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, 2012

[Jeff Watson, Conservative, Essex, ON]

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

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

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

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to go back to the member's comments regarding employment insurance. At the end of the day, the reality is that the Auditor General of Canada is the one who recommended that EI funds go into general revenues. The government might not necessarily have liked that or support the Auditor General on that, but that is the reality of it. The other reality that the member needs to be aware of is that under Liberal administrations, we saw employment insurance premiums reduced on those working from over $3 for every $100 of earnings, virtually every year, whether it was under Jean Chrétien or Paul Martin.

When we now see the Conservatives in power, their understanding of the benefits and the need to use those benefits to support industries has been prompted best by my colleagues from the Atlantic caucus who, day after day, have had to hammer the government to try to make improvements to some of the changes it has made to the system. Fortunately, from the pressure of members from the Atlantic caucus of the Liberal Party, there were some changes made but not enough.

Why has the government not treated unemployed workers with the respect necessary to allow them to sustain themselves during difficult times in industries that really are dependent on the provision of some sort of assistance?

[Jeff Watson, Conservative, Essex, ON]

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

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

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Mr. Speaker, I want to congratulate my distinguished colleague for his speech. In a week, I will join my constituents in participating in a food drive for food banks in the region, in particular those in Saint-Jérôme.

I have been listening to all of the comments on the budget. I hear about navigable waters. We are not living on the same planet. I am being asked to support this budget; meanwhile, I am collecting food for people who have to use food banks. This year, 882,000 people visited food banks and there is nothing in this budget to support food banks.

I would like my colleague to comment on this situation. How can we pass a budget like this?

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, the problem with food banks is that they exist at all.

Canada is an extraordinarily and fabulously rich country: rich in industry, raw materials, knowledge and education. But in Canada, people are going hungry. This indecency is on you. It is your responsibility to ensure that Canadians are not going hungry.

As long as you continue to support your friends instead of the people who are hungry, these individuals will always be forced to use food banks.

[The Deputy Speaker]

Once again, I remind members to address the Chair and not other members of Parliament.

The hon. member for Winnipeg North.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the previous Conservative speaker challenged me, saying why not vote in favour of one aspect of the budget.

When the Prime Minister was in opposition, back in 1994, he raised a question on voting on the omnibus bill. That was a 21-page document, back in the 90s. He stated:

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

He asked government members in particular to worry about the implications of an omnibus bill for democracy and the functionality of Parliament.

I believe that those words are true today when we look at a bill that has hundreds of pages, compared to 21 pages back then. The Prime Minister of today has changed considerably since he was in opposition back in the 90s. I wonder if the member might provide comment on that particular change in the Prime Minister's attitude.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I have nothing but respect for the member for Winnipeg North, but I am not sure where he gets the idea that this budget is for Canadians. That was never the case.

This budget was designed to ravage this country. This budget was designed to make Canadians poorer. This budget does not address any of the needs Canadians have. This budget only satisfies the financial community and the foreign friends of the oil companies. That is it.

With all due respect, I would say that this budget has nothing to do with Canada. It aims to destroy the country that we have spent generations building.

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, I am pleased to rise today to talk about the budget implementation bill and to put a few comments on the record about how I see it and how people in the constituency I represent see it.

I often refer to Brandon—Souris as the heart of Canada. I think many would agree that if something will sell in Brandon, it will probably sell in either the eastern part or the western part of Canada. It just seems to be the kind of community and the kind of region where we understand a lot of the little intricacies of each province and each part of the country. I am very proud to represent the people of Brandon—Souris.

When I look at the budget implementation bill, it is obvious that a lot of the information has been put before the House in a previous bill. This is basically the implementation part, which looks after the acts and updates the current acts so that they can actually apply to what was stated in the previous budget.

I see a couple of things. Obviously, I see a very challenged situation, not only for our country but for countries around the world. We know that many countries are struggling to get their financial feet under them again. They have had to make many difficult decisions. In some cases, I might suggest, they are not making enough of them and are not making them in a timely fashion.

I want to congratulate our government for taking the hard steps they have. Everybody would know that when faced with a tough financial situation, be it in one's home or in one's business, in our provinces or in our country, one has to make decisions and resolve to continue along that path. I think that is what this budget and what this implementation bill does for Canadians.

We have known for quite a while that other parts of the world are working and are working hard. They hold Canada up as an example of how things can and may be done to improve the lives of the people in the countries they represent.

The Prime Minister, cabinet and our government have listened to what people are saying. I do not think I would be underestimating by saying that hundreds of consultations have taken place across Canada. I know that I have been fortunate to participate in many of them with ministers and with members of communities to find out their needs and concerns.

One of the issues we heard, particularly in the communities I represent, was the benefit of the hiring credit for small businesses. It is a measure that provides an incentive for small businesses to hire new workers. What we want to do is create that opportunity, that first job, that first position where people can get their feet wet and get an understanding of what lies ahead of them.

The one thing I heard from my communities was that the credit is applied automatically. I think everybody here who has ever filled out a form of any kind finds that the paperwork continues to be burdensome. Every time a person finishes one page and thinks it is finished, another page is presented. That is not what we did. Businesses like it. They like the fact that it is simple and straightforward.

One of the other things I believe has benefited my communities and Canadians is the fact that every member of the government is committed to developing and signing free trade deals. We are fortunate to have ministers who understand the need, be it in agriculture or trade, to go out there and look for the opportunities. People in retail know that the situation is that nothing ever comes to them. They have to go out and find the opportunities. If they go out and find them and create those opportunities, not only do Canadians benefit but the people in countries we actually do business with benefit. The intent is to improve their quality of life as well. Both countries will benefit from that.

We know that jobs are not automatically created. There has be an investment in the people, in the Canadians, who will fill these jobs.

I know there has been a lot of discussion about employment insurance. It is a very difficult challenge. Yet, if we talk to, say, the old timers, my father's generation and friends of his, they would suggest that employment insurance, at one time unemployment insurance, was merely a fund to provide a person with an opportunity until his or her next job.

I know there has been a lot of discussion about where jobs and opportunities are. I do not think any government or any person should suggest that because people do not have a job today where they want to live, they should stop looking for work. Opportunity presents itself in many forms and in many varieties. Sometimes if we close our minds to just one item or one opportunity, we miss many of the opportunities that might present themselves. I think it is important for Canadians to open their minds.

Yes, we have challenges. No one is denying that. However, I think what we want to do is to try to create the opportunity where if someone is unemployed and an opportunity presents itself, they can take that step. It is a first step and it could be a step into a far better opportunity.

We are a government in Canada, the federal government, that has said to people that the way we create the opportunity is, one, to not raise taxes on people and, two, to find ways to reduce taxes to allow them to put more money in their pockets and more opportunity to spend that money as they see fit. I think that is the right way to go. If we give people $500 and tell them to spend it as they see fit, they are going to spend it on their needs. If we tax them and give them $250, they are not going to be quite as happy and they will not invest in the economy, which we are trying to continue to keep going and keep growing.

There are a couple of things that I do want to highlight about the implementation bill. One that I know my colleague spoke about is navigable waters. In reality, most of the changes that we are now talking about were implemented in 2009, when they were first introduced, so it is not a shock to people.

However, I can tell members and I can give examples. Having served as a municipal councillor and a provincial member, I know that provinces and small communities were being crushed by the burden of paper, the burden of rules and regulations. I am not saying they are not important, but I will give members the example of a small community that had a rock bridge washed out. All they ever wanted to do was to replace the rock and the culvert that washed out. It took them five years to get that done. How they got it done was that they waited until the flood last year, when pretty much no rules applied and they could actually do it with approval.

I know we have heard it before, but I think it is important to continue to mention that we believe we are on the right track. We believe that we have created the environment. Governments do not create jobs. They create environments so that businesses and investment want to come to our country and create those opportunities.

When we talk about the 820,000 net new jobs. We did not create them. The government did not create them. We created the opportunity for it to happen and businesses have stepped up. For that, I am very proud.

What happens is, first, they do a study. Then they say, “This is not right. You have to meet this challenge”. They do that, and then there is a next one and a next one. It is extremely burdensome. Just look at the projects in Canada that were up for infrastructure dollars, that were up for infrastructure investment in their communities. Many of them could not go forward because of the time constraint that was imposed upon them, because we were trying to stimulate the economy. However, many of them could not go ahead because of the burdensome regulations that were imposed upon them.

I think it is important to note that, as everyone else has, we all often talk about our own programs. I think that is the best way to sell what we are trying to do. I have heard about the $20 billion carbon tax, maybe. What I am saying is that the intention of what we are doing is for the good of all Canadians. We are trying to move the ball forward in a very difficult economic time and I think it is important that we all do.

One of the members from further down suggested that he can find things that he likes about the budget. I encourage members to do the same and perhaps instead of focusing on the negative, focus on the positive. There are good things in every budget that we like or do not like. I think at this particular time, in this particular economy, it is important that we focus on the positive things that would help our communities and help Canadians in general

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

Mr. Speaker, when speaking to the bill, I started by concentrating on a positive thing, which was that all sides of the House agreed by unanimous consent to pull out the parts that we thought needed immediate action, the reforming of the pensions of members of Parliament. That was a very positive thing and I would like to see more of it in this place.

It is not being unnecessarily negative to notice when a piece of legislation that has been fundamental to protecting navigation rights in this country since 1882 is blown apart in a way that seems to show no reason or consideration. National heritage rivers are excluded. In percentage terms, over 99% of the internal waterways of Canada will no longer have a right to protect navigation unless the individual concerned goes to court.

There is an economic impact to this. I do not know if the hon. member is familiar with it, but many companies make their living bringing Canadians to remote areas of the country, for instance, for rafting excursions on Yukon rivers and in the Northwest Territories. Throughout Canada, there are companies whose livelihoods depend on these rivers being navigable and now they are being removed as though they do not exist. How does my hon. friend suggest we fix this in committee?

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, it is probably not for me to give advice to the opposition as to what it may or may not do, but I can give another example.

There are ditches that run alongside our roadways that, in the spring, have water in them for about eight days. By definition, those are termed navigable waters. It was never meant to be, never intended to be, never talked about when they thought about building roads or intersections, but over time the act has overtaken every definition. If someone can float something in a ditch or, as one of my colleagues said, in my glass of water, it could be termed a navigable water and that is what we are trying to correct with this bill.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, the member said employment insurance was there for people to find jobs and opportunity. I found opportunity in 1972. I came from a family of 11 people, who left home and went to work in northern Ontario. Is that what the member is saying, that everybody has to leave Atlantic Canada to work in the west? Is that what he is saying?

The minister clearly said that is not what she wants. She did not want people to travel more than an hour from home. She said she did not want to hurt the seasonal industry or workers, yet the member is saying people should go find jobs. I would like the member to clear that up. Is he saying the same thing as the minister or is he going his own way?

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, if the member wants to check the record, I spoke about the older generation. I spoke about my father, who, as an employer, dealt with people who were looking for work. The definition at that time was that it was a bridge to carry people from the job they just lost to their next job. I am not disagreeing with what the minister said. I am just saying that in days gone by that was the way it was.

Now we are saying one hour. I drive an hour to work. You probably drive more than a half hour to work. It is not unthinkable that people would do that. If there is an opportunity an hour away, we would encourage people to consider that job.

[The Deputy Speaker]

The Speaker only drives about 15 minutes to work and I would again remind members to please direct their comments to the Chair.

Questions and comments, the hon. member for Winnipeg North.