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

[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.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, it is my privilege today to rise and speak to Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures. I want to start by talking about process, roles and responsibilities.

When I was elected as a member of Parliament to represent my constituents in these hallowed halls of our parliamentary democracy, I came here with the understanding that I had a key role to play in budgetary oversight, holding the government accountable for the decisions it makes in spending the hard-earned money of Canadians, and paying a great deal of attention and due diligence when it comes to fiduciary matters. However, last spring, I was prevented from doing that by the Trojan horse omnibus bill, a bill so thick and dense it is bigger than many telephone directories across this beautiful country.

During this process, the feedback from Canadians was that this was not parliamentary democracy and not acceptable. I heard from hundreds of my constituents and other Canadians who were a little shocked by a government burying so much and making such drastic changes in an omnibus bill, though when it was a government in waiting, it was always talking about transparency and accountability.

One would have thought that after having buried the deletion of immigration files, the gutting of environmental protections and many other areas that were in the previous bill, including changing the age for old age security, the Conservatives would have learned a lesson and decided to do things differently. However, it was a case of oh, no, when we came back this fall to face Bill C-45, the second budget implementation act, still the size of a phone book.

Once again, as an elected parliamentarian representing the beautiful riding of Newton—North Delta, a riding that is struggling with many issues that need to be addressed right now, I am faced with a piece of legislation that purports to be a budget implementation bill, but actually includes many new items.

I was in the House when the Minister of Finance told my colleagues to go and do their homework, that we had the budget and there was nothing new in it. However, it only took until the next morning for the media to pick up on all the new stuff that was in the budget. What became evident was that the minister himself had not done his homework and was not aware of what was in his own budget or was trying to fool Canadians by burying things in the budget and pretending they were not there.

One of those is the changes to our environmental protections such as the Navigable Waters Protection Act. People keep saying that it is not about water. However, as I keep asking: What do boats and ships travel on if not water? What are we thinking about navigating? It is not roads but waterways. Therefore, I do not see why there is that separation. Once again, here we are as parliamentarians being denied the right to exercise our fundamental responsibility and scrutinize and debate a budget.

I have heard colleague after colleague stand in the House to urge the government and the members across the aisle to just give us unanimous consent so that we can take portions of this budget to the appropriate committees—and there are not 45 of them—where these can be given due diligence and we can examine and amend these portions of the bill and engage Canadians in some of the discussions.

Once again, unanimous consent has not been given. My colleague from Halifax tried again today, and I was quite moved by her plea for the other side to be reasonable. However, the Conservatives were not reasonable.

One of the key points I keep hearing of this budget is that it is about job creation. However, the independent Parliamentary Budget Officer says that this budget implementation bill would actually cost over 43,000 Canadian jobs. Here we have an independent Parliamentary Budget Officer saying that, yet I hear colleague after colleague across the aisle keep talking about how this is going to be such a great boon to job growth. We know that is not so.

I am getting a little tired of all the breaks in this budget for small businesses. In my own background my family has been engaged in running small businesses and in my community the engine of our economy is our small family-owned businesses.

What great measure do we have built into this budget? What I am saying is that it does not go far enough. We need to support our small- and medium-size businesses by giving them the breaks, not the wealthy corporations that take the jobs and money out of the country. However, once again the government fails small- and medium-size businesses in this budget. All it has done in this budget is to provide them with a maximum of $1,000 in credits on new EI employer payments. That is it. To add insult to injury, that is only available to employers in the 2012 tax year.

By the time Bill C-45 passes through all stages, this tax credit will actually have expired. I say this even though the government has moved a time allocation motion so that the bill will pass through all of the stages at lightning speed, because the government has majority that it is determined to abuse.

The small- and medium-size businesses I talk to my riding need a lot more attention than this. They are very worried about where the government is taking us.

I am not going to spend too much time talking about environmental issues, because my colleague does such an excellent job on that at committee. She has raised those concerns ad nauseam.

Like other MPs, I get amazing emails from my riding. My colleague from Halifax read some of those into the record today. This morning I was responding to emails from my riding opposing the Enbridge pipeline and the gutting of environmental protections, and also about the lack of support for our young people to go out and get jobs.

I am getting so frustrated and tired of the constantly put idea that we are growing jobs, when I know it is the temporary foreign worker category that has increased by 200%. I want to see a real job-growth strategy by the government, instead of words, words and more useless words.

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

Mr. Speaker, I am going to ask more or less the same question I asked the member earlier. Either she did not understand the question, or she did not want to answer. It was about navigable waters.

In her speech, the member said that today's bill was exactly what the government tabled seven months ago: the 2012 budget, a book that several members have shown us. That was the first thing she said. However, changes to navigable waters in Bill C-45 were not mentioned in the March 2012 budget.

Can she explain why Bill C-45 includes references to the Navigable Waters Protection Act even though the March 2012 budget did not mention it? Can she explain why references to the environment were removed from the Government of Canada's website after we pointed out that the Navigable Waters Protection Act is in fact an environmental law?

[Lois Brown, Conservative, Newmarket—Aurora, ON]

Mr. Speaker, I said 11 standing committees, not 45. I referenced Bill C-45.

Let me repeat. Eighty-three per cent of all businesses in York Region, home to over one million people, have less than 20 employees. PRPPs will be a very valuable tool for employers to help them, first of all, to retain good staff and, second, to provide pension options to those who currently may not participate in a pension plan. Third, it will allow many entrepreneurs to better save for their retirements, such as those who operate a family business and who regularly put in 70-plus hours or more a week to support their families and to provide opportunities for others to do the same.

It simply is not fair that entrepreneurs, those who take on the risk, many by mortgaging their own assets and taking out personal loans to create jobs and opportunity across our country, do not have access to a company pension plan nor have the ability to offer one to their employees. Bill C-45 would correct this inequity.

I am also pleased about the lower corporate tax rate. We know that lowering corporate tax rates creates jobs. How do we know this? The proof is in the pudding. Let us just look for a moment at Canada's economic record.

Since 2006 our corporate tax rate has been steadily declining from 22% to 15%. As everyone is no doubt well aware, in 2008-09 Canada and the world were faced with the worst economic downturn since the Great Depression. That being said, unlike other countries Canada has emerged from that downturn in a relative position of strength. For example, nearly 820,000 new jobs have been created since July 2009, the strongest job creation record in the G7. Forbes magazine ranks Canada as the best place for businesses to grow and create jobs, and all the major credit rating agencies, Moody's, Fitch and Standard & Poor's, have affirmed Canada's AAA credit rating. Canada's debt to GDP ratio is by far the best in all the G7.

These results did not happen by chance. They are the result of a government focused on jobs and economic growth, one that does not get sidetracked and that clearly articulates its goals and sets out a methodical plan to achieve them.

I remind Canadians that in 2006 when this government came to office, it set out a long-range plan to foster strong and sustainable economic growth. It set out to show the world that we were a modern, dynamic and tolerant country. There were five goals: first, to establish the lowest tax rate on new business investment in the G7; second, to chart a course to eliminate Canada's debt; third, to reduce unnecessary regulation and red tape in Canada's marketplace; fourth, to create the best educated, most skilled and most flexible workforce in the world; and fifth, to build the modern infrastructure we need. That was six years ago and today we remain focused on achieving these goals.

We are keeping Canada's corporate tax rates low, lowering taxes on families, supporting a market economy with a non-interventionist government, and implementing a pro-trade agenda. These policies are contributing to Canada's relative economic success.

The opposite side of the House, however, advocates for higher taxes, such as the NDP's $21 billion carbon tax proposal. In this high-tax scenario I argue that today's global economy businesses would simply choose other places to invest. Corporations would have a thinner bottom line and would not be able to hire or keep as many employees. This would lead to increased unemployment and lower government revenues. Government would have to take on more debt to finance its activities. What happens when a government has to pay more to service its debt? Investor confidence fails and with it, business investment and economic growth. Thankfully this is not the case and I want to assure residents in my riding of Newmarket—Aurora that this government will never subscribe to high-tax schemes.

I would like to highlight another implementation measure in Bill C-45 that is important to Newmarket—Aurora. The amendments to part IV of the Employment Insurance Act allow the extension of the hiring credit for small business to 2012.

Small businesses are the engine of job creation in Canada, as they are in Newmarket—Aurora. In recognition of the challenges faced by small businesses across the country, budget 2011 announced a temporary hiring credit for small business of up to $1,000 per employer. 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. Extending the temporary hiring credit for small business for one year would result in a credit of up to $1,000 against an employers' increase in 2012 EI premiums, over those paid in 2011. This temporary credit would be available to approximately 53,000 employers whose total EI premiums were at or below $10,000 in 2011, reducing small business 2012 payroll costs.

In conclusion, I believe Canadians expect their government to work in their best interests. They want their government to stay focused on jobs and the economy. The best way to do this is to move forward with the legislation so we can ensure that the many important measures it contains, essential to ensuring the continuation of our recovery, are done. That is what Canadians want and that is what this government intends to do.

[Libby Davies, NDP, Vancouver East, BC]

Yes, I know. I'd still like to read it into the record, because I know that the government members will insist that it only be done in camera, which is very unfortunate.

I will be moving that the committee immediately commence a study on the matter of sections of Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012, and other measures, which directly fall within the mandate of this committee, namely part 4, division 13, clauses 269 to 298, Hazardous Materials Information Review Act.

I know that the government members will only allow this to be debated in camera, which is unfortunate, but it is something that we should be discussing and studying at this committee.

I'd like to—

[Lois Brown, Conservative, Parliamentary Secretary to the Minister of International Cooperation]

Mr. Speaker, I am very pleased to stand in the House today to speak to Bill C-45, the second implementation bill relating to the jobs and growth act 2012.

I would like to first preface my remarks by reminding my colleagues on the opposition benches that Bill C-45 provides the mechanisms to implement the provisions outlined in budget 2012. That legislation was tabled a full seven months ago, on March 29, 2012.

Budget 2012 has received more debate than any other budget bill in this House. I also remind my colleagues that Bill C-45 will be sent to 45 different standing committees for further scrutiny and debate, so I think there are adequate opportunities for discussion and debate.

I would like to comment on a few of the enabling legislative items in Bill C-45 that are especially appreciated by the residents in my riding of Newmarket—Aurora.

Both Newmarket and Aurora are situated at the top of the GTA, in York region. It is one of the fastest growing areas in Ontario, and residents there have clearly articulated to me that they want their government to remain focused on jobs and economic growth.

That is why, for example, they are very pleased with the implementation measures in Bill C-45 that enable pooled registered pension plans to become a reality.

Bill C-45 amends the Income Tax Act to accommodate pooled registered pension plans, or PRPPs. It sets out the tax treatment for contributions to and distributions from PRPPs. It also deals with a number of related issues, such as the registration of pooled pension plans and transfers on the death of a PRPP member.

I cannot say enough about how important PRPPs are to entrepreneurs and working Canadians in my riding of Newmarket—Aurora.

In York region, home to over one million people, 83% of all businesses have fewer than 20 employees. This will be a very valuable tool for employers. It will help them, first, to retain good staff, and second, to provide pension options to those who currently may not--

[Megan Leslie, NDP, Halifax, NS]

Mr. Speaker, I, along with my NDP colleagues, oppose this monster budget bill. I oppose it on both content and process. First I will talk about the process.

The Conservatives talk about the unprecedented level of debate and hours of debate on this bill and the previous budget bill. Even the member for Crowfoot, who spoke before me, talked about unprecedented debate in the House. Let us review that to see if they are right.

Bill C-20, which was what the budget bill was called in 1991, was six pages long and between first and third reading in the House of Commons, there were 192 days of debate. In 1995, it was Bill C-76 and it was 48 pages long. There were 78 days of debate in the chamber. Bill C-32 in 2000 was 29 pages long, it went down a bit in size, and there were 60 days of debate. Bill C-33 in 2004 was 76 pages long and it received 79 days of debate in this chamber.

What happened this year? This spring the omnibus budget bill touched or outright repealed over 70 laws. A third of that budget bill was about gutting environmental legislation. Most pieces of the budget had not been debated in the House before and most of those pieces were not campaigned on.

I do not remember the Conservatives campaigning in the 2011 election saying that they were going to increase OAS eligibility from the age of 65 to 67. I do not remember them campaigning on the fact that they were going to diminish health care transfers. In fact, during that election, I was the health critic for the NDP and I remember the opposite. The Conservatives campaigned on maintaining and increasing health care transfers.

We also cannot find any of these pieces in Conservative Party policy. If we turn to its policy, we will not find the Conservatives saying that they believe they should raise the age that people can collect their OAS.

The member for Crowfoot said that we had this budget. that this stuff had existed for so long and we should have read it. I would love for any member on that side of the House to tell me anything, even one word, about what the changes were to the Assisted Human Reproduction Act in the last omnibus budget bill, never mind what that had to do with the budget. I think most Conservatives would be hard pressed to even repeat the phrase “assisted human reproduction”.

We had Bill C-38 in the spring that was 425 pages long and there were 54 days of debate. Here we are again this fall with the second omnibus budget, the son of omnibus. I do not know how long this debate will go, but the government has already moved time allocation. I cannot imagine it will be very long. I cannot imagine it will be the heady days of 1991 when there were 192 days of debate, I highly doubt that, and we have a bill that is over 440 pages long.

The length of debate is important. Maybe the Conservatives do not think it is important because they do not like to listen when the NDP brings forward reasonable ideas. They just want to sit with their eyes closed and their hands over their ears. However, the length of debate is important for democracy because it allows entry points for civil society to engage with the legislative process. Think about it. How does civil society actually engage with this process? People cannot come here to vote or give speeches in the House, but there are entry points for them. They write letters to their MPs. They write letters to the editor. They testify at committee. They come up with good ideas and send them to us via social media. They phone us and have meetings with us in our communities. They have brown bag luncheon seminars in their workplaces to talk about how this will impact them. Sometimes they even take to the streets. The length of debate allows that process, that moment for civil society to engage with the legislative process.

The NDP brought forward amendments to the bill at committee based on what the community and civil society had told us. The opposition brought forward over 800 amendments in the House based on what civil society said, but we had 54 days of debate where that entry point for civil society was eliminated because not one amendment was made. What is the result because the government did not listen? In this omnibus monster budget, there are amendments to amendments that were made in the last budget bill.

Can members imagine amendments to amendments in the same year, as if we needed more evidence that the Conservatives are bad managers?

The process is undemocratic. Bill C-45 is a massive omnibus budget bill that makes amendments to a wide range of acts. Once again, the Conservatives are trying to ram the legislation through Parliament without allowing Canadians and their MPs to thoroughly examine it. They need to remember that we are their members of Parliament. It is our job to look at the bill properly, make amendments and suggest ideas. New Democrats are proud to stand in the House and actually do their job.

I fear that I am quickly running out of time, and I wanted to share some words from Canadians. I know the Conservatives will not listen to the NDP, because they do not like reasonable, good, sound ideas, but maybe they will listen to Canadians.

I have some letters I received from constituents.

The first is from Rebekah Hutten, who wrote:

My name is Rebekah Hutten, and I am a university student deeply concerned about [the budget].

I am writing to let you know how disturbed I am by this furtive endeavour to use an omnibus budget bill to completely wipe out years of progress Canada has made on environmental protection.... For the sake of the environment, I implore you to demand the non-budget matters—all environmental changes—be removed from C-38 [the last budget bill] and put forward as stand-alone legislation.

We took that advice and tried to do that, but the Conservatives refused to listen. We are trying to do that with this budget bill as well. We will see if they come around to their senses.

I received another letter from Bill Davidson, who wrote:

I am one of your constituents in Halifax, and I wanted to write to you to express my displeasure, or rather horror, about bill C-38, the conservatives' omnibus “budget” bill. This is not a budget, it is one of the most anti-democratic pieces of legislation ever tabled in a Canadian parliament, complete with wholesale destruction of anything resembling environmental policy. It is anti-environment, anti-science, anti-common sense, and insulting to Canadians from coast to coast to coast.... Please [member of Parliament for Halifax], don't let these guys get away with this without putting up a fight.

Leagh and Diane Colins wrote:

Our fathers and grandfathers fought for Democracy—many giving the ultimate sacrifice of their lives against tyranny and government control. Censorship against free speech and the right to protest against that which we deem to be detrimental to our society is what they fought against. This current government disrespects their memory.

Our children and grandchildren will not have much of a world to grow up in when we allow the short-sighted goals of profit to overwhelm Canada's proud legacy of its environment and wildlife.

We most emphatically urge you to speak out against this bill and these measures to still the voice of opposition to environmental destruction.

In closing, I would like to seek unanimous consent to move the following motion: That notwithstanding any Standing Order or usual practice of the House, clauses 316 to 350 and Schedule 2 related to changes to the Navigable Waters Protection Act, and clauses 425 to 432 related to the changes to the Canadian Environmental Assessment Act, 2012 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 Navigable Waters Protection Act and the Canadian Environmental Assessment Act, 2012”; that Bill C-47 be deemed read a first time and be printed; that the order for second reading of the said bill provide for referral to the Standing Committee on Environment and Sustainable Development; that Bill C-45 retain the status on the order paper 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.

We are proposing this motion to ensure that the bill is split for proper study at the correct committee, and specifically to ensure that the Navigable Waters Protection Act is reviewed at the environment committee, where it belongs, and which government websites would have supported until about seven days ago.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I was going to get up on a point of order on this, but the member was in his own little fantasy world and I did not want to interrupt him.

I have a bill called Bill C-45. The first reading was October 18. The member across said that we had been discussing it for three months. Then he went on to say that the bill has been around for 20 years.

Is this his fantasy world? Are we talking about the same calendar year and the same bill?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I am pleased to rise today in the House to speak to Bill C-45.

As a number of members who spoke before me have mentioned, it is absolutely ridiculous for the government to include all kinds of measures that have nothing to do with the budget. There are all kinds of clauses in the bill that have nothing to do with the budget. Content aside, anyone can see that the Conservatives are going about things the wrong way and that they do not take this seriously.

It is unrealistic for a single committee to study a bill in so little time, and this shows the Conservatives' bad faith. The government itself is unable to assess the true impact of its budget on job losses or even job creation, or the effects it will have on Canadians. Yet the Conservatives did nothing to allow the Standing Committee on Finance to properly study the bill.

The Standing Committee on Finance is working on other matters, such as pre-budget consultations. It has been allocated little time to study this more than 400-page bill, which contains measures that have nothing to do with finance or the budget.

Canadians are not fools and know that the government has tried on several occasions to quietly pass measures that will be disastrous for Canada. I do not have much time, but I will attempt nevertheless to highlight some of the main elements of this budget.

In my opinion, one of the few positive measures in the budget is the elimination of the penny. That is good news for Canada. As a result of inflation, today this coin has practically no value and costs more to make than what it is worth. The Government of Canada will save $11 million a year with this measure, and businesses and consumers will save a lot of time when making cash transactions. This measure is not in the bill, but I wanted to mention it because I had not had the opportunity to do so previously.

Returning to a balanced budget is also a good point and necessary for Canada's economic well-being. There again, it all depends on what you cut and how you do it. Although I agree with the government that we should cut the fat, we must make a distinction between what is and what is not useful.

The government constantly tells us that services will not be affected, but no one has provided any studies or reports confirming that items cut are actually optional. The government has decided to cut 10% from one service and 5% from another without having any idea of the impact.

The Liberal Party wants facts, expert reports and studies. However, as we have seen for a number of years now, the majority Conservative government is improvising and still refusing to accept reality, preferring to blindly trust its ideology. The Prime Minister himself recently confirmed that any organization that is in conflict with the Conservative ideology will no longer receive public funding.

Bill C-45 continues the reckless Conservative abuse of power. The omnibus budget bill is another example of the Conservatives steamrolling of democracy, as we have said again and again, forcing unpopular, non-budgetary measures through Parliament and trying to do it with as much speed and little debate and scrutiny as possible.

Bill C-45 is a 414 page document with 516 clauses, amending over 60 different pieces of legislation. The measures that do not belong in this finance bill, as my other colleagues have spoken about, include the rewriting of laws protecting Canada's waterways, the redefinition of aboriginal fisheries without consulting first nations and the elimination of the Hazardous Materials Information Review Commission.

By rushing these massive omnibus bills through Parliament, the Conservatives deny Parliament and Canadians the opportunity to carefully consider the proposed laws to identify flaws and propose solutions.

Bill C-45 actually includes a number of measures to fix mistakes in the last bill, Bill C-38, its predecessor, including omissions in the amended Fisheries Act regarding the passage of fish, and the poor drafting of transitional provisions in the new environmental assessment law.

There is ambiguity around the ministerial approval process for certain investments by public investment pools as well.

Today, a majority of Canadians are worried about growing income inequality, between both individuals and regions. The Liberal Party has put forward motions and discussed it in Parliament. Again, we do not see anything in the budget that addresses this income inequality that Canadians are worried about.

An area where the budget bill could actually create jobs, and in turn does not, is an area where it actually slashes investment tax credits that encourage economic growth and job creation, like the scientific research and experimental development tax credit, the Atlantic investment tax credit and the corporate mineral exploration and development tax credit.

The Conservatives are using Bill C-45 to avoid lawsuits, like exempting the Detroit-Windsor bridge from environmental laws and regulations such as the Fisheries Act, the Species at Risk Act and the Canadian Environmental Assessment Act, 2012. If the Conservatives want to avoid lawsuits, they should just follow the laws that are in place instead of weakening the ones that are meant to protect our environment.

One example I would like to cite where there has been a little back and forth is on the cuts to research and development. The Liberals oppose the government's plan to cut the SR&ED program. The SR&ED program is a federal tax incentive program that encourages Canadian businesses of all sizes and in all sectors to conduct research and development in Canada. It is the largest single source of federal government support for industrial R and D. The R and D program gives claimants tax credits for their expenditures on eligible R and D work done in Canada. The government has opted to decrease these credits, promising to reinvest the savings into direct grants. The grants mean that the government would pick which companies would benefit from government support, rather than providing an across the board tax credit available to any business undertaking R and D. A company may not know anyone in the government and have a great idea.

Instead of making the R and D program much better, the government decided to make four changes: reducing the general SR&ED tax credit from 20% to 15%; reducing the prescribed proxy amount, which taxpayers use to claim the R and D amount from overhead expenditures, from 65% to 55% of salaries and wages of employees who are engaged in R and D activities; removing the profit element from arm's length third-party contracts for the purpose of the calculation of R and D credits, by allowing only 80% of the value to be counted toward eligible expenditures; and removing capital from the base of eligible expenditures for the purpose of the calculation of R and D.

I could go on. I have about three pages of notes on this subject.

My point on R and D is that, as a former member of the finance committee—I chaired it and I was vice-chair—I heard numerous groups, whether accounting groups, business groups or tax groups. They all said to make the program easier. The government has done what it has done for other programs, slightly tweaked it, made it more complicated, reduced percentages and increased certain percentages. It decided to just cut things and has taken a whole lot of money out of there, and politicized it by saying it would now give out grants.

I understand my time is coming to an end. I will be taking questions. I will not be supporting the bill in the form it is in.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, as the member of Parliament for Renfrew—Nipissing—Pembroke, I take great pleasure in speaking in favour of the speedy passage of Bill C-45, jobs and growth act, 2012.

I am also pleased to congratulate the Minister of Finance for the outstanding job he is doing on behalf of all Canadians.

Canada is recognized internationally for the sound economic and fiscal policies of our Conservative government. Leadership on the economy is something that average Canadians who work hard, obey the law and pay their taxes understand.

While there are many benefits to passing Bill C-45 for the people of Renfrew—Nipissing—Pembroke, in the short time I have, I intend to focus on those aspects of this second budget implementation bill that are of interest to my constituents.

I intend to focus my comments on the Navigable Waters Protection Act. I've listened to a number of comments, starting with those of the Leader of the Opposition, which are ill-informed at best and misleading at worst, about this part of the budget bill and I believe it is important to set the record straight. Historically, the impetus behind the Navigable Waters Protection Act of 1882 was the result of representations made by Ottawa Valley lumbermen looking to protect the principal means they had at the time to bring their product to market.

In the 19th century, when the Navigable Waters Protection Act was legislated, rivers played an important role in the commerce of our great nation. The lumber trade of the upper Ottawa Valley relied upon rivers to bring the logs to market. Twelve years before the Navigable Waters Protection Act became law and three years after Confederation, Parliament passed An Act Respecting Certain Works on the Ottawa River. This act gave the federal government exclusive legislative authority in the construction of any works to ensure the Ottawa River is navigable. This was done to protect commerce and done years before the Navigable Waters Protection Act. That legislation is still on the books today.

What Canadians find misleading is when opposition members read things into the legislation that do not exist. Environmental protection for such things as pollution and fish habitat is covered by other legislation, not the Navigable Waters Protection Act. It was never intended for that purpose when it was written 140 years ago. The opposition may wish to stay trapped in the past, but our government believes it is time to leave the 19th century for the 21st century.

The public right of navigation is a common-law principle that dates back to Roman times. To my paddling friends, nothing in Bill C-45 detracts from the right to navigation in Canada. We respect the navigable qualities of any body of water that is indeed navigable, recognizing that any contemplated works need not compromise or undermine the recreational status of any body of water that is now or was previously the domain of paddlers.

This brings us to the Petawawa River. The decision by the federal government to include the Ottawa and Petawawa rivers in the list of 62 rivers retaining navigable waters constitutional jurisdiction protection was based in part on the real concern, on my part as well as that of my constituents, that the provincial environmental assessment process is being manipulated by the Ontario government to match a hidden agenda called the Green Energy Act. We needed to take an extra step to protect the Petawawa River.

In the province of Ontario the so-called Green Energy Act has been used to stifle democratic debate at the local level, running roughshod over the objections of local residents who are now being forced, through their power bills, to pay for unwanted and unnecessary power projects. Projects are being promoted under the guise of so-called green energy, when in fact the only green is in the pockets of the Liberal Party insiders who lobbied for 20 years to have industrial wind turbine contracts at outrageous financial subsidies. The collapse of the Liberal Party of Ontario and the resignation in disgrace of its leader led to the migration of these same individuals to Ottawa into positions of influence with their federal cousins.

The town of Petawawa unanimously passed the following motion at its September 4, 2012 council meeting:

That the Town of Petawawa advises the Premier of the Province of Ontario and his Ministers of Energy and Infrastructure, the Environment and Natural Resources that it does not and will not give any support or sanction to any project that is seeking or will be seeking ministry approval under the 2009 Green Energy act and in particular its “feed-in-tariff” provision.

To quote councillor Treena Lemay, who moved that motion: “The act promoted 'fast tracking' of environmental approvals for all electricity infrastructure projects, removed the long-established local planning process and left rural residents without effective noise complaint protocols and municipalities with no voice in their own community development”.

I thank councillor Treena Lemay for her leadership on this issue at municipal council.

In the case of the Petawawa River, plans to construct dam-like structures would destroy the fish habitat as well as recreational activities, including whitewater kayaking that now takes place on the river. I support the residents of Petawawa and their town council in objecting to the damming of the Petawawa River and will continue to object at the federal level until this proposal is withdrawn.

I share the concerns expressed by the Ontario Rivers Alliance about the fate of our other Ontario rivers, like the Vermilion. To quote the alliance:

We all want Green Energy, but let’s ensure it is truly Green, and not the “Green-washed” version that is being proposed for many of our Ontario rivers.

While I appreciate the concerns of Ontario residents and groups like the Ontario Rivers Alliance about the need for a federal presence in certain instances to provide a system of checks and balances to ill-conceived legislation like the Ontario Green Energy Act, these checks and balances remain in place with the passage of Bill C-45.

When the Navigable Waters Protection Act came before Parliament previously in 2009, I was honoured to welcome Jack MacLaren, a seventh generation Renfrew County orchard farmer, to appear before the Standing Committee on Finance. Mr. MacLaren contacted me after he ran into trouble with the Navigable Waters Protection Act. In his case what should have been a simple matter became a complicated issue because of a piece of legislation dating back to the 1980s.

I had also been contacted by municipalities that complained to me about the time and expense to clean out a municipal drainage ditch because of the Navigable Waters Protection Act.

In short, it is clear that changes are absolutely necessary to this act.

The other issue I intend to respond to is the criticism by the opposition that Bill C-45 is too detailed and complicated for them to understand. The opposition call Bill C-45 omnibus legislation, hoping that Canadians will buy into its delay tactics because it would rather complain than do its job.

Bill C-45 is the second budget bill. Here, I draw members' attention to a debate in the House that took place on June 13 of this year on the first budget bill between the opposition member for Markham—Unionville and the hard-working Conservative member for Etobicoke—Lakeshore. In that exchange the opposition member complained about a program he claimed was cancelled by our budget. Our government member responded with shock at what he had heard. He proceeded to set the record straight, reading directly from the budget that the program in question, the Canadian innovation and commercialization program, had not only been funded for another three years but had also been built up and made permanent. This led the member for Etobicoke--Lakeshore to ask the opposition member if he had even read the budget. The opposition member obviously had not read the budget, which brings me to my last point.

The opposition has had a copy of our budget for months, with plenty of time to analyze the budget document. If they were doing their job, they would be ready to debate and scrutinize all aspects of the budget now. Opposition for the sake of opposition is not acceptable to Canadians. The Library of Parliament can help out with a legislative guide for all things not understood, like the history of the Navigable Waters Protection Act. This is why it is so important at this time to modernize a 140-year-old piece of legislation and proceed with the passage of Bill C-45.

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I would like to take up where I left off yesterday.

Like Bill C-38, Bill C-45 is another massive omnibus bill that makes changes to many laws. Once again, the Conservatives are trying to ram their legislative measures through Parliament without allowing Canadians or their representatives, the MPs, to carefully examine them. The 400 pages of this bill contain many areas of concern. I would like to focus on a few specific points since, if I wanted to get into any detail, I would barely have time to address the table of contents of this mammoth bill in the 10 minutes that I have to speak.

The first point that I would like to speak about is health, particularly the decision to eliminate the Hazardous Materials Information Review Commission, which falls under division 13 of part 4 of the bill. The commission was an organization that helped to regulate hazardous materials protected by business confidentiality by ensuring that employers and workers had the information they needed to safely handle hazardous materials in the workplace.

I would like to know what prompted this change at this time. Was the organization, in its existing form, not doing its job properly? I doubt it. Why is it necessary to give the mandate that is currently being carried out by the commission to a group of people who will be appointed by the minister? These are the questions that we should be examining. The government did not provide much in the way of justification for this change. It keeps hiding significant changes in giant, complex bills to prevent MPs from discussing and thoroughly examining the impact of these changes.

Unfortunately for the government, it has clearly not yet learned its lesson. The official opposition will not let the government impose new omnibus bills without resistance. Canadians deserve better. We will do our job and we will expose the bad decisions that this Conservative government is making.

The other point that I would like to address is the impact of the cuts to research and development. My riding, Saint-Bruno—Saint-Hubert, is lucky enough to have in it a number of specialized aerospace companies through the Saint-Hubert airport. The North American head office of Bombardier Transportation is also in my riding, in Saint-Bruno.

The changes to research and development proposed by the Conservative government will affect all these businesses and their workers. Various measures in the bill eliminate $500 million for entrepreneurs at a time when Canada already lags behind in investment in research and development. In my riding many people depend on the aerospace industry, and this situation is creating instability at a bad time.

Canada's aerospace industry is ranked fifth in the world. It employs over 150,000 Canadians directly and indirectly. It generates $22 billion in revenue annually and invests approximately $2 billion in research and development. That is significant.

These cuts are being made at a most unfortunate time because the sector is growing internationally and competition is increasingly fierce. In this context, I cannot understand and I deplore the decision made by the government to slash funding for an important tool that can spur innovation and productivity and maintain existing jobs. Technology and innovation have given Canada a comparative advantage in these leading-edge industries. Strategic investments in research and development as a whole are vital in order for Canada's industrial sector to compete with emerging countries and for Canada to retain its competitive edge internationally and its well-paid jobs.

I am not making this up. In its pre-budget consultation brief, the Aerospace Industries Association of Canada said that these measures to boost research and development are important for the future. The association said the following in the brief it submitted to the Standing Committee on Finance:

These measures will foster competitiveness and productivity, ensuring our industry is positioned to take advantage of the outstanding growth in demand for aircraft and thus create long-term, high-quality jobs for Canadians.

The NDP has called for a better balance between tax credits and direct support to businesses, which is what countries such as Israel, Sweden and Finland do, and they are ranked the most innovative countries according to OECD. But the budget only decreases the government's support for research and innovation.

And the Conservatives are proclaiming loud and clear that the 2012 budget creates jobs. We know that that is not true. In fact, the Parliamentary Budget Officer believes that the budget will lead to the loss of 43,000 Canadian jobs. This budget would increase the unemployment rate. I have to say that they are not walking the talk.

This bill is proof that the government says one thing but does another. It claims to want to support job creation, but there are no concrete measures to strengthen existing jobs, let alone create new ones. The Conservatives got elected in 2006 by promising Canadians that they would be transparent and accountable. But the government is hiding major reforms from Canadians by putting them into omnibus bills like this one and the earlier Bill C-38, and it does not want to give the Parliamentary Budget Officer the figures related to cuts to federal departments and agencies.

The NDP will always stand up proudly for transparency and accountability.

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

Business of the House

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, I would like to seek unanimous consent to move the following motion: That, notwithstanding any Standing Order or usual practice of the House, clauses 179 to 184 of schedule I, related to the construction of a bridge spanning the Detroit River between Windsor and Detroit, be removed from 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 respecting a bridge spanning the Detroit River between Windsor and Detroit and other works”; that Bill C-47 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Transport, Infrastructure and Communities; 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 the parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing this because the new bridge between Windsor and Detroit has been a long process in evolution and included new legislation that was passed under the International Bridges and Tunnels Act. That process has been defined and developed, and we want to make sure that it is consistent.

Jobs and Growth Act, 2012

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I get the impression that today is Groundhog Day, and I am not talking about the day in February where we check to see whether the groundhog has seen his shadow to determine when spring will arrive. Rather, I am talking about the 1993 movie, where the main character keeps reliving the same day over and over again. I have the vague impression that I have already lived this moment where I rise in the House to speak out against a bill that is over 400 pages long and contains many elements that were not part of the budget tabled by the Minister of Finance in March.

This is likely because this is not the first time this has happened. I promise to do my best not to repeat myself even if the speech I gave last June is still valid and relevant today.

Like Bill C-38, Bill C-45 is another massive omnibus bill that makes changes to many laws. Once again, the Conservatives are trying to ram their legislative measures through Parliament without allowing Canadians or their representatives, the MPs, to carefully examine them. The 400 pages of this bill once again contain many areas of concern.

I would have liked to focus on a few points, particularly health, but unfortunately, I have only one minute left.

What I can say is that this is truly an undemocratic practice designed to prevent the representatives of the people of Canada from examining the bill and doing their jobs properly. We are opposed to this way of doing business in Parliament. We want Canadians to know exactly what the current government is doing. We must speak out against all the bad things in this bill.

I would like Canadians to be aware of the fact that this is the same story all over again. This is the second time this has happened. It is the same 400-page bill to do nothing, apparently.

I hope that Canadians will learn their lesson about this government.