reported, there are no cuts to the agency's funding. In fact, the agency's budget will increase by $1.5 million.

Sufficient and stable funding, when combined with the amendments two years ago to the Canadian Environmental Assessment Act, have laid the foundation for the fundamental changes proposed by Bill C-38. These changes will make the process more predictable and timely, reduce duplication, strengthen environmental protection, and enable meaningful consultation with aboriginal peoples.

As my colleague, the Minister of Natural Resources, has pointed out, these are the four pillars of responsible resource development. Some may erroneously view these as conflicting objectives. I do not. They are at the heart of Bill C-38 and the new environmental assessment process. I'm confident that Canadians will benefit from timely, high-quality environmental assessments that avoid duplication and needless double effort with provinces.

Bill C-38 will strengthen protection of our environment. With the time available I want to provide members of the committee with some of the highlights.

First, I've spoken in the House and elsewhere about the importance of enforcement. Bill C-38 builds on the past work of this government. This issue first came to the forefront through Budget 2008, which stated that:

Environmental laws alone are not enough to guarantee a cleaner, better environment. These laws also need to be enforced.

My predecessor followed through with the Environmental Enforcement Act that was passed by Parliament in 2009.

Bill C-38 builds on this excellent legislation by closing the enforcement gap for environmental assessment. The new Canadian Environmental Assessment Act creates a decision statement that will include enforceable conditions. These conditions are backed up by inspection powers to confirm that mitigation measures are being implemented. There are penalties ranging from $100,000 to $400,000 for violations.

Legislation is just part of the solution. The government has permanently increased resources to environmental enforcement by $21 million annually to ensure that we have the officers, the equipment, the forensic science, and the tools to do the job.

Today, there are 50% more enforcement officers than there were just five years ago. They are stationed in offices across the country. They are working in the fields to detect those who violate our environmental legislation, and take action against them.

These officers will be able to inspect and take action on violations of the Canadian Environmental Assessment Act. These new enforcement provisions are complemented by a requirement for a follow-up program after each and every environmental assessment. These programs verify the accuracy of an environmental assessment's predictions and determine whether mitigation measures are working as intended.

This is the way we will identify environmental results. It's also a means to learn and build on past successes and avoid past mistakes. It is a means to improve the practice of environmental assessment.

The bill also includes new authority for the Minister of the Environment to launch regional environmental assessments in cooperation with other jurisdictions.

Currently, the act is restricted to a single-project focus. It is a challenge to assess cumulative effects of multiple projects and activities in a region experiencing significant development. The requirement to assess cumulative effects is nevertheless carried out from the current act—it is carried over, rather, from the current act. It is an essential part of the federal regime.

What we are proposing to add, Mr. Chair, is a new tool for regional studies to deal with the issue of cumulative effects. The Minister of the Environment will have authority to establish an independent committee of experts to conduct a regional strategic environmental assessment in cooperation with another jurisdiction. The results of these studies can feed into the assessment of specific projects, and the gains therefore would be twofold.

First, we will have a deeper understanding of the ecosystem involved. This will translate into better environmental assessments and approaches to mitigation. Second, by doing much of the upfront scientific work, regional studies will streamline project-specific reviews.

Mr. Chairman, once again, the conclusion is clear. We are proposing changes that support the four pillars of responsible resource development.

With regional studies, we have a tool that will promote timely and predictable project reviews. We will gain information that strengthens environmental protection. By working with the provinces, we avoid duplication. Finally, such studies provide an opportunity for aboriginal peoples to make their concerns known, thus informing later consultations with respect to specific projects.

Mr. Chair, there has been much talk and great exaggeration and misrepresentation about the changes to environmental assessments under the responsible resource development initiative. I've brought forward some facts to correct the record.

First, and most important, the Canadian Environmental Assessment Agency's budget is not being cut. Second, with new enforcement provisions, mandatory follow-up programs, and a new tool for regional studies, we are enhancing—not gutting, as some would perceive—federal environmental assessment.

Mr. Chairman, I'd now like to speak about aboriginal consultations.

The environmental assessment process is uniquely situated to assist the Government of Canada with its constitutional duty to consult and, where appropriate, accommodate aboriginal groups when their rights might be adversely affected by a proposed project.

Environmental assessment, Mr. Chair, starts early in the planning of a project, when it is still possible to design changes to reduce impacts. Changes to the environment that affect aboriginal peoples, including their current use of the land and resources for traditional purposes, are one of the “environmental effects” specifically referred to in this bill. There are also logical points in the process to directly obtain input from aboriginal groups to learn of their concerns and to develop means to avoid or reduce negative effects.

For these reasons, the government will continue to integrate, to the extent possible, aboriginal consultations into the environmental assessment process.

Budget 2012, Mr. Chair, provides the Canadian Environmental Assessment Agency with $6.8 million per year to support consultations with aboriginal peoples. Of this, $5.3 million is a renewal of funding first provided in 2007, and it is now being topped up by a further $1.5 million in new money.

While the exact allocation of all these resources is still being determined, I can say that a significant portion will go directly to aboriginal groups involved in consultations. The remainder will be provided to the agency to support its involvement in consultation activities.

Mr. Chair, I want to assure all members of this committee that the federal government takes its responsibilities very seriously. This is why enhancing consultations with aboriginal peoples is one of the pillars of the responsible resource development initiative. Agency staff and review panels are engaging, and will continue to directly engage, aboriginal peoples in their communities.

As part of the responsible resource development plan, the government is also proposing some changes to the Species at Risk Act and to the disposal at sea provisions of the Canadian Environmental Protection Act, 1999. These changes allow legally binding timelines for permitting decisions to be set in regulations.

Amendments to the disposal at sea permitting process will also allow for permit renewals for routine, low-risk projects. They will change requirements to allow publication on the CEPA registry website, rather than in the Canada Gazette. This will create a more efficient and transparent process for issuing permits.

The Species at Risk Act amendments allow for longer-term permits and make the conditions for these permits enforceable. These changes will support effective protection of listed species, while allowing the government to issue authorizations for a time period better suited to large projects.

In closing, I wish all members of the committee well as they embark on this important study of the proposed Canadian Environmental Assessment Act, 2012.

Thank you.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Thank you.

I want to thank you for the opportunity to meet with the finance subcommittee with respect to responsible resource development. Accompanying me are the Hon. Peter Kent, Minister of the Environment, and the Hon. Keith Ashfield, Minister of Fisheries and Oceans.

We will all speak briefly about our shared interests in Bill C-38 before taking questions from the members.

Mr. Chair, members of the subcommittee, our government's top priority has always been to support jobs and growth and to sustain Canada's economy. Since we introduced the economic action plan to respond to the global recession, Canada has recovered more than all of the output and all the jobs lost during the recession. Since 2009, employment has increased by more than 750,000 jobs and is now more than 260,000 above its pre-recession peak. It's the strongest job growth among G-7 countries.

Natural resources have always been the foundation of Canada's economy, and that remains the case today.

Canada's natural resource sectors employ 760,000 Canadians. Furthermore, the resources sectors generate billions of dollars worth of tax revenue and royalties annually, helping to pay for government programs and services for Canadians.

Our resource strength is set to continue to expand well into the future. We currently estimate that over the next decade there is the potential for well over 500 new projects and over $500 billion in investments across the country in the energy and mining sectors alone. These projects will create an estimated 700,000 jobs and will contribute substantially to our country's economic prosperity. In fact, the numbers are growing as new opportunities are identified.

There have been suggestions that resource development only helps the west while hurting the east. This is inaccurate and divisive. Resource development, mining, forestry, and energy projects are happening across Canada, and they're helping every provincial economy.

In British Columbia they are rapidly pursuing the export of liquid natural gas, and three projects are moving forward.

In Alberta the oil sands are creating benefits across Canada, including Ontario's manufacturing sector.

In Saskatchewan they are increasingly pursuing their oil resources and potash, as well as uranium.

Manitoba has large hydroelectric installations that are providing cheap and clean energy.

Ontario is looking at the development of the Ring of Fire, a massive mineral deposit that has billions of dollars in potential.

Quebec, which has long been a mining and energy giant, is moving forward with their Plan Nord which would provide massive benefits to the Quebec government and each of its citizens.

New Brunswick has large forestry resources. Nova Scotia has offshore gas development. P.E.I. is investing in wind. Of course, Newfoundland and Labrador has benefited greatly from their offshore oil fields.

Last but not least is the north and its territories, which are largely untapped. The extent of their resource wealth is not fully understood, but its potential is enormous.

Of course, this is only part of the story. The resource sector does not operate in a vacuum; mines do not appear out of thin air. They require construction, huge capital investments, materials, and machinery. They require workers in every sector of the Canadian economy, especially in our manufacturing sector.

Jayson Myers, president and CEO of Canadian Manufacturers and Exporters, strongly supports resource development precisely because it helps our manufacturing sector.

To quote:

In total, [we] estimate that energy and resource companies invested more than $85 billion in major capital projects in 2011, and [we think those investments will] double over the next three years. ... These investments...will drive new business for Canadian manufacturers in a variety of sectors ranging from equipment, structural steel, and metal fabricating to construction materials and parts suppliers. They will provide opportunities for engineering and construction companies, processing and environmental technology companies, and services ranging from accommodation, food, environmental, and resource services, through to land management, trucking, and distribution as well.

This type of investment will take place across Canada, helping all sectors of the Canadian economy. That is why it is so important to ensure that Canada has the right conditions to attract global capital in our provinces and territories. Canada must compete with other resource-rich countries around the world for these job-creating investment dollars.

This is the fundamental reason why our government is committed to modernizing Canada's regulatory system. We need to ensure timely, efficient, and effective project reviews. This will keep us competitive with the likes of Australia and other resource-producing nations. We need a system that promotes business confidence and attracts investment while strengthening our world-class environmental standards. In short, we need responsible resource development.

Here's what this new legislation will achieve:

First, it will make project reviews more predictable and timely.

Second, it will reduce unnecessary duplication and regulatory burden.

Third, it will strengthen environmental protection.

Fourth, it will enhance consultations with aboriginal peoples.

To streamline and modernize our outdated regulatory system, we will take a whole-of-government approach. We want to put in place a new system of “one project, one review” that operates within a clearly defined time period.

Canadians understand that we do not have to choose between economic development and the environment. It is not an either/or proposition. A new poll conducted by Ipsos Reid shows that two-thirds of Canadians believe it is possible to develop our economy while respecting the environment.

The fact is our new plan will strengthen environmental safeguards, including tanker and pipeline safety. For the first time, it will provide enforcement of environmental assessment conditions under the Canadian Environmental Assessment Act. It will also strengthen enforcement with monetary policies respecting the National Energy Board conditions on new pipeline projects. So our changes make sense from both an economic and an environmental perspective. We Canadians have a wonderful new opportunity before us.

There is no better time to act than right now. We have to give ourselves every chance to compete for job-creating investment dollars from fast-growing markets in Asia and elsewhere.

We also know it is absolutely necessary to develop our resources in a responsible way. Responsible resource development achieves the balance we need. We will unleash the potential of our resource sector to create jobs across Canada while ensuring that our environmental protections are strong. That is what Canadians expect, and that is what our plan delivers.

Thank you, Mr. Chairman.

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

I did have to ask them a couple of things. Turning it on, I got.

Sir, when I see this government changing the constitutions of three provinces to increase federal control over the financial affairs of those territories, and that is being done without public consultation, by adding the changes to Bill C-38, it leaves me—and I'm not expecting you to respond to this part—with a sense of something that's trying to be snuck through. We have a 400-page document here.

I find it ironic, when one considers the fact that the stated fourth pillar of the government's northern policy is improving and devolving northern governments.

Do you have any further information as to why this has been enough of a priority for the government to add it to Bill C-38?

[The Chair, Conservative, James Rajotte]

I call this meeting back to order, the 59th meeting of the Standing Committee on Finance. We are continuing our discussion of Bill C-38, An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures.

We have with us here witnesses from both CRA and Finance. We want to thank them for staying with us tonight. We're on part 1; I believe we're just finishing it up.

I do have a note from Mr. McKay that he has a question.

Are there any other members at this point who want to be on the question list?

Okay, we'll start with Mr. McKay with part 1, please.

Opposition Motion--Budget Legislation

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

Mr. Speaker, I am pleased to rise today to support the excellent motion moved by the hon. member for Halifax. This motion states that the budget legislation guts the environmental assessment and fisheries laws. The measures included in Bill C-38 will leave Canada’s lakes, rivers, oceans, ecosystems, and fisheries at risk.

The disastrous report of the Commissioner of the Environment and Sustainable Development tabled on May 8 clearly shows that the Conservatives' track record on the environment has been very consistent—it is one of bad faith, mismanagement and contempt for statistics and common sense. What is more, the Conservatives have also acted undemocratically.

The Minister of Foreign Affairs admitted this week that when the government is not happy with something, it just gets rid of it. That is what the Conservatives did with the National Round Table on the Environment and the Economy. They decided to abolish it because the panel of experts dared to discuss a carbon tax. The round table will soon issue a report that shows that the government's lack of action to combat greenhouse gas emissions will be very costly for Canada, much more so than if it were to try right away to establish infrastructure and rules to decrease such emissions.

Because the government seems to be incapable of costing its current reduction plan or the Kyoto plan, I imagine that it will be very interested in this report by the National Round Table on the Environment and the Economy, unless it decides to muzzle the scientists once again, as it is so inclined to do.

This is 2012, the 21st century. The Conservatives are playing with the health and safety of Canadians. This government must immediately assume its responsibilities. Is it a question of greed, Nimbyism, incompetence, or all of the above?

Yesterday, in committee of the whole, the Minister of the Environment could not tell us which programs would be abolished by his department and what impact this would have on environmental protection. He was even unable to tell us the type of work that would be eliminated, the work of these thousands of public servants who will be let go.

If the minister himself cannot give us the answers, who else in this government can? Yesterday, we grilled the Minister of the Environment for four hours without obtaining concise, concrete and clear answers. That is rather disturbing, especially since the people want answers. Canadians want to be consulted, but everything about this government makes it impossible.

Why is this government refusing to do anything tangible about this? Examples, statistics, science all point to how serious this is. We have to act now. All the experts agree on that. Even the Commissioner of the Environment and Sustainable Development said so a number of times on Tuesday.

This government has responded by introducing a 431-page omnibus bill that is being decried by every environmental organization and even by former Conservative MPs who were responsible for some of the files. We have a 431-page bill that has a devastating effect on our cultural heritage, among other things.

The Standing Committee on the Environment and Sustainable Development and experts will not even get the chance to take a critical look at these changes. This is an insult to Canadians and to democracy. It almost feels like we are living in a dictatorship.

Although I could go on about the countless irresponsible and reckless aspects of this bill, I will focus on those concerning the environment, which is the subject of today's motion. Unfortunately, the only thing this government is trying to do is to destroy the environment and destroy progress. Soon it will destroy the economy with all of its destructive measures.

Instead of gutting all of our environmental protection measures and erasing all the progress that has been made over the past few decades—including with regard to the fisheries and the environmental assessments that have taken years to set up—this government should be showing leadership and enhancing environmental protection measures because we are running out of time. There are deadlines to be met.

Even the Commissioner of the Environment said last week that given the Conservatives' efforts or lack thereof, he doubted that the very minimal targets set by this government will be met at the rate we are going today. Is that any way to build a 21st century country? Is that any way to stimulate the economy and boost innovation in the private sector? This is truly quite alarming.

I can think of many positive examples. Consider Germany, for instance, where stricter environmental regulations have led to the growth of the renewable energy sector and helped create thousands of jobs, making the country a world leader in the area of sustainable development. The situation there is much more positive than it is here in Canada right now. Canada has become the black sheep at international conferences on the environment. And Canada ranks third among OECD countries that are the world's worst polluters per capita, right behind Australia and the United States. Congratulations to the Government of Canada.

As the commissioner's report clearly demonstrates, the government needs to stop its archaic way of seeing things. The Conservatives need to wake up. The preventive measures suggested by environmental groups, the National Round Table on the Environment and the Economy and a number of experts will not cost anything; in fact, they will save money.

The initial cost of implementing environmental regulations quickly generates savings if we consider the short- and long-term social benefits, as good managers should. We do not have to look far to find a good example of this. The White House's Office of Management and Budget compared the costs and benefits of environmental protection. The United States, our closest neighbour, which the Conservatives so frequently turn to as a policy model, found that the combined cost of all U.S. federal air and water protection regulations is approximately $26 billion per year, yet they save up to $533 billion because of a lower incidence of smog-related respiratory diseases and fewer problems associated with contaminated sites.

It is clear that Canadians' health and safety is closely related to environmental factors such as the quality of the air we breathe, the impact of global warming on food security, the safety of the food we eat and water quality, to name but a few.

The Conservative budget is a perfect illustration of that party's vision, or I should say, lack of vision. In fact, it shows the short-sighted and irresponsible vision of a government that would rather give in to pressure from its friends in the oil lobbies than protect our natural heritage and the health of future generations.

Once again, this government is showing just how willing it is to circumvent democracy and science to concentrate power in the hands of cabinet. The government is grouping measures that fall under the jurisdiction of a dozen committees into a single bill to ensure that these measures will be examined by as few experts as possible.

This week, when the government invoked closure for the 21st time on a bill jam-packed with as many measures as possible, Canadians were denied a fair and thorough debate on issues that will affect their health, their safety and their environment. The government is on a witch hunt, and environmental groups are the target. This is reminiscent of 1950s McCarthyism.

Canadians want the government to prioritize sustainable, responsible development, but this budget undermines—nay, eliminates—all of the environmental safeguards that protect our coasts, our rivers, our wildlife and our food.

Unfortunately, this government puts economic interests, particularly those of large foreign oil companies, before the health of Canadians, long-term energy security, and the protection of Canada's natural heritage.

By eliminating the Canadian Environmental Assessment Act, arbitrarily shortening environmental assessments and scaling back experts' and scientists' role in the process, the Conservative government is clearly showing that the environment is not a priority. In fact, the government is showing that the environment is no longer even on its radar.

The Conservatives even have the audacity to believe that cabinet has more expertise to make decisions about major pipeline projects than scientists and experts do. Let us not forget that the Conservatives' estimate for the purchase of the F-35s was out by $10 billion and they responded by saying, “Oops. Sorry.” What will happen if a Northern Gateway spill destroys the magnificent coast of British Columbia near Kitimat, pollutes the drinking water of several hundred first nations communities and threatens the health of our most beautiful forest? Is the government just going to again say, “Oops. Sorry.”?

For all these reasons, I support the motion. The budget is an absolute affront to democracy, and Canadians deserve much better. They deserve principles of responsible and sustainable development to make this budget viable.

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, last night I was honoured to participate in the committee of the whole regarding the environment. It was extremely unfortunate, however, that the minister kept telling parliamentarians that he did not have answers. Sometimes he simply refused to answer, even though his officials were sitting right in front of him with the information.

For example, the minister failed to answer my questions on the cost of liabilities that would arise under the new environmental assessment process, how the government compares it to the cost of liabilities under the old assessment process and whether he would table said analysis.

He failed to answer how many of the 10 ozonesonde stations would be supported under the new budget. This matters because ozone is critical life on earth and it protects us from the sun's harmful radiation.

He failed to specify what is in the budget to address the concerns of the environment commissioner.

He failed to answer whether there were any disruptions in service at the World Ozone and Ultraviolet Radiation Data Centre.

He failed to list the organizations he has accused of money laundering. These were only a few of my questions that he failed or refused to answer.

Let me provide some facts about the Conservative government's repeated failing grades on the environment. The 2008 climate change performance index ranked Canada 56th of 57 countries in terms of tackling emissions. In 2009, The Conference Board of Canada ranked Canada 15th of 17 wealthy industrialized nations on environmental performance. In 2010, Simon Fraser University ranked Canada 24th of 25 OECD nations on environmental performance. Most recently, Columbia and Yale's environmental performance index ranked Canada 102nd of 132 countries on climate change.

This profoundly sad time for the environment under the Conservatives continues. The government is now gutting 50 years of environmental oversight and threatening the health and safety of Canadians, our communities, our economy, our livelihoods and our future generations.

We need to be very clear that when the government came to power it inherited a legacy of balanced budgets but soon plunged us into deficit before the recession ever hit. It is absolutely negligent and shameful that the government would gut environmental safeguards to fast-track development rather than promote sustainable development that meets the needs of today without compromising those of the future. The government did not campaign in the last election on gutting environmental protections.

Canadians should therefore rise up, have their voices heard and stop the destruction of laws that protect the environment and health and safety of Canadians.

Maurice Strong, a prominent Canadian who spearheaded the Rio earth summit in 1992, has urged people who are concerned about the future of the environment to do an end run around the federal government. He urged grassroots groups to mobilize and make full use of social media, saying there was still time to bring the pressure of people power.

Instead of understanding the gravity of the situation and standing up for the environment, the Conservative government returns to tired talking points, trying to score political points by attacking the former Liberal leader, saying that the Liberals took no action on climate change when it knows this is absolutely false. The Liberals implemented project green, which would have taken us 80% of the way to meeting our Kyoto targets. The Conservatives killed project green, reduced our greenhouse gas emission targets by an astonishing 90%, spent over $9 billion of taxpayers' hard-earned money and achieved little, walked away from Kyoto, are in the process of repealing the Kyoto Protocol Implementation Act, and continue to ignore the fact that failing to take action on climate change will cost Canadians $21 billion to $43 billion annually by 2050.

Last week the environment commissioner reported what we have known for a very long time, that the government is not on track to make its 2020 emissions targets. Environment Canada's own forecast shows that in 2020 Canada's emissions will be 7% above 2005 levels, not the promised 17% below.

The so-called law and order government has yet again violated the rule of law. According to the environment commissioner, the federal government did not comply with the Kyoto Protocol Implementation Act passed by Parliament in 2007. Does the minister think it is okay to break the law, and going forward, what accountability measures would he put in place to ensure transparency when reporting greenhouse gas emissions to Canadians?

Maurice Strong says that the government may be totally negative when it comes to being a constructive force in mitigating climate change. For example, the Parliamentary Secretary to the Minister of the Environment continues to rail against Kyoto. Is she aware, however, that her own minister has, for the second time, said that Kyoto was a good idea in its time? He first said it to The Huffington Post and he has now said it to the BBC.

Dr. Gro Harlem Brundtland, Norway's former prime minister and the former chair of the World Commission on Environment and Development and former director general of the World Health Organization, recently said that Canada was moving backward on the issue of climate change and warned Canada not to be naive on the issue. She recently told delegates in Canada that despite the weaknesses of the Kyoto protocol, the world could not afford to push it aside without an alternative, as emissions are continually rising.

When questioned about the link between human activity and climate change, she said, “Politicians and others that question the science, that's not the right thing to do. We have to base ourselves on evidence.”

When will the minister deliver the plans and regulations for the six remaining sectors, and particularly for one of the most important sectors, the oil and gas industry, as the oil sands are the fastest-growing source of emissions in Canada?

Last night I asked the minister how many of Environment Canada's climate impacts adaptation group, many of them Nobel prize-winning scientists, would be supported to undertake adaptation work for Canada, as the cost of adaptation will, once again, be $21 billion to $43 billion annually by 2050. I was asked to repeat the question.

On asking the question a third time, I received the ridiculous answer that the adaptation research group is, like climate change, an evolving organization.

While the Conservatives claim a balanced approach to protecting the environment and promoting economic growth, when has the parliamentary secretary or the minister actually ever stood up for the environment? Was it through cuts to Environment Canada, cuts to the Canadian Environmental Assessment Agency, or cuts to ozone monitoring?

The list of cuts goes on and on.

Canadians should not be fooled by mere snippets of environmental protection but should pay attention to the government's budget reductions to Environment Canada and to other investments on environmental protection and research by hundreds of millions of dollars, while maintaining several tax incentives for the oil and gas sector that the Minister of Finance's department recommended eliminating in his secret memo.

After we vote against this kitchen sink budget, a budget that devotes 150 of its 425 pages to environmental gutting, the Conservative government will stand and say that the opposition voted against some good things for the environment. However, the government gives us absolutely no choice, as we simply cannot vote for the wholesale destruction of environmental legislation and 50 years of safeguards.

If the parliamentary secretary, the Minister of the Environment and the Minister of Natural Resources really believe that Bill C-38, the kitchen sink bill, is good for the environment, they should have the courage to hive off the sections on environmental protection, send them to the relevant committees for clause-by-clause study under public scrutiny and end the affront to democracy.

I have a list of cuts to Environment Canada and just some of the changes on the environment to be found in Bill C-38.

There are cuts of 200 positions at Environment Canada.

Last summer the government announced cuts of 700 positions and a 43% cut to the Canadian Environmental Assessment Agency.

There are cuts to research and monitoring initiatives, air pollution, industrial emissions, water equality, waste water and partnerships for a greener economy. There are cuts of $3.8 million for emergency disaster response.

As well, the government is consolidating the unit that responds to oil spill emergencies to central Canada, namely Gatineau and Montreal, far from where emergencies, including those involving diluted bitumen, might occur on the Pacific and Atlantic coasts and along the proposed route of the northern gateway pipeline project.

What are the numbers and percentages of the slashes to the new central Canada unit that will have to respond to oil spill emergencies? When will the minister table the scientific analysis that backs up his claims that there will be no negative impact?

Last week Environment Canada released its report on plans and priorities, signed by the minister. I will quote from the report:

Skills: Due to transition alignment challenges, the Department risks being unable to stay current with advances in science and technology. In addition...knowledge required to support programs and internal services could pose difficulties...

Environment Canada is a science-based department. The above passage suggests the government is doing Environment Canada serious damage. The minister has previously misled Canadians by saying there would be no compromise of programs.

Given the recognition that there is a problem at Environment Canada, I would like to know what new funds the Minister of the Environment has specifically allocated to bring his department up to date with advances in science and technology in order to protect the environment, the health and safety of Canadians, and evidence-based decision making.

The government has repealed the Kyoto Protocol Implementation Act. It has repealed the Canadian Environmental Assessment Act, which allows the federal government to avoid environmental reviews of many potentially harmful projects and to do less comprehensive reviews when they do occur.

Canada's environment commissioner says that the changes are among the most significant policy development in 30 or 40 years and that there will be a significant narrowing of public participation.

The Minister of Natural Resources complains:

Unfortunately, our inefficient, duplicative and unpredictable regulatory system is an impediment. It is complex, slow-moving and wasteful. It subjects major projects to unpredictable and potentially endless delays.

but Premier Jean Charest says:

In Quebec, we've very well mastered the ability of doing joint assessments.... I have learned, through my experiences, that trying to short circuit to reduce the process will only make it longer, and it is better to have a rigorous, solid process. It gives a better outcome, and for those who are promoting projects, it will give them more predictability than if not.

There are more changes: the weakening of several environmental laws, including species at risk and water; the near-elimination of fish habitat in the Fisheries Act, putting species from coast to coast to coast at increased risk of habitat flaws and population decline; placing the authority of the federal cabinet to approve new pipeline projects above the National Energy Board; and the elimination of the National Round Table on the Environment and the Economy, the independent think tank with a direct mandate from Parliament.

The Minister of the Environment has never said what will replace it, despite my asking twice in Parliament. The head of NRT does not know either, as what it does is unique.

This week the Minister of Foreign Affairs said the closure of the round table had more to do with the content of the research itself, namely promotion of a carbon tax as a means of addressing climate change. He said:

Why should taxpayers have to pay for more than 10 reports promoting a carbon tax, something which the people of Canada have repeatedly rejected?

The Minister of Foreign Affairs confirms what we have known for a very long time, namely that the government puts ideology above evidence.

The NRT issued economic and science-based reports, which did not agree with Conservative ideology. The national round table has been a well-respected, unbiased, independent organization for over two decades. It was started by the Mulroney government, our present Governor General was its founding chair and the government should know how important it is.

The foreign minister's remarks two days ago had nothing to do with the carbon tax—after all, the Prime Minister himself has promised a price on carbon of $65 per tonne by 2016 to 2018—but were the government's attempt to change the channel, as it was coming under harsh criticism for gutting environmental protection. It was also the government's attempt to silence its critics. The government is practising 1940s-style McCarthyism: shut down any independent voice, and bully and intimidate those who cannot be shut down.

We are also seeing the silencing of government critics through changes to the Canada Revenue Agency and the attempts to seize control of the university research agenda. The government should be able to stand on its own merits and should be able to withstand criticism, but instead of making its arguments, it is just looking to eliminate dissent.

The criticism of Bill C-38 is extensive. For example, the Ottawa Citizen reports, under the heading “Something's fishy with Bill C-38...”:

There was no need for great chunks of legislation to be retrofitted into a 420-page omnibus budget bill that looks to have been intended to confound every effort by the House of Commons to scrutinize its contents intelligently.

Under the heading “Omnibus bill threatens fish...”, The Vancouver Sun reported:

A new front in the battle against the federal government's omnibus budget bill opened up Monday when B.C. Conservative Party leader John Cummins sent a letter to [the] Prime Minister...warning of major threats to fishing communities and the environment if major Fisheries Act amendments are passed.

For decades, Canadians have depended on the federal government to safeguard our families and nature from pollution, toxic contamination and other environmental problems through a safety net of environmental laws. This bill shreds this environmental safety net to fast-track development at the expense of all Canadians.

Instead the government could have implemented my Motions Nos. 322, 323 and 325, which focused on Canada's commitment to sustainable development, recognizing that it was not a choice between saving the economy and the environment and therefore working with the provinces, territories and stakeholders to develop a green economy strategy and a national sustainable energy strategy to build the jobs of the future for our communities and for Canada.

When we compromise the air, the water, the soil, the variety of life, we steal from the endless future to serve the fleeting present.

[Mylène Freeman, NDP, Argenteuil—Papineau—Mirabel, QC]

Thank you, Madam Chair.

I want to thank our witnesses here today. Their presence is very much appreciated.

Ms. Côté, with Bill C-38 on budget implementation, which is currently under review by Parliament, the government is amending the Employment Equity Act so that it no longer would apply to federal contractors.

Given your expertise in wage discrimination, can you explain to this committee how eliminating this employment equity protection will affect Canadian women?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I am interested in hearing the minister try to address this issue, in a somewhat fictitious way, I must say. The government, in fact, caused the backlog to hit the one million point. What the Minister of Citizenship, Immigration and Multiculturalism is doing is hitting the delete button, literally telling 100,000 people abroad that they can no longer come to Canada. Bill C-38 would do that. It is a cruel way of dealing with would-be immigrants.

The member is trying to play the politics of that being a great minister when reality shows us quite differently. We have never seen a minister hit a delete button on backlogs. We have never seen a minister put an absolute two-year freeze on being able to sponsor parents. How is that fair? Why has the government has chosen this budget, Bill C-38, to go through the back door and—

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, that is exactly why we are putting this motion forward. There are 70 amendments to legislation in Bill C-38, the budget implementation act. The member referenced one. That one issue alone should have enough study in the House. We are focusing on fisheries and the environment as major elements of the budget. There are over 420 pages in the bill which includes so many changes.

That is why Canada's New Democrats are spreading out across the country to engage in dialogue and to consult with Canadians, not just on the environment and fisheries, but also on immigration, on EI and many other changes that are included in this financial bill.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, my understanding is that the NDP actually meant for this opposition day motion to deal with the budget bill, Bill C-38, so I want to bring up one thing which I think the government could have incorporated into the bill. It is related to immigration.

In the budget the government is trying to hit the delete button on tens of thousands of individuals who have applied to come to Canada as skilled workers. That is a cruel policy. It is something that should have been brought to this House as a stand-alone amendment so that the Minister of Citizenship and Immigration and the government could be made fully aware, in detail, why this is a bad policy idea that should never have been incorporated into Bill C-38.

Would the member comment on that aspect of Bill C-38?