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.

Motions in amendment

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

Mr. Speaker, first of all I would like to correct what my friend just said, which is that it is an unprecedented measure. The precedent was Bill C-38 which also established a multitude of statutes. There were amendments to more than 70 pieces of legislation. Bill C-45 is the second bill of this kind. There was therefore a precedent.

In response to my colleague's question, we discussed various things in subcommittee. Amendments to the dates were proposed and there was a vote on referring various parts of the bill to different committees. This was all done in good faith and we could all see that the government was not being responsible and not acting in good faith when it proposed that committees should study the relevant items. For example, the Standing Committee on the Environment did not adequately study the Navigable Waters Protection Act. That is why the bill or parts thereof were referred to the committees. That is what we voted on.

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, I am very proud to rise and speak on behalf of my constituents of Nipissing—Timiskaming about our economic action plan 2012.

Canada, in stark contrast to other G7 countries, has had unparalleled success in leading the global recovery. We are resilient and prosperous. What has contributed to this record? Has it been by belabouring businesses with costly and redundant red tape? No. Has it been by implementing or maintaining fiscally unsustainable programs? No. Has it been by bloating government with a cradle to grave philosophy? No. Has it been by promoting an aggravating and massive $21 billion carbon tax as touted by the NDP? No, not at all.

The single reason why Canada remains resilient and prosperous, the explicit principle behind our success, is the courageous long-term vision of our Conservative government. Our sound fiscal framework has been rooted in our conviction to serve the interests of all Canadians now and well into the future.

It is easy for the opposition to sit across the aisle and fire accusations. Take, for example, our stance on the principled and necessary changes to OAS. The NDP believe, in spite of sober facts, that Canada should recklessly maintain an unsustainable framework. The member for Churchill claimed the other day that our changes were unfair to the younger generation. I challenge the NDP to explain how fair and reasonable it is to allow that younger generation to reach retirement age and realize that there is no money because the government at the time, fully seized of an unsustainable model, sat back and did absolutely nothing.

This is the kind of principled leadership that Canada needs and, indeed, is the kind of leadership Canadians voted for in 2011. Our government bases its decisions on principle and accountability to the Canadian people. This government will not sell out the future of this country for political convenience. Our plan for growth and long-term prosperity may at times be difficult, but it remains necessary. It is only our Conservative government that holds the courage and principle to do what is right.

I would like to quickly highlight three specific areas our government has improved for the long-term benefit of Canadians, ones that have a particular impact on my riding of Nipissing—Timiskaming, those being families, seniors and small businesses.

Our Conservative government remains committed to keeping families strong. Part of economic action plan 2012 has been our effort to provide families with the necessary relief and flexibility in their household budgets to ensure that they can meet the challenges and rewards of raising a family, especially those most vulnerable.

We first cut the GST from 7% to 6% to 5%, a tax write-off of about $1,000 back into the pockets of average families. We have decreased the lowest personal income tax to 15% and removed one million Canadians from the tax rolls altogether.

We also introduced the universal child care benefit, giving families flexibility and choice in daycare, by providing $1,200 a year for each child under six years of age. We have also invested in the quality of life and future of our young Canadians through the children's art and children's fitness tax credits.

New initiatives like the first-time homebuyer's tax credit are opening up new possibilities for Canadian families and reducing the economic challenges of keeping a family healthy and strong.

Our strong record of tax relief has, on average, put $3,100 back into the pockets of Canadian families. Indeed, Canadian families are the most essential part of Canadian life and they can count on their Conservative government to deliver principled results, as opposed to the opposition who remain fixed on a job-killing $21 billion carbon tax and all kinds of red tape.

With regard to seniors, our government has taken a principled stand on ensuring dignity and respect for those who have helped make Canada the great nation it is today. Our government recognizes that the global economic downturn has been difficult on many Canadians, including seniors. Again, our Conservative government has remained vigilant to provide relief and flexibility to seniors, especially those most vulnerable.

We have increased the amount that recipients of the guaranteed income supplement, GIS, can earn through employment without any reduction in their GIS benefits. We have also introduced the largest GIS increase in over 25 years, ensuring that eligible, low income seniors will receive additional assistance so that they may live in peace and security. We have increased the age credit amount to $2,000 and doubled the pension income credit to $2,000.

Our support for seniors has not been limited simply to direct financial help. We remain committed to improving the quality of life and ensuring the dignity of Canadian seniors. That is why we have taken steps to combat elder abuse in all forms; enhanced the new horizons for seniors program by providing an additional $10 million to promote volunteerism, mentorship and the social participation of seniors; and of course introduce tougher legislation for those who abuse seniors.

Having been in business and development my entire life, leading trade missions across the globe, I am particularly proud of our Conservative record in supporting small business. Whereas the opposition wants to drown small business owners with costly and redundant red tape, our government recognizes the crucial role that small business plays in the diversity and vitality of our Canadian economy.

Part of our government's principled, long-term vision is supporting opportunities for growth and long-term prosperity. We have increased direct financial support for business innovation through the National Research Council, the Canadian innovation commercialization program, and the industrial research and development intern program

Our job-creating hiring credit for small business benefited 534,000 employers in the last year alone. We have increased the small business limit to $500,000 and decreased the small business tax rate from 12% to 11%.

It is clear from these examples and the additional contents of our economic action plan 2012 that our Conservative government remains committed to making principled and necessary long-term commitments on behalf of Canadians for the benefit of Canadians.

I am rather disturbed that the only consistent argument put forward by the NDP is that this is an omnibus bill that should be reduced in size and broken up. I have news for the opposition: while we may be enjoying a fragile recovery, many Canadians have suffered in the recession and many continue to suffer.

Canadians need principled leadership now. Canadians chose a Conservative majority in 2011 because they knew and understood who would get the job done. Canadians understand that it is only Conservatives who have the intestinal fortitude to get the job done. This government will not take the easy way out. We will continue to fight for the benefit of Canadians now and in the long term.

While the NDP is continually focused on a $21 billion job-killing carbon tax, enforcing costly bureaucratic redundancy or prescribing the enforcement of the Migratory Birds Convention Act as solutions to reviving the manufacturing sector, it is our government that continues to deliver principled results.

It is no surprise that the opposition is so anti-growth, anti-business and anti-entrepreneur. Its solution to everything is to just throw money at it. A good look at Europe will show how those socialist policies turn out.

Frankly, I do not think the opposition believes in the capacities of Canadians and the potential of Canada. Opposition members consistently spout and defend divisive rhetoric. Even the Liberals, like the member for Papineau, believe that if someone is not from a specific part of the country, he or she is not fit to govern.

Our economic action plan 2012 is for the benefit of Canadians. It was tailored in consultation with Canadians from coast to coast to coast and is proving to be a sound fiscal framework. Canadians need to realize their full potential and live their lives how they want to live them.

Our economic action plan 2012 will deliver growth, jobs and long-term prosperity. I encourage the opposition to support it. I encourage them to believe in Canadians and national unity in Canada.

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

Mr. Speaker, I enjoyed my colleague's quite amusing speech. In light of the information in the public arena, I would not say that it was wrong, because I am not allowed to say that, but I would say that it was completely misguided, if you will permit me the expression.

Can the member explain the $36 billion automobile tax that the Conservatives recently proposed?

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, I do not know about that tax, but the $21 billion carbon tax is the centrepiece of the NDP program. It seems to be focusing on a one-solution-fits-all carbon tax of $21 billion. It is beyond me why the NDP members will not explain that carbon tax yet are so focused on it. They seem to have no other policies than focusing on that tax.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I differ from my colleague. I was not amused by those remarks but somewhat saddened because they are so far off base. What was on base was a study by the Canadian Centre for Policy Alternatives on the effects of the government's policies in my region. The report indicates that as a result of the government's punitive action against Atlantic Canada, Atlantic Canadian communities and Atlantic Canadian families, “approximately 4400 direct full-time equivalent federal jobs, representing at least $300 million in salaries and wages, will be lost in the Atlantic region by 2014–15”.

The Conservative government is damaging the Atlantic Canadian economy. Now we have a senator, a political hack for the Prime Minister from the other place, in Atlantic Canada saying that he wants to fix this economic chaos by destroying the Constitution and eliminating Prince Edward Island, Nova Scotia and New Brunswick as provinces.

I ask the member, is it the Conservative Party's policy to do away with the constitutional and sovereign rights of maritime Canadians?

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, we are talking about the economic action plan 2012 here. We are talking about the growth of the Canadian economy and long-term prosperity for all Canadians, including Atlantic Canada. It is clear from the IMF and all the international bodies that Canada is doing among the best of all the G7 countries. Atlantic Canada will improve along with other Canadians as rule if we keep these policies. It is our government's plan to keep these policies, to continue the growth and long-term prosperity of Canadians everywhere, including Atlantic Canada.

[Parm Gill, Conservative, Brampton—Springdale, ON]

Mr. Speaker, I want to thank the hon. member for his passionate speech and hard work on behalf of his constituents.

I wonder if the member could highlight some of the positive benefits that will happen for his constituents after the bill passes the House, and some of the things that he may have heard from his constituents, and also the possible harm that the NDP carbon tax may cause to the economy?

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, what will happen is clear from the economic action plan. I have been a part of international business for most of my career. As I mentioned in my speech, it is clear from the initiatives that we have put in place to drive innovation and entrepreneurship in business that this will be of great benefit to our particular part of the province. I am thinking of the incentives through the National Research Council and the Canadian innovation commercialization program. These are all positive benefits for businesses in my area, which are not unlike Atlantic Canada.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures. I already had the opportunity to speak to the bill in the House, and we are still talking about it after examining it in the Standing Committee on Finance. The process has been very long. We embarked upon a marathon of votes. Indeed, we voted on amendments for several days in a row.

I do not know whether I should thank my Liberal colleagues for having introduced 3,000 amendments. I understand what they were trying to do—they were trying to talk about the issue at hand—but I am not sure about their approach. We have proposed amendments that are fair, well written, and that are intended to improve the bill.

Basically, this bill is a step backwards when it comes to the environment. My colleagues have said this several times during question period and in the House, in general. A number of measures are very damaging to the environment. I will come back to that.

One thing that I would like to discuss is the fact that the government often boasts that the bill will create jobs. Let us not forget that based on the initial budget and figures from the Department of Finance and the Minister of Finance, we know that the unemployment rate has gone up. If the goal was to make the unemployment rate go up, then I congratulate the Conservatives, because their efforts are paying off.

Several thousands of jobs are being lost as a result of this government's cuts. The Parliamentary Budget Officer estimates that approximately 43,000 jobs will be lost. If this is lumped together with previous cuts, approximately 102,000 jobs will have been lost.

When it comes to job losses, it is important to understand what is happening from an economic standpoint and, especially, in terms of services provided to Canadians. The Minister of Finance said from the outset that there would be no problem, and that services would in no way be affected, that Canadians would not see much of a change because services would not be affected.

In my opinion, it is already clear that services are being affected. In my riding of Brossard—La Prairie, the government closed a Canada Revenue Agency office, which means that persons with reduced mobility, who can normally apply for a disability tax credit, can no longer get information. It is becoming increasingly difficult for people who do not have access to the Internet or who have a hard time understanding what they see on the Internet. Forget about service by phone. It is extremely long and complicated. Once again, services are obviously being lost. This is just one example, but there are many others.

Another thing stood out to me in particular. Two weeks ago, I met with some people when I visited Whitehorse, Yukon.

They were really angry because the government decided to shut down the Canada Revenue Agency office in Whitehorse. That meant people had to drive 1,000 kilometres to the next CRA office. Basically, that means less services for people in Yukon and more cost to them, if they have to drive so far. Also, if they have questions to ask CRA officials, they may now have to go through a private consultant, someone they have to pay, and there will be increased fees in terms of postage.

Again, cutting off services to Canadians and increasing fees that are transferred to them is not the way to go when we talk about a budget, especially in the circumstances where we are right now with Europe being very slow and with the U.S. hopefully not going over a fiscal cliff at the end of this year or the beginning of next year. Things are not certain and what the government is doing is cutting services to Canadians and laying people off.

I want to come back to a subject that is very important to me: the environment. My colleagues often say that the NDP wants to implement a carbon tax. They refer to our plan and I know that they know they are not telling the truth.

I must admit that I am very disappointed to see adult elected officials straight out lying and spreading misinformation. It is sad to see that in the House. They try to be very nice with the Prime Minister; he gives them lines to repeat and they must listen to him.

I find it disappointing to see elected officials rising to read lies. I find it even more disappointing that they even go to the Standing Committee on Finance, where we are supposed to have intelligent discussions and talk about real issues, and they come out with such ridiculous statements.

I know that the members opposite know what a lie is. If they were listening, they would know that there is a difference between—

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Mr. Speaker, I rise on a point of order. About a minute ago my hon. friend used an unparliamentary word during his speech. He used the word “lies” in referring to—

[The Acting Speaker, Barry Devolin]

The Chair did not hear that comment. If it was used and the member would like to retract it, he may.

The hon. member for Brossard—La Prairie.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I would like to point out that I was not referring specifically to what an individual did, but rather about things that were being said in general. It was not an attack on a specific member. I do not, therefore, withdraw what I said—it is entirely true.

If my colleagues opposite were more aware and listened, they would know that there is a difference between a carbon market and a carbon tax.

When I ran in the 2008 election, the Liberals proposed a carbon tax, the Conservatives proposed a carbon market, as did the NDP. The difference with, and the advantage of, a carbon market is that it paves the way for the future. It is important to understand that there is a polluter-pay principle that must be taken into consideration.

Nevertheless, it is also important to think about investing in the future, in what is called “the green economy” and in technologies that, later, will ensure that we are less reliant on fossil fuels, such as oil. It is important to think about the future which, quite clearly, is not this Conservative government's intention, nor that of its members.

There is really a lack of vision, and there is a stark difference between what the Conservatives are saying, what we are saying, and even what the Liberals said about their carbon tax, which truly was a tax on carbon.

I would encourage my friends to think carefully about this and to get the information they need. If the issue is too complicated for them, we can explain it in point form and use illustrations. Then they might see the difference. However, they really need to understand these differences from the point of view of people who are interested in standing up for Canadians' interests rather than simply repeating and rehashing idiocies.

Once again, I would like to come back to Bill C-45 because it is important. The Conservatives have made changes and have chipped away at environmental protection provisions. The deputy environment critic has spoken about how the bill will directly affect lakes and navigable waters.

In fact, this bill is called “omnibus bill No. 2”. The government waged war on anything to do with environmental assessment in the first bill. Now that the Conservatives have realized that certain aspects of the environment are still protected, it has turned its attention to lakes and rivers. The Minister of Transport says that the legislation never protected lakes and rivers.

However, we know what we see, and our rivers and lakes must be protected. I come from Quebec and, in my opinion, there is nothing more important than water, and this holds true for Canada, too. It is crucial.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the member's comments, but, as I have raised before, Bill C-45 is the second budget bill that has been brought forward that contains an amazing amount of changes that would impact other legislation. Canadians need to be very much aware of just how unprecedented this legislation is. It is an attempt by the government, through the back door of a mandatory budget vote, to pass dozens and dozens of pieces of legislation that should have been stand alone. Had they been stand alone, there would have been ample opportunity for opposition parties to be diligent in posing questions and trying to get a better understanding of all that was being captured.

That did not happen and we now have Bill C-45 before us. The other night the NDP worked with the Conservative Party to limit debate on the budget bill. Why did the NDP move to limit debate and not allow the Liberal Party, at the very least, the opportunity to continue to ask questions about this very important bill that we should not even pass?

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I appreciate my colleague's question, but perhaps not its underlying premise. I will explain, because I know the hon. member was not present at the Standing Committee on Finance, so I do not know if he understands everything that happened.

What happened was that a motion was moved by the Conservatives, who can do whatever they like in this committee with the majority they have. The committee was able to debate until midnight, proposing amendments and discussing them. Then, at midnight, debate was shut down. I recognize that this is a non-transparent government that pushes us around and prevents debate. At that point, all we could do was vote.

The Liberals decided to use all the time to talk about "ridiculous" amendments. There are 3,000 amendments and some are very slight and lacking in substance. Sometimes they proposed amendments, the amendments were rejected, and in the end, they voted in favour of the proposal.

What we wanted to do was to debate these amendments, propose our own, and explain the advantages and disadvantages. There were more advantages. Unfortunately, the Liberals prevented us from having a proper discussion and debate.

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Mr. Speaker, one thing that astonishes me about the New Democrats is that they do not know anything about the environment. All they talk about is process.

Let me talk about our government's record. On our watch, sulphur dioxide emissions, nitrous oxide emissions and carbon dioxide emissions are down. We are number two in the world on water quality based on a 2010 UN report. We have doubled the amount of protected areas and environmental farm plans. Randle Reef is being cleaned up in Hamilton harbour. We have established new emission regulations.

We are actually doing something about the environment and all the New Democrats talk about is process. Why will they not focus on the environment?