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 was last introduced in 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. The Library of Parliament often publishes better independent summaries.

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.

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.

Bill C-45—Time Allocation MotionJobs and Growth Act, 2012Government Orders

October 25th, 2012 / 10:05 a.m.
See context

York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

moved:

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 of the 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 of the 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.

October 24th, 2012 / 6 p.m.
See context

Conservative

Mark Adler Conservative York Centre, ON

Thank you, Chair.

I have a quick question for Mr. Sinclair.

In Bill C-45, which is part 2 of the Budget Implementation Act, we're calling for a one-year extension of the small business hiring tax credit. The NDP has already said they're opposed to it. You represent small business, medium-sized business. Can you talk about the advantages of that, why it has been so successful and why it needs to continue for another year?

Bill C-45--Notice of time allocation motionJobs and Growth Act, 2012Government Orders

October 24th, 2012 / 5:30 p.m.
See context

York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

Mr. Speaker, I rise on a point of order. Our economic action plan is working and it has helped support the creation of over 830,000 net new jobs since the downturn, but there is more to do. To continue this work we need to implement our plan for the passage of Bill C-45, the jobs and growth act.

I would like to advise that an agreement has not been reached under the provisions of Standing Order 78(1) or 78(2) with respect to the second reading stage of Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures. Thus, under the provisions of Standing Order 78(3), I give notice that a minister of the crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at this stage. It is my intention to propose four further days for the second reading debate of Bill C-45.

Jobs and Growth Act, 2012Government Orders

October 24th, 2012 / 5:25 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

That the clauses mentioned in section (g) of this motion do compose Bill C-53; that Bill C-53 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Health;

That the clauses mentioned in section (h) of this motion do compose Bill C-54; that Bill C-54 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Citizenship and Immigration;

That the clauses mentioned in section (i) and (k) of this motion do compose Bill C-55; that Bill C-55 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Environment and Sustainable Development;

That the clauses mentioned in section (j) of this motion do compose Bill C-56; that Bill C-56 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Agriculture and Agri-Food; and

That the clauses mentioned in section (l) of this motion do compose Bill C-57; that Bill C-57 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities;

That Bill C-45 retain the status on the order paper that it had prior to the adoption of this order; that Bill C-45 be reprinted as amended; and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

Mr. Speaker, we are proposing this motion to better study individually in the appropriate parliamentary committees this omnibus budget bill, which touches on dozens of different pieces of legislation. We find this motion to be in the interests of this parliamentary institution that has been so hard pressed by a Conservative majority that thinks it can run roughshod over the rights of Parliament.

Jobs and Growth Act, 2012Government Orders

October 24th, 2012 / 4:55 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, I would like to thank you for your ruling in this regard and remind you that this complaint is coming from the person who, earlier, referred us to page 282 of the budget, saying that it had to do with the Navigable Waters Protection Act when such is not the case.

The changes in the budget change the rules of the game for teachers and engineers. What we are trying to say about employment insurance is that, from now on, people will have to look for jobs located up to an hour away from where they live, otherwise they will lose their benefits. This is an unbelievable threat to industries that depend on seasonal workers.

For example, what are people in Atlantic Canada who work in the fishery supposed to do if the minister is saying that, from now on, they have to move? Someone cannot train to be a fisher in five hours, five days or even five months. It takes several seasons to train someone to work on a boat. The government is already draining these communities of their lifeblood because of our artificially high dollar. All our export industries are suffering terribly. This is being felt in Atlantic Canada in particular.

Governing also means understanding the country, the regional differences and the different regional needs. Rather than making allowances for that, the Conservatives are applying the same remedy everywhere. They are attacking regions that are sorely in need of a helping hand. Instead of that help, these regions are getting hit hard. That is what the Conservatives are doing.

What is more, the Conservatives are creating an economy where salaries will be much lower. There is less pressure with regard to all working conditions because of a series of measures that are being implemented. It is not by chance that, for the first time in Canada's history, the middle class has seen a clear drop in income, and this occurred in tandem with the signing of NAFTA.

Over the past 25 years, the middle class has seen its real net income drop. This is the first time this has happened. In other words, the richest 20% of Canadians are experiencing a rise in income while the other 80% of Canadians—it has been measured and proven—are experiencing a drop in income. These are the results of the neo-conservative policies of the current government and its Liberal predecessors, who aggressively pursued the same goals for 25 years.

This is putting downward pressure on incomes and on employment conditions. As though that were not enough, these agreements are creating a race to the bottom: temporary foreign workers who used to come and work in a few sectors, such as produce farms, will now be in several employment categories. The government trumpets the fact that we can pay them a lot less than Canadians. People are working hard in mines and many other sectors and what is the result? One simply has to go visit the steelworkers in Prince George, British Columbia, to see what kind of pressure they are under. It is hard work. They work hard their entire lives. They fought hard for fair wages only to be told that the Conservatives are going to force them to work two years longer before they can retire. Then, as though these workers did not have enough pressure on them, the Conservatives want to bring in workers from other countries and pay them lower wages, and this adds even more downward pressure. That is the Canada the Conservatives dream of, where workers are subjected to working conditions from the early 1900s. That is their vision.

The NDP wants to build a fair Canada. We hear appalling speeches, like the one we heard earlier, suggesting that our dream is heresy. A country as rich as Canada is capable of paying for decent working conditions, and that is part of what an NDP government will bring.

That is the path that the Conservatives are paving for us.

Do not forget that Bill C-38, the Conservatives' budget bill in the spring, repealed the Fair Wages and Hours of Labour Act. That is their vision.

They are not attacking one particular group or sector. Their goal is to drive down wages for all Canadians, a total lack of an economic plan. The government is not just failing workers but businesses that create jobs too. Canada faces a perfect storm of economic challenges. We have 500,000 lost manufacturing jobs, a $50 billion trade deficit, household debt at an all-time high, the worst American downturn since the Great Depression, and we are still in the middle of a eurozone crisis.

When we talk to Conservatives about the interest that we have in using our experience, our expertise and our capability to help in Europe, we get the usual talking points of “You want us to write a big cheque to Europe”. What imbecility. As if the idea of using our experience and our expertise to help avoid a crisis that will invariably negatively affect us is something wrong.

Yet those are the talking points that come out of the PMO because they make stuff up. That is all they have. They have nothing else. They make up pages in the budget and they make up plans for the NDP that have never existed, other than the ones that were the same ones they had. They make stuff up all day long because they cannot defend what they are actually doing. That is what we are talking about now, what is actually in here, what they are actually doing and the negative effect it is having on Canadian workers across the country.

What an irony Bill C-45 is. The jobs and growth act does not contain a plan to generate either. Budget 2012 kills more jobs than it creates. It contains no strategy for the 1.4 million out-of-work Canadians. The so-called centrepiece of the economic plan is the small business tax credit, which members can applaud because the NDP supports a tax credit. It was part of our 2011 platform. This one does not go far enough. It is worth a maximum of $1,000 and it lasts just one year. At best, it may be enough to help companies hire one full-time employee. It will not even make a dent in our lagging job numbers.

The truth is that the government continues its failed policy of lavish corporate tax cuts, even as companies ship jobs overseas. For example, one company demanded a 50% pay cut and shut its doors after receiving $5 million from the Conservatives. It was called Electro-Motive Diesel in London. I got to visit the workers on the picket line in the middle of the winter. It was an extraordinary experience because just a few months earlier a beaming Prime Minister had been out there with a $5 million cheque, because this was evidence of the success of his plan for jobs in Canada.

As soon as that election campaign was over, there was a little meeting. The bosses sat down and said, “We have a deal for you. You accept a 50% pay cut or we move your jobs south of the border”. The company closed, the jobs have been moved, it kept the $5 million and there are no longer any jobs in Canada. That is the Conservative plan.

Thirty years ago a young worker could work his or her way up a company ladder. Now workers have many different jobs in a lifetime. The incentive to invest in workers is being lost. A large workforce is no longer a sign of pride. A couple of generations ago, someone who was running a big company would be very proud and take great pride in stating the numbers in his workforce. Now the great pride is saying how many of those jobs were shipped to another country. That is the change. We have to get back to a feeling in Canada that it is a social responsibility to be proud to be creating good-paying jobs.

Why do we keep doing what the Conservatives do, investing in companies like Electro-Motive Diesel that do not invest in our workforce? This is the type of short-sightedness that we see all over Bill C-45.

For example, under the changes to the scientific research and experimental development tax credit, the program would be cut. The $500 million a year that it costs would be eliminated, but it would also reduce government support for business research and development at a time when businesses need to increase innovation to compete.

To put it another way, if we cannot get the Conservatives to do the right thing because it is the right thing, let us try to get them to do the right thing because it is actually good for the economy. The only way to increase wealth in our society is to increase knowledge, and this is the dumbing down of Canadian business. That is the Conservative legacy. It is going to hit manufacturing particularly hard at a time when they need a little oxygen to keep going.

We need tailored incentives that better serve businesses and our economy as a whole. There are a couple of good examples that can be looked at in Canada where long-term vision and incentive by the government has produced a great result.

For example, take a look at the TV and film industry in Toronto. There used to be a time when it was only New York and Hollywood. Now, Toronto is in there competing with them every step of the way, but it required a partnership between government, business and labour. Those tax incentives were there for decades and they worked their way through the system and are producing the great result of bringing in billions of dollars a year and lots of high-quality jobs. However, it required government involvement every step of the way. The Conservatives simply do not believe in that.

We should be building the next success story now. Instead, we are getting less for workers, less for Canadians and less for our economy. That is what the Conservatives are about, less for everyone.

In the business environment there should be the creation of a climate for growth. We have to ensure predictability. However, look at the catastrophe this week with the sale of a gas company. The government cannot even give the criteria on which the decision was based and it released its decision at 11:57 p.m. on a Friday.

The Conservatives cannot explain the decision. They have to hide it. Then when they come back into the House, they go back to their talking points and keep referring to the statute, but the decision uses criteria that are not in the statute. How is a foreign company looking to invest in Canada supposed to make an intelligent decision? We saw the effect on the stock market immediately on Monday. Stocks were getting pummelled. People do not know. This is a government that boasts about being close to business, but its actual decisions are hurting business.

This lack of predictability is something that we would change. We would clarify the rules for foreign investment. We would welcome investments and trade as long as it was reciprocal, responsible and fair.

What concerns us the most is that since 2009, there has been a strong trend towards eviscerating anything that has to do with environmental protection in Canada. In 2009, the government even did away with one of the first steps, which was the Navigable Waters Protection Act.

I remember that the Minister of Foreign Affairs called it the greatest job killer. We were confused. At the time, we told ourselves that it was not possible to pit the environment against the economy, since the past 50 years have shown us that they go hand in hand, because both of these things must progress together.

I remember being speechless in parliamentary committee, when I saw the Liberal Party vote with the Conservatives for the first time to start dismantling the Navigable Waters Protection Act. That was in 2009. That continued in 2010 and 2011, based on what we are seeing here. They are getting rid of the protections that are so important for everyone.

But the businesses themselves are the ones that want some predictability in all of this. They do not want to end up being told that they did not fulfill their obligations.

Instead of enforcing federal environmental protection legislation, such as the Fisheries Act, the Species at Risk Act, the Migratory Birds Convention Act, 1994, and so on, what are they doing? They are gutting these laws and changing them completely.

This is interesting, because we know that there are procedures, processes and ways of doing things, particularly in the oil sands, where the federal government no longer enforces these laws. The lack of enforcement will cause more degradation of ecosystems.

This government claims to be a law and order government. Normally, when a company violates the law, we force it to change its practices. But the Conservatives instead change the law to bring it in line with those practices.

I will give a concrete example having to do with the Navigable Waters Protection Act, which we were talking about earlier. In Canada, 37 rivers are considered to be heritage rivers. Of these 37 rivers, 27 will no longer be protected.

Now, 27 of Canada's 37 designated heritage rivers will no longer be protected. They include the Bloodvein River, in Manitoba and Ontario; the Cowichan River, British Columbia; the Clearwater River, Saskatchewan and Alberta; the Main River, Newfoundland and Labrador; the Margaree River, in Nova Scotia; the South Nahanni River, Northwest Territories; the Tatshenshini River, Yukon; the Mattawa River, Ontario; and the Upper Restigouche River, New Brunswick.

Mr. Speaker, I actually enjoy responding to the peanut gallery when they heckle. The question was, “Is it navigable?” Duh, yes. It is a definition in the law. No amount of rebranding will take away from the fact that the Navigable Waters Protection Act was meant to ensure sustainable development for future generations.

I mentioned the decision of Judge Lamer in the Oldman River case in my opening remarks. Let me read one section:

The Minister of Transport, in his capacity of decision maker under the Navigable Waters Protection Act must thus consider the environmental impact of the dam on such areas of federal jurisdiction as navigable waters, fisheries, Indians and Indian lands.

After that, the Conservatives stood up and said that law had nothing to do with the environment. Shame. It is Orwellian. The Conservatives made their website disappear after a question was asked by my colleague from Halifax yesterday. There were 29 references to the environment, and the Conservatives made them disappear. They want to make the environment disappear.

We are going to stand up and protect the environment, for now and for future generations. We are going to continue to fight the Conservatives' omnibus budget bills.

There are two different aspects that are being discussed today. When we look at the contents of what they are proposing, we get the results we are looking at here. We are hurting people. We are taking away programs. We are taking away protections that have been given in Canada for generations.

Before we even look at those, there is an aspect that all Canadians have to consider in what we are going through today, which is the continuation of what the Conservatives started in the spring. This type of omnibus budget bill is affecting dozens and dozens of different laws. We have fallen into the American trap of avoiding our parliamentary debate. Our system is different from the American budget system, where they tack on and tack on.

We remember the Prime Minister, and it was not something we have said, admitting that he never watches Canadian television and he never watches the Canadian news. He gets all his news from the Fox network. I guess it is not surprising that he thinks the American system applies here and he has simply given instructions to his House leader and his other officers to start following the American system of using a budget bill as sort of a catch-all, where they can throw in all the stuff they want to change. That is what we have here, again.

That is an undermining of our parliamentary democracy. Those are our institutions. The Conservatives are not only taking away things like medicare, free universal public medical care, and putting it in danger, the cuts I referred to earlier, the $36 billion that they announced without discussion or debate will lead inexorably to a two-tier system. That is just a fancy way of saying that poor people are going to have trouble seeing a doctor and rich people will have access because they will be able to pay for it.

That is not the Canadian system. That is not the Canadian way. We will stand up and fight that.

Yes, at every step, we will stand up because for the first time in a very long time we are beginning to have hope. In the next campaign, there will be two opposing visions for our country. There is the Conservative vision, which slashes the social safety net and takes out $10 billion every year. That is the figure they tried to hide. The cat was out of the bag yesterday.

I heard the member for Saint Boniface say earlier that they held lengthy budget briefings. Let us talk about those briefings. I was the finance critic for the official opposition for five budgets before I became the leader of the official opposition. Never before had I seen what I saw last spring. We often see the same people from year to year. They are usually in their offices. There is very little reason for them to be here, except for the few times they attend parliamentary committee hearings.

Officials are there to provide us with information. When I saw not only the budget cuts, but also the two-year increase in the retirement age, I went to see them to ask for a single figure that could be readily obtained. I asked them what adding two years of work would mean and how much money the government would be taking out of seniors' pockets.

This is what they told me, and I quote:

“I can't give you that information.”

I know a half-truth when I hear it. So I answered:

Are you telling me you can't give me that information because you don't have it, or are you telling me you have that information but you can't give it to me?

And the response, which was worthy of George Orwell, was:

“I can't give you that information.”

That is the Conservatives.

Yesterday the Auditor General confirmed the overall number. The Minister of Finance was asked that question at a press conference right in front of the House of Commons a few months ago. On our side, we had estimated that it was somewhere between $10 billion and $12 billion. We were not far off. They estimated it at $10 billion. The minister refused to give the number. He replied with his usual smile, as though he were saying “I do not give a damn”, that he had heard approximate numbers. Imagine that, a Minister of Finance who says such things. I can say one thing to my colleagues and to any seniors watching us at home: they can be sure that the two-year increase in the retirement age will be cancelled by an NDP government; we will put the retirement age back to 65.

We will stand up, unlike the members opposite who, day after day, have to parrot the lines written by the Prime Minister's Office. They sometimes have one minute a day in their poor little parliamentary lives to finally talk about their ridings and about real issues, and what do they do? They act like parrots. They are puppets, marionettes. They stand up and say exactly what the Prime Minister's Office tells them to say.

We can be reasonable. We can stand up and keep the real objectives in mind. We tell Canadians that when it comes to pensions, the integrity of our Parliament and our free, public health care system, we are proud to stand up for them. We will stand up for the environment, because we in the NDP know that we deserve better than what the Conservatives have been offering us for the past six years.

Since the Conservatives came to power, they have found many opportunities to invent titles for bills that say exactly the opposite of the bill's contents. Last week, I had the opportunity to say that if, by chance, they actually used the most recent incarnation of the mammoth budget bill to do what they promised to do in the election campaign, which was create jobs, we would vote in favour of the bill.

In the comments I made yesterday, I clearly explained that we could have a good discussion about some of the elements in this bill if we could split it. It could be done by splitting the bill and having different committees study it.

We believe that some things can and must be done. I gave an example earlier when I spoke about tax credits for creating jobs. That is how we could go about it.

We will not let the Conservatives fool us. We have become too accustomed to their empty promises. We are telling them outright that if they split the bill and divide it into coherent parts that can be easily studied, they will find that our party is willing to co-operate.

We shall see what they end up doing. We will test the Conservatives' ability to be true to their word. In the case of the Navigable Waters Protection Act, we saw that they said one thing and what was in the documents was altogether different.

Here are some of the elements that could be split off from the bill.

Here are some of the elements of Bill C-45 that could be split off from the bill and studied separately and properly in a parliamentary committee. It has already been shown it is possible because we did it last week.

By the way, I open a little parenthesis to say that there are 450,000 public servants in Canada who are very happy that the NDP actually read what the Liberals were putting in, because such is the Liberal incompetence that they were about to give one-two-three agreement to the enactment of a law that would have taken MPs' and senators' pensions and dealt with them on the same footing as the pensions of 450,000 civil servants.

The NDP stood up, demanded a change, and was able to get it done right.

It was so pathetic to see the House leader for the Liberals standing in the hallway, stuttering away, saying, “It was a spelling mistake. It was a typographical error.” That is one of his classics. Four hundred and fifty-thousand people are a typographical error for the Liberals.

Here are some of the elements that could be split off from the bill.

The gutting of the Canada Environmental Assessment Act should be before the environment committee. The gutting of the Navigable Waters Protection Act should be before the environment and transportation committee. The elimination of the Hazardous Materials Information Review Commission should, of course, go to the health committee. Cutting the SR and ED tax credits should be before the industry committee. Changes to the Fisheries Act should go to fisheries and oceans committee. Changes to the Indian Act should go to aboriginal affairs and northern development committee. Changes to the new Bridge to Strengthen Trade Act should go before the transportation committee. Eliminating the grain act tribunal should go before the agriculture committee, and pension reforms should go before the human resources, skills and social development committee.

Therefore, I would like to seek unanimous consent, and I am sure it is going to be given, to move the following motion.

That notwithstanding any Standing Order or usual practice of the House, that Bill C-45, an act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures be amended by removing the following clauses:

(a) clauses 9, 27, 28 and 62 to 64 related to the scientific research and experimental development tax credit;

(b) clauses 173 to 178 related to the Fisheries Act;

(c) clauses 179 to 184 related to the proposed bridge to strengthen trade act;

(d) clauses 206 to 209 related to the Indian Act;

(e) clauses 210 to 218 related to the Judges Act;

(f) clauses 264 to 268 related to the Customs Act;

(g) clauses 269 to 298 related to the Hazardous Materials Information Review Act;

(i) clauses 316 to 350 related to the Navigable Waters Protection Act;

(j) clauses 351 to 410 related to the Canada Grains Act;

(k) clauses 425 to 432 related to the Canada Environmental Assessment Act; and

(l) clauses 464 to 514 related to pension reforms

That the clauses mentioned in section (a) of this motion do compose Bill C-47; that Bill C-47 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Industry, Science and Technology.

That the clauses mentioned in section (b) of this motion do compose Bill C-48; that Bill C-48 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Fisheries and Oceans.

That the clauses mentioned in section (c) of this motion do compose Bill C-49; that Bill C-49 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Transport, Infrastructure and Communities.

That the clauses mentioned in section (d) of this motion do compose Bill C-50; that Bill C-50 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Aboriginal Affairs and Northern Development.

That the clauses mentioned in section (e) of this motion do compose Bill C-51; that Bill C-51 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Justice and Human Rights.

That the clauses mentioned in section (f) of this motion do compose Bill C-52; that Bill C-52 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Public Safety and National Security.

Jobs and Growth Act, 2012Government Orders

October 24th, 2012 / 3:50 p.m.
See context

Conservative

Vic Toews Conservative Provencher, MB

October 24th, 2012 / 3:35 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Chairperson, if I could, I have had the opportunity to talk to Ms. Sims, and I believe the New Democratic Party would support what I am going to suggest.

Mr. Chairperson, I would ultimately ask if we could have the committee canvassed on the budget bill, which is Bill C-45

Government Operations and EstimatesCommittees of the HouseRoutine Proceedings

October 24th, 2012 / 3:25 p.m.
See context

Liberal

John McCallum Liberal Markham—Unionville, ON

Mr. Speaker, I move that the seventh report of the Standing Committee on Government Operations and Estimates presented on Wednesday, June 20, be concurred in.

He said: I realize that we are delaying the debate on the budget Bill C-45 but I believe it is for an important reason. The government operations committee conducted a detailed report on how the House studies the estimates and produced a report that was unanimously supported with one minor exception.

Before members of this place can begin to properly debate the budget and the proposed expenditure cuts, we must clarify our desire for better and more timely information. Concurring in this report would do just that. I hope members on both sides of the House appreciate that this is not a hostile move. I believe that the President of the Treasury Board indicated on Monday during question period that he will support concurring in this report and I am confident that the motion will also receive the support of opposition members.

I will begin by providing a little background for the study in the words of the report itself. It reads:

In recent history, there have been two wide-ranging reviews of the estimates process, one by the House of Commons Standing Committee on Procedure and House Affairs in 1998, and another by the House of Commons Standing Committee on Government Operations and Estimates...in 2003. Of the 75 recommendations that came out of the two reports...few changes were made. The process for considering the estimates and supply should be revitalized, as there is still a need for more meaningful scrutiny.

In terms of an overview of the study, I will quote O'Brien and Bosc from The Procedure of the House of Commons: A Study of Its History and Present Form by Josef Redlich in terms of the importance of this topic. He writes:

The whole law of finance, and consequently the whole British constitution, is grounded upon one fundamental principle, laid down at the very outset of English parliamentary history and secured by three hundred years of mingled conflict with the Crown and peaceful growth. All taxes and public burdens imposed upon the nation for purposes of state, whatsoever their nature, must be granted by the representatives of the citizens and taxpayers, i.e., by Parliament.

Because Canada follows the British parliamentary model, that same statement applies to this country.

The first topic of the report I will talk about is “cash versus accrual accounting”. Recommendation 1 of the report is:

That the Treasury Board of Canada Secretariat complete its study of accrual-based budgeting and appropriations and report back to Parliament by March 31, 2013.

We have been told by the government that it will provide this report by March 31, 2013.

In terms of the rationale, I will read, again, from the report:

In the course of its study, the Committee considered the matter of cash versus accrual-based appropriations in the context of what information is most useful for parliamentarians in their consideration of estimates and approval of supply. The Committee heard from some witnesses who suggested that the financial information and appropriations in the main and supplementary estimates should be presented on an accrual basis as opposed to a cash basis. However there was no consensus among witnesses on the matter and the Committee heard from several witnesses who strongly favoured that information in the estimates remain on a cash basis.

In other words, there was no consensus among the experts as to whether cash or accrual accounting was better and, therefore, we did not pronounce on that issue, but we have asked that the Treasury Board Secretariat complete a study in the coming months.

The next issue concerns the timing of the budget versus the main estimates. Recommendation 6 reads:

That, to the extent possible, the budget items for a given year are reflected in the main estimates for that same year; and therefore that the government present its budget in the House of Commons no later than February 1 of each year; that the Standing Committee on Procedure and House Affairs pursue amendments to the Standing Orders, procedure and practice of the House of Commons in order to move the date on which the main estimates are presented to the House back to a later date in March; and that the Committee report to the House on its study by March 31, 2013.

The government does not support fixing the budget date as no later than February 1. The rationale for this, as confirmed by many expert witnesses, is that the earlier the budget is made, the more it is likely the budget measures of the current year will be included in the main estimates. The government makes the argument that this reduces the flexibility of the government. However, in the view of the committee, such a flexibility reduction is worth it in order to bring promptness of information to those who study the estimates. Indeed, Auditor General Michael Ferguson confirmed this point when he stated at committee:

The Main Estimates do not provide a complete picture of the spending plan and is not connected with the Budget. When we performed the audit in 2006, we found that the main reason for including items in the Supplementary Estimates was timing. The tabling of the Main Estimates in advance of the Budget was a key factor that gave rise to increased use of Supplementary Estimates.

In other words, the timeliness and usefulness of the information would be much enhanced if the government would agree to the committee's unanimous proposal to say that the budget must not be later than February 1.

The next issue involves questions in advance.

Recommendation 10 states:

That, where feasible, standing committees provide questions to departmental officials in advance of hearings on the estimates, and that committee members endeavour to ensure the necessary departmental officials are invited to appear for estimates hearings.

This is an issue that falls within the purview of the House of Commons rather than the government.

Recommendation 11 states:

That standing committees review statutory programs on a cyclical basis, at least once every eight years. This also falls within the purview of the House.

Recommendation 12 states:

That departments and agencies include tax expenditures, currently included in the Department of Finance’s Tax Expenditures and Evaluations report, in their reports on plans and priorities, as determined by the Treasury Board of Canada Secretariat to best fit their mandate.

The government does not support putting the tax expenditures in the reports on plans and priorities, but has said that it would coordinate the release of the annual tax expenditure report with the main estimates and that the Finance Department would offer briefings.

Recommendation 13 states:

That standing committees review tax expenditures presented in departmental reports on plans and priorities on a cyclical basis at least once every eight years to assess whether or not they are meeting their intended objective.

This too is within the purview of the House of Commons.

I come now to the topic of the Parliamentary Budget Officer. Recommendation 15 states:

That the House of Commons give its Standing Committee on Government Operations and Estimates the mandate to undertake a study of the Office of the Parliamentary Budget Officer which would include a thorough analysis of the mandate and function of the Office in order to better serve members of Parliament; and that in its study, the Committee should consider all structural models for the Office including, but not limited to, the Parliamentary Budget Officer reporting directly to Parliament as an Officer of Parliament.

This also is within the purview of the House. However, the government did not display great enthusiasm for this proposal, stating that the Library of Parliament committee had already studied the question of the Parliamentary Budget Officer. This was some time ago, and I think members of the committee, including Conservative members, were in agreement that now, just a few months before the current Parliamentary Budget Officer leaves the job and another person is appointed, would be a very good time to conduct a new study of the desirable mandate of the Parliamentary Budget Officer.

I will quote a couple of expert witnesses.

First, Allen Schick, distinguished professor, School of Public Policy, University of Maryland, stated, “Canada” in establishing a Parliamentary Budget Officer:

—was following a trend that is quite widespread around the world, and that is staffing up parliament to be able to better perform its budget-related responsibilities....The role often is to review the estimates to see whether they are reliable. The key budget work today around the world is not simply whether the money should be spent, but are the assumptions underlying the estimates robust? Are they reliable?

I think that is precisely the area where research done by the Parliamentary Budget Officer is invaluable.

Joachim Wehner, associate professor in public policy at the London School of Economics, stated:

The first one [change] is to protect and enhance the role of the Parliamentary Budget Officer....Internationally, the Parliamentary Budget Officer of Canada is very highly regarded, and it's certainly a major change...in the degree the parliament in Canada has access to an independent, highly professional research capacity...some adjustments are possible to the legal framework for the Parliamentary Budget Officer. In particular, this role could be strengthened, or the status be strengthened, if he were a full officer of Parliament. Moreover, steps could be taken so that the Parliamentary Budget Officer has total access to all relevant information. I see some scope for strengthening it also on the basis of international experience.

These are two very laudatory reviews of our current Parliamentary Budget Officer and very definite proposals that he be made an officer of Parliament.

I come now to recommendation 16 on online resources, which states:

That the government develop a searchable online database that contains information on departmental spending by type of expense and by program.

The government is committing to make this information available in a better digital format.

Recommendation 14 states:

That standing committees dedicate an in camera meeting at the beginning of a new Parliament, and periodically as needed, for a briefing session on the estimates and supply process and the related documents, with a focus on the committee’s role in scrutinizing government spending

This recommendation is within the purview of the House. The purpose is to ensure that all committee members have adequate training and information to carry out an examination of the estimates in an efficient and proper way.

Next is recommendation 2 on vote structure, which states:

That the Treasury Board of Canada Secretariat transition the estimates and related appropriations acts from the current model to a program activity model, that they assist federal departments with this process, and that they prepare a timeline for this transition by March 31, 2013, and transmit this timeline to the Committee.

The government said that it would provide a detailed report on transition to a program activity by March 31, 2013.

I would like to quote the current Parliamentary Budget officer, Kevin Page, because it is a very good quote. He states

On structure, it makes little sense in a 21st century world for parliamentarians to be voting on inputs like operations and capital, and grants and contributions that cut across a department spending many billions of dollars for a diverse set of program activities. Given the recent experiences with border infrastructure funds and aboriginal housing and education, would it not make more sense to consider program activities (five, 10 or 15 per department) or their associated outputs as more relevant control gates? Why should ministers and their accountability officers be able to move monies from one activity to another without scrutiny or consent? Would voting on program activities not encourage more meaningful scrutiny on service level impacts as we move forward with spending restraint? Would this not help simplify our estimates system, which collects financial and non-financial performance data on program activities?

The answer to all of those questions is a definite “yes”. I can assure members that the committee was absolutely unanimous that in the 21st century it made absolute sense to proceed with estimates based on program activity.

Next I come to the deemed adopted rule. Currently, the main estimates must be tabled by March 1 and reported back by May 31. Supplementary estimates must be reported back no later than three sitting days before the final supply day in the related supply period.

Recommendation 8 states:

That the Standing Committee on Procedure and House Affairs pursue amendments to the Standing Orders, procedure and practice of the House of Commons in order to require standing committees to consider during a minimum amount of time the estimates referred to them, and that the Committee report to the House on its study no later than March 31, 2013.

That is within the purview of the House, as is recommendation 9, which states:

That as part of its amendments to the Standing Orders, the Standing Committee on Procedure and House Affairs examine the feasibility of providing standing committees at least two sitting weeks to consider and report on the supplementary estimates, and that the Committee report to the House on its study no later than March 31, 2013.

I will quote Ned Franks, professor emeritus of the Department of Political Studies at Queen's University, who thinks that the deemed adopted rule needs to stay.

He states:

I do not like the process of deeming, which means that the votes are deemed to be passed whether they come out of committee or Parliament has approved them or not. But bearing in mind the capacity of parliamentary committees and Parliament itself to delay, procrastinate, and simply obstruct business, I think deeming is an essential part of the Canadian financial processes.

He later continues:

—I think we need that deeming thing in there as a protection against just pure bloody-minded obstruction and the refusal to pass budgets in minority parliaments.

Some of my colleagues might believe that there is never any bloody-minded obstruction in this place, but that is what the expert has suggested. It is for that reason the committee did not propose to get rid of the deeming rule, but rather to propose measures that would ensure a certain minimum amount of time was spent in examining the estimates and the supplementary estimates.

That completes the essence of our recommendations.

The EnvironmentOral Questions

October 24th, 2012 / 2:55 p.m.
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NDP

Anne Minh-Thu Quach NDP Beauharnois—Salaberry, QC

Mr. Speaker, the Conservatives are continuing their attacks on Canadian heritage lakes and rivers.

By weakening the Navigable Waters Protection Act and thus eliminating protections for our lakes and rivers, all through measures hidden in a second massive budget implementation bill, the Conservatives are allowing the development of infrastructure that could harm these same waterways without requiring that environmental assessments be conducted first.

How many lakes and rivers will be laid to waste and how many environmental assessments will be set aside because of Bill C-45?

October 23rd, 2012 / 12:50 p.m.
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Liberal

Geoff Regan Liberal Halifax West, NS

Thank you, Mr. Chairman.

First let me mention that I'm going to ask the committee to take a moment at the beginning of our meeting on Thursday to consider the motion that I gave notice of this morning and that you're aware of, which would call on the committee to study the changes to the SR and ED program that are contained in parts 1 and 4 of Bill C-45, the second budget bill, which is before the House today.

Bill C-45—Jobs and Growth Act, 2012Government Orders

October 19th, 2012 / 10:55 a.m.
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Blackstrap Saskatchewan

Conservative

Lynne Yelich ConservativeMinister of State (Western Economic Diversification)

Mr. Speaker, I rise on a point of order. There have been consultations and I think you would find unanimous consent for the following motion. I move:

That the House recognize that the provisions of Bill C-45 dealing with members' pensions should be enacted as quickly as possible, and passed without further debate;

That Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, be divided into two bills: Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, and Bill C-46, an act to amend the Members of Parliament Retiring Allowances Act; and

That Bill C-46 be composed of

(a) clauses 475 to 514 of Bill C-45, as it is presently composed,

(b) a clause, inserted before all of the other clauses, to provide that “This act may be cited as the Pension Reform Act”, and

(c) a clause, inserted after all of the other clauses, to provide that “This act comes into force, or is deemed to have come into force, on January 1, 2013”;

That Bill C-46 be deemed to have been read the second time and deemed referred to a committee of the whole, deemed reported without amendment, deemed concurred in at report stage and deemed read the third time and passed;

That Bill C-46 be composed of its remaining clauses;

That Bill C-45 retain the status on the order paper that it had prior to the adoption of this order;

That the Law Clerk and Parliamentary Counsel be authorized to make any technical changes or corrections as may be necessary; and

That Bills C-45 and C-46 be reprinted.

Combating Terrorism ActGovernment Orders

October 19th, 2012 / 10:20 a.m.
See context

Conservative

Lynne Yelich Conservative Blackstrap, SK

Mr. Speaker, I rise on a point of order. There have been consultations concerning the provisions of the second budget bill dealing with members' pensions. I hope to receive the unanimous consent of the House for the following motion. It is a slightly edited version of what was proposed by the Liberal House leader yesterday.

I move that the House recognize that the provisions of Bill C-45 dealing with members' pensions should be enacted as quickly as possible and passed without further debate; that Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, be divided into two bills: Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures; and Bill C-46, An Act to amend the Members of Parliament Retiring Allowances Act; and that Bill C-46 be composed of: (a) clauses 475 to 553 of Bill C-45 as it is presently composed; (b) a clause inserted before all of the other clauses to provide that this act may be cited as the pension reform act and; (c) a clause inserted after all of the other clauses to provide this act comes into force or is deemed to have come into force on January 1, 2013; that Bill C-46 be deemed to have been read the second time and deemed referred to committee of the whole, deemed reported without amendment, deemed concurred in at report stage and deemed read the third time and passed; that Bill C-45 be composed of the remaining clauses; that Bill C-45 retain the status on the order paper that it had prior the adoption of this order; that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary; and that Bill C-45 and Bill C-46 be reprinted.

Business of the HouseOral Questions

October 18th, 2012 / 3:15 p.m.
See context

York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

Mr. Speaker, just to clarify, I would have been quite happy to have consented to the motion had the member not included in it a provision for an additional opposition day. Had the member decided to conclude that NDP was prepared, since its subject for today was food safety, to make the balance of the day the debate on Bill S-11 and then have it proceed to committee, we would have been quite delighted to consent.

In terms of his suggestions on the budget bill, I am looking forward to meeting with him and discussing with him what opportunities might exist there further.

Earlier today, the Minister of Finance introduced Bill C-45, the Jobs and Growth Act, 2012.

This important piece of legislation will bolster Canada’s economy and help improve communities with initiatives that build a strong economy and create jobs, support families and communities, promote clean energy and enhance neutrality of the tax system, and respect taxpayers’ dollars.

We will start second reading debate of Bill C-45 on Wednesday—once honourable members have had a chance to review the bill and discuss it at next week’s caucus meetings. The debate will continue on Thursday and Friday.

I genuinely hope all members will take advantage of the budget bill study week that is available to review the valuable measures that are set out as the second half of our legislative arm of our comprehensive economic action plan 2012. One highlight of the study week will be a briefing arranged by the minister for all hon. members on Monday evening. I hope many MPs can attend, and certainly more than the paltry attendance of opposition members that appeared this spring for the briefing on Bill C-38.

I look forward to a vigorous policy debate on the economy and not on procedural games.

I turn now to the business of the House leading up to Wednesday.

This afternoon we will see the conclusion of the NDP's opposition day. Regrettably, I was personally disappointed that the official opposition did not answer my call last week to lay out the details of its $21.5 billion carbon tax and how it would raise the price of gas, groceries and electricity. Though, I was encouraged that this week in question period the New Democrats actually did acknowledge the subject and raised it.

Tomorrow and Monday will see us resume second reading of Bill S-7, the combating terrorism act. I understand we should finish that debate sometime on Monday, at which that time we will then turn to Bill C-15, the strengthening military justice in the defence of Canada act; Bill S-2, the family homes on reserves and matrimonial interests or rights act; and Bill S-8, the safe drinking water for first nations act.

On Tuesday, we will debate the second reading of Bill S-11, the safe food for Canadians act, unless we find some other approach that would allow us to move on a more urgent basis. Since we did not get unanimous consent to move it forward quickly, we are hopeful there will be some other approach that can be agreed upon to move quickly with it. We hope that if we do debate it that day, we will be able to deal with it quickly and then spend the balance of that day debating Bill C-15 and Bill C-12, the safeguarding Canadians' personal information act.

Business of the HouseOral Questions

October 18th, 2012 / 3:10 p.m.
See context

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, what a great idea.

It is an honour for me to rise to ask the government, on behalf of the opposition, what it has in store for the House for the rest of this week and for next week.

This government clearly did not understand the message that thousands of Canadians sent it last spring regarding the omnibus Bill C-38 on the budget. Canadians said that the bill was an attack on the democratic process and on the integrity of the House, and a violation of the right of all Canadians to hold their government to account.

Today we have received Bill C-45, another monstrous bill from a government that simply does not seem to understand. The bill is 450 pages long and combines measures such as cutting funding for research and development and watering down environmental assessment rules with actual budgetary measures.

Clearly this government has not learned its lesson. Canadians expect more transparency and accountability from the Conservatives.

Eighteen years ago, the member for Calgary Southwest, the Prime Minister, said, and I want to quote him to set the context for what I am about to approach:

Mr. Speaker, I would argue that the subject matter of the bill is so diverse that a single vote on the content would put members in conflict with their own principles.

We now know that same member, as the Prime Minister, does not believe that applies to him any longer. At the very least, as we need to understand this bill and fully analyze, I will ask the government three questions about what follows.

Will the government split this bill into its component parts to allow for proper study?

If not, will it allow for multiple standing committees to study the divisions of this bill that fit into those committee mandates?

At the very least, will it allow for full debate on this bill without slamming the door with further closure or time allocations, as we saw last spring?

Last, New Democrats welcomed this morning's long overdue arrival of Bill S-11 from the Senate, which has been waiting for passage there for more than 120 days, and was killed by prorogation by the government previously. We are interested in passing this bill quickly to committee.

We are also interested in the integrity of the legislative process. I am somewhat surprised that the government is not so much. It has had to amend a number of its hastily written bills and has asked Canadians to simply trust it on this one and move it all stages. It cannot work with a Minister of Agriculture and Agri-Food who has failed us repeatedly and seriously in his role.

With Bill S-11 in mind, I believe that if you seek it, you will find unanimous consent for the following motion: That notwithstanding any Standing Order or usual practice of the House, this House move immediately to debate at second reading of S-11, that today's order for supply be deemed not to have been called, and that the order for the putting of the question on the supply motion and the deferral of that vote be deemed to have been withdrawn.

Jobs and Growth Act, 2012Routine Proceedings

October 18th, 2012 / 10 a.m.
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Conservative

John Baird Conservative Ottawa West—Nepean, ON

moved for leave to introduce Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures.

(Motions deemed adopted, bill read the first time and printed)