Bill C-45 (Historical)

Jobs and Growth Act, 2012

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

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

Jobs and Growth Act, 2012

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, I rise on a point of order to seek the unanimous consent of the House for the following motion: “That notwithstanding any standing order or usual practice of the House, clauses 210 to 218 related to the Judges Act be removed from Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, and do compose Bill C-47; that Bill C-47 be entitled an Act to amend the Judges Act; that Bill C-47 be deemed read a first time and be printed; that the order for second reading of said bill provide for the referral to the Standing Committee on Justice and Human Rights; that Bill C-45 retain the status on the order paper that it had prior to the adoption of this order; that Bill C-45 be reprinted, as amended; and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.”

This measure, which deals with the changes to the government's implementation of the Judicial Compensation and Benefits Commission's recommendations, among other things, deserves full consideration. The government proposed that parts of the bill be referred to committee but not be amended or voted upon separately. The motion solves this problem by creating a separate bill so that this important issue can be thoroughly examined and debated.

I am convinced that, in respect for the independence of our judiciary, I will not have any problem getting the unanimous consent of the House.

[Rick Norlock, Conservative, Northumberland—Quinte West, ON]

Mr. Speaker, it is my pleasure to rise in the House on behalf of the constituents of Northumberland—Quinte West to participate in the debate about the second budget bill, Bill C-45, our jobs and growth act, 2012, and how it would benefit all Canadians.

Our government's goal through the bill is to strengthen the financial security of Canadian workers and families to aid in job creation and long-term prosperity from coast to coast to coast.

Our jobs and growth act, 2012 would provide new support for families through improvements to the registered disability savings plan. This measure was designed to help ensure the long-term financial security of children with severe disabilities. To provide greater access to registered disability savings for small withdrawals, the 10-year-rule measure replaces the requirement to repay any Canada disability savings grants or Canada disability savings bonds paid into the plan in the 10 years preceding a withdrawal, with a requirement to pay these back at a fixed ratio to the amount withdrawn.

This will provide greater flexibility for parents who save in registered education savings plans for children with disabilities. This measure allows an investment income earned in an RESP to be transferred on a rollover basis to an RDSP, if the plans share a common beneficiary. This measure ensures that children with severe disabilities will be given the financial security that necessitates their daily lives into adulthood.

Our jobs and growth act, 2012 would ensure fairness to hard-working employees through taxable benefits from group sickness or accident insurance plans.

When an employer contributes an amount to a group sickness or accident insurance plan in respect of an employee, a taxable benefit is not currently realized by that employee. To encourage fair and neutral tax treatment for beneficiaries under group sickness or accident insurance plans, our government is proposing that the amount of the employer's contributions be a taxable benefit for the employee. Our jobs and growth act, 2012 proposes that the amount of an employer's contributions to a sickness or accident insurance plan is a taxable benefit and must be included in a person's income for the year in which the contributions are made.

Our jobs and growth act, 2012 would help small businesses grow and flourish through the small business hiring tax credit.

Our government is amending the Employment Insurance Act in order to extend the hiring credit for small businesses. Entrepreneurs and small businesses truly are the engine of our economy. The hiring credit for small businesses provides a credit of up to $1,000 against any potential increases in a firm's EI premiums from one year to the next. In the past this credit provided needed relief to small businesses by helping defray the costs of hiring new workers and allowing them to take advantage of emerging economic opportunities as the economy continues to recover amid continuing global economic uncertainty. The extension of this measure continues our government's strong record of support for small businesses, which includes help for entrepreneurs, a reduction in red tape and lower taxes for those businesses that stimulate our economy.

Our jobs and growth act, 2012 would provide support for seniors through retirement compensation arrangements, or RCAs. This measure would amend the Income Tax Act to allow a taxpayer under certain conditions to split his or her income from a retirement compensation arrangement with his or her spouse or common law partner.

Our government, through the jobs and growth act, 2012, also proposes to introduce new anti-avoidance rules to prevent the use of schemes that seek to take advantage of the features of the RCA rules to obtain unintended tax benefits. These rules will be similar to the existing rules for registered retirement savings plans, RRSPs, registered retirement income funds, RRIFs, and tax-free savings accounts, commonly known as TFSAs. The amendments to the retirement compensation arrangements would increase accountability and benefit seniors when they need it most.

Our jobs and growth act, 2012 would expand opportunities for aboriginal peoples to participate more fully in the economy. Maintaining the current designation provisions of the Indian Act would perpetuate the slow and cumbersome process that impedes economic development benefiting first nations on reserves. It would also undermine first nations governance while incurring unnecessary costs to Canada and first nations.

Reducing the timeframe for processing designation would align with the objectives of the 2009 federal framework for aboriginal economic development to enhance the value of aboriginal assets and remove impediments to developing the land and natural resource base on reserves. The amendments would also build on our government's commitment to ensure that aboriginal people benefit from economic development by streamlining land-related approval processes.

The government recognizes the contribution that aboriginal peoples can make to the labour force as the youngest and fastest-growing segment of the nation's population. Equipping first nations people with the skills and opportunities they need to fully participate in the economy is a priority both for this government and for first nation peoples. We have a plan to invest in first nation education on reserve, including early literacy programming and other supports and services to first nation schools and students.

Further, to the school programs, we propose school renovations on reserve, which would provide first nation youth with better learning environments. Our government is also committing to the introduction of a first nations education act and to working with willing partners to establish the structures and standards needed to support strong and accountable educational systems on reserve.

When it comes to job creation for first nations, our government will improve the incentives of the on-reserve income assistance program, while encouraging those who can work to access training that would improve their prospects for employment. Furthermore, our government would renew the urban aboriginal strategy to improve economic opportunities for aboriginal peoples living in urban centres.

I am content with the progress that has been made and the work that will continue to be done to balance the budget. In the past two years, we have already cut the deficit in half by ending our targeted and temporary stimulus as planned and by controlling growth and spending. Economic action plan 2012 would build on these efforts by implementing modern restraint in government spending and by ensuring that internal operations of the government are leaner and more efficient. In fact, our government is returning to balanced budgets, while continuing sustainable increases in transfers for health, education and social programs.

Going forward, I am proud to support the second budget bill, Bill C-45, for the benefits it would provide to the constituents of Northumberland—Quinte West and to Canadians across our great country.

I am prepared to answer any questions that may be posed.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, I rise in the House today to speak against yet another omnibus budget bill brought forth by the Conservative government, as with its spring's Trojan horse budget bill. New Democrats oppose Bill C-45 both on content and process grounds.

Bill C-45 is over 400 pages long and contains a huge number of disparate measures. Despite what the minister says, not all of these measures were in the 2012 budget.

Bill C-45 would amend over 60 laws and even contains a totally new law. With this bill, the government is pursuing the same agenda it put forward in its Trojan Horse budget bill: it is giving the minister more power and weakening environmental protection legislation.

Once again, the Conservatives are trying to rush their legislative measures through Parliament without giving Canadians and their MPs a chance to examine those measures closely.

Writing about the Trojan Horse budget bill, conservative commentator Andrew Coyne said that there was something quite alarming about Parliament being obliged to rubber-stamp the government's whole legislative agenda at one go.

Alarming is right. This bill is reprehensible, and the NDP will not support it.

The Conservatives continue to claim that their budget is about job creation. However, like Bill C-38, Bill C-45 is lacking in significant measures to create jobs and stimulate growth in the long term.

Contrary to what my colleagues across the way have just said, tax credits to small business are short term, small in size and will only be available to employers for the 2012 taxation year, meaning they will almost be over by the time Bill C-45 is passed.

The Canadian Centre for Policy Alternatives has stated, “In total, federal spending cuts could lead to the elimination of over 70,000 full-time equivalent positions”. These are both public and private sector losses. Therefore, where is the Canada-wide strategy to create good jobs, while 1.4 million Canadians are still unemployed? It is clear that the austerity plan of the Conservatives is not working. Instead it is a drag on our economy.

In fact, on the very day that this bill was released, the minister suggested a downgrade would be announced in the fall economic update, but despite the growing evidence that their plan is not working, the Conservatives are stubbornly refusing to change the course.

At a time when most Canadian businesses need to increase innovation and productivity to succeed in an increasingly competitive global economy, support to small business research and development, a driving force in innovation and productivity, has been cut.

In its prebudget consultation brief, BIOTECanada wrote:

Leading industrialized countries including Australia and France have recognized the spin-off benefits of investing in R&D tax credits and have recently made significant improvements to their respective programs. In order to ensure Canada retains a competitive edge in attracting foreign direct investment and growing domestic research and development capacity, the SR&ED program should be examined with an eye to ensuring that it remains a global leader.

Where is the minister's plan to make the SR&ED program a global leader? We are not seeing it.

At a time when countries around the world are recognizing that environmental sustainability and economic growth must go together, the Conservatives continue to barrel down the path of environmental deregulation without consultation.

In response to this spring's budget bill, Jessica Clogg of West Coast Environmental Law wrote:

By gutting Canada’s long-standing environmental laws, the budget bill gives big oil and gas companies what they've been asking for--fewer environmental safeguards so they can push through resource megaprojects with little regard to environmental damage...It is Canadians and our children who will pay the cost.

The Conservatives have clearly not learned their lesson on the environment and, instead, are further weakening our ability to protect the environment and ensure sustainable development for future generations. Bill C-45 completely guts the Navigable Waters Protection Act. Thousands of waterways will be left without protection, which will mean fewer environmental reviews by Transport Canada. In fact, Bill C-45 removes the words “water protection” from the name of the bill. It is now about “navigation protection”.

Eriel Deranger of the Athabasca Chipewyan First Nation has said:

This is unacceptable. They have made a unilateral decision to remove the protection of waterways without adequate consultation with First Nations and communities that rely on river systems for navigation and cultural practices protected under treaty.

Where is the plan to build a sustainable economy that will keep Canada competitive in the 21st century? This bill shows just how out of touch Conservatives are with the needs and goals of Canadians. Unfortunately for Canadians, the Conservatives want to convince us that massive omnibus budget bills and an increasing lack of consultation and decreasing government transparency are apparently the new normal.

I just returned from monitoring the elections in Ukraine. Ukrainians have faced numerous challenges and roadblocks when it comes to democracy and yet they keep fighting hard to exercise their democratic rights. In our country, we have a proud democratic tradition and yet we have a government that continues to undermine Parliament and the rights of Canadians with undemocratic bills. I find it particularly striking that I am standing in the House today debating an omnibus budget bill that continues on the disturbing Conservative trend of increasing the concentration of power and reducing government accountability.

Bill C-45 would eliminate a number of commissions, giving the ministers more power to make decisions without consultation or accountability.

Last spring, the NDP organized public consultations on the implementation of the Trojan Horse budget bill. During one of those consultations, Matthew Carroll of Leadnow said that Canadians want effective participatory democracy.

New Democrats will always be proud to stand up for transparency and accountability. They will always stand up for environmental protection. Canadians deserve a government that listens to the concerns of its people.

Last spring, the Conservatives used their Trojan Horse budget implementation bill to attack old age security, employment insurance and provincial health transfers. The Conservatives are transporting us back to the stone age in terms of environmental regulation.

This bill shows that the Conservatives did not listen to Canadians who were outraged by Bill C-38.

While Canadians want us to take action to protect our environment and grow a sustainable economy for the future, the Conservatives are focused on gutting environmental protection. While Canadians want increased transparency from their government, Conservatives are continuing to keep Canadians in the dark and make changes to laws without consultation.

New Democrats will oppose budget 2012 and its implementation bills unless 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. Canadians deserve better.

[Phil McColeman, Conservative, Brant, ON]

Mr. Speaker, I thank the hon. member for the opportunity to describe in a little more detail what our policies have done for small business.

We have continued to make a more attractive environment for people to begin small businesses. Many communities like ours rely on the creation of new businesses. It is not a perfect world where all the companies within one's riding or community stay in business. Some companies shut down or move to other jurisdictions because of economic and competitive pressures. That is a reality. It is always fluid within our communities.

Therefore, Bill C-45 is important in what it does. It maintains the path we are taking to create the platform for businesses to prosper. They are the job creators. Small and medium-sized businesses employ 80% of the people in this country. We continue to lay out for Canadians exactly what we said we would, which are policies that align themselves to simplify being in business and to prospering and creating jobs.

[Phil McColeman, Conservative, Brant, ON]

Mr. Speaker, I thank the hon. member for her question because, again, this is my background in terms of having a company that employed on average 20 to 30 people at any given point in time.

On the extent of the small business tax credit, it is known that half a million employers in Canada have taken advantage of it. We are moving forward with the small business tax credit and extending it to businesses. This is a job creator.

The other item I mentioned in my speech that I would like to underscore is the fact that we are dealing with the red tape with which small business people generally have a hard time dealing. They do not have the resources to have someone on staff or to take on the additional costs of dealing with all the things that government demands of them on the administrative side of their businesses. When we look at Bill C-45 and the action we have taken, we see we are moving forward to make it a lot easier for small businesses to deal with government.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, I thank my colleague for his very interesting speech. He spoke about small and medium-sized businesses and about jobs in his riding. He said that Bill C-45 could really help people and that his government had helped the small and medium-sized businesses in his riding.

While looking over Bill C-45, I noticed that one of the proposed measures is a temporary hiring tax credit for small businesses. It is the most significant job creation measure in this bill. However, this tax credit is temporary and the maximum amount is $1,000. In addition, it is only applicable in the 2012 tax year. In other words, this measure will no longer be available even before Bill C-45 is passed.

I would like my colleague to comment on this. What does he find of particular interest to small and medium-sized businesses in this bill?

[Phil McColeman, Conservative, Brant, ON]

Mr. Speaker, I am thrilled today to stand in support of Bill C-45.

The many Canadians I speak to are refreshed and excited to finally have a stable majority government that does exactly what it told voters it would do when it ran for election.

We are focusing on Canadians' priorities at a time when strong, steady economic leadership is needed. Canadians elected our government to work at building a stronger and more prosperous Canada, and that is what we have done.

We promised to streamline bureaucratic processing and build a leaner and more effective public service. We promised to eliminate government duplication, red tape and unnecessary paperwork. We promised to respect taxpayers' dollars and eliminate the deficit without raising taxes or cutting transfers. We promised to ensure the long-term sustainability of social programs, and we promised to aggressively implement pro-growth economic initiatives to create jobs.

In every area I just outlined, our government is delivering and there is no doubt that our economic action plan is working. Over 820,000 net new jobs have been created, most of them full-time, most of them in the private sector. Our debt-to-GDP ratio remains the lowest in the G7 by far, and just yesterday it was reaffirmed that we remain on track for balanced budgets. Moreover, the OECD and the IMF predict that Canada's economic growth will be among the strongest in the G7 over the next two years. The World Economic Forum has said that our banks are the soundest in the world. Forbes magazine has ranked Canada as the best place to do business in the world, and the IMF recently singled out Canada as an economic model for the world to follow.

Canadians know that our plan is working, and budget 2012 continues to build on the great progress we have made. Perhaps most exciting is how our plan, the direction of this government, is delivering results in my riding of Brant.

Like many communities in southwestern Ontario, the economy of Brant is evolving from large-scale historic heavy industrial manufacturing to value-added, small- and medium-size companies. Brant has a rich history of heavy industrial manufacturing dating back to the turn of the century when Brantford was the third largest economy in Canada, only behind Toronto and Montreal. We revolutionized the farm in our community by building the first tractors that were sold around the world, but recently, due to the global economic climate and necessity, Brantford has been in a large transition. I like to think of Brantford because of the great influence that post-secondary education has had on our community. Here I like to think that we are in our sophomore year.

Manufacturing continues to evolve. As our mayor so rightfully states, our goal is to build a 21st century city and county, and we are excited about our future. I will highlight the large influence of post-secondary growth in our community later in my speech.

Canada is attracting the world's attention as countries look to safe havens for trade and investment, and our government's smart economic policies are giving Brant businesses a competitive advantage to capitalize on these new opportunities. Our plan to keep taxes low, cut red tape, promote investment and aggressively expand trade is just what manufacturers and exporters need in our riding.

Cutting red tape and the small business hiring tax credit in our budget 2012 are things that I am intimately familiar with, having been a business person in the building industry who owned his own company for over 23 years. I have held many economic round tables in our community, and the two comments that keep coming back over and over again are the need to help small business hire new employees and for us to cut red tape to make the administrative side of business easier.

Our government is also supporting and investing in post-secondary expansion, which is attracting students, businesses, jobs and investment to our city and our now thriving downtown core. Our government has invested $13 million for the Laurier Research and Academic Centre and recently announced $16.7 million for the Laurier/YMCA Athletic Complex.

Here are some interesting statistics. In a 2011 analysis commissioned by the City of Brantford, the number of Brantford businesses reporting a positive impact from post-secondary institutions tripled to 47%, and that was up from 15% in 2005. Over the past dozen years, institutions have invested $130 million in Brantford's downtown core, a downtown core by the way that desperately needed an injection of people and investment.

I am thrilled to stand in support of Canada's economic action plan because it responds to the needs and priorities of my community and it is delivering results for the people of Brant. Members do not have to take my word for it. Here is what Scott Lyons of Extend Communications said about his company's plan to bring 70 new jobs into our downtown:

We are really excited about re-investing in the downtown. It's a vibrant and growing community down here. Brantford has a great workforce and we are excited to be expanding our workforce down here.

Here is another recent quote, from John Dimitrieff, CEO of Patriot Forge:

Although Patriot operates on both sides of the border, very soon Patriot will be undertaking a 35,000-foot expansion that will create jobs right here in Brantford. That we are choosing to invest and expand in Canada is due in large part to the current government’s plan that keeps taxes low and creates a competitive business environment.

The Massilly Group is delivering 100 new jobs to Brantford, because according to its CEO:

Brantford is an ideal location for us because of its close proximity to our core markets in Canada and the United States, its manufacturing-friendly business environment, and our ability to retain and add to our highly skilled workforce.

Wipro is actively recruiting resumés to fill more than 500 jobs it projects to create in our downtown core by 2013.

John Paul deBoer of Brant Screen Craft recently purchased a plant and moved 50 jobs to Brantford. He said:

...we had looked into locating our finishing and distribution facility in Michigan. The corporate tax cuts and programs provided by the Conservative government were the deciding factor to expand in Canada.

Brantford Mayor Chris Friel recently spoke about how small and medium-sized businesses are becoming a powerful engine of job growth in Brantford, as companies like Automodular, First Gulf, GreenMantra Recycling, and the Sunrise Warehousing Company grow and expand. He said:

It's not something that gets a lot of media attention but a lot of small to medium-sized businesses have opened in Brantford in the past year creating a lot of jobs. But I am not sure people realize or appreciate how important this is to the city.

Another statistic, office vacancy in Brantford, has been cut in half over the last two to three years. Also over the past two years, Brantford has risen 35 spots to number 64 on the CFIB “communities in boom” ranking of Canada's most entrepreneurial cities.

Cathy Oden of Chamber of Commerce Brantford-Brant describes how a growing entrepreneurial spirit is reviving our community:

They're opening up small restaurants, hair salons, spas and expanding retail locations. Typically, they are fulfilling a dream or desire that they have nurtured for some time.

She was speaking about that entrepreneurial spirit that we are feeling and experiencing.

Canada's economic action plan is supporting jobs and growth in my riding of Brant. The good news does not stop there. I would encourage all members of this House to support Bill C-45 on its speedy passage through the House of Commons.

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

Mr. Speaker, I thank my hon. colleague for the question. This is indeed every interesting.

I found it very amusing when the hon. NDP member for Halifax asked the government ministers questions about the removal of the word “environment” from the website regarding the Navigable Waters Protection Act. This is a recurring theme. I hope I explained that under the Constitution, the federal government has a responsibility to protect rights of navigation. This is implicit in the Constitution. It includes the protection of navigable waters.

Over time, given the rise in environmental concerns, the Navigable Waters Protection Act became an environmental law. That is why the website used the word “environment” and why the changes currently proposed in Bill C-45 are really dangerous for most of Canada's bodies of water.

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

Mr. Speaker, it is always a challenge to approach a bill of over 400 pages covering 40 different laws and have 10 minutes to try to make my way through it. I appreciate this chance to speak to the bill at second reading. I will of course be watching closely for work at committee and hope that some of the concerns I have about the bill now can be repaired at committee so that I will not have to put forward hundreds of amendments at report stage, which at this point appears likely.

The increasing use of omnibus bills is an affront to democracy. It is not appropriate and while other governments have perhaps trespassed close to the line before and created howls from the members of the opposition of the day, certainly the current Privy Council holds the Olympic world record for monster omnibus bills. No other government has come close.

Here I would like to commend all sides of the House for the fact we were able to split out and deal separately with MP pension reform. Many Canadians were happy to see that work. Perhaps we can do more by co-operating in the future to separate out pieces of bills that do not belong.

What things in this bill do not seem to belong at all in a proper budget bill? I will go quickly through some examples and then delve more deeply into two in particular. I do not think that removing the Hazardous Materials Information Review Commission properly belongs in an omnibus bill. Why are we getting rid of it? It helps provide critical information to business on hazardous materials.

I lament the current government's further deep cuts to research and development credits, specifically the scientific research and experimental development tax credit. If we look at our economy, it is quite true that we have weathered the economic storm better than most nations around the world. We have a better regulated banking system quite frankly, and the current government can take no credit for that. Nonetheless, we did weather the storm better.

Nonetheless, if we look at the indicators of where we are falling behind, one area is productivity and productivity, which relates to R and D. Cutting R and D does not make sense. I am concerned about significant cuts in this omnibus bill to research and experimental development tax credits.

The Windsor-Detroit bridge is highlighted in the bill and many people have waited a long time to see improvements there. We know we have some private sector opposition to it from the other side of the border. It is an extremely bad precedent that the act specifies there will be no environmental assessment and that the following acts will be exempt from the procedures for the Windsor-Detroit bridge: There will be no Fisheries Act review, no involvement of the Species at Risk Act and there will be nothing from the Navigable Waters Protection Act. This precedent, by the way, is opposed by the member of Parliament from Windsor, who himself is a great proponent of getting this project done.

The assumption implicit in discarding legislative review under those acts is that somehow those acts are irrelevant to any project the Conservatives really care about. I am afraid that is the truth about how the government operates, but that does not make it any less lamentable to find this in the legislation.

One piece that I want to take more time to delve into may surprise the House. The bill is supposed to be about jobs and growth. We hear about that all the time. In this connection, I would mention a key economic sector in Canada that we do not hear very much about: tourism. Tourism represents more of Canada's GDP than agriculture, forestry and fisheries combined. It employs nearly 600,000 Canadians, generating nearly $80 billion in economic activity. However, we are losing ground in tourism.

In the year 2002, Canada was rated seventh in the world as a tourist destination among all nations. Guess what? In 2011, we dropped to eighteenth place. We dropped from seventh to eighteenth in just in 9 years. What happened? For one, there are the policies of the current government. One of the first things the Prime Minister did once forming government was to remove the GST credit that foreign visitors used to get. That credit was basically a goodwill gesture. It cost this country almost nothing, because so few people applied for it. However, the Conservatives got rid of it.

Then of course there was the move by the United States to require visitors to Canada and visitors to the U.S. who travel across our borders to have passports. We cannot blame any government for what the United States decides to do, but I think we should have pushed more forcefully against it. That measure has hurt tourism a lot, just as the general climate after 9/11 hurt tourism from the United States. However, we hurt the tourism sector even more in Bill C-38 by changing the rules around seasonal workers to make it harder for seasonal workers to leave employment in an industry such as tourism and be considered reliably available to the employer when the tourist season begins again.

However, now we have this, found on page 270 in division 16 under “immigration and refugee protection”, a whole new regime for tourists. It is little mentioned in debate on the omnibus bill but is for travellers to Canada. Any foreign national coming to Canada would now have to clear an application process in which they would have to answer questions before they planned their vacation. It would create what they call “an electronic travel authorization”, although that is not the language of the act but the language of the technical briefing. In short, there would be an electronic travel authorization.

I have a couple of concerns about this. One is that it would hurt tourism. There is no question about that. When we put in place visa requirements for countries like Mexico and the old Soviet bloc nations, it had an effect on tourism, as anything would that creates a barrier in a competitive tourist market where tourists can decide whether they want to take the train across Canada or a tour down the Rhine by boat. They have choices. If one government says, “We'll see if we'll let you in, fill out this form”, tourists will choose to go somewhere else. This would be a terrible mistake. It would be part of our over-security conscious agenda, that even if people want to visit Canada as tourists, we have the right to put them on a no-fly list to prevent their coming here. I am very concerned about that.

I will turn to the most egregious elements of Bill C-45, the changes to the Navigable Waters Protection Act. I hear my friends on the other side of the House refer to the many complaints about the act because only seasonally navigable water falls under the act. Surely, if that were the nature of the problem, they could deal with it by using a fly swatter. They did not need to bring in the wrecking ball. If that is the problem, get out the fly swatter. What the Conservatives would do under Bill C-45 would be to take on, I think, in the order of 99.5% of all the bodies of water within Canada, excluding our oceans, and remove them from the Navigable Waters Protection Act. They say that the act was never intended to be about navigable waters, that it was only supposed to be about navigation.

Just to go back to some constitutional law for purposes of setting the context, we cannot say with any sense or meaning that this bill was only intended to do thus and such when a bill was passed in 1882 or since 1867, since navigation is a head of power for the federal government. They cannot say that in 1867 the legislators never intended it to apply to the environmental assessment of a massive hydro dam. Of course, they did not. Neither did they intend, as Professor Peter Hogg has pointed out, that undertakings connecting the provinces would include an interprovincial telephone system. It had not been invented yet. Moreover, as Professor Hogg pointed out in one of his constitutional law texts, “[I]t is well established that the general language used to describe the classes of subjects (or heads of power) is not frozen in the sense in which it would have been understood in 1867”. Then he goes on to say, “On the contrary, the words of the Act are to be given a "progressive interpretation", so that they are continuously adapted to new conditions and new ideas”. Or, as a member of the high court, Lord Sankey, ruled in 1930, “The British North America Act planted in Canada a living tree capable of growth and expansion within its natural limits”.

Therefore, it is entirely absurd to hear the government members continually tell us that the Fisheries Act was only supposed to be about fisheries for all time, not fish; and that the Navigable Waters Protection Act was never about waters, but only about navigation. That is bad in law, it is bad in theory and it is bad public policy. It is also false. These laws have been fundamental to environmental law in Canada.

However, I ask the question: If it is about navigation, why would the Conservatives take a wrecking ball to navigation? In the bill, they have protected lakes in precious cottage country, close to where people live, where they claim there are all the complaints, and eliminated the law for the vast tens of thousands or millions of hectares of Canada where the lakes are not cottage country. They would eliminate the protection on all but 62 rivers and 97 lakes. Who would step up to protect our rights of navigation?

Under constitutional law, no province is allowed to step up and fill the void when the federal government runs from its responsibilities under the Constitution. It is unprecedented in the history of Canada that the federal government would willingly and deliberately remove itself from a field in which it is empowered under our Constitution. It would leave no protection for navigation, no protection for recreational use, no protection for rafting or kayaking and, in the process, would eliminate environmental law for most of Canada's waters.

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, I am thankful for the opportunity to stand in this House to speak in favour of Bill C-45, which truly would bring jobs and opportunity to Canada.

Today, I stand in this House, proud to be a representative of the Peace country. I represent the riding of Peace River, which includes the better part of northwestern Alberta. In this area, we know the value of jobs, opportunity and growth. Over the last number of years, that is exactly what we have seen.

I have often said that I am proud to represent the Peace country. It is a beautiful place, but its beauty is only a small reason for me to be so proud. The larger reason for me to be so proud to represent that constituency, the constituency that is home, that is where I was born and grew up, is that the people who live in the Peace country are dedicated to growing a local economy and building a stronger future, not only for our community but for the country in general.

A couple of weeks ago, the Canadian Federation of Independent Business announced that Grande Prairie, which is the largest urban centre in the riding I represent and the largest city in the Peace country, was recognized as the most entrepreneurial city. That was not just for this year. That was for the third year running.

The people in the Peace country understand the value of jobs and growth. This bill speaks to so many of the issues people from my riding have indicated are priorities for them. That is why I am so proud to stand in this House to support this bill.

I am proud to represent and work for the people of my riding. I am also proud to represent and work for Canadians in general, from coast to coast.

Over the last couple of years, I have had the privilege of serving in two specific and different roles. The first was as a commissioner on the Red Tape Reduction Commission, which travelled this country and heard from small business leaders across Canada. They talked about the necessity of Canada leading in reducing red tape, because one of the biggest hindrances Canadian businesses face is government-created red tape.

The second role I am going to speak to, generally, is my role as the chair of the Aboriginal Affairs and Northern Development Committee. I have served in this capacity since the last election, and I can tell members that it is truly a privilege. This budget has some important and good news for that role, as well.

I will speak, first, to my role as a commissioner on the Red Tape Reduction Commission.

I, along with six of my colleagues, seven MPs in total, as well as seven representatives from the private sector, made up this national commission.

For over a year and a half, we travelled the country of Canada, from one coast to the other, hearing from small business leaders who were concerned about so many things.

We know, and we knew going into this whole exercise, that Canadian small businesses, and businesses in general, have a huge burden when it comes to red tape. As a matter of fact, it is estimated that the cost of compliance with red tape created by government costs businesses across the country $30 billion on an annual basis. That is a huge amount of money. However, there is also the frustration and the missed opportunities businesses have when complying with unnecessary red tape when they could otherwise be growing their companies.

We heard a whole host of different concerns when it comes to the amount of paperwork government requires at the federal, provincial, and municipal levels, and, in some cases, the redundancy of that.

As we have seen, last year's budget began the process of dealing with some of the red tape irritants. Specifically, in the act we see before us today is an issue brought up on a regular basis when we travelled the country, namely, changes to the Navigable Waters Protection Act.

We heard from small business owners across this country about the frustration as it relates to the construction industry and as it relates to industries that actually have to service and build bridges and waterway structures from coast to coast. From fishermen to people in the tourism industry to people in the forestry sector to people in the mining sector, we heard about the frustration as it relates to navigable waters.

I do not have to be a commissioner at the national level to know that this is an irritant. As a matter of fact, I have an example in my hand today. It was interesting that I heard a colleague from the NDP mention that she had never heard of anybody experiencing such frustration. I can say that on a regular basis I hear of business leaders and municipalities that have had major frustrations dealing with this outdated act.

Last year I received a letter from one of the largest forest products companies in my riding. It had an unfortunate circumstance when one of its temporary bridges was washed out. The forestry sector cannot rely solely on provincial and municipal roadways. It has to have an integrated roadway network constructed and owned by forestry companies, independent of government-owned infrastructure.

I will briefly read from the letter. It was as a result of the washout of a temporary bridge that had been in place. The forest company stated:

[It] has received all necessary approvals for the demolition and construction of a new bridge including approvals from the Department of Fisheries and Oceans and Alberta Environment and Water. Both agencies expedited their approvals

They ensured that all precautions were taken as they related to the environment and protection. It went on to explain the other things they oversaw.

What was clear was that what would be undertaken by the Navigable Waters Protection Act would simply be redundant. There had already been assurance that transportation on that river, which is not used for transportation, would not be impeded. What was interesting to me was that this company was proposing a bridge that would have less environmental impact, because it spanned the water from one coastline to the other without any disturbance of the banks. This bridge was going to be much taller, so it would limit less any traffic underneath it if, in fact, somebody wanted to canoe on what was a pretty small waterway. All of the things we would consider to be common sense had already been addressed by the company, yet there was an unnecessary delay.

Somebody in the House might ask who cares if there was a delay. Let me explain. I care. They described the bridge and its use. They stated:

The bridge is used to transport timber out of the forest. If the replacement is not in place for the remainder of the winter log-haul, the mill will not have enough timber for the coming year, resulting in catastrophic economic impacts on the company and the community.

I found out that there would be mass layoffs at one of the largest mills in the province of Alberta if this bridge was not replaced.

I can say that the changes to the navigation protection act are welcomed by industry, which creates jobs, opportunity and growth in my community, and also by municipalities that have had similar circumstances and frustrations, especially as they relate to responding quickly after infrastructure is damaged as a result of weather.

The second point I want to speak to is something important that has not been discussed in the House very often in this debate and unfortunately not at all by the opposition benches. It is the whole issue of the changes to the land designation for first nations lands.

In 1988, an amendment to the Indian Act was made to create the ability for first nations to have more control over their own land to create economic opportunity and prosperity for their communities. A couple of things are going to be changed as a result of the budget act in place today. The first is that we are going to create an environment in which the threshold for voting would be similar to that of a federal, provincial or municipal election. A simple majority would allow first nations to move forward with changes to the land designation. The second is that we are going to create less onerous and reduced red tape for first nations as it relates to getting government approval.

These are just two points. I would be happy to go further in answering questions on either of these or any other points.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, first, let me correct the member. He has absolutely no understanding in terms of what he is talking about if he believes Liberal omnibus bills were anywhere near to what the Conservative bill is.

If he is trying to say that the NDP would not bring in omnibus bills, what he needs to do is take a look at provincial jurisdictions where there have been NDP governments. The national government of Canada was no worse during the 1990s than the provincial NDP were in other jurisdictions. The member needs to get a better understanding. The NDP is not as innocent as he might like to think.

Regarding the youth issue, yes, youth unemployment is a serious issue, but does Bill C-45 deal with it? It would have been nice to have had more of a general discussion about the budget, but there is a challenge for the government to produce more for young people in Canada.

However, when the government cut back the Katimavik program, which was a wonderful Trudeau program, it demonstrated that the Conservatives did not really understand—

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, on that point, I can assure the member, whether by the Liberal federal-national administrations or other political parties at the provincial level, that there have been attempts in the past to improve the quality of our lakes. In good part, they have been very successful in doing that, but there is always room for improvement. What is clear, specifically with respect to this budget, is the government has deemed it necessary to get rid of the ELA, which will have a profound impact on the quality of freshwater going forward. It is most unfortunate that the member does not recognize that cut.

Generally speaking, it is great to speak on Bill C-45, which is unique legislation, a bill which ultimately is a cheap shot at democracy. Sometimes we take things for granted. Bill C-45, taken into consideration with its twin budget bill, which was brought in just prior to the summer break, is an insult to the House in terms of its attempt to make so many changes to legislation through the back door of a budget bill. Unfortunately, this is something that is not unique. The Conservative government has tried to bring in amendments through the back door of budget legislation for the last couple of years. However, with respect to an assault on parliamentary processes, this is by far the worst in the history of the House of Commons.

I found it interesting when the member for Wascana provided members this statement from 1994 made by our current Prime Minister when the Chrétien government had brought in a bill that was only 21 pages, compared to hundreds of pages, and dealt with only three or four items rather than dozens of items.

In 1994, with respect to the then prime minister, the current Prime Minister stated:

We can agree with some of the measures but oppose others. How do we express our views and the views of our constituents when the matters are so diverse? Dividing the bill into several components would allow members to represent views of their constituents on each of the different components in the bill.

The current Prime Minister saw that as an assault on democracy and, in essence, challenged the then prime minister to break down that 21 page bill. Where is the Prime Minister today and how far has his opinions changed? Bringing in so many pieces of legislation through the back door of a budget is just wrong.

I would argue that even though many might say that this is somewhat of a boring issue, going into the next election Canadians will be reminded of how the government tried to bring forward a complete legislative agenda through the back door of a budget debate. We should be talking about is the bigger picture of budgets.

We saw surpluses in past government budgets, such as those of Paul Martin or Jean Chrétien. The current government inherited a surplus and turned it into a deficit situation.

With respect to equalization payments, there was a commitment made by the Liberal administrations to enhance and give what was necessary to ensure equality through equalization and transfer payments, including health transfers. In the previous decade, more money was provided to health transfers and equalization payments in the years of the Liberal administration than ever before. The health care accord, achieved by the Liberal administration, ultimately seized the number of dollars that we see going toward health care today.

The government of today tries to take credit for those health care transfers, but it was a Liberal administration that came up with the formula. It was a Liberal administration that got rid of the old tax credit formula that ultimately guaranteed the ongoing financial security of health care transfers well into the future. Those are the types of ideas that Liberal administrations have brought forward.

The Conservatives, on the other hand, have been lacking in ideas and initiatives. In spending billions of dollars, they have been able to identify some things that they can do. In spending that type of money, there will be some good things. However, it is the bigger picture at which we need to look.

Let us look at that bigger picture of the budget. I know the government wants us to focus on the budget. What is the government really doing? It is decreasing services. For people who are on employment insurance and who try to talk to a live person, good luck. For people who are trying to deal with immigration issues and want to talk to a live person, good luck. It is just not going to happen. It is difficult.

The government has cut back on thousands and thousands of civil servant jobs. Those jobs provide real live services to Canadians. On the other hand, the government finds it quite okay to increase the number of members of Parliament. It is saying that we need fewer civil servants and more politicians.

On that point, the Conservatives have the support of the New Democrats. The New Democrats also want to see more politicians inside the House of Commons. If they tuned in to what Canadians really want, it is quality service from the civil service. It is difficult to achieve that when the government is cutting thousands of jobs. What Canadians do not want to see is what the Conservatives and the NDP want, more politicians. That is what I mean about bad priorities.

There is a need for us to recognize that jobs are important. Shortly after the last federal election, the leader of the Liberal Party said that the three most important issues facing us were jobs, jobs and jobs. Jobs are important. It is through jobs and employment that we can generate wealth and assist more people out of economic disparity.

Canadians expect the government to do things in regard to jobs. Manitoba has been fairly hard hit. Good quality jobs are what Canadians want. The aerospace industry is very important to my home province and to other provinces. When Air Canada got rid of its overall maintenance, first by bringing it over to Aveos and then Aveos disposing of it, where was the Government of Canada? Where was the Prime Minister?

In the Air Canada Public Participation Act, those jobs were guaranteed to Manitoba. Manitoba had a legislative guarantee to keep those good, quality jobs. The government did nothing.

The bottom line is that jobs are important and the government has dropped the ball in creating good, quality jobs.

Crime prevention is important to the residents of Winnipeg North and to all Canadians. The government can talk a lot about getting tough on crime. Some would ultimately suggest it has been dumb on crime. What we really need is to get smart on crime and prevent crimes. We need programs that will prevent crimes from happening. We are not seeing that sort of development.

We want to look at health care and the important role the government needs to play in providing strong, national leadership on health care. That has been lacking. We need a new health care accord that will guarantee it well into the future.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, the official opposition is very concerned about the way that Bill C-45 was introduced. On a number of occasions, several of our members have asked that various specific sections of the bill be separated from the bill, since, in our opinion, those sections should be examined in detail on their own.

Yet, since the beginning of this debate, the government has been saying that all of these measures were announced in the 2012 budget. The Minister of Finance has also said it, but the NDP does not believe that such is the case.

Here is an excerpt from the 2012 budget.

Over the next few years, the Canada Employment Insurance Financing Board (CEIFB) will continue to set the [EI premium] rate, but the Government will limit rate increases to no more than 5 cents each year until the EI Operating Account is balanced.

This measure appears in the 2012 budget, but we learned in the budget implementation bill that the Canada Employment Insurance Financing Board is going to be abolished.

I would like the hon. member who just spoke to explain to us how the government can justify saying that the measures in this bill are in the budget when that is clearly not true of a number of items in the bill.

Second, I would like him to explain why the government is not being transparent and is refusing to allow a number of items that have nothing to do with the 2012 budget to be examined separately.

[Patrick Brown, Conservative, Barrie, ON]

Mr. Speaker, I rise today to show my support for Bill C-45, Jobs and Growth Act, 2012 and I am pleased to see our government continue to focus so squarely on the economic challenges facing our citizens, our communities and our country. Bill C-45 would implement key measures from the economic action plan 2012, to help grow Canada's economy, fuel job creation and secure Canada's long-term prosperity.

Throughout the year, I had the pleasure of hosting budget consultations in Barrie with a variety of stakeholders. The one common theme throughout has always been a focus on job creation and economic growth as being something fundamentally important to people from all different sectors in my community.

Each stakeholder has provided insightful contributions from the different aspects of our city, but they all shared the same concerns, as do most Canadians: ensuring good jobs are available, keeping taxes low and continuing the sensible investments being made to achieve our common goals of long-term growth and prosperity.

Through the steady leadership of our Prime Minister and our Minister of Finance, we have seen Canada's economy expand in 11 of the last 12 quarters, since mid-2009. We have seen Canada create more than 820,000 net new jobs over the same period, and Canada has had by far the best rate of job creation in the entire G7 since 2006. We have seen Canada maintain its triple A credit rating through the period of economic downturn and uncertainty, and we continue to see Canada with the lowest net debt to GDP ratio and the lowest overall tax rate on new business investment in the G7.

Both the independent International Monetary Fund and the Organisation for Economic Co-operation and Development forecast that Canada will be at the head of the pack for economic growth in the G7 in the years ahead. I am particularly proud to share with the House what the head of the International Monetary Fund thinks of our government's handling of the economy since the global economic crisis hit in 2008. These comments came out just this week.

The IMF's Christine Lagarde declares that Canada's economy should be a model for the countries trying to fix their own financial systems. Just last week she said that Canada has been a leader in creating policies intended to rein in the buildup of household debt. She went on to say that Canada is identified around the globe by our values of coordination and consensus building, which have given our country what she called “influence beyond its years”.

Ms. Lagarde also applauded the decision of our finance minister to boost down payments on new mortgages for home buyers, as an example of household debt restraint that others should follow. She said:

All of these new reforms comprise the tools so far that will help us shape the future financial system. We must shape the system so it cannot again hold us ransom to the consequences of its failings.

A well-capitalized financial sector and a sound regulatory and supervisory system meant that financial institutions in Canada were better able to weather the 2008 global financial crisis than those in other countries. Indeed, the World Economic Forum has ranked Canada's banking system as the soundest in the world for five straight years. Our government is committed to maintaining this Canadian advantage.

Canada has made significant progress in implementing the G20 financial sector reform agenda and will continue to play a leadership role in promoting sound financial sector regulation internationally. Our government appreciates the IMF recognizing these important achievements.

However, in all this good news, the global economy remains fragile. Canada is not immune to the renewed weakness in the global economy, especially in Europe. In particular, Canada has been affected by the lower commodity prices that are dampening government revenue growth. We need to focus even more on jobs and promoting economic growth and realizing savings within government operations to ensure Canada's economic advantage remains strong into the long term.

At the same time, it is just as important that we continue making key investments in innovation and education to help make sure Canada continues to create good jobs and that Canadians are ready to fill them. We are supporting Canadian universities and researchers with a strengthened emphasis on projects that have a commercial potential.

Economic action plan 2012 took significant steps to encourage entrepreneurship, innovation and world-class research, with over $1.1 billion in significant investments for research and development, $500 million for venture capital, support for increased public and private research collaboration and much more.

Just last month, I was proud to see this have an effect in my own riding of Barrie, Ontario. I was proud to be on hand officially to open the IBM data and research centre in the south end of Barrie. This new data centre is part of a much larger project.

The federal government's $20 million investment was a catalyst for IBM's $213 million initiative to create a southern Ontario smart computing and innovation platform. Our government's investment targeted the creation of 145 full-time positions, high-skilled, high-paying, in three different cities in southern Ontario, including 45 positions at the Barrie site. These are not job transfers; they are new hires.

Our government's investment is also creating a research and development centre within the IBM site that is going to do research on clean energy, environmental systems and neural mapping. It is state-of-the-art research and it is exciting to see what a private and public partnership can do to create jobs in southern Ontario.

I would like to tell the House of another example of this focus on innovation by our government, which I have seen work first-hand in my riding. This summer, in August, I was on hand to see a company transfer its manufacturing from China back to Barrie. This company had outsourced its production of 18 jobs to China and decided to bring them back. This summer it opened up its manufacturing in Barrie again and with a $900,000 repayable loan from FedDev Ontario it was able to repatriate those jobs. This is an important sector. Southmedic is in the medical device sector, and right now this sector is valued at $6.4 billion in Canada. That is just the tip of the iceberg of what Canada is capable of, to see this sector grow.

These are two great examples of the types of partnerships that government is forging. These are the kinds of partnerships that will create a better future for all Canadians and, most important, new jobs.

Another great partnership that the economic action plan pledged to carry on was that of the continued cleanup of Lake Simcoe. In 2008, members may remember that this government made an unprecedented $30 million investment into the cleanup of Lake Simcoe. It was an extremely welcome initiative because Lake Simcoe and Kempenfelt Bay are certainly jewels that we treasure in Simcoe County. Phosphorous levels were at an all-time high, and we needed action to help reverse that trend because high phosphorous levels mean excessive weed growth. In Lake Simcoe it meant reduced marine habitat. We could not have this happen to what really was a jewel in our community.

The health of our lake is paramount to the future of the city of Barrie and all of Simcoe County and the surrounding areas. Tourism is vital to our local economy, and Lake Simcoe is certainly at the heart of the tourism market. I am happy to report that, since that investment of $30 million, phosphorous levels have gone down every year. We are making tremendous strides on the cleanup of Lake Simcoe, to make sure that future generations in Barrie and Simcoe County will have the same pristine lake that we have been able to enjoy over so many decades.

Economic action plan 2012 continues the commitment to cleanup Lake Simcoe. The five-year cleanup fund had expired, but the budget expressed a commitment to renew this fund and to continue the cleanup of Lake Simcoe. That is tremendously appreciated in our community, and I am so glad that our Minister of Finance had the wisdom to recognize that this was a fund and a partnership that was working. The federal dollars, leveraged with funds from the Lake Simcoe Region Conservation Authority and all the municipalities in Simcoe County, have made a profound impact on our local environment.

I am also pleased to see that Bill C-45 would extend the hiring credit for small businesses for another year. The credit of up to $1,000 against EI premiums is a great help to encourage more small businesses. Small businesses are the engine for job creation in Canada and are indispensable in their role as job creators. I see that every day in Barrie. Small businesses are at the heart of our community and it is great to see a budget that would help small businesses.

I realize I am limited in time. I want to commend my colleague, the Minister of Finance, on the jobs and growth act, 2012. The bill builds on terrific work laid out in the economic action plan and it meets the economic challenges facing our country head-on. On behalf of my constituents and the various stakeholders in Barrie, I want to sincerely thank the minister and his team for their hard work on what will be an excellent investment and understanding of the Canadian economy.

[Daryl Kramp, Conservative, Prince Edward—Hastings, ON]

Mr. Speaker, I am tremendously pleased to stand today and speak to Bill C-45, the second budget implementation bill, the jobs and growth act of 2012. I have heard the opposition say on many occasions that Bill C-45 is a large bill. Yes, it is, and necessarily so. One might ask why. It is because it is the comprehensive bill required for these economic times. It is comprised of hundreds of pages of technical amendments, as well as concrete policy that reflects, considers and demands our immediate attention.

Through extensive consultations with stakeholders, sector leaders, academics and everyday Canadians, we see a better way to keep our country economically robust, going forward. Bill C-45 is representative of broad-based opinion across this country. As such, our Conservative government was given a strong mandate in the last election to stay focused on what matters: creating jobs and growing the economy.

A strong economy is not just something that affects a few. It ultimately means more money in Canadians' pockets for their groceries, rent and child care expenses. It means a difference to many families that have been able to tuck away a few bucks in a savings account at the end of the month instead of living paycheque to paycheque or, sadly, in many cases, no paycheque at all. It could also mean a young couple can turn a dream of owning a house into a reality. It means that a small business owner can hire an extra couple of employees or more this year, or a farmer can continue to do what his father and grandfather have done on their land for generations.

What this bill does not do is what the socialist opposition on the other side believes the panacea for all circumstances is: raise taxes. Of the many tax increases the opposition has proposed, and we have heard it many times in the House and it bears repeating, the $21 billion carbon tax would decimate industry, transportation, commerce and negatively affect every citizen in the country. We vehemently disagree with that approach. Raising taxes is not the answer. Raising taxes would be like killing the goose that lays the golden egg. Raising taxes raises costs, decreases productivity, decreases competitiveness and, of course, kills jobs. Raising taxes crushes entrepreneurship and affects both small and large businesses. No one is exempt. It would result in no jobs and no money for groceries, housing, child care or any of the social necessities.

Bill C-45, in contrast, has initiatives that would build a strong economy, support Canadian families and communities, and create jobs. Importantly, it would respect taxpayers' dollars because we know how hard everyone works for every dollar earned. Let me take a moment to go over some of the initiatives that would create jobs and maintain and grow our strong economy.

First, let us talk business. Speaking from personal experience, I can assure everyone that as a small business owner for over 38 years who has employed hundreds of people, both I and our Conservative government understand and recognize that small business plays a tremendous and pivotal role in the economy and in the creation of jobs. Last year, 534,000 employers benefited from the hiring credit for small business. In Bill C-45 that credit of up to $1,000 will be extended for another year, which will encourage more hiring of employees and lower total business payroll taxes by $205 million. We will extend the capital cost allowance, creating an environment for more investment and more jobs.

The opposition criticizes this by saying we are giving money to large and small businesses. That is categorically wrong. Businesses must invest in capital assets, building or equipment, in order to receive that taxable credit. Let me use the example of a company in my riding, one of many. Proctor & Gamble is a large company and has invested significantly in new production lines by expanding facilities and purchasing equipment.

This investment and job creation results, of course, in more profitability for the company, but subsequently more taxes are then received by the various levels of government: federal, provincial and even municipal from the property tax point of view. More personal tax is also received from either added employees and/or the continuation of the good jobs they are paying taxes on now.

In addition, there are all kinds of side benefits from having a strong business community. This company, as an example, and its employees, are generous contributors to local fundraising, whether it is to the United Way or health care initiatives. The spinoff to our communities is absolutely tremendous. That is the genesis of job creation.

Jobs will also be created with many measures that we have introduced to promote interprovincial trade, to improve the legislative framework governing Canada's financial institutions and to facilitate cross-border travelling where the least delay is critical. At the border, time is money. Time spent on delay costs the Canadian economy and it costs us jobs.

We also need to remove bureaucratic obstacles and reduce fees for Canadian grain farmers, and we are doing that with the Canada Grain Act.

We are supporting Canada's commercial aviation sector, where we are leaders in the world. As an example, CAE simulators, a company out of Montreal, just had a new investment at CFB Trenton and other areas. It is taking advantage of our capital acquisition cost of new aircraft. Their training facilities are a huge boon for many areas and certainly for jobs in Canada.

Very important is our government's commitment to helping Canadian families and seniors. Bill C-45 contains measures to improve the registered disability savings plan and implement the tax framework for pooled registered retirement plans.

Initiatives in Bill C-45 also promote clean energy and promote the neutrality of the tax system by expanding tax relief for investment in clean energy generation equipment. This helps to keep Canadian dollars at home, which creates jobs and stimulates local economies.

We respect the Canadian taxpayer. We are moving to ensure that the pension plans of MPs, senators and federal public sector employees are not only sustainable, but financially responsible, fair and consistent with pension plans in the private sector.

We are proud that Canada has achieved the strongest economic performance of the G7, as verified by literally all international bodies, from the World Bank to the International Monetary Fund, and the list goes on.

Over 820,000 net new jobs have been created since 2009. These are numbers that the entire House can and should be proud of, but we know it is not enough as long as there are still too many Canadians looking for work.

On top of that, we have challenges. The global economy remains in a delicate condition, particularly in Europe and in the U.S., where they are encouraging and actually accumulating debts in excess of $1 trillion a year. That is definitely troublesome. Because of issues beyond our control, we must continue to focus on getting Canadians working and providing an economic climate where entrepreneurs and businesses are able to flourish and continue creating jobs.

The bill addresses, recognizes and builds upon our commitment to return to a balanced budget. We must pay down our debt. Debt is our mortgage on the future of our children. Canadians should be able to look ahead and see a bright future for themselves and their children. Our government is committed to working hard to make that a reality.

I would encourage members on all sides of the House. We have our challenges when we have different opinions, viewpoints or perspectives on an issue, but we can all commit to a passion for improving the lives of our citizens and our country. I certainly welcome comments from my colleagues on the other side of the House and I hope we can try to find a way to continue to work together to better society for Canadian citizens.