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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 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

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.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:40 p.m.

NDP

Jamie Nicholls NDP Vaudreuil—Soulanges, QC

Mr. Speaker, there is something else that Forbes says. It is that there is something fundamentally unfair about a government that takes away so much of people's money, power and personal control, while telling them life will be better as a result. This budget is a good demonstration of that.

Would the hon. member support taking the $1.3 billion in taxpayers' money that is given to the fossil fuel industry, shifting it toward renewables and creating 18,000 jobs as a result, as outlined in the Blue Green Canada report that just came out a couple of days ago?

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:40 p.m.

Conservative

Dean Allison Conservative Niagara West—Glanbrook, ON

Mr. Speaker, that is one of the great things this government has done. We have continued to make sure we are able use and explore the resources we have here in Canada.

I might add that we continually look at ways to improve that. Companies are doing that now so that there is less of a footprint, and I think that speaks well for what our resource sector is doing.

We have also committed dollars to the renewable sector. I do not think it needs be either/or. We can do both. We need to be proud of the fact that we have a great resource base in this country. We need to continue to use that, but we can also look for other methods as well, as we have done.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:45 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I am wondering if the member recognizes that what we are really talking about today is the massive budget bill, which will have a profound impact on several pieces of legislation. It is historical in the sense of the size, the magnitude and the number of changes the government is bringing forward.

The member made reference to the European Union. One of the obligations in this budget bill will be that the people who live in the European Union are now going to have to go online to get a form that will allow them to come to Canada. It is a fairly significant change.

I do not know if the member was made aware of that or if the caucus was made aware of it. Does the member not think that, when laws are being changed to that degree, it would have been better to have had it as a separate piece of legislation as opposed to bringing it in through a budget implementation bill?

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:45 p.m.

Conservative

Dean Allison Conservative Niagara West—Glanbrook, ON

Mr. Speaker, as we look at some of the things I talked about—and I realize 10 minutes is really not an adequate amount of time to talk about all the things this government is doing—we have to look at the pieces.

We have talked about working with trade deals. We have talked about dealing with immigration issues. We have talked about research and development. We have talked about lower taxes. All these things are working together. The immigration piece is just one of those pieces. It is about how we welcome people to Canada and the kinds of people we welcome.

That is what makes this economic action plan so important, all the pieces working together so that we can have a strong and coherent strategy.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:45 p.m.

Oshawa Ontario

Conservative

Colin Carrie ConservativeParliamentary Secretary to the Minister of Health

Mr. Speaker, my colleague's excellent speech really highlights the difference between the government's plan and the opposition's plan.

We have seen absolutely no plan from the opposition. That is really scary. We have heard about the NDP's $21.5 billion carbon tax, but there are $56 billion worth of unfunded promises.

I want to ask the member, because he is very knowledgeable about fiscal responsibilities, where he thinks the NDP is going to get this $56 billion. When I add it up, a $21 billion carbon tax only pays for a certain amount of it. Where is it going to get the rest of that money?

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:45 p.m.

Conservative

Dean Allison Conservative Niagara West—Glanbrook, ON

Mr. Speaker, that is one of the things we have heard a little about here in the House, the $21 billion carbon tax.

We understand the NDP does not want to suggest that it would actually have to collect taxes for this, but I am not sure how else it would pay for all these programs.

If we look at it, I know the NDP members talk about our government looking at this in 2008, but here we are in 2012 and we have not seen that. Obviously, that was not part of our plan.

I would suggest that taxes would need to be raised to pay for all these things. It is unfortunate that what would happen is that hard-working Canadians would have to pay for all these additional taxes.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:45 p.m.

The Acting Speaker Bruce Stanton

Before we resume, I want to compliment members on guarding their time in that last round. Without making any reference to the content of the questions and comments, it was an outstanding round of questions and comments.

Resuming debate.

The hon. member for Saint-Hyacinthe—Bagot has the floor.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:45 p.m.

NDP

Marie-Claude Morin NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I could begin my speech by confidently making a statement about which I am now absolutely certain, to wit: parliamentary democracy is now a thing of the past in Canada's Parliament.

Omnibus bills, reflecting an almost obscene form of grandstanding, have become a habit in the House of Commons, like gag orders, I might add. That is why I am not all that happy about taking the floor in the House for a second time to speak about the second omnibus budget implementation bill, Bill C-45.

On the other hand, I am pleased to be able to stand up for my constituents, because I believe that it is important for them to be aware of the government's sabotage. It is sabotaging our social programs, our regions, our employment insurance, the quality of our food, our environment, and our international reputation. I could go on about its sabotage for the next 10 minutes of my speech. That is more or less what I will do, but in greater detail.

Just as Bill C-38 went beyond implementation of the 2012 budget by making many other previously unannounced changes, we find ourselves once again dealing with a bill that goes far beyond simply implementing a budget. Much too far. We said so in May when the Trojan horse bill was forced through, and we are saying it again today: this is not an acceptable way of doing things in this House, in a democratic system. I will always speak out in this House against such practices.

Bill C-45 is 450 pages long and contains clauses that concern a host of disparate measures. It amends more than 60 acts. Needless to say, the bill also assigns more power to ministers. This worrisome Conservative penchant for concentrating power is proceeding apace. Bill C-45 eliminates some commissions to allow ministers to make more decisions without consultation and without having to answer to anyone.

It is also important to speak out about the weakening of our environmental protection measures, and of our ability to ensure sustainable development for future generations. I am really concerned that they could not care less about the next generation.

Bill C-45 also destroys the Navigable Waterways Protection Act and takes the teeth out of the Canadian Environmental Protection Act. The Conservatives did not even allow the Standing Committee on Environment and Sustainable Development to study these changes, even though they will have a major impact on our environment.

The Minister of Transport likes to repeat ad nauseam that navigable waterways and the environment are two different things, but the fact is that there are fish in the water! They need protection because they are part of our ecosystem. And while it may be true that they are two different things, in the end, they go together.

Bill C-45 also proposes major changes to the Canada Grain Act. These changes, made without consulting anyone, will have a major impact on Canadian grain producers.

I will not discuss the proposed amendments to avoid any slips of the tongue, but will say instead that the government's amendments, drawn up without any consultations, make it more difficult for producers to challenge grain classification or weight decisions made by private grain producers. It is clear that this will be very harmful to the grain trade and small producers.

The Conservatives had assured us that Bill C-45 would hold no surprises. And yet, the 2012 budget did not say a thing about this. After reducing the powers of the Canadian Wheat Board and making budget cuts to AgriStability payments, the Conservatives have made it clear that they do not want to help farmers.

My riding is considered the larder of Quebec, and farming is everywhere.

Farmers in my riding are worried about the extent to which the government is ignoring and refusing to help them. And yet, they are the people who feed us all. Could they not be given at least a little recognition? That is the least the government could do for them.

Yet again, the Conservatives are trying to rush legislative measures through Parliament, keeping Canadians in the dark and not allowing them to learn more about them. In this bill, they go so far as to considerably reduce their own responsibilities. But governments have responsibilities. It seems to me that my colleagues across the way still do not know that. We have been working with this government for a year and a half, and I have yet to see them shoulder any responsibility for anything.

The government is also saying that the bill will create jobs. However, I have something to tell the House: according to the Parliamentary Budget Officer, the budget will lead to the loss of 43,000 jobs. Some job creation! We might return to the topic when some jobs have actually been created.

In reality, the budget would lead to a major hike in the unemployment rate, with fewer and fewer workers eligible for employment insurance. The main job creation measure in the bill is the introduction of a temporary hiring tax credit for small businesses. This is a measure we could support, because it is like motherhood. However, it only gives employers a maximum tax credit of $1,000 on their new employment insurance payments. That is not a lot. Even funnier, or even more ironic, the tax credit is available to employers for the 2012 tax year, even though 2012 has already ended. The 2012 year is ending now.

We just spoke about jobs. We might now talk about how poverty, homelessness and perhaps even housing. According to the Co-operative Housing Federation of Canada, 4 million Canadians, 750,000 of them children, are coping with pressing housing needs. By this we mean that their housing is too small, dirty and expensive, and that they cannot pay for it. Not only that, but between 150,000 and 300,000 Canadians currently live in the street.

Earlier, I spoke about the fact that the government must assume its responsibilities. The 2012 budget implementation bill does not contain any measures for housing or the fight against poverty. In my opinion, this is completely unacceptable. Yet, major institutions, such as the Wellesley Institute and the Canadian Federation of Municipalities have sounded the alarm several times. In the run up to the last budget, these organizations called on the federal government to invest money in housing. Obviously, nothing was done.

Housing is a crucial issue for families, people without families and seniors, a high-risk group. Seniors occupy one third of social housing units, and a third of them risked losing their housing as a result of the cutbacks the government has made over recent years. A lot of seniors and families are also at risk of losing their affordable housing because the long-term operating agreements between the federal government and housing co-operatives will not be renewed.

Once again, the government is not playing a leadership role. The NDP will focus its efforts on the real priorities of Canadian families: jobs, health care, pensions, environmental protection, the fight against poverty, agriculture, and the protection of workers. We have a plan to improve health care, to better reward those that create jobs, and to strengthen seniors' benefits. We also want to work in a transparent manner.

Unfortunately, the Conservatives are continuing to demonstrate that they are more interested in imposing their agenda than in being accountable to Canadians. Worse still, they have chosen to perpetuate an unsustainable situation. In our northern country, people are living in the streets and families must choose between paying their rent and feeding their children. The country is placing no importance on the environment and is jeopardizing the health of future generations with impunity. Canada is sabotaging assistance programs for people in need and is not at all concerned about the first nations.

It is high time that the government assume its responsibilities and play a leadership role in order to make our nation a land that welcomes people and a place where people want to live.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:55 p.m.

Oshawa Ontario

Conservative

Colin Carrie ConservativeParliamentary Secretary to the Minister of Health

Mr. Speaker, I thank my colleague for a very passionate speech. I did hear her criticize the budget, which is good. This is what the opposition should be doing. However, part of the opposition's job is to put forward an alternative but we did not really hear anything in that speech with any details.

However, what we do know is that the NDP has $56 billion in unfunded promises. To be responsible, one needs to tell Canadians where one will get the money to do that.

We have heard about the $21 billion carbon tax. We know the NDP voted against taking the GST from 7% to 6% to 5%. The NDP leader has been on the record saying that he wants to raise it.

When we subtract $21 billion from $56 billion, it just does not quite add up. We know about the carbon tax and the potential with the GST, but how will the NDP pay for this and where will it get the tax dollars?

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 3:55 p.m.

NDP

Marie-Claude Morin NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, it is funny that my colleague spoke about responsibilities. Being responsible means ensuring that Canada is a place where people want to live, as I said in my closing remarks. Being responsible means protecting the environment and ensuring that Canadians are not caught in the poverty trap. Investing in social programs and the environment is worthwhile. Sustainable development is worthwhile. Having a country of healthy people is worthwhile.

This is how we intend to fund what we are proposing to Canadians.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 4 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, in the member's opening remarks, she spoke very passionately about how bad the bill is, how undemocratic it is and so forth on principle. I appreciated those comments but I have a question for her. How, from the NDP's perspective, does she reconcile that with her caucus' behaviour in terms of allowing the bill to pass so easily in committee? The NDP members voted to support limiting debate on the motion. They voted to overturn the chair. They voted to support over 1,000 times the Conservative budget. How does she reconcile her opening remarks and those facts?

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 4 p.m.

NDP

Marie-Claude Morin NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, the Liberals proposed 3,000 amendments to the bill. I am not saying that these 3,000 amendments were superficial, but most of them were. If they did not want to vote on those amendments, they should not have proposed them.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 4 p.m.

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Mr. Speaker, my colleague mentioned earlier that 4 million Canadians had core housing needs and that between 150,000 and 300,000 of them were homeless, but there is nothing in the budget for housing. The hon. member referred to a study by the Wellesley Institute, but the Gaetz report also deals with the real cost of homelessness.

Personally, I think housing is an investment. I am convinced that my colleague agrees. Housing benefits the economy. This could be one way of paying some expenses. Therefore, perhaps the hon. member could tell us how providing housing to people benefits the economy.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 4 p.m.

NDP

Marie-Claude Morin NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, some people currently spend over 80% of their income on housing. Normally, one should not spend more than 30% of his budget on housing, in order to meet other basic needs such as food, clothing and providing for his children.

If people have adequate housing and if they pay a decent amount for their rent, they will consume more, have a decent standard of living, live in dignity, and they may also be in a better position to study and work. It is a cycle. It pays to invest in social programs.

Jobs and Growth Act, 2012Government Orders

November 29th, 2012 / 4 p.m.

Conservative

Blaine Calkins Conservative Wetaskiwin, AB

Mr. Speaker, it is certainly an honour and a pleasure to speak on the matter of our government's budget implementation bill.

I would like to begin my comments by congratulating the Prime Minister; the finance minister; my good colleague from Edmonton—Leduc, who chairs the Standing Committee on Finance and has done an excellent job in getting this through; and, of course, the two parliamentary secretaries for their excellent work in making sure that this bill got through committee and some of the treachery and traps planned for it there.

Canadians expect politicians to keep their promises, and the promises that we made to them in our previous elections are being delivered in this bill. The top priority of our government is to promote job creation and economic growth. That is our priority because of the positive results our policies have had in supporting Canadians so far. That is our priority because in a challenging global economy, we need to continue taking prudent action. It is also our priority because it is the priority of Canadians.

Since the introduction of Bill C-45, I have been hosting numerous round tables and town hall meetings in my riding and listening to the concerns of my constituents about the current landscape in Canada. I often hear calls for the reduction of unnecessary red tape, a key point in this bill.

Our government's plan to reduce red tape is quite clear. Our government is going to address specific irritants to businesses, as well as the systemic barriers that unnecessarily frustrate and burden Canadian businesses with additional delays, costs and unnecessary bureaucracy. Part of this plan includes implementing the one-for-one rule and committing to a red tape reduction action plan to reduce unnecessary and ineffective regulations, allowing small businesses to focus on growing and creating jobs.

Additionally, we know there is a need to modernize many of Canada's regulatory systems when it comes to project reviews. Since 2006, our government has been working to streamline the review process for major economic projects so that projects proceed in a timely fashion while protecting the environment. The government will propose legislation to modernize the regulatory system and realize the objective of one project-one review within a clearly defined time period.

Economic action plan 2012 also proposes $13.6 million over two years to fund the Canadian Environmental Assessment Agency in support of consultations with aboriginal peoples related to projects assessed under the Canadian Environmental Assessment Act to ensure that their rights and interests are respected and that they benefit from the economic development opportunities afforded to them.

Another issue that I have heard about in my riding, of course, is the issue of job creation. Canada's well-trained and highly educated workforce represents one of our key advantages in competing and succeeding in the global economy. We know that the key to a strong future is well-trained youth. That is why we are investing $50 million over two years to assist more young people to gain the necessary skills and experiences they need.

Far too often Canadians run into barriers or disincentives that discourage workforce participation. Better utilizing Canada's workforce and making Canada's labour market more adaptable will help ensure Canada's long-term economic growth. That is why since 2006 the government has placed a strong emphasis on access to skills training, support for post-secondary education, building a fast and flexible economic immigration system and developing untapped potential in the labour market.

Economic action plan 2012 builds on this with an enhanced labour market focus and a number of targeted investments that will help respond to current labour market challenges and meet the longer-term labour market needs. We are also helping those who are unemployed get back on their feet by giving them the skills they need to find jobs in their communities.

Through economic action plan 2012, our government will invest $21 million over two years to improve efforts to connect employment insurance claimants with the necessary skills with available jobs in their communities, including through targeted information and compliance sessions. Along with providing relevant and timely job information, the government will strengthen and clarify what is required of claimants who are receiving regular employment insurance benefits and looking for work.

This bill also proposes investing $74 million over two years in new national employment insurance projects to ensure that claimants are not discouraged from accepting work while receiving those same EI benefits. This new pilot project would cut the current earnings clawback rate in half and apply to all earnings while on claim. This would ensure that EI claimants always benefit from accepting work by allowing them to keep more of what they earn while receiving EI benefits.

Economic action plan 2012 would also invest $387 million over two years to align the calculation of weekly EI benefit amounts with local labour market conditions. This new approach would reduce disincentives to accepting all available work prior to applying to the EI program, by permanently revising the way benefits are calculated.

Economic action plan 2012 would improve the integrity and fairness of the tax system by closing tax loopholes that allow some businesses and individuals to avoid paying their fair share of tax.

The plan would also improve the neutrality of the tax system by eliminating inefficient tax preferences. These actions would broaden and protect the tax base of federal and provincial governments, helping to keep Canadian tax rates competitive and low and thereby improving incentives to work, save and invest in Canada.

Our government would also continue to provide significant support through major federal transfers in 2012-13. Federal support, for example, to provinces and territories would reach an all-time high of $59 billion, some $3 billion more than last year. Total amounts for each major transfer would see year-over-year growth in 2012-13. For Alberta, my province, major transfers would total close to $3.6 billion in fiscal year 2012-13. This long-term growing support would help ensure that my Province of Alberta has the resources required to provide essential public services. It also contributes to shared national objectives, including health care, post-secondary education and other key components of Canada's social programs.

As elected members of Parliament, we have a duty to lead by example. That is why this budget also includes an overhaul of the MP pension system, with changes that would see pensions fall more into line with the private sector by moving toward a 50-50 cost sharing model and pushing back the age of eligibility to 65. Over the next five years, these changes, along with similar adjustments to the public service pensions, would save taxpayers $2.6 billion.

These types of measures would help us stay on the right track despite ongoing global economic uncertainty. Through our economic action plan, we have helped the Canadian economy grow over 820,000 net new jobs since July 2009, the best job-creation record in the G7. This legislation would keep Canada's economy on the right track.

Our Conservative government is spending taxpayer dollars responsibly and efficiently to continue our economic success and reduce our deficit. The results speak for themselves. Since July 2009, our debt to GDP ratio is the lowest in the G7 and our deficit is half of what it was two years ago. Canada's deficit in 2011-12 was down by about a quarter from 2010-11 and by more than half from 2009-10. We have also heard praise of our government's ongoing efforts to ensure continued responsible spending of taxpayer dollars, with direct program expenses in the 2011-12 fiscal year falling 0.6 percentage points as a share of GDP from their 2010-11 level.

The admiration of Canada's economic environment is not limited to foreign governments and dignitaries. Recently, Forbes magazine ranked Canada as the best country in the world to do business, and the OECD and the IMF predict that our economic growth will be among the strongest in the industrialized world over the next two years. All three of the major credit ratings agencies, Moody's, Fitch and Standard and Poor's, have reaffirmed Canada's top credit rating. These accomplishments are not the end of the road but a sign that our efforts are helping deliver for Canadians and must be continued.

That is why our government would continue to implement economic action plan 2012 through this budget implementation bill. As long as there are Canadians looking for work or concerned about economic turbulence beyond our borders, our job is not done. Bill C-45 is another step that our government is taking to balance the budget, create jobs for Canadians, reduce unnecessary red tape and remove the burdens of bureaucracy that slow down the progress of industry and citizens all across our country. Our Conservative government is keeping taxes low and remaining focused on jobs and growth. By doing everything we can to continue Canada's success, we are helping Canada stay on the right track for long-term growth and prosperity.

I am proud to support this bill and will continue to support the efforts of our government to improve Canada in the short and long terms.