Bill C-45 (Historical)

Jobs and Growth Act, 2012

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

Part 1 implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) amends the rules relating to Registered Disability Savings Plans (RDSPs) by
(i) replacing the 10-year repayment rule applying to withdrawals with a proportional repayment rule,
(ii) allowing investment income earned in a Registered Education Savings Plan (RESP) to be transferred on a tax-free basis to the RESP beneficiary’s RDSP,
(iii) extending the period that RDSPs of beneficiaries who cease to qualify for the Disability Tax Credit may remain open in certain circumstances,
(iv) amending the rules relating to maximum and minimum withdrawals, and
(v) amending certain RDSP administrative rules;
(b) includes an employer’s contributions to a group sickness or accident insurance plan in an employee’s income in certain circumstances;
(c) amends the rules applicable to retirement compensation arrangements;
(d) amends the rules applicable to Employees Profit Sharing Plans;
(e) expands the eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of bioenergy equipment;
(f) phases out the Corporate Mineral Exploration and Development Tax Credit;
(g) phases out the Atlantic Investment Tax Credit for activities related to the oil and gas and mining sectors;
(h) provides that qualified property for the purposes of the Atlantic Investment Tax Credit will include certain electricity generation equipment and clean energy generation equipment used primarily in an eligible activity;
(i) amends the Scientific Research and Experimental Development (SR&ED) investment tax credit by
(i) reducing the general SR&ED investment tax credit rate from 20% to 15%,
(ii) reducing the prescribed proxy amount, which taxpayers use to claim SR&ED overhead expenditures, from 65% to 55% of the salaries and wages of employees who are engaged in SR&ED activities,
(iii) removing the profit element from arm’s length third-party contracts for the purpose of the calculation of SR&ED tax credits, and
(iv) removing capital from the base of eligible expenditures for the purpose of the calculation of SR&ED tax incentives;
(j) introduces rules to prevent the avoidance of corporate income tax through the use of partnerships to convert income gains into capital gains;
(k) clarifies that transfer pricing secondary adjustments are treated as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act;
(l) amends the thin capitalization rules by
(i) reducing the debt-to-equity ratio from 2:1 to 1.5:1,
(ii) extending the scope of the thin capitalization rules to debts of partnerships of which a Canadian-resident corporation is a member,
(iii) treating disallowed interest expense under the thin capitalization rules as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act, and
(iv) preventing double taxation in certain circumstances when a Canadian resident corporation borrows money from its controlled foreign affiliate;
(m) imposes, in certain circumstances, withholding tax under Part XIII of the Income Tax Act when a foreign-based multinational corporation transfers a foreign affiliate to its Canadian subsidiary, while preserving the ability of the Canadian subsidiary to undertake expansion of its Canadian business; and
(n) phases out the Overseas Employment Tax Credit.
Part 1 also implements other selected income tax measures. Most notably, it introduces tax rules to accommodate Pooled Registered Pension Plans and provides that income received from a retirement compensation arrangement is eligible for pension income splitting in certain circumstances.
Part 2 amends the Excise Tax Act and the Jobs and Economic Growth Act to implement rules applicable to the financial services sector in respect of the goods and services tax and harmonized sales tax (GST/HST). They include rules that allow certain financial institutions to obtain pre-approval from the Minister of National Revenue of methods used to determine their liability in respect of the provincial component of the HST, that require certain financial institutions to have fiscal years that are calendar years, that require group registration of financial institutions in certain cases and that provide for changes to a rebate of the provincial component of the HST to certain financial institutions that render services to clients that are outside the HST provinces. This Part also confirms the authority under which certain GST/HST regulations relating to financial institutions are made.
Part 3 amends the Federal-Provincial Fiscal Arrangements Act to provide the legislative authority to share with provinces and territories taxes in respect of specified investment flow-through (SIFT) entities — trusts or partnerships — under section 122.1 and Part IX.1 of the Income Tax Act, consistent with the federal government’s proposal on the introduction of those taxes. It also provides the legislative authority to share with provinces and territories the tax on excess EPSP amounts imposed under Part XI.4 of the Income Tax Act, consistent with the measures proposed in the March 29, 2012 budget. It also allows the Minister of Finance to request from the Minister of National Revenue information that is necessary for the administration of the sharing of taxes with the provinces and territories.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Jobs and Economic Growth Act as a result of amendments introduced in the Jobs, Growth and Long-term Prosperity Act to allow certain public sector investment pools to directly invest in a federally regulated financial institution.
Division 2 of Part 4 amends the Canada Shipping Act, 2001 to permit the incorporation by reference into regulations of all Canadian modifications to an international convention or industry standard that are also incorporated by reference into the regulations, by means of a mechanism similar to that used by many other maritime nations. It also provides for third parties acting on the Minister of Transport’s behalf to set fees for certain services that they provide in accordance with an agreement with that Minister.
Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, provide for a limited, automatic stay in respect of certain eligible financial contracts when a bridge institution is established. It also amends the Payment Clearing and Settlement Act to facilitate central clearing of standardized over-the-counter derivatives.
Division 4 of Part 4 amends the Fisheries Act to amend the prohibition against obstructing the passage of fish and to provide that certain amounts are to be paid into the Environmental Damages Fund. It also amends the Jobs, Growth and Long-term Prosperity Act to amend the definition of Aboriginal fishery and another prohibition relating to the passage of fish. Finally, it provides transitional provisions relating to authorizations issued under the Fisheries Act before certain amendments to that Act come into force.
Division 5 of Part 4 enacts the Bridge To Strengthen Trade Act, which excludes the application of certain Acts to the construction of a bridge that spans the Detroit River and other works and to their initial operator. That Act also establishes ancillary measures. It also amends the International Bridges and Tunnels Act.
Division 6 of Part 4 amends Schedule I to the Bretton Woods and Related Agreements Act to reflect changes made to the Articles of Agreement of the International Monetary Fund as a result of the 2010 Quota and Governance Reforms. The amendments pertain to the rules and regulations of the Fund’s Executive Board and complete the updating of that Act to reflect those reforms.
Division 7 of Part 4 amends the Canada Pension Plan to implement the results of the 2010-12 triennial review, most notably, to clarify that contributions for certain benefits must be made during the contributory period, to clarify how certain deductions are to be determined for the purpose of calculating average monthly pensionable earnings, to determine the minimum qualifying period for certain late applicants for a disability pension and to enhance the authority of the Review Tribunal and the Pension Appeals Board. It also amends the Department of Human Resources and Skills Development Act to enhance the authority of the Social Security Tribunal.
Division 8 of Part 4 amends the Indian Act to modify the voting and approval procedures in relation to proposed land designations.
Division 9 of Part 4 amends the Judges Act to implement the Government of Canada’s response to the report of the fourth Judicial Compensation and Benefits Commission regarding salary and benefits for federally appointed judges. It also amends that Act to shorten the period in which the Government of Canada must respond to a report of the Commission.
Division 10 of Part 4 amends the Canada Labour Code to
(a) simplify the calculation of holiday pay;
(b) set out the timelines for making certain complaints under Part III of that Act and the circumstances in which an inspector may suspend or reject such complaints;
(c) set limits on the period that may be covered by payment orders; and
(d) provide for a review mechanism for payment orders and notices of unfounded complaint.
Division 11 of Part 4 amends the Merchant Seamen Compensation Act to transfer the powers and duties of the Merchant Seamen Compensation Board to the Minister of Labour and to repeal provisions that are related to the Board. It also makes consequential amendments to other Acts.
Division 12 of Part 4 amends the Customs Act to strengthen and streamline procedures related to arrivals in Canada, to clarify the obligations of owners or operators of international transport installations to maintain port of entry facilities and to allow the Minister of Public Safety and Emergency Preparedness to require prescribed information about any person who is or is expected to be on board a conveyance.
Division 13 of Part 4 amends the Hazardous Materials Information Review Act to transfer the powers and functions of the Hazardous Materials Information Review Commission to the Minister of Health and to repeal provisions of that Act that are related to the Commission. It also makes consequential amendments to other Acts.
Division 14 of Part 4 amends the Agreement on Internal Trade Implementation Act to reflect changes made to Chapter 17 of the Agreement on Internal Trade. It provides primarily for the enforceability of orders to pay tariff costs and monetary penalties made under Chapter 17. It also repeals subsection 28(3) of the Crown Liability and Proceedings Act.
Division 15 of Part 4 amends the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small businesses. An employer whose premiums were $10,000 or less in 2011 will be refunded the increase in 2012 premiums over those paid in 2011, to a maximum of $1,000.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide for an electronic travel authorization and to provide that the User Fees Act does not apply to a fee for the provision of services in relation to an application for an electronic travel authorization.
Division 17 of Part 4 amends the Canada Mortgage and Housing Corporation Act to remove the age limit for persons from outside the federal public administration being appointed or continuing as President or as a director of the Corporation.
Division 18 of Part 4 amends the Navigable Waters Protection Act to limit that Act’s application to works in certain navigable waters that are set out in its schedule. It also amends that Act so that it can be deemed to apply to certain works in other navigable waters, with the approval of the Minister of Transport. In particular, it amends that Act to provide for an assessment process for certain works and to provide that works that are assessed as likely to substantially interfere with navigation require the Minister’s approval. It also amends that Act to provide for administrative monetary penalties and additional offences. Finally, it makes consequential and related amendments to other Acts.
Division 19 of Part 4 amends the Canada Grain Act to
(a) combine terminal elevators and transfer elevators into a single class of elevators called terminal elevators;
(b) replace the requirement that the operator of a licensed terminal elevator receiving grain cause that grain to be officially weighed and officially inspected by a requirement that the operator either weigh and inspect that grain or cause that grain to be weighed and inspected by a third party;
(c) provide for recourse if an operator does not weigh or inspect the grain, or cause it to be weighed or inspected;
(d) repeal the grain appeal tribunals;
(e) repeal the requirement for weigh-overs; and
(f) provide the Canadian Grain Commission with the power to make regulations or orders with respect to weighing and inspecting grain and the security that is to be obtained and maintained by licensees.
It also amends An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to Repeal the Grain Futures Act as well as other Acts, and includes transitional provisions.
Division 20 of Part 4 amends the International Interests in Mobile Equipment (aircraft equipment) Act and other Acts to modify the manner in which certain international obligations are implemented.
Division 21 of Part 4 makes technical amendments to the Canadian Environmental Assessment Act, 2012 and amends one of its transitional provisions to make that Act applicable to designated projects, as defined in that Act, for which an environmental assessment would have been required under the former Act.
Division 22 of Part 4 provides for the temporary suspension of the Canada Employment Insurance Financing Board Act and the dissolution of the Canada Employment Insurance Financing Board. Consequently, it enacts an interim Employment Insurance premium rate-setting regime under the Employment Insurance Act and makes amendments to the Canada Employment Insurance Financing Board Act, the Department of Human Resources and Skills Development Act, the Jobs, Growth and Long-term Prosperity Act and Schedule III to the Financial Administration Act.
Division 23 of Part 4 amends the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act and makes consequential amendments to other Acts.
The Canadian Forces Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
The Public Service Superannuation Act is amended to provide that contributors pay no more than 50% of the current service cost of the pension plan. In addition, the pensionable age is raised from 60 to 65 in relation to persons who become contributors on or after January 1, 2013.
The Royal Canadian Mounted Police Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
Division 24 of Part 4 amends the Canada Revenue Agency Act to make section 112 of the Public Service Labour Relations Act applicable to the Canada Revenue Agency. That section makes entering into a collective agreement subject to the Governor in Council’s approval. The Division also amends the Canada Revenue Agency Act to require that the Agency have its negotiating mandate approved by the President of the Treasury Board and to require that it consult the President of the Treasury Board before determining certain other terms and conditions of employment for its employees.

Job and Growth Act, 2012

[The Acting Speaker, Bruce Stanton]

The hon. member for LaSalle—Émard on a point of order.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I ask for the unanimous consent of the House to move the following motion: “That, notwithstanding any Standing Order or usual practice of the House, clauses 9, 27, 28 and 62 to 64 related to the scientific research and experimental development tax credit be removed from Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, and that these clauses do compose Bill C-47; that Bill C-47 be entitled Income Tax Act and Related Regulations; that Bill C-47 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Industry, Science and Technology; that Bill C-45 retain the status on the order paper that it had prior to the adoption of this order; that Bill C-45 be reprinted as amended; and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.”

We are moving this motion to ensure that some parts of Bill C-45 are properly examined by the respective committees. We are of the opinion that the Standing Committee on Industry, Science and Technology is in the best position to examine these specific provisions of the legislation.

[The Acting Speaker, Bruce Stanton]

Does the hon. member for LaSalle—Émard have the unanimous consent of the House to propose this motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Bruce Stanton]

There is not unanimous consent.

Resuming debate. The hon. member for Malpeque.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I appreciate the opportunity to speak to Bill C-45. However, I admit that I am saddened by what the first omnibus bill did in the spring and by what this omnibus bill would do to the ability of the federal government to do what it is there for, which is to provide services for Canadians. They undermine the government's ability to do that.

I want to review what my colleague from Charlottetown outlined when he said that much of this bill, previous bills and previous policies by the current government will have and have had an impact on P.E.I. and the seasonal industries and, indeed, all of Canada, but specifically on Prince Edward Island. We are the only province without a passport office. We are the only province without a Citizenship and Immigration office, which the government closed. We are the only province that will not have a local office to serve veterans in person, as the government will close it. We are the only province that will have no CRA counter service because that minister who is from Prince Edward Island will close it. We also are a province that is being severely punished with changes to employment insurance, punishing our seasonal workers, our seasonal industries and our economy.

I see that the Minister of Agriculture and Agri-Food is here listening intensely. His actions recently in cutting AgriStability from 85% of the reference margin to 70% and cutting AgriInvest from 1.5% to 1% destroys the safety net for the farm community. His government has provided no assistance whatsoever for the hog industry, which is in serious trouble. We have lost researchers at the research station in both the potato industry and the grain industry, important to our number one industry, the agricultural industry. As well, we have had serious cost recovery fees at the Canadian Food Inspection Agency which affect our number one industry, which is potatoes.

I will read the notice to the potato industry on September 19 from the Canadian Food Inspection Agency. It reads:

The Canadian Food Inspection Agency (CFIA) will be phasing in user fees for potato cyst nematode...sample collection and analysis activities related to export certification of seed potatoes.

It is another instance of taking away services and downloading costs on to the primary producers in that particular case. It kind of makes one wonder where the regional minister from P.E.I. is because the services to Prince Edward Island have been decimated since 2006 when the present Prime Minister came into office.

However, let us look in general terms at Bill C-45 because we should mention some of the general areas where there is huge concern. It is a huge bill affecting some 60 pieces of legislation. This is a way for the government to take away the democratic right of Canadians to analyze each piece of legislation, to have a vote and to have their say on it. This bill rewrites the laws protecting Canada's waterway. It slashes tax credits for research and development and an investment tax credit that I once used myself on the farm. They are very good ways to invest and bring technology up. The government would cancel those measures. It would kill the investment tax credits in mining and in Atlantic Canada that have helped keep our economy strong.

Bill C-45 redefines aboriginal fisheries without even consulting the first nations community. The bill would eliminate the Hazardous Materials Information Review Commission. It corrects numerous mistakes in Bill C-38, including some relating to environmental assessment and fisheries. It also would suspend the EI financing board. It also would undermine the ability of the Canadian Grain Commission to do its job in this country.

We are seeing serious cuts to front line government services and a direct attack on those who require some kind of assistance. My colleague talked considerably about the changes that were made to employment insurance, such as the clawback while on claim and taking 50¢ on the dollar out of people's pockets who need it most. It is a change that did not need to be made and a change on which there was no consultation with employees or employers. It is a change that hurts our economy and our seasonal industries. It hurts them in four ways: first, the employees by leaving them less money; second, the employer who will have more difficulty finding employees; third, the economy; and fourth, it will cause problems because if a farmer, for instance, needs workers for a day and people say that they cannot work for half wages because the Government of Canada will claw back half their wages, then they will demand cash, and we do not want to get into that kind of an economy.

In fact, the minister of innovation and advanced learning for P.E.I. stated the following:

Our seasonal industries -- fishing, agriculture and tourism -- are the backbone of our economy.... We need the federal government to consider the strong seasonal nature of our province and work with us to ensure changes to the EI program do not negatively affect Islanders and our economy. Seasonal employees and employers are skilled workers who ensure our province's livelihood and they rely on employment insurance to bridge the gap between seasonal employment. Negatively impacting our seasonal workers and their employers will negatively impact our province as a whole.

That statement is absolutely true. With the actions of the government on employment insurance, this act should instead be called the drive people into poverty act. It likes simple names for acts and that is what it is doing in this case. The clawback is hurting people and now, after losing the five week pilot project, I do not know how people will to survive the consequences of that action. It is a serious problem and the government did not need to do it.

This bill follows on the spring omnibus bill, which went after old age security. It upped the age from 65 to 67. Now we know, with the information coming out, that the system was secure, as we said at the time. There is no real saving to the government as a result of that decision. Three one-hundredths of a per cent of the GDP of the country by 2030 is just a rounding error for the way the cabinet spends money. There were, as I said, changes to the Coastal Fisheries Protection Act in the spring which hurt services to Canada. There were changes to the environment and the National Energy Board, slashes at Parks Canada, and the cutting of the community access program. Those actions were done in the spring and now we have this, which will slash government services even more.

The last and most important point for Canadians is a quote from a report that was in the press on September 28. It states:

A new report from a federal spending watchdog concludes the Conservative government’s changes to health funding will ultimately download billions of dollars in medical costs annually to the provinces, something premiers and opposition parties say will erode public health care and provincial finances.

That is a hallmark of Canada's health care system and the government is cutting services to the public, downloading costs to provinces and not living up to its obligations as a federal government for the good of the country. It is a shame and the government should be ashamed of itself.

The House resumed consideration of the motion that Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, be read the second time and referred to a committee.

Jobs and Growth Act, 2012

[The Acting Speaker, Bruce Stanton]

We are going to questions and comments. I assure the hon. member for Malpeque that he still has the full five minutes for questions and comments.

The hon. member for Charlottetown.

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, I congratulate my colleague from Malpeque for his excellent speech. Some of it sounded familiar.

My question for the member relates to economic development on Prince Edward Island. A project that was announced back in 2005 and still has not taken place could have some significant effects to the economy of Prince Edward Island, and he would know that what I am talking about is the construction of a third electrical cable between New Brunswick and Prince Edward Island, which again is conspicuously absent from any of the economic plans of the government.

I would invite him to comment on the potential impact of a project like that and what it would do, should the government decide to reverse the decision it made in 2006 to cancel the project.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, it is because of the electrical cable decision by the current Prime Minister that we probably should have expected the kind of attack that we are seeing on Atlantic Canada and seasonal industries now.

When the Liberal Party was in government, the minister of industry at the time, I believe it was—or it might have been the minister of the environment—signed an agreement with the premier of Prince Edward Island, who was a Conservative premier, for a third energy cable to Prince Edward Island, fully funded by the Government of Canada. It was a signed agreement. One of the first acts of this particular Prime Minister when he came to power was to cancel that signed agreement.

That energy cable to Prince Edward Island is extremely important. Number one, it is quite expensive and it really took multi-million dollars out of the system, I believe the cost was close to $90 million, but it would have provided us an energy alternative, both for expanding our own energy industry in terms of exporting wind power, which is a major policy of the provincial government at the moment, and having it as a safeguard in the import of power as well.

However, the first act of the Conservative Prime Minister was to cancel that energy cable to Prince Edward Island. Now we hear they are in discussions again. Costs are up, but it should have told us at the time that the Prime Minister does not care, because we see cut after cut toward our province.

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board]

Mr. Speaker, it is a great honour to be here today. I am splitting my time with the hon. member for Mississauga—Streetsville and I am honoured to do that. I know he will make a great presentation.

Today we are here to talk about Bill C-45, Jobs and Growth Act, 2012. It has been 12 years since I was elected to the House of Commons. I was thinking back to when I first came here as a new member of Parliament and how exciting it was to be in this place and to realize that we had a lot of work to do, because the Liberals were in power at that time and we could see that the country was going backward, that things were not working well for the country and it was a bad situation.

The present Prime Minister came to lead our party and in every election we were able to increase our position in the House until 2006 when we came to power—

[Some hon. members]

Oh, oh!

[The Acting Speaker, Bruce Stanton]

Order, order. The hon. Parliamentary Secretary to the Minister of Natural Resources has the floor. I am sure if members have other conversations they would like to have they might want to take those back to the lobby.

The hon. parliamentary secretary.

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, I understand the member for Malpeque's frustration. It has probably been a terrible thing to watch what has happened to his party over the years.

However, the Canadian people have rendered their judgment. They have shown great wisdom in what they have done over the years, electorally. The Liberals deserve to sit where they sit right now because of what they have done to Canada over the years and the way they have treated Canadians.

We are happy to be here. We are very grateful for the opportunity from Canadians to be able to serve them. As I was mentioning, in 2006 we came to power as government; in 2008 our minority grew; and in 2011 we finally had the majority government that Canadians wanted to give us, and so we finally got an opportunity to really set Canadians on a defined path to prosperity. That has certainly worked.

We have had some of the toughest times over the last four years that the world has seen in decades, and Canada has been able to weather those times very well.

In fact, when we look at what the World Economic Forum says about Canada, we see it talks about, for example, our banking system being the soundest in the world for the fourth consecutive year, during a downturn. Certainly our banking system has been one of those rocks of stability in our country that has been able to help us carry Canada through this time.

However, Forbes magazine does not just look at the banking system. It also took a look at the world of business in Canada. It said this is the number one place in the world for businesses to come, to grow and to create jobs.

In a downturn, that is a great honour. I think it is a great tribute, obviously, to the government that has been in power. The government has made decisions that set up a climate that makes it possible for businesses to do really well. We know we have one of the strongest positions in the world, in the G7 in particular, and our rock-solid AAA rating has been proved by multiple agencies.

I think one of the things that I have been really excited to see is the ambitious trade agenda we have had as a government, because we sat for a long time with the Liberals running this country. I notice they are deadly silent on this issue, because they did nothing on trade.

Since we have taken over, we have been able to initiate trade agreements around the world, and we are able to see those trade agreements are now beginning to bear fruit. Certainly they are impacting Canada's relationships around the world in a positive way. We have, through them, not only been able to strengthen our economic and security links with the United States, but we are seeking new agreements with Europe, India, and many others, and those agreements are finally starting to bear fruit.

I should note that the Minister of Agriculture and Agri-Food, in particular, has done a great job going around the world. We had trouble with BSE. We were unable to get our markets open. The Liberals could not open those markets. They were incapable of doing that. Our present Minister of Agriculture and Agri-Food has gone around the world and opened Canadian markets for beef after the BSE crisis. The present Minister of International Trade has shown leadership on this file and, finally, we are beginning to see great changes in the trade file.

We know that deficit reduction is critical. For those of us who do not believe we should be funding today's programs off our children's and grandchildren's backs, we are getting back on track to balance the budget over the medium term.

In the economic action plan 2009, we made a commitment that we were going to return to balanced budgets, and we have done that to a great extent. We cut the deficit in half in the last two years, and we continue to move in that direction. We watched as Australia announced it is going to be balancing its budget, and we look forward to being the second developed country that can do that.

We need to do that. My constituents tell me that is an important thing. They want this government to balance the budget and they want us to move ahead with jobs and prosperity that are a result of that.

I should point out that Canadians should not only be thankful—well, they are thankful that the Liberals are no longer in power. However, they also need to be aware of how thankful they should be that the NDP is nowhere near power, as well. I think all we need to do is actually take a look at the NDP's programs that its members promote and we can probably see why it is a good idea that they are not on this side of the House.

This morning in committee, one of our committee members very enthusiastically endorsed once again the carbon tax plan they have. He went on at length about how this should be done sooner, not later; it needs to be done as quickly as possible. As Canadians are now becoming aware, that is a commitment by the NDP to $21 billion in taxation that average Canadians would have to take out of their pockets, which would drive up the price of virtually everything.

However, it is not just a carbon tax. My colleagues across the way think it is hilarious when we mention $21 billion because they think that every taxpayer's money in this country is theirs, and it is not.

I understand why they would think that. We have a quote from the Broadbent Institute report. They think that in order to tie people together, we need to make it compulsory for them to participate. This is the way they would like to do that. The report says:

Taxes are the hinge that links citizens to one another and to the common good.

I think that pretty well sums up the NDP position as much as it can be. I know there is an older definition of socialism, which is:

Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy.

We certainly see those three things in the NDP's taxation policy.

I just want to point out that the Broadbent Institute is straight up about what the NDP would do to Canadians if it got the opportunity. It talks about implementing an inheritance tax. The NDP think that would be a good idea. It would like to put a tax on the inheritance of wealth, which passes on morally unjustifiable class privilege. I am not sure what that is, but I would imagine that means they are going to take money away from people once they die.

The NDP want to have a financial transaction tax, so I suspect the average Canadian would believe that means the NDP wants to tax every financial transaction that takes place in this country. When people are trying to do their business, the NDP will step in, for every single one of those transactions, and gladly tax them.

The NDP says it wants a carbon tax. That is not anything we have not known. It does not want to talk about it. The NDP not only talks about a carbon tax but higher taxes on natural resources. We know the NDP does not want to develop natural resources, but it does not seem to have any understanding about the fact that as taxes are raised on resource development and on corporations, corporations will not invest here.

That is what the NDP seems to want. It does not seem to like corporate investment. We know it does not like trade. The reality is that if the NDP is ever allowed to bring in something such as a carbon tax or higher taxes on natural resources, we can start talking about the Canadian economy declining instead of prospering.

That is not all it said. The NDP said:

—we also need to consider broad-based taxes....

What would that be? I assume it wants to tax a whole lot of other things and wants to do it to pay for more of its social spending. The NDP said it needs to rely on a number of tax bases, so I think we can assume that means new taxes in all sorts of areas because it wants to put as many legs under that taxation stool as it possibly can. It does not matter how much it costs Canadians.

Then the NDP talks about how it needs to have an increase in social spending, which we know is another code word for taxing people even more than in the past.

If we take a look at where the NDP have been in power, what have been the results of that? We can see in B.C. and Ontario that the economies have pretty much collapsed under the NDP rule. However, I think the bigger example would be in my own province of Saskatchewan. The NDP ruled there for far too long, and while it did we saw a complete failure to develop our economy. We ended up with a third of the population of our neighbour when we actually had more of a population than Alberta in 1930. We found our economy probably 30 or 40 years behind our neighbour, just because we had an NDP government that refused, time and time again, to develop the economy.

Canadians cannot afford that. Saskatchewan could not afford it. We are only, in the last five years, beginning to come out of that and are beginning to hold our own and show what we actually have in Saskatchewan.

This economic action plan that we have is good. It is certainly better than anything that we see coming from the other side. This is the kind of action plan that will create jobs. It will ensure prosperity and long-term growth in our economy. Canadians should be excited about it.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I would like to correct the member on one point. We actually love trade on this side of the House, and we are very much looking forward to trading the current government for an NDP government, so just watch out.

I would like to ask the member a question. We have heard repeatedly that this budget is about the economy, providing jobs and helping Canadians. Of course there are so many cuts and so many things are being slashed that the list is too long to go into here.

I do want to focus on one point. In most Canadian cities, even smaller communities, there is a crisis in affordable housing yet there is nothing in this budget that will address the affordable housing crisis in this country. I would like to ask the member why it is that his government has failed so miserably to address this fundamental human right and human need for Canadians?

We have something like two million Canadians who are homeless. Millions of Canadians are in what we call core need housing, which means they are spending much too much money from their income on housing or they cannot find affordable housing. I wonder if the member could address why his government has failed on that point?