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.

Second reading

[The Acting Speaker, Bruce Stanton]

I appreciate the enthusiasm that members have for their comments and questions. I would just ask, particularly when we are in a five-minute question period that follows a 10-minute speech, that hon. members keep their comments and responses as brief as they can. We can see the interest that members have in questioning the various speakers.

Questions and comments, the hon. member for Kingston and the Islands.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, on January 1, the EI premiums are going to be hiked for small businesses something like $400 million. The government is offering a tax credit for small businesses to offset that but it is only $200 million. I would like to ask the chair of the finance committee if he would support doubling that tax credit for small businesses so that his fellow Conservative members would not have to vote for a tax hike on small businesses.

[James Rajotte, Conservative, Edmonton—Leduc, AB]

Mr. Speaker, I will try to keep my response brief but it is a fairly technical question. We do not want to do what the previous government did, which was to take EI premiums and use them for general revenues and move toward a balanced budget on the backs of entrepreneurs and people who are paying EI premiums. That is why we want to move to a system that is self-sustaining over the short, medium and long term.

With respect to the hiring credit, I hope the member and his party consider voting for this budget implementation act specifically because of the extension of the hiring credit, which was one of the main things that small businesses and the Canadian Federation of Independent Business asked for in their presentation to the finance committee.

We have also restrained the increase, though, in terms of trying to find a balance between the premiums that are going in and the moneys that are going out from that. It is not a specific fund, but trying to equalize that was also a recommendation made by small businesses. We have to balance every single suggestion, such as the one that the member made, but another suggestion from small businesses was to move to a balanced budget over the medium term.

One of the strongest recommendations of the CFIB each and every year is that the government must move toward a balanced budget and live within its means. We owe it to people living in Canada today and to future generations. We have to balance any increase in terms of a hiring credit or anything else against that need to balance our budget over the medium term.

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

Mr. Speaker, I am pleased to have this opportunity to rise in the House and speak to Bill C-45, Jobs and Growth Act, 2012, even though, clearly, it does not come close to meeting the targeted objectives.

I know the government members do not like talking about procedure. We cannot avoid talking about it, because that is how we can evaluate this government's good governance.

We are opposition members; of course we examine the government's initiatives, particularly those like Bill C-45. We look at the elements that we do agree with, as well as the elements that we oppose. And we suggest ideas that we think could help the government get back on track regarding certain elements that we believe are headed in the wrong direction.

We have a majority government that can decide whether to accept or reject the proposed recommendations. However, based on what happened when the previous mammoth budget bill was introduced in June 2012, we know that this government has no respect for this process, which is absolutely crucial to the good governance of Canada, and particularly of our economy, which is having difficulty right now and needs our attention.

We are dealing with a 450-page budget implementation bill, which is not to be confused with the budget itself. This bill amends, adds or repeals 64 different laws. Thus, this one bill affects 64 different pieces of legislation.

I heard my colleague from Edmonton—Leduc say that this is a completely normal process. I imagine that is why the Conservatives did what they did in June. That must also be why they introduced a bill that was 800 or 900 pages long in 2009, when stimulus was needed for the economy during the recession.

This is not normal. According to media commentators, constitutional experts and parliamentary experts, our parliamentary system was not designed for this. At present, the government is using a single bill to address a good number of issues that, in many cases, have nothing to do with the budget, were not mentioned in the budget and could have very easily been introduced in a separate bill. We have been sitting since the middle of September. Many initiatives that were not introduced could have been introduced at that time in order to be examined separately. Instead, they are all included in this monster bill.

The government often says that we should not just focus on numbers, such as the number of pages and acts, and that we must read the bill. But we must do both. We cannot do away with process, because democracy itself is a matter of process. This government seems to have profound contempt for the democratic process and the parliamentary process. We need only think of the fact that the Prime Minister's Office decided to prorogue Parliament, not as part of the normal process to transition to a new legislative agenda, but simply to protect itself and avoid a defeat on a confidence vote in the House. We need only think of the gag orders or time allocation motions, such as the one we saw this morning for Bill C-45. I cannot even count how many we have had since the last election. Obviously, there is also the use of omnibus bills like the one before us today.

Omnibus bills are not the right approach. Unfortunately, that is what the government has decided to use in this case. We find that deplorable because our economy is cause for concern right now. We have told the government many times. Economic indicators clearly show that we are in a period of uncertainty. The latest unemployment statistics are one example. Despite the creation of 52,100 jobs, the unemployment rate increased by 0.1% in September 2012. Between 2000 and 2009, Canadian productivity increased on average 0.6% a year, but the average for all OECD countries was 1.5% per year. So we are lagging behind right now.

The government claims that it is taking measures, such as Bill C-45 and Bill C-38, and that the economy is its top priority, but at the end of the day, we have to wonder if it is headed in the right direction.

I would like us to consider two situations. The first has to do with productivity, which is more or less stagnant right now. Since 2006, the government has tried different measures to increase productivity, but nothing is working.

A good indicator of productivity is research and development. In the budget and in Bill C-45—for once there is something in the bill before us that actually has to do with the budget—the government introduced changes to the way companies are allowed to do research and development. Instead of issuing tax credits, the government has chosen to provide companies with direct research and development subsidies.

Unfortunately, there are two problems with this approach that the government has not yet addressed. The first problem is that these measures leave the door wide open for the government to pick winners in every industry. The second is that a lot of money has been lost in the process. Consequently, there will be no increases in amounts allocated to research and development or in corporate assistance for research and development. Canada will ultimately lose out as a result, and our productivity will not improve. This is a recurring problem.

There is another problem with the overall reduction in corporate income tax. The government usually argues that the general corporate income tax measure, which was extended in the last budget, is a measure that allows businesses to invest. However, there are two problems with that. When the Conservative government came to power in 2006, the corporate tax rate was 22%. Starting next year, it will be 15%. Every percentage point cut results in a reduction in revenue, which varies from $2 billion to $4 billion, depending on the year. The government is foregoing an enormous amount of tax revenue through this measure, in the hope, of course—since this is the argument of the government and many economists—that businesses will reinvest the money and create employment.

What have we seen so far? Businesses are sitting on approximately $500 billion, half a trillion in unused cash or dead money. This money is not being reinvested. It is currently lying in coffers waiting to be used, and it is not benefiting the economy in any way.

Another aspect that has to be considered in evaluating the success of these measures is whether the money has in fact been reinvested. If we look at Canadian statistics on reinvestment, we see that net real investment has stagnated in the past 10 or 15 years. So the government is making massive tax cuts and losing the tax room for various programs and services that help Canadians, but we are not seeing any significant increase in investment. Private sector businesses are sitting on a considerable amount of cash that could be invested in economic growth but is not.

The government has to ask itself some questions about this situation. It has to ask itself why the methods it is using do not seem to be working. Yet, we are seeing no such introspection on the government's part. This is a major problem. We know the definition of insanity.

The definition of insanity is doing the same thing over and over again and hoping that things will change.

That is what the government is doing. Eventually, the Conservatives are going to have to revise their economic ideology to allow the Canadian economy to achieve its potential. Right now, it most definitely is not.

As I told the chair of the Standing Committee on Finance, the member for Edmonton—Leduc, there are many things in Bill C-45 that were not in the budget. The Conservatives can do all the mental gymnastics they like, but there are things that were not in the budget, contrary to what the Minister of Finance told the House.

A number of these elements are important enough to warrant separate debate.

Take, for example, the elimination of the Canada Employment Insurance Financing Board. It was created by the Conservatives, but never did much of anything. In fact, its only function was to set employment insurance premiums. Once again, a board created for a very specific purpose will be abolished, even though it could have been useful to the government. In the end, even though the government went to the expense of creating it, the board will be shut down, which will result in more power being concentrated in the hands of the minister. That is another example of the use of discretionary authority, which is becoming a habit with this government.

Who is going to cover the cost of abolishing the Hazardous Materials Information Review Commission? Workers. These are not trivial matters. We are talking about monitoring hazardous materials that many Canadian workers handle in chemical and pharmaceutical manufacturing. With a stroke of the pen, and with no mention of it in the budget, this commission is being eliminated.

There was also no mention in the budget of abolishing the Grain Appeal Tribunal. The government is trying to make us believe that one measure in the budget, written in very imprecise and vague language, covered this. That is not the case. If a budget is headed in a certain direction and budget items, offices and agencies must be eliminated, then this should be set out in the budget so we can vote on these elements. That is not currently the case.

The Parliamentary Budget Officer raised two very troubling issues that touch on what we are experiencing with Bill C-45. First, he said—and parliamentary experts agree—that members do not have the information in hand that they need to make decisions about the budget.

In April, we voted for the 2012 budget, but we did not have all of the information. The government was talking about eliminating 19,200 public service jobs and making $5.2 billion in cuts. However, we had no idea where these cuts would be made, and where these jobs would be eliminated, or which sectors would be affected. The information is trickling out as we go along.

That was why the Parliamentary Budget Officer demanded that the government be more transparent in the budgetary process by compelling the departments and agencies to report on their cuts. In doing that, he sought to determine what services would be cut and whether Canadians needed those services. Where will those cuts be made? What objectives does the government want to achieve by making those cuts? What will the consequences be?

The Parliamentary Budget Officer is unable to obtain that information, in spite of the Federal Accountability Act, which the Conservative government asked us to pass in 2006. We fully supported that act. However, the government decided to contravene its own act in order to prevent the Parliamentary Budget Officer from analyzing the impact of budget 2012.

Honestly, I have to say that if the Parliamentary Budget Officer cannot obtain that information, members will have no access to it either and will not be able to conduct a proper debate on budget 2012 and its impact.

We are studying Bill C-45, and we are clearly feeling the impact of budget 2012, for which we have yet to obtain all the information.

Bill C-38 very significantly watered down the environmental assessment process, the Fisheries Act and protection of fish habitat. Bill C-45 will have very significant consequences for the environment, among other things.

Now with respect to the repeal of the Navigable Waters Protection Act, that act concerns the environment, despite what the government claims. It is trying to create a smokescreen by saying the act concerns only navigation. That is not true: it refers to the protection of navigable waters, including waters where one can navigate in a canoe. This is a rigorous process that the government is in a hurry to water down in order to repeal certain provisions that the lakes and rivers development sector does not like.

This is a big problem and will have major consequences, like the massive watering down of the Canadian Environmental Assessment Act and the amendments to or massive watering down of the Fisheries Act. Some aspects of Bill C-45 also concern the Fisheries Act. We were surprised when we read the division of that bill that concerns the Fisheries Act, because most of the provisions correct the errors and excesses of the previous budget implementation bill, C-38, which was passed in June of this year.

We introduced numerous amendments that would have eliminated those errors and excesses, but the government disregarded them. I recall that the government would not agree to any amendments during the study by the Standing Committee on Finance or in the House. Now, a few months later, the Conservatives realize the opposition may have been right on certain points and they are quickly changing things so that no one realizes it. That is what is happening now.

Because of the major repercussions that will result from these important amendments, they really belong in a bill if that is the direction the government truly intends to take, and should be treated separately and given close scrutiny.

There is a great deal of expertise in ocean science, oceanography and biotechnology in the Lower St. Lawrence. In fact, the Université du Québec à Rimouski was rated the best research university by the Toronto magazine RE$EARCH Infosource for its work in this field. The University of Quebec at Rimouski has the capacity for this work because of the networking done by the Technopole Maritime du Québec.

Within the institutional community, UQAR, with its oceanography department and ISMER, its ocean sciences institute, has solid linkages and networks with the Department of Fisheries and Oceans’ Maurice Lamontagne Institute. The UQAR is also linked to private sector organizations like the Centre de recherche sur les biotechnologies marines. The problem is that the massive budget cuts and the dilution of environmental measures put forward in Bill C-38, and reintroduced in Bill C-45, will cripple a region that has succeeded over a 25- to 30-year period in developing internationally recognized cutting-edge expertise. The Maurice Lamontagne Institute’s department of ecotoxicology and the department that studies fish habitat are about to be shut down. The libraries and archives, the only French-language sources serving the university and researchers in the region, are also being closed.

All of these measures, which were not in the budget but derived from it, and about which the Parliamentary Budget Officer would like further details, will diminish the capacity of Rimouski and the lower St. Lawrence to make their mark as international leaders. Is that really what the government wants?

This government should do some soul-searching and look at the measures being put forward in the various budgets tabled and their budget implementation bills. It must seriously consider whether Canada is moving forward or backward.

All of the Canadian and Quebec stakeholders I have heard speak about this issue have a strong feeling that Canada is moving backward. We are deindustrializing and putting all our eggs in one basket, as we used to do when free trade was almost solely with the United States. At least we have been begun to diversify the countries we trade with.

We are putting all our eggs in one basket once again in terms of industries and relying more than anything else on natural resources. This sector is certainly important, but from an economic growth standpoint, it has become the only sector we can rely on. We need to make sure that other sectors in which we could play a leadership role are supported by this government, but there are no signs of this in Bill C-45.

That is why we will oppose Bill C-45 at this stage. We are against the process being proposed and against the content which, although it does contain some interesting ad hoc measures here and there, is definitely not a panacea for the Canadian economy.

[Ray Boughen, Conservative, Palliser, SK]

Mr. Speaker, I have a little trouble with what the hon. member has said.

If the member is arguing that fisheries and forestry departments, or others, require funding, what is the difference between these departments finding their funding in a document of 45 pages or a document of 450 pages? The number of pages in the budget does not change the amount in the budget.

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

Mr. Speaker, I would like to thank the hon. member for his question. However, I am not quite sure I understand exactly what he is getting at with regard to the fisheries, forestry and funding.

With regard to the number of pages, the length of a bill, whether it is 45 pages long or 200, affects our ability to examine all the measures. In this case, 64 laws are created, eliminated or amended. If we could isolate each of those laws, then we would be able to examine them much more thoroughly than we can in this massive bill.

If the hon. member is referring to the end of my speech, when I spoke about oceanography and research and development, then I would say that yes, we are losing our expertise because of these measures. These measures were impossible to see in the 2012 budget. The Parliamentary Budget Officer is looking into them, but the Conservatives are refusing to give him the information he needs.

Now, with Bill C-45, the government is proposing that the opposition once again vote blindly on a bill without knowing what impact it will have, just as we were asked to do in the vote on the 2012 budget.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, my question is for my colleague.

Generally speaking, a change in tax regulations is a very technical and complicated subject in and of itself. Is this not sufficient justification to separate out this part of the bill?

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

Mr. Speaker, a budget implementation bill should contain measures that change laws specifically related to the budget. Generally speaking, before the Conservatives came to power, such bills made changes to the Income Tax Act or the Excise Tax Act because it was a question of important tax-related amendments. For instance, in the case of introducing a tax credit, the Income Tax Act needs to be amended.

The Conservative government has completely hijacked the process by adding many elements that have nothing to do with the Income Tax Act or the Excise Tax Act. All this government is trying to do right now is concentrate an entire legislative agenda from an economic perspective into one bill.

I would remind the House that since Parliament resumed in September, although the government claims that the economy is its top priority, not one bill on any economic issue has been introduced.

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, I have a good question to ask my hon. colleague.

When the left hand does not know what the right hand is doing, that is serious. When the brain does not know either, it is even more serious. This government's stubborn, obstinate refusal to allow anyone to examine its work leads me to believe that the Conservatives are trying to hide their incompetence. I have worked in several fields in my life and I have a great deal of work experience. Whenever someone refuses to have their work evaluated, it usually means they are trying to hide their incompetence and their mistakes.

I wonder what my colleague's thoughts are on that.

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

Mr. Speaker, I am not sure that I would go that far. This is a deliberate strategy by the government to minimize the role of members in the House.

It is obvious that, since 2006, there has been a growing tendency, on the part of this government, to reduce the powers of MPs—whether they are in government or in opposition—and to provide fewer opportunities for them to fulfill their role and do what they were sent to Ottawa by their constituents to do.

I find that extremely sad. It is an erosion of the democratic process and our parliamentary system. Members of all parties should be worried, but the government members do not seem to want to talk about it.

We will therefore continue to raise these types of issues because they are important. We must talk about how we address these issues, because they concern all Canadians, just as we must deal with the substance of what is introduced.

[Bruce Hyer, Independent, Thunder Bay—Superior North, ON]

Mr. Speaker, I very much enjoyed the speech by the member. It was thoughtful and diverse. He touched on a lot of things and I agree with him.

However, as an easterner and a Quebecker who pays a lot of money for expensive Venezuelan and Arabian home heating oil and gasoline, I was surprised that he talked about diversifying the economy without mentioning building a pipeline to bring bitumen to eastern Canada to be refined here to lower our costs and, perhaps most important of all, to provide energy security for Canada instead of exporting more than we import. I wonder if he has any thoughts about that.

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

Mr. Speaker, that is the kind of issue that we must be allowed to debate.

As the member mentioned, Quebec imports its refined oil from several countries. Quebec's largest supply of oil comes from the North Sea. However, we import oil from a number of other countries that are not necessarily stable, or where stability has been compromised to a great extent. That is why we have to look at all options.

We are very dependent on fossil fuels, including petroleum. We have to look at other solutions and other options. However, our dependency will not disappear overnight. We must examine a west-to-east pipeline.

[Kellie Leitch, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, I am pleased to rise today to speak to Bill C-45, the jobs and growth act 2012.

I will be sharing my time with my colleague from the riding of Fort McMurray—Athabasca.

The bill is a continuation of our government's steady focus on the Canadian economy. It is what Canadians want and it is what they expect.

In March the Minister of Finance introduced our government's pragmatic and prudent vision for the future of Canadians, one that looked forward to not only the next few years, but also the next generation.

Since 2006, our government has worked to build a strong economic foundation for Canadians. While the effects of the economic downturn of 2008 were felt in homes and businesses across the country, it was through the steady, constant leadership of the Prime Minister and the Minister of Finance, as well as our Conservative government, that ensured the Canadian economy emerged from the recession well ahead of every major developed economy in the world.

We have delivered for Canadians. Our strong record speaks for itself: the creation of 820,000 net new jobs since July 2009; a 3.9% increase in year-over-year growth in manufacturing output; a reduction of personal income taxes and cuts to the GST; income splitting for seniors' pensions; the creation of a landmark tax-free savings account; and lower taxes on Canadian businesses, with Canada having the lowest tax rate on new business investment among major advanced economies.

Our banking system is regarded as the most stable in the world. The OECD and the IMF predict Canada's economy to be one of the international leaders over the next coming years.

Therefore, when we sift through the partisan rhetoric and the inaccurate facts and figures thrown about by my opposition colleagues, our government's record on the economy is laid to bare.

Ours is a low tax-plan that would help create jobs, while the NDP pushes high taxes that would kill jobs and growth.

Ours is a plan that would promote clean energy and enhance the neutrality of the tax system, while the NDP's massive carbon tax would not only take $21 billion out of the pockets of hard-working Canadians, it would also cripple Canadian businesses and kill Canadian jobs.

We are also extending the popular hiring credit for small business, which benefited nearly 534,000 employers last year. In my riding of Simcoe—Grey, business owners from Alliston to Collingwood spoke to me about how this measure provided needed relief to small businesses by helping defray the costs of hiring new workers and allowing them to take advantage of emerging opportunities.

My first job was as a small business owner. I ran a moving company to get through university. I took my inspiration and direction from my father, a construction company owner: hard work, dedication to employees and a commitment to service.

Like my father, Simcoe—Grey small business owners, like Fred Hamilton in Glen Huron, do not want handouts or government telling them how they should be running their businesses. All they want is a fair shot, an equal playing field and a government that gets out of their way, or at least works with them as opposed to against them.

Small businesses are the backbone of the Canadian economy. As Winston Churchill wisely said:

This is no country of vast spaces and simple forms of mass production...it is by the many thousands of small individual enterprises and activities that the margin by which alone we can maintain ourselves has been procured.

The hiring credit for small businesses does just that. It supports all those small businesses, like the Home Hardware run by Todd Young in Wasaga Beach in my riding. A huge benefit of this program is the tax credit is actually automatically applied. Business owners need not waste their time filling in forms. We have cut red tape as well as deliver a tangible benefit for Canadian businesses.

I am now pleased to speak about the amendments our government proposes to part III of the Canada Labour Code under this legislation.

As members will see, the proposed amendments will not represent significant changes to either employer or employee rights or obligations under part III of Canada's Labour Code. These changes will be part of an overall effort to reduce red tape, cut the cost of government and make our programs and services more responsive to the needs of Canadians.

Part III of Canada's Labour Code establishes minimum working conditions for employees in federally-regulated industries, such as banking, telecommunications and cross-border transportation.

Part III covers hours of work, general holidays, annual vacations and statutory leaves.

Part III also has provisions to help employees recover unpaid wages and get recourse in case they are unjustly dismissed.

The second budget implementation act 2012 contains a number of amendments aimed at making it easier for employers to comply with part III requirements. These proposed amendments will streamline processes, reduce the costs of administering the Labour Code and facilitate the resolution of complaints. We will all benefit from this: workers, employers, and taxpayers.

First, we will be simplifying the calculation for holiday pay for employees from the nine annual paid general holidays provided for in the code. The current method of calculating general holiday pay is highly complex and difficult to apply. Different formulae have to be used, depending upon whether an employee is paid on a monthly, weekly or hourly basis.

In addition, the current eligibility requirements also exclude many employees, for example, part-time workers, from entitlements to holiday pay. The amendments we are proposing will make things simpler so that employers will find it easier to make the necessary calculations for employees' pay and will also make more employees eligible to qualify for these benefits. For regular employees, little will change. General holiday pay will be one-twentieth of total wages, not counting overtime earned in the four week period preceding the week of a general holiday.

For example, Paul, a regular employee working full-time as a manager for a shipping company and earning $1,000 a week would be entitled to $200 in general holiday pay for Thanksgiving.

For employees on commission whose earnings fluctuate, the formula would be one-sixtieth of total wages, not counting overtime, over the preceding 12 weeks. Therefore, Julie, who works as a sales representative on commission and earns a total of $12,000 of the 12 week period before Thanksgiving, would also be eligible for $200 in general holiday pay.

The proposed amendments will also simplify eligibility of requirements for general holiday pay.

It will still be necessary to have 30 days of employment with the employer, but employees will no longer be required to have earned wages for 15 of the 30 days preceding the holiday. This will be beneficial for part-time employees.

We are setting a clear 30-day deadline for employers to pay any vacation pay owed to an employee once his or her employment ends. This will serve to clarify employers' wage payment obligations under the code.

Currently, any person affected by a payment order or anyone who has been notified that his or her complaint is unfounded can appeal the decision. Appeals are heard and adjudicated by external referees appointed by the minister on a case-by-case basis.

Through these amendments, we are establishing an administrative mechanism to review inspectors' payment orders and their decisions to reject a complaint. The internal review will be conducted by the labour program officials and will confirm, amend or rescind inspectors' decisions. This will create a win-win proposition.

The new administrative review process is intended to lead to a quicker and more cost-effective resolution of complaints, while remaining fair for employers and employees.

As members can see, these proposed changes to part III of the code are mainly administrative in nature. Some of them simply formalize existing policy directives.

I should also mention that these proposed amendments will establish provisions in the Canada Labour Code that are similar to existing provincial legislation.

Finally, we are also proposing amendments to the Merchant Seamen Compensation Act to eliminate the Merchant Seamen Compensation Board. While these amendments will streamline the administration of the act, benefits to affected seamen will not be altered.

The board currently consists of three part-time members who adjudicate claims and determine benefits. The Merchant Seamen Act applies to only five shipping operators. Most of these seamen have eligibility coverage under provincial jurisdiction. In a typical year only one claim is made.

Given the very small workload, there is no good reason for the board to be retained and have yet another unnecessary administrative layer. Therefore, under the current legislation, we will remove the Merchant Seamen Compensation Board and provide that authority to the Minister of Labour.

Many of these changes we have proposed to part III of the Canada Labour Code were recommended by the Federal Labour Standards Review Commission, also known as the Arthurs Commission, in a 2006 report. Overall, these changes will not significantly alter the balance of rights or obligations of employees and employers under the Canada Labour Code. I think both employers and employees will benefit from these amendments, which will reduce the administrative burden and hopefully will result in a quick resolution of complaints.

Bill C-45, the economic action plan 2012, would provide my constituents in Simcoe—Grey a plan for jobs and growth, something that all Canadians want. Our government is responding to that by having an action plan in place.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I want to bring up a point.

My hon. colleague across the way talked about tax cuts and so on. On January 1, employment insurance premiums will go up for small businesses. I understand that there is a hiring tax credit, but it only covers half of the increase in the EI premiums.

Would my hon. colleague support the idea of doubling that hiring tax credit so she would not have to vote in favour of a tax hike for small businesses.

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, the employment insurance is dealt with in a separate envelope. Premiums meet the requirements. We are trying to stimulate small businesses and give them an opportunity to bring on more individuals and create jobs. That is something the opposition seems to be unable to do.

Those members voted against initiative after initiative, whether that be the targeted initiative for older workers or apprentice grant opportunities. The opposition members like to vote against job creation. We are about job creation and the hiring credit for small businesses is all about that.