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.

Business of the House

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, I would like to seek unanimous consent to move the following motion: That, notwithstanding any Standing Order or usual practice of the House, clauses 179 to 184 of schedule I, related to the construction of a bridge spanning the Detroit River between Windsor and Detroit, be removed from C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, and do compose Bill C-47; that Bill C-47 be entitled “an act respecting a bridge spanning the Detroit River between Windsor and Detroit and other works”; 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 Transport, Infrastructure and Communities; 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 the parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing this because the new bridge between Windsor and Detroit has been a long process in evolution and included new legislation that was passed under the International Bridges and Tunnels Act. That process has been defined and developed, and we want to make sure that it is consistent.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I would like to seek unanimous consent to move the following motion: That, notwithstanding any Standing Order or usual practice of the House, clauses 206 to 209, related to the changes to the Indian Act, 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 do compose Bill C-47; that Bill C-47 be entitled “An Act to amend the Indian Act”; 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 Aboriginal Affairs and Northern Development; 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 the parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing this motion in order to conduct a thorough review of the potential impact of this legislation on first nations across the country.

Oral Questions

[Malcolm Allen, NDP, Welland, ON]

Mr. Speaker, I would like to seek unanimous consent to move the following motion: that notwithstanding any standing order or usual practice of the House, clauses 351 to 410 related to changes to the Canada Grain Act 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 do compose Bill C-47; that Bill C-47 be entitled an act to amend the Canada Grain Act; that Bill C-47 be deemed read a first time and be printed; that the order for second reading of said bill provide for the referral to the Standing Committee on Agriculture and Agri-Food; 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.

I am proposing this particular motion so that we can not only study an act to change the Grain Act but we will vote on it as a separate entity, unlike what the government did with the Canadian Wheat Board Act, where it denied farmers the ability to vote on whether they wished to keep it or not. We would indeed be then voting on behalf of farmers on the Grain Act and the Grain Act alone, so they would know what we were doing, who opposed them and who actually stood for them.

Business of the House

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

Mr. Speaker, I did want to be in accord with the official opposition and NDP House leader. However, my disappointment was that before we started debate on Bill C-45, what we first encountered was a delay tactic in the form of a concurrence motion brought by the Liberal Party. Indeed, that was very disappointing to us and a surprise because Bill C-45 is important. It is the government's top legislative priority for this fall. All parties know that. He is quite right that I did want to see it debated in substance in the House rather than see those kinds of tactics to avoid debate.

Bill C-45's measures will further Canada's economic recovery and ensure the foundation for more good-quality jobs on top of the over 820,000 net new jobs we have already had. It includes an extension of the highly successful small business hiring credit that is directly helping Canadian entrepreneurs create new jobs.

Unfortunately, we have seen the NDP take an anti-job creation position. Believe it or not, the NDP finance critic actually dismissed the hiring credit as yet again another across-the-board cut for small businesses.

We want to see taxes lowered. We do not want to see higher taxes or an NDP carbon tax. That is why we have a budget bill that keeps those taxes low.

I am pleased to say that we will be voting on C-45 on Tuesday night at second reading, which will give us the opportunity to send it to the finance committee for consideration. The parliamentary secretary for finance has made it clear that she will ask the finance committee to ask, I believe, 10 other committees to study elements of the bill and potentially make recommendations with respect to changes or adopt its contents. The opposition and government members are free to make amendments at committee based on their own study as well as on the studies of those other committees. Therefore, there will be ample study of the bill and that is good for all.

Bill C-45 will continue to be debated this afternoon, tomorrow, Monday, and Tuesday. As I said, the vote on the bill will take place on Tuesday evening.

On Wednesday, we will take up report stage—and, hopefully, third reading—of Bill C-28, the Financial Literacy Leader Act. Should we be able to make quick work of that debate, the House will take up Bill C-12, the Safeguarding Canadians' Personal Information Act, at second reading.

On Thursday morning, the House will consider second reading of Bill S-2, the Family Homes on Reserves and Matrimonial Interests or Rights Act. And, after question period, we will turn to Bill S-8, the Safe Drinking Water for First Nations Act, also at second reading.

Finally, on Friday, we will start report stage of Bill C-24, the Canada–Panama Economic Growth and Prosperity Act. This bill would implement our free trade agreement with the Republic of Panama—an agreement whose time has long come. In fact, when I was the public safety minister, I was honoured to be present when the Prime Minister concluded negotiations in Panama City, some 38 months ago.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, it is with some irony that I rise and enter the debate on what is coming next after we had a description of a point of privilege and a monkey-wrench tactic that the Conservatives somehow surprisingly feel okay and comfortable with.

I will quote the hon. House leader from across the way on the last Thursday question response. When talking about what was coming next, he stated:

I look forward to a vigorous policy debate on the economy and not on procedural games.

One would have thought that a week or more would have passed before that particular statement would prove to be false. We know that for their own part the Liberals chose some procedural games as we began to engage on the debate around Bill C-45, the second omnibus bill, the second budget implementation act. Some have called it ominous and some have called it some other names.

We on this side of the House have personally and privately assured the House leader for the Conservatives that we are committed to a procedural-free exercise so that we can have a fulsome debate on all of the problems that we see in Bill C-45. We expected the government to make some initial commitments to that. We then saw the invocation of time allocation today, which is a method that the government has grown very addicted to for shutting down the debate.

My two questions for the hon. House leader across the way are very specific.

First, can we expect to see more of these procedural underminings of the democratic process when dealing with this second omnibus bill, be it in the House or when the bill is sent to the committees?

Second, is the government willing and open to the consideration, now that it has separated the bill into its component parts for sending to these various committees, of opening those committees in their capacity and ability to actually affect the legislation they are studying?

What Canadians will quickly see is that the government has cynically agreed to separate this huge 450-page bill into some pieces for the committees to study, but those committees cannot actually affect the bill they are studying. What kind of a situation is that for members of Parliament or committees? It is a “look but do not touch” policy that is coming from the Conservative government and one that will not allow MPs to do their jobs.

All MPs from all sides should be interested in this question. The ability to hold government to account remains a central and critical role for members of Parliament from all sides, including the Conservatives, who last time expressed some lament at having brought in and passed such a massive bill.

Therefore, will the government commit to no more of these procedural tactics to shut down debate, be it here, at committee stage or further stages of this bill so that Canadians can finally get a look at what the government is trying to do to them and MPs can do their jobs?

Will the government be open to the suggestion that, now that it has divided up the bill into its proper topics for various committees to study, that those committees actually do more than study and do the job that every committee has always done with every piece of legislation throughout parliamentary history, which is to be able to affect and improve it and correct the errors that are inherent in any piece of legislation, particularly one coming from the current government?

Bill C-45—Time Allocation Motion

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

Mr. Speaker, I must say, I am genuinely outraged, because we have seen this sort of thing before. The Conservatives have become experts in time allocation motions.

I think this does a real disservice to our democratic process, because when the government refuses to allow us as members, as parliamentarians, to debate a bill as important as Bill C-45, it is an affront once again to our democracy. This is also an affront to Canadians, because muzzling us, the members of the House, means muzzling all Canadians.

I want to say that we can still discuss and debate the contents of the bill, both here in the House and in committees. The work of parliamentarians is done in both places. It is important to remember that.

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

moved:

That, in relation to Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, not more than four further sitting days shall be allotted to the consideration of the second reading stage of the bill; and that, 15 minutes before the expiry of the time provided for government orders on the fourth day allotted to the consideration of the second reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this order, and, in turn, every question necessary for the disposal of the said stage of the bill shall be put forthwith and successively, without further debate or amendment.

Bill C-45--Notice of time allocation motion

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

Mr. Speaker, I rise on a point of order. Our economic action plan is working and it has helped support the creation of over 830,000 net new jobs since the downturn, but there is more to do. To continue this work we need to implement our plan for the passage of Bill C-45, the jobs and growth act.

I would like to advise that an agreement has not been reached under the provisions of Standing Order 78(1) or 78(2) with respect to the second reading 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. Thus, under the provisions of Standing Order 78(3), I give notice that a minister of the crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at this stage. It is my intention to propose four further days for the second reading debate of Bill C-45.

Government Operations and Estimates

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, I move that the seventh report of the Standing Committee on Government Operations and Estimates presented on Wednesday, June 20, be concurred in.

He said: I realize that we are delaying the debate on the budget Bill C-45 but I believe it is for an important reason. The government operations committee conducted a detailed report on how the House studies the estimates and produced a report that was unanimously supported with one minor exception.

Before members of this place can begin to properly debate the budget and the proposed expenditure cuts, we must clarify our desire for better and more timely information. Concurring in this report would do just that. I hope members on both sides of the House appreciate that this is not a hostile move. I believe that the President of the Treasury Board indicated on Monday during question period that he will support concurring in this report and I am confident that the motion will also receive the support of opposition members.

I will begin by providing a little background for the study in the words of the report itself. It reads:

In recent history, there have been two wide-ranging reviews of the estimates process, one by the House of Commons Standing Committee on Procedure and House Affairs in 1998, and another by the House of Commons Standing Committee on Government Operations and Estimates...in 2003. Of the 75 recommendations that came out of the two reports...few changes were made. The process for considering the estimates and supply should be revitalized, as there is still a need for more meaningful scrutiny.

In terms of an overview of the study, I will quote O'Brien and Bosc from The Procedure of the House of Commons: A Study of Its History and Present Form by Josef Redlich in terms of the importance of this topic. He writes:

The whole law of finance, and consequently the whole British constitution, is grounded upon one fundamental principle, laid down at the very outset of English parliamentary history and secured by three hundred years of mingled conflict with the Crown and peaceful growth. All taxes and public burdens imposed upon the nation for purposes of state, whatsoever their nature, must be granted by the representatives of the citizens and taxpayers, i.e., by Parliament.

Because Canada follows the British parliamentary model, that same statement applies to this country.

The first topic of the report I will talk about is “cash versus accrual accounting”. Recommendation 1 of the report is:

That the Treasury Board of Canada Secretariat complete its study of accrual-based budgeting and appropriations and report back to Parliament by March 31, 2013.

We have been told by the government that it will provide this report by March 31, 2013.

In terms of the rationale, I will read, again, from the report:

In the course of its study, the Committee considered the matter of cash versus accrual-based appropriations in the context of what information is most useful for parliamentarians in their consideration of estimates and approval of supply. The Committee heard from some witnesses who suggested that the financial information and appropriations in the main and supplementary estimates should be presented on an accrual basis as opposed to a cash basis. However there was no consensus among witnesses on the matter and the Committee heard from several witnesses who strongly favoured that information in the estimates remain on a cash basis.

In other words, there was no consensus among the experts as to whether cash or accrual accounting was better and, therefore, we did not pronounce on that issue, but we have asked that the Treasury Board Secretariat complete a study in the coming months.

The next issue concerns the timing of the budget versus the main estimates. Recommendation 6 reads:

That, to the extent possible, the budget items for a given year are reflected in the main estimates for that same year; and therefore that the government present its budget in the House of Commons no later than February 1 of each year; that the Standing Committee on Procedure and House Affairs pursue amendments to the Standing Orders, procedure and practice of the House of Commons in order to move the date on which the main estimates are presented to the House back to a later date in March; and that the Committee report to the House on its study by March 31, 2013.

The government does not support fixing the budget date as no later than February 1. The rationale for this, as confirmed by many expert witnesses, is that the earlier the budget is made, the more it is likely the budget measures of the current year will be included in the main estimates. The government makes the argument that this reduces the flexibility of the government. However, in the view of the committee, such a flexibility reduction is worth it in order to bring promptness of information to those who study the estimates. Indeed, Auditor General Michael Ferguson confirmed this point when he stated at committee:

The Main Estimates do not provide a complete picture of the spending plan and is not connected with the Budget. When we performed the audit in 2006, we found that the main reason for including items in the Supplementary Estimates was timing. The tabling of the Main Estimates in advance of the Budget was a key factor that gave rise to increased use of Supplementary Estimates.

In other words, the timeliness and usefulness of the information would be much enhanced if the government would agree to the committee's unanimous proposal to say that the budget must not be later than February 1.

The next issue involves questions in advance.

Recommendation 10 states:

That, where feasible, standing committees provide questions to departmental officials in advance of hearings on the estimates, and that committee members endeavour to ensure the necessary departmental officials are invited to appear for estimates hearings.

This is an issue that falls within the purview of the House of Commons rather than the government.

Recommendation 11 states:

That standing committees review statutory programs on a cyclical basis, at least once every eight years.This also falls within the purview of the House.

Recommendation 12 states:

That departments and agencies include tax expenditures, currently included in the Department of Finance’s Tax Expenditures and Evaluations report, in their reports on plans and priorities, as determined by the Treasury Board of Canada Secretariat to best fit their mandate.

The government does not support putting the tax expenditures in the reports on plans and priorities, but has said that it would coordinate the release of the annual tax expenditure report with the main estimates and that the Finance Department would offer briefings.

Recommendation 13 states:

That standing committees review tax expenditures presented in departmental reports on plans and priorities on a cyclical basis at least once every eight years to assess whether or not they are meeting their intended objective.

This too is within the purview of the House of Commons.

I come now to the topic of the Parliamentary Budget Officer. Recommendation 15 states:

That the House of Commons give its Standing Committee on Government Operations and Estimates the mandate to undertake a study of the Office of the Parliamentary Budget Officer which would include a thorough analysis of the mandate and function of the Office in order to better serve members of Parliament; and that in its study, the Committee should consider all structural models for the Office including, but not limited to, the Parliamentary Budget Officer reporting directly to Parliament as an Officer of Parliament.

This also is within the purview of the House. However, the government did not display great enthusiasm for this proposal, stating that the Library of Parliament committee had already studied the question of the Parliamentary Budget Officer. This was some time ago, and I think members of the committee, including Conservative members, were in agreement that now, just a few months before the current Parliamentary Budget Officer leaves the job and another person is appointed, would be a very good time to conduct a new study of the desirable mandate of the Parliamentary Budget Officer.

I will quote a couple of expert witnesses.

First, Allen Schick, distinguished professor, School of Public Policy, University of Maryland, stated, “Canada” in establishing a Parliamentary Budget Officer:

—was following a trend that is quite widespread around the world, and that is staffing up parliament to be able to better perform its budget-related responsibilities....The role often is to review the estimates to see whether they are reliable. The key budget work today around the world is not simply whether the money should be spent, but are the assumptions underlying the estimates robust? Are they reliable?

I think that is precisely the area where research done by the Parliamentary Budget Officer is invaluable.

Joachim Wehner, associate professor in public policy at the London School of Economics, stated:

The first one [change] is to protect and enhance the role of the Parliamentary Budget Officer....Internationally, the Parliamentary Budget Officer of Canada is very highly regarded, and it's certainly a major change...in the degree the parliament in Canada has access to an independent, highly professional research capacity...some adjustments are possible to the legal framework for the Parliamentary Budget Officer. In particular, this role could be strengthened, or the status be strengthened, if he were a full officer of Parliament. Moreover, steps could be taken so that the Parliamentary Budget Officer has total access to all relevant information. I see some scope for strengthening it also on the basis of international experience.

These are two very laudatory reviews of our current Parliamentary Budget Officer and very definite proposals that he be made an officer of Parliament.

I come now to recommendation 16 on online resources, which states:

That the government develop a searchable online database that contains information on departmental spending by type of expense and by program.

The government is committing to make this information available in a better digital format.

Recommendation 14 states:

That standing committees dedicate an in camera meeting at the beginning of a new Parliament, and periodically as needed, for a briefing session on the estimates and supply process and the related documents, with a focus on the committee’s role in scrutinizing government spending

This recommendation is within the purview of the House. The purpose is to ensure that all committee members have adequate training and information to carry out an examination of the estimates in an efficient and proper way.

Next is recommendation 2 on vote structure, which states:

That the Treasury Board of Canada Secretariat transition the estimates and related appropriations acts from the current model to a program activity model, that they assist federal departments with this process, and that they prepare a timeline for this transition by March 31, 2013, and transmit this timeline to the Committee.

The government said that it would provide a detailed report on transition to a program activity by March 31, 2013.

I would like to quote the current Parliamentary Budget officer, Kevin Page, because it is a very good quote. He states

On structure, it makes little sense in a 21st century world for parliamentarians to be voting on inputs like operations and capital, and grants and contributions that cut across a department spending many billions of dollars for a diverse set of program activities. Given the recent experiences with border infrastructure funds and aboriginal housing and education, would it not make more sense to consider program activities (five, 10 or 15 per department) or their associated outputs as more relevant control gates? Why should ministers and their accountability officers be able to move monies from one activity to another without scrutiny or consent? Would voting on program activities not encourage more meaningful scrutiny on service level impacts as we move forward with spending restraint? Would this not help simplify our estimates system, which collects financial and non-financial performance data on program activities?

The answer to all of those questions is a definite “yes”. I can assure members that the committee was absolutely unanimous that in the 21st century it made absolute sense to proceed with estimates based on program activity.

Next I come to the deemed adopted rule. Currently, the main estimates must be tabled by March 1 and reported back by May 31. Supplementary estimates must be reported back no later than three sitting days before the final supply day in the related supply period.

Recommendation 8 states:

That the Standing Committee on Procedure and House Affairs pursue amendments to the Standing Orders, procedure and practice of the House of Commons in order to require standing committees to consider during a minimum amount of time the estimates referred to them, and that the Committee report to the House on its study no later than March 31, 2013.

That is within the purview of the House, as is recommendation 9, which states:

That as part of its amendments to the Standing Orders, the Standing Committee on Procedure and House Affairs examine the feasibility of providing standing committees at least two sitting weeks to consider and report on the supplementary estimates, and that the Committee report to the House on its study no later than March 31, 2013.

I will quote Ned Franks, professor emeritus of the Department of Political Studies at Queen's University, who thinks that the deemed adopted rule needs to stay.

He states:

I do not like the process of deeming, which means that the votes are deemed to be passed whether they come out of committee or Parliament has approved them or not. But bearing in mind the capacity of parliamentary committees and Parliament itself to delay, procrastinate, and simply obstruct business, I think deeming is an essential part of the Canadian financial processes.

He later continues:

—I think we need that deeming thing in there as a protection against just pure bloody-minded obstruction and the refusal to pass budgets in minority parliaments.

Some of my colleagues might believe that there is never any bloody-minded obstruction in this place, but that is what the expert has suggested. It is for that reason the committee did not propose to get rid of the deeming rule, but rather to propose measures that would ensure a certain minimum amount of time was spent in examining the estimates and the supplementary estimates.

That completes the essence of our recommendations.

The Environment

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Mr. Speaker, the Conservatives are continuing their attacks on Canadian heritage lakes and rivers.

By weakening the Navigable Waters Protection Act and thus eliminating protections for our lakes and rivers, all through measures hidden in a second massive budget implementation bill, the Conservatives are allowing the development of infrastructure that could harm these same waterways without requiring that environmental assessments be conducted first.

How many lakes and rivers will be laid to waste and how many environmental assessments will be set aside because of Bill C-45?

Bill C-45—Jobs and Growth Act, 2012

[Lynne Yelich, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, I rise on a point of order. There have been consultations and I think you would find unanimous consent for the following motion. I move:

That the House recognize that the provisions of Bill C-45 dealing with members' pensions should be enacted as quickly as possible, and passed without further debate;

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 divided into two bills: Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, and Bill C-46, an act to amend the Members of Parliament Retiring Allowances Act; and

That Bill C-46 be composed of

(a) clauses 475 to 514 of Bill C-45, as it is presently composed,

(b) a clause, inserted before all of the other clauses, to provide that “This act may be cited as the Pension Reform Act”, and

(c) a clause, inserted after all of the other clauses, to provide that “This act comes into force, or is deemed to have come into force, on January 1, 2013”;

That Bill C-46 be deemed to have been read the second time and deemed referred to a committee of the whole, deemed reported without amendment, deemed concurred in at report stage and deemed read the third time and passed;

That Bill C-46 be composed of its remaining clauses;

That Bill C-45 retain the status on the order paper that it had prior to the adoption of this order;

That the Law Clerk and Parliamentary Counsel be authorized to make any technical changes or corrections as may be necessary; and

That Bills C-45 and C-46 be reprinted.

Combating Terrorism Act

[Lynne Yelich, Conservative, Blackstrap, SK]

Mr. Speaker, I rise on a point of order. There have been consultations concerning the provisions of the second budget bill dealing with members' pensions. I hope to receive the unanimous consent of the House for the following motion. It is a slightly edited version of what was proposed by the Liberal House leader yesterday.

I move that the House recognize that the provisions of Bill C-45 dealing with members' pensions should be enacted as quickly as possible and passed without further debate; 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 divided into two bills: Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures; and Bill C-46, An Act to amend the Members of Parliament Retiring Allowances Act; and that Bill C-46 be composed of: (a) clauses 475 to 553 of Bill C-45 as it is presently composed; (b) a clause inserted before all of the other clauses to provide that this act may be cited as the pension reform act and; (c) a clause inserted after all of the other clauses to provide this act comes into force or is deemed to have come into force on January 1, 2013; that Bill C-46 be deemed to have been read the second time and deemed referred to committee of the whole, deemed reported without amendment, deemed concurred in at report stage and deemed read the third time and passed; that Bill C-45 be composed of the remaining clauses; that Bill C-45 retain the status on the order paper that it had prior the adoption of this order; that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary; and that Bill C-45 and Bill C-46 be reprinted.

Business of the House

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

Mr. Speaker, just to clarify, I would have been quite happy to have consented to the motion had the member not included in it a provision for an additional opposition day. Had the member decided to conclude that NDP was prepared, since its subject for today was food safety, to make the balance of the day the debate on Bill S-11 and then have it proceed to committee, we would have been quite delighted to consent.

In terms of his suggestions on the budget bill, I am looking forward to meeting with him and discussing with him what opportunities might exist there further.

Earlier today, the Minister of Finance introduced Bill C-45, the Jobs and Growth Act, 2012.

This important piece of legislation will bolster Canada’s economy and help improve communities with initiatives that build a strong economy and create jobs, support families and communities, promote clean energy and enhance neutrality of the tax system, and respect taxpayers’ dollars.

We will start second reading debate of Bill C-45 on Wednesday—once honourable members have had a chance to review the bill and discuss it at next week’s caucus meetings. The debate will continue on Thursday and Friday.

I genuinely hope all members will take advantage of the budget bill study week that is available to review the valuable measures that are set out as the second half of our legislative arm of our comprehensive economic action plan 2012. One highlight of the study week will be a briefing arranged by the minister for all hon. members on Monday evening. I hope many MPs can attend, and certainly more than the paltry attendance of opposition members that appeared this spring for the briefing on Bill C-38.

I look forward to a vigorous policy debate on the economy and not on procedural games.

I turn now to the business of the House leading up to Wednesday.

This afternoon we will see the conclusion of the NDP's opposition day. Regrettably, I was personally disappointed that the official opposition did not answer my call last week to lay out the details of its $21.5 billion carbon tax and how it would raise the price of gas, groceries and electricity. Though, I was encouraged that this week in question period the New Democrats actually did acknowledge the subject and raised it.

Tomorrow and Monday will see us resume second reading of Bill S-7, the combating terrorism act. I understand we should finish that debate sometime on Monday, at which that time we will then turn to Bill C-15, the strengthening military justice in the defence of Canada act; Bill S-2, the family homes on reserves and matrimonial interests or rights act; and Bill S-8, the safe drinking water for first nations act.

On Tuesday, we will debate the second reading of Bill S-11, the safe food for Canadians act, unless we find some other approach that would allow us to move on a more urgent basis. Since we did not get unanimous consent to move it forward quickly, we are hopeful there will be some other approach that can be agreed upon to move quickly with it. We hope that if we do debate it that day, we will be able to deal with it quickly and then spend the balance of that day debating Bill C-15 and Bill C-12, the safeguarding Canadians' personal information act.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, what a great idea.

It is an honour for me to rise to ask the government, on behalf of the opposition, what it has in store for the House for the rest of this week and for next week.

This government clearly did not understand the message that thousands of Canadians sent it last spring regarding the omnibus Bill C-38 on the budget. Canadians said that the bill was an attack on the democratic process and on the integrity of the House, and a violation of the right of all Canadians to hold their government to account.

Today we have received Bill C-45, another monstrous bill from a government that simply does not seem to understand. The bill is 450 pages long and combines measures such as cutting funding for research and development and watering down environmental assessment rules with actual budgetary measures.

Clearly this government has not learned its lesson. Canadians expect more transparency and accountability from the Conservatives.

Eighteen years ago, the member for Calgary Southwest, the Prime Minister, said, and I want to quote him to set the context for what I am about to approach:

Mr. Speaker, I would argue that the subject matter of the bill is so diverse that a single vote on the content would put members in conflict with their own principles.

We now know that same member, as the Prime Minister, does not believe that applies to him any longer. At the very least, as we need to understand this bill and fully analyze, I will ask the government three questions about what follows.

Will the government split this bill into its component parts to allow for proper study?

If not, will it allow for multiple standing committees to study the divisions of this bill that fit into those committee mandates?

At the very least, will it allow for full debate on this bill without slamming the door with further closure or time allocations, as we saw last spring?

Last, New Democrats welcomed this morning's long overdue arrival of Bill S-11 from the Senate, which has been waiting for passage there for more than 120 days, and was killed by prorogation by the government previously. We are interested in passing this bill quickly to committee.

We are also interested in the integrity of the legislative process. I am somewhat surprised that the government is not so much. It has had to amend a number of its hastily written bills and has asked Canadians to simply trust it on this one and move it all stages. It cannot work with a Minister of Agriculture and Agri-Food who has failed us repeatedly and seriously in his role.

With Bill S-11 in mind, I believe that if you seek it, you will find unanimous consent for the following motion: That notwithstanding any Standing Order or usual practice of the House, this House move immediately to debate at second reading of S-11, that today's order for supply be deemed not to have been called, and that the order for the putting of the question on the supply motion and the deferral of that vote be deemed to have been withdrawn.