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.

Report Stage

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

I thank the member for his question. I did not have time to go over all the amendments from all the parties. However, I can say that we will look at them very carefully to determine if the amendments are pertinent and substantive.

We, too, are doing our part by proposing a number of amendments, and we will support them of course. I am certain that most of them are good amendments. I will have to examine the amendments more closely in order to speak to them all. Generally speaking, we have some very valid points and we hope the government will be open-minded.

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

Mr. Speaker, I thank the member for his speech and for mentioning the famous research and development program known as SR&ED.

He rightly criticized the Conservative government's mistake of reducing tax credits that we know are going primarily to major corporations that make huge profits.

We recently received the Emerson report, dealing with the aerospace industry, a sector that is critical and very important to Quebec and other regions in Canada. This directly affects the manufacturing industry, which is part of the aerospace industry. These are good-quality jobs. Good jobs.

I would like my colleague to speak more to the damage that changes to the SR&ED program will cause.

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

Mr. Speaker, I thank my colleague for her question. She does extraordinary work on this file.

I had an opportunity to talk to members of the business community in Sherbrooke, who also criticized these cuts and who spoke in particular about the benefits that this could have for them. I spoke a bit about our theory. The NDP's vision is to take advantage of this desire to innovate that is seen among manufacturing companies wanting to develop new technologies to ensure that emerging countries and their workers—who are paid less than workers here—do not come and take all these jobs or to ensure that our jobs are not sent there.

When companies innovate and develop new technologies, they can remain competitive and stand out among emerging countries. That is what will enable Canada to keep good, well-paying jobs, since emerging countries will not necessarily have the technology to take on such ventures. We must take advantage of that to ensure that we remain competitive and keep jobs here in Canada.

[Stella Ambler, Conservative, Mississauga South, ON]

Mr. Speaker, I am delighted to speak today to Canada's economic action plan 2012.

Canada has one of the strongest fiscal positions in the G7. Fitch Ratings, Moody's, and Standard & Poor's have all renewed Canada's AAA credit rating. Canada has, by far, the lowest net to GDP ratio in the entire G7. Due in part to the government's low tax plan, Forbes Magazine ranked Canada number one in the world for business to grow and create jobs.

Indeed, with the help of Canada's economic action plan, Canada has emerged as one of the world's top performing industrialized countries.

However, too many Canadians are still looking for work and the global recovery remains fragile. That is why economic action plan 2012 moves ahead to secure jobs, growth and long-term prosperity for Canada by promoting job creation and helping small businesses thrive through reducing red tape, strategic investments, supporting seniors, families and communities, as well as ensuring long-term sustainability through investing in green technology, keeping taxes low and leading the global economic recovery.

My focus today will be on the impact of budget 2012 on small businesses, families and seniors.

With regard to small businesses, our Conservative government recognizes the vital role small businesses play in the economy and job creation. That is why we are committed to helping small businesses grow and succeed.

As someone who started working in my father's wholesale hardware business at the age of 12 on Saturdays and in the summertime, I understood at a very young age the importance of small business to the big picture of Canada and jobs, and ensuring that our economy is strong.

Budget 2012 includes a number of key measures to support the growth of small businesses, like my father's business, and to promote job creation, such as extending the hiring credit for small business. This is a temporary credit of up to $1,000 against a small firm's increase in its 2011 EI premiums over those paid in 2012. This temporary credit will help approximately 536 employers defray the costs of additional hiring. These employers will take into account these savings when hiring and, in some cases, it may even make the difference between whether to hire a new employee.

For small businesses, we are also reducing red tape, implementing the one-for-one rule and committing to develop a red tape reduction action plan to reduce unnecessary and ineffective regulations. This would small businesses to focus on what they do best, which is grow and create jobs. Ultimately, reducing the administrative tax burden on small businesses does help them create jobs.

Our government is also supporting entrepreneurs, innovators and world-class research. An excellent example of how strategic investment by government in a solid, local company can make a major contribution to our economy is Electrovaya Inc. located in Mississauga South. Electrovaya is an innovative company that designs and builds the next generation of environmentally friendly lithium ion battery energy storage systems for commercial and industrial use. Our government invested $3.6 million through Sustainable Development Technology Canada to this company to help it develop and provide clean energy technology and create high-quality jobs in Mississauga.

Members may have heard about Electrovaya recently because they were part of the Prime Minister's trade mission to India. Electrovaya signed a deal to provide an Indian company with its lithium ion batteries for electric bicycles that are being sold in North America and Europe. Companies like these create good, high-paying jobs for our community, as well as innovative products to export to other nations, and they do it in an environmentally sound way to protect the future for all of us.

[The Deputy Speaker]

The hon. member will have 5 minutes and 45 seconds when we resume debate.

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.

Jobs and Growth Act, 2012

[The Speaker, Andrew Scheer]

The hon. member for Mississauga South has six minutes remaining to conclude her remarks.

[Stella Ambler, Conservative, Mississauga South, ON]

Mr. Speaker, before question period, I started talking about the benefits in the economic action plan 2012 for small businesses. Next I would like to focus on the benefits for families and seniors.

For the most part, it is about our promise to keep taxes low. Unlike the high tax NDP and Liberals, our Conservative government believes in low taxes and leaving more money where it belongs, in the pockets of hard-working Canadian families. That is why we have cut taxes over 140 times since 2006, reducing the overall tax burden to its lowest level in nearly 50 years.

We have removed over one million low-income families, individuals and seniors from the tax rolls altogether. We have cut taxes in every way government collects them: personal taxes, consumption taxes, business taxes and more. This includes cutting the lowest personal income tax rate to 15%, increasing the amount Canadians can earn tax free, providing seniors with pension income-splitting, reducing the GST from 7% to 5%, putting nearly $1,000 back in the pockets of an average family.

We have also introduced the children's fitness tax credit and the children's arts tax credit, as well as the universal child care benefit offering families more choice in child care by providing $1,200 a year for each child under the age of six. We introduced the child tax credit providing personal income tax relief of up to $320 in 2011 for each child under age 18. This Conservative government's low tax record has provided tax savings for a typical Canadian family totalling over $3,100.

Also in order to help families, we are improving the registered disability savings plan to help ensure long-term financial security of children with severe disabilities. We introduced the family caregiver tax credit, a credit of up to $2,000 for caregivers of all types to infirm, dependent relatives, including spouses, common-law partners and minor children.

We are investing in small public infrastructure with $150 million to support repairs and improvements to existing community structures. This includes investments in my community, including the Clarkson Community Centre Pool, the Lions Club of Credit Valley Outdoor Pool, David Ramsey Outdoor Pool, Lewis Bradley Pool, as well as the Lakeview and Lorne Park public libraries. Thousands of children, their parents, students and seniors in Mississauga South use these pools and libraries every day.

With regard specifically to supporting seniors, our Conservative government recognizes that Canada's seniors helped build and make our country great. That is why economic action plan 2012 introduces new measures to improve the quality of life and expand opportunities for Canadian seniors, including the Third Quarter project, an innovative online approach to help employers find experienced workers over age 50 who want to keep using their skills in the workforce, improving flexibility and choice for senior workers.

For those who do wish to work longer, economic action plan 2012 provides the option to voluntarily defer take-up of old age security benefits. Those doing so will subsequently receive a higher annual actuarilly adjusted pension on take-up. This builds on top of the tax relief our government has already provided to seniors and pensioners since 2006, including removing over 380,000 seniors from the tax roll, again, introducing pension income-splitting, increasing the age credit amount by $2,000, doubling the pension income credit to $2,000, increasing the age limit for RRSP to RRIF conversion from age 71 to 69, establishing the tax-free savings account, which is particularly beneficial for seniors, and introducing the largest GIS increase in over 25 years, helping more than 680,000 seniors across Canada.

I am also proud that we have taken steps to combat elder abuse in all its forms, including abuse awareness activities through the new horizons for seniors program and introducing legislation in March of this year to ensure tougher sentences for those who abuse seniors.

I was proud to serve on the Standing Committee on the Status of Women where our review and study of elder abuse did make this recommendation to the government for tougher sentences for those who abused our most vulnerable senior citizens.

Let me reiterate that Canada is leading the global economic recovery. Our Conservative government is squarely focused on the economy and jobs. In fact, Canada has created over 820,000 net new jobs since July 2009. Canada has, by far, the best rate of job growth in the entire G7 and has had that since 2006. Canada's unemployment rate is significantly lower than that of the U.S., a phenomenon that has not been seen in nearly three decades.

However, the global recovery remains fragile and we must secure Canada's recovery. While the NDP and the Liberals want to engage in a reckless spending spree, and maybe even a $21 billion carbon tax, our Conservative government is committed to returning to balanced budgets.

Budget 2012 focuses on jobs and economic growth, ensuring that Canada's small businesses, and families and seniors are our top priorities. I would encourage all members to support this jobs and growth bill, our second budget implementation act, and vote for Canada's economic plan 2012.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I listened carefully to the speech given by the hon. member for Mississauga South.

As I demonstrated earlier with a very simple example, the Conservative government is completely incompetent when it comes to our economy, considering the staggering $550 billion in capital that Canadian businesses are hanging on to. This is a sign that entrepreneurs and business leaders do not have confidence in the future. They are refusing to invest their money, and who could blame them? If anyone is to blame, it is those responsible for this poor economic climate.

The fiscal imbalance, which is now huge, is another problem this government is responsible for. Approximately 80% of the tax burden falls entirely on the shoulders of individuals, while large corporations are enjoying tax breaks.

So I have a question for the member. Just how far will the government go to get out of having to support people and abandon them to their fate?

[Stella Ambler, Conservative, Mississauga South, ON]

Mr. Speaker, I wonder what Canadians would think if the opposition were the Government of Canada, whether they would even remotely consider investing in Canadian businesses if the NDP had its way and its high-tax agenda were implemented. Frankly, I think Canadian businesses are frightened of that prospect. They are frightened of the fact that the NDP is anti-investment and anti-trade.

Canadians deserve better than this radical opposition. Unlike the NDP, our Conservative government will not raise taxes or slash transfers to the provinces. In fact, just today PricewaterhouseCoopers said that Canada has one of the best tax systems, including for small to medium-size businesses to thrive. That is what the experts are saying. That is the confidence that Canadians businesses have in this government and how we are helping them.

[Kellie Leitch, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, I want to thank the member for Mississauga South, knowing how dedicated she is to her constituents, particularly the families in her area. She has a young family herself. I know how important the services and other items are to both her family and constituents.

One of the things this budget really focuses on is small businesses. I know that in the member's riding of Mississauga South there are a number of small businesses, all of which are delighted with the direction this budget is taking and how it is going to help them become even more prosperous and to create even more jobs.

I wonder if the member could comment on the impact of this budget on small businesses in her riding of Mississauga South.

[Stella Ambler, Conservative, Mississauga South, ON]

Mr. Speaker, I know that the member for Simcoe—Grey supports small businesses and families in her riding as well. I very much appreciate her question and the opportunity to talk about how this budget helps small businesses.

In particular, I have heard many businesses talk about how the reducing red tape initiative will be helpful to them. When businesses are spending time doing that, they are not being productive and growing as businesses.

We are also expanding trade around the world, which helps small businesses. I talked about the example of Electrovaya in my community, which makes lithium ion batteries and is contributing to energy efficient green technology.

Most of all, I think that small businesses in Mississauga South and across Canada appreciate the hiring tax credit. It is very unfortunate that the NDP voted against this very worthwhile initiative.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, it is an honour to rise and address the House this afternoon on the important reforms our government is making in budget 2012. Economic action plan 2012 is focused on what matters most to Albertans and all Canadians, building the right conditions for prosperity today and generations to come.

I want to highlight aspects of Bill C-45, the second budget implementation bill, that support research, create jobs and promote clean energy. Not only do these initiatives advance innovation in Canada and play a key role in achieving the priorities outlined in the economic action plan but they are also critical to who we are as Albertans and Canadians.

We know well that economic prosperity is not a given. It is the fruit of hard work and tremendous imagination. Investing in our students, entrepreneurs and researchers is our strongest guarantee that Canada's future will be bright, that we will break the confining limits of the past and open new opportunities for a long and prosperous future. Indeed, the OECD predicts that Canada's economy will lead the developed world for the next half century.

Since 2006, we have taken concrete steps to make sure that Canada is a global leader in research and innovation, and have invested nearly $8 billion in new funding for initiatives to support science, technology and the growth of innovation firms in Canada, including $5 billion for advanced research, education and training; $2 billion for post-secondary infrastructure; and $1 billion for applied research and financing.

For instance, budget 2012 directs $71 million over four years to further establish the Canada excellence research chairs to attract the world's best researchers to Canada, and over $600 million to support cutting-edge research throughout Canada via the Canada Foundation for Innovation. I am proud to say that the University of Alberta has been awarded more research chairs than any other institution in Canada.

We are confident that our government's support for research commercialization will help bridge the gap between Canadian innovations and the ability to bring these ideas to market. For instance, our economic action plan proposes $440 million to create centres of excellence for commercialization and research to help transform great ideas into concrete success in the Canadian marketplace.

Economic action plan 2012 also targets $470 million over four years to support strategic innovation projects in key sectors of the Canadian economy, including the automotive, aerospace, forestry and clean technology sectors.

Investing in Canadian research and innovation is not only fundamental to developing a robust competitive global economy; investing in innovation is not only about creating jobs and generating economic prosperity, though it does that too, but it is also the case that investing in great minds and pioneering approaches to science and technology affects every aspect of daily life in Canada. I will provide an example.

Marquis, a wheat variety developed at the sunset of the 19th century in Indian Head, Saskatchewan, led to an explosion of cereal production in Canada. The ingenuity of crossing two kinds of wheat to develop a grain that could thrive in prairie climates resulted in a wave felt in communities across the Prairies.

Great Canadian innovations have shaped the course of our history from Marquis wheat to insulin in the 1920s, the snowmobile and the electron microscope in the 1930s, canola in the 1940s, Research in Motion's BlackBerry in the 1990s, and the countless universities and businesses across Canada that are on the leading edge of research today.

While the private sector plays the leading role in research, innovation and commercialization, we know that institutions such as the National Research Council can be important partners in discovering these new engines of growth. This is why the 2012 economic action plan also proposes $67 million to support the National Research Council in refocusing on business-led, industry-relevant research.

Edmonton Centre is home to many world-class research institutions and companies at the forefront of the innovation economy. Earlier this month, I was honoured to join Ceapro, an Edmonton-based biotechnology company, to announce the signing of a letter of intent with Agriculture and Agri-Food Canada to collaborate in the development of a unique variety of oats. This new variety of oats will enable Ceapro to extract larger quantities of its flagship product, an active ingredient found in oats. Ceapro's team of chemists, biologists and engineers is developing cutting-edge ways of extracting natural ingredients from oats that have health benefits. These active ingredients are then used by major brands in cosmetic and therapeutic products. Ceapro's success, both as a corporate citizen and local employer, is a great example of the multiple benefits that economic innovation brings to communities like Edmonton and, by extension, to the rest of Canada.

Another example of how these initiatives are playing out in innovation capitals like Edmonton is the impressive work of a company named Synodon. Based in Edmonton, the company has developed a system that can remotely detect gas, enabling the monitoring and measurement of methane gas in the Arctic. The funding will allow this technology to be used by Natural Resources Canada to survey the vast Canadian Arctic. Synodon's proposal is one of over 60 that will be supported by the new program, Canadian innovation commercialization.

Public Works and Government Services Canada has been working with selected companies, like Synodon, to build partnerships that allow their innovations to be matched with federal government departments.

Companies, like Ceapro and Synodon, bring with them jobs and economic growth to Edmonton, to Alberta and to Canada. They also bring additional benefits. They advance the very science that the next generation of students will study. They achieve feats of human creativity that set the bar to which students, teachers, scientists and researchers aspire. Technological innovation underpins both the history and the future promise of Canadian economic development.

Budget 2012 regenerates and reinvigorates Canada's capacity to innovate and to play a leading role in global research. The first budget implementation plan, Bill C-38, outlined many of these initiatives. In addition, Bill C-45 also advances our ability to cultivate a competitive clean energy market in Canada.

For instance, through the economic action plan, the government initiated a clean energy fund. This fund is providing nearly $795 million to support research and development projects to advance Canadian leadership in clean energy technologies. This program is already off to a good start. To date, the clean energy fund is supporting two large-scale carbon capture and storage projects in Alberta totalling $150 million. The goal of the clean energy fund is to help create a variety of clean energy technologies and knowledge needed to ensure that these technologies are widely used in the future.

Our government is committed to sustainable resource development in all sectors. Bill C-45 expands the eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of bioenergy equipment, and phases out the corporate mineral exploration and development tax credit, and phases out the Atlantic investment tax credit for activities related to the oil and gas and mining sectors. These shifts will create a more level playing field for taxation in the energy sector and will support a new generation of clean energy producers.

We will continue to work hard to create the necessary conditions in the economy that will bring new jobs, growth and long-term prosperity. Though we are on track for the Canadian economy and Canadian families, with over 820,000 net new jobs created since July 2009, we will work as hard as ever to honour our commitment to Canadians to be global leaders in economic stewardship. Against the backdrop of a fragile global economy, especially in Europe and the United States, our largest trading partners, we will continue to make economic stability and prosperity a bedrock priority.

The people who gave me the great honour of representing Edmonton Centre expect things to get done here in Ottawa. Budget 2012 and Canada's economic action plan are doing just that. This is not the time to rest on our laurels, to sit back and let partisanship get in the way of delivering results for Canadians.

I would like to speak for a couple of minutes to the nationwide economic benefits of activity in Alberta. Contrary to some recent regrettable remarks by a couple of members opposite, which I will not bother to dwell on, it is the job of Alberta MPs to represent all that our province is and all that it has to offer to the rest of Canada. That is no different from the job of MPs from every part of this country. At the same time, we all have a responsibility to be part of a much bigger picture and that is the picture of Canada.

While the resources in any province are technically the property of that province, Alberta MPs certainly understand that our natural resources are there for the benefit of the entire country. By an accident of geography and geology, Alberta and Saskatchewan have vast reserves of oil and gas to be developed for the national good. By an accident of geography and geology, Quebec is blessed with the capacity of hydro power, British Columbia with forestry and so on across the country. None of these accidents of nature make one part of the country better or worse than any other. What they do collectively is make us the richest country in the world in terms of natural resources. We should all be proud of that and we should all appreciate what each part of our great country offers to the overall good of each and every Canadian.

We should not be practising the politics of division. We should be preaching and practising the politics of unity and sharing a common bright future in Canada that is much more than merely the sum of its parts. All members of this House were elected to strengthen the economy and lay the foundation for jobs of tomorrow.

I am proud of our government's accomplishments to date but there is more to be done. I urge all members of this House to support the budget implementation act and allow it to continue to move forward in carrying out Canada's economic action plan.

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

Mr. Speaker, I rise on a point of order. I have the honour to table, in both official languages, a document titled, “The Government's Response to Question on the Order Paper No. 988”.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I am wondering if that was a proper point of order. The time to have put that forward was in the period for routine proceedings which, by her own party's manoeuvres, was ended for today and we were prevented from putting forward petitions, reports from committees or any other routine proceedings.