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.

Jobs and Growth Act, 2012

[Stephen Woodworth, Conservative, Kitchener Centre, ON]

Mr. Speaker, it is an honour to rise today in support of Bill C-45, the Jobs and Growth Act, 2012, which includes measures to deliver job creation and economic growth.

Everyone in this chamber should realize that Canada's economic health is vital for all Canadians. We have to ensure both immediate and long-term economic growth. In introducing this bill, the government is taking a pragmatic approach to strengthening Canada's economy in the middle of global economic peril.

Opposition members have opposed the jobs and growth bill with procedural arguments, suggesting for example that there has been insufficient debate on the legislation. In reality, this bill has been debated in the House and in committee for many hours. The government invited 11 different committees to study and provide feedback to the House on the bill. The government is committed to timely and open debate on legislation.

The measures in the jobs and growth bill are reasonable in light of the economic challenges that Canada faces as a result of the global economy. I suppose that the procedural arguments proposed by the opposition are necessary only because they cannot find much of anything else to oppose in the very reasonable content of this bill.

Rather than considering the opposition's exaggerations, let us consider some facts. The fact is that in these unsteady economic times, Canada has proven to be a global economic leader. We have consistently been ranked very highly by international standards. Since July 2009 alone, over 820,000 net new jobs have been created in Canada. This is the highest level of job creation in the whole G7.

The World Economic Forum has rated our banking system the world's best. The IMF and the OECD have both projected that Canadian economic growth will be among the strongest in the G7. Canada also has the lowest debt to gross domestic product ratio in the G7. The major credit-rating agencies have affirmed Canada's AAA credit rating.

Such international acclaim is clear demonstration that the government is on the right track for economic success. It is clear that global economic uncertainty continues. Collectively, we in the House are responsible for ensuring that Canada stays on track to ensure economic success for future generations. We must support economic growth and job creation.

This bill prioritizes these two goals with targeted measures to ensure a strong economic outcome for Canada. For example, the hiring credit for small businesses is a targeted measure that will have a huge impact on job creation. In extending the hiring credit for small businesses, this bill aids Canadian small businesses, which drive the Canadian economy and are vital to stability.

A hiring credit for small businesses stimulates job growth because it alleviates the cost of hiring new employees. This creates greater economic opportunities. Last year alone, 534,000 employers took advantage of the up to $1,000 payroll credit, including many small businesses in my riding of Kitchener Centre. The hiring credit for small businesses works for Canadian business and it works for all Canadians. I am proud that our government introduced it and is now moving to extend it.

The Canadian Federation of Independent Business, which represents small businesses across our country, including Kitchener, has praised the hiring credit for small businesses. The CFIB has told us that the credit “makes it easier for them to continue to support Canada's economic recovery by creating jobs”.

This tax credit is a significant incentive for small to medium-size businesses to create new jobs, and its extension will be equally successful. All members of the House should be lining up to support a budget that contains such a measure.

Another example in the jobs and growth bill is the active steps taken to ensure that pension plans for federal public sector employees are fiscally responsible.

The solution to economic instability will not be found in raising taxes. Higher taxes would hinder the Canadian economy and kill jobs. This is not the avenue to pursue. Unfortunately, opposition members who oppose this bill repeatedly propose tax increases rather than job creation and economic growth. Economic prosperity for years to come will only occur through a low tax approach.

This bill not only takes the current economic climate into consideration but it is also forward-thinking. It would provide opportunities for Canadians to invest in the future. For example, in 2007, the government introduced the registered disability savings plan to help Canadians with disabilities and their families save money for long-term financial security. After much consultation, the jobs and growth act would improve upon the existing registered disability savings plan. The changes would allow more Canadians with disabilities to take advantage of the RDSP by allowing qualifying members to open an account for those who do not have a legal representative. There would be another change. As it stands, regardless of the amount withdrawn, a beneficiary is penalized for making a withdrawal from an RDSP account. Canada disability savings grants or Canada disability savings bonds received in the preceding 10 years are simply clawed back. This is unfair. This bill would provide for proportional repayment based on the amount withdrawn, a very sensible solution and one that every member in the House should support.

The bill would ensure the efficient implementation of the policies and measures introduced in the economic action plan passed in the House to support the economic future of all Canadians. Much of the content found in this bill would simply bring technical clarification to existing measures that have already passed in the House. For instance, this bill would deliver the necessary tax framework for pooled registered pension plans, which create an opportunity for all Canadians to participate in a structured pension plan for the first time ever. This is another way that the jobs and growth act would effectively support families and communities to provide for their long-term economic future.

Responsible resource development measures are yet another way in which the bill responds to our very real economic peril. Responsible resource development maximizes the potential of our resource sector, thus creating high-value jobs while enhancing environmental protection. Tighter, more effective regulation of development necessary to a growing population is essential for a growing economy. Environmental regulation should provide a clear framework to ensure measurable environmental outcomes, not requirements that have the effect of obstructing development without improving environmental outcomes. That is one of the goals of this bill.

It has been observed that a wise man will make more opportunities than he finds. During these times of economic uncertainty, it is important to be aggressive in creating initiatives to strengthen the economy. In this jobs and growth act, the government is being proactive about creating economic opportunities. The act's promotion of interprovincial trade, improvements of the legislative framework governing Canada's financial institutions, facilitating cross-border travel, the removal of red tape and the reduction of fees for Canadian grain farmers are just a few more examples of proactive measures that have the potential to really stimulate economic growth.

I very confidently support the jobs and growth act which would deliver job creation and economic growth. The targeted measures included in this act would ensure long-term economic strength to the benefit of my constituents in Kitchener Centre and all Canadians.

I call on all members of the House to join together in supporting these measures, join in leading Canadians safely through the stormy seas of global economic uncertainty that surrounds us.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is encouraging to see the New Democrats now supporting the Liberals in opposition to third reading of Bill C-45. After witnessing them vote more than a thousand times with the Conservative Party through hours and hours of committee work, I really do appreciate their coming on side with us at this stage of the game.

As the member has pointed out, there are other aspects of the bill that we need real answers to. This is just a bad bill. He tried to get unanimous support on one aspect of the bill, making reference to waterways. On my part I could talk about the electronic travel authorization that is being requested.

Does he not believe, as we in the Liberal Party do, that all in all this is just a bad bill and that the whole thing should be broken down into another legislative agenda?

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Mr. Speaker, I would appreciate it if you would warn me one minute before the end of my speech.

What will history say about this government?

In the spring, the government already trashed numerous economic, social and environmental laws, by forcing the passage of Bill C-38, the budget bill, a 400-page brick we voted on for 26 hours. We presented a number of amazing amendments, but were unable to change so much as a comma. This government thinks it has the truth and the right line.

After the challenges resulting from Bill C-38 in the spring, we thought the government would make honourable amends, and this time it would allow for broader debate on the budget implementation bill. Unfortunately, that is not the case. They came back with the same kind of shenanigans: they introduced a bill that would significantly amend 62 statutes. This is again a 400-page bill that they want to have us pass as quickly as possible, and for which they have imposed a gag order. That is perhaps what this government will be remembered for the most in 10, 15 or 20 years. It will be the gag order government. Our colleagues across the way will have participated in this travesty of democracy for months.

We are talking here about a bill that amends 62 statutes. We have looked for the common thread among the statutes in the budget, but there is none. This is a way of forcing the machine to work, of putting us on the ropes, of cutting the work of Parliament down to size, and ultimately making a mockery of it.

If we look at the content, we quickly realize that the measures proposed by the Conservatives do not reflect the values of Canadians. Ironically, Bill C-45, called the Jobs and Growth Act, 2012, contains no effective measures to create jobs or to stimulate economic growth in Canada.

In fact, the Conservatives claim that the 2012 budget is going to create jobs, but the Parliamentary Budget Officer, the best friend of people in Canada who exercise critical thinking, claims, rather, that it will result in the loss of 43,000 jobs, which will have a domino effect and have an impact on 102,000 jobs in Canada. That is the overall effect of this budget implementation bill.

In the meantime, the unemployment rate is going up, and instead of making the rules more flexible to allow working people to receive support when they are unemployed, the rules are unfortunately being toughened.

I should point out that Bill C-45 is a threat because the changes it proposes in relation to the environment show disrespect for Canadians and their awareness of environmental issues.

At a time when the world is becoming more aware of the importance of sustainable development, or in other words, our capacity to meet our needs while allowing future generations to meet theirs, the Conservative government does not understand this logic and stubbornly insists on weakening environmental regulations.

After withdrawing Canada from the Kyoto protocol, making cuts to research programs at Environment Canada and Fisheries and Oceans Canada, and dismantling the round table on the environment and the economy, the Conservatives are continuing down the same path with Bill C-45, which once again weakens the Canadian Environmental Protection Act and guts the Navigable Waters Protection Act.

It is important to note Canada's place when it comes to environmental matters. Recently, Canada was ranked 57th of the 60 countries included in the Climate Change Performance Index. In order to find Canada, hon. members should start at the bottom of the list instead of the top. We have dropped quite far. On the international stage, many countries do not envy us when it comes to the environment.

The Conservatives will boast that they have eliminated two small fossil fuel subsidies in this budget and improved two tax credits for certain types of equipment for green energy production. Proportionately speaking, these two measures are minimal compared to the $1.3 billion in assistance that the Conservative government continues to give to the oil and gas industry each year.

Environmental protection seems to be a nuisance to the Conservatives. We have to wonder whether this is a Conservative government strategy to facilitate co-operation with big business.

We also see that power is becoming more and more concentrated in the Conservative cabinet. We saw it with the reform of the Immigration and Refugee Protection Act reform, and we are seeing it with environmental reforms. We had panels of independent experts. Now, assessments will basically be subject to the minister's approval.

Bill C-45 guts the Navigable Waters Protection Act. The consequences are imminent since thousands of lakes and rivers will no longer be protected. Of the 37 designated Canadian heritage rivers, only 10 will now be protected. I checked the list for the rivers in my area—Rivière du Diable, Rivière Rouge and Rivière du Nord—but none of them are mentioned.

I hope I am going to be able to include them in that list. And I wonder when we will have a chance to put new rivers and new lakes on the list. I would like to preserve the rivers in my riding in their purest possible natural state, because they are an essential part of the beauty of the region that brings tourists there. Beautiful rivers and beautiful lakes: that is what tourists come to see.

The Minister of Transport said the objective of the act was to reduce obstacles to navigation on navigable waterways and added that navigable waterways that do not appear in the new list will be protected by other federal legislation, by the provinces and by cities. Have funds been set aside for the provinces in connection with the role they will have to play, given the additional workload they will have? We are divesting ourselves of our obligation to protect rivers and lakes. In fact, that is a responsibility that is set out in the Canadian Constitution.

I am going to quote Tony Maas, director of the national freshwater program of the World Wildlife Fund. The government is trying to make a distinction between navigation and navigable waters, for legislation to facilitate navigation.

Picking navigation apart from the waters that enable it is very much artificial [and I would say “absurd”]. The two are part of a bigger whole. Their separation is as artificial as thinking you can protect a fish without protecting its habitat....

The government puts everything in little boxes, as if things were no longer connected to one another.

Because I had prepared to make a 20-minute speech, my time is nearly up. Before beginning this last part, I am going to request the unanimous consent of the House to move the following motion:

I move that, notwithstanding any Standing Order or usual practice of the House, Bill C-45, in clause 321, be amended by adding after line 13 on page 291 the following: “The addition of the navigable waters listed below is deemed to be in the public interest and the governor in council shall, by regulation, as soon as is reasonably practicable after the day on which this act receives royal assent, add those navigable waters to the schedule”, and I would like the list to include the Rivière du Nord, the Rivière Rouge, the Rivière du Diable and the Rivière Pashby, all of which are rivers that run through my riding.

I request the unanimous consent of the House to move this motion.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

Mr. Speaker, I thank my colleague for his question.

Every year, the Minister of Finance receives about 3,000 submissions and requests regarding the budget from people across the country. This demand was not included in the budget.

As for investment in infrastructure, in Bill C-45, the budget implementation bill, there are huge investments in infrastructure. It is not a strategy or document left on a desk somewhere; these are specific responses to Canadian cities to ensure that they have the infrastructure needed to support their economy.

Those are the measures included in the budget implementation bill.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

Mr. Speaker, today I am pleased to add my remarks to those of my colleague from Kitchener—Conestoga. I know he is doing an excellent job for the people in his riding. He represents them very well, and that is why he has been re-elected several times.

I would like to begin by giving some context for Bill C-45, because it requires an awareness of the economic situation in Canada and throughout the world. Despite worldwide economic upheaval, Canada has managed to create 820,000 new jobs since July 2009. This really is a huge success. The Government of Canada made decisions that ensure businesses will continue to hire employees. In addition, 90% of these jobs are permanent, full-time jobs and 75% of them are in the private sector.

Since 2008, the World Economic Forum has ranked Canada's banking system the healthiest in the world—that is five years in a row. Moreover, Canada has a triple-A credit rating, while other countries' ratings are being downgraded. This is a great success, because it reduces the cost of borrowing and keeps our interest payments down. This instills confidence and shows that Canada really is a good country in which to invest.

The 2012 economic action plan builds on these successes in several ways. First, it intensifies Canada’s pursuit of new and deeper international trade and investment relationships, including updating the government’s global commerce strategy.

Second, it implements the action plan on perimeter security and economic competitiveness and the action plan on regulatory co-operation, which will facilitate trade and investment flows with the United States, our most important trading partner.

Finally, it provides support to Canadian businesses through tariff and tax measures, along with extended domestic financing by Export Development Canada. In other words, we are trying to broaden and diversify our international trade.

For the great trading city of Toronto, my home town, international trade agreements negotiated from a position of strength enhance job opportunities, whether to manufacturing, the arts or financial services.

I will highlight some important elements of Bill C-45, which follow through on the promises of economic action plan 2012 introduced in March of this year.

One key element is the responsible development of our natural resources. We are not exactly a mining centre in Toronto in the sense of taking something out of the ground. However, there are many jobs in the city of Toronto created by the mining sector. Of the world's mining companies, 70% are based in Canada, and 50% of the world's mining exploration and development capital is raised on Canadian stock exchanges. There are roughly 800,000 people in Canada working directly in natural resources and another 800,000 indirectly supporting the mining, minerals and energy sectors. This affects Ontario manufacturing and capital markets.

I would add about 10% of employment in places like the oil sands is filled by first nations people. Over 5% of employment in the Canadian mining sector is filled by first nations people. These are important job opportunities for first nations people across the country.

It also supports small business via measures such as the hiring credit for small business, which is important in the riding of Etobicoke—Lakeshore. It allocates taxpayer money more efficiently, which means that our taxes can be reduced, whether income, corporate or consumption taxes, and it helps us return to a balanced budget in the medium term.

I will talk to the hiring credit for small business because it is so important for the business people in Etobicoke—Lakeshore, throughout Toronto and across the country. It is a successful measure that has benefited more than 534,000 employers in the last year. It reduces small business payments into the EI fund by about $205 million. Therefore, it is a significant measure and a shot in the arm for small businesses to hire people.

The measures in Bill C-45 protect us from global economic threats, such as the debt crisis in Europe and the fiscal cliff in the United States.

As for Europe, we are encouraged by the measures being taken by European leaders. Several European countries have taken the necessary austerity measures after years of excessive spending. We are also seeing the implementation of a legislative framework providing for a single supervisory mechanism for European banks with the support of the European Central Bank.

In the United States, we hope that the U.S. Congress will find a solution to the country's tax problems. The U.S. is still our biggest customer. It must absolutely purchase products from Canadian companies.

We hope the United States gets back on its feet financially and fiscally because it is very important to us.

Bill C-45 has one primary goal, and that is to create an economic environment that encourages investment and creates jobs. This means removing barriers to investment and growth, such as the useless, non value-added bureaucracy and red tape that we so often see in government. It also means keeping the government's finances in order by streamlining government spending so that eventually we can return to balanced budgets.

I mention that because it is important to highlight what we are not doing. We are not cutting transfers to provinces, unlike the previous Liberal government, where it balanced the budgets largely on the backs of the provinces by cutting transfers. In fact, we are increasing funding for the Canada health transfer, for example, raising it by $6 billion a year. We are looking at $29 billion this year and increasing it until it reaches $38 billion by 2017-18. I should mention that in Ontario, health care spending is only increasing by 3% a year, even though the transfer is increasing by 6% a year. Therefore, it appears the province of Ontario is pocketing the additional 3%.

The Canada social transfer will increase to $12 billion this year and the universal child care benefit will also increase to $13 billion this year. We are not cutting transfers.

I will mention one thing we are looking to do and that is to streamline public sector pensions. Contributors will pay 50% of the current service cost of the pension plan, which is fair to Canadian taxpayers because that is what those in the private sector are generally paying when it comes to their pension plans, whether it is a defined contribution pension plan or a defined benefit pension plan. For contributors who join the plan after January 1, 2013, the age of eligibility to receive a full pension will be raised from 60 to 65. Again, this aligns itself with what is out there in the real world and it ensures that these pension plans are sustainable for the long-term. We have taken similar measures on the MP pension plan, which had some imbalances that needed to be adjusted.

One of my colleagues mentioned R and D investments. That is very important for the city of Toronto, for the GTA, for the province of Ontario and across the country. A lot has been mentioned about the scientific research and experimental development, or SR&ED, tax incentive program. That is the single largest federal program when it comes to R and D. It provided about $3.6 billion in tax assistance in 2011.

However, we were recognizing in our government that spending in R and D that SR&ED was not the be all and end all. We needed to make improvements to our scientific research and development. Therefore, we chartered an expert panel, the Jenkins panel. It came with a series of recommendations. We have been following through on those recommendations in the budget and in the budget implementation act.

I want to highlight some of those changes. There has been some streamlining of SR&ED, removing some of the administration and complexity. In its place we are putting in some new measures. We are looking to expand the industrial research assistance program, or IRAP, by $200 million over two years. That is a very important measure that benefits a lot of innovative companies and it is not based on a tax credit; it is an actual injection of capital into their R and D efforts.

We are also enhancing some specific industry R and D programs with $470 million over four years to support innovation in automotive, aerospace, forestry and clean technology. It has been very important, looking at more direct investment, as opposed to just tax credits.

Another program I was very involved in, as part of my government operations committee, was when we reviewed the Canadian innovation commercialization program. It was a pilot program for two years, with $40 million over two years, that looked at helping companies get to their first level of production with new products. In budget 2012 and contained in Bill C-45, we are making that program permanent. It has been so successful. That will be a real shot in the arm.

The last thing I will mention when it comes to R and D is the creation of a venture capital fund for the BDC of about $400 million.

With all these measures in Bill C-45, I really encourage the opposition to join with us in voting this legislation forward. These are important measures for the Government of Canada and for the people of Canada. They will move us forward into the next several years.

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

Mr. Speaker, I think I am going to start with the second question first.

This question has been raised many times throughout the day today. I think there is a lack of understanding of what Bill C-45 would do in totality. It is easy to focus on one little area and continue to ask questions about that area.

What my colleague does not understand is that our government has made some significant changes to how small businesses can operate their business. For example, we have removed many bureaucratic barriers for attracting foreign investment into small business. We are also adopting new programs, like the digital technology adoption projects. We are cutting red tape for small business.

Finally, on the last point of encouraging partnerships with colleges, what we see now is many of our colleges are partnering with industry. Industry brings an issue to them to help them solve it, so the engineers are working in partnership with industry. In this way, we have increased collaboration and we are actually addressing the problems that industry has instead of doing some theoretical studies about what a particular need might be.

These are all positive movements going forward.

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

Mr. Speaker, I rise in support of Bill C-45, jobs and growth act, 2012, because the measures in this bill are very important to my constituents in the riding of Kitchener—Conestoga.

Our economic action plan was built on a long-term plan called Advantage Canada. This plan has five major themes, and even through these difficult times we have advanced all five of these themes.

First is the tax advantage. Business taxes have been cut. This makes a huge difference for businesses in my riding who want to expand and provide opportunities for more jobs, which in turn makes a big difference for families in my riding. Since the Conservative government came to power in 2006, personal taxes are roughly $3,100 less for the average Canadian family of four. Tax freedom day, which in 2005 was June 26, has now been moved back to June 11. Again, these are crucial movements for families who are trying to raise young children.

Second is the fiscal advantage. We are on track to eliminate our deficit in the medium term.

Third is the entrepreneurial advantage. Canada's entrepreneurial advantage will reduce unnecessary regulation and red tape and lower taxes to unlock business investment. This idea of having one project and one review is so important. For too long, we have had all kinds of duplication on environmental assessments that has slowed down the process and added increased cost to businesses that are trying to expand. Also, the adoption of the one-for-one commitment, to reduce a regulation every time a new regulation is added, is an important aspect of cutting red tape for business.

Fourth is the knowledge advantage. Canada's knowledge advantage will create the best educated, most skilled and most flexible workforce in the world. The knowledge infrastructure program, or KIP, has been amazingly important in my riding of Kitchener—Conestoga. Conestoga College alone has benefited from investment from this program, which has allowed it to expand its engineering, health science and food processing faculties to increase its ability to add value-added products for our farming community.

Fifth, and finally, is the infrastructure advantage. Canada's infrastructure advantage will create modern world-class infrastructure to ensure the seamless flow of people, goods and services across our roads and bridges, through our ports and gateways and by way of our public transit. Investment in the rapid transit system in the Waterloo region and the Highway 8 bridge expansion and widening are increasing our ability to move goods and people through our region, which is also an amazing advantage for our businesses.

All five of these pillars have placed Canada in an enviable position relative to our global partners. However, the global scene is very uncertain. We are an exporting nation, so it is clear that our recovery cannot be complete until the rest of the world sorts out its fiscal and budgetary issues. Our manufacturers and farmers cannot sell their products until the rest of the world starts buying again. Therefore, while we are well positioned to take advantage of the eventual recovery, we cannot ourselves make the recovery happen.

While we are an island of stability in Canada, we do sit in a sea of uncertainty. Our role, as the government, is to ensure that the rising tides of global instability do not drown our relative prosperity. The global economic environment still poses great risks to governments, businesses, individuals and families.

I would now like to focus on a few of the issues in my region of Waterloo. My home in the Waterloo region is known for its entrepreneurial spirit. It is known for citizens who embrace risk, recognizing that risk is the door to opportunity. From the farmers whose livelihood depends on the whims of weather, to the high-tech entrepreneurs who risk their savings and sweat equity for the belief in their vision, Waterloo region's success in these troubled times is driven by the willingness of its citizens to believe in their ability to succeed and move ahead with confidence, even in the face of very great risk.

I would also like to summarize a few of Waterloo region's investments, by way of the economic action plan, in education and community and capacity building. First of all, on education, Conestoga College expanded its schools of engineering and health sciences and also instituted a brand new institute for food processing technology. The food processing technology faculty is the first of its kind to serve Ontario's second largest industry. We are known for our primary agricultural products, but I think it is important that we also recognize the importance of providing value-added products through the food processing industry. Also, there is the University of Waterloo and its Quantum-Nano Centre, new buildings with 21st century facilities for environmental studies and the Balsillie School of International Affairs.

As it relates to economic action plan investments in our communities, we have invested in new or renovated recreational facilities in Wilmot, Wellesley, St. Agatha, Breslau, New Dundee, and Kitchener and the McLennan Park and Sportsworld arena.

We have invested in social housing units across the Waterloo region, many of them being renovated and upgraded. Our airport, a crucial engine of economic growth, has made numerous improvements to enhance safety and capacity, thanks to our government's emphasis on regional airports. Our airport is a stellar example of federal investments that improve safety, efficiency and capacity, and has led to increased trade, investment and employment. We have seen our worst bridges repaired, our worst roads resurfaced and our waste water systems renewed.

As it relates to capacity building in our economic action plan funding, Canada's economic action plan founded FedDev Ontario so that southern Ontario is no longer taken for granted as the only region in Canada without an economic development agency. FedDev Ontario has built programs designed to develop the capacity of southern Ontario's unique industries. These loans have allowed businesses across my riding, from high-tech companies like Miovision, to farm gate businesses like Conestoga Meat Packers, to build the capacity they need to capture new global markets.

This is incredibly important. Instead of seeing viable businesses fail, as other countries have, because of a temporary downturn, Waterloo region's businesses are prepared to capture the opportunities that will emerge when the rest of the world adopts this government's approach of stable banks, prudent budgeting and low taxation.

All of these investments have made our community a better place to live and to develop talent. We are a more prosperous community, a better builder of small and medium size businesses and a better place to raise a family. Going forward, the jobs and growth act promises to further enhance the lives of those I am privileged to represent. The bill's passage will conclude the implementation of Canada's economic action plan 2012 and contains measures that are essential to our continued prosperity.

I would like to now focus on some of the opportunities for business and families and individuals that Bill C-45 contains as it relates to my area. First of all, there is the bridge to Detroit. When I first ran for office, in 2005, Waterloo region's business leaders told me that increasing capacity at the border crossings at Detroit was a high priority. There is over $130 billion of trade that crosses between Windsor and Detroit. That is almost 30% of all Canada-U.S. trade.

Windsor-Detroit sees more than 8,000 trucks and 68,000 travellers cross that border every day. Over the next 30 years, all forecasts say that this traffic will increase. Truck traffic is expected to triple, while other vehicle traffic will double. The solution is found in Bill C-45. It will enable the government to fund the construction of the solution to these problems. The new Detroit River international crossing would reduce congestion on both sides of the border, support the creation of jobs along the Windsor-Quebec City corridor, particularly in my riding of Kitchener—Conestoga, increase the competitiveness of the entire integrated North American manufacturing sector, and provide thousands of construction jobs in Windsor and Detroit, two communities that have been hardest hit by the uncertainty of global markets.

Another important initiative in Bill C-45 is the small business EI premium refund. I have referenced the needs of small businesses several times already. In high tech alone, our area enjoys one new high-tech startup business every day. Small and medium size businesses will provide the bulk of jobs created going forward. It makes sense to target hiring incentives to them. We need to provide incentives for them to hire now rather than later, when the economy has already improved.

The pooled registered pension plans are important for small and medium size enterprises because they have trouble attracting and retaining critical talent. One reason for this is that large firms are able to offer much more attractive pension plans, which smaller companies simply cannot afford to administer. These PRPPs will allow small business owners to provide pensions without the significant administrative burdens and responsibilities associated with traditional pension plans.

There are so many good initiatives in the bill, but I will have time to highlight them all. I would urge my colleagues, especially on the other side of the House, to support this bill. It will make a big difference for families in their ridings.

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, omnibus bills are anti-democratic and draconian.

I will detail where we have had cuts to the environment. We have had announced cuts of 700 positions to Environment Canada, cuts of another 200 positions to Environment Canada, the gutting of environmental legislation that has protected the health and safety of Canadians for the last 50 years, and the weakening of species at risk laws and water laws. We will go from protecting 32,000 lakes down to 97 lakes.

I will talk more about Bill C-45. West Coast Environmental Law said:

giving industry the option to request that their existing commitments to protect fish habitat be amended or cancelled, or that they be let off the hook for promised compensation for lost or damaged habitat;

eliminating the Hazardous Materials Information Review Commission; and,

needlessly tinkering with the Fisheries Act and the Canadian Environmental Assessment Act 2012....

We heard from a former Conservative fisheries minister earlier on Bill C-38 who said, “They are totally watering down and emasculating the Fisheries Act. They are making a Swiss cheese of it”. At the subcommittee, he said, “The bottom line is to take your time and do it right. To bundle all this into a budget bill, with all its other facets, is not becoming of a Conservative government, period”.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I am very pleased to ask my colleague a question.

The government is constantly telling us that everything in the budget implementation bill was mentioned in the budget that was tabled last March. However, we are well aware that a number of things that now appear in Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures—because there was also Bill C-38, An Act to implement certain provisions of the budget—were not mentioned in the budget tabled in this House last March by the Minister of Finance.

The Conservatives are therefore tabling two 400-page bills proposing measures that were not even mentioned in their budget last March. Does my colleague have any comments to make about that?

The House resumed consideration of Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, there have been consultations among the parties and if you seek it I believe you would find unanimous consent for the following motion. I move:

That, notwithstanding any Standing Order or usual practice of the House, if the House has not disposed of the report stage of Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, by 2 p.m. on Tuesday, December 4, the Speaker shall suspend the proceedings to allow members to make statements pursuant to Standing Order 31; followed by oral question period no later than 2:15 p.m.; and at 3 p.m. the House shall resume the proceedings on Bill C-45.

Jobs and Growth Act, 2012

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, I rise today to speak strongly against the government's omnibus budget bills and their repeated affronts to democracy, and, specifically, to the gutting of environment legislation in Bill C-45.

Previously, through economic action plan 2012 and Bill C-38, the government severely cut the budget to Environment Canada, gutted environmental legislation and cancelled the National Round Table on the Environment and the Economy. The Conservatives have also silenced dissent from environmental non-governmental organizations and have continued to muzzle government scientists. In so doing, they affect our economy and environment today and in the future.

Through Bill C-45, our world-renowned natural heritage is being further imperilled by a government that fails to understand that water is the foundation of life and that it is essential for socio-economic systems and healthy ecosystems.

The World Bank states that, “water is at the centre of economic and social development”, and is elemental across economic sectors including agriculture, energy and industry. Good management of water resources is fundamental to moving to a green economy.

In Canada, we depend on water for drinking, fishing, swimming. This precious resource further supports farming, recreation, tourism and economic growth.

Unfortunately, water management is becoming more challenging with climate change. Bob Sandford, lead author of Simon Fraser University's adaptation to climate change team, warned in 2011 that:

The days when Canadians take an endless abundance of fresh water for granted are numbered...Increasing average temperatures, climate change impacts on weather patterns and extensive changes in land use are seriously affecting the way water moves through the hydrological cycle in many parts of Canada, which is seriously impacting water quantity and quality.

As a result, the team called for a dramatic reform of Canada's water governance structures and made many recommendations: the recognition that water is a human right integral to the health and security of Canadians; the development of a new Canadian water ethic; the creation of a national water commission to advance policy reform; an improved understanding of the importance of water to Canadians' way of life; national water conservation guidelines and improved monitoring; and coordinated long-term national strategies for sustainably managing water in the face of climate change.

In stark contrast to those recommendations, the government would strip federal oversight from thousands of Canadian waterways through its latest anti-democratic and draconian omnibus legislation, Bill C-45. Specifically, the government would abolish the Navigable Waters Protection Act, which currently requires federal approval for development on the thousands of bodies of water across the country that are large enough to float a canoe.

The Navigable Waters Protection Act of 1882, considered Canada's first environmental law, would be changed to the navigation protection act. The focus of the law would no longer be to protect navigable waters but, rather, to protect navigation.

Canada has a huge number of lakes. The exact number is unknown. However, of the roughly 32,000 lakes previously protected under the old act, just 97 lakes would now be protected under the new act. Sixty-two rivers and three oceans would also be protected under the new act. Construction of bridges, dams and other projects would be permitted on most waterways without prior approval under the new act.

Needless to say, the original budget said nothing about restricting federal controls over lakes and rivers.

Jessica Clogg, executive director and senior counsel, West Coast Environmental Law, stated:

The Bill C-45...is a wolf in sheep’s clothing that will have major implications for the environment and human health. So much for the federal government’s promise that the bill would focus on budget implementation and contain no surprises.

The rewritten law would strip environmental protection once provided by the mandatory federal review. Ecojustice's executive director, Devon Page, said:

Simply put, lakes, rivers and streams often stand in the path of large industrial development, particularly pipelines. This bill, combined with last spring’s changes, hands oil, gas and other natural resource extraction industries a free pass to degrade Canada’s rich natural legacy.

Astoundingly, 90% of the lakes that would still be designated as protected are in Conservative ridings, 20% are in NDP ridings and only 6% are in Liberal ridings. Unbelievably, pipelines would be directly exempted from this law. Under the new act, pipeline impacts on Canada's waterways would no longer be considered in environmental assessments.

Instead of killing the old Navigable Waters Protection Act, the government should reverse the changes that would strip previous environmental protection of lakes, work to protect Canada's coastline, establish a network of marine protected areas in Canada's waters, encourage the sustainable use of coastal and marine resources, prioritize clean water, restore our freshwater ecosystems, clean up contaminated sediment and protect and restore essential habitat.

The government must stop repeatedly abusing Parliament by ramming through massive omnibus bills and turning the legislative process into a farce.

Two years ago, the government introduced an 880-page omnibus bill, representing half the entire workload of Parliament from the previous year. This past spring, the government introduced Bill C-38, a 425-page omnibus budget implementation bill that made sweeping changes to employment insurance, immigration and old age security. An astonishing 150 pages were devoted to destroying 50 years of environmental oversight. None of these changes were in the Conservative platform. This time, Bill C-45 is a 443-page omnibus bill that would alter some 60 pieces of legislation, including the Canada Labour Code, the Fisheries Act, the Indian Act and the Navigable Waters Protection Act.

Canadians are tiring of the government's omnibus bills. Last spring there were demonstrations across the country to protest the omnibus budget bill, Bill C-38. Five hundred organizations joined the BlackOutSpeakOut campaign to stand up for democracy and the environment. Three thousand two hundred pages of complaints flooded the office of the finance minister and there was extensive international criticism.

In 1994, the MP for Calgary Southwest, our current Prime Minister, criticized omnibus legislation suggesting that the subject matter of such bills was so diverse that a single vote on the content would put members in conflict with their own principles. He said, “Dividing the bill into several components would allow members to represent the views of their constituents on each of the different components in the bill.”

The Conservative government's action reek of hypocrisy. The Prime Minister is now using the very tactics he once denounced. Bill C-45 hides large changes to environmental laws, subverts democracy and weakens the protection of ecosystems.

The government's record on the environment is appalling, as recognized repeatedly by its bottom of the barrel environment performances. The 2008 Climate Change Performance Index ranked Canada 56th out of 57 countries in terms of tackling emissions. In 2009, the Conference Board of Canada ranked Canada 15th out of 17 wealthy industrialized nations on environmental performance. In 2010, Simon Fraser University ranked Canada 24th out of 25 countries. This week we have been ranked 58th out of 61 countries on climate policy.

Under successive Conservative governments, the economy has been repeatedly pitted against the environment. Laws have been weakened and repealed to fast-track development with the environment and the health and safety of Canadians being put at risk. When did the debate change from protecting the environment in order to safeguard human health and well-being to gutting environmental protection in order to streamline expanding growth? Is it not time we made human health, particularly for our most vulnerable, our children, a consideration in the environmental debate?

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I listened to my colleague carefully. Unfortunately, the Conservatives are once again presenting us with a monstrosity of a bill, like the one they presented last spring, Bill C-38, in which they attacked old age security, employment insurance and health transfers to the provinces.

Once again, Bill C-45 shows that the Conservatives have not learned their lesson; they still want to keep Canadians in the dark and they want to prevent the members here in the House from doing the job they were elected by Canadians to do.

I would like my colleague to expand on this question: why is the government acting this way?

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Mr. Speaker, I am proud to be on this side of the House as part of the Conservative team and it is good to be able to talk today on Bill C-45, the jobs and growth act, 2012.

While I am on feet, I did want to salute the Parliamentary Spouses Association, which today held a fundraiser that raised $10,000 for the Tim Horton Children's Foundation. I would like to salute everyone who had a part in that today.

Bill C-45 is an act to implement certain provisions of the budget. It is the jobs and growth act, and our plan is working. We have seen 820,000 net new jobs created since the recession started in July 2009. There are more people working today than before the recession began, and that is because of the prudent leadership of our Prime Minister, Minister of Finance and our strong plan to ensure that our economy remains strong.

We are among the leaders in economic growth in the industrial world and our debt to GDP ratio is among the lowest in the world. Truly, Canada is the envy of the world right now because of our financial position.

We have had some independent accolades. Members do not have to take my word for it, although I would appreciate it if they would. Canada has had the best banking system in the world for five years in a row, according to the World Economic Forum. As my colleague before me mentioned, Forbes magazine has indicated that Canada is the best country in the world in which to set up a business.

However, we know that the economic recovery is fragile. We cannot take it for granted. We have seen sluggish growth the world over, including Europe, and there are concerns about the fiscal cliff in the United States. There is uncertainty everywhere around the world, in Greece, Italy and Spain. In many countries, the economic future does not look bright. We have to be concerned about that as Canadians. Even though we have had a good run of economic growth, we cannot assume that it will continue forever. That is why we need strong leadership and the strong measures included in Bill C-45.

We must remain vigilant if we are to maintain the significant economic advantage that we have built up over the last number of years. That means continuing to promote things like responsible resource development. We need to continue to promote things like our oils sands and our natural resource sector, provided that we do so in a way that is both economically beneficial and environmentally responsible, and that is what we have committed to doing.

We need to continue to maintain a low-tax plan for jobs and growth. I heard a previous questioner indicate that perhaps we should be raising taxes in order to keep our economy strong. However, on the Conservative side of the House, we disagree. We believe that we need our low-tax plan for jobs and growth. Raising taxes would not lead to growth but in fact hinder growth.

We need to continue to promote trade of our Canadian goods and services, not just to our traditional trading partners but also with the developing world. We need to look to countries that need the things we produce and we need to continue to promote our interests in those countries. That is why I am so pleased that the Minister of International Trade is away from Canada a lot because he is working on our behalf to secure new markets for our goods and services. I want to thank him for that. Indeed, we have learned that we cannot afford to rely solely on the United States because it has economic troubles of its own. We cannot have all of our eggs in that basket. Therefore, we need to continue to promote trade.

These are the kinds of things, in my view, that we need to continue to maintain for Canada's economic advantage. However, there are a few specific items in Bill C-45 that I do want to address, such as improvements to the first nations land management system.

My riding is home to 33 first nation bands. Many of them are under the first nations land management regime. Our government is committed to working with first nations to create conditions that will accelerate economic development opportunities.

Giving interested first nations greater control over their reserve lands and resources would bring a brighter and more prosperous future for them. Our government has already taken steps to enable interested first nations to assume greater control of their own land and resources under the First Nations Land Management Act. I am encouraged to see so many first nations in my riding under that regime.

Under the first nations land management framework, first nations can opt out of the 34 land related sections of the Indian Act and establish their own regimes to govern their lands, resources and environment. Thanks to the actions of our government, in January 2012, there were 18 new entrants that came under the framework. Today, there are 56 first nations that are operating and developing their own land codes. We want to expedite the process to allow more first nations to participate.

On March 15, 2012, the National Aboriginal Economic Development Board voiced its concern with the current process. It said:

First nations do not have an ability to move swiftly in developing their lands as a result of the restrictions that arise under the Indian Act and the red tape that comes with them.

The Auditor General has also identified the designation and leasing process to be a cause of unnecessarily lengthy approval times.

Bill C-45 proposes changes to the First Nations Land Management Act that would reduce voting thresholds to a simple majority vote, eliminating the need to hold repeated votes over a one or two-year period. What sometimes happens now is that if a majority of members of a first nation do not choose to cast their ballot, the First Nations Land Management Act requires them to hold a second vote, which takes time and resources and unnecessarily slows the process. One can imagine if we applied the same rule to a municipality that said it were electing a council and that if over 50% of the people did not bother to show up to vote, that process was not good enough. We think that process needs to be changed so there is one vote with a simple majority allowing first nations to control their own lands.

The second change would eliminate the need for an approval by order in council and allow the Minister of Aboriginal Affairs and Northern Development to authorize land designation. This would make the system more efficient and allow first nations more control, thereby reducing approval times for first nations land management by several months. The streamlining of land related approval processes would encourage economic development on first nations land and create jobs, growth and long-term prosperity there as well.

I also want to talk about something that affects small businesses in my riding. The majority of businesses in my riding are certainly small and medium-size enterprises. Just as they are across the country, they are the major engine of job creation in my riding. Budget 2011 contained a hiring credit for small businesses of up to $1,000. It provided relief to small businesses by helping to defray the cost of new hires. Bill C-45 would extend the credit to an employer's increase on its 2012 EI premiums over those paid in 2011. It has the potential to help over 536,000 employers whose total EI premiums were below $10,000 in 2011. This would reduce payroll costs by $205 million and allow small and medium-size enterprises to continue to hire more folks and to keep their costs in check so they can continue to drive our economy forward.

The Canadian Federation of Independent Business said of the credit:

It is a popular measure among all SMEs but is particularly important among growing firms as it helps them strengthen business performance.

I met with some constituents who had concerns about pipelines in my riding. They asked about credits for oil and gas companies and why we were not doing more to promote green energy. I encouraged them to read Bill C-45, which is rationalizing and phasing out over the medium term inefficient fossil fuel subsidies. We are also promoting the use of green technology through the accelerated tax credit program there.

I want to sum up by saying Bill C-45 continues our government's plan for jobs and growth. The plan is working. The plan is having real results for Canadians. I encourage all members of the House to support it.

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I am pleased to stand today on behalf of my constituents in Richmond Hill to speak to the jobs and growth act, 2012, which would implement key provisions in our economic action plan 2012 tabled in March of this year.

Measures in Bill C-45 would continue to grow Canada's economy, fuel job creation and secure our long-term prosperity. I am also pleased to say how truly honoured I am to serve the good residents of Richmond Hill. They are hard-working, dedicated to their families and communities and committed to improving the lives of those less fortunate than themselves.

Richmond Hill is also a community of entrepreneurs. In fact, nearly 85% of all businesses in my riding employ fewer than 20 people. Therefore, any measure which helps small business is very important to them. That is why I strongly support the measures in Bill C-45 and economic action plan 2012.

I would also like to take a minute at this point to reflect on the economic action plan 2012. As members know, it was tabled eight months ago and has received the most debate of any budget in recent history. It is a continuation of our long-term vision, first set out in 2006.

Fortunately, we had many fundamentals of that plan in place, like paying down the debt, before the global economic recession struck. Also fortunately, because of the foresight and the leadership of the Prime Minister and the Minister of Finance, we have successfully weathered that storm.

Since July 2009, employment has increased by over 820,000 net new jobs. That is more than 390,000 jobs above the pre-recession high, which is by far the strongest growth seen among G7 countries through the recovery. Moreover, the private sector has been the primary driver of new job creation and 90% of all new jobs are full-time positions, with more than two-thirds of those in high wage industries.

Real GDP is also significantly above pre-recession levels, which is again the best performance by far in the G7. In short, Canada has come through the global economic storm well and the rest of the world has noticed.

For example, both the IMF and the OECD expect Canada to be among the strongest growing economies in the G7 over the next year and for the fifth year in a row, the World Economic Forum has 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 noted credit rating agencies, Moody's, Fitch, and Standard and Poor's, have reaffirmed their top ratings for Canada and it is expected Canada will maintain its triple-A rating in the year ahead.

Looking at this year's budget and its enabling legislation, Bill C-45, we can be confident that the measures it contains will continue our recovery and promote job creation and economic growth for all Canadians. It is worth noting that the commitment to manage public finances in a responsible manner has been a key element of our government's comprehensive long-term agenda.

We have done so in order to foster strong sustainable long-term economic growth and create the high-quality value-added jobs of tomorrow. In addition to paying down the debt prior to the global recession, we have followed through on this agenda by implementing broad based tax reductions and investing in knowledge and infrastructure.

Economic action plan 2012 further advances this agenda by announcing a set of measures to improve conditions for business investment, encourage responsible resource development, promote innovation to support research and development and to facilitate greater participation in the labour force by under-represented groups.

These are all goals that my residents in Richmond Hill support. The jobs and growth act, 2012 moves ahead with many important steps to build a strong economy and create jobs.

The bill would support families and communities by improving the registered disability savings plan and would help Canadians save for retirement by implementing the tax framework for pooled registered pension plans. It would close tax loopholes and take landmark action to ensure that pension plans for federal public sector employees would be sustainable and fair compared to those offered in the private sector.

I would like to highlight one of the most important enabling legislative items to my riding and that is with respect to pooled registered pension plans.

The reality is that most entrepreneurs and small businesses in Richmond Hill and elsewhere simply do not have pension plans. Pooled registered pension plans are an important step toward providing an innovative, new, low-cost private pension option to millions of Canadians currently without access to a workplace pension plan. This includes not just employees but employers and the self-employed.

The House may recall in December 2010 there was a unanimous agreement at the meeting of federal and provincial finance ministers to pursue a framework for PRPPs as an effective and appropriate way to help bridge existing gaps in the retirement system. This new landmark program that will help Canadians save for their retirement is a result of federal and provincial governments working together to help ensure the long-term strength of Canada's retirement system.

Another tremendous aspect of Bill C-45 is the action it proposes to help ensure the sustainability of public sector pensions. Unlike previous governments that were content to ignore questions of long-term affordability, we are taking the fiscally responsible position of putting the long-term state of Canada's finances first, even introducing landmark reforms for members of Parliament and senators' pensions. Next to jobs and the economy, this has been one of the most often mentioned issues in my riding. We are taking the necessary steps to make public sector pension plans sustainable, responsible and fair.

We are doing this in two important ways. First, we are moving the public sector pension plan to a fifty-fifty contribution arrangement, finally making public sector employee contributions equal to what the government contributes. Second, for employees who join the federal public service starting next year, the normal age of retirement will be raised from 60 to 65. These two important changes will go a long way to promoting the long-term sustainability of public sector pension plans, while ensuring they are fair to Canadian taxpayers.

Extending the hiring credit for small business is another important and positive step for my riding of Richmond Hill. By offsetting some of the EI premium increases when businesses grow their payroll, this measure has been very effective in helping small businesses to maintain or strengthen their business performance. I am glad to see that this measure is being extended.

I would also like to mention how important it is to cut red tape for small businesses. Over the years the growth of compliance items has become absolutely enormous. The red tape burden has been identified through our nationwide business consultations as a major impediment to job creation. That is why our government has taken steps to reduce unnecessary and duplicate compliance items so entrepreneurs can focus on what they do best, which is growing their business and creating jobs.

To summarize, the jobs and growth act, 2012 would continue our government's long-term and focused plan for low taxes, job creation and economic growth. This is what my residents in Richmond Hill have asked for and this is what our government intends to deliver.

I urge all members of the House to vote in favour of this budget so we can keep Canada's economy strong and keep Canadians working.