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:
Anne Minh-Thu Quach NDP Beauharnois—Salaberry, QC
Mr. Speaker, I wonder if the hon. member opposite thinks it is reasonable and responsible that, under Bill C-45, less than 1% of Canada's waterways will be protected under the Navigable Waters Protection Act, which will be called the navigation protection act from now on.
Before this bill, all waterways in Canada were automatically protected by the government, which was responsible for the common good. From now on, less than 1% of our waterways will be protected.
Chungsen Leung Conservative Willowdale, ON
Mr. Speaker, we have to distinguish between the two types of waterways. There are navigable waterways and other waterways. Navigable waterways are designed to increase commerce across Canada. Throughout our history, Canada has created navigable waterways such as the Welland Canal and the Rideau Canal system for the primary purpose of trade and commercialization in this nation.
As for natural waterways, yes, those will be protected under the Environmental Protection Act.
Kevin Lamoureux Liberal Winnipeg North, MB
Mr. Speaker, I appreciate the member's good articulation of the speaking notes from the Prime Minister's Office. However, I think he missed a couple of points.
For instance, the government, headed by the Prime Minister, has said that it wants to increase the retirement age for seniors from 65 to 67. The member missed that talking point. He also missed the one that I really like, that the Prime Minister and the government have decided to increase the number of members of Parliament when the vast majority of Canadians do not want more MPs.
While we are seeing those types of priorities, we are also seeing severe cuts to our civil service, and there are issues affecting services for the unemployed and pensioners. There is a litany of cuts.
Why did the member overlook some of those more significant measures that the Prime Minister has taken to the detriment of all Canadians?
Chungsen Leung Conservative Willowdale, ON
Mr. Speaker, I thank the member for raising those issues, because there are so many points proposed in our economic action plan that I cannot possibly articulate them all at this time.
Increasing the retirement age from 65 to 67 is in line with what is happening internationally. The fact is that Canadians generally have much better health these days and, based on actuarial reports, they are living longer.
With respect to the civil service cuts, this is a process where we have increased efficiency in how we do business. Therefore, we are able to survive with a smaller civil service.
Elizabeth May Green Saanich—Gulf Islands, BC
Mr. Speaker, I want to thank the hon. parliamentary secretary for his remarks, and I recognize, of course, that he deals with the area of multiculturalism.
I am very concerned about the aspects of the bill that work against our inclusive culture as a nation, particularly the new requirement that even visitors on vacation in Canada would have to fill out a form and receive permission from the Minister of Immigration before they are to allowed to come here as tourists on vacation.
Has the hon. parliamentary secretary reviewed that within his department to consider its implications for multiculturalism?
Chungsen Leung Conservative Willowdale, ON
Mr. Speaker, Canada's border needs to be secure. In this increasingly globalized world, it is very easy for visitors from all around the world to come to Canada. We are still a very generous and open country. However, we need to put a modicum of pre-arrival security checks in place to ensure that our borders are secure, such as with the United States within the framework of the North American security perimeter.
Judy Foote Liberal Random—Burin—St. George's, NL
Mr. Speaker, I rise today to speak to Bill C-45, which as anyone who is watching knows, is the Conservative government's second omnibus budget implementation bill. Judging by the bill's 414 pages and 516 clauses amending over 60 different pieces of legislation, it is clear that the Conservatives just do not get it and, I fear, never will.
Despite the recent Liberal motion condemning omnibus legislation and Canadians' overwhelming opposition to Bill C-38, the government's last omnibus budget implementation bill, the Conservative government introduced yet another undemocratic omnibus bill.
When Canadians worry about the way the government is writing legislation, ministers throw their hands up in the air and tell Canadians not to concern themselves with process. However, Canadians are concerned about process. They understand that the process of elections, the process of debate, the process of accountability, the process of parliamentary study and consultation are the roots of Canadian democracy and go hand in hand with the success and stability of our economy. When the Conservative government tells worried Canadians not to concern themselves with process, Canadians sit up and take note.
In the face of unyielding abuses of power by the Conservative government, Liberals continue to fight for democracy and our economy and, in doing so, for Canadians from coast to coast to coast. For example, Liberals introduced a successful motion to separate the changes to MPs' pensions from the budget implementation bill so that these important changes could be fast-tracked through Parliament. We were pleased that the government worked with us on this particular issue.
In an attempt to ensure proper debate and consultation on Bill C-45, we requested that many unrelated measures be presented in separate stand-alone legislation. While the Prime Minister rejected Liberal calls for a more democratic approach, we were nevertheless encouraged that at least he agreed to allow Bill C-45 to be studied by 11 separate standing committees. Unfortunately, it became clear that the government's permission for the bill to be studied by committees was nothing more than a public relations ploy.
Tragically the government's refusal to split this enormous bill meant that only the finance committee had the order of reference from the House, meaning that only that committee could amend this legislation. For instance, had the fisheries committee discovered an error in division 4, which amends consequential provisions relating to the destruction of fish habitat under the Fisheries Act, the fisheries committee would have been unable to correct the legislation.
Bill C-45 is flawed and that is why Liberals introduced over 3,000 amendments at committee. It was our hope that some of these amendments would find bipartisan support so that we could have the best legislation possible. Unfortunately, the Conservatives proved yet again that when it comes to working together, they have no interest in doing so.
Many Canadian families are still feeling the harsh effects of the economic downturn and are struggling to make ends meet. I know that in my riding of Random—Burin—St. George's people were hoping that the Conservative government would surprise them and show leadership for a change by introducing a budget implementation bill that would help to create jobs. Unfortunately, Bill C-45 does very little to help create jobs and does even less to help struggling families feeling the burden of the growing gap between the rich and low and middle income Canadians.
Under the Conservative government, the Canadian economy is struggling. The Parliamentary Budget Officer is predicting a slower rate of growth that will cost the Canadian economy $22 billion every year. Even the Minister of Finance is predicting a slower growth rate and has stopped being so bullish about his deficit targets, embarrassingly conceding yet again that he will not meet his own deficit targets.
While the bill is known as an implementation bill, it may be more accurately described as a budget correction bill. Bill C-45 is tasked with cleaning up Conservative legislative mistakes in Bill C-38. For example, some of the measures that it seeks to correct include errors in the amended Fisheries Act regarding the travel of fish species in or through bodies of water, as well as fixing poor drafting of the new environmental assessment law's transition provisions and the unclear ministerial approval process for specific investments by public investment pools.
Part of the problem with omnibus legislation is that its sheer size and scope prevents Parliament from properly scrutinizing it and making sure that it actually achieves the desired outcomes. That is what we have been asking for, an opportunity to work with the government and all parties in the House to make sure that we have the best piece of legislation we can possibly have for Canadians who elect us to do just that.
When we combine the more than 400 pages of Bill C-38 with the Conservatives' penchant for limiting debate and ignoring facts that do not fit their ideology, it is not hard to understand why Bill C-38 had so many mistakes. These mistakes now have to be corrected.
Instead of the government presenting Canadians with legislation focused on jobs and the economy, it is attempting to correct mistakes that it should not have made in the first place, mistakes that are now taking up the time of the House of Commons when we should be debating other important pieces of legislation. This should have been dealt with and not have come back here so that members of Parliament again have to stand and point out the errors of the Conservative government. Had the government split the bill, as the Liberals requested, the government would not have had so many sloppy mistakes.
Furthermore, many of the measures introduced in the most recent omnibus bill, Bill C-45, do not belong in a budget implementation bill because they have nothing to do with the process of implementing a budget. The Minister of Finance's claim that all measures introduced in Bill C-45 were in the budget is simply not the case. For example, changes to the definition of aboriginal fishery were not in the budget and do not impact acts under the finance department. Changes to land designations in the Indian Act were not in the budget. I note that both of these changes to legislation affecting first nations peoples were done unilaterally, without consultation, and in fact violate the constitutional responsibility to consult aboriginal peoples. That is a blatant failure of the government, the failure to consult with Canadians from coast to coast to coast on issues that impact every facet of their lives on a daily basis. Still, the government just goes straight ahead and does what it wants to do without consulting those who will be most directly impacted.
Another interesting example of a measure that was not in the budget but appears in the budget implementation bill is the suspension of the Canada Employment Insurance Financing Board. Not only is the elimination of that board not in the budget, the budget actually promised the exact opposite. Page 146 of the budget states that “Over the next few years, the Canada Employment Insurance Financing Board (CEIFB) will continue to set the rate...”. Bill C-45 eliminates this board and centralizes the rate setting responsibility in the hands of cabinet.
In addition, the board set the employment insurance rate and was supposed to invest employment insurance surpluses, but under the Conservative government, so many people had been without work that the board has never had a surplus to invest.
Instead of addressing the harsh fiscal realities of many Canadians, Bill C-45 continues the Conservatives' reckless abuse of power. Cutting important job creation tax credits, like the scientific research and experimental development tax credit, the Atlantic investment tax credit and the corporate mineral exploration and development tax credit will not help our economy thrive.
I cannot support a piece of legislation that does more to harm jobs than to create them.
Sadia Groguhé NDP Saint-Lambert, QC
Mr. Speaker, I would like to thank my colleague for her speech. Excessive use of time allocation motions is undemocratic. This massive omnibus bill, which will make major changes to various aspects of bills, was not introduced democratically with respect to discussion by Canadians or members of the House.
I would also like to say that, despite the Conservatives' claims that this budget will create jobs, the Parliamentary Budget Officer says that this budget will result in the loss of 43,000 Canadian jobs. This budget will lead to higher unemployment.
My colleague touched on that. Can she comment further?
Judy Foote Liberal Random—Burin—St. George's, NL
Mr. Speaker, it takes a lot of time to look at a budget bill this size and the various clauses it contains, and anyone who takes the time to go through it clause by clause realizes that the intention of the government is not to help create jobs but to cut jobs. That is precisely what we are seeing throughout the country.
If we look at Service Canada, for instance, we see so many job losses just in that organization alone. On the other hand, we see job cuts in public service personnel who respond to issues with respect to employment insurance. We see jobs cut from veterans offices. We see job cuts across the board, and people are being directed to Service Canada. However, the reality is that the government is cutting resources at Service Canada as well, so Canadians are being impacted not only by the loss of jobs but the loss of public services that they are entitled to and have been used to receiving. Now the government is telling them to go online, forgetting that a lot of people, particularly in rural communities, still do not have access to computers to go online. Then they are told to go to a Service Canada office, where they will find fewer employees to deal with the issues with which they need help.
Scott Andrews Liberal Avalon, NL
Mr. Speaker, it is a pleasure to participate in this debate.
I would like to ask my colleague and friend from Random—Burin—St. George's about one of the most devastating cuts to services in Newfoundland and Labrador, the closure of the marine search and rescue sub-station in St. John's, which impacts all of Newfoundland and Labrador. There is the closure of the one in Quebec City as well.
I know the member has worked hard with the individuals who were displaced, and I am wondering if she has any thoughts on that.
Judy Foote Liberal Random—Burin—St. George's, NL
Mr. Speaker, I appreciate the question from my colleague from Avalon, who is more than well versed in what has transpired in Newfoundland and Labrador with respect to cuts to search and rescue. In fact, the closure of the maritime rescue sub-centre in St. John's struck a blow not just to everyone in Newfoundland and Labrador, because that search and rescue centre provided service for anyone who travelled on the North Atlantic.
The people of Newfoundland and Labrador are continuing to fight the good fight, but the Conservative government turns a blind eye and pretends not to hear the outcries from those who know precisely what will happen. Unfortunately, as a result that closure, there is going to be a tragedy that may well convince the government of the need to reinstate that maritime rescue sub-centre.
Quebec City has been given a reprieve and the centre is not closing, but it is not because of the good wishes of the Conservative government. The reality is that it could not find competent French-speaking personnel to be part of the Trenton rescue centre. It is not because the government does not want to close Quebec but because it really does not have a choice at this point.
Devinder Shory Conservative Calgary Northeast, AB
Mr. Speaker, I welcome the opportunity to speak in favour of the jobs and growth act, 2012, which implements key elements of economic action plan 2012.
When we introduced the plan back in March, we highlighted its importance in taking decisive action to ensure our economy would create good jobs and sustain a higher quality of life for our children and grandchildren, including measures to help the environment.
When it comes to the environment, Albertans care deeply about the natural beauty of our province and about protecting it for future generations. When my family and friends come to visit, I love to show them the beauty of Kananaskis, Banff and Jasper. However, the concerns of Albertans with respect to the environment can be seen in many other ways besides our pride in our national parks.
For example, more and more Albertans are looking into thermal heating solutions. I paid extra to install the technology in my new home. As Albertans, we are not afraid to put our money where our mouth is. However, the key factor is balance. That is exactly how I would describe the measures contained in this bill.
In my remarks today I will focus on elements of today's legislation that expand the eligibility for the accelerated capital cost allowance for clean, green energy generation. Not only would this measure help protect Canada's natural environment; it would support our government's top priority, that being jobs and growth.
Before I speak to that in greater detail, I will speak to the larger economic action plan 2012.
This is a low-tax plan that will build on the strong economic foundations we have built since forming government in 2006. It is a plan that has ensured and will continue to ensure that we avoid the problems facing other countries.
Creating jobs and long-term economic growth is key to our success, not to mention that it is the reason we first introduced Canada's economic action plan. Central to our strategy is our government's low-tax plan for jobs and growth, a policy that has made Canada one of the best places in the world to invest. Not only that, but our economy has created more than 800,000 net new jobs since July 2009, of which 90% are full time.
What is more, all of the major credit rating agencies, such as Moody's, Fitch and Standard and Poor's, have renewed Canada's AAA credit rating.
The plan includes a bold tax reduction plan that has branded Canada as a low-tax jurisdiction for businesses to invest—and the best place to do business, according to Forbes magazine.
Indeed, we are making it easier for Canadian businesses to successfully compete in the global economy and more attractive for others to invest in this country, with the end goal being more and better jobs for Canadians and a healthy, thriving economy.
We must now stay the course with our low-tax plan to protect the economy and create jobs, a plan that has made Canada the envy of the world.
In the words of German Chancellor Angela Merkel:
Canada's path of great budgetary discipline and a very heavy emphasis on growth and overcoming the crisis, not living on borrowed money, can be an example for the way in which problems on the other side of the Atlantic can be addressed. This is also the right solution for Europe.
Nevertheless we know that, when looking to the future, it is important to find a balance between economic and environmental priorities.
Canada is an energy superpower, with one of the world's largest resource endowments of both traditional and emerging sources of energy. More and more, the rest of the world looks to Canada as a secure and dependable supplier of a wide range of energy products.
Since 2006, our government has taken significant steps to establish our country as a global clean energy leader, including through regulatory actions, investments in technology and innovation, and broad-based incentives.
This past March, acting on the advice of the witnesses who appeared before the House of Commons finance committee's prebudget consultations and on the advice of the committee report, which recommended that “the federal government continue to use tax incentives to promote the development and use of renewable energy”, economic action plan 2012 proposed to support these sectors through the tax system by expanding eligibility for the CCA, accelerated capital cost allowance, for clean energy generation equipment.
For the purpose of today's bill, let me quickly describe for Parliament and for Canadians watching at home the technical details behind the accelerated CCA for clean energy generation contained in part 1 of the bill.
The existing measure applies to a broad range of specified equipment that generates or conserves energy by using a renewable energy source, using fuels from waste or making efficient use of fossil fuels.
Through today's legislation, our Conservative government proposes to expand this incentive. Currently, waste-fuelled thermal energy equipment produces heat using waste sources.
Today's legislation proposes to expand the eligibility of the accelerated CCA for clean energy generation equipment to allow waste-fuelled thermal energy equipment to be used in a broad range of applications, including space and water heating. For example, wood waste could be used as an alternative to heating oil for space and water heating in a shopping centre.
District energy systems transfer thermal energy between a central generation plant and a group or district of buildings by circulating steam, hot water or cold water through a system of underground pipes.
We propose to expand the accelerated CCA for clean energy generation equipment by adding equipment that is part of a district energy system that distributes thermal energy primarily generated by waste-fuelled thermal energy equipment.
For example, in a remote community, a district energy system that uses heat generated by waste-fuelled thermal energy equipment could provide an alternative to equipment that uses only fossil fuels.
And finally, today's legislation proposes to add the residue of plants to the list of eligible waste fuels so that it can be used in waste-fuelled thermal energy equipment.
The residue of plants, such as straw, corn cobs, leaves and similar organic waste produced by the agricultural sector, can be used in a number of ways, including the production of heat, electricity, biofuels and other bio-products.
Our government believes that investments in our energy future will be essential to realizing economic opportunities, creating employment and enhancing the Canadian advantage.
It is through measures like expanding the accelerated capital cost allowance for clean energy equipment that we will balance environmental protection and economic growth.
Economic action plan 2012 recognized, for example, that to effectively compete and succeed globally we need to maximize the value that Canada draws from its natural resources, while protecting the environment at the same time.
I am proud that the measures contained in today's bill will help further unleash the potential of Canadian businesses and entrepreneurs to innovate and thrive in the modern economy, to the benefit of all Canadians for generations to come.
In doing so, our Conservative government will reinforce Canada's comparative advantages and ensure the sustainability of public finances and social programs for future generations.
I would therefore encourage all members to support this bill and economic action plan 2012, to support Canada's economy, and to cast their vote for jobs, growth and long-term prosperity.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, I would like to ask my government colleague a question about research and development. We know that major changes were made to tax credits for scientific research and experimental development following the Jenkins report.
There are some particularly troubling elements in Bill C-45, including the fact that the government will cut tax credits for certain industries that really need them right now by $500 million. These credits will be converted into grants. Winners and losers will be chosen by the government.
The second element we do not like is the fact that capital expenditures will no longer be eligible for tax credits. This will cause significant harm to some industries, such as those in the manufacturing and natural resource sectors, because they need to set up pilot projects.
I would like to know whether the member is comfortable with the fact that the government is planning to decide who wins grants and who loses rather than provide tax credits. Why will capital expenditures, which were not mentioned in the Jenkins report's recommendations, no longer be eligible for tax credits?
Devinder Shory Conservative Calgary Northeast, AB
Mr. Speaker, the member knows very well that this government has a record of having the maximum tax deductions in the history of Canada.
The government believes in balancing its approach, attracting business and creating jobs by reducing taxes. That is the record of our government. I suggest my colleague go back and study this.
Kevin Lamoureux Liberal Winnipeg North, MB
Mr. Speaker, when the Prime Minister was in opposition, he articulated that a 21-page budget document was not appropriate to be passing as it was affecting too many pieces of legislation. That is what he argued just a number of years ago. However, today the current budget bill far exceeds that 21-page document.
The current budget bill is hundreds of pages and affects numerous pieces of legislation. It is somewhat hypocritical for the Prime Minister to say that it is not okay to have a 21-page budget bill, but when he is Prime Minister, he presents this massive document which is, in essence, a historical precedent for budget bills never before seen in the House of Commons.
Why has the Conservative majority government decided to sneak through so many changes in legislation through the back door with this budget?