Bill C-45 (Historical)

Jobs and Growth Act, 2012

A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures

Part 1 implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) amends the rules relating to Registered Disability Savings Plans (RDSPs) by
(i) replacing the 10-year repayment rule applying to withdrawals with a proportional repayment rule,
(ii) allowing investment income earned in a Registered Education Savings Plan (RESP) to be transferred on a tax-free basis to the RESP beneficiary’s RDSP,
(iii) extending the period that RDSPs of beneficiaries who cease to qualify for the Disability Tax Credit may remain open in certain circumstances,
(iv) amending the rules relating to maximum and minimum withdrawals, and
(v) amending certain RDSP administrative rules;
(b) includes an employer’s contributions to a group sickness or accident insurance plan in an employee’s income in certain circumstances;
(c) amends the rules applicable to retirement compensation arrangements;
(d) amends the rules applicable to Employees Profit Sharing Plans;
(e) expands the eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of bioenergy equipment;
(f) phases out the Corporate Mineral Exploration and Development Tax Credit;
(g) phases out the Atlantic Investment Tax Credit for activities related to the oil and gas and mining sectors;
(h) provides that qualified property for the purposes of the Atlantic Investment Tax Credit will include certain electricity generation equipment and clean energy generation equipment used primarily in an eligible activity;
(i) amends the Scientific Research and Experimental Development (SR&ED) investment tax credit by
(i) reducing the general SR&ED investment tax credit rate from 20% to 15%,
(ii) reducing the prescribed proxy amount, which taxpayers use to claim SR&ED overhead expenditures, from 65% to 55% of the salaries and wages of employees who are engaged in SR&ED activities,
(iii) removing the profit element from arm’s length third-party contracts for the purpose of the calculation of SR&ED tax credits, and
(iv) removing capital from the base of eligible expenditures for the purpose of the calculation of SR&ED tax incentives;
(j) introduces rules to prevent the avoidance of corporate income tax through the use of partnerships to convert income gains into capital gains;
(k) clarifies that transfer pricing secondary adjustments are treated as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act;
(l) amends the thin capitalization rules by
(i) reducing the debt-to-equity ratio from 2:1 to 1.5:1,
(ii) extending the scope of the thin capitalization rules to debts of partnerships of which a Canadian-resident corporation is a member,
(iii) treating disallowed interest expense under the thin capitalization rules as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act, and
(iv) preventing double taxation in certain circumstances when a Canadian resident corporation borrows money from its controlled foreign affiliate;
(m) imposes, in certain circumstances, withholding tax under Part XIII of the Income Tax Act when a foreign-based multinational corporation transfers a foreign affiliate to its Canadian subsidiary, while preserving the ability of the Canadian subsidiary to undertake expansion of its Canadian business; and
(n) phases out the Overseas Employment Tax Credit.
Part 1 also implements other selected income tax measures. Most notably, it introduces tax rules to accommodate Pooled Registered Pension Plans and provides that income received from a retirement compensation arrangement is eligible for pension income splitting in certain circumstances.
Part 2 amends the Excise Tax Act and the Jobs and Economic Growth Act to implement rules applicable to the financial services sector in respect of the goods and services tax and harmonized sales tax (GST/HST). They include rules that allow certain financial institutions to obtain pre-approval from the Minister of National Revenue of methods used to determine their liability in respect of the provincial component of the HST, that require certain financial institutions to have fiscal years that are calendar years, that require group registration of financial institutions in certain cases and that provide for changes to a rebate of the provincial component of the HST to certain financial institutions that render services to clients that are outside the HST provinces. This Part also confirms the authority under which certain GST/HST regulations relating to financial institutions are made.
Part 3 amends the Federal-Provincial Fiscal Arrangements Act to provide the legislative authority to share with provinces and territories taxes in respect of specified investment flow-through (SIFT) entities — trusts or partnerships — under section 122.1 and Part IX.1 of the Income Tax Act, consistent with the federal government’s proposal on the introduction of those taxes. It also provides the legislative authority to share with provinces and territories the tax on excess EPSP amounts imposed under Part XI.4 of the Income Tax Act, consistent with the measures proposed in the March 29, 2012 budget. It also allows the Minister of Finance to request from the Minister of National Revenue information that is necessary for the administration of the sharing of taxes with the provinces and territories.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Jobs and Economic Growth Act as a result of amendments introduced in the Jobs, Growth and Long-term Prosperity Act to allow certain public sector investment pools to directly invest in a federally regulated financial institution.
Division 2 of Part 4 amends the Canada Shipping Act, 2001 to permit the incorporation by reference into regulations of all Canadian modifications to an international convention or industry standard that are also incorporated by reference into the regulations, by means of a mechanism similar to that used by many other maritime nations. It also provides for third parties acting on the Minister of Transport’s behalf to set fees for certain services that they provide in accordance with an agreement with that Minister.
Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, provide for a limited, automatic stay in respect of certain eligible financial contracts when a bridge institution is established. It also amends the Payment Clearing and Settlement Act to facilitate central clearing of standardized over-the-counter derivatives.
Division 4 of Part 4 amends the Fisheries Act to amend the prohibition against obstructing the passage of fish and to provide that certain amounts are to be paid into the Environmental Damages Fund. It also amends the Jobs, Growth and Long-term Prosperity Act to amend the definition of Aboriginal fishery and another prohibition relating to the passage of fish. Finally, it provides transitional provisions relating to authorizations issued under the Fisheries Act before certain amendments to that Act come into force.
Division 5 of Part 4 enacts the Bridge To Strengthen Trade Act, which excludes the application of certain Acts to the construction of a bridge that spans the Detroit River and other works and to their initial operator. That Act also establishes ancillary measures. It also amends the International Bridges and Tunnels Act.
Division 6 of Part 4 amends Schedule I to the Bretton Woods and Related Agreements Act to reflect changes made to the Articles of Agreement of the International Monetary Fund as a result of the 2010 Quota and Governance Reforms. The amendments pertain to the rules and regulations of the Fund’s Executive Board and complete the updating of that Act to reflect those reforms.
Division 7 of Part 4 amends the Canada Pension Plan to implement the results of the 2010-12 triennial review, most notably, to clarify that contributions for certain benefits must be made during the contributory period, to clarify how certain deductions are to be determined for the purpose of calculating average monthly pensionable earnings, to determine the minimum qualifying period for certain late applicants for a disability pension and to enhance the authority of the Review Tribunal and the Pension Appeals Board. It also amends the Department of Human Resources and Skills Development Act to enhance the authority of the Social Security Tribunal.
Division 8 of Part 4 amends the Indian Act to modify the voting and approval procedures in relation to proposed land designations.
Division 9 of Part 4 amends the Judges Act to implement the Government of Canada’s response to the report of the fourth Judicial Compensation and Benefits Commission regarding salary and benefits for federally appointed judges. It also amends that Act to shorten the period in which the Government of Canada must respond to a report of the Commission.
Division 10 of Part 4 amends the Canada Labour Code to
(a) simplify the calculation of holiday pay;
(b) set out the timelines for making certain complaints under Part III of that Act and the circumstances in which an inspector may suspend or reject such complaints;
(c) set limits on the period that may be covered by payment orders; and
(d) provide for a review mechanism for payment orders and notices of unfounded complaint.
Division 11 of Part 4 amends the Merchant Seamen Compensation Act to transfer the powers and duties of the Merchant Seamen Compensation Board to the Minister of Labour and to repeal provisions that are related to the Board. It also makes consequential amendments to other Acts.
Division 12 of Part 4 amends the Customs Act to strengthen and streamline procedures related to arrivals in Canada, to clarify the obligations of owners or operators of international transport installations to maintain port of entry facilities and to allow the Minister of Public Safety and Emergency Preparedness to require prescribed information about any person who is or is expected to be on board a conveyance.
Division 13 of Part 4 amends the Hazardous Materials Information Review Act to transfer the powers and functions of the Hazardous Materials Information Review Commission to the Minister of Health and to repeal provisions of that Act that are related to the Commission. It also makes consequential amendments to other Acts.
Division 14 of Part 4 amends the Agreement on Internal Trade Implementation Act to reflect changes made to Chapter 17 of the Agreement on Internal Trade. It provides primarily for the enforceability of orders to pay tariff costs and monetary penalties made under Chapter 17. It also repeals subsection 28(3) of the Crown Liability and Proceedings Act.
Division 15 of Part 4 amends the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small businesses. An employer whose premiums were $10,000 or less in 2011 will be refunded the increase in 2012 premiums over those paid in 2011, to a maximum of $1,000.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide for an electronic travel authorization and to provide that the User Fees Act does not apply to a fee for the provision of services in relation to an application for an electronic travel authorization.
Division 17 of Part 4 amends the Canada Mortgage and Housing Corporation Act to remove the age limit for persons from outside the federal public administration being appointed or continuing as President or as a director of the Corporation.
Division 18 of Part 4 amends the Navigable Waters Protection Act to limit that Act’s application to works in certain navigable waters that are set out in its schedule. It also amends that Act so that it can be deemed to apply to certain works in other navigable waters, with the approval of the Minister of Transport. In particular, it amends that Act to provide for an assessment process for certain works and to provide that works that are assessed as likely to substantially interfere with navigation require the Minister’s approval. It also amends that Act to provide for administrative monetary penalties and additional offences. Finally, it makes consequential and related amendments to other Acts.
Division 19 of Part 4 amends the Canada Grain Act to
(a) combine terminal elevators and transfer elevators into a single class of elevators called terminal elevators;
(b) replace the requirement that the operator of a licensed terminal elevator receiving grain cause that grain to be officially weighed and officially inspected by a requirement that the operator either weigh and inspect that grain or cause that grain to be weighed and inspected by a third party;
(c) provide for recourse if an operator does not weigh or inspect the grain, or cause it to be weighed or inspected;
(d) repeal the grain appeal tribunals;
(e) repeal the requirement for weigh-overs; and
(f) provide the Canadian Grain Commission with the power to make regulations or orders with respect to weighing and inspecting grain and the security that is to be obtained and maintained by licensees.
It also amends An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to Repeal the Grain Futures Act as well as other Acts, and includes transitional provisions.
Division 20 of Part 4 amends the International Interests in Mobile Equipment (aircraft equipment) Act and other Acts to modify the manner in which certain international obligations are implemented.
Division 21 of Part 4 makes technical amendments to the Canadian Environmental Assessment Act, 2012 and amends one of its transitional provisions to make that Act applicable to designated projects, as defined in that Act, for which an environmental assessment would have been required under the former Act.
Division 22 of Part 4 provides for the temporary suspension of the Canada Employment Insurance Financing Board Act and the dissolution of the Canada Employment Insurance Financing Board. Consequently, it enacts an interim Employment Insurance premium rate-setting regime under the Employment Insurance Act and makes amendments to the Canada Employment Insurance Financing Board Act, the Department of Human Resources and Skills Development Act, the Jobs, Growth and Long-term Prosperity Act and Schedule III to the Financial Administration Act.
Division 23 of Part 4 amends the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act and makes consequential amendments to other Acts.
The Canadian Forces Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
The Public Service Superannuation Act is amended to provide that contributors pay no more than 50% of the current service cost of the pension plan. In addition, the pensionable age is raised from 60 to 65 in relation to persons who become contributors on or after January 1, 2013.
The Royal Canadian Mounted Police Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
Division 24 of Part 4 amends the Canada Revenue Agency Act to make section 112 of the Public Service Labour Relations Act applicable to the Canada Revenue Agency. That section makes entering into a collective agreement subject to the Governor in Council’s approval. The Division also amends the Canada Revenue Agency Act to require that the Agency have its negotiating mandate approved by the President of the Treasury Board and to require that it consult the President of the Treasury Board before determining certain other terms and conditions of employment for its employees.

Economic Action Plan 2013 Act, No. 1

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, I mentioned that in budget 2013 the government offers a $1 million credit for a $1 trillion industry. Canada should be having a green economy strategy, so we lead in the new economy. We should have a national sustainable energy strategy. We need a comprehensive climate change plan.

Unfortunately, the environment and sustainable development are not government priorities. Recent rankings of environmental performance clearly demonstrate this fact. For example, the 2008 climate change performance index ranked Canada 56th out of 57 countries in terms of tackling emissions. In 2009 and again in 2013, the Conference Board of Canada ranked Canada 15th out of 17 wealthy industrialized nations on environmental performance.

Our world-renowned heritage was then further imperiled by the government's economic action plan 2012 and its draconian omnibus budget bills, Bill C-38 and C-45, which destroyed 50 years of environmental safeguards.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-60 on the budget implementation act.

I would like to focus my speech on the issues, concerns and priorities raised by my constituents during my annual pre-budget consultations. As a member of Parliament, I take seriously my job to represent my constituents' voices in Ottawa. In March of this year, I hosted four town hall meetings: one in Port Moody, one in Coquitlam, one in New Westminster, and a final one by telephone. I also meet with all three mayors and councils in my riding, as I believe it is important to also listen to their priorities and concerns. I also sent out a survey to every household in the riding, asking constituents for their input on spending priorities and economic concerns. In total, I engaged thousands of constituents on what they would like to see in this year's budget.

My constituents' number one priority is health care. I believe Canadians are proud of our health care system, which is the envy of countries around the world. However, we also recognize the importance of ensuring health care remains universally accessible and properly funded. I hear far too many stories from people who have to wait months on end to see a specialist or to receive a vital surgery. The government's hands-off approach to health care is unacceptable. Instead of working with the provinces and territories to address the challenges facing our health care system, the current government unilaterally imposed a funding scheme that actually sees federal health care transfers decrease in the long term.

The high cost of prescriptions is another issue of serious concern, particularly for seniors who must also balance the realities of shrinking pensions and the shortage of affordable housing options. The current government's track record on support for Canada's seniors is dismal. The Conservatives' scheme to raise the age of retirement for the old age security from 65 to 67 years of age is disgraceful.

I also heard from a number of constituents who are frustrated with trying to find quality, affordable child care. Canada's New Democrats understand that a comprehensive national solution is required. That is why we are proposing, with the provinces and the territories, to establish and fund a Canada-wide child care and early learning program.

Another troubling issue we are seeing across our country is youth unemployment rates, which remain stubbornly high, at 13.5% for those under 25, compared to 7% for those over 25. Let us not forget that many students coming out of post-secondary education are saddled with record-high levels of student debt. Where are the jobs of tomorrow? Where are the quality jobs that enable people to support a family or pay down student debt or save for a down payment or save for retirement? Quality full-time jobs are disappearing at an alarming rate, and we are not seeing this issue get the attention it deserves in this budget.

I will take a moment to credit some of the great small businesses operating in my riding, like Resonance Technology, an innovative company on the cutting edge of new technologies. Companies like this are at the forefront of our economy, driving growth and creating jobs. We need more of this. Unfortunately, the reality is that income levels for average Canadians have stagnated while the cost of living continues to increase. From food prices and housing costs to MSP premiums and bridge tolls, British Columbians have been feeling the pinch. However, their tax burden will soon be a bit lighter, thanks to the people's successful efforts to overturn the harmonized sales tax, which was unfairly imposed on B.C. by its provincial government in collaboration with the current federal Conservative government.

I would like to focus on the claim by the Conservatives that this budget would increase funding for infrastructure. In fact, when the numbers are adjusted for inflation, over the next four years federal infrastructure funding will be $4.7 billion lower than it was last year. City officials are asking for a long-term funding arrangement so they can plan for the needs of our growing regions.

Improved transit infrastructure is one of the greatest needs in the Lower Mainland. Residents in Coquitlam and Port Moody have waited well over a decade for the Evergreen Line, which was nicknamed the “nevergreen line”, after years of delays made many people question whether it would ever be built.

The case of the Evergreen Line demonstrates that our governments are not up to the task of working together to meet the transit needs of our growing communities. At every town hall meeting I held, people expressed concern over the government's agenda to degrade environmental protections.

Let us talk about its record. Through last year's massive omnibus budget bills, Bills C-38 and C-45, the Conservative government gutted environmental protections from every act it could think of: the Fisheries Act, the Navigable Waters Protection Act, the Canadian Environmental Assessment Act, and many others. Canadians rallied to save the Experimental Lakes Area, which conducted world-class freshwater research. Unfortunately, the government chose to ignore these calls. A number of my constituents were particularly disturbed by the government's Orwellian attitude towards scientists, environmentalists and public servants. In March, the official opposition introduced a motion in Parliament calling on the government to defend basic scientific freedoms and evidence-based policy. I am sad to say that even the Prime Minister voted against that motion.

The government has been in power for seven years now and its arrogance is beginning to show no bounds. Its unilateral move to shut down the Kitsilano Coast Guard station flew in the face of expert opinion as well as the will of the public and municipal and provincial governments. Despite serious safety concerns raised over shutting down the only Coast Guard station in Vancouver, which is home to the busiest port in Canada, the government rammed through this closure. Consolidation of marine communication traffic services will put B.C.'s coast at greater risk. The government has also cut oil spill response centres. Given the number and scale of proposed resource development projects, this is the worst time to be cutting enforcement monitoring and emergency response.

This budget has announced $108 million in cuts to the Department of Fisheries and Oceans. While the government claims that this will be found through efficiencies like travel and printing, we know this will have a serious impact on DFO front-line services, including its ability to carry out its mandate to protect wild fish. Last year's cuts left DFO with only five offices in B.C., and the smallest staff level since 1983.

It has been almost seven months since Cohen's recommendations were released and we have yet to hear a single word from the government on how it will respond. Following the $26 million Cohen report, the government should be responding to the 75 recommendations rather than turning its back on B.C. salmon and fish habitat.

All of the concerns I have highlighted speak to the serious feeling of neglect that has been brewing on the west coast. The Conservative government has been ignoring the priorities of British Columbians for far too long.

I would like to conclude my remarks on the budget by focusing on a theme that was frequently raised at pre-budget consultations. There is a feeling of restlessness and discontent among the electorate with the state of our democracy. I heard much criticism on the way the government has centralized power, limited debate and tried to marginalize the role of Parliament, not to mention the muzzling of scientists and quality information. Taxpayers are frustrated with being on the hook for the unelected, unaccountable and under-investigated Senate.

Principles anchored within the Senate's mission, such as the protection of minorities and balancing the executive and legislative branches of government, are important principles, but they must be addressed through accountable and democratic means. Abolishing the Senate is part of the NDP's broader and progressive vision for democratic reform. This means reforming our electoral system to ensure that Parliament reflects the political preferences of Canadians. New Democrats have long advocated for a system of proportional representation. A reformed electoral Senate would go a long way toward better representing Canadians in Parliament. It could reverse dismally low voter turnout rates and improve representation of women and minorities.

Canadians are hungry for change. Canadians are looking for leaders who are not afraid to tackle the issues facing our communities and our regions. This was an underwhelming budget. I believe Canadians want to see their federal government build healthy, sustainable communities.

[Isabelle Morin, NDP, Notre-Dame-de-Grâce—Lachine, QC]

Mr. Speaker, today we are debating Bill C-60, Economic Action Plan 2013 Act, No. 1. However, this piece of legislation does not address Canadians' real concerns.

Ever since the Conservatives’ 2013 budget was unveiled, my constituents have been calling me to say that they feel isolated and neglected by this government’s economic measures.

I have to say that I feel quite privileged to be able to speak to this bill, given that the Conservatives have imposed time allocation for the thirty-second time, which is surely a record for Canada. At least I have the opportunity to voice my opinion on the subject.

Unfortunately, we have become accustomed to Conservative bills that lack depth. Instead of actually being concerned about ensuring our economic recovery, creating stable jobs and tackling the growing debt levels of Canadian households, the Conservatives are proposing austerity measures that will kill jobs. These measures will mean a higher cost of living for Canadian families and will stifle economic growth.

For instance, there is nothing in Bill C-60 to deal with household debt in Canada, which is currently estimated at a record level of 167% of disposal income. That is a staggering number.

The Conservatives’ economic agenda does not address the needs of Canadians. Canadians need measures that are geared toward creating quality jobs. The NDP will be voting against budget 2013 and the budget implementation bill, unless they are reworked to take into account the real priorities of Canadian families.

While I do agree with some of the measures contained in this budget, I have to say that, since I have been a member of this House, the Conservatives have refused to split budget bills into components that we can vote on separately, and thus let Canadians know, through a transparent process, which measures we support and which ones we do not.

I would like to single out several measures in this budget that I think are worthwhile in order to let people know exactly which ones I consider to be important. I will then tell you which budgetary provisions I think completely miss the mark.

Budget 2013 provides for two tax credits that I endorse: one for adoption-related expenses and one for first-time claimants of the charitable donations tax credit. I believe that these are positive measures. Furthermore, the budget streamlines the process for approving tax relief for Canadian Forces members and police officers, which I strongly support. It extends the temporary accelerated capital cost allowance for the manufacturing sector. It includes measures to facilitate the collection of unpaid taxes and taxes sitting in tax havens and to streamline Tax Court of Canada procedures. It provides for changes to the GST and HST that are generally positive. Lastly, it calls for reducing the general preferential tariff, the GPT, on sporting equipment and baby clothing. These are sound measures, and I am not afraid to say so.

However, the Conservatives will not split up the budget and instead are forcing us to vote on a mammoth bill, as was the case in 2012 and 2011, which prevents me, as an MP, from voicing my true opinion of the budget to my constituents. I find it very troubling that I am unable to do so. However I do know that the Conservatives will seize the opportunity to say that we are voting against these measures when we ask any questions. Incredible.

I would now like to turn my attention to some of the important issues raised by Bill C-60 which is chock-full of various measures.

This budget contains tax increases for Canadians. It calls for changes to the bargaining mandate of the Treasury Board and 49 crown corporations. It proposes changes to the temporary foreign worker program, as well as changes related to citizenship and immigration. It announces the merger of the Canadian International Development Agency with Foreign Affairs and International Trade Canada. It highlights the Conservative government’s ongoing failure to address the challenges facing aboriginal peoples and the lack of viable, concrete job-creation measures for Canadian youth, the segment of the population hardest hit by the economic downturn.

Bill C-60 as tabled amends 49 laws and includes new legislation along with complex provisions containing myriad details and programs that will affect Canadians, the very people who elected us to establish a more just society and bring about wealth and prosperity for all Canadians.

For the sake of the public, we have a duty to weigh the major issues that this bill targets, but it will be very difficult to accomplish this in such a short period of time. The fact of the matter is that the Conservatives are giving us a mere four days to debate this mammoth bill.

On top of everything else, we have just learned that the Minister of Finance has asked the Standing Committee on Finance to set aside only five days to study the bill.

The committee that is supposed to conduct an in-depth review of the bill will have a mere five days to tackle this job. That is outrageous.

The NDP opposes Bill C-60, not only because of the measures it contains, but also because the process lacks transparency and is unethical from a parliamentary standpoint. Bill C-60 contains a broad range of measures that warrant careful consideration, but instead, the Conservatives have tabled another omnibus bill, much like bills C-38 and C-45 that were brought in last year. Tabling such a wide-ranging bill and imposing such a tight deadline for review undermines the very nature of Parliament, as members do not have the opportunity to learn everything they need to know about the bill and its ramifications.

Unfortunately, it has become commonplace to say that such actions weaken the nature of Parliament. Yesterday, while I was knocking on doors in my riding, I talked for 20 or 25 minutes to a man in Dorval, whose name is John and who is 50 or 60 years old. He told me that he had always voted to do his duty as a citizen but that he had become cynical in the past two years. He told me that he was dismayed and that he no longer believed in the parliamentary process because of our government. I was astounded and did not know what to say to him. I am not cynical, but I had a hard time finding good arguments, because I, too, think that what is happening in Canada is not reasonable and not healthy.

Moreover, the Parliamentary Budget Officer has pointed out several times that members of Parliament do not have access to the information they need to exercise their role of oversight. For the third time, the Conservatives are undermining the democratic process inherent in Parliament and trying to escape the watchful eyes of parliamentarians and the public.

I would like to point out another important concern. The former Parliamentary Budget Officer clearly indicated that the cuts announced in the 2013 budget are not necessary in order to re-establish a structural surplus. In his opinion, the 2013 budget will eliminate thousands of jobs, reduce direct program spending and slow the growth of Canada's GDP.

There is evidence. According to estimates by the new Parliamentary Budget Officer, the 2012 budget, the 2012 budget update and the 2013 budget will lead to the loss of 67,000 jobs by 2017 and a 0.57% drop in the GDP. Based on these facts, the Conservatives' 2013 budget will raise the unemployment rate in Canada. It is unfortunate, because when unemployment rates are high, the economy runs slowly. I wonder what logic the government is using when it talks about the economy.

The Conservatives love to boast about their job creation record. Yet, 1.4 million Canadians are without work and 240,000 more young people are unemployed than before the recession. Despite that, the Conservatives' Bill C-60 offers no job creation measures.

As the official opposition's youth caucus president, I am particularly concerned with Canada's youth and young workers. As a result, the rest of my speech—which is not much longer—will focus on the younger generation that is ignored by the Conservative government.

In today's labour market, there is a desperate lack of jobs for young Canadians aged 15 to 24. A study by TD Economics revealed that a young person who is currently unemployed or under-employed will be financially scarred for 18 years. This young person, who wants to work and often has an extensive education, not only has a problem finding work, but will be affected in the future with reduced earning potential. Right now, this young person has no job and cannot invest in the economy. As I said, it will take this young person 18 years to overcome the economic deficit that is being created today. This is not the way to make the economy work.

For these young people in their 20s, this means putting off purchasing their own property, having children later, needing more time to pay off their debt and earning lower salaries. That is what the Conservative government is offering our young people at this time.

Combining the underemployment crisis and unemployment among young people with the tax hikes announced in budget 2013, with Bill C-60, the Conservative government is in fact reducing my generation's purchasing power.

Although the Conservatives promised not to raise taxes, their budget includes new tax hikes for Canadians on almost everything, from hospital parking to credit unions, safety deposit boxes and labour sponsored investment funds, not to mention bicycles and strollers. These tax hikes will cost Canadians $7.8 billion over the next five years.

Why did the Conservatives promise not to raise taxes if they knew for a fact they were going to raise them by several billion dollars? Budget 2013 is based on an ideology that is harmful to Canadians. Although economists agree that austerity measures undermine growth, the Conservatives are determined to impose these backward-thinking measures in order to achieve their political agenda of cutting the deficit by 2015.

I see my time is up. Thank you, Mr. Speaker, for allowing me to finish and giving me a chance to speak to this bill. I will now take questions. However, I would like to emphasize that, although there are some good measures here, it is unfortunate that we have to vote on everything at once.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I am very pleased to be able to comment on this budget. I listened attentively to those who spoke before me. I believe that the debate will generate some passion, as we just heard in a few of the previous comments.

To begin with, I would like to point out that this is the 32nd time that the Conservative government has taken away our right to comment in the House. It is truly a scandal, and it must stop. It is essential that members be allowed to give their speeches, say what they have to say, and speak about their needs and the problems society will have to face if a budget like this one is adopted. Under this budget, the Conservatives are increasing taxes and reducing services.

I would like to comment on a number of things such as family, freedom and poverty. The budget cannot avoid addressing matters like these. I would also like to talk about job creation.

Even though the government quotes figures and tweaks them from one year to the next, they never give us a start date for how these figures were calculated, and the fact remains that jobs are being lost. Jobs have been lost at White Birch in Quebec. I could mention other companies, like Electrolux, where jobs have been lost. Work may be moving from one province to another, but we are after all living in a confederation and jobs need to be created everywhere. The youth unemployment rate has spiked significantly, and this should compel us to do something.

What the government gives with the right hand, it takes away with the left. I believe that many of my colleagues have been able to demonstrate this. On one hand, a fund is established to help young families, and tax credits are made available for artistic activities; but on the other, a surcharge is imposed on products that cross the border, which takes back the money that these families had saved from their reduced taxes. They are therefore disguised tax hikes.

Just now, the member for Ottawa—Orléans took the floor. I wonder whether he lives on the same planet as my colleagues and I. He said that cuts have been made in a compassionate manner.

Cutting jobs and employee salaries is not a very compassionate thing to do. I will explain how it was done. Those whose jobs were being cut received a letter telling them that jobs would be eliminated in their department.

They were told that X number of positions would be eliminated, but were not immediately told which jobs would be eliminated. Is that what the Conservatives mean by "being compassionate"? Sometimes, employees were asked to choose from among the duties and work being done, what positions were less useful than others. Is that what they call "being compassionate"? That is not what I would call it. There is one small restriction.

This budget is a direct attack on labour funds. In Quebec, the CSN and the FTQ have labour funds. Not so long ago, I sent my constituents a ten-percenter and the highest response rate I ever received had to do with labour funds and the FTQ. These funds allow people to deduct 15% extra from their taxes to make some savings. What the right hand gave away, the left took back, yet again. This additional deduction to which these people were entitled has been taken away.

Who contributed to these funds? They were often people whose wages were very low. It enabled them to save about $1000 a year. Year after year, they would try to save an extra $1,000. Then, by retirement, they would have saved a total of roughly $10,000, $15,000 or $20,000. They saved their entire lives.

Before being a member of Parliament, I worked in an organization. I met people who were earning $30,000 or less per year. In spite of this, they managed to put a little money aside to invest in this terrific fund.

The 15% tax break for the labour fund contributions encouraged them to save their pennies. These are the people who are being attacked. The labour funds, whether the CSN’s or the FTQ’s, are being attacked.

Labour force training is also being attacked. We succeeded in getting something into the budget that says that a company can now deduct $5,000 for training if it invests that much in training.

What companies are we talking about?

In Quebec, there is the 1% labour force training program. Now none of the small companies will be able to make that deduction because once again, this budget helps the big players, but not the small ones. Small businesses will not be able to invest $5,000 in labour force training to match what the government might give. This skews the debate. The companies lose out and labour force training will suffer. Workers, individuals and competitiveness, when all is said and done, will lose out.

I do not know whether the government thought about this aspect, but it is essential; the less training one has, the less competitive one is and the less competitive, the lower the sales, the lower demand for the product and you begin to go under. Our leader has pointed out that in Canada, small businesses and manufacturers have lost a great deal in recent years.

For 2013 and 2014, the budget forecast a deficit of approximately $16.5 billion. In reality, this will be $18.7 billion. Despite all these cuts, Canada's deficit is growing. People are being fooled when they tighten their belts and deprive themselves of everything. It might be worth asking which people are really depriving themselves.

Everything is really upside-down. They are going to pick the pockets of the smallest companies to pay for the majority, rather than the other way around. What are taxes for? Why were they created? Taxes are collected to redistribute wealth through infrastructure, worker training and various other mechanisms. When roads are built, a group of individuals pays and it is all redistributed.

Clearly, the company for which a four-lane road is built does not pay for it. Nor does it pay for the time its trucks spend on the road to deliver a product from point A to point B. People pay for it through taxes. They pay out of their pockets, and they are going to pay more and more. The sales tax was lowered, but the prices of products entering the country are going up.

I have been putting together a file for a year now. This bill follows on from two others, Bill C-38, which was introduced a year ago in the spring, and Bill C-45, which was next in line. In the latter, employment insurance was hard hit. The bill tried to define suitable employment and discarded the previous definition. What we have is the party in power deciding what is suitable for them.

Mr. Speaker, when you retire one day, we will decide for you what you are going to do. You will be able to do something other than what you are doing now. In fact, you will be able to do many things, because you are highly skilled in several areas. Others will therefore decide what is suitable for you.

Some extremely strange things have happened: people who worked in agriculture, for example, being offered jobs washing dishes in restaurants. I think everyone is aware of these strange goings-on.

I would like to talk about a letter I received from the elected representatives in the north shore region, who tell us that the employment insurance reform—and hence the consequences of these notorious mammoth budgets—runs counter to the interests of north shore workers. It will completely undermine the economy.

People remember what the government said during the last election: “power to the regions”. Yet for now, the regions have been totally abandoned, and our elected representatives are saying so.

Next week, people from Prince Edward Island, including the minister, will be coming here to speak to us about employment insurance. The people of Prince Edward Island and the Atlantic provinces are being thoroughly swindled. Seventy percent of all seasonal workers are in the Atlantic provinces.

[Mylène Freeman, NDP, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I am pleased to speak today, May 2, two years after the NDP was elected as the official opposition. It has bee two years, but this budget implementation bill still contains the worst of the Conservative policies, even though this legislation should only include budget measures. Therefore, I will oppose this bill because of its content and because of the process.

Bill C-60, which implements parts of budget 2013, increases the tax burden on Canadians with tax increases for credit unions and small businesses. It also includes higher tariffs on thousands of products. It gives Treasury Board very broad powers allowing it to intervene in the collective bargaining process and to impose terms and conditions of employment on non-unionized crown corporation employees. It also amends the Investment Canada Act to significantly reduce the number of takeovers that are subject to review. Finally, it proposes a symbolic but inadequate solution to the flawed approach to the temporary foreign worker program.

To fully understand the problems with Bill C-60, we must go back to its source, the 2013 budget. That budget did not include anything really new, nor did it propose anything satisfactory regarding employment. It continued to target services provided to Canadians by trying to shrink the size of government. In this budget, the government tried to pull a fast one with funds allocated to worker training, and by pretending that infrastructure funds were going to increase when in fact they have been reduced, as my NDP colleagues found out. It is very important to point out that what was announced as new money is in fact a budget cut.

This budget also targets workers' funds and all those who benefit from such funds, including small investors and businesses in our regions. Moreover, the budget does not take seriously the problems facing producers, such as the labour shortage. The changes made to the employment insurance program did not help at all, and many farmers and seasonal entrepreneurs in my riding are having a hard time hiring skilled labour this year. They worry about the impact that these changes will have on them. The budget also does not do anything to help them with risk management.

The budget also shows a lack of conviction regarding the implementation of the Emerson report recommendations. That report, commissioned by this Conservative government, was drafted by the industry. The fact that its recommendations were not fully implemented means the Conservatives are not clearly siding with the aerospace industry, even though that industry creates thousands of jobs in a riding like Mirabel.

Again, with this budget, the government missed an opportunity to reverse its decision to slash old age security and many other programs. It is really unfortunate that this budget does absolutely nothing for the citizens of Argenteuil—Papineau—Mirabel.

By amending close to 50 different acts, Bill C-60 follows the same pattern as omnibus Bills C-38 and C-45.

While it is smaller than similar bills we have seen from this government, it still amends 49 pieces of legislation, which is a lot. The mere fact that the bill has fewer pages does not mean it is no worse. In any case, what Canadians want is not something that is no worse. They want something better. To achieve that, measures should be proposed properly, separately, and they should be debated fairly, based on their merits. They should be proposed responsibly in this Parliament.

Omnibus bills like this one and all the other budget implementation bills are fundamentally bad for democracy and for our Parliament.

With Bill C-60, the Conservatives are trying, for the third time, to circumvent parliamentary and public oversight. Canadians deserve better than a Conservative omnibus bill that adds to their cost of living and does not create jobs.

I want to be clear. I will oppose this omnibus bill because it is altogether bad for the Canadian economy. Regardless of what the Conservatives are saying, budget 2013 and Bill C-60 are measures that will slow down the Canadian economy instead of boosting it.

Budget 2013 cuts thousands of jobs, cuts program spending and weakens GDP growth. The Conservatives' plan, starting with budget 2012, will lead to the loss of 67,000 jobs by 2017 and a 0.57% drop in GDP. That is far from the prosperity the Conservatives promised.

I want to talk about something other than figures, but I do want to say that I did not make them up. They came from the Parliamentary Budget Officer, who was appointed by this government.

As if it were not enough that this budget does nothing for the economy, with this bill, the government continues to go after workers. The bill gives extensive powers to the Treasury Board to intervene in the collective bargaining process and impose terms and conditions of employment on crown corporations. This interference in the negotiating process is very disappointing. The Conservatives are continuing their direct attack on collective bargaining. What a perfect example of doublespeak. They talk about independence for crown corporations, but they want to impose their austerity ideology and they are crushing that independence by interfering in the management of crown corporations.

I also want to mention that workers are not the only ones who will be negatively affected by this bill. The Conservatives really seem to have it in for the regions. Their tax hikes for credit unions and small businesses represent a direct attack on my riding's economy. Credit unions and SMEs are an important part of our communities' economic and social fabric. The Conservatives are taxing them to benefit the major banks and big businesses.

They amended the Investment Canada Act to considerably reduce the number of takeovers subject to review. That means that businesses outside of major urban centres will no longer be reviewed and, without oversight from the government, could be taken over by foreign companies.

Furthermore, how can we forget their ill-advised EI reform, which targets seasonal workers, who are essential to rural economies, or their attack on labour-sponsored funds, which are supported by workers, investors, unions and businesses, especially in the regions?

It is clear that the budget does nothing for my riding.

In conclusion, the government is trying to say that it is doing a good job managing the economy. In this budget, there is nothing for workers and nothing for Argenteuil—Papineau—Mirabel. People deserve much more, and I hope to have the opportunity to give them more in 2015.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Thank you for your testimony today.

Grand Chief Edward John, I found your testimony to be particularly powerful. Thank you also for teasing at the fact that having a clean environment and clean rivers already has an economic value. In that sense it's an important fact that the Conservatives often overlook.

To turn back to the line of questioning of my colleague, Peter Julian, do you feel that the government has failed in its duty to consult with regard to Bill C-38 and Bill C-45?

[Grand Chief Edward John, Political Executive Member, First Nations Summit]

Honourable members of the committee, ladies and gentlemen, thank you for inviting me to submit a presentation to your committee. Two documents have been submitted to the clerk of the committee and those, I believe, have been circulated. They are the speaking notes I will be referring to, as well as a more detailed 11-page submission.

I want to refer to the comments made by my fellow witness, Mr. Rubin, the economic side of the equation in particular, and the costs relating to extracting the resources and the question of the infrastructure that may be necessary, whether it's going to the east, the south or the west. I want to talk about those particular infrastructure facilities and then the cost of that relative to the cost of aboriginal rights, title, and treaty rights—the economic value of that—and those legal rights which exist and which are recognized in the Constitution of Canada.

The six questions you presented to me, as well as the recommendations that you make, are important to first nations in British Columbia. I know they are also important to the Treaty 6, 7 and 8 chiefs, those particular first nations, in Alberta as well. Developing a just resolution in British Columbia on the land question is essential, but it requires our full and collaborative role and involvement in the resolution of that process, as well as the standards of free, prior, and informed consent for the extraction of those resources that Mr. Rubin was talking about.

These are important to us: the question of energy supply sources, the lands where these resources are being extracted, as well as export market diversification. Again, it's going to mean moving these products by rail or pipeline, and whatever it is, it will have an impact. I think the comment he made is that the feeling generally is that if it's to the west, British Columbia will be left with the cleanup bill. That's an underlying and overriding concern that many first nations communities have.

These are our recommendations on the six issues that you're dealing with. They impact on our communities, our people's social, cultural, and economic well-being and dignity, and the environment, lands, and resources we rely on, and which continue to support our way of life and the traditional ways of our people. They also underline aboriginal and treaty rights, including aboriginal title, which we have inherited from our ancestors and which the Constitution of this country recognizes and affirms.

Our people, communities, and constitutional rights are considered by many, including, I have to say, governments, industries, and people in the public, as risks, barriers and obstacles which create uncertainty for development. To assume or even to suggest that puts our people and our rights in an adversarial position.

We do not see ourselves as risks, obstacles or barriers. We have a right and a responsibility to protect ourselves, our well-being and dignity, as well as our lands, resources, and environment. Because no one else is doing that, we have to do it.

During this past winter, the protection and promotion of these rights and responsibilities were key in ldle No More, the grassroots protest movement among first nations and aboriginal peoples. The steps taken by the federal government in Bill C-38 and Bill C-45 to limit or eliminate environmental standards and safeguards have in no way provided the necessary assurances to first nations who continue to practise their traditional way of life, and who provide for their livelihood by relying on the lands and resources in their respective territories. Because of this, there has been very strong and widespread opposition to the significant risks associated with the proposals, such as those being advanced by Enbridge and Kinder Morgan, and in mining by Taseko and others.

Mechanisms such as political advocacy, action on the ground, and litigation have all been used with varying degrees of effectiveness by first nations in advancing and protecting their rights, supporting their communities and peoples, and defending their lands, territories, and resources.

I believe this committee has an important responsibility to recommend to the government changes to the nature and tone of the negative perceptions and dialogue about first nations peoples. As the saying goes, a tone starts at the top, and I believe that applies here.

The diversity and richness of the cultural and linguistic background of first nations in British Columbia is truly immense, and in my view, absolutely wonderful and worth celebrating. We have some 30 tribal groups with seven linguistic families representing about 5% of the population.

Many different things have had an impact on us, but the 17 or 18 Indian residential schools have had a cumulative intergenerational impact, in fact, on our families and communities and languages as well. In fact, if nothing is done, some languages will become extinct in a generation or two.

What relevance does this have to a discussion about oil and gas and energy resources in this country? I think it's entirely relevant, because we're talking about the people's lands and territories and their well-being. As we see past impacts continuing to build and continuing to mount, first nations have less and less space in their territories, which they rely on to be who they are as indigenous peoples.

We have been developing directions, strategies, and actions. We've taken proactive measures and actions, and we have created community, tribal, and provincial institutions and initiatives to overcome these difficult odds.

We think it is important for you, as members of Parliament, to recognize that the federal government should support these significant steps to improve the quality of life. We are doing that, and we need the support of governments to do it. It is our view that in time the changes we need will happen.

As I said, one of the very significant issues involves the inherent legal and human rights that first nations have to and in their respective lands, territories, and resources. This is the so-called land question. I refer to the economic value of these constitutionally based rights that we have.

The history in British Columbia, I think, is pretty clear. In the mid-1800s colonial authorities, without our peoples' agreement or consent, appropriated these lands and resources to crown sovereignty, ownership, and jurisdiction. At that time, the underlying assumptions about our first nations were that we were not civilized enough to have ownership of or authority over our traditional lands, territories, and resources, and that the civilizations of the new colonies were superior to those of our people.

These underlying assumptions have been categorically condemned internationally, including in the UN's Declaration on the Rights of Indigenous Peoples.

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Speaker, today we are dealing with Bill C-60, the first Conservative omnibus bill following its 2013 budget. It is a bit less abusive than Bill C-38 and Bill C-45 from last year, but it is still an omnibus measure, lumping together various unrelated matters. By my count, at least 18 different government portfolios are implicated.

At the end of the day, the government will force a single vote on all of that all at once. That renders the vote so meaningless, because it cuts across so many unrelated disciplines. Again, democracy is compromised in the process.

There are some items for sure in Bill C-60 which people could generally support: better allowances for veterans, for example; dealing with the adoption tax credit; more incentives for charitable giving; the extension of capital cost allowance; and additions to the gas tax transfer.

However, these positive things are intermingled, unfortunately, with many very negative measures, especially large tax increases that will hit and hurt middle-class Canadians in particular, and we cannot and we will not support those negative measures.

Budget 2013 is crafted to feed several false illusions. The first of those is the mythical notion that the Conservatives are the competent economic managers that they claim to be, but let us look at the facts.

When they took office in 2006, they inherited from their Liberal predecessors 10 straight years of balanced budgets, an annual surplus that was running at the rate of $13 billion every year, lower debt, lower taxes, low and stable interest rates, a sound and solid Canada pension plan, steadily dropping employment insurance premiums, annual economic growth rates of 3% or better, the best banking system in the world, the best ever transfer payments to provinces and territories, progressive investments in child care, skills and learning, science and innovation, environmental integrity, infrastructure, trade and three and a half million net new jobs. That is what the Conservatives inherited. That is what was handed to them as a starting point in 2006.

Just as an interesting historical sidebar, before the Conservatives inherited 10 years of Liberal balanced budgets and robust surpluses, the last time a Conservative government actually balanced a budget for Canada was 101 years ago in 1912. The prime minister at the time was Robert Borden, originally a school teacher, as a matter of historical fact. He, too, inherited his surplus from a Liberal predecessor, namely Sir Wilfrid Laurier, but sadly, he managed to maintain it for only one year before dropping into deficit.

The current Conservative government has behaved in a similar manner through excessive spending and reckless budgeting. Between 2006 and 2008, they put Canada back into the red again before, not because of, the recession, which hit in the latter part of 2008, and they have not balanced the books every since.

In budget 2013, the Conservatives claim they will eliminate the deficit hocus-pocus by 2015. Is that not convenient? Just on the eve of the next federal election they are projecting a balanced budget. A close look at their financial plans provides ample reason to be just a little bit suspicious. Here are some of the fiscal tricks.

First, they use rosy growth estimates. To puff up government revenues, the Conservatives have based their fiscal planning on optimistic projections about economic growth. They ignore the reality that in years just passed, their numbers have never ever been correct. Time and time again, their initial forecast has had to be downgraded, as both the International Monetary Fund and the Bank of Canada have just done once again in this last month.

Second, they use deficient reserves. To create the illusion of more financial flexibility and strength than they really have, the Conservatives have lowballed the reserves that should be in place to serve as fiscal shock absorbers for Canadians against unpleasant future economic surprises. The amounts set aside should grow in the outer years because the risk is larger in the outer years, but the Conservative government has foolishly flatlined its reserves going forward, meaning it is not protecting adequately against future risk.

Third, they use exaggerated lapses. When a government department does not use all the budget in any given year that is given to it, the excess money naturally lapses back to the central treasury. The Conservatives in their budget are counting on very large lapses over the next several years. In fact, that is worked right into their arithmetic. In other words, they are planning to make big announcements of big new spending plans but never actually investing the money.

Fourth, they use excessive optimism about catching those tax cheats. While cracking down on those who do not pay their rightful taxes is an absolute necessity, the Conservatives claim of a balanced budget depends heavily on quickly collecting billions in unpaid taxes, and that seems highly improbable at a time when they are chopping the resources needed in the revenue department to go after those tax cheaters.

Fifth, they use big program cuts. For big programs like infrastructure, the government claims to be increasing its investment, but any hypothetical increase would actually occur only years down the road, beyond the mandate of this Parliament, sometime in the latter part of this decade, conveniently well after 2015. It is a trick that is called multi-year bundling and back-end loading. When the government has nothing to announce, it rolls a bunch of years together and pretends it is going to spend money five or ten years down the road while it actually cuts in the short term. That is happening here. In reality, the build Canada infrastructure budget has been cut by $1.5 billion this year, $1.5 billion next year and $1 billion in the year after that. Any hypothetical increase is only well after 2015.

Sixth, they are claiming before proving. Using all of the tricks that I have just mentioned to concoct the false notion of a balanced budget by 2015, the Conservatives will claim that they have met their fiscal objective just before they call an election and, importantly, before proof to the contrary can become available. In the normal financial cycle, the audit report on the government's books for 2015 will not get published until much later, that is well into 2016, long after any election has come and gone. So much for the Conservative illusion of fiscal and economic competence.

Their second illusion is that they really care about jobs and job training and they boast about their proposed new jobs grant. The Minister of Human Resources and Skills Development mentions it in the House almost every day, but again it is fiction. It is spin. It is make-believe. It does not exist.

What exists are labour market agreements, and they have existed since the late 1990s. They are job training agreements between the Government of Canada and all the provinces. The latest versions of these labour market agreements were negotiated about five years ago, and they are worth now about $2.5 billion all together. Federal money is regularly transferred every year by the Government of Canada to the provinces. The provinces use those funds to tailor job training and labour market programs and services that suit their local circumstances. The provinces are in charge of the design. That is what exists now.

The Conservative government wanted to appear to be doing something about skills and jobs in the 2013 budget. People without jobs and jobs without people is one of Canada's biggest economic problems at the present time. The government wanted to look as if it were aware of that and doing something about it.

However, the government was not prepared to invest any new money to try and make an actual difference in terms of job training. What it did do was create an illusion of action and the fiction it was doing something about jobs and training. What it is basically proposing to do is claw back the $2.5 billion per year labour market money that it now sends to the provinces and renegotiate it with provincial governments. That is all. It amounts to recycling existing money. There is nothing more. There is nothing new. There is no additional federal investment.

The provinces will need to contribute more and so will the private sector. That may actually serve to reduce the extent of job training in some sectors and some provinces, because some of those other partners, the provinces or the private sector, may not be able to match the federal dollars. Even the provincial treasurer in Alberta has made the comment that he does not know whether Alberta would want to participate in that kind of initiative.

The bottom line here is that there is no new money and no additional federal investment in training. It is an illusion to try to create the impression that something new is happening when it is not. That is tragic, especially for young Canadians looking for some hope and opportunity.

Here are the numbers. More than 212,000 fewer young Canadians are working today than just before the recession began in 2008. The youth unemployment rate is a very stubborn 14.2%. That is nearly twice the rate for other Canadians. The actual number is 404,000 jobless young people. Worse still, another 171,000 have simply given up and dropped out of the labour market altogether. The government and the budget do nothing but shuffle the deck chairs on the Titanic. It is simply not good enough.

Another fiction, the third one, is the government's bogus claim that is does not increase taxes. That assertion is completely false, and that is one of the key reasons we cannot support Bill C-60. It increases taxes, especially the tax burden of middle-class Canadians and all those who are working so hard to join the middle class. It happens in dozens of nefarious ways. New hidden Conservative taxes on safety deposit boxes total $40 million a year. On certain medical services, it is $2 million a year. New Conservative taxes on credit unions amount to $75 million a year. It goes on.

However, there are three hidden Conservative tax hikes that hit especially hard at the middle class. They are taxes on small business dividends, taxes on payrolls and taxes on imported consumer goods.

First, the Conservative small business tax, a new tax burden on small businesses, will absorb $550 million every year, taking it from small businesses and hurting the middle class.

The second new Conservative tax is the EI payroll tax, which will suck up $600 million every year in higher EI premiums, again hurting the middle class. By contrast, facing a job challenge in the 1990s, a Liberal government did not increase EI payroll taxes. We in fact cut them. We cut them 12 consecutive times and we cut them by 40%. Employers and employees saved billions of dollars and 3.5 million net new jobs were generated. The Conservative government's record is the opposite of that.

Finally, the third tax increase that we object to is the new Conservative increase of tariff taxes, taxes on imports, which will take about $333 million every year from middle-class Canadians.

The cost of vacuum cleaners will go up by 5%. Bicycles will go up by 4.5%. Baby carriages will go up by 3%. Plastic school supplies will go up by 3.5%. Scissors will go up by 11%. Ovens, cooking stoves and ranges will go up by 3%. For coffee makers, the cost will increase by 4%. On wigs, especially cosmetic wigs for cancer patients, the cost will go up by a whopping 15.5%. The cost of USB drives will go up by 6%. On blankets, the cost will go up by 5%. On toothbrushes, the cost will go up by 2%. On pillows, the cost will go up by 6%. On alarm clocks, the cost will go up by 6%. There are dozens and dozens of imported products.

The government's excuse for this is that it only wants to provide these higher tariffs in order to give a benefit to a lower-income country overseas. However, the reality is, when we put on these tariff increases, the country overseas does not levy the tax and does not pay the tax. The tax is levied in Canada and it is paid by Canadians. The burden is on average middle-income Canadian families. This is a self-inflicted cost burden in Canada, which is why we cannot support it.

When all of these measures I mentioned are fully implemented, as well as some other taxes that are buried in this legislation, the burden will add up to more than $2 billion per year in new Conservative taxes that are being levied on Canadians. The largest portion of that burden will fall squarely on the backs of middle-class families.

For substantive reasons of public policy today, we will not vote for these measures. Also, because the government is trying to hide these new taxes and deny them, we cannot sanction such deceit. Liberals oppose Bill C-60.

Therefore, I move, seconded by the member for Westmount—Ville-Marie:

That the motion be amended by deleting all the words after the word “That” and substituting the following:

the House decline to give second reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures (Economic Action Plan 2013 Act, No. 1), because it:

A) raises taxes on middle class Canadians in order to pay for the Conservatives' wasteful spending;

B) fails to reverse the government's decision to raise tariffs on items such as baby carriages, bicycles, household water heaters, space heaters, school supplies, ovens, coffee makers, wigs for cancer patients, and blankets;

C) raises taxes on small business owners by $2.3 billion over the next 5 years, directly hurting 750,000 Canadians and risking Canadian jobs;

D) raises taxes on credit unions by $75 million per year, which is an attack on rural Canadians and Canada's rural economy;

E) adds GST/HST to certain healthcare services, including medical work that victims of crime need to establish their case in court;

F) fails to provide a youth employment strategy to help struggling young Canadians find work; and

G) ignores the pressing requirements of aboriginal peoples.

Strengthening Military Justice in the Defence of Canada Act

[Peter MacKay, Conservative, Minister of National Defence]

moved that Bill C-15, An Act to amend the National Defence Act and to make consequential amendments to other Acts, be read the third time and passed.

Mr. Speaker, I am very pleased to rise in support of Bill C-15, which aims to amend the National Defence Act to strengthen Canada’s military justice and grievance systems.

This legislation is a comprehensive package of amendments that will enhance the military justice system, clarify the roles and responsibilities of the Canadian Forces Provost Marshal and improve the military police complaints process and military grievance system.

As a former practitioner of the law, Mr. Speaker, you could vouch for the fact that the modernization of law, including the justice system for the Canadian Forces, is an extremely important undertaking and is a long time overdue.

As the House has heard throughout its considerable consideration of the bill, the military justice system is essential to maintaining the discipline, efficiency and morale of the Canadian Armed Forces.

The requirement for a separate, unique system of military justice has long been endorsed by Parliament and the Supreme Court, and is further recognized in the Charter of Rights and Freedoms.

The framework of Canada's military justice system has also been validated in two independent reviews. The first was conducted by Chief Justice Lamer and was tabled in the House in 2003. A second review, by Chief Justice LeSage, was tabled last year following the introduction of the bill.

The amendments proposed in Bill C-15 were developed to address those recommendations that are still outstanding from the Lamer report.

Bill C-15 encapsulates the government's previous legislative efforts to address these recommendations, namely through Bill C-7, Bill C-45 and Bill C-41, so the bill is essentially in its fourth iteration.

The content of the bill has been thoroughly debated and reviewed. It has been before the House, where some 100 speakers from all parties participated in the debate. Most recently, the Standing Committee on National Defence met eight times in February in examining the bill. Three sessions were devoted to clause-by-clause review of the proposed legislation, and the committee heard from 16 expert witnesses from the Department of National Defence, the Canadian Armed Forces and non-governmental organizations.

I want to take this opportunity to thank my House colleagues and the witnesses for their diligence and dedication in the study of the bill.

I would also be remiss if I did not note the leadership of the Parliamentary Secretary to the Minister of National Defence, the member for Ajax—Pickering and members of the committee, as well as Colonel Mike Gibson, who has dedicated tremendous time and effort in bringing the bill forward to this point.

The bill before the House today will make several important changes to the National Defence Act and enhance the military justice system and grievance framework. These amendments include setting out a wider and more flexible range of sentencing options, enhancing the treatment of victims by introducing victim impact statements at courts martial, and clarifying the process and timelines for future independent reviews of the military justice system.

I am pleased to say that members from both sides of the House are generally in support of enhancing the military justice system and grievance process. However, during second reading and in committee, it became apparent that misconceptions regarding certain provisions have persisted, specifically, those provisions related to criminal record exemptions and the Vice Chief of Defence Staff’s authority to provide instructions to the Canadian Forces Provost Marshall during investigations.

I would like to take this opportunity to make the government's position clear on these issues and to put to rest any misunderstandings that could further delay the implementation of this important legislation.

Let me begin by quickly addressing concerns related to the criminal records aspect in clause 75 of the bill, because it seemed to be the focal point of many of the comments here in the House and in committee.

While summary trials are necessary to maintain discipline within the Canadian Armed Forces, clause 75 specifically recognizes that most summary trial conviction offences are not sufficiently severe to justify a criminal record for the disciplined military members within the meaning of the Criminal Records Act.

Specifically, this clause ensures that service members would no longer be required to apply for a record suspension, also known as a pardon, for convictions that would not constitute an offence for the purposes of the Criminal Records Act. That is to say, it simply would not show on a person's record upon leaving the Canadian Forces if he or she has been convicted under one of the offences specified in the act.

In response to concerns under the scope of exempted convictions, the committee accepted the government's proposal to amend the bill to expand the list of exemptions. National Defence estimates that this provision would exempt approximately 95% of summary trial convictions from resulting in a record within the meaning of the Criminal Records Act and eliminate any undue hardship to members transitioning to civilian life. Therefore, most would leave the Canadian Forces with an unblemished record if convicted under one of the mentioned offences.

In committee, members also expressed concerns over a provision to give the Vice Chief of the Defence Staff the statutory authority to provide case-specific direction to the Canadian Forces Provost Marshal during investigations. The intent of this provision is to statutorily define the relationship between the Provost Marshal and the chain of command and to enhance the transparency and accountability of military police investigations.

Unlike civilian police forces, Canada's military police may be asked to operate and conduct investigations in operational theatres, as we have seen in places like Afghanistan, where active combat is taking place. Taking this into account, there may be the need in exceptional circumstances for the Vice Chief of the Defence Staff to issue special instructions to the Canadian Forces Provost Marshal. I say this because surely an operational combat zone would qualify as an exceptional circumstance. Special instructions would balance the investigative independence of the Provost Marshal with the safety and security of those involved in the investigation and the operational imperatives of the Canadian Armed Forces.

This bill would establish in statute a mechanism for issuing such instructions, thereby achieving three objectives. Firstly, maximizing accountability by identifying a single authority for such instructions, namely, the Vice Chief of the Defence Staff. Secondly, establishing a statutory requirement for such instructions to be issued in writing, therefore improving transparency. Finally, further increasing transparency by requiring such instructions to be made public, unless the Provost Marshal considers that it would not be in the best interests of the administration of justice to do so.

There are also provisions here where one can envision that information, particularly intelligence that was passed to the Canadian Forces by allies, would be protected in such circumstances.

In closing, our troops perform extraordinary tasks each day—often at great risk to themselves—in service of our country. They need—and deserve—to know that they can have confidence in the fairness and strength of the military justice system that governs and protects them.

This legislation before the House today has been years in the making. In fact, if we trace its history, it goes back to a period before this government came to office. The amendments have now had the benefit of a full second reading debate in the House of Commons and committee study. I strongly urge the House to support implementing these important provisions without delay.

It will benefit the men and women in uniform of the Canadian Forces and their families. It will benefit these extraordinary Canadians who do so much on behalf of our country at home and abroad.

[Paul Chartrand, Professor of Law (retired), As an Individual]

Thank you, Mr. Chairman. I will begin by offering my greetings to the committee. Thank you for inviting me to appear.

Briefly, by way of introduction, I am a retired professor of law, which I taught for a few decades, mostly in Canada and Australia. I've focused on law and policy relating to indigenous peoples.

Because of some of the comments that were made, I should also add that I was one of the commissioners appointed by Prime Minister Mulroney to Canada's Royal Commission on Aboriginal Peoples in 1996, among other appointments.

I'm here today to make my own professional observations about Bill C-428, not as a representative of anyone. My approach is to make some recommendations based on what I view as good law and good policy based on principles of democracy and constitutional values in Canada.

I offer the following.

The preamble of Bill C-428 characterizes the act as an outdated colonial statute. Is amendment the best way to deal with that? The royal commission's final report in 1996 made some alternative suggestions with regard to amending the Indian Act, but no government since then has undertaken those alternative means, which would by and large involve a negotiation of treaties.

Let me say by way of opening comment that some take the view that amendments to the act involve an attempt to make a silk purse out of a sow's ears, as it were. Given the politically contentious nature of any amendments to the Indian Act, one might add to the image by suggesting the knitting of a silk purse is to take place while tiptoeing through a minefield.

The Indian Act is, indeed, an archaic law that has been imposed upon Indians since 1876, for the purpose of having Ottawa bureaucrats and politicians run the affairs of Indians on reserves. It must be done away with, one way or another. But in Canada you cannot change the state of affairs under which people have been administered for many generations in accordance with the idea that motivated the Indian Act in the first place; that is, that those Ottawa people know better than Indians how to run their own affairs at home. The Indian Act also involves treaty rights because of section 88, which deals with the application of provincial laws and its treaty exemptions.

Clause 2 of the bill, of course, requires that a minister report annually to this committee. My first recommendation is a policy that no amendment to the act is to be proposed or introduced in Parliament without first conducting proper consultations with first nations representatives, and that all bills be drafted in consultation with them.

This approach would tend to promote the democratic principle that laws ought not to be passed without the agreement of those who are to bear the burdens or reap the benefits of the legislation. This approach would at least partly remedy the lack of equitable representation and participation of first nations in Canada's Parliament and government.

My second point is this. Amendments increase the complexity of the law applicable to Indians and lands reserved for the Indians. An annotated publication of the act runs well over 400 pages. Amendments are being made all the time, under various bills, some with obscure titles such as budget implementation acts, and other omnibus bills. These types of bills, which by the way do nothing to promote democratic consideration of proposed legislation, increase the complexity.

There are costs of all kinds worked against first nation interests in such a situation. I note in this regard, that Bill C-45, the recent omnibus bill, also provided for an amendment to the act. That amendment called for the involvement of the minister in the administration of Indian Affairs on a reserve. The interested reader of Bill C-428 will not see that particular amendment.

I will refer to the title of the act. I mentioned that it is a good feature of this piece of legislation that it appropriately identifies the contents of the bill. That's unlike legislation that has recently been passed whose titles obscure the contents of the legislation rather than reveal it. The most egregious example I can think of was known as Bill C-3, which was entitled the gender equity in Indian registration act. That became law in January of 2001. The content of that bill was to deal with the right of individuals to equality before and under the law without discrimination on the basis of sex, as provided in section 15 of the charter. There's no such thing as gender equity in the Constitution.

I will turn now to consider the objectives of the act. What is the mischief to be remedied by the proposed amendments in Bill C-428? The first or preambular statement asserts implicitly that Canada's first nations ought not to be “subjected to differential treatment”. This offends the constitutional recognition and affirmation of the distinct collective rights of Indians as aboriginal peoples who are entitled to differential treatment. Differential treatment is demanded by the law of the Constitution. The easily misunderstood concept of equality of citizenship rights, to which all first nations or Indian persons are entitled, is easily confused, in the public mind and in this preambular statement, with the constitutionally mandated treaty and aboriginal rights, which are collective in nature and demand differential treatment.

My recommendation is that a new, substantive, and not a preambular provision be inserted in the bill that clearly identifies the purposes or objectives of the act. This would go a long way toward assisting in judicial or other interpretation of the legislation. I note that section 3 of the Indian Act—and this is an important provision of the Act—reads that “This Act shall be administered by the Minister, who shall be the superintendent general of Indian Affairs”. Without removing or altering that provision, there might be some difficulties interpreting any sort of an amendment that proposes to do things pursuant to the objectives identified in the preamble.

I'll go now to mention the repeal of sections 32 and 33, which have to do with the outlawing of free trade. If you're not familiar with the history of this provision, I would respectfully urge the members of the committee to look at that, which as I understand began in Manitoba. The Dakota farmers were outdoing the local farmers in the Brandon area and they didn't like that. They contacted their friends in Ottawa and had free trade of agricultural products from the reserve outlawed by these particular provisions.

I would cite the literature of Professor Sarah Carter, who has written a book and some articles that would provide you with an excellent historical background of the way in which this has come about. You will know, honourable members, that section 32 has not been enforced for quite a long time. An order in council from 2010 has exempted all bands on the prairies from this operation. This was a prairie provision.

My modest suggestion in regard to the repeal of these provisions is that you can't dispute that the operation of these provisions would have worked to the economic disadvantage to prairie Indian farmers. The act has contributed to a legacy of poverty and marginalization that forms part of a national mythology of racist assumptions about Indians.

Is it good enough to shut the door on this bad legacy? I suggest that when we shut that door we open another door. The repeal of these provisions is an invitation to you, to the federal government, to set up remedial programs to boost Indian agriculture to make amends. Experts in the field would be able to advise you on the details of such programs, but certainly, you will agree that the objective is one that's recommended by a genuine sense of doing the right thing today.

I refer now to the wills and estates provision, which is clause 7 of the bill and which proposes the repeal of sections 42 to 47 of the Indian Act.

By the way, I suggest that some cleaning-up of the drafting be done. The drafting, in respect to clauses 5 and 7, could be done a lot better rather than throwing headings and substantive provisions all in one basket and saying we're repealing all of that. It's better to clean it up and say, “We repeal the heading, we repeal section 32, we repeal section 33”, rather than saying “The heading and blah, blah, blah...”, which can be confusing. We don't need to add unnecessarily to the complexity, and so a little better drafting can help.

The core issue in respect to the proposed repeal of these sections, which have to do with Indian wills and estates, has been considered by the Supreme Court of Canada. Again, the case of Canard from the Sagkeeng First Nation in Manitoba in 1976 is a leading authority in this area. With the repeal of these provisions at first blush, it appears that the wills of Indians resident on reserves would now be governed by provincial laws of general application rather than federal laws under the Indian Act. This is the result of the constitutional division of powers as well as the operation of section 88 of the Indian Act.

It would seem at first blush that this type of wills and succession legislation necessarily involves family relations and, therefore, the traditional values of first nations, their customs and practices. If wills and succession legislation, which also by the way affects interests in reserve lands, is part of first nation law, say Cree family law, then there's an important implication of the repeal of sections 42 to 47.

The question is whether these provincial laws of general application to Indian reserve residents apply, and if so, if they are constitutionally valid, notwithstanding the potential infringement of the treaty or aboriginal rights of the Cree people. I note, by the way, that the current government has also introduced other legislation dealing with family homes, and matrimonial interests and rights on reserve, and the same question appears there. So one has to be very careful when scrutinizing the implications of this sort of legislation, otherwise you're inviting litigation, or challenging it for its constitutional validity.

I mention, for the benefit of the members of the committee, that Cree law, and Cree family law in particular, has long been recognized as good law in Canada, I cite the Connolly and Woolrich case of 1867, which is a reported decision.

In regard to the comments I'm making, I note also that the modern treaties being negotiated with first nations include provisions recognizing the authority of these first nations to make laws in respect to particular aspects of family law. For example, the Maa-nulth Treaty of 2007 includes the power to make laws respecting adoption, child custody, child care, social development, and solemnization of marriages of Maa-nulth citizens.

Clause 6 proposes an amendment to current section 36 regarding special reserves and reserve lands. This is a very difficult topic, both as a matter of statutory interpretation and constitutional analysis and as a political issue. It is not all that easy to discern the objective of this particular provision. Again, it would be helpful if you had, as I suggested, some provision to better identify the objective of the legislation.

As I understand the text of the proposed amendment, it would have a prospective effect of only retaining the status of reserved lands that are now in the category of special reserves. By necessary implication, all reserve lands created in the future would have to be lands to which a legal title were held by the federal or provincial government.

The implications of that have to be examined very carefully, I think, given the difficulties of ascertaining the law applicable to Indian reserve lands. I cite in particular a proposal that has been floated around for a few years. I don't believe this has been put in the form of a bill yet. It's been called under various names, including the first nations property ownership act. I've concluded in my work that what has been proposed, at least so far as I've gathered from reading a book by some people who are not lawyers, that the objective of creating fee simple on-reserve land is constitutionally impossible. In fact, that may be one of the reasons why the bill hasn't surfaced yet.

Fisheries and Oceans

[Randy Kamp, Conservative, Parliamentary Secretary to the Minister of Fisheries and Oceans and for the Asia-Pacific Gateway]

I am surprised, Mr. Speaker, that the member would be opposed to focusing DFO on the protection of Canada's commercial, recreational, and aboriginal fisheries. That is exactly what we did in Bill C-38 and Bill C-45 and we are continuing to focus on that. As we put together the policy framework to support those changes, we are engaging and talking to our key stakeholders.

The Environment

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

Mr. Speaker, on Earth Day, it is important to talk about clean, safe and sustainable water. The UN declared 2013 the UN International Year of Water Cooperation to raise awareness about sustainability and the challenges of water management because of the increase in demand for access, allocation and services.

This campaign is juxtaposed with the Conservative's Bill C-45 and the elimination of most of Canada's lakes and rivers from the Navigable Waters Protection Act. To fight the harmful impact of this legislation, I will introduce a private member's bill today that will put the Cowichan River back under the Navigable Waters Protection Act.

I would also like to give thanks to my constituents, who are fighting to prevent the dumping of contaminated soil in a local quarry in the Shawnigan Lake watershed. Local aquifers and watersheds significantly impact the local wildlife, health and economy, and a potential contamination could be disastrous.

We understand the importance of protecting our local water sources and the ecological balance for future generations. Happy Earth Day.

Opposition Motion--First Nations, Métis and Inuit

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I would like to ask my colleague about the issue of the nation-to-nation relationship. With Bill C-45, we see the stripping of basic environmental protections on waterways all across first nations territory in order to help the Conservatives' friends in the oil industry, a complete disregard of basic first nations rights that have been affirmed in court decision after court decision about the duty to consult.

Does my hon. colleague feel that the backlash that is rising up right now across the country against the government is because of colonial treatment of people on first nations land? Perhaps that backlash could have been alleviated if the government respected the notion that the original first people of our country are still here. The treaties were signed with them, and that consultation must happen before the government goes ahead with any of its risky and dangerous environmental plans.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I have such great respect for my hon. colleague. I would like to ask him about the issue of treaty implementation.

I would like to ask the member about Bill C-45 and the anger and the response at the grassroots level to the government's decision to slash environmental protection of the rivers and lakes across their territory. The government treats first nations' lands as though they are some kind of colonial land. It can take it and do what it wants without consulting the people involved, damaging the rights of future generations. What is the response we are seeing across first nations communities in standing up and defending their right to be consulted and heard. It still remains land they have rights to, whether under treaty or not?

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

Mr. Speaker, I want to thank the member for Manicouagan for that very good speech and for his very committed work. I know that he has been doing great work raising awareness on a number of pieces of legislation, including the omnibus bill, Bill C-45, and Bill C-27, the financial transparency and accountability act, which the Conservatives have pushed through.

When it comes to NunatuKavut and other nations across the country, one of the things we observe is that while the comprehensive land claims and treaty or self-government agreements are stalled in negotiations, or not even accepted for negotiation, development is taking place on the traditional territories, whether it be forestry or mining. The people who have inhabited those lands for millennia are not benefiting from that development or are having no say when it comes to the environmental impact.

The Fort Chipewyan First Nations in Alberta are very concerned about the environmental impact on their communities. On the west coast, we have forestry. In Ontario, there is the Ring of Fire.

I wonder if the member could comment specifically on why it is important to move forward on negotiating these comprehensive land claims and treaty and self-government agreements so that the people who live in those territories have a say about the kind of development that is happening.