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.

Opposition Motion—Aboriginal Canadians

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, it was interesting to listen to the minister because at the heart of the matter is how one defines a relationship on a nation-to-nation basis. The government continues to impose a top-down agenda. It claims that it has consulted, but if it truly has consulted, then why the wave of opposition to almost every bill that the government introduces? Bill C-45, the omnibus budget bill, sparked protests from coast to coast to coast because of the lack of consultation and because the bill directly impacted the rights of first nations in their own communities. The government did not consult in any way, shape or form on that legislation.

The Auditor General indicated in the 2011 report that in order to make meaningful change, first nations would have to fully participate in the development of legislative reforms and they would also have to co-lead discussions on identifying credible funding mechanisms.

If the government is truly committed to changing the nature of the relationship, would the minister today indicate, on point 8 of the Assembly of First Nations request, that the government has a dedicated cabinet committee with a secretary within the Privy Council with specific responsibility to the first nation-crown relationship to oversee implementation? Has that committee been appointed?

[John Duncan, Conservative, Minister of Aboriginal Affairs and Northern Development]

Mr. Speaker, I am pleased to rise today to speak to the motion by the member for Nanaimo—Cowichan. The member's motion calls for improved economic outcomes for first nations, Inuit and Métis, and a commitment on treaty implementation and meaningful consultation on legislation with aboriginal peoples in Canada.

I am proud of our government's record on improving the lives of aboriginal people in Canada. Since 2006, our government has made unprecedented investments that will make a concrete difference in the lives of aboriginal people, including skills training, housing on reserves, potable water, schools, treaty rights, protection of the rights of women and the resolution of land claims.

For example, we have built over 30 new schools on reserve and renovated more than 200 others. We have invested in a major way in safe drinking water systems. We have built over 10,000 new homes and renovated thousands more. We have increased funding for child and family services by 25%. We have legislated that the Canadian Human Rights Act will apply to first nation individuals living on reserves. This was a glaring discriminatory provision in the Canadian Human Rights Act, which we reversed, over the objections of the opposition.

We introduced legislation to improve the accountability of first nation governments to their people. We introduced legislation to create an open and transparent elections process, necessary for economic development. We have settled over 80 outstanding land claims, many of which had been languishing for 20 years in the hopper. We have invested in over 700 projects, linking aboriginals across Canada with job training and counselling services.

I have had a long history with first nations and have seen a lot of change over the years. I am very encouraged to see firsthand many examples of strong first nation leadership driving very positive change.

Aboriginal peoples represent the fastest growing population in Canada. Given the country's labour shortages and the proximity of first nation communities to resource development projects, there is a tremendous economic opportunity before us. That is why we have consistently invested in measures to improve aboriginal participation in the economy.

Like economic action plan 2012, economic action plan 2013 will be focused on jobs and opportunities for all Canadians, including first nations, Inuit and Métis.

Finding ways to ensure that first nations can benefit from resource development is a priority. It is good for first nations, for Canada, for our Métis and for our Inuit. Our government is investing in measures that will help ensure that first nations are well-positioned to take advantage of these and other economic opportunities. For example, our government has invested in over 700 initiatives to link aboriginal people with job training, mentoring and other supports. We also invest more than $400 million annually in direct funding for aboriginal skills development and training.

My department's major projects and investment funds initiative has also contributed over $22 million to support aboriginal participation in 87 energy and resource projects, such as hydro, mining, renewable energy and forestry. These contributions have helped create over 400 jobs and levered just over $307 million from public and private debt and equity financing sources.

In addition to these investments, our government has worked to modernize legislation to allow first nations and aboriginal organizations to operate at the speed of business. Last year, our government introduced Bill C-27, the first nations financial transparency act to allow first nations community members access to the same basic financial information about their government and their elected officials available to all other Canadians.

More specifically, the bill would require first nation elected officials to publish their statements of remuneration and expenses as well as their audited consolidated financial statements. The bill would provide community members with the information required to make informed decisions about their leadership and to provide investors with the confidence they need to enter into financial partnerships with first nations.

Now that the legislation is before the Senate committee, we hope to see it passed into law very soon.

The first nations financial transparency act was driven by grassroots first nation members who were calling for greater accountability from their governments. Many of these people have suffered retribution, including intimidation and verbal and physical abuse, for having spoken in support of greater transparency and accountability.

Another important legislative initiative that would foster jobs and economic growth is Bill C-47, the northern jobs and growth act, which includes the Nunavut planning and project assessment act and the Northwest Territories surface rights board act, along with related amendments to the Yukon Surface Rights Board Act. Together, these measures would fulfill outstanding obligations under the Nunavut Land Claims Agreement, as well as the Gwich'in and Sahtu land claims agreements, and respond to calls for measures to streamline and improve regulatory processes in the north. The bill is currently being studied by the Standing Committee on Aboriginal Affairs and Northern Development.

Amendments to the land designation sections of the Indian Act that comprised a portion of Bill C-45 would also create economic opportunities. These amendments would speed up the process for leasing lands for economic development purposes, while allowing first nations to maintain full ownership of their lands. As a result, it would provide greater flexibility for first nations to act on time-sensitive economic development opportunities. These amendments responded directly to first nations who had expressed frustration to me, to the standing committee and to other members with the overly complex and lengthy process of designating land, which was an impediment to investment opportunities.

I quote from Chief Shane Gottfriedson, chief of the Tk'emlúps Indian Band in British Columbia, speaking about these changes to the land designation process in Bill C-45. “[Before the changes] it was just horrific for us to try and do any sort of business within our territory”.

Chief Reginald Bellerose of the Muskowekwan First Nation in Saskatchewan also spoke in favour of the changes: “[Muskowekwan First Nation] recognizes the positive steps the federal government has made to assist First Nation communities to operate in a more efficient and commercial manner. Specifically, Bill C-45 provides for a more efficient land designation vote process”.

We have heard from first nations that they want to be able to move at the speed of business and we continue to work with willing partners to remove economic barriers to the success of first nation communities as they seek out opportunities to generate wealth for their communities and their members.

If further proof was needed that legislative action can speed economic development, I would like to point to my announcement just last week on new regulations under the First Nations Commercial and Industrial Development Act that will allow the Kitimat natural gas facility on the Haisla First Nation's Bees Indian Reserve No. 6 to move forward. The Kitimat LNG facility will provide Canada's energy producers with a doorway to overseas markets. It will create well-paying jobs and economic growth opportunities for the Haisla First Nation and the entire northwest region of British Columbia.

We have also invested in modernizing the land management regimes for first nations so that they can unlock the potential of their lands and natural resources. This past month I announced that eight more first nations will soon be operating under the First Nations Land Management Act. These first nations have chosen freedom from 34 land-related sections of the Indian Act, which were holding them back from achieving their full economic potential. They now have power over their own reserve lands and resources so that they can take advantage of economic activities without wading through bureaucratic red tape.

This is in addition to 18 other first nations that I announced last January, making a total of 69 first nations that can now develop their own land codes, which will allow them to more quickly and effectively pursue economic opportunities and create jobs. Through these initiatives we are putting in place the building blocks for future success. These foundational pieces will help prepare communities to take advantage of new economic opportunities available to them.

We are a business-like government. We like to obtain concrete results. We are making unprecedented investments in the spirit of partnership and we recognize historical grievances. This is why we have settled outstanding land claims that have been long languishing.

The government is committed to continue building on the progress we have made to improve living conditions for first nations and to create jobs and economic opportunities in their communities. Specifically, we are committed to expediting comprehensive claims and treaty implementation. We all recognize that while much progress has been made, more work remains to be done. We are taking steps to improve land claim and self-government negotiation processes. This includes identifying alternatives to negotiations that meet the interests of the parties as well as practical measures to make sure that first nations are ready and able to fully engage and participate in the process.

In some cases there are alternatives to comprehensive claims and we are good with that. For example, the Haisla, the Squamish First Nation and Westbank First Nation are not specifically interested in pursuing treaties. They realize there are other measures that can and have been put in place, which are expediting the conditions for economic prosperity for their communities. We are also involved currently in self-government negotiations on a number of historic treaties. An example of that is the Sioux Valley Dakota First Nation in Manitoba, where we anticipate imminently the conclusion of self-government negotiations.

There is a clear link between the strength of the relationship and the economic prosperity of first nations and all Canadians. Protection of aboriginal treaty rights and consultations with aboriginals are enshrined in our laws, which have been passed by this Parliament. This government fully respects our duty to consult. That is why we have conducted more than 5,000 consultations annually. As minister, I have visited over 50 first nation communities since 2010 and I have had hundreds of productive meetings with first nation chiefs, councillors and community members across Canada.

This government also undertook unprecedented consultations on Bill S-8, the safe drinking water for first nations act. We are currently in the midst of intensive consultations with first nation leaders, teachers, students and educators in the development of a first nation education act. I would like to highlight some of the important work that has been done on the development of a first nation education act.

In economic action plan 2012, our government committed to work with willing partners to establish a first nation education act that will establish the structures and standards to support strong and accountable education systems on reserve. Through intense consultations, we have committed to work with willing partners to have the legislation in place by September 2014. We are determined to follow through on this commitment.

First nation students are the only children in Canada whose education system is not governed by legislation. Our government, unlike previous governments, is committed to bringing forward such legislation. The legislation would provide the modern framework necessary to build standards and structures, strengthen governance and accountability, and provide the mechanism for stable, predictable and sustainable funding.

I would like to add that, as recently as yesterday, I met with the first nation education steering committee in British Columbia. We have other examples, such as Mi’kmaw Kina’matnewey in Nova Scotia, where these parameters are already in place. An important part of our consultation is to meet with first nation authorities that have already done much work in this area and are obtaining results of the kind that are setting a great example.

We are making other investments. We have also invested an additional $100 million over three years to help ensure readiness for the new education system to be put in place by September 2014. We committed an incremental $175 million, on top of the $200 million that we spend on an annual basis, to new school projects. It is unfortunate that the member who brought forward today's motion chose to vote against these investments in first nation education.

This past December I announced the launch of intensive face-to-face consultation with first nation parents, students, leaders, educators and others on the initiative. The first in a series of sessions began in Halifax last week. The second session will be in Saskatoon next week.

I want to state very clearly that there is no legislation drafted. The purpose of these ongoing consultations is to get views and feedback so that legislation can be drafted. The input gathered during consultations will help shape the drafting of the legislation. Once drafted, the proposed legislation will be shared with every first nation across Canada, as well as with provincial governments and other stakeholders for feedback.

Modern land claims and self-government agreements can also provide a path to self-sufficiency and unlock economic opportunities. We are working in partnership with first nations on a new results-based approach to treaty and self-government negotiations to achieve more treaties in less time so that aboriginal communities can begin to unlock economic opportunities that can be realized through treaties.

Under the new approach, our government will focus its resources on tables with the greatest potential for success to bring treaties to fruition. The chief commissioner of the B.C. Treaty Commission is strongly supportive of our new approach, saying that she is encouraged our government is accelerating progress. We have heard first nations' concerns and we are delivering necessary change. It is also clear that there are options to the treaty process. Our goal is to achieve treaties where we can and to develop options to treaties where we cannot.

I will conclude by saying that moving forward will take time and dedicated effort from all parties. We are fully committed to taking further steps along this journey. We will continue to focus on real structural reforms and increasing the effectiveness of long-term investments.

[Romeo Saganash, NDP, Abitibi—Baie-James—Nunavik—Eeyou, QC]

Mr. Speaker, I am pleased to be speaking today in support of this important motion put forward by my colleague for Nanaimo—Cowichan. I wish to thank her for her tireless efforts and dedication. I consider it a privilege to work alongside such a strong Canadian representative in our ranks.

Today we have a motion of extreme importance before us, one that can represent the start of a better future for all Canadians, if all parties in the House seize upon this important moment.

For nearly two months we have seen the issues of indigenous nations of Canada brought to the fore in ways that have never been seen before, with the Idle No More movement. We have seen peaceful protests, combined with proud expressions of aboriginal culture, raise awareness of these issues like never before. Who knew it would be a round dance revolution that would start this discussion in earnest? This movement has brought many issues onto the public agenda, some of which we are focusing on today and that call upon the government to act immediately.

However, from my observations, Idle No More comes back to some very simple principles: respect, partnership and a better future for all who now call this land home. When we talk about respect, we are talking about respecting the treaties and subsequent agreements that the Crown and Canada have entered into with indigenous nations. When we are talking about partnership, we are talking about the relationship those treaties envisioned: two peoples working together for the prosperity of all. When we talk about a better future for all, we are talking about what is possible if we finally tackle these outstanding issues rather than leaving them to fester.

These principles are the very foundation of our country. Do not forget: first peoples in this country were not conquered or defeated in some major military battle. Our ancestors welcomed the newcomers to their land, shared it with them and signed treaties that would become the legal foundation for the Canada of today.

These treaties that Canada and the Crown signed with aboriginal nations are an integral part of our foundational documents, along with the Constitution and the Charter of Rights and Freedoms. We, the NDP, have been conscious of those facts for a long time now, and our policies and approaches incorporate them.

Unfortunately, the same cannot be said of the current government. Its actions and words demonstrate that either it does not know our history or it is choosing to ignore it.

APTN News recently uncovered a staggering example of this very problem. On January 25, it reported details of a leaked confidential accounting of the Prime Minister's January 11 meeting with some first nations leaders. In that document, some very disturbing comments made by the President of the Treasury Board came to light. The document began by stating that he referred to the meeting as a meeting with “a group of at risk Canadians...”. Let that sink in for a moment. The minister of the Crown referred to the leaders and their peoples, not as Cree, Mi’kmaq, Ojibwa, Algonquin, or the proper name of any aboriginal nation; he referred to them as a group of at risk Canadians.

Some might call that a mistake, and others might call it a bad start, when restarting our foundational relationship. Most would call it disrespectful. I would hope that the hon. member for Parry Sound—Muskoka would take the chance at some point during this debate to apologize for that poor choice of words.

Unfortunately, that was not the only comment that came from the member at that meeting. The document went on to quote the President of the Treasury Board admitting that he did not understand the treaty relationship or why that discussion needs to occur before economic development.

I have to question why the Prime Minister took a minister with such lack of knowledge into the meeting, while benching his Minister of Intergovernmental Affairs, who I know has a very strong grasp of the issues, into that meeting. I have a great deal of respect for the knowledge and experience of the hon. member for Labrador, and I cannot help but wonder how serious the Prime Minister is when he leaves such a resource sitting on the sidelines.

The hon. member for Labrador has considerable experience in federal and provincial government consultations. The member for Parry Sound—Muskoka and President of the Treasury Board provided a good example of his lack of knowledge. According to the media in his riding, a few days after the January 11 meeting, he explained what he meant by “consultation”. Questioned about the fact that aboriginals were not consulted about Bill C-45, he said that there was a consultation; it was called a federal election. Wrong answer.

Recently, seemingly in response to the Idle No More movement, the government has started to use some language about its duties that I have found rather worrisome. The Prime Minister and his ministers have started to say they are happy to “work with willing partners” when it comes to dealing with outstanding aboriginal issues. The last time I checked, the Government of Canada had a duty to consult and accommodate all aboriginal peoples, not just those the government believes are willing. The government needs to understand it cannot ignore the situations it sees as more difficult. It might be harder to arrive at solutions in those cases, but it will not get any easier by simply ignoring them. As an example, why should the Innu of Labrador find that the Government of Canada will work with them because the government might consider them more willing, while the Innu from Quebec, represented by my good friend from Manicouagan, have their longstanding grievances ignored because the government is not willing to talk to them?

The motion before us today calls upon the government to “commit to action on treaty implementation and full and meaningful consultation on legislation that affects the rights of Aboriginal Canadians, as required by domestic and international law.” However, as we know, the Constitution and international law are continually evolving thanks to new legal instruments, such as the UN Declaration on the Rights of Indigenous Peoples and court rulings.

I find it sad that I have to remind the House that aboriginal people are among the small number of groups that constantly have to turn to the courts to have their basic constitutional rights respected.

It is estimated that the Government of Canada spends $300 million a year opposing the rights of aboriginal peoples before the courts. More often than not, the government loses those cases. The government has spent billions of dollars in recent decades trying to stop the inevitable, and meanwhile, court decisions are not implemented in a timely manner and progress continues to be impeded.

Earlier this month the Federal Court ruled in the Daniels decision that Métis and non-status aboriginals are Indians under the Constitution Act of 1867. This decision could have big implications once negotiations around its implementation are completed. This case was brought forward 13 years ago by the Métis leader Harry Daniels. Sadly, Harry passed away in 2004, eight years before this decision.

Thirteen years is a long time to have a case before the courts, not to mention it being very costly. For 13 years both Liberal and Conservative governments spent millions upon millions trying to deny Métis and non-status people their rights under the Constitution.

The government has yet to publicly state if it will appeal this ruling. If history is a guide, it is very likely the government will.

Some members on the government benches might be wondering what this has to do with the motion before us today. My answer is simple: one cannot properly act on implementing rights or start to take part in meaningful consultations while at the same time fighting the very concept of these rights in the courts.

In closing, the Conservative government has a lot to learn about this, and I sincerely hope it will begin doing things differently so we can see some real progress. In June 2008, the Prime Minister stood in this place and apologized for residential schools, and he promised a new relationship. Nearly five years later, it is quite clear that very little has changed for the better. We can accomplish great things, and quickly, when there is political will to do so. We in the official opposition have that will.

This motion is meant to help build a better future for everyone.

Meegwetch.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, what we have is a fundamental difference on how to move forward. The government has invested in some things; there have been some investments in education, housing and infrastructure. However, it is always top-down. If the government were serious about moving forward, it would work in a spirit of true partnership and consultation to bring first nations, Inuit and Métis up to the standard of living that the rest of Canadians expect.

If it is going so well, why have we had the Tsilhqot'in obtain leave to appeal to the Supreme Court on issues around aboriginal rights and title to the land? This is directly tied to economic development because this is a court case that has been going on for, I believe, two decades, with regard to logging in British Columbia. If it is going so well, why have Frog Lake and Mikisew Cree filed a notice of application for judicial review with the Federal Court in Ottawa with regard to Bill C-38 and Bill C-45? It is because they do not feel the government consulted appropriately around developing environmental policies, their implementation, and their impact on first nations communities.

Therefore, there is a fundamental difference about how to proceed here.

Motions in amendment

[Irwin Cotler, Liberal, Mount Royal, QC]

Mr. Speaker, the minister referenced a number of abuses of the immigration system, how the deportation process has been abused and the need, with which we concur, to improve the immigration system to ensure that serious criminals should not enjoy sanctuary in Canada and to provide necessary security for Canadians. All these are matters in which the House can concur.

However, Bill C-43 purports to address serious foreign criminality, which in fact is the aim of the parent bill, the Immigration and Refugee Protection Act. However, some of the provisions of Bill C-43 continue to remain troubling and some, in fact, may well contravene the charter. My colleague from Winnipeg North has suggested amendments, which I trust will enjoy support from all in this place.

My remarks this morning will first address some of the specific concerns with Bill C-43, including charter concerns. Second, and not unrelated, I will raise the question of why no report of charter inconsistency has yet been tabled by the Minister of Justice, pursuant to the exigencies of section 4.1 of the Department of Justice Act.

Before turning to these considerations there are two troubling situations from last year that warrant mention at the outset. In both cases a young permanent Canadian resident was deported to a war-torn, impoverished country. As these two young men were alone and unable to speak the local language, they were susceptible to the many criminal terrorist organizations in that country, Somalia, that prey on vulnerable youth. Indeed, in one of the cases the United Nations Human Rights Committee found that Canada jeopardized the right to life of the young man in question and was therefore in violation of its obligations under the International Covenant on Civil and Political Rights.

These two young permanent residents of Canada, Saeed Jama and Jama Warsame, though they had been here since childhood, had indeed committed offences, mostly drug related, and as such deportation proceedings were initiated against them following their convictions. That is as it should be. When non-citizens commit crimes in Canada deportation is a reasonable option. However, I offer the case of Mr. Jama and Mr. Warsame to illustrate the perspective nuances and complicating factors that might arise in deportation cases and to underline the importance of due process and the right to appeal deportation orders, not only in matters of the criminal processes the minister has rightly mentioned and referenced but notably on humanitarian and compassionate grounds.

As we seek, quite rightly, to streamline our immigration and deportation processes it is critical to ensure that humanitarian and compassionate considerations, as well as charter rights to security of the person and fundamentals of due process are not marginalized in the name of short-run expediency. Regrettably, the effect of the bill before us does precisely that. First, it reduces the threshold at which a conviction results in automatic deportation with no possibility of appeal from a sentence of two years to a sentence of six months.

The Minister of Citizenship and Immigration has defended this change by arguing that judges have been issuing sentences of two years less a day in order to circumvent the statute. In fact, judges issue such sentences because two years is the dividing line between federal and provincial incarceration. Canadian citizens regularly receive sentences of two years less a day, thus demonstrating that immigration status is patently not the reason for such sentencing.

Furthermore, if the government is so concerned about sentences of two years less a day, why is it no less concerned about sentences of six months less a day? The standard should not be any arbitrary number of months but rather the qualitative seriousness of the offence. This brings me to the point that has been noted in prior debate on the bill. Many of the offences that result in six month sentences in no way justify automatic deportation with no possibility of appeal.

Bill C-43 would establish a situation where a person could be brought here as an infant, be raised here, be as much a Canadian as the rest of us and then be automatically expelled without due process for making a recording in a movie theatre or, since the coming into force of Bill C-10, for possessing six marijuana plants. At a time when the government is intent on ushering in new and longer mandatory minimum sentences with respect to new offences, it can hardly be said about the Canadian justice system that there is necessarily a correlation between the length of a sentence and the seriousness, let alone the serious criminality, of the offence.

In particular, if the Conservatives wish to evince a genuine desire to rid Canada of serious criminals to ensure that these criminals would be brought to justice pursuant to our international obligations in this regard as well, why do they not commit adequate resources to the war crimes program to prosecute war criminals in Canada, as I have repeatedly urged them to do? Indeed, the remedy of deporting a war criminal may result either in a serious war criminal not being held accountable for justice violations at all, or in the reverse, being sent to a country where there is a substantial risk of torture or other cruel or degrading punishment. In either case, what we need at this point is an enhanced war crimes program so that we can deal with the serious war criminals in this country for whom the deportation remedy is not a remedy at all.

A second problem with the legislation is that it would allow the Minister of Citizenship, Immigration and Multiculturalism to deny temporary resident status for up to three years on the basis, as has been mentioned, of undefined public policy considerations. Even given the requirement that was added at committee, that the government produce an annual report listing and justifying such denials, this change would still carve out a sphere of unaccountable ministerial discretion and could lead to the further politicization of our immigration system. As a matter of fundamental fairness, people affected by government decisions should be informed of the reasons leading up to those decisions and allowed to present evidence in their favour. Bill C-43 would deny them that right. The legislation would also prohibit the minister from considering humanitarian and compassionate concerns in certain cases, which could also violate a number of Canada's international obligations.

In fact, several elements of the bill may contravene not only international agreements but our own Charter of Rights and Freedoms. The automatic deportation of individuals to situations of torture, terror and grave danger raises serious concerns with respect to section 7, the right to life, liberty and security of the person. As well, by denying the right to appeal the deportation orders and by empowering the minister to deny entry on arguably arbitrary and ill-defined grounds, the bill may violate the principles of fundamental justice.

These inconsistencies with the charter brush up against section 4.1 of the Department of Justice Act. Here, the Minister of Justice must, as stated in the act:

—examine...every Bill introduced in or presented to the House of Commons by a minister of the Crown, in order to ascertain whether any of the provisions thereof are inconsistent with the purposes and provisions of the Canadian Charter of Rights and Freedoms and the Minister shall report any such inconsistency to the House of Commons at the first convenient opportunity.

Yet, the Minister of Justice has tabled no such report on any bill or on this bill. This is not the first time that he has failed to do so when the government has introduced legislation that poses constitutional concerns. When I raised this issue at the justice committee hearings on Bill C-45 as well as in the House, the minister avoided the question. Indeed, a justice department employee is suing the government because he claims that he was suspended for raising this issue in court. I am not suggesting that the minister is deliberately violating the Department of Justice Act, but I await the minister's explanation of why he has apparently not been acting in accordance with it with respect to a number of bills, particularly if one takes the omnibus set of bills such as Bill C-10 with arguably constitutionally suspect provisions, as well as the one before us today in the so-called faster removal of foreign criminals act.

The title of the legislation is sufficiently disconcerting that I cannot close without addressing it. Many of these so-called foreign criminals referred to in Bill C-43 are long-time Canadian residents. To put that title on the bill is to pejoratively and prejudicially mischaracterize them at the outset and does harm to all our constituents.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I thank the House for the opportunity to speak to this important bill on behalf of my constituents of Surrey North.

It is safe to say that dealing with those non-citizens who commit serious crimes in Canada is essential and something in which we as New Democrats strongly believe. Unfortunately, the bill leaves much to be desired. Bill C-43 misses the mark and fails to address any of the holes with regard to training, allocation of resources and monitoring within the public service agencies that deal with non-citizens. Moreover, the bill would not protect public safety as the Conservatives would like everyone to believe.

Not only is the bill flawed in its content, but it also paints newcomers in a negative light. The bill redefines serious criminality for the purpose of access to an appeal of termination of admissibility. The bill would place increased discretionary powers in the hands of the Minister of Citizenship and Immigration by bluntly removing all necessary checks and balances that are in place.

Newcomers arrive on Canada's shores with the same goal as those who have been living here for generations. They want to build a better life for themselves and their families. The majority of newcomers never break the law, yet the Conservatives would paint with the same brush the few criminals and the many non-violent, non-criminal newcomers who arrive in Canada each year.

Let me be clear. We strongly support the quick removal of violent and dangerous non-citizen criminals.

Unfortunately, Bill C-43 would not succeed in its aims, but rather would give sweeping discretionary powers to the Minister of Citizenship and Immigration while completely ignoring much needed training and resources.

A number of people who spoke at committee pointed out that law enforcement agencies and immigration services are severely lacking resources. Our public service employees are lacking the resources to deal with people who do not comply with the current citizenship and immigration regulations and laws. The Conservatives know it is unfair to ask these already overburdened agencies to do more with fewer resources.

The Conservatives also know it is inappropriate to relieve the immigration minister of the responsibility to examine humanitarian circumstances.

The fact of the matter is that the Conservatives do not care. What they do care about is ramming through their radical Conservative agenda while hiding from oversight and avoiding accountability. The government has avoided accountability before. We saw it with the F-35s. The Conservatives are not taking responsibility for that fiasco. We also saw it with the Minister of Agriculture with regard to the meat poisoning that happened in Alberta. The government has failed to take responsibility and has failed to account for those serious flaws.

Clearly, the Conservative government's objective is to introduce measures that would contribute to a less transparent and more arbitrary approach to immigration.

As a responsible opposition, we have attempted to restore some vital checks and balances to this bill. We New Democrats have asked the government to work with us. We asked Conservative members at committee stage. In that effort we introduced a number of amendments to work across party lines to make the system better, to deal with violent offenders. However, the Conservatives would not entertain any of the amendments that were offered to them. This has happened not only with respect to this bill but with other bills that have been introduced. The Conservatives continually fail to look at some amendments.

Surely, of the thousands of amendments we have introduced at committee stage and report stage some of them would make sense. The government has failed to take a reasonable approach to our immigration system and other measures that have been put forward in this House. The amendments that were introduced were all rejected in favour of an irresponsible approach with no checks and balances and no accountability.

This is a bill that does not help our communities, nor does it respect our judicial process. Instead, it removes any discretion for a judge to consider the nature of the crime and the context in which it was committed. This includes any potential mental illness of refugees from war-torn countries. One can imagine coming from a war-torn country. Clearly, this bill does not address that.

Safe communities have long been a priority in my constituency of Surrey North and across the country. The objectives in the preamble of this bill make sense. Members can all agree that non-citizens who commit serious crimes should be dealt with quickly. For those reasons the NDP supported the bill at second reading in the hope that the Conservative government would be reasonable and would look at some of the amendments we had to offer to look at ways to improve the system. Yet again, like all the other bills that have come through the House, it has failed to entertain any one of those amendments. Once again we see the Conservatives pushing through their agenda at the expense of new and existing Canadians. This has been pointed out. The so-called foreign criminals, while there are 1.5 million permanent residents, is how these individuals are classified.

It is difficult to understand why the government is paying lip-service to the problem of non-citizen criminals and not addressing the important issue of shortage of resources. It is continuing to make cuts to the Canada Border Services Agency, Correctional Service Canada and the RCMP. Basically, while the minister is given more power, those on the front lines are once again being asked to do more with less. Members saw the report from the PBO's office yesterday where more services, front line workers and officers are being cut than at the back end. Clearly, the priorities of the government are not aligned with what needs to be done.

When I talk about priorities, there are constituents of mine who have come into my office wanting to be reunited with their parents and loved ones. They are having to wait six to eight years. Members have seen the long lineups and wait lists in a number of categories. The government has failed to address the wait lists for reuniting families.

I am an immigrant. I came to this country 33 years ago. It was through family reunification that I was able to come to this wonderful country. Now the same system is in place but the wait time is eight years to reunite with loved ones. That is not acceptable.

We believe we can prevent non-citizens who commit serious crimes from abusing our appeals process. We also believe this can be achieved without undermining their rights. Once again, the Conservatives plan to do exactly what they want to do with no regard for the people of this country or the democratic processes by which it should be governed. There is the rule of law.

Members all know what Conservatives do when they do not like rules. They break them or they undermine Parliament to change them. This is exactly what is happening with Bill C-43. We have seen this with Bill C-38 and Bill C-45, and the omnibus crime bill. If they do not like the rules, they will change them in such a way to drive the Conservative agenda.

In summary, we agree that non-citizens who commit serious crimes in Canada should be dealt with quickly. However, we cannot ignore the fact that this bill would concentrate more arbitrary power in the hands of a minister without the appropriate checks and balances.

My sincere hope is that the Conservatives will take a step back and think about the consequences of painting law-abiding newcomers who arrive in Canada each year with the same tainted brush.

We know that the method by which we go about removing foreign criminals from Canadian soil is flawed. We know it needs to be fixed. Bill C-43 fails to do this and hurts both Canadians and newcomers.

Technical Tax Amendments Act, 2012

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, as this is my first time rising in the House in 2013, I would like to take a minute to wish my constituents a happy and prosperous New Year.

I am glad to speak to Bill C-48 today, a bill that has been a long time coming. I hope it will not be another decade before we undergo this exercise again.

As we have heard, this is a huge bill. It addresses the changes to the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation. It is almost a thousand pages.

What sets this large piece of legislation apart from the omnibus budget implementation acts that we debated last year is that it makes changes to a few closely related pieces of legislation. Therefore, I am perplexed as to why the government did not just throw it all in with the other stuff.

As we heard today, these changes are mostly old news and have been in practice for a number of years. That said, the bill is needed, as it has been more than 10 years since we have updated tax code legislation.

It is not that there have not been changes. The bill will include hundreds of tax measures that are already in place and have been enacted by comfort letters. In that respect, a lot of Bill C-48 amounts to technical housekeeping.

As the House is aware, the New Democrats are supporting the bill, but that does not amount to the acceptance of the government's direction on taxation or the belief that this entire process should not be improved. Certainly, the long period between updates to the tax code lead us to the situation that we have now where the legislation becomes so large. If we were to go through this process a little more regularly, we could avoid the scenario where MPs are forced to vote on bills that defy thorough study.

Tax lawyer Thomas McDonnell stated as much in a blog that touches on Bill C-48 as he discussed the legislative process with respect to taxation in both the United States and Canada. He wrote:

This Bill will also be passed without much in the way of informed debate in the House. Most parliamentarians voting on it will admit that they have not read it, let alone tried to fully understand the consequences of voting for (or against) it. This is not how Parliament is supposed to deal with one of its essential functions–the raising of revenue.

With that in mind it seems fairly straightforward to suggest that the government would do well to set a more regular schedule for this type of legislation going forward. I cannot imagine that such a move would be anything but positive, especially for those people whose business it is to work with the tax code.

We know there is broad support to do the work set out in the bill to get these measures into the tax code proper. The Auditor General has told us that it is long overdue. She told Parliament in 2009 that there were at least 400 outstanding technical amendments that had not yet been put into legislation. Over 200 of those outstanding changes are addressed in Bill C-48. While the Auditor General acknowledged that most tax practitioners were relatively happy with the comfort letter process, she noted the need to enact the legislative changes the comfort letters identified. Why it took four years to act on that advice is a question the government will have to answer. With the support it is receiving for Bill C-48 today, it is obvious that this could have been done some time ago.

When we are speaking about taxes, especially in the technical manner that we are today, most Canadians will not be sitting on the edge of their seats. This is not a bill that is likely to be newsworthy, since most of it is old news. What the bill does a lot of is to bring existing measures into the tax code that are designed to curb tax avoidance, which is actually good news for the vast majority of Canadians.

While the political discourse on taxation is often stuck in one gear, namely how to cut taxes, what is usually lost in the debate is the role that taxes play. Despite the universal desire to pay less, most people recognize the necessity of taxes. They allow us to operate as a country and can help us do a lot of good. Let us not forget about all the infrastructure dollars that go into our communities; they come from part of our taxes.

It is also a simple fact that countries require revenue and that revenue largely comes from taxation. What people absolutely want to see is a tax system that is fair, a system that guards against tax avoidance and a system that does not reward those people who are in a position to hide their money from their country. People do not want to feel that they are paying to subsidize others who have managed to use loopholes to minimize their contribution. That will not sit well with hard-working Canadians, and it should not sit well with parliamentarians either.

New Democrats understand this. We believe in cracking down on both tax avoidance and tax evasion, while ensuring the integrity of our tax system. We support the changes being proposed in the bill, especially those that aim to reduce tax avoidance.

The work being proposed in Bill C-48 is long overdue. Among the beneficiaries of the bill will be small businesses. These are the cornerstone of our communities, and it is important for us to do everything we can to create an environment that would make it easier to do business. These business people have enough to worry about without having to consider things like comfort letters. In that respect, what we are debating here is good. We would be streamlining the workload that businesses will have to comply with. Based on what I hear from businesses in my constituency of Algoma—Manitoulin—Kapuskasing, that would be a good and welcome thing.

As we have heard today, it would be impossible for any one of us to give a detailed account of such a large bill in the limited time we have to speak to the bill, so I will touch on one last item that I believe is timely.

What I am talking about is part 7 of Bill C-48. Part 7 clarifies the minister's authority to amend schedules and annexes to tax administration agreements if doing so does not fundamentally change the terms of the agreement. It would also allow tax administration agreements for the first nations goods and services tax between the federal government and aboriginal governments to be administered through a provincial administration system if the province also administers the federal GST. If we think back to how that issue was bungled when the HST was rolled out in Ontario, it would certainly help us avoid a similar scenario in the future.

I am sure members remember the discussion on the HST in Ontario. When the HST was brought in, how it would affect first nations was an afterthought by the Conservative government. Only some eleventh-hour negotiating at the insistence of Ontario chiefs like Chief Shining Turtle of Whitefish River First Nation, who is also the chair of the United Chiefs and Councils of Mnidoo Mnising First Nations on Manitoulin Island and Anishinabek Nation Grand Council Chief Patrick Madahbee. They avoided a showdown over the issue. In the end the solution was there all along. The Conservative government and the Government of Ontario chose to ignore it until they had no choice.

It is fitting that the Idle No More national day of protest was held in front of Parliament today. This is a similar issue. Some of us, along with the leader of the NDP, took the opportunity to meet with these people who have travelled a long way to bring their message of dissatisfaction to Parliament. Much of the frustration they are expressing comes from exactly the type of oversight that was on display when the HST turned first nations' tax exempt status into an exercise in red tape. What was forgotten at that time was the constitutional obligation of the federal government to meaningfully consult and accommodate first nations in decisions that directly affect them. I would like members to think about that because it seems that people have forgotten those words. I will repeat them: meaningfully consulting, meaningfully accommodating first nations in decisions that directly affect them.

This has been a sticking point for the Conservative government and I hope it has now recognized that first nations are not going to merely roll over and accept top-down directives. Had the government consulted, it would have heard that messing with tax exempt status was a non-starter and it could have moved immediately to the solution. Had the government remembered about the HST fiasco, it would not have gone ahead with the type of legislation that it threw into Bill C-45.

I met with some young people from the Whitefish River first nation. They do not understand why the government is not respecting their treaty rights, the accords and other agreements that have been signed. They are beyond themselves when it comes to the fact that the government often does not respect doing meaningful consultation. They have a right to that. New Democrats are hopeful the government will now show signs of understanding this and will proceed accordingly.

In closing, I reiterate that although New Democrats are supporting this bill, it is by no means an endorsement of the government's tax policies which put too much of the burden on the little guy while allowing an increasingly freer ride for the top earners in this country. We remain unconvinced that such a model is the best way to create wealth or jobs, but that is not the goal of this legislation either.

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

Mr. Speaker, I wish you and all my colleagues and everyone on the Hill a very happy new year. I am very happy to be back after a good few weeks in my community and my constituency of Scarborough--Rouge River.

I am happy to rise today to speak to Bill C-48, An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation. Let us be straight. Bill C-48 is massive legislation that contains numerous technical changes. It is close to 1,000 pages long. This is definitely an omnibus bill, yet another omnibus from the government.

However, it is in stark contrast to the Conservatives' Trojan horse budget bills they presented as Bill C-38 and Bill C-45, which made sweeping changes to everything from environmental protection and government accountability to immigration and employment insurance, everything but the kitchen sink or everything and the kitchen sink.

Bill C-48 at least makes technical changes to a few closely related pieces of legislation. That is the big difference. The changes in Bill C-48 are largely designed to ensure the integrity of the tax system and discourage tax avoidance. The New Democrats believe in cracking down on both tax avoidance and tax evasion, while ensuring the integrity of our tax system. We support the changes being made in this bill, especially those that aim to reduce tax avoidance.

Moreover, the majority of measures in Bill C-48 have been in practice for several years, since it is the standard practice for tax measures to take effect upon their proposal. Once they have been announced, people accept them as adopted. It is for these reasons that we are supporting the bill. However, as I will reiterate later, the government needs to be more diligent in legislating these technical changes in a more timely manner rather than once every decade or so to avoid these massive pieces of legislation.

Bill C-48 includes outstanding legislative proposals dating as far back as 1998. Consultations with tax specialists and lawyers have indicated that the measures in Bill C-48 are overwhelmingly positive and that the changes in the bill are necessary technical changes. We believe these changes will in total be revenue positive and they generally move toward discouraging tax avoidance. Given the size of the bill, it certainly covers a great deal and many of these changes make sense.

Bill C-48 deals with offshore investment fund property and non-resident trusts and includes proposals from budget 2010 and August 2010 that are aimed at taxing the worldwide income of Canadian residents. It also deals with the taxation of foreign affiliates of Canadian multinational corporations.

The proposed amendments also ensure that provisions that use certain private law concepts, for example real and personal property, joint and several liability, reflect both the common law and civil law in both linguistic versions. Industry feedback that we received since July 2010 is entirely in favour of these changes.

The bill also includes: anti-avoidance measures for specific leasing property; ensures income trusts and partnerships are subject to the same loss utilization restrictions between corporations; limits the use of foreign tax credit generators for international tax avoidance; clarifies rules on taxable Canadian property for non-residents and migrants; and it provides an information regime for tax avoidance. All avoidance transactions, for example, any transaction where the purpose is to get a tax benefit must now be reported, even if the transaction is not abusive. Additional reporting will be required in cases where the transaction raises red flags for abuse of course.

The proposed bill clarifies the minister's authority to amend schedules and annexes to tax administration agreements if doing so does not fundamentally change the terms of the agreement which is already the practice.

The proposed bill also now allows tax administration agreements for the first nations goods and services tax between the federal government and aboriginal governments to be administered through a provincial administration system if the province also administers the federal GST. This will have the effect of simplifying the administration of the First Nations Goods and Services Tax Act.

However, these are all good things but I do have a few concerns that I would like to point out.

First and foremost is the timeliness and predictability. Given the complexities of this bill and its vast and massive scale, we believe the government needs to be more diligent and responsible when handling tax code. This bill seems way overdue. The government must ensure that tax proposals are legislated on a regular basis as failure to do so can create uncertainty in the business community, as well as among tax practitioners.

The chair of the tax and fiscal policy advisory group, in a prebudget consultation meeting on October 15, argued that implementing a sunset provision would ensure that tax amendments would be legislated and eliminate the growing backlog of unlegislated tax measures.

He stated that a sunset provision:

—would bring greater clarity and certainty to tax legislation, reduce the compliance and paperwork burden, and, perhaps most importantly, prevent any future legislative backlogs.

He also added that these:

—steps that would go some distance in improving and strengthening Canada's tax system. Canada needs a 21st century tax system that is simple, fair, efficient, and transparent with low, internationally competitive tax rates.

We agree. Efficiency, transparency and predictability in our tax code are important for Canadian businesses, fiscal planning and a healthy economy.

The Auditor General also agrees, and raised concerns a few years ago about the slow pace of the government in legislating these technical changes found in the Department of Finance comfort letters.

In 2009 it was raised at that time that there were at least 400 outstanding technical amendments that had not yet been put into legislation. Now, going on four years later, 200 of these outstanding amendments are finally being addressed in Bill C-48.

In the 2009 fall report, the Auditor General wrote:

No income tax technical bill has been passed since 2001. Although the government has said that an annual technical bill of routine housekeeping amendments to the Act is desirable, this has not happened. As a result, the Department of Finance Canada has a backlog of at least 400 technical amendments that have not been enacted, including 250 “comfort letters” dating back to 1998, recommending changes that have not been legislated.

While Bill C-48 aims to deal with more than 200 of these changes, it still leaves a good deal remaining. One has to wonder how long we, the business community and tax practitioners, will have to wait for the next update.

The second concern is with respect to transparency. Certainly the size of this bill, close to 1,000 pages, and the long lapse of time between Bill C-48 and the last technical tax bill indicate that this process clearly still needs improvement.

The government must work harder to ensure the integrity of our tax system. The size of this bill also says something about the government's concern for transparency. I hope this bill of approximately 1,000 pages receives thorough scrutiny by parliamentarians and full debate in the House and proper examination and consideration at all stages.

The large nature of the bill due to the infrequency of technical income tax bills has negative impacts on the business community and certainly makes it difficult for proper evaluation by Parliament.

As the Auditor General wrote:

If proposed technical changes are not tabled regularly, the volume of amendments becomes difficult for taxpayers, tax practitioners, and parliamentarians to absorb when they are grouped into a large package.

We need to do better and ensure that we are doing the necessary due diligence when we are responsible for the affairs of Canadians.

Finally, the third concern is compliance. While the measures in the bill are much needed and important, we also need to focus on compliance. While the vast majority of these measures in Bill C-48 have already been in practice for several years, as it is standard practice for tax measures to take effect upon their proposal, the aspects that have not yet taken effect typically involve direct reporting or compliance.

Compliance is extremely important to ensure the integrity of our tax system, as well as the need to close unexpected loopholes in a timely manner. While we agree that these changes are necessary, I wonder what efforts the government is going to take to ensure that people are complying with the ongoing technical changes?

Finally, ensuring the integrity of our tax system is essential. The last technical bill was passed in 2001 and the long lapse of time between Bill C-48 and the last technical bill indicates that this process still needs improvement.

The responsible management of tax code means that changes must be made on a regular and ongoing basis so those impacted are not left in a state of uncertainty. The Conservatives must ensure to further improve the process for getting these technical changes into legislation on a regular basis to create greater certainty, predictability and transparency in our tax system.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, we saw this last year with Bill C-38 and Bill C-45. The government brought in these large bills without any consultation with communities and rammed them through the House. Now we have another omnibus bill which deals with similar acts. I have to give that to the Conservatives. This legislation does not deal with hundreds of acts like Bill C-38 or Bill C-45 changed, but it would change a number of acts.

The Auditor General has asked for technical changes on a yearly basis so businesses can get to know them on a regular basis. Certainty would be provided to businesses, accountants and Canadians so they could deal with these on an ongoing basis. The Conservatives have basically waited 11 years to bring in this bill, 7 and a half years of their government and 6 and a half of another. We are happy with that, but the issue still remains. They have only dealt with half of the technical amendments that need to be changed and businesses need certainty. The Conservatives are clearly not providing that.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I will be splitting my time with the hon. member for Scarborough—Rouge River.

Before I begin I want to wish everyone a happy new year. Members are back from their constituencies after a break over the holidays. Let me tell you, Mr. Speaker, I have talked to hundreds of my constituents. The priorities of the current government are not the priorities of the people of north Surrey.

People are very concerned about a number of bills that were introduced last year. Clearly Bill C-38 and Bill C-45 are not the priorities of my constituents from Surrey North. They are concerned about the degradation of our environment and the service cuts being put in place. Those are some of the things I heard. I am hoping that the government will go in the direction that Canadians want. Canadians' priorities are about getting jobs and providing services to Canadians. Clearly the government has not done that.

It is an honour to rise today on behalf of my constituents from Surrey North to speak to Bill C-48, which is an act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation.

Bill C-48 is a massive, monster bill, with over 1,000 pages to it. Members have seen this before from the government. We have seen legislation, two omnibus bills introduced by the government in the last year. We had Bill C-38 and Bill C-45.

Members all know what was in those bills. Those bills dealt with hundreds of different laws. They amended different acts that made no sense whatsoever. Those bills should have been split into various different areas, which we then could have debated in the House. The Conservatives rammed them through without the proper oversight of Parliament and the parliamentary committees. We have seen that the Conservatives did not even listen to one amendment. There were thousands of amendments introduced in committee and in the House, but the Conservatives failed to take any of those amendments into consideration. They rammed those bills through and we are seeing the consequences of ramming those bills through the House.

This morning members saw a protest outside the House, when the Idle No More demonstrations took place. In fact, they took place across this country. One of their concerns is the government's lack of consultation with first nations. It is not only with first nations. The government failed to consult Canadians on legislation it was bringing in. It failed to consult the very people who should have been consulted, the very people whom Bill C-38 and Bill C-45 were going to impact.

Again, Bill C-48 is a large omnibus bill, but there is one difference from Bill C-38 and Bill C-45. The bill actually relates to income tax issues, but to put this together in a large bill is still an issue for the opposition. Basically a huge bill creates a huge burden for those trying to understand what is included and what is not included in the bill.

On top of that, members have not seen this sort of bill for the last 11 years. We heard from the Auditor General, through one of her recommendations, about the impact that doing this legislation every 11 years could have on our economy, on the services we deliver and on tax evasion and those sorts of things, which we are trying to prevent.

I am going to look at the concern that the Auditor General raised previously about the slow pace of government in legislating the technical changes found in the Department of Finance comfort letters. Certainly the size of the bill, which again is close to 1,000 pages, and the long lapse of time between Bill C-48 and the last technical tax bill indicate that this process still needs improvement.

It took 11 years to move on some of these technical income tax issues. We need to address this on a yearly basis so we can close the loopholes that people and corporations are taking advantage of. We should not be waiting 11 years to update our tax code and legislation and to crack down on tax avoidance and tax evasion. New Democrats believe in cracking down on tax evaders and tax avoiders while ensuring the integrity of our tax system. We support the changes being made in the bill, especially those aimed at reducing tax avoidance.

The bill is so massive that trying to decipher it, to look at what is included and what is not, is difficult. In fact there are 400 recommendations that were offered by the Auditor General. However, only about 200 are covered in the bill. Therefore, not only is this a slow pace but the government has still not addressed some of the loopholes that have been pointed out by the Auditor General.

This is a good bill. We should not be waiting 11 years to bring it forward to address some of the concerns that have been pointed out by not only the Auditor General but other Canadians and organizations that deal with tax evasion and tax issues on a daily basis. The CGA is one of the associations that has strongly criticized the government about the need to have the code updated on a regular, yearly basis so that it is up to date and our businesses have clarity as to what needs to be changed and what they are dealing with from the government side.

There are many parts to the bill. I am not going to go through all of them because I know I do not have a lot of time. Part 1 of the bill deals with the offshore investment fund property and non-resident trust and includes proposals from budget 2010. Also, some of the changes in Bill C-48 are largely designed to ensure the integrity of tax system remains in place and to discourage avoidance. They incorporate feedback on proposals previously in Bill C-10.

Part 2 deals with the taxation of foreign affiliates of Canadian multinationals. Some of these changes reflect proposals from way back in 2007 and 2006. It deals with a number of different areas, but the fact is that the government is failing to update our tax code so we can catch those avoiders and can provide certainty to businesses.

Auditor General Sheila Fraser's 2009 fall report states:

No income tax technical bill has been passed since 2001. Although the government has said that an annual technical bill of routine housekeeping amendments to the Act is desirable, this has not happened. As a result, the Department of Finance Canada has a backlog of at least 400 technical amendments that have not been enacted, including 250 “comfort letters” dating back to 1998, recommending changes that have not been legislated.

The Conservatives are failing to update some of the changes that are required. They are slow. Their priorities are not right. The priorities of Canadians are not the priorities of the government. We saw that with Bill C-38 and Bill C-45, where the government brought in omnibus bills and rammed them through the House without even consulting the very people they would impact.

In its pre-budget submission in 2012, the Certified General Accountants Association of Canada stated:

CGA-Canada strongly believes that the key to sustained economic recovery and enhanced economic growth lies in the government’s commitment to tax reform and red tape reduction. Therefore, CGA-Canada makes the following two key recommendations: 1. Modernize Canada’s tax system--make it simple, transparent and more efficient • Introduce and pass a technical tax bill to deal with unlegislated tax proposals • Implement a “sunset provision” to prevent future legislative backlogs....

I want to summarize this. The Conservatives have been slow to get these technical changes legislated and they go as far back as 1998. Bill C-48 aims to deal with more than 200 of these changes, but there is still a large number of technical codes that need to be changed. The Conservatives have failed in that sense.

[Jonathan Genest-Jourdain, NDP, Manicouagan, QC]

Mr. Speaker, I thank my colleague for that question.

I am going to draw on my experience. Over the holidays—they were supposed to be holidays, but that was not the case—I was asked to develop a course on the amendments to the Indian Act and on bills C-27, C-38 and C-45.

For Bill C-27, I addressed certain concepts related to accountability, sharing and public disclosure of financial information on economic transactions and the financial information of private on-reserve businesses. The imposition of those measures is a first in Canada. It is likely that they will be fast-tracked and ultimately adopted. Well, with Bill C-27, it will be a first. Private and corporate entities will have to make their financial information available to the general public on the band councils' websites for a minimum of 10 years.

Once again, it is likely that there will be cherry-picking, that these measures will be imposed on certain communities and that the government in power will be quite accommodating and hands-off with other communities that support it more. I submit to you that there is a willingness to keep the communities at a certain level.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I wish to thank my hon. colleague from Saint-Lambert for her excellent comment. Indeed, if there had been a time frame, we might not have had to deal with a doorstop of some 1,000 pages. It is almost impossible for the Standing Committee on Finance to consider all the changes in a reasonable and careful manner.

All members of this House were elected to work carefully and thoroughly. It is very important that we be given the tools to do so. When omnibus bills with hundreds of pages are introduced, like Bill C-38 and Bill C-45, we are prevented from doing our job. Yet it is very important that this work be done carefully.

I wish to thank my hon. colleague for pointing out that work to prevent tax evasion has unfortunately not been done on the other side. This is just one small step. It is not a serious one. We have to work much harder and make choices in order to carry out a tax reform that reflects our priorities. Instead of making old age security at age 67 a priority we should be focused on increasing the guaranteed income supplement, and on the environment, in order to offer a better tomorrow for future generations.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-48, An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation.

First of all, I would like to say that I will be sharing my time with my colleague from Manicouagan.

As I mentioned earlier and as many of my colleagues in the House of Commons have said today, this bill is very big. The bill is huge, and with nearly 1,000 pages, it is the size of a very thick brick. It is a bill that dates from 2001 and to which no amendments of this scale have been made.

This bill is so big because previous governments had been dragging their feet, because they did not do their job and because they took too long to bring the bill to the table. Because they did not do their job properly, today we are faced with a huge bill, a bill that we might call an omnibus bill.

However, this bill does not compare to the horrible omnibus bills C-38 and C-45, which covered a range of different items such as the environment, the economy and old age security. Those were really bad bills. It was with good reason that they were called “Trojan horses”. Those omnibus bills were horrible, “monster” bills.

This omnibus bill is acceptable as it deals only with income tax legislation. However, the problem is that the bill is so huge that it is practically impossible to study it carefully within the timeframe we have been given. The Conservative government must be much more attentive and efficient in bringing forward their bills on a more regular basis, which would allow us to have time to study the amendments to these bills.

In this regard, Auditor General Sheila Fraser stated in the report she tabled in the fall of 2009:

No income tax technical bill has been passed since 2001. Although the government has said that an annual technical bill of routine housekeeping amendments to the Act is desirable, this has not happened. As a result, the Department of Finance Canada has a backlog of at least 400 technical amendments that have not been enacted, including 250 “comfort letters” dating back to 1998, recommending changes that have not been legislated.

This has been dragging on since 1998.

If proposed technical changes are not tabled regularly, the volume of amendments becomes difficult for taxpayers, tax practitioners, and parliamentarians to absorb when they are grouped into a large package.

As I mentioned, that is what happened. The Conservatives have wasted time since coming to power, and now we have a hefty, 1,000-page omnibus bill. Of course I am neither an expert or a tax practitioner. However, as parliamentarians, it is important that we study bills with as much rigour as possible and within a reasonable amount of time. Unfortunately, we will not have the opportunity to do so with this bill.

Another point I would like to address is tax avoidance. Bill C-48 is a first step towards fighting tax evasion. However, the Conservative government is talking out of both sides of its mouth. On the one hand, it is taking a small step to prevent tax avoidance; on the other hand, it is signing bilateral agreements with countries that flaunt basic tax rules and are even tax havens. This government is not taking this seriously.

A number of my NDP colleagues sit on the finance committee. They heard some very interesting things from Brigitte Alepin, a very well-known tax expert. She has written two books that are reference works for anyone interested in fighting tax evasion and tax havens.

The first book is called Ces riches qui ne paient pas d'impôt. I recommend that all members of the House read it, particularly the Conservatives, since the work on tax evasion in Bill C-48 was not done properly. This excellent book, which was published in 2003, describes all the pernicious ways people use on a regular basis to avoid paying taxes, whether it be by deferring their taxes for ever or by inventing a rather questionable foundation.There are bona fide foundations but others can be very questionable. Clearly, there are also all sorts of subsidies.

I am going to talk about various issues but these are the choices that have to be made with a bill such as Bill C-48. The environment is very important and, right now, the government is shamelessly providing billions of dollars in subsidies to the oil and gas industries. They are even providing coal subsidies. I am not talking about tax evasion here but about subsidies that make the tax roll unfair and inequitable.

Ms. Alepin describes the three basic principles that are very important to a sound taxation system: the system must be simple, effective and fair. That is very important. However, right now, the Conservatives do not have a simple, effective and fair tax system, far from it. I mentioned a few aspects. I would like to read a short summary of Ms. Alepin's latest book, La crise fiscale qui vient, which is very interesting. If my colleagues have not read this wonderful book, I recommend that they all do so, particularly my Conservative colleagues since they did not do their work on the fight against tax evasion properly. This is what the book summary says:

The author identifies the signs of the impending fiscal crisis, which has already begun in most western economies. She provides a simple and enlightening description of the new conditions that exacerbate this crisis: the increased number of charitable foundations [I spoke about this earlier], the development of electronic commerce, the increasing use of tax havens [I also spoke about this], the competition between states to attract large corporations, etc. Although current governments seem to have given up on dealing with this crisis [and the Conservative government is a good example], Brigitte Alepin shows that there are solutions to this problem. She also shows how tax measures can help to reduce greenhouse gas emissions, among other things.

That is why I referred just now to tax measures and environmental measures. My colleagues also said that we could promote tax measures to favour, say, renovations. We had the ecoENERGY Retrofit--Homes program for energy efficient houses. Such programs are very good from the tax point of view. They are straightforward and keep the economy moving. It is the same thing here. When we have a government that stands up and earnestly tries to prevent tax evasion, and wants to invest in good things that benefit our economy and our planet and are good for our children and for future generations, we can make fairer and more enlightened choices.

To sum up, Brigitte Alepin is truly a tax expert. She has written other books, like Ces riches qui ne paient pas d'impôt about rich people who pay no taxes. The summary I have just read you is taken from La crise fiscale qui vient, about the looming fiscal crisis. I advise everyone to read these books, and of course to invite Ms. Alepin once again before the Standing Committee on Finance, because she has a lot of useful things to say.

In closing, it is very important when embarking on such reforms to do so quickly, so that there is not too much work to be done, so that it is not impossible to do it, and above all, to make enlightened choices that will be the right ones for future generations.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I will indeed be very brief. I would first of all like to congratulate my colleague on her excellent speech.

I would like to ask her a question about some concerns already raised by the Auditor General with regard to the slow pace at which the government enacted technical changes.

As mentioned earlier, this bill is nearly 1,000 pages long. It is huge. It could be called an omnibus bill, even though it is very different from Bill C-38 and Bill C-45, which were terrible, horrible omnibus bills because they tackled a range of issues. This bill is quite technical.

What does the member think of the Auditor General’s advice that the government should move faster in order to avoid ending up with a bill so huge it is impossible to adequately address all the issues? The government should be more efficient.

Aboriginal Affairs

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, the NDP has proposed an emergency debate on the breakdown of first nations and Crown relationships as evidenced by the continuing peaceful protests across the country. In fact, today on Parliament Hill, Idle No More has gathered to continue to raise these issues.

In particular, concerns are being raised that omnibus bills, Bill C-38 and Bill C-45, which affect inherent aboriginal rights, were passed into law without the constitutionally required consultation and accommodation. Now the Mikisew Cree First Nation and the Frog Lake First Nation have filed a notice of application for a judicial review on the conduct of the responsible ministers in developing environmental policies and the proposed implementation of those policies through the omnibus statutes, Bill C-38 and Bill C-45.

This is the first time since nationwide rallies began on December 10 that the House has had the opportunity to consider this matter. In that time, the rallies have grown, both in size and in the number of their locations across the country. International attention has been brought to these matters, with support for the protests from six continents. The continued disregard for the concerns being expressed at the grassroots level puts at risk Canada's economic security and the constitutional rights of its citizens.

Therefore, the NDP is requesting this emergency debate and I thank the Speaker for his careful consideration.