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

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my hon. colleague for her speech. I really enjoy asking this member questions about the environment, a subject she knows very well. She makes an important contribution here in the House of Commons.

The Conservatives deleted the word “environment” from their website when the NDP pointed out that the Navigable Waters Protection Act was in fact an environmental law and that the website explicitly said that it protected the environment. A few minutes or hours later, all references to the word “environment” were deleted from the website, as if by chance. I do not imagine it was planned.

What does my colleague think of what the Conservatives did? Does she believe that that legislation helped protect the environment?

[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.

[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.

[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 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.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I want to thank my colleague from Brant County. I know that his background is in small business.

The statistics that the member has talked about in Brantford speak exponentially about not only the policies and legislation that has been brought forward by this government. If we follow this man back to his riding, members would understand the commitment he has had to rebuilding part of his county, Brantford, and I thank him for that.

I am going to follow up on the question from a colleague across the way because it was sort of minimizing of the significance of small businesses. We know that 98% of the businesses in this country are small businesses and they hire over 50% of the people.

I wonder if my colleague could expand a little beyond what the extension of a tax credit for small business is about. What has happened over time that it has built? This government builds continually from one budget to the other. What can the member help us with in terms of small businesses?

[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.

[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.

[Dean Del Mastro, Conservative, Parliamentary Secretary to the Prime Minister and to the Minister of Intergovernmental Affairs]

Mr. Speaker, I was very interested in what the member had to say. She is a very kind and considerate member of Parliament. We do not always agree on issues, but disagreeing on issues of importance is hardly a crime.

One of the things the member brought up a number of times was the gutting of environmental regulations. I represent a large portion of rural Ontario, not an urban Toronto riding. A number of small municipalities, farmers and producers, for example, have to deal with overlapping regulations that cost a lot of money and really hurt rural economies in places like northern Ontario, eastern Ontario and, in fact, throughout the country. One thing the government has sought to do, because we have listened to municipal leaders, farmers and rural leaders, is get to a position of one project-one approval. That is a sensible position. The standards are identical for one project-one approval.

I would like very much for the member to speak to this. Does she believe in private property ownership rights and, if so, does she support the idea of one project-one approval?

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

Mr. Speaker, I thank the member for his very kind words about me. Respect for our colleagues across the House is so important.

Many Canadians own their own homes and their own property. Of course we respect their rights with respect to their property. What Canadians expect for this and for future generations is that we are good stewards of our land, air and water. When we remove 27 of the 37 designated Canadian heritage rivers so they will no longer be subject to environmental protection and regulation, Canadians are concerned about that. The air we breathe, the food we eat, the water we drink, these are fundamental to our survival as a country and as a species. Canadians understand we need strong environmental protection, not gutted environmental protection, in order to defend the interests of Canadians.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I would like to pick up on the member's closing comments. Along with environmental research, the Environmental Lakes Area research station will now be closed under this administration.

Canadians as a whole recognize the importance of fresh water and research so we can maintain quality fresh water, which will be a wonderful commodity not only today but well into the future. I ultimately argue that the importance of the research station is becoming greater, not diminishing, yet we are seeing the government cut and close the research station.

Would she provide comment on that decision by the government?

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

Mr. Speaker, the closing of the Experimental Lakes Area project is one that has deeply troubled so many Canadians. This unique project brought together some of the finest scientific minds and was doing cutting edge research for such a long period of time. This was addressed in the spring budget implementation act. It is part of a growing trend of the government to silence, or layoff or underfund projects that it does not want to hear from.

We just have to look at the weather system, Hurricane Sandy, that has come up through North America over the last few days to see the importance of climate scientists and the kind of research that was done at the Experimental Lakes Area project. This is the kind of cutting edge work we should be investing in and not silencing.

[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.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I always enjoy listening to the Conservatives talk about the budget. They often talk about their economic record, but they seem to have a selective memory when it comes to the economy. They often forget to mention that we currently have the largest deficit in the history of Canada because of the Conservative Party. We also have the largest trade deficit in the history of Canada. That is another fact that the government seems to overlook fairly often. In addition, there are 300,000 fewer manufacturing jobs than there were before the recession. The Conservatives seem to forget about all these facts in their speeches.

Can the member talk about these very real facts? Are there any solutions?

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

Mr. Speaker, it is important at this stage to remind my hon. friend that since the depths of the recession we have created 820,000 net new jobs, one of the best records in the OECD. What my friend also forgets to mention is that Forbes magazine says that Canada is one of the best countries, if not the best country in the world, in which to invest.

He also needs to realize that we are not just talking about investment. We have been doing the things that a country must do to meet the challenges of the future. I admit we do still have too many people out of work and that is why this budget actually attacks that. How does it do it? It does it by making sure that small businesses continue to receive Government of Canada support by lowering their taxes and encouraging the hiring of new employees, as I mentioned in my speech, the $1,000 tax credit for hiring. This is huge in Northumberland—Quinte West and the member needs to know that this has received approval from almost every organization that represents small businesses as well as the Northumberland Manufacturers' Association.

The member quite rightly says that there are too many people out of work. We agree with that. That is what this budget does. It encourages people to find work and encourages small businesses to hire more people.