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

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

Mr. Speaker, once again I stand to take advantage of this opportunity to tell Canadians that the member opposite is misleading them. The previous NDP speaker said earlier that democracy was at risk in all of this, but she was misleading when she said that the limited time was unprecedented. Seven days is actually, historically, the longest period of time in the last 20 years. She was upset about there being 10 years. Well let us go 20 years.

The member opposite who just spoke was also upset about seven days of debate. Over 20 years, the debate was two days in 1992, four days in 1993, four days in 1994, five days in 1995, three days in 1996, two days in 1997, three days in 1998, four days in 1999, three days in 2000, three days in 2001, four days in 2003, three days in 2004 and it goes on.

In 20 years we have never seen this length of debate ever before. Seven days is plenty of time. We need to start talking about the measures that the members will support and that can help Canadians do better.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, we have never seen such a terrible bill that has so much horrible stuff in it that we will not even get to talk about because the debate will happen so quickly.

We have to look at the context of what is taking place here. Almost every piece of legislation that has come the House from the Conservative government has been under a gag order of some sort of closure. What are the Conservatives afraid of? Are they afraid that more of us will speak to it, or are they so dismissive of democratic practice that they want to shut down debate in the House?

The member can read from whatever list she wants. The fact is the record of the current government in gagging members of Parliament in debating substantial issues in the House is happening on a weekly basis. The budget implementation bill is just the latest example.

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, there are many things about Bill C-38 that I could speak about, such as the total rewriting of Canada's environmental protection law, repealing the Fair Wages and Hours of Labour Act, raising the age of retirement to 67, the elimination of the National Council of Welfare, the elimination of employment equity for federal contractors, weakening the Auditor General, having cabinet-approved pipelines rather than the arm's length National Energy Board and the gutting of the regional employment insurance appeal process. However, as the only member of the opposition from the three northern territories, I will speak about how the bill would change the three acts that could be considered the constitutions of the three territories without having consulted the people of the north.

Clauses 214, 215 and 216 of Bill C-38 would amend the Northwest Territories Act, the Yukon Act and the Nunavut Act. They would amend these acts to give the federal cabinet the ability to make more regulations governing the fiscal capacity of the three territories. Instead of moving toward the Conservatives' promise of improving and devolving northern governance, which is the fourth pillar of the Prime Minister's much-promoted northern strategy, these amendments would actually increase the amount of control Ottawa would exercise over the three territories. There is no provision to ensure that the three territorial governments would have any input or that there would be any measure of consultation or approval over the nature of these regulations or any changes made to them by future federal cabinets. This is hardly responsible government for the territories.

All of us who use the Westminster system of democracy know the key to responsible government is having control over fiscal matters. These amendments completely make a mockery of any statements from the Conservatives that they believe in consulting with and building a better north.

In the past Parliament, I tried to lessen the intrusiveness of the federal government over the people of the north. Over and over, I spoke to northern leaders and my constituents and then presented a bill that would give more certainty and control in the Northwest Territories over their fiscal capacity. It was to be achieved through actual legislation.

Speaking to my bill at committee, Mr. Chris Forbes, the assistant deputy minister, Federal-Provincial Relations and Social Policy Branch, Department of Finance, described how the borrowing limit provisions were a holdover from when the only institution the territories could borrow from was the Government of Canada. Since 1983, the territories have been able to borrow on the open market. Colonial at the start and colonial it continues under the Conservatives.

My bill was well supported across the Northwest Territories.

If the Conservatives had consulted with the people in the north, they would have heard that what northerners wanted was this federal control over borrowing removed. So far we have not been any consultations on these amendments, unless they have been done in secret. They exclude Canadians because they do not care what Canadians have to say about many of these aspects.

The Prime Minister has made a point of stressing the growth of governance in the territories. If that is what he wants, then the Conservatives should have done the right thing in amending these three acts, and that is to take the federal government and the federal Department of Finance completely out of the process.

Where are the members for Yukon and Nunavut on these changes? Do they support increased control over the territories by Ottawa? Is it okay with them that the legislative assemblies of the territories lose autonomy with these changes? Why the silence?

The people of the north have proven they can govern themselves. They have proven they are capable managers of money. Moody's Investment Services has given the Northwest Territories an Aa1 rating. This rating is second highest and places the NWT in line for credit risk with most of the provinces.

Moody's rating takes into account recent developments related to the Deh Cho Bridge project. The credit opinion notes that Moody's:

—had already included the Deh Cho Bridge liability in our calculations of the NWT's net direct and indirect debt, reflecting the government's debt-like obligation to make periodic availability payments. As such, formal assumption of the related debt is not expected to alter the NWT's credit profile in a material way.

According to Moody's, the rating reflects:

—prudent fiscal policies that have, over the past several years, limited debt accumulation. A well-developed fiscal framework (including a Fiscal Responsibility Policy which guides the NWT's fiscal policies and use of debt) should help to ensure that the debt burden remains low and affordable.

The NWT's fiscal responsibility policy mandates how the NWT may borrow. The policy guides the GNWT fiscal policy and use of debt and includes guidelines respecting the types of activities for which debt can be issued, as well as limits on total debt and debt servicing costs to ensure affordability. A borrowing plan is required to detail options and preferred choices for funding the short-term and long-term borrowing requirements of the government at minimum cost.

Our territory is responsible. It is acting in a manner which many other provinces should emulate.

However, these amendments do not treat the territories as responsible. Instead, they treat them in a paternalistic, uncaring fashion, without any concern what northerners think about changing their constitutions.

The people of the north have the same political rights as Canadians who live in the provinces. History has given us a designation as territories rather than provinces, but regardless what we are called, changes to our laws in Parliament should make northerners more equal to other Canadians instead of less.

All three territories are anticipated to be the great growth area of our great country. Northerners say “Respect us, treat us as equals, don't make us come cap in hand to Ottawa to be treated in a manner that other Canadians take for granted”.

The Charter of Rights and Freedoms guarantees all Canadians a right to a legislative assembly. It guarantees all Canadians that rights are held equally and that Canadians are treated equally by laws. These amendments do not move our legislative assemblies closer to equality with the provincial legislatures. These amendments actually move the northern legislatures further from equality.

Through a long and arduous process and negotiations on this issue over three years, my government was never told that the Minister of Finance would create these new powers for the federal cabinet.

Is the Conservative government so insensitive that it thinks it can now operate by decree?

A process that started as government-to-government negotiations has ended up as laws from master to vassal. Shame on this process that is blind to the desire of all northerners for equality, for respect and for their own political rights in our great country.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to pick up on another issue which I think is really important for us to cover, and that is the issue of health care. All Canadians are concerned with regard to the future of health care. They want to have a certain level of comfort in knowing that the federal government will be there for them in a very real and tangible way.

One of the greatest accomplishments of Paul Martin was the establishment of the health care accord, which ensured a guaranteed increase in funding. This would ensure that the federal government would continue to play a strong role in terms of demonstrating leadership on the health care file for all Canadians.

To what degree does the member believe the current Conservative government is committed to that ongoing financing commitment for the provinces across Canada?

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, this is an issue in which the three northern territories are treated in an equal fashion to the provinces in Canada.

We have the same concerns as all the provinces do. After 2015, if we see reductions in the increases in health care transfers, with ever-aging populations, ever-increasing costs of doing business in the north, which is incredibly expensive, with the cost of energy climbing upward, we simply will be unable to afford the systems we need to protect the people who live in these territories.

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

Mr. Speaker, I am somewhat disappointed to hear my friend's position. His riding extends to the north of my boundary, in northern Alberta. I thought he would be very happy with this budget because it would do a lot for Canadians.

It would establish our place, as has been indicated the World Economic Forum, as the soundest banking system in the world for the fourth year in a row. We continue on with that same track record in this budget. We do that through promoting sound resource development, ensuring that one project, one review, is the order of the day and ensuring that during that review, Canadians have the ability to comment on it. We are also moving forward with the development of good, sound, straightforward environmental policy ensuring that the reliability of the environmental data instead of having five or six competing things going on at the same time with the same issue involved and getting different results.

I know he and his party did not support Canada's economic action plan in relation to building infrastructure across the country, $45 billion which is a record amount. Will he step apart from his party at this time? He knows this is a good budget for the north. He knows this is a good budget for Canadians and Canadian jobs. Will he not stand for his constituents right now and support this budget?

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, my colleague, who resides in the riding next to mine in Alberta, is represented in the legislative assembly in Edmonton, the capital of Alberta, which has rights and privileges that we in the Northwest Territories can only hope to have for the future. When he refers to my riding, he is actually referring to the jurisdiction of the Northwest Territories, a separate political entity in this country, one that has to move forward and one that will be part of the economic development of this great land through mining, oil and gas, and all measure of natural resource development.

The people in the jurisdiction I represent want control over what happens, just as the member has that same control in Alberta in his legislative assembly. We want what and expect the same things that other Canadians have. We do not expect to see the little that we have already denigrated by this legislation and this Parliament.

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

Mr. Speaker, I will be sharing my time with the member for Mississauga—Brampton South.

I am happy to stand today and support the budget action plan 2012, Canada's economic action plan, because it is so important. It is certain to bolster Canada's long-term economic strengths and promote job growth, and that is what it is all about.

We are federal representatives who support Canadians in their endeavour to have a better quality of life, and hat is exactly what Canada's economic action plan 2012 does and I am proud to stand up for it.

This is such a good budget for the people I represent. This budget is all about me coming forward to talk about what my citizens are so excited for in this particular budget. It starts with job creation to innovation and invention. It is important to continue to invent things and to work hard to have patents and intellectual interests that actually stimulate growth in our economy because we can sell that to others.

I am proud to say that in my riding of Fort McMurray—Athabasca, we have more patents registered than in all of the rest of Canada combined. It is certainly more than any other jurisdiction of that area or that population. That is why it is important to have innovation and invention, which the budget speaks to.

From my background as a retailer, although the elimination of the penny for some people it is heartfelt, it is a good business decision, good for Canadians and good for northern Albertans.

We will prosper under this budget and continue to have a great quality of life. I am very proud of our government and I am proud of this particular budget. It goes without saying that we on this side of the House are proud of this budget because it takes a step forward.

We saved serious amounts of interest payments when we knocked down $39 billion in direct payments two or three budgets ago. Then we got into a budget of promoting economic wealth through creating jobs, infrastructure and a better quality of life. Now we have an austerity budget, a budget that, in my mind, is more about efficiency and productivity than any other budget in Canada's history.

I will elaborate on a few of my favourite initiatives. I am very happy to see in this budget that some education has been taken from the Senate, in particular the Senate's ongoing inquiry into the involvement of foreign foundations in Canada's domestic affairs. This has brought a lot of attention to the Senate and to this budget, and some people speak against this. However, for me that is not the case.

I donate a lot of money to charities. I support charities and I sit on a board or two. I have done that for years. I think it is clear that some charities are not respecting the rules regarding political activities. It is necessary to do that because Canadians expect their charitable donations to be used for those particular purposes and not for some political purpose or some economic purpose beyond the mandate of that particular charity.

I will quote Senator Finley who said in March of this year:

Shady foreign money is being used to influence Canadian domestic and commercial policy in an obscure fashion.

There is nothing wrong with groups advocating for environmental conservation. However, there is a problem when their unstated intent is to undermine Canadian industries and do irreparable damage to Canada's economy.

We are not talking about $100 here or there, or somebody paying for some protest signs. We are talking about hundreds of millions of dollars that are being funneled from other countries, other interests, including petroleum foundations that are in competition with petroleum foundations and petroleum companies in Canada. They are actually funnelling them to our country and to other countries to fund environmental and aboriginal activists working to block our economic development.

Some people say that they should be able to do that. I have no problem with Canadians doing that as long as Canadians know what they are doing, know where the money is coming from, know where the money is going and they obey the law. However, Canadians deserve to know. It is time to find out clearly where that money is coming from, who it is going to and what it is being used to fund. Bluntly, it works against taxpayer dollars and it costs more taxpayer dollars to follow through with that economic policy that this place and the members of this place put forward and have put forward. They are working contrary to that purpose, exactly contrary to it, and it costs Canadians more money. I do not think that should continue unless, of course, Canadians want it to continue and Canadians know about it.

Economic action plan 2012 proposes measures to ensure that charities devote their resources almost exclusively to charitable rather than political activities. How would it do that? First, by proposing that Canada Revenue Agency enhance its education and compliance activities with respect to political activities by charities. I do not think many actually understand the ramifications of this and that they need to stick to their knitting and do what Canadians expect them to do with their charitable donations.

Second, to improve transparency by requiring charities to provide more information on their political activities, including the extent to which they are funded by foreign sources. We do not know where this money is coming from. We are starting to learn a little about it. I think most Canadians would be shocked to find out that some of these groups that are opposing our development strategies are funded by oil companies abroad. That is troubling because it is Canadian domestic policy in which these foreign governments are interfering and that should not be allowed. We certainly should not be allowing them tax breaks.

Whether members agree with my position, the government's position, regarding exporting our resources throughout the world, I think 99.9% of Canadians, I hope, believe that this decision is about Canadian jobs, the Canadian economy, Canadian prosperity and our quality of life, every life in the country, including the lives of the constituents of the member for Western Arctic who spoke briefly before me. It is about Canadian policy and it should not be made by foreign trusts for foreign priorities that are operating strictly against our policies and what Canadians voted for last May, one year ago. I congratulate the Conservative majority government. Canadians voted for us to move forward with these initiatives, not to have foreign interests, foreign governments, foreign oil companies interfering in our domestic policy. This is Canadian policy that should be made at home in the best interests of all Canadians.

If Canadians do not like it, their job is to de-elect us, just like it is to re-elect us. I think they will like these policies because they will have a better quality of life, a better job and a better family life as well, because all of those things add up for a better quality of life.

Probably the most obvious budget proposal for me to speak to today is responsible resource development. This is one of the things that throughout my adult life I have pursued. I consider myself an environmentalist. I have spent a tremendous amount of time outdoors. I am a registered trapper in Alberta. I almost finished a masters degree in environmental law in Australia because that was my passion at one time.

I believe the concentration on one review for one project will be better in the end because all of the resources and thought processes will go into that one review. Instead of two, three or four reviews that are competing and have competing interests, we would have one review. We would get all the experts to work on that one review and we have the assessment forwarded with a yes or no so people know where they stand. We cannot wait 5, 6, 8, 10, 12 years where we have money to invest or where outside companies or Canadian companies have shareholders who expect to receive a return on investment. We cannot wait a decade or more for a yes or no answer. We need to ensure we provide that answer to them. What is so exciting for me today is that the budget has a responsible resource development part in it.

In the next 10 years, more than 500 major economic projects, representing $500 billion in new investment, are planned across Canada. I am proud to say that a recent study by the Canadian Energy Research Institute estimates that in the next 25 years the oil sands growth, which I represent most of, will support an average of 480,000 jobs, which means $2.4 trillion to our GDP. What is important in relation to this is that there is one review. We would put all our effort into that review to ensure we streamline it, to ensure we give an answer to the people who are investing and to ensure we get the best possible results for Canadians. Protecting the environment, ensuring we stand up for Canadian families, Canadian jobs and consulting properly with first nations across the country, all of those things are important.

Our track record speaks for itself. We have gone through a minority opposition government, two minority governments and now a majority government. Canadians have spoken loudly. They trust the Prime Minister and they trust the cabinet to stand up for their priorities and we will continue to do that through this budget.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I have learned something remarkable, that the government's attack on charitable organizations is a means of counteracting an economic war between oil companies. I just learned that. I would like the member to tell us a bit more.

Which foreign companies are we talking about? Which foreign governments are funnelling money into Canada? I believe it would be interesting to know this.

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

Mr. Speaker, I am sorry that the member was not at natural resources committee to hear testimony in relation to this particular activity. The testimony was very clear. I invite him to look at it. It was probably about a month ago that we heard testimony in relation to this. The member can follow the records and see how these foundations are funded.

It is more important to concentrate on their motives. Why would an oil company in some other part of the world work directly to block our ability to move forward with resource development? That is what I would like to know. That is a question that the member opposite should ask himself. Why would a foreign foundation funded by oil companies that are owned abroad fund protest movements and blockades in our country? There is only one reason I can think of as to why they would do that. The motive is clear.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Speaker, I followed my colleague's speech intently. We worked together on environment committee for many years.

He and several of his ministers have been making pretty impressive and frankly wild comments about the funding of Canadian NGOs. We are hearing now that apparently international oil companies that are probably active in the oil sands are funding environmental NGOs to attack Canadian oil. I am wondering if the member could name the oil companies, the foundations, and their activities. More important, I wonder if he could stand outside the House and name them.

Is the member prepared to go as far as the Minister of Natural Resources and the Minister of the Environment who have said on public record that these contributions are illegal? Can he stand and state categorically that these contributions are illegal?

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

Mr. Speaker, I have worked with the member. Although he wears the cloak of a Liberal he has a Conservative value in him somewhere; I have seen it.

My colleague wants to know what is standing between Canadians' quality of life, between moving forward with proper resource development and moving forward with regulatory change. He wants names, but I am not allowed to provide them. The member for Ottawa South is one of those people.

[Eve Adams, Conservative, Parliamentary Secretary to the Minister of Veterans Affairs]

Mr. Speaker, economic action plan 2012 builds on our successes. A number of tax reductions have been extended to Canadian seniors, to Canadian families and to Canadian businesses. Could the hon. member detail for us those tax reductions that will be most beneficial to his residents?

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

There are just so many of them, Mr. Speaker, that I cannot do them all justice. The best thing that we did as a government was in 2006 to 2008 when we paid down debt of $37 billion. That was the first thing we did.

My riding is diverse. The average age in the northern area of Fort McMurray is 29 but there are a lot of seniors in the south. We provided $2.5 billion in annual tax relief to seniors and pensioners, including taking 380,000 seniors from the tax rolls. That was just the start of it. We have provided many tax credits, such as the children's fitness tax credit and the children's arts tax credit. There are about eight or nine others.

The reality is that we give money back to Canadians. They know how to spend it a lot better than I do and a lot better than bureaucrats do. Canadians deserve more of their money and that is why we gave them Tax Freedom Day about 11 days earlier than ever before over the last 43 years. Conservatives believe that Canadians know how to spend their money better than anybody else in here does. That is why they continue to vote in support of this government.

[Eve Adams, Conservative, Parliamentary Secretary to the Minister of Veterans Affairs]

Mr. Speaker, economic action plan 2012 is Canada's plan for jobs, growth and long-term prosperity. The plan is focused on the priorities of hard-working Canadians and on our families. Our economic action plan is focused on prosperity for all Canadians. We are taking clear and decisive action to further strengthen our economy, and create quality jobs and a better quality of life for generations to come for our children and our grandchildren.

I will use my time today to highlight certain economic imperatives and to frame the choices we face globally, as governments and citizens alike work to secure long-term prosperity in a difficult global environment that is not about to change soon.

The OECD and the International Monetary Fund predict that our economy will again be among the leaders of the industrialized world over the next two years. For the fourth year in a row, the World Economic Forum said our banks are the soundest in the world. Among G7 countries, Canada has the lowest overall tax rate on new business investment. We have the highest credit rating. Canada is one of only two G7 countries to regain all of the jobs lost in the recession. This was achieved because our government made historic investments in infrastructure, and we encouraged businesses to invest and helped them to avoid layoffs.

In order to come out of a recession, during the recession we must take measures that are timely, targeted and temporary in nature. Governments should never create new permanent programs or institutionalize new government bureaucracies because of a recession. In today's era, resisting protectionism is crucial.

The best road to take to create long-term prosperity and new markets for Canadian products and services is to pursue free and open trade. For example, a trade agreement with the European Union is a key part of the most ambitious trade expansion program in Canadian history. With one in five Canadian jobs generated by trade, a Canada-EU trade agreement has the potential to benefit our nation enormously. It would mean a 20% boost in bilateral trade, a $12 billion annual increase to Canada's economy, which is the equivalent of almost 80,000 new jobs or about an additional $1,000 for the average Canadian family. Such an agreement would benefit Canadian workers, particularly those working in technology in Mississauga and Brampton, and chemicals and plastics, wood and wood products, and resource and renewable energies.

The second and even more important ingredient is the type of foundation we stand on. What we do to prepare before the storm is a good indicator of whether we will be the first to emerge once the hurricane has passed. The wealth we enjoy today here in Canada has been based on the good growth-oriented policies, the right and often challenging choices, and the hard work done in the past by our Conservative government. We have engaged in the transformations necessary to sustain job creation, economic growth and prosperity now and for the next generation. This means two things: making better economic choices now, and preparing ourselves now for the demographic pressures that our economy will face.

We need to keep tax rates down. Keeping taxes low and ensuring the sustainability of our social programs and fiscal position over the next generation is key.

Let us review the record of our Conservative federal government. We reduced personal income taxes and cut the GST from 7% to 6% to 5%. We allowed seniors to split their pension. We established the working income tax benefit for low-income working people. We removed more than a million low-income Canadians from the federal income tax rolls altogether. We established the registered disability savings plan and the tax-free savings accounts, the most important personal savings vehicle since the RRSP. We introduced the children's fitness tax credit and the children's arts tax credit. Altogether, an average family of four saves more than $3,100 in taxes. That is money that stays in their pockets to spend on their priorities.

At the same time, our government reduced taxes on businesses that create jobs for all Canadians. That is a significant advantage for Canada and the global economy. It is helping to create jobs and preserve jobs in communities across our country, now and for the long term. Our Conservative government rolled out one of the largest and most effective economic stimulus plans among the nations of the G20. In Mississauga and Brampton, those investments put our neighbours to work. However, they also helped us to build lasting infrastructure like the new Sheridan College, new swimming pools, a new ambulance station and basic road construction. It was done without taking on the massive debts and long-term deficits now faced by many other countries. It was done without raising taxes.

As a result, in those difficult years Canada has outperformed most other industrialized countries. Since July 2009 our Conservative government has created nearly 700,000 net new jobs. Our net debt-to-GDP ratio remains the lowest in the G7 by far. Whether it is family finances, running a small or large business or running the finances of the entire nation, what we do before and during the economic slump is a good indicator of how bright the future will be. That is why economic action plan 2012 builds on our successful approach. It is a clear plan to make effective and targeted investments to support world-leading research, innovation and entrepreneurship. It supports an ambitious trade expansion plan and puts into place a globally competitive business tax regime. It is also why we are focused on implementing economic action plan 2012 now.

For example, our Conservative government in the past has reduced the general tax rate from 22% in 2007 to 15% in 2012 and cut the small business rates to 11%, while raising the small business threshold to $500,000. That is more than $60 billion in tax relief for job-creating businesses. What does this all mean? KPMG says that business tax costs in the U.S. are 55% higher than in Canada. Forbes magazine says that Canada is the best country in the world to invest and grow a business. Canada has gone from being the least tax competitive G7 country to being the most competitive now. That is from 2005 to now.

So what does this mean on the ground? As I mentioned, it is almost 700,000 new jobs since July 2009. For those who are the proud beneficiaries of one of those 700,000 jobs, it means food on the table, the ability to pay their mortgage and to provide a bit more for their family.

Canada has regained all the output lost during the recession. Business investment in Canada is projected to reach record highs, well beyond pre-recession investments. In addition, we have removed over one million low-income families altogether from the tax rolls. We are cutting taxes in every possible way we can. We have targeted personal income taxes and cut them to the lowest tax rates. We have extended the hiring credit for small businesses. We have increased the amount Canadians can earn tax free. We have provided seniors with the much-needed ability to split their pension income. Most notably, though, we reduced the GST from 7% to 5%. That is something that helps all Canadians every day, every time they make a purchase. It puts approximately $1,000 back into the pockets of the average Canadian family. With this plan, total savings for the average Canadian family are approximately $3,100. Our government has cut taxes over 140 times since Conservatives took office, to the lowest point in almost 50 years.

This next subject is close to my heart as Parliamentary Secretary to the Minister of Veterans Affairs. Budget 2012 is a clear victory for our veterans. I have had the great opportunity to travel across the country to hear the priorities of our veterans. We made a commitment to maintain all benefits to veterans and budget 2012 delivers on that promise.

Our government is also increasing health care transfers to the Province of Ontario by 6%. That is at a time when Ontario says it will only increase its health care spending by 2%. We are delivering more for Ontario. That is this Conservative government delivering for the people of Ontario.

I am very proud to stand in support of economic action plan 2012.