Bill C-45 (Historical)

Jobs and Growth Act, 2012

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

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

Jobs and Growth Act, 2012

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, first I would like to acknowledge the apology from the member for Mississauga—Streetsville. That was a very classy thing to do and I thank him for that.

I would like to speak to Bill C-45. I am honoured to stand in the House to talk about Bill C-45, but one of the sad things about speaking to the bill is that I will be one of the few MPs who will get to do this, because once again the Conservatives have brought forward time allocation on the bill. I believe it is a record. I believe we are at 31. Unfortunately, when we take away democracy 31 times it is not cause to be proud.

I stand today speaking against Bill C-45, but again, it is with much dismay that we do not see enough people being able to debate in this House, with time allocation.

Ironically, Bill C-45 is entitled the jobs and growth act, and it entirely lacks significant measures to create jobs and stimulate growth in the long term for Canadians. Tax credits to small businesses are short term and very small in size. Support to business research and development has been cut. Where is the Canada-wide strategy to create good jobs, while 1.4 million Canadians are still unemployed?

The Minister of Finance announced during the November constituency week that the government will fall short of its own deficit targets. Worse still, the Conservatives have failed to outline any contingency plan to deal with slowing growth and increasingly negative fiscal indicators.

The Conservatives are focused on austerity measures that will act as a further drag on our economy. They have claimed that their budget is about job creation, but again, even they admit it will lead to 19,200 lost jobs in the public service and the PBO projects a total of 102,000 jobs lost.

In his appearance before the House of Commons finance committee on April 26, the Parliamentary Budget Officer confirmed that the Conservative austerity budget would mean a loss of 43,000 jobs and would slow Canada's economic recovery. He confirmed that when combined with prior cuts, there would be a total of 103,000 jobs lost.

The PBO's numbers point to the fact that the budget would create a significant drag on our economy. Even the Centre for Policy Alternatives states: “In total, federal spending cuts could lead to the elimination of over 70,000 full time equivalent positions”. These are not only public sector losses. About half of these jobs would be lost in the private sector.

Taking a look at the changes to SR and ED and business R and D support, Bill C-45 would implement significant changes to SR and ED tax credit programs, as outlined in the budget. These changes would reduce the tax credit rate, particularly for large businesses, and eliminate the eligibility of capital expenses. This change could be highly distortional for firms' labour-capital ratios.

While the government has cut at least $500 million per year through the SR and ED, it has not introduced any new direct funding to replace this gap. The combined effects would be to reduce government support for business R and D at a time when Canadian businesses most need to increase innovation and productivity to succeed in an increasingly competitive global economy. This would particularly hit the manufacturing sector, and it is likely to drive firms to move their R and D activities to other countries with better incentives.

The Conservatives are engaged in cost cutting under the guise of addressing underperformance in innovation. They have done nothing to fix the complexity and overhead costs of applying for and administering SR and ED tax credits.

Another thing the bill is reducing and eliminating is the Navigable Waters Protection Act. It removes water protection from the name of the bill. Now it is just about navigation protection. This is not a small change, and it demonstrates the government's reckless attitude toward environmental protection.

In fact, the Conservatives would not allow these changes to be studied by the environment committee, despite the fact that the proposed changes have significant implication for our environment.

The government issued a press release, bragging about the change of the title from Navigable Waters Protection Act to the navigation protection act.

This type of measure shows just how out of touch Conservatives are with Canadians' desire to protect the environment and build a sustainable economy. In fact, Bill C-45 completely guts the Navigable Waters Protection Act, with the exception of the 3 oceans, 97 lakes and 62 rivers. The act would no longer automatically apply to projects affecting waterways. This would leave thousands of waterways without protection, meaning fewer environmental reviews by Transport Canada. Efforts by the opposition to ensure protection for all navigable waters were defeated at committee.

Under Bill C-45, only 10 of Canada's 37 designated Canadian heritage rivers would be protected. Those left out of the new act include the Cowichan River, the Clearwater River, the Main River, the Margaree River in Nova Scotia and the Mattawa River, which is close to me. Speaking of what else is close to me, it is the city of Sudbury. The City of Greater Sudbury is known as the city of lakes. There are 330 lakes within the boundaries of the City of Greater Sudbury. Also my colleague from Nickel Belt would have the same concerns as I do.

When all of the lakes and rivers within a riding are eliminated from having the same protections, it makes one scratch one's head as to why we are doing this. Protecting our lakes and rivers is paramount. The City of Greater Sudbury, for example, as I mentioned, has Ramsey Lake within its city boundaries. People can fish and swim practically in downtown Sudbury. People in parts of the city use Ramsey Lake for their drinking water. That would no longer be protected under the Navigable Waters Protection Act or the navigation protection act. That is sad. It leads people to wonder what kind of country we will be leaving for our children.

We need to ensure that our children have places to swim and fish. We need to protect the wildlife within those areas as well, from fish habitat to duck habitat. Throughout my riding and northern Ontario, lakes and rivers would no longer be protected. As I said, 97 lakes and 62 rivers are being protected, and that is what is being changed. We need to ensure we protect more lakes and rivers right across our country because we need to ensure we leave clean lakes, rivers and air for our kids in the future.

New Democrats oppose budget 2012 and its implementation bills, unless it is amended to focus on the priorities of Canadians: creating good quality jobs, protecting our environment, strengthening our health care system, protecting retirement security for all and ensuring open and transparent government. As mentioned, this is another massive omnibus bill that contains a wide range of unrelated measures. The government is trying to ram legislation through Parliament without allowing Canadians and MPs to thoroughly examine it.

One thing my hon. colleague on the other side talked about earlier in his speech is the greatness of our nation. We are blessed to have resources from coast to coast to coast in forestry, mining in my community, lakes and rivers right across the country and the oil sands in Alberta. We should be debating the changes that are being proposed. Unfortunately, as I stated at the outset of my speech, there has been lack of debate and conversation because the government is shutting it down once again. There have been 31 time allocation motions, which is shameful, especially when we are talking about an issue that is so important to Canadians from coast to coast to coast.

The House resumed consideration of 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.

[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.

[Les Linklater, Assistant Deputy Minister, Strategic and Program Policy, Department of Citizenship and Immigration]

Thank you, Mr. Chair.

Good afternoon, members of the committee.

My name is Les Linklater. I'm the assistant deputy minister of strategic and program policy at Citizenship and Immigration. I'm joined by my colleague, Dawn Edlund, who is the associate assistant deputy minister for operations; Peter Hill, who is the director general of enforcement at Canada Border Services Agency; and Geoff Leckey from the operations sector of the Canada Border Services Agency as well.

I would like to first thank the committee for providing CIC and CBSA with this opportunity once again to contribute to this important study.

When CIC officials last appeared to address this study, we spoke to some of the recent measures we have introduced to help safeguard the security and integrity of our immigration system.

Throughout the course of this study, concerns have been raised about two of our most significant initiatives—beyond the border, the Canada-United States Action Plan for Perimeter Security and Economic Competitiveness, and the use of biometrics.

In recognition of some of these concerns, I would like to speak about these two initiatives in more detail. Increasing application volumes, changing travel patterns, and a growing prevalence in sophistication of identity fraud pose significant challenges to maintaining the integrity of Canada's immigration system. The perimeter action plan and the use of biometrics in the temporary resident program are important initiatives that will increase our ability to address serious security concerns. At the same time, they will enable us to further facilitate the flow of legitimate travellers and trade across our borders.

Here's how.

Next year, we will begin using biometric technology to screen visitors from certain countries who require a visa. The use of biometrics, by way of photographs and fingerprints, will bolster Canada's existing measures to reduce immigration fraud.

The reason is that biometrics will help us to prevent known criminals, failed refugee claimants and previous deportees from using a false identity to unlawfully obtain a Canadian visa and enter our country under false pretenses.

The use of biometrics will also help us to facilitate legitimate travel.

It's a key challenge for any immigration program to identify applicants accurately each time they apply. For example, names can be changed; typing errors may be made; applicants may have similar names; or people can deliberately conceal their identity. Biometrics will help us modernize our visa services and give our visa officers greater certainty to confirm the identity of legitimate travellers to Canada.

Furthermore, collecting biometric information each time a person reapplies for a visa will make it easier and faster to confirm their identity. We anticipate that the use of biometrics will therefore lead to a quicker visa issuance process.

I would like to note that the Government of Canada has no plans to collect biometrics from Canadian citizens. Also, every applicant's privacy will be protected in accordance with Canada's Privacy Act. To ensure this, CIC has been working closely with the Privacy Commissioner and her office so that adequate privacy protection safeguards are in place to protect an applicant's personal information. In fact, at each stage of development of both biometrics and perimeter action plan initiatives, CIC has recognized the need to balance the safety and security of Canadians with individual privacy rights.

For example, CIC worked closely with the Office of the Privacy Commissioner during a biometrics field trial conducted between October 2006 and April 2007. During this field trial, CIC and the Canada Border Services Agency tested the use of biometrics in Hong Kong and Seattle, and at the Vancouver International Airport, the Douglas/Pacific Highway border crossing and Toronto's refugee processing centre. The field trial demonstrated that biometric information is highly effective in confirming identity, while ensuring applicants' privacy is protected.

The use of biometrics will put Canada in line with many other countries that are now using, or preparing to use, biometrics in immigration and border management. These include the United Kingdom, Australia, the United States, New Zealand, other countries in the European Union and Japan.

I would also like to remind the committee that the use of biometrics is not new in our immigration system. For example, CIC has collected fingerprints from refugee claimants, detainees and persons removed from Canada since 1993.

A challenge for our current immigration system is that some inadmissible individuals have been able to re-enter Canada using false identities. As I stated earlier, the use of biometrics will help prevent this scenario from happening in the future.

As part of the perimeter action plan, another screening tool we plan to implement by the spring of 2015 is the electronic travel authorization for nationals of visa-exempt countries, except for travellers from the U.S. We discussed this in the context of the review of Bill C-45 last week. As members are aware, this will establish a common Canada-U.S. approach to screening travellers prior to their departure for North America. Like the use of biometrics, this tool will help us to fulfill our goal of preventing inadmissible individuals from travelling to Canada while facilitating travel for low-risk travellers.

Once an application for an ETA has been submitted, a risk assessment will include queries against applicable databases. We anticipate that authorization will be received within minutes, in most cases, as this has been the experience already in the United States.

An important consideration is that the eTA may provide Canada with more flexibility to lift visa requirements, as it may deter inadmissible applicants from coming to Canada if they know that their information will be verified prior to travel. It is also expected to reduce the need for visas because it would focus on at-risk individuals, not countries or territories.

Also starting next year, we plan to have in place systematic biographic information sharing with the United States on immigration issues. This includes information on all temporary resident and immigration applications, inland asylum claimants, overseas resettled refugees and deportations. By 2014, we will build on this when we start sharing biometric information with the United States.

To date, we have had great success in sharing biometric information with our five country conference partners. For example, this has uncovered individuals who have used multiple identities, inconsistent immigration histories, and criminal records. This has demonstrated the value of increased information sharing, and we hope to continue this success by increasing our information sharing with the U.S.

CIC and CBSA will also share information with the U.S. on the entry and exit of travellers who cross our shared land borders. In support of this, CIC will establish a universal requirement for all individuals entering Canada to present approved travel documents.

I wish to assure the committee that Canada will retain its sovereignty in making admissibility decisions. I wish to also remind members that the U.S. will not have direct access to Canadian databases.

As with our other security measures, information sharing with the U.S. will help us to better detect fraud and improve public safety, through better detection of persons who have criminal histories or pose other risks to the public. It will also facilitate the flow of legitimate travel across our borders.

Once again, Mr. Chair, I wish to thank you for inviting me to appear today. I hope that my remarks have been helpful to the committee and I would be happy to answer any questions. Thank you.

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.

Report Stage

[Louis Plamondon, Bloc, Bas-Richelieu—Nicolet—Bécancour, QC]

Mr. Speaker, I listened carefully to the speech by my colleague from Sherbrooke, and I have a request for him. Could he talk more about the substantial amendments the Bloc Québécois presented with regard to Bill C-45?

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

Mr. Speaker, consider the approach that we tried this morning.

This very morning, we tried to protect all the other lakes and rivers. My colleague, the environment critic, tried to add all the other lakes and rivers to Bill C-45, but did not succeed because the Conservatives were being very closed-minded about it.

Unfortunately, the Conservatives used procedure to reject the proposal. The NDP wanted to add these lakes and rivers. Unfortunately, the Conservatives refused.

If there are other options that will help protect them, we will focus on those and definitely vote for them.

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

Mr. Speaker, I thank my hon. colleague for his speech.

I have already introduced amendments to Bill C-45 to lessen the destructive changes being made to the Navigable Waters Protection Act.

Will the NDP member vote in favour of my amendments to protect all navigable waters in Canada, and not only those on the short list mentioned in Bill C-45?

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

Mr. Speaker, they may not like listening to me because I am telling the truth. I will continue my speech despite all of the noise in the House.

I was saying that this bill severely weakens environmental legislation. That was the case with Bill C-38, the first budget implementation bill. Today we are debating the second budget implementation bill, with which the Conservatives are unfortunately continuing to weaken environmental regulations, at the expense of future generations, who will have to live with the consequences of what they are doing.

The NDP thinks that Canadians deserve much better than what the Conservatives have put forward. We will therefore oppose the bill at third reading, just as we have opposed it at the other stages. We will continue to oppose it during the vote that will probably be held tomorrow, since the Conservatives are rushing us through things. We would have liked to have much more time to examine the bill. However, the vote will likely be held tomorrow. The Conservatives left us little time to examine these 450 pages, or, if we also include the budget, these 900 pages. We received the budget in March, and the two bills were then introduced. If we add them together, that makes 900 pages of bills, for a single budget. That is completely unacceptable. Furthermore, it is completely unacceptable that the government does not respect our institutions and is ramming through such massive documents.

As I said earlier, the Conservatives have laid off 19,000 government employees. In my opinion, this is contributing to poor public administration since services have been affected. It is possible to consider all the information available and make cuts in the right areas. Unfortunately, the Conservatives have decided to act blindly and make cuts to services. In Sherbrooke, many services have been cut. Positions have been cut at Service Canada and the Canada Revenue Agency office is no longer accessible to the public at all. No one can go there. The people of Sherbrooke have spoken out against these cuts.

We had hoped that the Conservatives would be more open-minded when we tried to move substantial amendments in committee. However, unfortunately, once again, they did not demonstrate any open-mindedness with regard to this bill. This is not the first time this has happened.

The Conservatives are also making clear cuts to scientific research and experimental development. The budget implementation bill makes changes to the tax credit program. These changes reduce the tax credit rate, particularly for big businesses, and eliminate eligible capital investments. The combined effect reduces government support for businesses that use the scientific research and experimental development program, just when Canadian businesses most need to promote innovation and productivity if they want to succeed in a very competitive global economy. This will particularly affect the manufacturing sector.

The NDP's vision involves making a place for innovation in the manufacturing sector so that it can remain competitive in relation to other emerging economic sectors that, unfortunately, have a workforce that is paid far less than ours. The government's role is to promote innovation in order to remain competitive in a globalized market, ensure the survival of our businesses, and keep our good jobs here in Canada. If the NDP were in office, things would be done much differently. We would use innovation to increase competitiveness and access other markets, thereby allowing us to keep our jobs. That is the NDP's vision.

Unfortunately, the Conservatives have done a terrible job of managing the Canadian economy. They have created the largest deficit in Canada's history. I am really surprised to hear them say that they are doing such a great job with the economy when they have created both the largest deficit and the largest trade deficit in Canadian history. Then the minister tells us that he is going to miss the deadline. That is further proof of bad management and bad public administration. I feel it is my duty to speak out against that here.

As I said at the beginning of my speech, there are other changes that affect environmental protection. It started with Bill C-38, three-quarters of which was about environmental protection, or rather, environmental deregulation. The Conservatives are chipping away at environmental protection. Bill C-45 is a continuation of the previous bill, particularly with its changes to the Navigable Waters Protection Act, which will now be called the navigation protection act. This small change will mean big changes. The bill is no longer about water. The word “water” has been removed from the title of the bill.

The government is discarding the concept of protecting water and is focusing solely on navigation, even though we know the two go hand in hand. It should go without saying that protecting navigation means protecting the environment that makes navigation possible. Unfortunately, the Conservatives added schedule 2 to the bill, a list of all of the lakes and rivers that will still be protected under the new act, which will be called the navigation protection act. Only about 180 of Canada's tens of thousands of lakes and rivers will be protected. Most of our lakes and rivers will not be protected under the new act, which will be passed soon.

This means that the Saint-François and Magog rivers, which are in my riding, will no longer be protected by this legislation. People in Sherbrooke have reacted negatively to these changes. People want to know what the long-term effects will be.

In the old days, projects that could affect navigation and water bodies required the minister's approval. From now on, projects such as pipelines will not require approval. Maybe the Conservatives are trying to make sure that major pipeline projects can go ahead with no environmental restrictions whatsoever. Pipelines will be laid under, over or even along rivers.

We could also talk about major energy and power line projects that pass over rivers. In Sherbrooke, people were worried about the negative repercussions that such projects could have on lakes and rivers and the potential dangers they could pose. If a pipeline is allowed to pass over a river, needless to say, a leak would have a negative impact on the environment.

Lastly, I would like to quote someone who talked about the bill and whose name might ring a bell with the Conservatives. Warren Everson, senior vice-president of policy at the Canadian Chamber of Commerce, had this to say: “The budget 2012 decision to cut a quarter of the SR and ED tax credit was, in our opinion, a step in the wrong direction.”

I talked about this earlier in my speech and I would like to emphasize the point: even the Canadian Chamber of Commerce opposes this decision. I therefore hope the Conservatives will come to their senses and support our proposals.

Unfortunately, I know that we are almost out of time, since the final vote will be held tomorrow. Perhaps the Senate will take a different approach and a more enlightened view in order to improve certain parts of the bill.

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

Mr. Speaker, I thank my hon. colleagues for their reception. I am pleased to rise on behalf of the people of my riding, Sherbrooke, to speak out against Bill C-45. This is especially true considering that I also voted against a time allocation motion. I am pleased to rise here to oppose the budget put forward by this government, which is incapable of managing public funds and our economy.

I would like to elaborate on several matters. Since the bill is 450 pages long, I could address any number of subjects, many of which were not even mentioned in the budget presented in March. So when the Conservatives say that everything in today's budget reflects what was in the budget document in March, that is completely false.

This is another massive omnibus bill that makes changes to many laws. Once again, the Conservatives are trying to rush their legislative measures through Parliament without giving Canadians and their MPs a chance to examine those measures carefully.

The Conservatives say that jobs are being created. However, with this budget, we are talking about a loss of 43,000 Canadian jobs, as pointed out by the Parliamentary Budget Officer, who analyzed the number of jobs that would be lost as a result of the Conservatives' measures. They are talking about job creation, but I have a hard time believing it, since they are eliminating 19,000 jobs in the public service. This is quite simply a job-cutting budget.

The government is also severely weakening environmental regulations—

The House resumed from November 29 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 (with amendment) from the committee, and of the motions in Group No. 1.

Bill C-45—Time Allocation

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

Mr. Speaker, I must say I was surprised to hear my friend, the Minister of State for Finance claim that everything in Bill C-45 and Bill C-38 was found in the budget. I think that has been pretty thoroughly disproven.

I would be interested to know on what page of the budget we can find the efforts in Bill C-45 to create barriers to tourism in Canada. That will hurt our economy and hurt our tourism sector. I can see no excuse whatsoever for bringing this forward without adequate consultation. The idea of having an international automated list for tourists from Europe, Australia or New Zealand who want to come to Canada is an added barrier in a sector that is currently struggling.

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

Mr. Speaker, people at home are truly worried. They are worried about what is in the budget and especially about the attitude of this government, which amended 70 acts with Bill C-38 and will amend 62 acts, without debate, with Bill C-45.

My question is for the minister. In light of the Conservatives' strategy, will they one day introduce a bill to automatically amend 200 or 300 laws, and then bid farewell to Parliament and parliamentarians for the rest of the year?

That is the kind of distortion of democracy we are seeing. People at home are worried about the Conservatives' brand of democracy.

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

Mr. Speaker, I move that, notwithstanding any Standing Order or usual practice of the House, Bill C-45, in clause 321, be amended by adding after line 13 on page 291 the following: (2.1) The addition of the navigable waters listed below is deemed to be in the public interest and the governor in council shall, by regulation, as soon as is reasonably practicable after the day on which this act receives royal assent, add those navigable waters to the schedule, including, with respect to lakes, their approximate location in latitude and longitude and, with respect to rivers and riverines, the approximate downstream and upstream points, as well as a description of each of those lakes, rivers and riverines, and where more than one lake, river or riverine exists with the same name indicated in the list below, the governor in council shall select one to be added, namely:

The list is short: Ross Lake, Giauque Lake, La Loche Lakes, McCrea Lake, Bewick Lake, Broken Dish Lake, Sam McRae Lake, Magrum Lake, Winter Lake, Lac à Jacques, Greyling Lake, Basler Lake, Rummy Lake, Tatti Lake and Yellowknife River.

Points of Order

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

Mr. Speaker, on that point of order, I would point out the motion being made was made without notice and it requires an extraordinary remedy in the circumstances of unanimous consent of this House. Thus, at any point when it is clear that there is no unanimous consent, I think it is appropriate that be terminated.

I would like to move 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 five further hours shall be allotted to the consideration of the report stage, and one sitting day shall be allotted to the third reading stage of the said bill, and at the expiry of the time provided for the consideration at report stage, and at 15 minutes before the expiry of the time provided for government business on the day allotted to consideration of the third 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 disposable of the stage of the bill then under consideration shall be put forthwith and successively without further debate or amendment.