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

This bill is from the 41st Parliament, 1st session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-45s:

C-45 (2023) Law An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act
C-45 (2017) Law Cannabis Act
C-45 (2014) Law Appropriation Act No. 4, 2014-15
C-45 (2010) Law Appropriation Act No. 3, 2010-2011
C-45 (2009) An Act to amend the Immigration and Refugee Protection Act
C-45 (2008) An Act to amend the National Defence Act and to make consequential amendments to other Acts

Votes

Dec. 5, 2012 Passed That the Bill be now read a third time and do pass.
Dec. 4, 2012 Passed That Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Schedule 1.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 515.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 464.
Dec. 4, 2012 Failed That Bill C-45, in Clause 437, be amended by deleting lines 25 to 34 on page 341.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 433.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 425.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 411.
Dec. 4, 2012 Failed That Bill C-45, in Clause 369, be amended by replacing lines 37 and 38 on page 313 with the following: “terminal elevator shall submit grain received into the elevator for an official weighing, in a manner authorized by the”
Dec. 4, 2012 Failed That Bill C-45, in Clause 362, be amended by replacing line 16 on page 310 with the following: “provide a security, in the form of a bond, for the purpose of”
Dec. 4, 2012 Failed That Bill C-45, in Clause 358, be amended by replacing line 8 on page 309 with the following: “reinspection of the grain, to the grain appeal tribunal for the Division or the chief grain”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 351.
Dec. 4, 2012 Failed That Bill C-45, in Clause 317, be amended by adding after line 22 on page 277 the following: “(7) Section 2 of the Act is renumbered as subsection 2(1) and is amended by adding the following: (2) For the purposes of this Act, when considering if a decision is in the public interest, the Minister shall take into account, as primary consideration, whether it would protect the public right of navigation, including the exercise, safeguard and promotion of that right.”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 316.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 315.
Dec. 4, 2012 Failed That Bill C-45, in Clause 313, be amended by deleting lines 15 to 24 on page 274.
Dec. 4, 2012 Failed That Bill C-45, in Clause 308, be amended by replacing line 29 on page 272 with the following: “national in respect of whom there is reason to believe that he or she poses a specific and credible security threat must, before entering Canada, apply”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 308.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 307.
Dec. 4, 2012 Failed That Bill C-45, in Clause 302, be amended by replacing lines 4 to 8 on page 271 with the following: “9. (1) Except in instances where a province is pursuing any of the legitimate objectives referred to in Article 404 of the Agreement, namely public security and safety, public order, protection of human, animal or plant life or health, protection of the environment, consumer protection, protection of the health, safety and well-being of workers, and affirmative action programs for disadvantaged groups, the Governor in Council may, by order, for the purpose of suspending benefits of equivalent effect or imposing retaliatory measures of equivalent effect in respect of a province under Article 1709 of the Agreement, do any”
Dec. 4, 2012 Failed That Bill C-45, in Clause 279, be amended (a) by replacing line 3 on page 265 with the following: “47. (1) The Minister may, following public consultation, designate any” (b) by replacing lines 8 to 15 on page 265 with the following: “specified in this Act, exercise the powers and perform the”
Dec. 4, 2012 Failed That Bill C-45, in Clause 274, be amended by adding after line 38 on page 262 the following: “(3) The council shall, within four months after the end of each year, submit to the Minister a report on the activities of the council during that year. (4) The Minister shall cause a copy of the report to be laid before each House of Parliament within 15 sitting days after the day on which the Minister receives it. (5) The Minister shall send a copy of the report to the lieutenant governor of each province immediately after a copy of the report is last laid before either House. (6) For the purpose of this section, “sitting day” means a day on which either House of Parliament sits.”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 269.
Dec. 4, 2012 Failed That Bill C-45, in Clause 266, be amended by adding after line 6 on page 260 the following: “12.2 Within six months after the day on which regulations made under subsection 12.1(8) come into force, the impact of section 12.1 and those regulations on privacy rights must be assessed and reported to each House of Parliament.”
Dec. 4, 2012 Failed That Bill C-45, in Clause 266, be amended by adding after line 6 on page 260 the following: “(9) For greater certainty, any prescribed information given to the Agency in relation to any persons on board or expected to be on board a conveyance shall be subject to the Privacy Act.”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 264.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 233.
Dec. 4, 2012 Failed That Bill C-45, in Clause 223, be amended by deleting lines 16 to 26 on page 239.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 219.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 206.
Dec. 4, 2012 Failed That Bill C-45, in Clause 179, be amended by adding after line 17 on page 208 the following: “(3) The exemption set out in subsection (1) applies if the person who proposes the construction of the bridge, parkway or any related work establishes, in relation to any work, undertaking or activity for the purpose of that construction, that the construction will not present a risk of net negative environmental impact.”
Dec. 4, 2012 Failed That Bill C-45, in Clause 179, be amended by adding after line 7 on page 208 the following: “(3) The exemptions set out in subsection (1) apply if the person who proposes the construction of the bridge, parkway or any related work establishes, in relation to any work, undertaking or activity for the purpose of the construction of the bridge, parkway or any related work, that the work, undertaking or activity ( a) will not impede navigation; ( b) will not cause destruction of fish or harmful alteration, disruption or destruction of fish habitat within the meaning of the Fisheries Act; and ( c) will not jeopardize the survival or recovery of a species listed in the Species at Risk Act.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 179.
Dec. 4, 2012 Failed That Bill C-45, in Clause 175, be amended by replacing lines 23 to 27 on page 204 with the following: “or any of its members in accordance with any treaty or land claims agreement or, consistent with inherent Aboriginal right, harvested by an Aboriginal organization or any of its members for traditional uses, including for food, social or ceremonial purposes;”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 173.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 166.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 156.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 99.
Dec. 4, 2012 Failed That Bill C-45, in Clause 27, be amended by replacing line 22 on page 38 to line 11 on page 39 with the following: “scribed offshore region, and that is acquired after March 28, 2012, 10%.”
Dec. 4, 2012 Failed That Bill C-45, in Clause 27, be amended by deleting line 14 on page 38 to line 11 on page 39.
Dec. 4, 2012 Failed That Bill C-45, in Clause 27, be amended by replacing line 17 on page 35 with the following: “( a.1) 19% of the amount by which the”
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 3.
Dec. 4, 2012 Failed That Bill C-45, in Clause 62, be amended by replacing line 26 on page 134 with the following: “( b) 65% multiplied by the proportion that”
Dec. 4, 2012 Failed That Bill C-45, in Clause 9, be amended by replacing line 3 on page 15 with the following: “before 2020, or”
Dec. 4, 2012 Failed That Bill C-45, in Clause 9, be amended by deleting lines 12 and 13 on page 14.
Dec. 4, 2012 Failed That Bill C-45 be amended by deleting Clause 1.
Dec. 3, 2012 Passed That, in relation to Bill C-45, a second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, not more than five further hours shall be allotted to the consideration at report stage and one sitting day shall be allotted to the third reading stage of the said Bill; and at the expiry of the time provided for the consideration at report stage and at fifteen minutes before the expiry of the time provided for government business on the day allotted to the consideration of the third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 30, 2012 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Oct. 25, 2012 Passed That, in relation to Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 3:45 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Mr. Speaker, I think I know where the member is going. I think he is saying that he has not had enough time to go through the budget bill and to go through it with a fine-tooth comb.

However, a lot of things that are in the budget bill have been there for quite a while and actually have been debated in previous sessions of Parliament, in different committees all the way through, in minority Parliaments. When we start looking back at the different items that are in it, we see they have actually had full flushing, either in committee or in the House of Commons or in both.

However, for some reason or another, whether there was an election or a minority government, it did not proceed forward.

So, if we were to look at it and talk to Canadians, they would ask why we would go through that whole process again, why we would spend all that time and all that effort and, more important, why we would waste all that money redoing all the work we have done in the past four years.

These things are not new concepts. These are concepts governments have used in the past: balanced budgets. Look at some of the provinces that have decided to maintain balanced budgets. Saskatchewan, for example, has a balanced budget. I cannot find enough employees in my riding to do the work. Why is that? Because the economy has been established in such a way that the business sector is flourishing like crazy, but it cannot find enough people.

So, as long as we keep making policies similar to that—

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 3:45 p.m.

The Acting Speaker Bruce Stanton

Order, please.

I appreciate the enthusiasm of members during the five-minute questions and comments period. I do not like to cut people off, but I know other members would like to put questions to the hon. member for Prince Albert.

Questions and comments, the hon. member for Markham—Unionville.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 3:45 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Mr. Speaker, I congratulate the hon. member for his speech and I want to ask a question relating to his comment about Canada as a shining light.

I wonder if he knows that the current Prime Minister has led Canada to its second lowest economic growth since R.B. Bennett during the Great Depression or that the Conservatives took five years to increase the national debt by 33% or that, for every $5 of debt accumulated since Confederation, one of those dollars was incurred in the last five years.

In light of this dismal record on growth and massive accumulation of debt, I wonder why he says Canada is a shining light, and I wonder whether he would not agree that, given this dismal record, the economic action plan is indeed far from perfect.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 3:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Mr. Speaker, I have to totally disagree with the member on that. In fact, I think the member should turn on his television at night and see what is going on in the rest of the world.

We are facing one of the worst global crises since 2008. It has been four years now that we have been in a global crisis. Look at Canada and look at the situation. Let us compare Canada to Greece. Let us compare Canada to Europe. Let us compare Canada to the U.S. Let us compare Canada to anybody else in the G8 or G7. This country is performing like crazy. The member should look at Canada and be proud of it. Instead, the Liberal Party wants to take out little facts, misleading figures or percentages and adjustments.

The reality is that Canadians are working. We need more people to work in Saskatchewan. Jobs are here. The economy is growing; it is stable; it is balanced. I cannot see what the problem is with that.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 3:50 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, I will be splitting my time with my hon. colleague, the member for Nickel Belt, the great riding that surrounds my great riding.

I am proud to rise in the House today to debunk the Conservative spin machine about the myths which members of the governing party have been reciting verbatim in their talking points on the government's second massive omnibus budget implementation bill that has been presented this year.

No, this is not The Matrix, but I think I am having a case of déjà vu as yet again parliamentarians have been presented with another massive omnibus bill that would make amendments to a wide range of acts often unrelated to one another and many having no place whatsoever in a budget bill.

The Conservatives clearly have not learned the lesson, which their own backbenchers like the member for Kootenay—Columbia highlighted in a meeting with his constituents on omnibus budget one back in the spring, namely, that Canadians do not approve of the Conservative approach of ramming legislation through Parliament without allowing Canadians and MPs to thoroughly examine it.

New Democrats understand this and, in our role as official opposition, we will not let Conservatives quietly pass this new omnibus legislation.

Canadians deserve better. They deserve transparency. They deserve a government that understands their priorities. They deserve a government that does not place the gutting of environmental protections over job creation. Come 2015, Canadians will get the government they deserve when they elect New Democrats from coast to coast to coast to govern, to increase transparency and prosperity for all Canadians.

The Conservative spin machine would like Canadians to believe that the second budget implementation act would lead to widespread job creation across the country. However, in spite of the ironic name of the bill, the jobs and growth act, the bill lacks significant measures to create jobs and stimulate long-term growth in the Canadian economy.

In fact, while the Conservative's PMO-supplied talking points claim that budget 2012 centres on job creation, Canada's Parliamentary Budget Officer has indicated that the budget would cost 43,000 Canadians their jobs. Moreover, the budget itself forecasts a real rise in unemployment. So much for the self-created myth that the bill will lead to job creation.

The main policy prescription contained in Bill C-45 to stimulate job creation is the extension of the small business tax credit for new hires. This temporary measure offers a tax refund for small business employers on a portion equal to about $1,000 maximum of the employer's contribution to EI premiums, if the employer's EI premiums, which were $10,000 or less in 2011, and are greater in 2012.

While New Democrats support this measure, it is very limited and only gives employers a maximum of $1,000 in credits on their new EI employer payments. To make matters worse, it is only applicable in 2012.

Further, because the extension of this tax credit was not presented in the first budget implementation act, but rather was deferred until this fall session, small businesses were not able to plan for this measure for 2012, as the timing of this measure's introduction may come too late in the year for businesses to begin the planning necessary to take advantage of this tax credit.

As the Conservative's spin machine has taken a liking to referencing the NDP's 2012 election platform, let me use this opportunity to highlight that the New Democrats proposed a similar yet far more robust job creation tax credit, which can be found on page 8 of the party's platform.

The New Democrats proposed the introduction of a job creation tax credit that would provide up to $4,500 per new hire. Under the New Democrat's plan, employers would receive a one year rebate on the contributions for the Canada pension plan and Employment Insurance premiums for each new employee hired.

Further, companies and organizations that keep a new employee for 12 months or more, would have been eligible for a retention bonus, a $1,000 non-refundable tax credit. At the time of its presentation, independent analysis determined that this initiative would have helped create approximately 200,000 family-supporting jobs a year. Certainly this more expansive tax credit would be more beneficial than the meagre job creation strategy contained in budget 2012. If my math is right, this plan would create 243,000 more jobs than budget 2012 would, as the budget would directly result in the net loss of 43,000. That is some job creation strategy the PMO has cooked up.

Let me now use an on the ground example of how budget 2012 is having a negative effect on job creation in my riding of Sudbury, and I am certain in communities right across our great country. With budget 2012, there was a specific element designed to “streamline” government services. However, this streamlining was really just an exercise in slashing, cutting and burning with what had been effective programs provided by government to serve the needs of businesses both small and large in my community and in communities across our country.

For example, the closure of the regional Citizenship and Immigration office serves as a prime example of this ideological drive to cut back on these important services. The shuttering of Sudbury's office deprives my region of vital service which cannot be replaced by online services. In fact, there are a number of functions that are mandatory and have to be carried out in person, such as immigration interviews and citizenship exams. Depriving my region of immigration offices means that these interviews have to be carried out in southern Ontario, adding a burden for both employer and employee, while making it less likely that people will choose northern Ontario for sectors that require skilled workers and skilled immigration.

Moreover, cuts at Service Canada has businesses of all sizes waiting 14 weeks, which used to be two weeks, for labour market opinions, a dramatic increase in that traditional processing time of two weeks. As a result, some of Sudbury's business owners are now forgoing expansion because of this extra unneeded hassle.

I am not the only one in my community sounding the alarm bells over these cuts. According to the president of the Greater Sudbury Chamber of Commerce, skilled labour remains vital to the success of the local industry and it is a really big issue for its members. He said, “They cannot find sufficient skilled labour locally and are looking nationally and internationally for those workers”.

These examples are illustrative of how the PMO's ideological crusade against government services are having an adverse effect on local industry and the competitiveness of Canadian business, further debunking the Conservative spin that budget 2012 will result in robust job creation.

Ultimately this begs this question. Why is the government stifling economic growth, curbing job growth and putting the long-term health of Canada's economy at risk with reckless cuts contained in budget 2012?

I will close by reinforcing the notion that the New Democrats will always be proud to stand up for transparency and accountability. We will always stand up for sound economic policies which promote job creation and economic prosperity for all. We will always stand up for environmental protection. Finally, we will always stand up for retirement security and health care.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4 p.m.

Calgary Centre-North Alberta

Conservative

Michelle Rempel ConservativeParliamentary Secretary to the Minister of the Environment

Mr. Speaker, I always enjoy talking to my colleague in the House or outside the House about hairstyles.

When we look internationally, we see that, as my colleague before mentioned, there are global debt problems in certain countries. As any Canadian knows, when there is a debt crisis, we can do two things, even in our households. We can either spend less or make more money. Our government believes in a balance in that. That is why our economic plan 2012 had a variety of measures to both stimulate the economy for growth, but also to asked the question if government could deliver services more effectively and more efficiently.

Does the member support the measures to grow our economy, including strengthening support for our natural resource sector? Does he also support the fundamental principle that in any business and in government we can seek measures to both streamline and deliver services more effectively and more efficiently, which is the premise of budget 2012?

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, I always enjoy my conversations with the member, especially when it comes to my previous hairdos because I am slowly losing my hair. I actually had some and it is nice to talk about it every once in a while.

Relating to a more serious issue, when we talk about the budget, the member talked about growth. That party thinks of growth as cutting and slashing, and I will use an example that is happening in my riding. The services provided by Service Canada in my community have been cut. The immigration office in my community is shuttered and closed. What has that done? That has stopped the growth of many of the small businesses in my community. All of us in this place know that we need more skilled workers. Right now we do not have that, so we need the support of national and international workers. By shuttering and closing services, we are not seeing that, and that is affecting our economy and our growth.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4 p.m.

NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague from Sudbury for shedding light on this matter.

I would like to know what he thinks of my interpretation: governments, no matter their political stripe, do not create jobs, but they create the conditions that foster job creation.

It seems to me that the Conservative policies of the past few years have consequences. On the one hand, corporate tax cuts do not find their way back to the economy, and thus are not having the desired results. Members would have had to see the Minister of Finance cry a few weeks ago to understand that that was one of the results.

On the other hand, small businesses create the most jobs in Canada, but they are being offered peanuts over a very short period of time, which makes it impossible for them to take action.

Is my interpretation correct? Does my colleague have something else to add?

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, I thank the hon. member for focusing on the main economic drivers within our country, which is small and medium-sized businesses. We need to do what we can to continue to support them.

We on this side of the House have been talking about, for example, the voluntary code of conduct that the Conservatives have implemented on the interchange rates. It is still hurting many of our small retailers. The voluntary code is toothless and we see the big players, the credit card companies and the banks, taking advantage of this.

What we are also seeing in the budget bill is all of these things mixed together. We cannot even talk specifically about just the budget bill because we have to talk about the environment and all these other things as well.

We should be talking about what we had in our economic platform, which is a better way to stimulate growth, which is a better way to help small businesses and not these meagre amounts that the Conservatives will give them, which they will not even qualify for if the bill does not pass in time.

The Conservatives say one thing and do another. We on this side of the House support small businesses. We recognize they are the drivers of our economy.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4:05 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Mr. Speaker, recently the Broadbent Institute, headed by NDP insider and former NDP leader Ed Broadbent, released a report on the NDP-linked group's view on taxes. I want to read a bit of this report and get the member's reaction:

Taxes are the hinge that links citizens to one another and to the common good....We should also consider eliminating... the ‘boutique’ tax credits of recent budgets...consider implementing taxes on very large inheritances of wealth which pass morally-unjustifiable class privilege...Significant [tax] revenues could be raised by the introduction of a financial transactions tax, and by cracking down on tax evasion through offshore tax havens. Green taxes — such as a carbon tax—

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4:05 p.m.

The Acting Speaker Bruce Stanton

Order, please. I did indicate that we only had a short time, so I need to give time to the hon. member for Sudbury to respond.

The hon. member for Sudbury.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4:05 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Speaker, if we are going to be reading quotes, let me read a quick one about an omnibus budget bill. It says:

I just regret that we are proceeding with this omnibus approach to legislation which, because it lumps in things we support and things we do not support, unfortunately deprives us of the ability to support the government in votes where that would be appropriate.

Who said that? The Prime Minister said it. Why is the government moving forward with omnibus budget bills?

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4:05 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, I thank the member for Sudbury. With or without hair, he is the best MP ever elected in the history of Sudbury and he has a long career ahead of him.

I rise to speak to the government's second drive-by omnibus bill. I sincerely regret missing the speech from my leader, the Leader of the Opposition yesterday. I was in committee. From all reports and from reading the speech myself, I expected to see some yellow tape around the chamber today for what happened here. As I read my leader's speech, I recognized the theft of leadership from the Conservative Prime Minister and cabinet who have failed Canada and who are failing Canadians.

We have an official opposition that is laying out a real alternative vision for the country, one that protects our social safety net, one that offers real protection for food security, one that will not abandon our seniors or our military veterans and one that will lead to good-paying jobs.

I guess I thought I would see yellow tape around here today because the government is now seeing a real assault on all the wrong priorities it has. It favours its friends and the privileged minority who are well off. I also see an all out outbreak on the government's self-serving agenda and the beginning of real debate for our country on its future, on its choices, on sustainable development and on so much more.

I only have 10 minutes to highlight a few of those choices and where we as New Democrats differ fundamentally from the government and its ideology. I have but a few minutes to highlight why those voters in Durham, Calgary Centre and in Victoria, in their by-elections, have the first chance to reject this agenda that has so undermined our country's greatness and our potential for even more.

Budgets are about choices and priorities. I know that, having served for almost four years as a Rayside-Balfour town councillor outside of Sudbury. I know that from working 34 years at Inco mines. I know the value of good-paying jobs and what those jobs do for communities in Nickel Belt.

To set the context for my remarks, I will share some comments from constituents in Nickel Belt about their priorities. I asked them what they would do if they were prime minister. It is clear that they are not drinking the Kool-Aid that the Prime Minister serves his caucus.

They propose: reducing taxes for low income families with children, which would help Canada's economy; redirecting tax dollars to fund only essential services such as health care, education and basic infrastructure; building an oil pipeline from Alberta to eastern Canada, thereby creating numerous jobs and opportunities for everyone; keeping our scientists at work and our stations open; not selling off Canadian oil sands companies to Chinese state-owned companies—we do not need that type of company in Canada; eliminating the two-week waiting period for EI applicants—the bills do not stop for two weeks, nor do a person’s daily necessities; making sure that our pensions are secure; and bringing prices down for houses and cars.

I referred to the speech of the Leader of the Opposition. One thing I have noticed about my new leader is that he very much subscribes to the belief of our former leader, Jack Layton, that politics has to be more than opposition. It has to be proposition.

Canadians may reject a party, as they will do with the governing party, but they also want a reason for voting for a party, as they will do for the New Democrats in the next election.

We are here not only to say what is wrong with the budget but to say what we would do. The NDP will always be proud to stand up for transparency and accountability. We will always stand up for environmental protection. We will always stand up for retirement security and health care.

Last spring, the New Democrats did what the Conservative government refused to do. We went out and listened to Canadians about the budget bill.

The NDP promises to work transparently, to be accountable and to promote democratic consultation. We will urge the government to ensure that the relevant parts of Bill C-45 will be debated in the appropriate committees and that this bill can be thoroughly examined.

I know my leader also mentioned commentary by veteran economist and writer, David Crane. Speaking about Canada's abundant resources, this economist said that they are important but not enough. Canada needs a well-diversified economy, both in its sources of economic growth and its markets. These are his important words:

Ignoring the need for a vibrant advanced manufacturing industry and high-value knowledge-based services, as well as a resource sector that upgrades it output in Canada, is a recipe for disaster.

The NDP also wants to build a fair Canada. A country as rich as Canada is capable of paying for decent working conditions, and that is part of what an NDP government would bring.

Over my lifetime in the workplace, I have seen that Canada is losing that balanced economy that we had built up over decades, that being a strong and vibrant resource sector but also a primary sector that includes agriculture, the fisheries, a diverse and strong manufacturing sector and, of course, a service sector. This is where the Conservatives' claim to be good managers of the economy does not add up.

Let us do the math. Since the Conservatives came to power we have lost hundreds of thousands of good-paying manufacturing jobs, jobs that came with enough of a salary for a family to live on and often enough with a decent pension. Now these economic mismanagers like to crow about job creation, which is only part-time precarious work in the service sector and, more important, with no pensions.

We are also leaving a social debt because who will pick up the tab when those people retire without enough to live on? It will be our children and our children's children. If we allow the Conservatives to continue, we will become the first generation in Canadian history to leave less to the next generation than we ourselves received.

Under Tommy Douglas, the NDP was responsible for bringing free universal public portable and accessible medical care to our country. It is wrong to make fiscal choices that have Canadians choosing between having a sick child seen by a doctor and being able to put groceries on the table. Surely we can agree on this and come to a consensus that we do not want an American-style system.

This economic mismanagement by the government is harming Canada.

When we reduce the government's fiscal capacity and introduce service cuts we cannot grow the economy. We see these service cuts in northern Ontario. The Government of Canada increasingly is missing in action with cuts to front line staff, cuts to IT and cuts to online services.

We see Service Canada jobs disappearing in the north, the Government of Canada immigration offices closing and MPs stepping in to offer government services. We see the increasing burden on civil society and charities to feed the vulnerable and look after people facing serious life challenges to their health and well-being.

I will now move to the choices the Conservatives have made in this budget. They have spent tens of millions on propaganda advertising while telling Canadians the cupboard is bare for money for EI or OAS.

They are eliminating the Hazardous Material Information Review Commission that helps protect workers from hazardous materials in the workplace. That is not something the Conservatives talked about in the budget. It will have an effect on the lives of workers and we will fight it every step of the way.

They are dissolving the Canada-EI financing board, leaving the employment insurance account $9 billion in deficit. Do members remember that phantom agency?

They are scrapping the Experimental Lakes Area, which is the only place on the planet Earth where whole lake ecosystems can be studied.

They are cutting $47 million to food safety, over $100 million to air safety and making cuts to marine search and rescue centres. We are talking about services that literally save lives and the Conservatives are making cuts to them.

It is enough. The government is mismanaging the economy. We cannot support its choices or priorities for so few Canadians. We will work hard to oppose its vision and propose--

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4:15 p.m.

The Acting Speaker Bruce Stanton

The time allocated to the hon. member has expired. We will now go to questions and comments. The hon. member for Richmond Hill.

Job and Growth Act, 2012Government Orders

October 25th, 2012 / 4:15 p.m.

Conservative

Costas Menegakis Conservative Richmond Hill, ON

Mr. Speaker, I listened quite attentively to the hon. member opposite make some rather derogatory remarks. For someone who said that he, his party and his leader did not want to politicize the process, he did nothing but that during his speech.

The hon. member spoke about jobs. Since the global economic crisis, Canada was one of the first countries to come out of that relatively well with over 820,000 net new jobs being created in this country.

What would the hon. member have to say to those 820,000 people who have availed themselves of these jobs and are now getting dollars for their families and their homes?