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.

SECOND READING

[Greg Kerr, Conservative, West Nova, NS]

Mr. Speaker, certainly the government is moving a number of areas of efficiencies to try to make government more economic and more compact, and the delivery is certainly felt at the final end. In other words, the idea is to grow the economy and encourage the private sector to invest in our economy. We feel that as a result of eliminating the deficit and keeping taxes very low, the opportunities in all the communities—in my rural community and in the member's rural community—will continue to grow through the years. Once the stability has taken effect, we are very confident that we will see growth and opportunity for Canadians across the country.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, in Bill C-38, the number of changes to virtually every environmental law ever passed in this country is literally shocking to anyone who has practised environmental law. The hon. member will remember me from when he was Minister of Environment in Nova Scotia all those years ago and approved Agent Orange spraying, driving my group to court at the time. It is all water under the bridge, so I have nothing but goodwill toward the hon. member for West Nova.

However, I ask the member now if he has reviewed section 5 of the new Canadian Environmental Assessment Act? Can he explain to Canadians how federal environmental reviews will now be limited to fish and migratory birds only?

[Greg Kerr, Conservative, West Nova, NS]

Mr. Speaker, I would not have gone back into history but since the member mentioned it I remember our days together in Nova Scotia. What I do know is that the member was quite prepared to take on companies and government and yet it was okay for neighbours to use that same spray on their lawns. Their neighbours and kids and so on did not matter because taking on government was far more fun.

The fact is that we are moving toward efficiency. We are absolutely committed to environmental control, environmental regulatory protection and the right penalty process. Those people who cause problems should be held accountable.

However, to delay a process is not progress, does not help Canadians and certainly does not help the environment.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I rise on a brief point of order. At the relevant time, the mix of 2,4-dichlorophenoxyacetic acid and 2,4,5-trichlorophenoxyacetic acid was never registered for home use.

[The Acting Speaker, Barry Devolin]

That is a matter of debate rather than a point of order.

The hon. parliamentary secretary on a short question.

[Shelly Glover, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I thank the member for all the hard work he does as chairman of veterans affairs committee. I was pleased to hear him talk about veterans in his budget speech. It is important to ensure that we protect the men and women in uniform and those who have served so bravely for our country.

I would like to give the member another opportunity to cite those things that he feels highlight the needs of his community, things that would make things better in his community.

[Greg Kerr, Conservative, West Nova, NS]

Mr. Speaker, we are just wrapping up a committee review of the dozens of changes that have taken place in the delivery of service and our response to the needs of veterans. As our former minister, Greg Thompson, used to say, we can never do enough.

I think all members of the House understand that the initiatives are incredibly important for our veterans down the road, and I feel the same about the initiatives in the budget right across the country. As a rural member, I am in tune with the impacts of a budget and the overall impact is one of positive long-term growth, which we should be proud of.

[Shelly Glover, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I appreciate the opportunity to stand here in the House to speak to the jobs, growth and long-term prosperity act to implement our 2012 economic action plan. Both this legislation and our recent budget represent an ambitious, substantive and positive response by our Conservative government to the economic challenges of today and the opportunities of tomorrow.

I am proud that the measures contained in the bill and in budget 2012 will fuel the next wave of job creation and position Canada for a secure and prosperous future.

By focusing on the drivers of growth, innovation, business investment, education and skills, these new measures will solidify, strengthen and draw upon the entrepreneurial sectors' role as the driving force behind Canada's economy.

Our plan sets out a comprehensive agenda to bolster Canada’s fundamental strengths and address the important challenges confronting the economy over the long term, like the demographic challenges arising as a result of an aging society.

Canada’s businesses, entrepreneurs and innovators have proven time and again that they are up to the task, provided they are given the chance. With our economic action plan, our Conservative government is ensuring that they will have all the opportunity they need to flourish.

For starters, this ambitious agenda includes a new approach to supporting entrepreneurs, innovators and world-class research.

As a world leader in post-secondary research with a highly skilled workforce, Canada has strong fundamentals for innovation. In fact, Canada has the highest proportion of population with post-secondary education of anywhere in the world.

With $10.1 billion of annual federal investment to support post-secondary education and $2.5 billion annually for labour market agreements with the provinces and territories, it is no surprise that Canadian students perform well in international tests. Canada also compares favourably to most other G7 countries with respect to job related training.

However, for all of this promise, Canada continues to lag behind our peer nations in terms of overall innovation performance, including with regard to private sector investment in R and D and the commercialization of research into products and processes that create high value jobs and economic growth. Our government is taking important steps to foster the innovation needed to fuel jobs and economic growth.

First, we set up an expert panel to determine the reasons for this lagging performance, and now we are responding to the panel's recommendations in a way that will create high value jobs through investments in education and training, basic and applied research, finance opportunities for businesses with the potential to become globally competitive, and better linkages between public research and market needs.

Among other things, economic action plan 2012 will double the contribution budget of the industrial research assistance program to better support research and development by small and medium-sized companies.

It will refocus the National Research Council on demand-driven applied research that will help Canadian businesses develop innovative products and services.

It will support innovation through procurement, by connecting small and medium-sized companies with federal departments and agencies to build their capacity to compete in the marketplace. And the plan will help high-growth firms access risk capital by committing significant funds to leveraging increased private-sector investments in early-stage risk capital, including a $400 million investment to support the creation of large-scale venture capital funds led by the private sector.

Furthermore, it will support private and public research collaboration through internships for graduate students, and funding for business-led research and development networks.

The SR & ED tax incentive program will be enhanced by removing capital from the expenditure base, making it more cost-effective through design improvements and a measured rate reduction, and providing greater predictability through administrative improvements.

However, to effectively compete and succeed globally, Canadian job creators need more than just bright ideas. They must be supported by a modern regulatory environment that promotes competition, business investment and economic growth. This implies a competitive and efficient tax system, a well functioning financial system and access to international markets.

That is why the jobs, growth and long-term prosperity bill includes key commitments in all of these areas, which would improve conditions for business investment and drive the next wave of job creation. This means we are transforming not only how we innovate, but how we regulate. We are supporting responsible resource development, improving the review process for major energy and resource projects to make it more timely and transparent while protecting the environment, and introducing legislation to modernize the regulatory system to realize our objective of one project one review.

These measures are all fundamental to our success but, ultimately, Canada's success rests upon maximizing the power of our greatest asset, our people, and unleashing their full productive potential. With that in mind, the bill makes significant investments in training, infrastructure and work incentives, and supports job creation by facilitating the participation of under-represented groups in the labour force.

Employment insurance, for example, is Canada's single largest labour market program. Our budget plan will make a number of targeted, common sense changes to make EI a more efficient program that promotes job creation, removes disincentives to work, supports unemployed Canadians and quickly connects people to available jobs to improve their quality of life and Canada's economy.

At the same time, we will ensure predictable and stable EI rates by limiting rate increases to 5¢ per year until the EI operating account is in balance and then move to a seven year break even rate. In addition, we are extending the temporary EI hiring credit for small business for one year to reduce the cost of hiring new workers. This will benefit approximately 536,000 employers whose total EI premiums were at or below $10,000 in 2011, reducing their 2012 payroll costs by about $205 million.

In more targeted labour market actions we are also investing $50 million in the youth employment strategy to assist more young people in gaining tangible skills and experience and connecting them with jobs in fields that are in high demand.

At the other end of the demographic scale, we are also funding the extension and expansion of the successful ThirdQuarter project, which helps employers find workers over 50 who have the skills they are seeking.

I am especially proud of this project, piloted by the Manitoba Chamber of Commerce, which provides an online forum that makes it easier for individuals to find jobs that match their skills, while helping businesses and organizations to recruit employees who have the skills they are seeking.

I would be remiss if I closed without quickly reviewing other important initiatives in the economic action plan 2012. They include: investing an additional $30 million in the opportunities fund to enable more Canadians with disabilities to obtain valuable work experience; proposing $100 million to support first nations education, as well as $175 million to build and renovate schools on reserve; supporting further improvements to foreign credential recognition; and more and more.

Securing long-term prosperity for Canadians in uncertain times means we must act today. Under the jobs, growth and long-term prosperity bill, we have taken decisive action to that end by increasing employment opportunities in the long term and ensuring economic growth.

That is why I am urging the House today to support the measures set out in this bill.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, the member across talks about jobs, growth and economic stability. I wonder if she can explain how putting thousands of people out of work, which the government is doing by giving pink slips to a lot of people across different government departments, will assist in jobs, growth and the economy.

I would also like to know if the member could elaborate on the experimental farm in Kapuskasking and maybe give us an idea of the exact date of that closure because those workers would like to know. They have been given a pink slip but they have not been told the exact closing date. They could base their decision-making on that closure date, given the fact that they have only been given 120 days to make their decision.

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, when it comes to jobs, it is very clear across the world that Canada is looked at as an example of success following a recession that touched us all.

When we look at the statistics, the IMF and the OECD look at Canada as being one of the countries that will see the strongest growth going forward. Growth means those jobs are actually succeeding. We have had almost 700,000 net new jobs since the recession, 90% of those jobs are actually benefiting people who are in full-time occupations and 75% of those are in private sector positions.

What will not help us create jobs is the NDP plan: a $10 billion corporate tax increase that would kill jobs, GST increases that would kill jobs, doubling of the CPP that the CIFB said very clearly would literally shut down dozens of small businesses across the country, and, of course, the EI 45-day work year that it advocates for would kill more opportunities and more jobs. The single biggest measure that would negatively impact Canadians would be the carbon tax that it wishes to place on Canadians at this time. It is the worst time possible.

We will to stick with our plan. We are the best in the G7 and we will stay there.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I think one of the greatest threats that the government has brought forward with regard to this budget and this bill that we are debating today is the fact that it is taking other issues and bundling them together and trying to pass them along with the budget.

Many would suggest that there should have been a series of other legislative agendas or other bills that should have been brought forward, thereby being provided due diligence and scrutiny of the House and committee. The government is doing a disservice to Canadians by taking issues, such as our environment, and passing, through the back door, substantial changes to environmental legislation that will have a profoundly negative impact going into the future.

Why did the government choose to go through the back door, changing important environment laws, on a budget debate when it should have been stand-alone debate in itself?

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, as my hon. colleague well knows, the budget implementation acts are traditionally very broad. Let me give an example to my colleague from the Liberal Party of a budget bill that his party put forward in 2005. In fact, Bill C-43, which was introduced in the 38th Parliament, amended dozens of different pieces of legislation including the Auditor General Act, the Asia-Pacific Foundation of Canada Act, the Broadcasting Act, the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, the Canadian Environmental Protection Act, the Canada Post Corporation Act, the Public Sector Pension Investment Board Act, and more.

It is hypocritical to stand in this place and tell Canadians that what is being done is unusual, because it is not. That member knows it, the members from the official opposition know it and every member of Parliament in this place knows very well this is not unusual. This is the way it goes. That member ought to be apologizing for misleading Canadians when he and his party have done exactly the same thing in the interests, they say, of Canada.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I will be sharing my time with the member for Western Arctic.

I want to begin my remarks today on Bill C-38 by saying, and it should be said, that this clearly is not only a budget implementation act.

I found it very interesting to listen to the parliamentary secretary's comments just a few moments ago when she chided the Liberal member for the record of the Liberal government, bringing in a massive omnibus bill as well. I remember that bill, C-43, but it is curious, because I seem to remember that the Conservatives in opposition at that time certainly had lots of concerns about what was hidden in that massive bill. I think it was about 1,000 pages. I remember the debates in this House about how the Liberals were trying to hide things and rush them through.

Here we are today in 2012 with another budget implementation bill, which is anything but. It has become a massive cover for putting through major public policy issues under the guise of a budget implementation bill.

I want to say, just for the record, that it is really bad public policy. It is a terrible way to make decisions. It is a direct attack on the ability of members of Parliament to examine legislation.

Much of the stuff that is in the budget implementation bill should be coming to the House as stand-alone legislation. When we go through the list, go through those 422 pages that comprise the current budget implementation act, we can just see how far-ranging the directions are in the bill.

For example, we know it is raising the age of eligibility of OAS and GIS from 65 to 67, something that the Prime Minister never campaigned on in the last election. For heaven's sake, it repeals the Kyoto Protocol Implementation Act, meaning that the government is no longer required to report on its emissions under the act. That is in a budget bill? The Conservatives are putting that through in a budget bill? Is there something they want to hide from Canadians? I think so.

As we have heard many times in the House, it guts the environmental assessment regime and fish habitat protection. Again, this should be stand-alone legislation that the government should have the guts to bring forward on its merit and be willing to debate in this House, instead of trying to sneak it through in a budget implementation bill.

Just in terms of the changing environmental assessments, this would have a major impact on my province of British Columbia, on things like the Enbridge pipeline, where there has been incredible public interest in being involved in a democratic public process to comment on the environmental impact and assessment of that project.

What is the government doing? It uses the budget and the budget implementation act to actually shut down and to gag the public and say that not only is it putting short timelines on these major assessments but it will also delegate authority to other authorities, including the provinces, so it is basically narrowing the opportunities people have to comment on these important things.

To add insult to injury, not only does the bill gut environmental requirements; it also goes after civil society organizations by saying that the Canada Revenue Agency will tighten up what kind of political activities they can be engaged in. There is an attack on both sides, by legislation and by trying to fetter and gag the work that very important organizations do in our country to bring awareness to these major environmental projects that have a huge impact on all of us.

Here are a few other little gems in the budget. It would repeal the Fair Wages and Hours of Labour Act. I am familiar with this, because as a city councillor in Vancouver over many terms, we actually used the federal fair wage act to set a benchmark for what we did municipally to pay fair wages to municipal contractors.

Now all of a sudden this act is gone. It has been there for decades. I do not know how far it goes back, but it has been a benchmark of what is considered to be fair wages.

Presumably this is now being completely eliminated because the Conservatives want to give more handouts to their corporate buddies and they want to undercut union wage rates. This is an attack on labour, just like we have seen with Bill C-377, where the government is attacking labour and trying to allege that they are not transparent organizations when we know they are. This is hidden in a budget implementation act.

It would also amend the Employment Equity Act so it would no longer apply to federal contractors. This is a major shift in public policy. I was part of the standing committee that reviewed the Employment Equity Act. It has to be reviewed every five years. The federal government is mandated to cover employment equity both in terms of its own direct services and of all the areas it covers like transport, airlines and banks. To amend the Employment Equity Act so it no longer applies to federal contractors is just a sheer gift and bonus to the Conservatives' buddies in saying that things like employment fairness, fair wages and ensuring diversity in the workplace would not count anymore and they would not have to worry about it. This is a major and dramatic shift in public policy.

I also want to mention a few local things that are very concerning to me, such as the cuts to the CAP program, which is purely mean-spirited. Low-income people who can currently gain access to the Internet through the community Internet access program would no longer have access to that. This is just a small thing, but it really does affect people. We live in an Internet age but there are lots of Canadians who still do not have their own computer or access to the Internet and they use the community access program to have that opportunity and capability. Why on earth would the Conservatives go after that? Why would they target people in that way?

As the health critic for the NDP, I want to speak briefly about some of the health aspects in the few minutes I have left.

We have said in this House many times how absolutely staggering a $31 billion decrease in health transfers to the provinces would be. This is a massive shift. The Conservatives unilaterally made a decision about health transfers in this country without any negotiation, debate or co-operation with the provinces and territories. It is something that is unheard of. This is a major assault on our health care system.

It goes even further than that. One of the little sneaky things that is in the budget is the amendments to the Food and Drugs Act to give the Minister of Health more power, supposedly on the basis of streamlining and improving the efficiency of various classifications of foods and drugs. However, it would basically give the minister more power to set up her own regulatory process and go outside the system. Again, this is something that should be coming forward in its own piece of legislation.

I will conclude by talking about what the budget does not address.

I live in Vancouver, and in Metro Vancouver probably the greatest issue we face is the lack of affordable housing. I have met with the Canadian Rental Housing Coalition in Metro Vancouver, which by the way, is made up of building owners, apartment owners, tenant groups and co-op housing groups. It is a broad coalition and they are all saying the same thing: the federal government must be part of a solution to build affordable housing in this country.

Where do we expect workers to live if they are paying 50% or 60% of their income in rent? The hotel workers and the people who work in the stadiums, on the waterfront or in the service industry can no longer afford to live anywhere close to where they work. This is a major issue in Metro Vancouver and also in other Canadian cities, yet there is not a single word in the budget implementation act that would make this a priority. It is just zero. It is as if it does not exist anymore.

We look at the contrast of the handouts to the Conservatives' friends in the corporate world while ignoring the real priorities of Canadians for basic human needs like housing, shelter, good pensions or even access to the Internet. All of these things have either been ignored or cut.

This is a terrible budget, a terrible bill. We should be offended as parliamentarians that this budget implementation bill is so broad. It has so much in it that we cannot even begin to debate, especially now that there is a gag order on the time we have for debate, which was passed earlier today. What an affront to parliamentary democracy.

We are here to stand up to say we oppose the bill and will use everything we can to oppose it all the way.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, a few months ago the Prime Minister was overseas and he talked about senior pensions. A huge outcry swept our country from coast to coast to coast. It was, “How dare the Prime Minister look at our pension programs?” Canadians treasure these programs and they are seen as fundamental social programs that are absolutely essential, not only to keep and maintain but to look at ways we can enhance them. I appreciate, to a certain degree, they might have backed off from what the original thoughts were, but still a vast majority of Canadians believe, and the Liberal Party believes, that we have to maintain the option for retirement at age 65 as fundamental to our pensions.

Could the member comment on raising the age of eligibility from 65 to 67? We believe that is wrong and that it has to be maintained at 65.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, the meeting the Prime Minister attended was a very exclusive meeting of billionaires and big movers and shakers in Davos, Switzerland. It was pretty insulting to all Canadians that he chose that venue to make a major decision about the Conservatives' intention to bring about a fundamental change in our pensions system. Therefore, I would agree with the member.

I recently held a public forum in east Vancouver on pensions. People are hopping mad, not only seniors but also younger people, because they know the impact this change will have. By raising the age of eligibility, it means people in their older years will have to work longer. It also changes the dynamic in the job market and means there are fewer opportunities because more people are now forced to work longer or else they will be on the provincial welfare roll. This is another example of provincial offloading.