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

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 5, 2012 Passed That the Bill be now read a third time and do pass.
Dec. 4, 2012 Passed That Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Schedule 1.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 515.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 464.
Dec. 4, 2012 Failed That Bill C-45, in Clause 437, be amended by deleting lines 25 to 34 on page 341.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 433.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 425.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 411.
Dec. 4, 2012 Failed That Bill C-45, in Clause 369, be amended by replacing lines 37 and 38 on page 313 with the following: “terminal elevator shall submit grain received into the elevator for an official weighing, in a manner authorized by the”
Dec. 4, 2012 Failed That Bill C-45, in Clause 362, be amended by replacing line 16 on page 310 with the following: “provide a security, in the form of a bond, for the purpose of”
Dec. 4, 2012 Failed That Bill C-45, in Clause 358, be amended by replacing line 8 on page 309 with the following: “reinspection of the grain, to the grain appeal tribunal for the Division or the chief grain”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 351.
Dec. 4, 2012 Failed That Bill C-45, in Clause 317, be amended by adding after line 22 on page 277 the following: “(7) Section 2 of the Act is renumbered as subsection 2(1) and is amended by adding the following: (2) For the purposes of this Act, when considering if a decision is in the public interest, the Minister shall take into account, as primary consideration, whether it would protect the public right of navigation, including the exercise, safeguard and promotion of that right.”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 316.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 315.
Dec. 4, 2012 Failed That Bill C-45, in Clause 313, be amended by deleting lines 15 to 24 on page 274.
Dec. 4, 2012 Failed That Bill C-45, in Clause 308, be amended by replacing line 29 on page 272 with the following: “national in respect of whom there is reason to believe that he or she poses a specific and credible security threat must, before entering Canada, apply”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 308.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 307.
Dec. 4, 2012 Failed That Bill C-45, in Clause 302, be amended by replacing lines 4 to 8 on page 271 with the following: “9. (1) Except in instances where a province is pursuing any of the legitimate objectives referred to in Article 404 of the Agreement, namely public security and safety, public order, protection of human, animal or plant life or health, protection of the environment, consumer protection, protection of the health, safety and well-being of workers, and affirmative action programs for disadvantaged groups, the Governor in Council may, by order, for the purpose of suspending benefits of equivalent effect or imposing retaliatory measures of equivalent effect in respect of a province under Article 1709 of the Agreement, do any”
Dec. 4, 2012 Failed That Bill C-45, in Clause 279, be amended (a) by replacing line 3 on page 265 with the following: “47. (1) The Minister may, following public consultation, designate any” (b) by replacing lines 8 to 15 on page 265 with the following: “specified in this Act, exercise the powers and perform the”
Dec. 4, 2012 Failed That Bill C-45, in Clause 274, be amended by adding after line 38 on page 262 the following: “(3) The council shall, within four months after the end of each year, submit to the Minister a report on the activities of the council during that year. (4) The Minister shall cause a copy of the report to be laid before each House of Parliament within 15 sitting days after the day on which the Minister receives it. (5) The Minister shall send a copy of the report to the lieutenant governor of each province immediately after a copy of the report is last laid before either House. (6) For the purpose of this section, “sitting day” means a day on which either House of Parliament sits.”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 269.
Dec. 4, 2012 Failed That Bill C-45, in Clause 266, be amended by adding after line 6 on page 260 the following: “12.2 Within six months after the day on which regulations made under subsection 12.1(8) come into force, the impact of section 12.1 and those regulations on privacy rights must be assessed and reported to each House of Parliament.”
Dec. 4, 2012 Failed That Bill C-45, in Clause 266, be amended by adding after line 6 on page 260 the following: “(9) For greater certainty, any prescribed information given to the Agency in relation to any persons on board or expected to be on board a conveyance shall be subject to the Privacy Act.”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 264.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 233.
Dec. 4, 2012 Failed That Bill C-45, in Clause 223, be amended by deleting lines 16 to 26 on page 239.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 219.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 206.
Dec. 4, 2012 Failed That Bill C-45, in Clause 179, be amended by adding after line 17 on page 208 the following: “(3) The exemption set out in subsection (1) applies if the person who proposes the construction of the bridge, parkway or any related work establishes, in relation to any work, undertaking or activity for the purpose of that construction, that the construction will not present a risk of net negative environmental impact.”
Dec. 4, 2012 Failed That Bill C-45, in Clause 179, be amended by adding after line 7 on page 208 the following: “(3) The exemptions set out in subsection (1) apply if the person who proposes the construction of the bridge, parkway or any related work establishes, in relation to any work, undertaking or activity for the purpose of the construction of the bridge, parkway or any related work, that the work, undertaking or activity ( a) will not impede navigation; ( b) will not cause destruction of fish or harmful alteration, disruption or destruction of fish habitat within the meaning of the Fisheries Act; and ( c) will not jeopardize the survival or recovery of a species listed in the Species at Risk Act.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 179.
Dec. 4, 2012 Failed That Bill C-45, in Clause 175, be amended by replacing lines 23 to 27 on page 204 with the following: “or any of its members in accordance with any treaty or land claims agreement or, consistent with inherent Aboriginal right, harvested by an Aboriginal organization or any of its members for traditional uses, including for food, social or ceremonial purposes;”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 173.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 166.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 156.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 99.
Dec. 4, 2012 Failed That Bill C-45, in Clause 27, be amended by replacing line 22 on page 38 to line 11 on page 39 with the following: “scribed offshore region, and that is acquired after March 28, 2012, 10%.”
Dec. 4, 2012 Failed That Bill C-45, in Clause 27, be amended by deleting line 14 on page 38 to line 11 on page 39.
Dec. 4, 2012 Failed That Bill C-45, in Clause 27, be amended by replacing line 17 on page 35 with the following: “( a.1) 19% of the amount by which the”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 3.
Dec. 4, 2012 Failed That Bill C-45, in Clause 62, be amended by replacing line 26 on page 134 with the following: “( b) 65% multiplied by the proportion that”
Dec. 4, 2012 Failed That Bill C-45, in Clause 9, be amended by replacing line 3 on page 15 with the following: “before 2020, or”
Dec. 4, 2012 Failed That Bill C-45, in Clause 9, be amended by deleting lines 12 and 13 on page 14.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 1.
Dec. 3, 2012 Passed 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 at 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 fifteen minutes before the expiry of the time provided for government business on the day allotted to the 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 disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 30, 2012 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Oct. 25, 2012 Passed That, in relation to Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:15 p.m.
See context

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Mr. Speaker, what is proposed in Bill C-45 will create a two-tier system for pension plans, which is obviously going to affect young people significantly. There are also all sorts of measures that will undermine the protection of the environment.

The hon. member has already mentioned that this will greatly affect her generation. As our leader often says, we are passing on a debt burden to future generations, whether in the form of environmental debt, economic debt, and so on.

Could the hon. member tell us about the problems that this could create for young people, who already do not trust politicians? How will they be affected overall?

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:15 p.m.
See context

NDP

Niki Ashton NDP Churchill, MB

Mr. Speaker, I would like to thank the hon. member for her very relevant question.

It is incredible to see that the government is so irresponsible that it ignores the devastating impact of this bill and of Bill C-38 on my generation.

The hon. member made a connection with young people's lack of confidence in politicians. It is true that they already do not have much trust. Fortunately, our caucus represents the youth of Canada, given its many young members of Parliament and the issues that they bring forward.

However, the fact remains that this government is shirking its major responsibility for our country's future.

We see that an entire generation will not have good pension plans, will not be able to afford the soaring costs of housing, for example, will not be able to pay off student debts and will not have access to good jobs in the public service or in general. This reality is scary, showing us an absolutely incredible side of the Government of Canada. Yet this government is supporting this reality instead of demonstrating a leadership role in building a better future for Canadians.

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:15 p.m.
See context

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Mr. Speaker, it is a great privilege and a delight to speak to Bill C-45, the final implementation of the budget act, the jobs and growth act. It is titled, “jobs, growth and long-term prosperity”. The reason we chose that title is that the focus of this bill is for just that: for long-term prosperity, for jobs and for growth.

We have heard the numbers countless times. On our side of the House, we are reminded that since this government has been in office and since that horrendous crash in 2008-09 when so many jobs were wiped out, not only here in Canada but across the world, there has been an increase of 820,000 net new jobs. That is an outstanding number.

We also hear the statistics that we rank among the highest in the G8 nations, that we are in the best fiscal position and that we are among the highest in growth in G8 nations.

That does not say there is tremendous growth. We know that in the world today there has been an enormous slowdown. Yet repeatedly, for the last number of years, Canada has managed to hold a position and to build some strength in that position, as well.

We also know that when governments get it right, when governments help create healthy climates, jobs are created. That is the main focus of this government and the reason we have focused so much on those areas. We do that by, first, listening.

I have the privilege to serve on the finance committee. We are involved in budget consultations at this point. We meet every night, Monday, Tuesday, Wednesday and Thursday. We meet from 3:30 p.m. to 6:30 p.m. We ask people and groups from right across this country to come in to speak to us and to tell us what they feel this government has to do to be successful, to grow those jobs, to get those people back to work, to help young Canadians who are coming out schools, be they high schools, colleges or universities, to get jobs. We listen to these groups and these people.

We listen to industry. Again, I was fortunate, in the first four years I served in this House, to serve on the industry committee. In the industry committee, again, we invite industry; we invite labour; we invite all these groups to tell us just what we can do as a government to make things work.

It is people who create jobs. It is businesses that create jobs. Governments create healthy atmospheres.

We listen to business groups, we listen to labour and we listen to the experts. We learned great lessons from the member for Lanark—Frontenac—Lennox and Addington last Friday. He gave us a little essay in the house on Keynesian policies and how many governments today—most governments in the western world since before World War II—embarked upon that kind of plane where governments were told they need to spend to stimulate the economy. I think most of us would probably agree with that, but we have had a bit of runaway Keynesianism.

There was another school of thought at that time, the Austrian school, the Mises, that taught it is the responsibility of governments to maintain and make sure their books are in order. We did, and we do what the experts suggest we do. The first thing they tell us, repeatedly, is to get government spending under control, eliminate the deficit.

It is a fact that this government is concentrating on lowering government spending. We do not agree on both sides of the House. Often times, we hear it is the role of government to spend more, to spend our way out of a recession or that, rather than cut spending, maybe we ought to raise taxes.

We hear repeatedly, not just from businesses—obviously businesses do not want to be taxed and corporations do not want to be taxed—but we hear from the experts, the economists, that it works in reverse and ultimately when businesses and corporations are taxed, they take that cost and add it to the cost of products. Then we become uncompetitive in the world. Therefore, our goal on this side of the House is to make sure tax level does not become a burden and to make sure we do not impede growth.

One of the other things we heard repeatedly was to reduce red tape. Red tape is something that stagnates growth. It causes frustration in the marketplace. We have to eliminate those things that impede growth. I have spoken about a number of those areas, one of them being red tape. However, there are other things that governments do, oftentimes with the right intention, but we find out down the road that they cause more problems than they solve. Businesses asked that we not overburden them with taxes and regulations and that we open up the marketplace.

Canada is a trading nation. We are a nation that does a pretty good job at producing certain things. We are strong in extraction. We have a very rich resource sector. We are strong in service sectors, telecommunications and banking, and we do a good job in financing. We are able to export those to other countries. However, oftentimes there are trade barriers that pop up and make those things difficult for our companies. Therefore, our Minister of Trade has been extremely busy on a trade mission.

Let me read something he said:

In less than six years, [we have]...concluded trade agreements with nine countries: Colombia, Honduras, Jordan, Panama, Peru, and the European Free Trade Association member states of Iceland, Liechtenstein, Norway and Switzerland. Canada has also begun deepening trade and investment ties with the largest markets in the world, including the European Union, India and Japan.

The European Union has 500 million people.

Most recently, we announced in October that Canada has formally joined the trans-Pacific partnership, the TPP trade negotiations. This is a trade agreement under negotiation by 11 countries, which now include Canada and Mexico. The other members include Australia, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam.

Canadians can see that we are opening up these opportunities. This gives our companies, our people, an opportunity.

The Speaker is telling me I am running out of time, so I am going to talk about what is really near and dear to me, and that is the bridge to strengthening trade act. We have inserted a provision in the omnibus bill that allows for a bridge across to the United States in my neck of the woods, Chatham-Kent—Essex. Why this is so important is that we are a trading nation. The town of Leamington, which is part of my riding, has an enormous greenhouse industry. Two hundred trucks leave Leamington greenhouses bound for the U.S. every day. More than 70% of the greenhouse industry goes to the United States. There are 223 greenhouse operations in Ontario, and Leamington is home to the largest concentration of greenhouses. There are over 1,500 acres under cover. They tell me that one acre is equal to ten times the production on normal land. It is imperative that those goods get across to the United States. We need that crossing. Therefore, we have put a provision in the budget that would allow for its speedy construction.

I was also very privileged to be able to announce the gateway, the section of HIghway 401 to the bridge. Last year in August the government announced we would spend $1 billion. A very important part of the budget is the trade issue. It is very important in my riding.

I encourage the opposition to look at those great benefits, not only for the country but for areas like Chatham-Kent—Essex, where it is so important that we continue this trade.

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:25 p.m.
See context

NDP

Lysane Blanchette-Lamothe NDP Pierrefonds—Dollard, QC

Mr. Speaker, my colleague talked about job creation, which is at stake in Bill C-45. I would like to come back to that, because my colleague did not go into detail on the matter.

In the Auditor General's most recent report, we saw that the Minister of Finance's decisions were not backed by the figures in a report on long-term fiscal sustainability. In other words, the Minister of Finance is making decisions without truly knowing what impact these decisions will have on public finances over the long term, which is concerning.

I would like to know whether my colleague knows what long-term effects the elimination of tax credits for research and development will have, for example. In my riding, there is a company that just cut 300 jobs. This company was very active in research and development, which is why this question came to mind.

Does my colleague know the long-term effects of a decrease in tax credits for research and development? If so, what is he using to back his long-term predictions?

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:30 p.m.
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Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Mr. Speaker, that is an area of real concern as well.

I have served on both the finance and the industry committee. One of the studies that was produced by the industry committee back in 2007 touched on those areas. The Liberals were in opposition at the time and the committee submitted an unanimous report to the House.

One of the areas of great concern is how we can best use research money and how to make that effective. This is a constant struggle. This is something that we as a government, and members on all sides of the House when we serve in committee, try to get right. The objective is to, first of all, have good research because we all benefit from good research. Second is to make sure that the research that is done will provide jobs. The result will be stronger economies. I think we are—

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:30 p.m.
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Conservative

The Acting Speaker Conservative Bruce Stanton

Order. I do not mean to cut the hon. member off but we have to leave enough time for other members to ask questions.

The hon. Parliamentary Secretary to the Minister of National Revenue.

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October 29th, 2012 / 12:30 p.m.
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Kamloops—Thompson—Cariboo B.C.

Conservative

Cathy McLeod ConservativeParliamentary Secretary to the Minister of National Revenue

Mr. Speaker, I really appreciate my colleague from Chatham-Kent—Essex telling us how important it is for the economy to move that bridge forward in a timely way.

I would like to focus my question on the Navigable Waters Protection Act, which the opposition for some reason has tried to link to the environment. It is a 100-year-old piece of legislation that does not speak to the environment at all. It is really about navigation on our waterways.

Why is this another important feature of this budget implementation act and how will it help long-term growth and prosperity?

Jobs and Growth Act, 2012Government Orders

October 29th, 2012 / 12:30 p.m.
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Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Mr. Speaker, the Parliamentary Secretary to the Minister of National Revenue serves on finance committee as well and she does an outstanding job.

Ten minutes goes by so quickly, but a point that I was trying to get to in my speech was that the navigable waters act is very important to my riding of Chatham-Kent—Essex, as it is I am sure in her riding as well. We have flat land in Chatham-Kent—Essex. It does not get any flatter and we have many drains and ditches. I am hearing from cities, townships and counties how the old law that the member referred to is making it difficult to put in things as simple as a culvert to cross a ditch.

We are doing things that need to be done. We are doing things that make sense. As a result, we should have a strong impact on our economy. That is precisely what we are trying to do with the legislation.

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October 29th, 2012 / 12:30 p.m.
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NDP

Lysane Blanchette-Lamothe NDP Pierrefonds—Dollard, QC

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-45. I would like to open my remarks by joining those who spoke before me in saying that I do not agree with the way we are proceeding with Bill C-45, which is a mammoth omnibus bill. Call it what you will, but the fact remains that this bill is more than 400 pages long and has various parts dealing with different areas. Not only are we restricted to having only one debate, but we also have only one opportunity to vote on a massive bill containing a wide range of measures. For a party that boasted that it would be transparent and would stand up for democracy, this makes no sense. Frankly, we are wondering what has become of those lofty ideals today.

As a parliamentarian, I have to vote only once. This bill has some elements that I agree with and that I would be happy to vote in favour of. Unfortunately, it also has a number of incomplete and potentially harmful features that need major amendments or that should not be there in the first place. I am in a position where I have to vote for or against a wide range of measures and amendments. I think this way of doing things is neither transparent nor democratic.

A number of hon. members have asked us why we are complaining, because everything that is in Bill C-45 was already announced in the budget. I would like to set the record straight and say that that is not true. Not all the measures in Bill C-45 were in the budget. Let us stop lying to Canadians. That is shameful. For instance, one amendment in Bill C-45 has to do with the right of grain farmers to an appeal process. I did not find that in the main budget tabled last spring. The same goes for the Navigable Waters Protection Act.

There are things in Bill C-45 that were not clearly announced in the budget and that warrant careful consideration. Anytime we are faced with such an immense bill, there is always confusion and unexpected things.

The Liberals proposed removing the parts related to pensions from Bill C-45. If that proposal had been accepted, we would have voted in favour of the measure concerning members' pensions and the one concerning public service pensions and Canadian Forces members' pensions. With just one vote, and without any debate, we would have affected the pensions of over 450,000 Canadians.

Modifying people's pension plans without bothering to dedicate any time for consideration, debate or examination is such an insult. This shows a complete lack of respect and a negligent attitude toward democracy. The cavalier, disrespectful attitude this government is taking regarding such important issues for Canadians will undermine their confidence in our parliamentary system.

I would now like to take a closer look at one particular measure announced in Bill C-45: changing the eligibility age for public servants' retirement pensions. Anyone hired as of January 1, 2013, will receive his or her retirement pension at age 65 instead of 60. Five years is a long time; it is more than just a few weeks or a few months. This change is not really justified. The budget indicates that this measure is responsible and is important to ensuring the sustainability of the pension plan. However, those few words are by no means sufficient justification for making such a major change to the pension plan.

On what grounds is the viability of the program being determined? Perhaps there are reasonable grounds to believe the retirement age needs to be raised, but I doubt it. I will leave this open to discussion and debate. The government cannot simply declare that the viability is at risk and the age must therefore be raised; that is not enough. I want to see some figures and some studies proving that the viability is at risk at this time. I can easily draw a comparison with the changes announced to old age security.

All kinds of non-partisan expert studies show that old age security in its present form, with 65 as the age of eligibility, is sustainable in the long term. Of course we do not need complex calculations to know that costs will rise as the population ages. Old age security, a public pension program, will cost more because the proportion of seniors will be greater. Does this mean that the program is not sustainable in the long term? Not at all. Just because it will cost more does not mean that we will absolutely not be able to cover the costs. Experts' in-depth long-term analyses take into account a number of factors and unanimously confirm that old age security with 65 as the age of eligibility is a program that we can afford to keep.

On a number of occasions, the opposition has asked—as the critic for seniors, I have asked dozens of times—for the figures, studies and reports on which the government bases its claim that the viability of old age security is in jeopardy. To date, I have not seen any valid proof, or anything to justify these changes. The recent Auditor General's report clearly states that some figures and studies could have been made public to provide some indication of and information about the real reasons for changing the eligibility age for our old age security program. No figure has been published even though, in 2007, the government promised to do so and, in 2011, the Auditor General recommended that the government once again publish a report on long-term fiscal sustainability.

Furthermore, we also learned from the Auditor General's most recent report, which was released last week, that the Minister of Finance does not necessarily have all the information on the long-term impact of his decisions. He makes the decisions and then is subsequently informed by the department of the long-term impact of the decisions. Quite frankly, there is cause to be suspicious of the reasons for the changes proposed by Bill C-45 and by the Conservatives' most recent budget.

That concludes my remarks on pensions affected by Bill C-45 and the budget. I would also like to talk about another aspect related to Canadians' savings and their financial security: pooled registered pension plans.

Many experts agree that pooled registered pension plans will not enhance Canadians' financial security; rather, they will undermine it. Yes, we can do something to protect retirees' financial security. We can take meaningful steps and we can do it now if possible. The government should not introduce another savings vehicle similar to RRSPs and TFSAs. Not everyone contributes to RRSPs and TFSAs, which are savings vehicles. A whole lot of people cannot put money aside for retirement.

What are the unique advantages of a pooled registered pension plan? It will give employers the opportunity to provide a so-called pension plan—merely “so-called” because a PRPP is not a pension plan; it is a savings plan—without having to commit to anything. Employers can set up a plan that employees may contribute to if they want, which is fine, but employers do not actually have to do anything. If employers are not interested in participating, they simply do not have to. That is not a solution.

Many experts say that we have to rethink our defined benefit pension plan and that we have to protect it. That is the only thing that will put Canadians in a position to save for their retirement and allow them to count on a set amount of money when they retire. Changes are in order if we want to improve these pension plans and keep them viable. But we have to be serious about making those changes.

I could go on at length about this, but I see that my time is almost up. Nobody can cover everything in a 400-page bill in 10 minutes.

In closing, I want to say that, if the Minister of Finance thinks that austerity is prudent, he should be careful, because people must not be led to believe that the cuts he has proposed are in any way necessary. This is nothing but political rhetoric and lies, if I may say so.

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October 29th, 2012 / 12:40 p.m.
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Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

Mr. Speaker, I thank my colleague.

She spoke about old age security, which is a very important topic. She also mentioned the Auditor General's report. If I am not mistaken, this report compares the costs of maintaining the current system of retirement at the age of 65 to the costs of a system of retirement at the age of 67, as proposed by the government, which does not believe that the current system is sustainable. But the difference between the two systems represented 0.3% of the GDP. This certainly does not indicate that the current system is not viable.

Why does my colleague think that the government is telling us that the current system is not viable, when we are talking about a difference of only 0.3% of the GDP?

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October 29th, 2012 / 12:45 p.m.
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NDP

Lysane Blanchette-Lamothe NDP Pierrefonds—Dollard, QC

Mr. Speaker, I thank my colleague for picking up on what I spoke about earlier. I was saying that we can cope with Canada's aging population and maintain access to old age security at the age of 65.

Why do the Conservatives want to push that back to 67? That is an excellent question. If I knew what was going on in their heads, perhaps I would have the answer. If I had been given documents explaining why, perhaps I would have the answer.

No one can really understand why the government is pushing the age of eligibility for old age security back to 67. Why not 66 or 68? Why in 10 years? Why not in seven years? What effects will it have? And what costs will it transfer to the provinces?

Up until now, we do not have any of that information, which is completely unacceptable.

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October 29th, 2012 / 12:45 p.m.
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Conservative

Costas Menegakis Conservative Richmond Hill, ON

Mr. Speaker, could the hon. member comment on a couple of very important statistics?

The first is that Canada has the lowest debt to GDP ratio in G7 countries. It is predicted by the IMF to be a leader in the world economy over the next two years. Second, perhaps the hon. member could tell us the importance to her riding of the 820,000-some-odd jobs that have been created since Canada came out of the global economy recession in relatively good shape?

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October 29th, 2012 / 12:45 p.m.
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NDP

Lysane Blanchette-Lamothe NDP Pierrefonds—Dollard, QC

Mr. Speaker, I appreciate that the member offered up some figures, but I must point out that figures taken out of context mean nothing, because you can spin them however you want.

I could also cite the figure provided by the Parliamentary Budget Officer, who said that the loss of tens of thousands of jobs in Canada was the result of austerity measures in the Conservatives' budget.

We can keep throwing figures back and forth. I think it is false to say that the Conservatives' cuts are necessary. We are constantly being told that if we do not make these cuts, we will incur all kinds of debt and the economy will suffer. Careful. This is the same government that is depriving the federal treasury of tens of billions of dollars in useless tax credits.

Let us put things back into perspective: cuts and the budget are a matter of choice; not a matter of obligation.

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October 29th, 2012 / 12:45 p.m.
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NDP

Dan Harris NDP Scarborough Southwest, ON

Mr. Speaker, I would like to thank the hon. member for her remarks.

She talked about respect, which is a fundamental theme. Parliament and Canadians need to be respected and they need to be informed about everything that is in Canada's budget.

In addition, as a result of this second omnibus bill, parliamentarians will surely not have enough time to talk about everything that is in the budget.

I want to ask about the impact that these changes to pensions in particular would have on young people. We have a change in pensions, going from 65 to 67, and in the public sector, from 60 to 65. It would mean for young people it would take longer to get into the market because they would have to work longer and work later in life as well.

Could my colleague give us her thoughts on the impact the budget would have on young people for decades to come?

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October 29th, 2012 / 12:45 p.m.
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NDP

Lysane Blanchette-Lamothe NDP Pierrefonds—Dollard, QC

Mr. Speaker, it will be difficult to give a short answer to such a question, but I will do my best.

Indeed, the current youth unemployment rate is alarming. And what does the budget propose to solve this problem? Nothing. Instead, the budget increases the retirement age of public sector workers from 60 to 65. This measure will clearly have an impact on young people and future generations. Decisions like that should not be made just to get re-elected, but rather based on the impact that they will have on future generations.

I have a word of advice for the government. Not only would publishing long-term fiscal sustainability reports help in making the right decisions, but it would also inform people of the impact of the decisions made.