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.

October 30th, 2012 / 5 p.m.
See context

NDP

Hoang Mai NDP Brossard—La Prairie, QC

In terms of the budget and Bill C-45, An Act to implement certain provisions of the budget, have you had a opportunity to analyze them?

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 4:40 p.m.
See context

NDP

Alain Giguère NDP Marc-Aurèle-Fortin, QC

Mr. Speaker, it is clear that with Bill C-45, our colleagues on the other side of the house are leading us into another series of tragedies like the one that occurred in Walkerton, from the economic, social and environmental standpoints. For those who are unaware of what happened, Walkerton is a small village in Ontario whose water system was tainted because the municipal employees did not know how to conduct water purity tests. Government services at the time had been cut by a Conservative government. We are headed in that direction once again.

Economically speaking, we are headed towards a tragedy like the one in Walkerton. The current situation is bleak. In the manufacturing sector, 500,000 good jobs and good salaries have been lost. The number of unemployed workers is now 1.4 million, which is 300,000 more than in 2008. Employment has not improved, and we have suffered a major setback.

We also have a trade deficit of $50 billion. It is not difficult to figure out. We export low-cost raw materials and import high-cost finished goods. That is not how to go about improving the balance of payments. Household debt is currently 163%. People are stretched to the limit. We also learned recently that 842,000 people had to ask for help from food banks. That is the current situation, and it needs to be fixed. Budgets are supposed to solve problems, not make them worse. The current government is doing the very opposite. It is not solving any of the problems mentioned, and it is creating new ones.

This monster bill is not doing anything to get the economy back on its feet. It does not include any tangible industrial policies to boost the economy, create jobs—good jobs not Mcjobs—or to recover the jobs that were lost. That is why people are now much poorer than they used to be. The Parliamentary Budget Officer has pointed out that this budget will cause 43,000 jobs to be lost. Some estimate that as many as 125,000 jobs will be lost. A budget that creates unemployment is not what Canada needs.

The Conservatives have decided to make cuts everywhere. Nothing is exempt: the tax credits that once encouraged investment, business modernization, and research and development. There is nothing left for Canadians when everything is given to cronies.

From the social standpoint, it is a fiasco. They showed no mercy. In this International Year of Cooperatives, not one housing cooperative was established. Everything has been slashed, even old age security. I will not bother to mention the wrecking of employment insurance because everyone has spoken about it. In the sacking and pillaging department, Attila the Hun could not have done better. And I have not even mentioned the budget cuts for the Canada Mortgage and Housing Corporation, which helps people keep afloat. They too have been cut. I would, however, like to mention the lack of any concrete measures to support aboriginal communities. The Conservatives have made some fine speeches, but in the gap between what they say and their track record on keeping promises, there ought to be a budget. But that budget does not exist. Bill C-45 certainly is not that budget.

This is also an environmental fiasco. Previously, the Kyoto protocol and the Copenhagen accord were tossed out. The Conservatives did not want to hear about them. Now they are attacking the Navigable Waters Protection Act. So now it is possible to build a bridge or a dam anywhere, no problem, because people no longer have to worry about that act.

Greedy big businesses think nothing of charging us high prices for gasoline. The price of gasoline has risen like never before. Even if the price of oil does not go up, the price of gasoline at the pump does. And it is consumers who pay the price.

In fact, in our society the rich are getting richer while everyone else is getting poorer. That is what is called a plutocracy. For those who do not know, a plutocracy is a political system in which power is held by the rich and the owners.

The vast majority of Canadians are currently growing poor, while a few are getting ridiculously rich. That is a poorly planned economy.

Are we going to sacrifice our fisheries and our health? XL Foods is a prime example, but there will be others. We are handing regulatory oversight over to private businesses and saying we trust them, but if certain people decide to take shortcuts, Canadians as a whole pay the price, rarely the Conservatives and their friends. It is Canadians who wind up poisoned. It is Canadians who lose their jobs. It is Canadians who can no longer sell their livestock at a good price.

That is the penalty. This kind of budgetary campaign is a chainsaw massacre of all public services, and it is the public who will suffer.

Allow me here to paraphrase Albert Einstein, who said that two things are infinite, the universe and human stupidity. In this case, it is the Conservatives' stupidity in public administration that is infinite. I am not so sure about the universe yet.

Canadians are afraid, and rightly so. Services are declining, their savings are disappearing, and their pension funds are at risk. Everything is going down, and this government has an obligation to achieve results when it brings down a budget. After 10 years of poor economic policies, where do we stand? Corporations are sitting on $600 billion in savings, and that money is not being reinvested.

After 10 years of bad results, the government should start thinking about its good-for-nothing policies. The unemployment rate is up: the number of unemployed has increased from 1.1 million to 1.4 million. At the time, household debt was 115% and now it is 163%. It is time for the government to wake up and table a budget that will stimulate economic growth. Instead, it has tabled a mammoth budget that is anything but a tool for economic recovery. It is a tool that will make some Canadians rich. As for the others, they will have to rely on divine intervention.

That is a Conservative budget. It is a budget worthy of Reagan or Bush, people who led their countries into debt. This government is like the one in Britain, where government measures have pushed the country into a recession. And this recession is especially hard on the people who need jobs. These people do not want to use food banks, but they have no choice. They are looking for affordable housing, but there is no more social housing. As was the case in Walkerton, catastrophes take place, but nothing is done about them.

With this budget there will be major problems down the road. Just like in Walkerton, people will have to pay the political price. It is unfortunate that the people who pay the political price will not be the ones who suffer the consequences.

This government is gutless, heartless and, above all, devoid of economic competence. After 10 years of bad management, it should wake up and realize that Canadians' lives have deteriorated.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 4:35 p.m.
See context

Conservative

Jeff Watson Conservative Essex, ON

Mr.Speaker, of course nothing could be further from the truth. We have demonstrated time and again through our measures that we have not only been able to support those who are unemployed and have lost their job through no fault of their own, but also that we have been working as quickly as possible with a low-tax plan to try to create the jobs so they can get back to work in the long range.

However, while we are talking about employment insurance and Bill C-45, I would point the member to page 272 of Bill C-45, division 15, dealing with the Employment Insurance Act and the extension of the small-business hiring credit. Can the member say today whether he will stand in this place in just a few minutes and vote yes to Bill C-45 so that small businesses can get the relief they need to hire more workers and get them back to work? Or does he want them on employment insurance as well?

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 4:35 p.m.
See context

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, the member should have been here in 2008 to attend these committee hearings, because when we were looking at the Navigable Waters Protection Act and the kind of regulatory regime that stakeholders were looking for, we were not talking about a third world regulatory regime. We were and are talking about applying approaches, for example, that are in other major jurisdictions like the United States. We are not far off the mark in that. We are looking for efficiency in the regulatory environment.

We have other laws and other means of capturing environmental concerns, for example, if those are the concerns of the member opposite. However, for navigation on particular waterways, we are applying a common sense approach to whether or not an issue should be granted a navigable waters permit or not.

I would encourage the member to support the approach of the government and vote yes to Bill C-45.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 4:25 p.m.
See context

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, I thank the hon. member. I take it in the good spirit that the member intended it of course. It is very collegial in the House and Canadians who are watching at home should understand that is how we do business in the House.

I would just like to finish my thought on the economy. If we exclude the quantitative easing measures, the recent second stimulus of the U.S., its growth failed to meet expectations in the last quarter. We are watching that economic development and responding to it. We understand there is more work to do and that is why we are doing it.

Bill C-45 continues our low tax trajectory. The extension of the EI hiring credit, for example, is a measure specifically against taxes incurred by small businesses. We continue on that low tax trajectory for creating jobs and growth.

Contrast that with the opposition. Those members like a high tax trajectory. Their plan is full of it. The member for Nickel Belt, on October 25, lamented that the government was not collecting enough taxes from Canadians. They support a much different approach, but it is one that would kill jobs, not expand economic growth. We cannot increase the cost of doing business as significantly as those members have proposed and expect that businesses will somehow create jobs.

We support many measures in Bill C-45 and I wish opposition members could bring themselves to stand on their feet and support them.

One measure is our attempt to extend the EI hiring credit for small business another year. It benefited over half a million businesses last year and stands the prospect of doing similarly in this current context as well.

I would think the NDP would oppose our shift from oil and gas tax preferences to bio-energy, but that does not seem to be the case.

There are two major issues I want to talk about with respect to Bill C-45, which I wish the NDP would support.

The first issue is the changes to the Navigable Waters Protection Act. I have been a member of the Standing Committee on Transport, Infrastructure and Communities since 2007. We looked at this issue extensively for many months back in 2008. We are seeking to clarify the intent of the bill first of all. It is about protecting navigation. It was that way in 1882 when the bill was brought in and it was, quite frankly, that way up until the mid-1990s. It is a series of court interventions that have broadened the definition of a navigable water to the point where it is no longer useful. If a canoe or a kayak can be floated in four inches of water for a small distance that is considered a navigable water even if one has to portage that canoe or kayak five times over the course of a kilometre. They consider that a navigable water. Most of us in terms of applying common sense would know that is actually not the case.

We are looking to clarify that act, and that is important for a number of reasons. One is the infrastructure projects that roll out across the country, building critical infrastructure. We need to have a regulatory environment that focuses on allowing those projects to move forward. We are applying scrutiny where we need to apply scrutiny, which is where navigation has a serious likelihood of impairment. Our approach does that.

We had to consider two options. One is do we narrow the definition of a navigable water or do we take an exemption approach or a list approach as to which waterways we look at and which ones a navigation permit will not apply.

Witness after witness for weeks could not come up with the definition of a navigable water. It is incredibly complex and the nature of waterways across the country are exceedingly complex. That makes it difficult to come up with a workable definition of what a navigable water is. We had the municipalities come before committee. Representatives of seven provinces and two territories were at committee. They agreed with the approach that we are taking, which is to look at which waters we apply this to and which ones we do not.

Where are navigational interests to be protected and navigational rights to have that additional scrutiny, and where will they not? When we debated it back then, we had three parties supporting that approach. Sadly, that is not the case as we debate this measure today.

I gave the example earlier when asking the member for Prince George—Peace River about a forestry company going into an area where navigability is not an issue. If one were to take a kayak somewhere, according to the way the courts have defined navigable water, it would take one, in some cases, hundreds of kilometres to get to that particular area, if one even dared to go there. These are areas where logging companies go in and cut on a regular basis. However, for every temporary bridge across a creek, even if it were an intermittent creek, there would have to be a separate application to get a navigable waters permit. If there are 200 temporary bridges, it would take 200 applications. If an inspector from Transport Canada has to go there and do a site inspection, we can imagine how unwieldy and difficult it would be for one to develop a plan when navigability is not even a remote issue at all. We are moving to a risk-based approach and one that makes a tremendous amount of sense.

The second item I want to talk to is the bridge to strengthen trade, DRIC. The new Detroit River international crossing is this government's single most important infrastructure priority. We have not only said so here but have consistently proven it in this place, whether via the establishment of the borders and gateways fund in 2006, or the International Bridges and Tunnels Act in 2006, or the budgetary measures to support the parkway and the DRIC in 2007 and beyond. This act would insulate the DRIC from frivolous lawsuits. We already have 10, including three NAFTA challenges, aimed not at ensuring that the project is compliant with Canadian laws but to slow it down and kill it. The opposition stands for that delay and it should not. Its members should get behind this and Bill C-45 so that we can get jobs going.

Some 10,000 construction jobs and thousands more will be created from the necessary long-term business investment that will come because we have predictability at that corridor. Our trucks can move our goods across the border. Billions of dollars and thousands of jobs are waiting for this to go ahead. Opposition members stand for delay. Shame on that party. The members should instead stand up for it.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 4:25 p.m.
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Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, to finish off the last debate on the foundations put forward by Jean Chrétien, the member for Cape Breton—Canso sat there while that government took $53 billion from workers and businesses from the EI surplus.

Bill C-45, the jobs and growth act, 2012, is about the budget implementation act, part 2, which would implement some extremely important measures from the March budget. There are many provisions to improve our economy, which continues to be the primary focus of this government.

The results are beginning to speak for themselves in terms of the economy. There are over 820,000 net new jobs since the worst of the great recession in July 2009. Of those jobs, 90% are full-time, which speaks to strong private sector job growth.

The World Economic Forum said that our banks were the soundest in the world. Forbes magazine ranked Canada as the best country in the world in which to do business. The OECD and IMF predict that our economic growth will be among the strongest in the industrialized world over the next two years. Our net debt to GDP ratio remains the lowest in the G7 by a country mile or two. All three major credit ratings, be it Moody's, Fitch, or Standard & Poor's, have all reaffirmed Canada's top credit rating.

The global economy obviously remains fragile. To look at the European Union, the newspapers yesterday were filled with stories about Spain and its continued problems. Also, the U.S. growth, if we exclude the quantitative easing measures by the current administration—

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:55 p.m.
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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, I am pleased to rise today to participate in the debate on Bill C-45, the jobs and growth act, 2012.

This act would implement key initiatives that would bolster Canada's economy and help improve communities across Canada with measures that create jobs, support families and communities and respect taxpayer dollars.

Many of my colleagues have, over the course of this debate, highlighted the numerous important measures that are proposed in the bill. These include extending the hiring credit for small business, removing red tape, reducing fees for our grain farmers and improving the administration of the Canada pension plan.

However, I would like to use my time today to focus on the aspects of the bill that are key to the continued economic growth of my riding of Prince George—Peace River, namely our government's commitment to the streamlining of the regulatory process in order to promote the responsible development of our natural resource sector.

As we all know, a key part of our nation's future lies within our natural resources. In my riding, these resources play a significant role in the local economy. Few regions are as blessed with natural resources as British Columbia, and this sector has been a key driving force for our local economy for decades.

Few jobs in the region are not directly affected by the development of these resources. Nationally the natural resources sector, directly and indirectly, accounts for nearly 20% of our economy. That is one-fifth of all economic activity in Canada. It is massive.

That generates 800,000 high-quality jobs in Canada. Add to that the additional 800,000 indirect jobs in other sectors, and we have close to 1.6 million jobs that depend on natural resource development, nearly 10% of all jobs in Canada. It is huge indeed.

There are more than 600 major Canadian resource projects planned over the next 10 years or currently under way. These projects represent approximately $650 billion in investments, a significant increase from the $500 billion in investments that had been identified only a year ago.

It is no secret that in today's modern society, all of us use natural resources on a daily basis, and it is clear by these numbers that the global demand for these resources is growing even stronger. However, we will have to compete with those other resource-rich countries for those vital job-creating investment dollars.

Acting on this opportunity means putting in place a world-class regulatory system. We need a system that ensures timely, efficient and effective reviews, a system that promotes business confidence in investment while strengthening our world-class environmental standards.

In economic action plan 2012, we introduced our government's responsible resource development plan, and in Bill C-45 we are continuing in our efforts to streamline the regulatory process while also maintaining rigorous environmental standards.

This commitment to streamlining the regulatory process and responsibly developing our natural resources would have a positive impact on all Canadians. In doing so, we would not be only creating and sustaining high value jobs and economic growth, but also generating billions of dollars in tax revenues to help pay for important social services.

Let me be clear. Despite continued fearmongering on the part of the opposition, projects would not proceed unless they could be done safely and responsibly. Eliminating duplication or updating legislation does not mean we are weakening the environmental standards. On the contrary, by streamlining our regulatory process we can focus environmental assessments on major projects.

For example, our proposed changes to the navigation protection act are a continuation of our government's commitment to streamlining the regulatory process. These changes would clearly define the major waterways upon which regulatory approval is required, and rely on the common law to protect navigation in non-listed waterways.

Canada's waters would continue to be protected by Transport Canada's marine safety laws, the Fisheries Act and the Canadian Environmental Assessment Act, 2012, as well as various provincial statutes.

In fact, Canada has nine acts of Parliament governing marine safety. These strict rules and regulations govern the development and shipment of products like oil and gas to safeguard public health and the environment. For example, Canada requires ships to provide 24 hours' notice before entering its waters.

The federal government also inspects every foreign tanker on its first visit to a Canadian port and, for vessels making multiple visits, at least once a year thereafter.

All large crude oil tankers must now be double-hulled. Smaller vessels must be double-hulled by the end of 2014.

Thanks to tough legislation and technological innovations, there have been no spills from double-hull tankers in Canadian waters, period. Nor have there ever been spills from tankers escorted by tugs with a local pilot aboard.

In addition, oil-handling facilities are required to have oil pollution prevention plans and oil pollution emergency plans in place. The government reviews the plans and equipment and evaluates the oil-handling facility's capabilities through exercises. With regard to pipeline safety, pipelines are currently the safest and most efficient method of transporting large volumes of oil and petroleum products over long distances, and our government has similarly tough legislation and rules in place to prevent spills.

The National Energy Board subjects pipeline development proposals to an extensive review that ensures pipelines are safe and protect the environment and the public. Permits are only granted once environmental issues and first nations concerns have been considered. Pipelines and equipment must also meet Canadian Standards Association specifications, which are considered among the most stringent in the world. Safety, integrity and emergency response programs specific to each company's infrastructure are regularly reviewed and audited by the National Energy Board. The ongoing monitoring of pipelines, inspections and site visits, as well as the ability to issue mandatory compliance orders, are also some of the tools in place to ensure pipeline safety. We are taking every possible measure to reduce the risks associated with resource development and transportation. In fact, we are going further than any government before, under our responsible resource development plan.

Why am I bringing up all these important safety measures? While Bill C-45 would continue our government's commitment to streamline the regulatory process, we would continue to have a rigorous environmental review process that would ensure our resources are developed responsibly.

As I said previously, my riding of Prince George—Peace River is a resource-rich region in Canada, with many of my constituents reliant on the development of our natural resources.

I strongly believe that we must continue to remove duplication from our regulatory system, while also ensuring that our changes would not negatively affect our strict environmental protection standards. I believe that is what we would do with the measures we have introduced in Bill C-45. We can remain good stewards of the environment and our natural resources at the same time. That is why I am proud to support Bill C-45.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:50 p.m.
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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, my colleague is generally a pretty jovial guy, so it is surprising to see him so grumpy today and so negative about this bill. There are a lot of good measures in Bill C-45. The registered disability savings plans are being improved. The EI credit for small business employers is being continued. It is a credit of up to $1,000 against a small business employer's increase in 2012 premiums. This is available to over 536,000 employees.

Does my colleague agree with these improvements in Bill C-45? Finally, I would like to ask if he could also say how he feels about the comments of his former leader, Mr. Broadbent, when he said:

Taxes are the hinge that links citizens to one another and to the common good...We should also consider...implementing taxes on very large inheritances of wealth which pass morally-unjustifiable class privilege.... Significant revenues could be raised by the introduction of a financial transaction tax... Green taxes—such as a carbon tax and higher taxes on natural resources—need to be considered as a means of financing

I would like my colleague to respond to those three questions.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:45 p.m.
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NDP

Yvon Godin NDP Acadie—Bathurst, NB

Thank you, Mr. Speaker. I think that the questions, comments and what we think about the bill are on the agenda today. We can also talk about what is missing from a bill. We must never limit debate in the House of Commons to the content of a bill ; we must be able to talk about what is missing.

Once again, the government is trying to shut us up so that it does not look bad. What did it do? For example, through its bill it is requiring people to work until the age of 67. This direct attack on workers is unbelievable. The Minister of Finance and the Minister of Labour say that they are doing this to help people. That all this is being done in order to help people.

They want me to talk about Bill C-45. So I will talk about temporary foreign workers. Does it make sense for us to bring in temporary foreign workers who will be paid 15% less than Canadians? What does this mean? It means that employers will be able to keep temporary workers in their businesses. There is a reason why Canadians who go to work in Cap-Pelé are sent home after working 20 hours. Temporary workers can stay for 40 hours.

There is a reason that, in Caraquet, some workers are not called back to work in a fish plant. Temporary foreign workers have taken their place because the employer can pay them 15% less and make them work in a different way given the regulations in effect in New Brunswick. There are laws that are not obeyed in New Brunswick. If the poor foreign worker who wants to earn money disagrees with what his employer says, the employer calls Immigration Canada and says that the worker he got is not working out.

How can employers bring temporary foreign workers to their workplaces when the unemployment rate in Acadie—Bathurst is 20%? That is crazy.

Here is what the Conservatives are doing with this bill: they are opening the door to what I call “foreign worker slavery” and to the loss of jobs for local workers. Then they turn around and tell us that they want our people to work.

Here is what they really want: they want our people to go work out west, and they want foreign workers to do seasonal jobs, pay taxes and pay employment insurance premiums before being sent back to their country without receiving any benefits at all.

The government could do the same thing the Liberals did: take $57 billion contributed by workers and spend it however it wants. That is what the Conservatives are doing, but it is not the right thing to do. People need to wake up and realize that.

I am proud that I went to the demonstration in Campbellton this week. However, I was not proud to see the fear in people's eyes, nor was I proud of the way the government has treated workers.

I meant it when I asked what workers did to the Conservative Prime Minister to make him hate them so much. Because that is the truth: he hates workers. He is constantly making their lives more difficult.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:45 p.m.
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Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, I rise on a point of order.

I have been listening for the last few minutes. I think the member is debating Bill C-38 and not Bill C-45 at this particular moment. I would ask you to ask him to be relevant to Bill C-45.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:35 p.m.
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NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, today, I am pleased to speak about Bill C-45. This is not the first time that the Conservative government has introduced this omnibus bill. The Conservatives introduced it in the spring and they are introducing it now. It is the second part of the budget. How many laws does this 400-page bill contain?

First, the bill prevents parliamentarians from representing their constituents. In my opinion, in a democratic country and a supposedly democratic Parliament, when election day comes and Canadians choose representatives in Ottawa, it is so that those representatives can do something. First, parliamentarians have the right to talk about a bill. Second, they have the right to examine it. Third, they have the right to vote on it.

I would say that this Conservative government is a reform government because that is really what it is. The Conservative Party used to be a progressive party but such is no longer the case. This majority government is introducing bills that are setting back democracy.

I do not understand how Conservative members can feel comfortable with this situation. Even the public is starting to stand up and say that it does not make sense that their elected representatives are no longer allowed to do anything because of the Conservative—or the reform—government. Democracy is suffering.

I do not have much time so I would like to give some examples right away. Ten minutes is not a lot of time. In fact, two minutes have already passed and I have only eight minutes left.

Let us look at employment insurance. This is an issue that is close to my heart, and I will explain why. In my riding, there are a lot of seasonal jobs. Seasonal workers do not exist. There are only seasonal jobs.

In July, there were five demonstrations in my area: one in the riding of Miramichi, three in the riding of Acadie—Bathurst and one in Madawaska—Restigouche, the riding of the Minister of State for the Atlantic Canada Opportunities Agency. This is the same minister who said that people should have to have a grade 12 education to be eligible for employment insurance benefits. He is also the one who told his constituents that there are still people out there today, in 2012, who would prefer to collect employment insurance benefits so that they can go hunting instead of going to work. What an insult to workers!

On the weekend, I participated in a demonstration that deeply touched me, and I will tell you why. More than 2,000 people participated in this demonstration. When Acadians and anglophones from New Brunswick marched on the J. C. Van Horne Bridge in Fredericton, they saw aboriginal peoples from Gaspé and francophones from Quebec marching towards them. It was called the meeting of the peoples. We told the Conservative government that it was not heading in the right direction with employment insurance reforms.

In this budget, the Conservatives could at least have changed some of the regulations. What they are doing is cruel. We talk about cruelty to animals. What they are doing to workers who have lost their seasonal jobs in the fisheries, forestry sector or tourism, is cruel.

Every week, those very people have to present themselves to employers and ask if there are any jobs. Women over 60 are calling me to say that they have to go into stores to ask about being hired, otherwise the government will cut their employment insurance benefits. They are being humiliated even though they have worked their entire lives in a fish processing plant, for example.

In my riding, no matter if the person lives in Caraquet, Shippagan, Lamèque, Miscou, Tracadie-Sheila, Inkerman, Saint-Simon, Maisonnette, Anse-Bleue, Grande-Anse, Saint-Isidore or Paquetville, there is simply no work.

The government boasts that it has created 820,000 jobs, but it does not talk about the jobs it has eliminated. For example, it eliminated jobs at the Canada Post call centre in Fredericton and replaced them with jobs that pay $12 an hour and no benefits. The government does not talk about that.

They humiliate people and scare them by making cuts to the employment insurance program. I get calls from employers who tell me that they have no jobs to offer. They have a small store with two employees. They get 50 to 300 people every week who come in asking for a job. They say that the government is hurting their businesses. These are not customers coming to buy from them; they are people looking for a job.

We see the way the government is acting. It is forcing people down home to go elsewhere to look for jobs. I understand what the Conservatives are saying. They are saying that if people are on EI, they are supposed to be looking for jobs.

However, they live in an area where unemployment is up to 20%, because the fish plant has closed down and tourism and forestry have closed down for the winter, because that is what we have at home. They are telling those workers to look for jobs three times a week, and if not, they will cut their employment insurance.

Store owners are calling our office saying that they do not have jobs, and when these people go to their establishments, they are hurting their enterprises. It is not that they do not like them, but they are not buying in their establishments. As a matter of fact, they are putting signs in their windows now, stating that they are not employing anybody. As matter of fact, some of them are saying that they are going to start charging $15 for each person who wants to have the owner fill in the form human resources wants. Some of them are saying that they are going to start charging $20 for the forms human resources wants them to sign.

Just imagine that. They have already lost their jobs. They are only getting 55% of their wages, and they have to travel around the Acadian peninsula looking for jobs that do not exist. Imagine the amount of money they are spending just on gas, and that is money they do not have. How can the government say that it has put that in place to help people find jobs where they did not know that a job existed?

I invite the Minister of Human Resources and Skills Development to come down to the peninsula to Acadie—Bathurst, Miramichi or Madawaska—Restigouche any day to see if there are jobs. The jobs are not at home. In her bill she is saying that they have to look an hour away from home. Does she understand where they are living?

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:20 p.m.
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Conservative

Earl Dreeshen Conservative Red Deer, AB

Mr. Speaker, I am pleased to speak today on the jobs growth act which would implement key provisions for our 2012 economic action plan.

The legislation would serve to implement additional measures of the 2012 budget in order to continue to grow Canada's economy, fuel job creation and secure Air Canada's long-term prosperity.

First, I would like to thank the Parliamentary Secretary to the Minister of Finance as well as the departmental officials for their great work at the technical briefing of the bill. What we heard from officials at the technical briefing were clear and precise details outlining the department's rationale for each of the fiscal issues that make up Bill C-45. It was six hours well spent.

While I consider my riding of Red Deer, I reflect on its people and its prominence in the province of Alberta. Not only are its people innovative and hard working, but our riding is centrally positioned along Alberta's transportation corridor and acts as a vibrant industry service hub, and agriculture is one of those critical industries. It has been and continues to be vital to our community of Red Deer and I am proud to be part of a government that recognizes that Canada's agriculture industry is a key economic driver, not only for rural communities but for our nation as a whole.

Today I am pleased to recognize the exciting future that is in store for Canada's grain sector with the introduction of Bill C-45.

Earlier this year, western Canadian wheat and barley farmers were released from the shackles of the Canadian Wheat Board monopoly. After 75 long years of being legally prohibited from selling their own grain, they are at last able to reap the benefits of their hard work.

In conjunction with new freedom for western wheat and barley growers, today's bill, the jobs and growth act, proposes much needed legislative amendments to the Canada Grain Act in order to streamline and update the operations of our century-old grain commission.

I would also like to speak about the Red Deer Chamber of Commerce which presented to its national policy convention a resolution that encouraged marketing freedom for western Canadian wheat and barley growers, and it was passed by that organization.

Farmers' interests are best served when unnecessary costs and regulations are eliminated and when farmers can deliver grain into a competitive and efficient grain handling system. It has been 40 years since the Canadian Grain Commission was last updated to meet the needs of farmers, so it is definitely time for us to remove red tape and unnecessary regulations for grain growers.

Bill C-45 removes the requirement for inward inspection and weighing by the Canadian Grain Commission. This proposed change will eliminate over $20 million annually in unnecessary costs from the grain handling system; costs that have been downloaded onto farmers.

The original purpose of inward inspection and inward weighing was to ensure that grades and weights were recorded at each stage as grain moved through the system. The service was established when primary elevators, terminal elevators and transfer elevators were owned by different companies. Grain companies needed a system of checks and balances to follow the grain as it weaved its way through the system. The Canadian Grain Commission was required to act as a third party to ensure that this happened.

However, there have been many changes in the industry, which now call in question the need for the Canadian Grain Commission to inspect and weigh every shipment of grain that is unloaded at terminal or transfer elevators. These services are no longer required in a business environment where a prairie grain elevator is often shipping its own grain within its own terminal system. These inspections are redundant and unnecessary.

The shippers will be able to request third party inspections, but as for who provides these inwards services, that would be best determined by those involved in the transaction. The shipper and the elevator operator will also have the right to appeal to the Canadian Grain Commission for binding determination of grade and dockage if there is a disagreement.

There has been some criticism from across the way on these changes and I sometimes wonder whose interests opposition members are looking after. However, our government has consulted extensively with farmers on how to modernize the grain handling system and we are pleased to have the support of industry for these changes.

Richard Phillips, executive director of the Grain Growers of Canada, in a press release dated October 23, said:

Under the current system, we see duplication of services with grain company staff and grain commission inspectors both inspecting the same tens of thousands of railcars every year...This change will certainly reduce unnecessary overlap. The Grain Growers have always pushed hard to reduce red tape and regulatory burdens for our grain sector and so we fully support this change.

The industry agrees that this is the way forward to modernize the Canadian grain handling system and to provide an efficient competitive environment for farmers to operate in.

The other important change that is designed to benefit farmers is the introduction of insurance-based producer-payment protection. A key role of the Canadian Grain Commission has been to protect primary producers from the risk of industry participants going belly up. The commissioner requires that all elevators post a bond in an amount equal to the value of the grain that they are handling. The current payment protection program adds significant costs to western Canadian producers, but it is not cost effective and the costs of the program are ultimately borne by farmers.

Unfortunately, we have seen that despite the licensing regime, the bonding system does not necessarily protect producers from the financial failure of grain elevators. If an elevator is bonded, the security held by the Canadian Grain Commission is insufficient in some instances and producers are left with a loss if a company goes under. Unfortunately, all that this requirement has done is tie up a significant amount of operating capital in the industry without protecting farmers.

Bill C-45 would change this by allowing an insurance-based program that would reduce costs to the grain sector and reduce risks to producers. Grain elevators and dealers would continue to be licensed and providing security would continue to be a requirement of becoming licensed. However, an insurance-based program would reduce risks to farmers as an insurance program would guarantee that farmers would not left without payment.

As I have already said, these amendments reflect extensive consultation with industry and are supported. The Western Canadian Wheat Growers stated in its press release of October 22 of this year that it applauded changes to the legislation that would provide greater flexibility in how payments to farmers were secured. It has recognized that replacing the traditional bonding system with an insurance system could provide farmers with better coverage at a lower overall cost. Kevin Bender, president of the Western Canadian Wheat Growers, who happens to also be a constituent of mine, said, “the amendments represent a good first step toward modernizing the Canadian Grain Commission”.

The Canadian Grain Commission is essential to our country's system of grain handling, but it has been very difficult for the commission to keep up with changes in the industry both in Canada and abroad. The result has been a restrictive approach in regulating Canada's grain industry.

It is the Conservative Party, a party that has many farmers sitting in the House, of which I am one, that fights for this industry. It is this Conservative government that has followed through on studies and consultations with the grain industry to come up with the important amendments that we see today.

We received feedback from the grain sector during the 2006 Compass review, the recent Rail Freight Service Review, the Canadian Grain Commission's 2011 user fees consultation and the commission's engagement with stakeholders earlier this year. We have listened and we are acting.

There are a few things that I want to summarize so people recognize the significance of the points that are being made.

First is the removal of the inward inspection. The farmers deliver the grain. If they wish to confirm the quality, they bag it, tag it and send it to the Canadian Grain Commission. Then they know what they are going to be paid for because the weights have already been determined. That is the end of their transaction. That is the beauty of what we have had without the Canadian Wheat Board.

The grain companies are the ones that own it. They then move it through their system and by not forcing farmers to continue the inward inspection, there are no more extra costs added to the movement of the grain within the grain companies. Based on that, it means that they will not be downloading extra charges. It has been mentioned that there are tens of thousands of rail cars are being continually inspected and the cost of that ends up going to the farmer.

The second point that I have heard others talk about is the Grain Appeal Tribunal. With the removal of inward inspections, the need to arbitrate, therefore, becomes unnecessary. This has nothing to do with the producers. Remember they no longer own the grain. Their transactions were completed at the grain elevator. The discussion is between the Canadian Grain Commission, company X and company Y, not the farmers.

It is this Conservative government that is helping farmers by putting the Canadian Grain Commission on a track to keep pace with the industry in the 21st century. The status quo is not acceptable for grain producers in Canada. Therefore, I urge all members in the House to support these important legislative amendments.

Jobs and Growth, 2012Government Orders

October 30th, 2012 / 3:10 p.m.
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NDP

Rathika Sitsabaiesan NDP Scarborough—Rouge River, ON

Mr. Speaker, I am happy to continue my speech. Ironically entitled the “Jobs and Growth Act”, Bill C-45 completely lacks measures to create jobs and stimulate growth in the long term for Canadians. In fact, the budget plans for unemployment to rise. The tax credits provided in the bill to small businesses are small and only for a very short time period. Additionally, Bill C-45 cuts support for business research and development. This does not seem to make any sense at a time when Canadian businesses need to increase innovation and productivity to be able to succeed in our knowledge based local economy and the ever changing global economy. Moreover, the changes in the bill will hurt the manufacturing sector, which provides many good jobs to my constituents in Scarborough--Rouge River, as firms will be more likely to move their R and D activities to other countries with better incentives.

What we need is a long-term Canada-wide strategy to create good jobs for the 1.4 million Canadians who are still unemployed, not a budget bill that the Parliamentary Budget Officer has estimated will cost 43,000 Canadians their jobs, with a projected total of 102,000 jobs lost when combined with the previous rounds of cuts. It is simply outrageous.

The changes in Bill C-45 to public service pensions creates a two-tiered workforce where younger people will have to work longer for the same retirement benefits. Along with little action on crippling student debt and youth unemployment, younger Canadians cannot rest assured that the government is looking out for their best benefits.

Moreover, statistics show that women are overrepresented in Canada's public service, so the government's proposed changes to public service pensions will disproportionately and negatively affect women across the country. Additionally, changes to the method of calculation for payment for holiday work in Bill C-45 will negatively affect those who change jobs often, and those who work part-time or on a commission basis. Once again, these are predominantly youth, newcomers and women, who usually do not have many other options than to take on these more precarious forms of employment.

Canadians want us to take action to protect our environment and grow a sustainable economy for the future, yet the Conservatives are shamefully focused on gutting environmental protection regulations.

Bill C-45 continues down the road of this spring's Trojan horse budget by further weakening our ability to protect our environment. The budget implementation bill guts the Navigable Waters Protection Act and further erodes the Canadian Environmental Assessment Act. If one were to do a search for the word “navigable” on the online version of the budget, the word “navigable” does not even appear once. The word does not appear in the budget, yet it is all over the implementation bill of the same budget. The changes to the Navigable Waters Protection Act will leave thousands of waterways without protection and result in fewer environmental reviews by Transport Canada.

While the removal of “waters protection” from the name of the act and the change in the name to the “Navigation Protection Act” may appear very simple, it is quite revealing of the government's intentions. This name change demonstrates to Canadians just how out of touch the Conservatives are when it comes to the environment, as well as their lack of concern about Canadians' call for its protection and the need to build a sustainable economy.

In addition, the bill makes little effort to support clean energy generation equipment. There are two minor expansions of tax credits for certain types of equipment. However, these are hardly noteworthy, totalling just $3 million in the next fiscal year.

Bill C-45 is one more nail in the coffin when it comes to environmental protection by the government. Under the Conservatives, Canada's environmental ranking has dropped to among the worst in the world. The 2011 climate change performance index ranks Canada 57th out of 60 nations surveyed, well behind G8 countries like the U.K., France and Germany, which all scored in the top 10.

I am outraged by the bill and Canadians are outraged by the actions of the government. I have received countless emails from constituents demanding that we oppose this bill. While families and communities are struggling, the bill certainly shows the government's priorities with the tens of millions of dollars spent on propaganda and advertising while at the same time Conservatives are telling Canadians there is just not enough money for employment insurance and old age security. With all of these flaws and more, it is no wonder that we, along with Canadians across the country, oppose this bill.

The NDP will always be proud to stand up for transparency and accountability. We actually listened to our constituents and consulted Canadians across the country. We will proudly stand up for environmental protection. We will also continue to be the leader in the House in standing up for retirement security and health care. We stand up for Canadians, and Canadians deserve something much better than what the government is offering.

New Democrats are committed to fighting for the real priorities of Canadian families: jobs, health care, pensions and protecting our environment. We have a plan to support these priorities by improving health care services; rewarding the job creators; encouraging our youth; fighting climate change; and supporting seniors, not attacking their benefits.

I urge the government to take these concerns into consideration as well as the concerns of Canadians from coast to coast to coast and accept amendments to this bill or split it and have its components studied by all committees.

There are over 400 pages in this budget implementation bill. Let us actually have some time to study the bill.

The House resumed consideration of the motion that Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, be read the second time and referred to a committee.

Jobs and Growth Act, 2012Government Orders

October 30th, 2012 / 1:55 p.m.
See context

NDP

Rathika Sitsabaiesan NDP Scarborough—Rouge River, ON

Mr. Speaker, I proudly rise today to oppose Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012, and other measures.

We oppose budget 2012 and its implementation bill unless it is amended to focus on the priorities of Canadians: creating good quality jobs; protecting our environment; strengthening our health care system; protecting retirement security for all; and ensuring open and transparent government.

On March 29, the Minister of Finance presented Bill C-38, budget 2012, that recklessly cut services Canadians rely on, including old age security, health care transfers to the provinces and environmental assessment.

Despite the government's claims of job creation, it is also suggested that these cuts would lead to 19,200 job losses in the public sector.

The Parliamentary Budget Officer has estimated that the budget would cost 43,000 Canadians their jobs. Combined with the previous rounds of cuts, the PBO projects a total job loss of 102,000 jobs.

Not only did the budget gut services to Canadians, its omnibus nature was an attack on transparency and democracy. The Trojan Horse budget bill outraged Canadians from coast to coast to coast.

I personally received large numbers of emails from constituents of Scarborough—Rouge River who were angry about the undemocratic processes and the concealed method the government used to spend their tax dollars. By introducing yet another massive omnibus bill, the Conservative government continues to keep Canadians in the dark by ramming it through Parliament without allowing a transparent, open process of consultation.

By avoiding a thorough study of their second 400-plus page budget implementation bill and its implications, the Conservatives certainly have not learned their lesson. The official opposition, the New Democrats, will not let them quietly pass their new omnibus legislation. Canadians deserve better.

The massive omnibus bill makes amendments to a wide range of acts. Over 70 different pieces of legislation are being changed. It further erodes government transparency and accountability by dismantling a series of commissions and giving more power to the ministers, another recurring theme from the government.

Ironically titled the “jobs and growth act”, Bill C-45 completely lacks measures to create jobs and stimulate growth in the long term for Canadians. Actually, we are seeing more and more cuts to jobs. As I mentioned earlier, the Parliamentary Budget Officer has said that over 102,000 jobs will be lost because of this budget—