Bill C-38 (Historical)

Jobs, Growth and Long-term Prosperity Act

An Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures

Part 1 of this enactment implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) expands the list of eligible expenses under the Medical Expense Tax Credit to include blood coagulation monitors and their disposable peripherals;
(b) introduces a temporary measure to allow certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract;
(c) extends, for one year, the temporary Mineral Exploration Tax Credit for flow-through share investors;
(d) allows corporations to make split and late eligible dividend designations;
(e) makes the salary of the Governor General taxable and adjusts that salary;
(f) allows a designated partner of a partnership to provide a waiver on behalf of all partners to extend the time limit for issuing a determination in respect of the partnership;
(g) amends the penalty applicable to promoters of charitable donation tax shelters who file false registration information or who fail to register a tax shelter prior to selling interests in the tax shelter;
(h) introduces a new penalty applicable to tax shelter promoters who fail to respond to a demand to file an information return or who file an information return that contains false or misleading sales information;
(i) limits the period for which a tax shelter identification number is valid to one calendar year;
(j) modifies the rules for registering certain foreign charitable organizations as qualified donees;
(k) amends the rules for determining the extent to which a charity has engaged in political activities; and
(l) provides the Minister of National Revenue with the authority to suspend the privileges, with respect to issuing tax receipts, of a registered charity or a registered Canadian amateur athletic association if the charity or association fails to report information that is required to be filed annually in an information return or devotes resources to political activities in excess of the limits set out in the Income Tax Act.
Part 1 also implements other selected income tax measures and related measures. Most notably, it
(a) amends the Income Tax Act consequential on the implementation of the Marketing Freedom for Grain Farmers Act, including the extension of the tax deferral allowed to farmers in a designated area who produce listed grains and receive deferred cash purchase tickets to all Canadian farmers who produce listed grains and receive deferred cash purchase tickets;
(b) provides authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return; and
(c) introduces a requirement for commercial tax preparers to file income tax returns electronically.
Part 2 amends the Excise Tax Act to implement certain excise tax and goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 29, 2012 Budget. It expands the list of GST/HST zero-rated medical and assistive devices as well as the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases. It also exempts certain pharmacists’ professional services from the GST/HST, other than prescription drug dispensing services that are already zero-rated. It further allows certain literacy organizations to claim a rebate of the GST and the federal component of the HST paid on the acquisition of books to be given away for free by those organizations. It also implements legislative requirements relating to the Government of British Columbia’s decision to exit the harmonized sales tax framework. Additional amendments to that Act and related regulations in respect of foreign-based rental vehicles temporarily imported by Canadian residents provide, in certain circumstances, relief from the GST/HST, the Green Levy on fuel-inefficient vehicles and the automobile air conditioner tax. This Part further amends that Act to ensure that changes to the standardized fuel consumption test method used for the EnerGuide, as announced on February 17, 2012 by the Minister of Natural Resources, do not affect the application of the Green Levy.
Finally, Part 2 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to provide authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return.
Part 3 contains certain measures related to responsible resource development.
Division 1 of Part 3 enacts the Canadian Environmental Assessment Act, 2012, which establishes a new federal environmental assessment regime. Assessments are conducted in relation to projects, designated by regulations or by the Minister of the Environment, to determine whether they are likely to cause significant adverse environmental effects that fall within the legislative authority of Parliament, or that are directly linked or necessarily incidental to a federal authority’s exercise of a power or performance of a duty or function that is required for the carrying out of the project.
The Canadian Environmental Assessment Agency, the Canadian Nuclear Safety Commission, the National Energy Board or a review panel established by the Minister are to conduct assessments within applicable time limits. At the end of an assessment, a decision statement is to be issued to the project proponent who is required to comply with the conditions set out in it.
The enactment provides for cooperation between the federal government and other jurisdictions by enabling the delegation of an environmental assessment, the substitution of the process of another jurisdiction for an environmental assessment under the Act and the exclusion of a project from the application of the Act when there is an equivalent assessment by another jurisdiction. The enactment requires that there be opportunities for public participation during an environmental assessment, that participant funding programs and a public registry be established, and that there be follow-up programs in relation to all environmental assessments. It also provides for powers of inspection and fines.
Finally, the enactment specifies that federal authorities are not to take certain measures regarding the carrying out of projects on federal lands or outside Canada unless they determine that those projects are not likely to cause significant adverse environmental effects.
This Division also makes related amendments to the Environmental Violations Administrative Monetary Penalties Act and consequential amendments to other Acts, and repeals the Canadian Environmental Assessment Act.
Division 2 of Part 3 amends the National Energy Board Act to allow the Governor in Council to make the decision about the issuance of certificates for major pipelines. It amends the Act to establish time limits for regulatory reviews under the Act and to enhance the powers of the National Energy Board Chairperson and the Minister responsible for the Act to ensure that those reviews are conducted in a timely manner. It also amends the Act to permit the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters and it establishes an administrative monetary penalty system.
Division 3 of Part 3 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters.
Division 4 of Part 3 amends the Nuclear Safety and Control Act to extend the maximum allowable term of temporary members of the Canadian Nuclear Safety Commission from six months to three years. It is also amended to allow for a licence to be transferred with the consent of that Commission and it puts in place an administrative monetary penalty system.
Division 5 of Part 3 amends the Fisheries Act to focus that Act on the protection of fish that support commercial, recreational or Aboriginal fisheries and to more effectively manage those activities that pose the greatest threats to these fisheries. The amendments provide additional clarity for the authorization of serious harm to fish and of deposits of deleterious substances. The amendments allow the Minister to enter into agreements with provinces and with other bodies, provide for the control and management of aquatic invasive species, clarify and expand the powers of inspectors, and permit the Governor in Council to designate another Minister as the Minister responsible for the administration and enforcement of subsections 36(3) to (6) of the Fisheries Act for the purposes of, and in relation to, subject matters set out by order.
Division 6 of Part 3 amends the Canadian Environmental Protection Act, 1999 to provide the Minister of the Environment with the authority to renew disposal at sea permits in prescribed circumstances. It is also amended to change the publication requirements for disposal at sea permits and to provide authority to make regulations respecting time limits for their issuance and renewal.
Division 7 of Part 3 amends the Species at Risk Act to allow for the issuance of authorizations with a longer term, to clarify the authority to renew the authorizations and to make compliance with conditions of permits enforceable. The Act is also amended to provide authority to make regulations respecting time limits for the issuance and renewal of permits under the Act. Furthermore, section 77 is amended to ensure that the National Energy Board will be able to issue a certificate when required to do so by the Governor in Council under subsection 54(1) of the National Energy Board Act.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends a number of Acts to eliminate the requirement for the Auditor General of Canada to undertake annual financial audits of certain entities and to assess the performance reports of two agencies. This Division also eliminates other related obligations.
Division 2 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Cooperative Credit Associations Act to prohibit the issuance of life annuity-like products.
Division 3 of Part 4 provides that PPP Canada Inc. is an agent of Her Majesty for purposes limited to its mandated activities at the federal level, including the provision of advice to federal departments and Crown corporations on public-private partnership projects.
Division 4 of Part 4 amends the Northwest Territories Act, the Nunavut Act and the Yukon Act to provide the authority for the Governor in Council to set, on the recommendation of the Minister of Finance, the maximum amount of territorial borrowings and to make regulations in relation to those maximum amounts, including what constitutes borrowing, the relevant entities and the valuation of the borrowings.
Division 5 of Part 4 amends the Financial Administration Act to modify, for parent Crown corporations, the period to which their quarterly financial reports relate, so that it is aligned with their financial year, and to include in the place of certain annual tabling requirements related to the business and activities of parent Crown corporations a requirement to make public consolidated quarterly reports on their business and activities. It also amends the Alternative Fuels Act and the Public Service Employment Act to eliminate certain reporting requirements.
Division 6 of Part 4 amends the Department of Human Resources and Skills Development Act to establish the Social Security Tribunal and to add provisions authorizing the electronic administration or enforcement of programs, legislation, activities or policies. It also amends the Canada Pension Plan, the Old Age Security Act and the Employment Insurance Act so that appeals from decisions made under those Acts will be heard by the Social Security Tribunal. Finally, it provides for transitional provisions and makes consequential amendments to other Acts.
Division 7 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the protection of personal information obtained in the course of administering or enforcing the Canada Pension Plan and the Old Age Security Act and repeals provisions in the Canada Pension Plan and the Old Age Security Act that are substantially the same as those that are added to the Human Resources and Skills Development Act.
Division 8 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the social insurance registers and Social Insurance Numbers. It also amends the Canada Pension Plan in relation to Social Insurance Numbers and the Employment Insurance Act to repeal certain provisions relating to the social insurance registers and Social Insurance Numbers and to maintain the power to charge the costs of those registers to the Employment Insurance Operating Account.
Division 9 of Part 4 amends the Parks Canada Agency Act to provide that the Agency may enter into agreements with other ministers or bodies to assist in the administration and enforcement of legislation in places outside national parks, national historic sites, national marine conservation areas and other protected heritage areas if considerations of geography make it impractical for the other minister or body to administer and enforce that legislation in those places. It also amends that Act to provide that the Chief Executive Officer is to report to the Minister of the Environment under section 31 of that Act every five years. It amends that Act to remove the requirements for annual corporate plans, annual reports and annual audits, and amends that Act, the Canada National Parks Act and the Canada National Marine Conservation Areas Act to provide that that Minister is to review management plans for national parks, national historic sites, national marine conservation areas and other protected heritage areas at least every 10 years and is to have any amendments to a plan tabled in Parliament.
Division 10 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act in order to allow public sector investment pools that satisfy certain criteria, including pursuing commercial objectives, to directly invest in a Canadian financial institution, subject to approval by the Minister of Finance.
Division 11 of Part 4 amends the National Housing Act, the Canada Mortgage and Housing Corporation Act and the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act to enhance the governance and oversight framework of the Canada Mortgage and Housing Corporation.
This Division also amends the National Housing Act to establish a registry for institutions that issue covered bonds and for covered bond programs and to provide for the protection of covered bond contracts and covered bond collateral in the event of an issuer’s bankruptcy or insolvency. It also makes amendments to the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to prohibit institutions from issuing covered bonds except within the framework established under the National Housing Act. Finally, it includes a coordinating amendment to the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act.
Division 12 of Part 4 implements the Framework Agreement on Integrated Cross-Border Maritime Law Enforcement Operations between the Government of Canada and the Government of the United States of America signed on May 26, 2009.
Division 13 of Part 4 amends the Bretton Woods and Related Agreements Act to reflect an increase in Canada’s quota subscription, as related to the ratification of the 2010 Quota and Governance reform resolution of the Board of Governors of the International Monetary Fund, and to align the timing of the annual report under that Act to correspond to that of the annual report under the Official Development Assistance Accountability Act.
Division 14 of Part 4 amends the Canada Health Act so that members of the Royal Canadian Mounted Police are included in the definition of “insured person”.
Division 15 of Part 4 amends the Canadian Security Intelligence Service Act to
(a) remove the office of the Inspector General;
(b) require the Security Intelligence Review Committee to submit to the Minister of Public Safety and Emergency Preparedness a certificate on the Director of the Canadian Security Intelligence Service’s annual report; and
(c) increase the information on the Service’s activities to be provided by that Committee to that Minister.
Division 16 of Part 4 amends the Currency Act to clarify certain provisions that relate to the calling in and the redemption of coins.
Division 17 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act in order to implement the total transfer protection for the 2012-2013 fiscal year and to give effect to certain elements of major transfer renewal that were announced by the Minister of Finance on December 19, 2011. It also makes certain administrative amendments to that Act and to the Canada Health Act.
Division 18 of Part 4 amends the Fisheries Act to authorize the Minister of Fisheries and Oceans to allocate fish for the purpose of financing scientific and fisheries management activities in the context of joint project agreements.
Division 19 of Part 4 amends the Food and Drugs Act to give the Minister of Health the power to establish a list that sets out prescription drugs or classes of prescription drugs and to provide that the list may be incorporated by reference. It also gives the Minister the power to issue marketing authorizations that exempt a food, or an advertisement with respect to a food, from certain provisions of the Act. The division also provides that a regulation with respect to a food and a marketing authorization may incorporate by reference any document. It also makes consequential amendments to other Acts.
Division 20 of Part 4 amends the Government Employees Compensation Act to allow prescribed entities to be subrogated to the rights of employees to make claims against third parties.
Division 21 of Part 4 amends the International Development Research Centre Act to reduce the maximum number of governors of the Centre to 14, and to consequently change other rules about the number of governors.
Division 22 of Part 4 amends Part I of the Canada Labour Code to require the parties to a collective agreement to file a copy of it with the Minister of Labour, subject to the regulations, as a condition for it to come into force. It amends Part III of that Act to require employers that provide benefits to their employees under long-term disability plans to insure those plans, subject to certain exceptions. The Division also amends that Part to create an offence and to increase maximum fines for offences under that Part.
Division 23 of Part 4 repeals the Fair Wages and Hours of Labour Act.
Division 24 of Part 4 amends the Old Age Security Act to provide the Minister of Human Resources and Skills Development with the authority to waive the requirement for an application for Old Age Security benefits for many eligible seniors, to gradually increase the age of eligibility for the Old Age Security Pension, the Guaranteed Income Supplement, the Allowance and the Allowance for the Survivor and to allow individuals to voluntarily defer their Old Age Security Pension up to five years past the age of eligibility, in exchange for a higher, actuarially adjusted, pension.
Division 25 of Part 4 dissolves the Public Appointments Commission and its secretariat.
Division 26 of Part 4 amends the Seeds Act to give the President of the Canadian Food Inspection Agency the power to issue licences to persons authorizing them to perform activities related to controlling or assuring the quality of seeds or seed crops.
Division 27 of Part 4 amends the Statutory Instruments Act to remove the distribution requirements for the Canada Gazette.
Division 28 of Part 4 amends the Investment Canada Act in order to authorize the Minister of Industry to communicate or disclose certain information relating to investments and to accept security in order to promote compliance with undertakings.
Division 29 of Part 4 amends the Customs Act to allow the Minister of Public Safety and Emergency Preparedness to designate a portion of a roadway or other access way that leads to a customs office and that is used by persons arriving in Canada and by persons travelling within Canada as a mixed-traffic corridor. All persons who are travelling in a mixed-traffic corridor must present themselves to a border services officer and state whether they are arriving from a location outside or within Canada.
Division 30 of Part 4 gives retroactive effect to subsections 39(2) and (3) of the Pension Benefits Standards Act, 1985.
Division 31 of Part 4 amends the Railway Safety Act to limit the apportionment of costs to a road authority when a grant has been made under section 12 of that Act.
Division 32 of Part 4 amends the Canadian International Trade Tribunal Act to replace the two Vice-chairperson positions with two permanent member positions.
Division 33 of Part 4 repeals the International Centre for Human Rights and Democratic Development Act and authorizes the closing out of the affairs of the Centre established by that Act.
Division 34 of Part 4 amends the Health of Animals Act to allow the Minister of Agriculture and Agri-Food to declare certain areas to be control zones in respect of a disease or toxic substance. The enactment also grants the Minister certain powers, including the power to make regulations prohibiting the movement of persons, animals or things in the control zones for the purpose of eliminating a disease or toxic substance or controlling its spread and the power to impose conditions on the movement of animals or things in those zones.
Division 35 of Part 4 amends the Canada School of Public Service Act to abolish the Board of Governors of the Canada School of Public Service and to place certain responsibilities on the Minister designated for the purposes of the Act and on the President of the School.
Division 36 of Part 4 amends the Bank Act by adding a preamble to it.
Division 37 of Part 4 amends the Corrections and Conditional Release Act to eliminate the requirement of a hearing for certain reviews.
Division 38 of Part 4 amends the Coasting Trade Act to add seismic activities to the list of exceptions to the prohibition against foreign ships and non-duty paid ships engaging in the coasting trade.
Division 39 of Part 4 amends the Status of the Artist Act to dissolve the Canadian Artists and Producers Professional Relations Tribunal and transfer its powers and duties to the Canada Industrial Relations Board.
Division 40 of Part 4 amends the National Round Table on the Environment and the Economy Act to give the Round Table the power to sell or otherwise dispose of its assets and satisfy its debts and liabilities and to give the Minister of the Environment the power to direct the Round Table in respect of the exercise of some of its powers. The Division provides for the repeal of the Act and makes consequential amendments to other acts.
Division 41 of Part 4 amends the Telecommunications Act to change the rules relating to foreign ownership of Canadian carriers eligible to operate as telecommunications common carriers and to permit the recovery of costs associated with the administration and enforcement of the national do not call list.
Division 42 of Part 4 amends the Employment Equity Act to remove the requirements that are specific to the Federal Contractors Program for Employment Equity.
Division 43 of Part 4 amends the Employment Insurance Act to permit a person’s benefits to be determined by reference to their highest earnings in a given number of weeks, to permit regulations to be made respecting what constitutes suitable employment, to remove the requirement that a consent to deduction be in writing, to provide a limitation period within which certain repayments of overpayments need to be deducted and paid and to clarify the provisions respecting the refund of premiums to self-employed persons. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including requiring that the rate be set on a seven-year break-even basis once the Employment Insurance Operating Account returns to balance. The Division makes consequential amendments to the Canada Employment Insurance Financing Board Act.
Division 44 of Part 4 amends the Customs Tariff to make certain imported fuels duty-free and to increase the travellers’ exemption thresholds.
Division 45 of Part 4 amends the Canada Marine Act to require provisions of a port authority’s letters patent relating to limits on the authority’s power to borrow money to be recommended by the Minister of Transport and the Minister of Finance before they are approved by the Governor in Council.
Division 46 of Part 4 amends the First Nations Land Management Act to implement changes made to the Framework Agreement on First Nation Land Management, including changes relating to the description of land that is to be subject to a land code, and to provide for the coming into force of land codes and the development by First Nations of environmental protection regimes.
Division 47 of Part 4 amends the Canada Travelling Exhibitions Indemnification Act to increase the maximum indemnity in respect of individual travelling exhibitions, as well as the maximum indemnity in respect of all travelling exhibitions.
Division 48 of Part 4 amends the Canadian Air Transport Security Authority Act to provide that the chief executive officer of the Authority is appointed by the Governor in Council and that an employee may not replace the chief executive officer for more than 90 days without the Governor in Council’s approval.
Division 49 of Part 4 amends the First Nations Fiscal and Statistical Management Act to repeal provisions related to the First Nations Statistical Institute and amends that Act and other Acts to remove any reference to that Institute. It authorizes the Minister of Indian Affairs and Northern Development to close out the Institute’s affairs.
Division 50 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to provide for the payment or reimbursement of fees for career transition services for veterans or their survivors.
Division 51 of Part 4 amends the Department of Human Resources and Skills Development Act to add powers, duties and functions that are substantially the same as those conferred by the Department of Social Development Act. It repeals the Department of Social Development Act and, in doing so, eliminates the National Council of Welfare.
Division 52 of Part 4 amends the Wage Earner Protection Program Act in order to correct the English version of the definition “eligible wages”.
Division 53 of Part 4 repeals the Kyoto Protocol Implementation Act.
Division 54 of Part 4 amends the Immigration and Refugee Protection Act and the Budget Implementation Act, 2008 to provide for the termination of certain applications for permanent residence that were made before February 27, 2008. This Division also amends the Immigration and Refugee Protection Act to, among other things, authorize the Minister of Citizenship and Immigration to give instructions establishing and governing classes of permanent residents as part of the economic class and to provide that the User Fees Act does not apply in respect of fees set by those instructions. Furthermore, this Division amends the Immigration and Refugee Protection Act to allow for the retrospective application of certain regulations and certain instructions given by the Minister, if those regulations and instructions so provide, and to authorize regulations to be made respecting requirements imposed on employers in relation to authorizations to work in Canada.
Division 55 of Part 4 enacts the Shared Services Canada Act to establish Shared Services Canada to provide certain administrative services specified by the Governor in Council. The Act provides for the Governor in Council to designate a minister to preside over Shared Services Canada.
Division 56 of Part 4 amends the Assisted Human Reproduction Act to respond to the Supreme Court of Canada decision in Reference re Assisted Human Reproduction Act that was rendered in 2010, including by repealing the provisions that were found to be unconstitutional and abolishing the Assisted Human Reproduction Agency of Canada.

Jobs, Growth and Long-term Prosperity Act

[The Acting Speaker, Bruce Stanton]

Order, please.

Questions and comments.

The hon. member is rising on a point of order?

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

Mr. Speaker, I just want to clarify. The reason they stripped the workers of their rights back then was that we brought a free trade agreement in that has created—

[The Acting Speaker, Bruce Stanton]

Order, please. That is not a point of order. We are into debate as to the facts and, of course, that is a principle in the debate as it goes.

Questions and comments.

The hon. member for Saint-Lambert.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I would like to congratulate the hon. member for her remarks. As she pointed out, this massive omnibus bill goes way beyond the budget. Once more, the Conservatives are trying to rush their bill through without letting Canadians study it carefully, let alone the hon. members here. To make things worse, they are trying to include changes that will reduce transparency and democracy even more. Can the hon. member comment on this affront to our democracy and to parliamentary debate?

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Mr. Speaker, what is happening to our democracy is absolutely terrifying. This is 425 pages of so-called budget implementation and no opportunity to fully respond. This is 72 pieces of legislation that are being changed. An undertaking like that should be considered over months and years, not in a matter of days.

The Conservatives are pleased that they have given all these hours. Yes, they have given hours. However, an ordinary budget implementation bill is about 30 or 35 pages long.

The current government has committed a travesty against the people of this country.

Fortunately, there is an opposition. New Democrats are standing up for our country, our democracy and the people who are counting on us to save our social safety net and protect them from what can only be called unfair austerity and a deliberate destruction of what we value.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I am here today to voice my strong support for Bill C-38, the jobs, growth and long-term prosperity act, which would implement key measures from economic action plan 2012.

I will be sharing my time with the hon. member for Prince Albert.

In an uncertain global economy, our Conservative government has a positive, forward-looking, low-tax plan for jobs and growth, a plan that is working and has served Canadians well. Since we first introduced the economic action plan, Canada's economy has been among the strongest in the western world. Indeed, Canada's economic record has every reason to make Canadians proud. Since July 2009, employment has increased by 760,000, the strongest record for job growth among the G7 countries. Even better, close to 90% of those jobs created since July 2009 have been in full-time positions and about 80% are in the private sector. Canada's GDP is now significantly above pre-recession levels, again the best performance in the G7. These are the facts.

Our opposition colleagues do not like to listen to us share these facts, but they might want to listen to those from the rest of the world and what they are saying about Canada's economic record and how Canada has weathered this economic storm.

Both the IMF and the OECD forecast that we will be among the strongest economic growth nations in the G7 over this year and next. For the fourth year in a row, the World Economic Forum rated Canada's banking system as the world's soundest. Forbes magazine has ranked Canada number one in its annual review of the best countries for business. Three credit rating companies, Moody's, Fitch and Standard & Poor's, have reaffirmed their highest AAA ratings for Canada.

The praise from independent observers does not stop there. Indeed, listen to what Iowa Governor Terry Branstad recently told CBS News in the U.S. He stated:

...in the '80s and early '90s, a Canadian dollar was only worth 65 cents to the American dollar. Canadian financial institutions weren't as healthy as ours. And their taxes were higher. Now their dollar is comparable with ours. Their financial institutions are healthier and their taxes are considerably lower. Their federal corporate tax is only 15 percent. So I think we can learn from Canada. Not follow the European example of spending and spending and getting ourselves into such a tremendous financial mess....

Clearly, as the quote suggests, Canada's economic resilience reflects the actions of our Conservative government that we have taken to date, such as lowering taxes, investing in research and development, rebuilding Canada's infrastructure, reducing red tape and promoting free trade and innovation.

However, we all know there is more to be done and we cannot be complacent in our success.

Despite solid job creation since July 2009, too many Canadians are still looking for work. We also know that the global economy remains highly fragile, and all the more so due to the recent economic developments in Europe. That is why economic action plan 2012 focuses on the drivers of growth and job creation—innovation, investment, education, skills and communities—underpinned by our ongoing commitment to keeping taxes low and returning to balanced budgets over the medium term.

In the Waterloo region, the capacity of our economic engines has been enhanced. Our airport, our post-secondary institutions and our high-tech business incubators are all better positioned today than they were, thanks to the efforts of this government to rise above the noise and focus on the economy.

Moreover, we also know that balancing the books is important to maintaining a healthy economy, something the opposition just does not seem to understand when it is advocating for big government and bloated bureaucracies. Quite simply, eliminating the deficit in the medium term is our goal. We will maintain and enhance our Canadian economic advantage now and for generations to come so that our children and grandchildren can benefit from a strong Canadian economy. On the other hand, the opposition wants to leave our children and grandchildren a massive credit card bill.

Balanced budgets are important not for their own sake but for what they make possible for governments to accomplish. Reducing debt frees up tax dollars otherwise absorbed by interest costs, which can then be reinvested in what matters to Canadians, like health care, public services or lower taxes.

This keeps interest rates low, encouraging businesses to create jobs and invest for the future. It signals that public services are sustainable over the long term. It strengthens the country's ability to respond to economic shocks such as the recent global financial crisis and challenges such as population aging. It preserves the gains made in Canada's low-tax plan, fostering the long-term growth that will continue to generate high-wage jobs for Canadians.

Perhaps, among the benefits I have mentioned, low taxes are the most tangible evidence of our good economic governance, guided by the principle that Canadians should keep more of their hard-earned money. We understand that taxpayers willingly and honestly provide a portion of their hard-earned income to fund health care, social programs and other vital services that benefit all Canadians, asking only in return that governments manage their tax dollars wisely and everyone pay their fair share.

That is why our Conservative government is committed to taking aggressive steps to close tax loopholes that allow a few businesses and individuals to take advantage of hard-working Canadians who pay their fair share of tax. That is also why our Conservative government took key steps in economic action plan 2012 to eliminate billions in wasteful, inefficient and duplicative spending.

Specifically, economic action plan 2012 and today's act would move to ensure responsible management of taxpayers' dollars by refocusing government and programs, by making it easier for Canadians and businesses to deal with their government and by modernizing and reducing the back office.

One of the highest-profile ways we would accomplish this is by modernizing Canada's currency by gradually eliminating the penny from Canada's coinage system, something almost every Canadian agrees was long overdue. In contrast to other coins, taxpayers lose money on every new penny produced by the Royal Canadian Mint, as the cost to government is 1.6¢ to produce each new penny. The estimated cost to the government of supplying new pennies is approximately $11 million each year.

Other countries, such as New Zealand, Australia, the Netherlands, Norway, Finland and Sweden have all made smooth transitions to a penny-free economy. Again, this was long-overdue, a long overdue example of a common sense change that would benefit Canadian taxpayers.

In the words of Brett Wilson, a leading Canadian entrepreneur best known as a former panellist on CBC's Dragon's Den:

It comes down to the economics of creating these things.... If it costs a penny and a half to make a penny, the more you make, the more you lost. It is just dumb business.

These are measures that deliver results to Canadians, measures that do respect taxpayers' dollars

. I am proud to say that our Conservative government has a record that is second to none when it comes to spending tax dollars responsibility, allowing our government to keep taxes low. That is why the overall federal tax burden is the lowest it has been in 50 years. This is the lowest tax burden in 50 years.

Bill C-38 further demonstrates our government's commitment to responsible use of tax dollars. With a comprehensive and forward-looking agenda that would deliver high-quality jobs, economic growth and sound public finances, economic action plan 2012 would allow Canada to meet these challenges and emerge from them stronger than ever, today and into the future.

As my local daily paper, The Record, noted, economic action plan 2012:

... is a moderate, intelligent and visionary plan to preserve a progressive, prosperous Canada in a global landscape filled with both upheaval and promise.

And for this reason it is the most ambitious and important federal budget in a generation.

Obviously, there are so many more positive things included in economic action plan 2012, and unfortunately my time has almost run out. I would love to spend a little more time explaining all these great things to Canadians, but in the end, I urge all members of the House to support economic action plan 2012. It would be good for Canada and especially for our children and grandchildren.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, speaking of our children and grandchildren, one of the things we hope to do on this side of the House is to leave the planet cleaner and better for our children and grandchildren.

Unfortunately, Bill C-38 would remove environmental oversight from the landscape, from federal responsibility, and would limit the number of environmental assessments.

The most troubling thing, and one to which no one has given us a straight answer, is that it would remove the requirement of a federal environmental assessment to study human health. How does that improve the end result for Canadians, and in particular for our children and grandchildren, if all we are looking after is birds and fish? What about us? What about our children and our grandchildren? The Conservative government has removed the requirement to study human health from that bill.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, my colleague inadvertently answered the question himself when he said that we had removed a number of environmental assessment actions. It does not make sense to have three or four environmental assessments on the same project. We have a policy that once that environmental assessment is completed, it is complete. We do not need to have another agency come in and reassess that project.

On protecting the environment, the misinformation coming from the other side on this is really not helpful at all. In fact, we are strengthening the environmental protection, putting timelines on the need to get these environmental assessments done in a timely manner so that when a company comes into Canada and wants to create a project which will create jobs, within a specific timeline it will have a “yes” or a “no” answer. It still may be no because it is too damaging.

However, there has to be some certainty for companies so they can plan and produce the jobs that our country so desperately needs.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, in listening to the member, I could not help but reflect upon the Paul Martin and Jean Chrétien era. When the Conservatives took over the reins of power, they needed to recognize that we had a healthy economy, that we had a budget that had a huge surplus, well into the billions of dollars, and that in fact at a time in which the recession did not exist, they turned that healthy surplus into a deficit situation.

When we talk about budgets, budgets are about priorities. This year the government has demonstrated its priorities. It says that it wants more members of Parliament, more politicians, which I would argue goes against what the member's very own constituents would want to see. At the same time, it is reducing the number of civil servants.

Would the member not agree that the budget is in fact about priorities, that the government was wrong to increase the number of MPs at the same time, in the same year, in which it would cut back on 19,000 civil servants—

[The Acting Speaker, Bruce Stanton]

Order, please. The hon. member for Kitchener—Conestoga.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I do not think anyone in Canada thinks it is fair for Winnipeg North, for example, to have a population of roughly 79,000 or 80,000 represented by one MP and another MP sitting on this side has over 200,000 constituents to represent. Where is the fairness in the that? Of course Canadians want us to address this inequity.

However, I want to go back to the point he made in his opening comment. Only a Liberal could make conjecture that somehow paying down $37 billion of debt is a waste of taxpayer money. Only a Liberal could imply that using $52 billion of the EI funds that were specifically for EI and squandered in the general revenues was somehow good management.

[Gary Goodyear, Conservative, Minister of State (Science and Technology) (Federal Economic Development Agency for Southern Ontario)]

Mr. Speaker, my colleague mentioned the opposition did not like to share facts. He might be a little off there. The NDP member for London—Fanshawe goes back to her riding and never misses an opportunity to stand behind a fake cheque or show up to cut a ribbon when we fund the great projects that the member actually has voted against in the House. That happens all the time.

Again, this year in this budget we have $1.1 billion for science and technology. Would the member encourage the opposition to vote for science and technology?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I want to thank my colleague for his great leadership on the science and technology file and also on his leadership on the FedDev Ontario file. This has been amazingly successful in creating research and development opportunities, not just in my riding but across Canada.

One example is the Conestoga College research and development. Conestoga College partners with industry and business partners. They come to Conestoga College with a problem. Conestoga College's engineers, students and staff help that business solve the problem. In the process, the student gets the opportunity to work in business, in a real life environment, and the business gets the expertise of a new engineering student. It is a win-win.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I am pleased to rise in the House at third reading in support of Bill C-38, the jobs, growth and long-prosperity act, and the important steps it takes to implement Canada's economic action plan 2012.

Specifically, I would like to discuss the many ways that today's act would strengthen Canada's immigration system

We all recognize that Canada needs a flexible and efficient immigration system. Practically speaking, we need an immigration system capable of addressing the very real labour shortages faced by communities right across Canada, especially in my home province of Saskatchewan.

As Chris Dekker of Enterprise Saskatchewan has noted, “Labour shortages and demands are the No. 1 barrier to doing business in Saskatchewan”. It is no longer a provincial NDP government; it is actually labour shortages.

The degree of labour shortages has forced the provincial government to undertake numerous creative recruitment efforts, such as a recent skilled worker recruitment mission in Ireland, led by our Premier Brad Wall and numerous Saskatchewan businesses. I have to give them credit. They went out and looked for the skills that their employers needed and talked to people who were looking for jobs. What a way to bring them together. I give the premier credit for going to Ireland and recruiting those people.

To assist the good work of the province, our Conservative government has made significant progress in recent years to refocus our system to reduce backlogs, reverse wait times and improve the timeliness of the services we provide.

These reforms ultimately ensure that Canada's economic prosperity is our system's number one priority.

For example, we have placed a high value on attracting newcomers to Canada with the skills and experience to meet our economic demands. However, we need to do more. We must deliver transformational changes to the immigration system that will better generate economic growth and long-term prosperity for Canadians.

We envision a just-in-time system in which the entire process for a skilled immigrant to apply to come to Canada, be accepted and admitted, and become gainfully employed would take only a few months instead of many years. To achieve this vision, we must first address the legacy of the large backlog of applicants under our federal skilled worker program.

We took measures to address the dysfunctional federal skilled worker backlog of 640,000 persons that was allowed to fester under the previous Liberal government. However, the fact remains that we still have a backlog of nearly 300,000 old federal skilled worker applicants.

I am pleased to inform the House today that economic action plan 2012, along with today's act, would help us to reform the immigration system, so it aligns more closely with our economic needs and so it achieves better results, both for newcomers and for Canada. These reforms, I note, have been warmly welcomed in Saskatchewan and beyond.

Canadian Home Builders' Association president Ron Olson of Saskatoon has applauded economic action plan 2012's immigration reform saying, “We have urged the government to address the growing shortage of skilled people required to build and renovate homes. We're pleased that the budget tackles this issue”.

Listen to what Janice MacKinnon, a former NDP finance minister in Saskatchewan, had to say, “[As] somebody from Western Canada...our biggest problem are labour shortages. We have projects that can't proceed because they can't find the skilled workers. The changes they're proposing [in economic action plan 2012] to immigration matter to us so we can get the immigrants we want, when we want”.

How are we doing that?

First, we will eliminate the backlog of old federal skilled worker applications that has nearly crippled our immigration system. This will transform the federal skilled worker program from one that has moved at a snail's pace for older applications, to one that will be able to bring to Canada the people we need when they are needed. The backlog hurts our economy by impeding our system's abilities to respond quickly to our changing economic priorities.

As a result, we will now be able to shift our processing priority toward newer federal skilled worker applicants who are more likely to have the current, in-demand skills that our economy requires.

To ensure that Canada's immigration system will benefit our economic future, Canada needs immigrants who are ready, willing and able to fully integrate into Canada's labour market, particularly where there are existing skills shortages. However, we also need to ensure that the skilled immigrants we choose are the ones Canada needs and that once they arrive here, they are able to put their skills to use immediately.

Economic action plan 2012 also commits to continue working with the provinces and territories to speed up and streamline the credential recognition process for regulated professions.

Under the pan-Canadian framework for the assessment and recognition of foreign qualifications, our goal is to give applicants an answer within a year of their application. We can tell skilled professionals whether their credentials will be recognized or if they will require additional education, training or experience to become licensed in their field.

To date, we have processes in place for eight regulated occupations and we are working with an additional six regulated occupations to add to the list this year. We have also made considerable progress toward improving the foreign credential recognition process for many newcomers who are already in Canada, but we can and must do more.

Skilled immigrants come to Canada with the expectation that they will be able to work in the profession in which they are trained and we owe it to them to ensure that is the case. That is why the changes we are proposing to our immigration system will ensure mandatory assessment of foreign education credentials for federal skilled worker program applicants. This will involve a new requirement for applicants to first have their overseas education credentials assessed by a designated third party before they are accepted. The results of this assessment will be part of the immigration application. The process will be separate from more in-depth assessments that regulatory bodies will use to license professionals from abroad.

Our Conservative government believes that by working together we can find practical ways to give people a green light before they get to Canada, especially if we know they are going to have a better than even chance of being licensed and joining the workforce in Canada. Our goal with this change is to better select immigrants, so they can hit the ground running once they arrive by integrating quickly into our labour market.

This is part of the broader changes we are proposing to improve the federal skilled worker program, bringing it in line with the needs of our modern economy. For instance, we are working to introduce a new skilled trades program that would create a means for skilled tradespersons to be assessed based on criteria geared to the reality of the job, putting more emphasis on practical training and work experience.

It is common sense that to ensure immigration will fuel our future prosperity, we need a system that will help position Canada to attract the world's best talent. That is why our Conservative government is committed to strengthening the immigration system to make it truly proactive, targeted, fast and efficient to help sustain Canada's economic growth and deliver prosperity into the future.

The Canadian Construction Association, or CCA, one of the many of the many supporters of this portion of Bill C-38, states:

CCA was...encouraged by the measures outlined to build a fast and flexible immigration system...In order to continue to build the economy and remain cost competitive, businesses across Canada must have access to the required skilled workers in order to grow and take advantage of the tremendous international demand for Canadian products and services.

I join the Canadian Construction Association and others asking that this House support and pass today's legislation.

When I go back to my province and my riding and talk to the constituents there, they talk about this budget and they see so many benefits and structural changes to our future economy. It really lays a proper foundation for Canada to grow and move into the future. This is a good budget. I cannot see why anybody would vote against it. I encourage all members to get behind the budget and move it forward.

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

Mr. Speaker, I listened intently to what the member had to say and I do not understand where the Conservatives are coming from. On one hand, they say that we have to fill the skilled labour shortage. On the other hand, they want to take skilled labour people who are seasonal workers and force them into other jobs that do not really meet their skills, because we will not using them to their full potential.

However, at the same time, the Conservatives would create a void in the seasonal workforce. Where are these people going to get their training skills? Where will they get people to fill those, if they force the seasonal workers to work somewhere else and then they cannot go back to their seasonal jobs?

Maybe the member can tell me this. Will those workers be able to go back to their seasonal jobs and will they be penalized that?