This bill is from the 41st Parliament, 1st session, which ended in September 2013.
Jim Flaherty Conservative
This bill has received Royal Assent and is now law.
This is from the published bill.
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.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-45s:
Jobs and Growth Act, 2012Government Orders
The Acting Speaker Barry Devolin
In response to the member for Saanich—Gulf Islands, it is my understanding that the minister was merely tabling a document. This is not the answer that is being tabled. Ministers may rise at any time in the House to simply table a document. The answer that will be required will have to be tabled in the appropriate procedure at some point in the future.
Questions and comments. The hon. member for Sherbrooke.
Pierre-Luc Dusseault NDP Sherbrooke, QC
Mr. Speaker, I have a question for my colleague who is a member of this government, probably the most incompetent government in the history of Canada. In fact, it has run up the largest deficit in Canada's fiscal history and the largest trade deficit in Canadian history. Some 330,000 more people are unemployed today than before the recession.
I am therefore pleased to ask this question of the member, who talked about research and development. This government has made cuts to the scientific research and experimental development program, cuts that have been condemned by the Canadian Chamber of Commerce.
Can my colleague comment on the government's decision to go ahead with those cuts to research and development? Why does he think his party did that?
Laurie Hawn Conservative Edmonton Centre, AB
Mr. Speaker, with respect to deficits and so on, our deficit is the smallest in the developed world with respect to the GDP, which is the true measure of a deficit. Of course, the number is larger than it was 50 years ago but, with inflation, that is what one would expect.
When we talk about trade deficits, part of that problem is Canada's strength. If our trading partners are weaker and not buying, that will generate some trade deficit. It is actually a measure of our strength. We are working hard with our partners in the EU, U.S. and other places to encourage them to increase their economic output and that will balance out in the longer term.
With respect to R and D, our government is focusing our R and D dollars on where they will do the most good.
If the member wants to talk about chambers of commerce, the biggest chamber of commerce in the country is in Edmonton. Believe it or not, it is even bigger than in Toronto or Montreal. I meet with it on, not quite on a daily basis but very often, and it is very impressed and appreciative of the focus that this government is putting on R and D in the places where it will do the most good.
We are not here to sprinkle a few droplets everywhere. We are here to focus on things that will matter most to Canadians, to the Canadian economy and to jobs and long-term prosperity.
Ted Hsu Liberal Kingston and the Islands, ON
Mr. Speaker, Canada's investment in business research and development support was concentrated in the scientific research and experimental development tax credit but we will be cutting that eventually by something like $500 million a year. If we look at the announced spending that is supposed to come from those cuts to the SR and ED tax credit, they do not add up anywhere near $500 million.
A lot of companies in my riding and elsewhere rely on that tax credit. These are the innovative companies that are creating jobs that use that tax credit to develop the innovations that make Canadian workers more productive.
I would ask my hon. colleague for Edmonton Centre whether his constituents in the oil and gas technology sector who heavily rely on the eligibility for capital expenditures for the scientific research and experimental tax credit would be happy. Why is he increasing taxes on his constituents in the oil and gas technology sector by cutting the tax credit for SR and ED?
Laurie Hawn Conservative Edmonton Centre, AB
Mr. Speaker, I find it a bit rich when people stand up and dump on Alberta MPs, Alberta and the Canadian government in general for what they consider to be too much support for the oil and gas business. I will give the member credit for not being one of those people.
The simple fact is that we are in partnership with Canadian industry, certainly the oil and gas industry which is driving the economy of the country at this point, and I think my hon. colleague realizes that. The economic progress is a work in progress. We are going to work with all sectors of the Canadian economy and all technology sectors, as we have been doing, as I laid out in my remarks.
Nothing stays the same forever. We need to focus down the road. We are not focusing on tomorrow necessarily. We want to take care of the short-term needs but we also want to look down the road 20 to 40 years to see what Canada and our economy will look like to ensure we are planning properly for that day.
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.
Pierre-Luc Dusseault NDP Sherbrooke, QC
Mr. Speaker, I am very pleased to ask my colleague a question.
The government is constantly telling us that everything in the budget implementation bill was mentioned in the budget that was tabled last March. However, we are well aware that a number of things that now appear in Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures—because there was also Bill C-38, An Act to implement certain provisions of the budget—were not mentioned in the budget tabled in this House last March by the Minister of Finance.
The Conservatives are therefore tabling two 400-page bills proposing measures that were not even mentioned in their budget last March. Does my colleague have any comments to make about that?
Kirsty Duncan Liberal Etobicoke North, ON
Mr. Speaker, my hon. colleague is correct, and I mentioned the surprises in my speech.
Canada's leading environmental organizations, including the Canadian Parks and Wilderness Society, the David Suzuki Foundation, Ecojustice, Pembina Institute, Sierra Club, Canada West Coast Environmental Law, World Wildlife Federation Canada and others issued a joint statement decrying the fact that once again the federal government was making significant changes to environmental legislation without proper democratic debate.
When the government came to power, it inherited a legacy of balanced budgets but soon plunged the country into deficit before the recession every hit. It is absolutely negligent and shameful that the government would now continue to gut environmental safeguards in order to fast-track development and balance its books.
Because the government did not campaign in the last election on gutting environmental protection, Canadians should rise up, have their voices heard and stop the government's destruction of laws that protect the environment and the health and safety of Canadians, our communities, our economy and our livelihood.
Mike Wallace Conservative Burlington, ON
Mr. Speaker, to make it clear for the viewing public who are listening to this, the bill is 440 pages. Exactly half of that is in English and the other half is in French. The member knows that what is said in English is said exactly the same in French. I do not know whether they know that.
Of the 220 pages, which took me two and a half hours to read, is my colleague not happy with any of it or are there parts she is happy with and would vote for? Whether it is 5 pages or 220 pages, she would not be supporting us anyway.
Kirsty Duncan Liberal Etobicoke North, ON
Mr. Speaker, omnibus bills are anti-democratic and draconian.
I will detail where we have had cuts to the environment. We have had announced cuts of 700 positions to Environment Canada, cuts of another 200 positions to Environment Canada, the gutting of environmental legislation that has protected the health and safety of Canadians for the last 50 years, and the weakening of species at risk laws and water laws. We will go from protecting 32,000 lakes down to 97 lakes.
I will talk more about Bill C-45. West Coast Environmental Law said:
giving industry the option to request that their existing commitments to protect fish habitat be amended or cancelled, or that they be let off the hook for promised compensation for lost or damaged habitat;
eliminating the Hazardous Materials Information Review Commission; and,
needlessly tinkering with the Fisheries Act and the Canadian Environmental Assessment Act 2012....
We heard from a former Conservative fisheries minister earlier on Bill C-38 who said, “They are totally watering down and emasculating the Fisheries Act. They are making a Swiss cheese of it”. At the subcommittee, he said, “The bottom line is to take your time and do it right. To bundle all this into a budget bill, with all its other facets, is not becoming of a Conservative government, period”.
Harold Albrecht Conservative Kitchener—Conestoga, ON
Mr. Speaker, I rise in support of Bill C-45, jobs and growth act, 2012, because the measures in this bill are very important to my constituents in the riding of Kitchener—Conestoga.
Our economic action plan was built on a long-term plan called Advantage Canada. This plan has five major themes, and even through these difficult times we have advanced all five of these themes.
First is the tax advantage. Business taxes have been cut. This makes a huge difference for businesses in my riding who want to expand and provide opportunities for more jobs, which in turn makes a big difference for families in my riding. Since the Conservative government came to power in 2006, personal taxes are roughly $3,100 less for the average Canadian family of four. Tax freedom day, which in 2005 was June 26, has now been moved back to June 11. Again, these are crucial movements for families who are trying to raise young children.
Second is the fiscal advantage. We are on track to eliminate our deficit in the medium term.
Third is the entrepreneurial advantage. Canada's entrepreneurial advantage will reduce unnecessary regulation and red tape and lower taxes to unlock business investment. This idea of having one project and one review is so important. For too long, we have had all kinds of duplication on environmental assessments that has slowed down the process and added increased cost to businesses that are trying to expand. Also, the adoption of the one-for-one commitment, to reduce a regulation every time a new regulation is added, is an important aspect of cutting red tape for business.
Fourth is the knowledge advantage. Canada's knowledge advantage will create the best educated, most skilled and most flexible workforce in the world. The knowledge infrastructure program, or KIP, has been amazingly important in my riding of Kitchener—Conestoga. Conestoga College alone has benefited from investment from this program, which has allowed it to expand its engineering, health science and food processing faculties to increase its ability to add value-added products for our farming community.
Fifth, and finally, is the infrastructure advantage. Canada's infrastructure advantage will create modern world-class infrastructure to ensure the seamless flow of people, goods and services across our roads and bridges, through our ports and gateways and by way of our public transit. Investment in the rapid transit system in the Waterloo region and the Highway 8 bridge expansion and widening are increasing our ability to move goods and people through our region, which is also an amazing advantage for our businesses.
All five of these pillars have placed Canada in an enviable position relative to our global partners. However, the global scene is very uncertain. We are an exporting nation, so it is clear that our recovery cannot be complete until the rest of the world sorts out its fiscal and budgetary issues. Our manufacturers and farmers cannot sell their products until the rest of the world starts buying again. Therefore, while we are well positioned to take advantage of the eventual recovery, we cannot ourselves make the recovery happen.
While we are an island of stability in Canada, we do sit in a sea of uncertainty. Our role, as the government, is to ensure that the rising tides of global instability do not drown our relative prosperity. The global economic environment still poses great risks to governments, businesses, individuals and families.
I would now like to focus on a few of the issues in my region of Waterloo. My home in the Waterloo region is known for its entrepreneurial spirit. It is known for citizens who embrace risk, recognizing that risk is the door to opportunity. From the farmers whose livelihood depends on the whims of weather, to the high-tech entrepreneurs who risk their savings and sweat equity for the belief in their vision, Waterloo region's success in these troubled times is driven by the willingness of its citizens to believe in their ability to succeed and move ahead with confidence, even in the face of very great risk.
I would also like to summarize a few of Waterloo region's investments, by way of the economic action plan, in education and community and capacity building. First of all, on education, Conestoga College expanded its schools of engineering and health sciences and also instituted a brand new institute for food processing technology. The food processing technology faculty is the first of its kind to serve Ontario's second largest industry. We are known for our primary agricultural products, but I think it is important that we also recognize the importance of providing value-added products through the food processing industry. Also, there is the University of Waterloo and its Quantum-Nano Centre, new buildings with 21st century facilities for environmental studies and the Balsillie School of International Affairs.
As it relates to economic action plan investments in our communities, we have invested in new or renovated recreational facilities in Wilmot, Wellesley, St. Agatha, Breslau, New Dundee, and Kitchener and the McLennan Park and Sportsworld arena.
We have invested in social housing units across the Waterloo region, many of them being renovated and upgraded. Our airport, a crucial engine of economic growth, has made numerous improvements to enhance safety and capacity, thanks to our government's emphasis on regional airports. Our airport is a stellar example of federal investments that improve safety, efficiency and capacity, and has led to increased trade, investment and employment. We have seen our worst bridges repaired, our worst roads resurfaced and our waste water systems renewed.
As it relates to capacity building in our economic action plan funding, Canada's economic action plan founded FedDev Ontario so that southern Ontario is no longer taken for granted as the only region in Canada without an economic development agency. FedDev Ontario has built programs designed to develop the capacity of southern Ontario's unique industries. These loans have allowed businesses across my riding, from high-tech companies like Miovision, to farm gate businesses like Conestoga Meat Packers, to build the capacity they need to capture new global markets.
This is incredibly important. Instead of seeing viable businesses fail, as other countries have, because of a temporary downturn, Waterloo region's businesses are prepared to capture the opportunities that will emerge when the rest of the world adopts this government's approach of stable banks, prudent budgeting and low taxation.
All of these investments have made our community a better place to live and to develop talent. We are a more prosperous community, a better builder of small and medium size businesses and a better place to raise a family. Going forward, the jobs and growth act promises to further enhance the lives of those I am privileged to represent. The bill's passage will conclude the implementation of Canada's economic action plan 2012 and contains measures that are essential to our continued prosperity.
I would like to now focus on some of the opportunities for business and families and individuals that Bill C-45 contains as it relates to my area. First of all, there is the bridge to Detroit. When I first ran for office, in 2005, Waterloo region's business leaders told me that increasing capacity at the border crossings at Detroit was a high priority. There is over $130 billion of trade that crosses between Windsor and Detroit. That is almost 30% of all Canada-U.S. trade.
Windsor-Detroit sees more than 8,000 trucks and 68,000 travellers cross that border every day. Over the next 30 years, all forecasts say that this traffic will increase. Truck traffic is expected to triple, while other vehicle traffic will double. The solution is found in Bill C-45. It will enable the government to fund the construction of the solution to these problems. The new Detroit River international crossing would reduce congestion on both sides of the border, support the creation of jobs along the Windsor-Quebec City corridor, particularly in my riding of Kitchener—Conestoga, increase the competitiveness of the entire integrated North American manufacturing sector, and provide thousands of construction jobs in Windsor and Detroit, two communities that have been hardest hit by the uncertainty of global markets.
Another important initiative in Bill C-45 is the small business EI premium refund. I have referenced the needs of small businesses several times already. In high tech alone, our area enjoys one new high-tech startup business every day. Small and medium size businesses will provide the bulk of jobs created going forward. It makes sense to target hiring incentives to them. We need to provide incentives for them to hire now rather than later, when the economy has already improved.
The pooled registered pension plans are important for small and medium size enterprises because they have trouble attracting and retaining critical talent. One reason for this is that large firms are able to offer much more attractive pension plans, which smaller companies simply cannot afford to administer. These PRPPs will allow small business owners to provide pensions without the significant administrative burdens and responsibilities associated with traditional pension plans.
There are so many good initiatives in the bill, but I will have time to highlight them all. I would urge my colleagues, especially on the other side of the House, to support this bill. It will make a big difference for families in their ridings.
Pierre-Luc Dusseault NDP Sherbrooke, QC
Mr. Speaker, I am pleased to have an opportunity to ask my Conservative government colleague a question about the hiring tax credit for small business that he just mentioned. This measure applies to the 2012 tax year, the tax year that is ending in a few weeks, as we know.
We agree with this suggestion. It was even one of our main proposals during the election campaign.
Could he comment on the fact that this tax credit, granted by the Conservatives, will only apply to the 2012 tax year? In fact, hardly anyone will have a chance to take advantage of it because the tax year ends in just a few weeks.
Harold Albrecht Conservative Kitchener—Conestoga, ON
Mr. Speaker, again, when it comes to taxes, it is this side of the House that has consistently reduced taxes for families and businesses through the past six years of being in government.
On the other side, all we hear, day after day, is to continue to increase taxes, even going so far as putting it right in their platform, on page 4, to include a $21 billion carbon tax, which we know would not only affect the cost of everything but would have a huge damaging effect on small and medium-sized enterprises.
Ted Hsu Liberal Kingston and the Islands, ON
Mr. Speaker, my hon. colleague from Kitchener—Conestoga mentioned health sciences expansion and an expansion in educational facilities for students.
However, from talking to a number of people I know that one of the bottlenecks for getting people employed is the lack of clinical placements for people working in health sciences technology. Does the budget do anything for that?
On the subject of taxes, I would also ask my hon. colleague, who represents an area where a lot of innovation is happening, why his government is so willing to increase taxes on innovative companies by cutting the scientific research and experimental development tax credit?
Harold Albrecht Conservative Kitchener—Conestoga, ON
Mr. Speaker, I think I am going to start with the second question first.
This question has been raised many times throughout the day today. I think there is a lack of understanding of what Bill C-45 would do in totality. It is easy to focus on one little area and continue to ask questions about that area.
What my colleague does not understand is that our government has made some significant changes to how small businesses can operate their business. For example, we have removed many bureaucratic barriers for attracting foreign investment into small business. We are also adopting new programs, like the digital technology adoption projects. We are cutting red tape for small business.
Finally, on the last point of encouraging partnerships with colleges, what we see now is many of our colleges are partnering with industry. Industry brings an issue to them to help them solve it, so the engineers are working in partnership with industry. In this way, we have increased collaboration and we are actually addressing the problems that industry has instead of doing some theoretical studies about what a particular need might be.
These are all positive movements going forward.