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

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, I congratulate the hon. member for his speech. As with other Conservatives, he spends a lot of his time boasting about assistance for small business while, in fact, the opposite is the case.

It is true that there is a credit related to EI worth $205 million per year, but what he totally forgets to say is that the Conservatives are bringing in an increase in EI premiums as of January 1 next year worth $410 million. On a net basis, far from reducing the taxes of small businesses, Conservatives are increasing those taxes to the tune of $205 million based on higher EI premiums, which is a direct tax on jobs.

Is the member in love with higher taxes? How can he support this tax raising bill?

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

Mr. Speaker, what I am in love with are the small businesses in Canada, especially in Northumberland—Quinte West, that are telling me and this government how proud they are that we are supporting them. We have lowered their taxes. I just mentioned the $1,000 tax benefit for hiring new employees.

However, what I failed also to mention, because of time constraints in this place, is what the continued support of our CFDCs and the eastern Ontario development program have done for small businesses by taking people who want start-up money and giving them a hand up, and by helping them organize their ideas into a presentable package so that they can take it to the bank and present a business plan. This is what people value, help for small businesses and help for start-up businesses.

What the member also forgot to mention when he was talking about small businesses was the fact that under this government, under the EI program, small businesses, especially those who are single entrepreneurs, now have the benefit of EI should they become pregnant. We just cannot single out one small thing we have done and put a dollar tag on it. We have done many things and when all those dollar tags are put on, as I mentioned, it far outweighs any kind of negativity.

This government supports small businesses. We have since 2006 and we will continue to do that.

[Françoise Boivin, NDP, Gatineau, QC]

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

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

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

[The Acting Speaker, Barry Devolin]

Does the hon. member have the unanimous consent of the House?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Barry Devolin]

There is no unanimous consent.

Resuming debate. With three minutes remaining in government orders, the hon. member for Scarborough—Rouge River.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

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

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

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

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

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

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

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

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

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

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

[The Acting Speaker, Barry Devolin]

The time for government orders has expired. The hon. member for Scarborough—Rouge River will have seven minutes remaining when this matter returns before the House.

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

Jobs and Growth, 2012

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, in 2008, the Standing Committee on Transport, Infrastructure and Communities did an exhaustive study of the Navigable Waters Protection Act. Among the witnesses were seven provinces and two territories who spoke up and said that they agreed with Transport Canada. They stated on May 6, 2008, that “a total rewrite of the act is something that is well worth doing”. They further stated:

At a minimum, we [the provinces and territories] believe, the changes should eliminate the need for a project proponent to first ask Transport Canada if the act applies to a given stream....

Then they went on to define that a bit further.

This is the approach they were asking for. How does the member opposite respond to the provinces and territories who wanted this type of regime for deciding when and where navigation permits should be given for a project?

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Mr. Speaker, my colleague again proves my point that if the government wants to talk about the Navigable Waters Protection Act, then it should include it in its budget. We know that the word “navigable” was not included in the budget presented by the minister in March, yet this budget implementation bill has navigable all over it. How is it that the government is being truthful, honest and transparent to Canadians when it is changing the Navigable Waters Protection Act in a budget implementation bill whereas the budget itself does not even talk about that act?

My suggestion to the government through the member is to be open and transparent with Canadians. If the transport committee had expert witnesses who said we should talk about the Navigable Waters Protection Act, then let us do that, but let us do it openly and transparently, not the secret backdoor way.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, what the Liberal Party demonstrated on this particular omnibus bill is that it is in fact divisible. If the government had the will, it could divide it into a number of different bills. We saw that when it agreed with the Liberals that at the very least it should bring out the MPs' pension portion. We appreciate that it has done that, but we would ultimately argue that there is a lot more that could be done in that way.

When the Prime Minister was in opposition back in 1994 he stated:

Dividing the bill into several components would allow members to represent the views of their constituents on each of the different components in the bill.

That was a 21-page bill, not a multi-hundred page bill, and now the Prime Minister's opinion has changed.

I ask the member if she might want to reflect on the massive size of the bill. If the government really wanted to do a service to the House of Commons today, the best thing it could do would be to recognize how massive the bill is and break it down into a number or series of legislative proposals. That way there would be due diligence given to every major issue on which the bill is attempting to make changes. Would she not agree with that?

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Mr. Speaker, I thank my hon. colleague for his pertinent question, because the government has proved it is willing to split the bill when it brought out the pensions portion from the bill. The NDP has requested time and time again the unanimous consent of the House to do that exact same thing and to break up this humongous bill of over 400 pages.

The debate is now under time allocation, so we do not have the opportunity as members of Parliament to have the full debate necessary to go through these 400 pages. It is our fiduciary duty to our constituents to ensure that there is adequate and appropriate debate in this House, and that is exactly what the government is ensuring will not happen.

The government is muzzling scientists and parliamentarians. It is muzzling everyone. The government is not allowing us as members of Parliament to perform our fiduciary duty to our constituents.

[Earl Dreeshen, Conservative, Red Deer, AB]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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