Economic Action Plan 2013 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it
(a) allows certain adoption-related expenses incurred before a child’s adoption file is opened to be eligible for the Adoption Expense Tax Credit;
(b) introduces an additional credit for first-time claimants of the Charitable Donations Tax Credit;
(c) makes expenses for the use of safety deposit boxes non-deductible;
(d) adjusts the Dividend Tax Credit and gross-up factor applicable in respect of dividends other than eligible dividends;
(e) allows collection action for 50% of taxes, interest and penalties in dispute in respect of a tax shelter that involves a charitable donation;
(f) extends, for one year, the Mineral Exploration Tax Credit for flow-through share investors;
(g) extends, for two years, the temporary accelerated capital cost allowance for eligible manufacturing and processing machinery and equipment;
(h) clarifies that the income tax reserve for future services is not available in respect of reclamation obligations;
(i) phases out the additional deduction available to credit unions over five years;
(j) amends rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons; and
(k) repeals the rules relating to international banking centres.
Part 1 also implements other income tax measures and tax-related measures. Most notably, it
(a) amends rules relating to caseload management of the Tax Court of Canada;
(b) streamlines the process for approving tax relief for Canadian Forces members and police officers;
(c) addresses a technical issue in relation to the temporary measure that allows certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract; and
(d) simplifies the determination of the Canadian-source income of non-resident pilots employed by Canadian airlines.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by
(a) reducing the compliance burden for employers under the GST/HST pension plan rules;
(b) providing the Minister of National Revenue the authority to withhold GST/HST refunds claimed by a business where the business has failed to provide certain GST/HST registration information;
(c) expanding the GST/HST exemption for publicly funded homemaker services to include personal care services provided to individuals who require such assistance at home;
(d) clarifying that reports, examinations and other services that are supplied for a non-health-care-related purpose do not qualify for the GST/HST exemption for basic health care services; and
(e) ending the current GST/HST point-of-sale relief for the Governor General.
Part 2 also amends the Excise Tax Act and Excise Act, 2001 to modify the rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons.
In addition, Part 2 amends the Excise Act, 2001 to ensure that the excise duty rate applicable to manufactured tobacco other than cigarettes and tobacco sticks is consistent with that applicable to other tobacco products.
Part 3 implements various measures, including by enacting and amending several Acts.
Division 1 of Part 3 amends the Customs Tariff to extend for ten years, until December 31, 2024, provisions relating to Canada’s preferential tariff treatments for developing and least-developed countries. Also, Division 1 reduces the rate of duty under tariff treatments in respect of a number of items relating to baby clothing and certain sports and athletic equipment imported into Canada on or after April 1, 2013.
Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to remove some residency requirements to provide flexibility for financial institutions to efficiently structure the committees of their boards of directors.
Division 3 of Part 3 amends the Federal-Provincial Fiscal Arrangements Act to renew the equalization and territorial formula financing programs until March 31, 2019 and to implement total transfer protection for the 2013-2014 fiscal year. That Act is also amended to clarify the time of calculation of the growth rate of the Canada Health Transfer for each fiscal year beginning after March 31, 2017.
Division 4 of Part 3 authorizes payments to be made out of the Consolidated Revenue Fund to certain entities or for certain purposes.
Division 5 of Part 3 amends the Canadian Securities Regulation Regime Transition Office Act to remove the statutory dissolution date of the Canadian Securities Regulation Regime Transition Office and to provide authority for the Governor in Council, on the Minister of Finance’s recommendation, to set another date for the dissolution of that Office.
Division 6 of Part 3 amends the Investment Canada Act to clarify how proposed investments in Canada by foreign state-owned enterprises and WTO investors will be assessed and to allow for the extension, when necessary, of timelines associated with national security reviews.
Division 7 of Part 3 amends the Canada Pension Plan to ensure that the Canada Revenue Agency can accurately identify, calculate and refund overpayments made to the Canada Pension Plan and the Quebec Pension Plan in a particular year by contributors who live outside Quebec.
Division 8 of Part 3 amends the Pension Act and the War Veterans Allowance Act to ensure that veterans’ disability benefits are no longer deducted when calculating war veterans allowance.
Division 9 of Part 3 amends the Immigration and Refugee Protection Act to authorize the revocation of temporary foreign worker permits, the revocation and suspension of opinions provided by the Department of Human Resources and Skills Development with respect to an application for a work permit and the refusal to process requests for such opinions. It authorizes fees to be paid for rights and privileges conferred by means of a work permit and exempts, from the application of the User Fees Act, those fees as well as fees for the provision of services in relation to the processing of applications for a temporary resident visa, work permit, study permit or extension of an authorization to remain in Canada as a temporary resident or in relation to requests for an opinion with respect to an application for a work permit.
It also provides that decisions made by the Refugee Protection Division under the Immigration and Refugee Protection Act in respect of claims for refugee protection that were referred to that Division during a specified period are not subject to appeal to the Refugee Appeal Division if they take effect after a certain date.
Division 10 of Part 3 amends the Citizenship Act to expand the Governor in Council’s authority to make regulations respecting fees for services provided in the administration of that Act and cases in which those fees may be waived. It also exempts, from the application of the User Fees Act, fees for services provided in the administration of the Citizenship Act.
Division 11 of Part 3 amends the Nuclear Safety and Control Act to authorize the Canadian Nuclear Safety Commission to spend for its purposes the revenue it receives from the fees it charges for licences.
Division 12 of Part 3 enacts the Department of Foreign Affairs, Trade and Development Act, sets out the powers, duties and functions of the Minister of Foreign Affairs, the Minister for International Trade and the Minister for International Development and provides for the amalgamation of the Department of Foreign Affairs and International Trade and the Canadian International Development Agency.
Division 13 of Part 3 authorizes the taking of measures with respect to the reorganization and divestiture of all or any part of Ridley Terminals Inc.
Division 14 of Part 3 amends the National Capital Act and the Department of Canadian Heritage Act to transfer certain powers, duties and functions to the Minister of Canadian Heritage from the National Capital Commission. It also makes consequential amendments to the National Holocaust Monument Act to change the Minister responsible for the construction of the monument to the Minister of Canadian Heritage from the Minister responsible for the National Capital Act.
Division 15 of Part 3 amends the Salaries Act to add ministerial positions for regional development responsibilities for northern Canada, and northern and southern Ontario. It also amends the Salaries Act to replace a reference to the Solicitor General of Canada with a reference to the Minister of Public Safety and Emergency Preparedness. It also makes an amendment to the Parliament of Canada Act to provide that the maximum number of Parliamentary Secretaries who may be appointed is equal to the number of ministers for whom salaries are provided in the Salaries Act.
Division 16 of Part 3 amends the Department of Public Works and Government Services Act to remove the requirement for the Minister of Public Works and Government Services to obtain a request from a government, body or person in Canada or elsewhere in order for the Minister to do certain things for or on their behalf. It also amends that Act to specify that the Governor in Council’s approval relating to those things may be given on a general or a specific basis.
Division 17 of Part 3 amends the Financial Administration Act to give the Governor in Council the authority to direct a Crown corporation to have its negotiating mandate approved by the Treasury Board for the purpose of the Crown corporation entering into a collective agreement with a bargaining agent. It also gives the Treasury Board the authority to require that an employee under the jurisdiction of the Secretary of the Treasury Board observe the collective bargaining between the Crown corporation and the bargaining agent. It requires that a Crown corporation that is directed to have its negotiating mandate approved obtain the Treasury Board’s approval before entering into a collective agreement. It also gives the Governor in Council the authority to direct a Crown corporation to obtain the Treasury Board’s approval before the Crown corporation fixes the terms and conditions of employment of certain of its non-unionized employees. Finally, it makes consequential amendments to other Acts.
Division 18 of Part 3 amends the Keeping Canada’s Economy and Jobs Growing Act to provide for increases to the sums that may be paid out of the Consolidated Revenue Fund for municipal, regional and First Nations infrastructure through the Gas Tax Fund. It also provides that the sums may be paid on the requisition of the Minister of Indian Affairs and Northern Development.

Elsewhere

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

Votes

June 10, 2013 Passed That the Bill be now read a third time and do pass.
June 10, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give third reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, because it: “( a) weakens Canadians' confidence in the work of Parliament, decreases transparency and erodes the democratic process by amending 49 different pieces of legislation, many of which are not related to budgetary measures; ( b) raises taxes on Canadians by introducing tax hikes on credit unions and small businesses; ( c) gives the Treasury Board sweeping powers to interfere in collective bargaining and impose employment conditions on non-union employees; ( d) amends the Investment Canada Act to triple review thresholds and dramatically reduces the number of foreign takeovers subject to review; ( e) proposes an inadequate Band-Aid fix for the flawed approach to labour market opinions in the temporary foreign worker program; ( f) proposes to increase fees for visitor visas for friends and family coming to visit Canada; and ( g) fails to provide substantive measures to create good Canadian jobs and stimulate meaningful long-term growth and recovery.”.
June 4, 2013 Passed That Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 228.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 225.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 213.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 200.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 170.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 162.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 136.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 133.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 125.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 112.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 104.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 12.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 1.
June 3, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
May 7, 2013 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 7, 2013 Failed 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.”.
May 2, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Canada PostAdjournment Proceedings

May 29th, 2013 / 12:25 a.m.
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Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

Mr. Speaker, when I hear that Canada Post is an arm's-length crown corporation and the government cannot do anything about it, I think it is a bit of a crock. In June 2011, the government did not hesitate to interfere by introducing legislation forcing people back to work when the strike had not even begun. On Bill C-60, the Conservatives would not hesitate to interfere in the negotiations; they have given themselves that authority.

Does the gentleman across the way think that if the managers had something owed to them that they would wait a year and a half before it was paid to them? Does he think that the only shareholder, the government, would wait a year and a half before receiving its dividend that it receives annually? Would it wait that long? I do not think so. Therefore, why would they then be treating their employees and their retired employees with such disdain?

Let us hustle a bit here and respect the Supreme Court. Do not negotiate, as there is no negotiation here. It is settled. The Supreme Court decided, so do what is right and pay these people their due.

Canada PostAdjournment Proceedings

May 29th, 2013 / 12:15 a.m.
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Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

Mr. Speaker, it is fitting that I am speaking to this topic today because this morning I was able to meet with the Association of Public Service Alliance Retirees; its president, Mr. Chevalier; and its executive committee. They wanted to discuss two or three issues, and the government should be worried about one in particular.

In November 2011, the Supreme Court of Canada made a unanimous ruling on pay equity and ordered Canada Post to compensate its employees. Of the slightly more than 6,000 employees who were affected, the majority are women and 80% are now retired. What is worse, this morning members of the Association of Public Service Alliance Retirees told me that 28 of those people are now deceased. There may be more, but the members know that 28 of them have died.

The Supreme Court handed down its ruling a year and a half ago and Canada Post still has not respected the unanimous decision of the highest court in the land.

In 2005, Canada Post set $50 million aside in case it might lose. It lost after a lengthy battle. These people, 80% of whom are retired, live on an income averaging less than $20,000 and the money they are owed would help them a great deal. It would probably add $100 to $150 a month to their pension.

A year and a half after a unanimous Supreme Court decision, Canada Post, backed by the government it seems, refuses to pay what it owes these people. It makes no sense.

I asked the question in April and in response I was told that Canada Post is an independent corporation that is responsible for its own affairs, especially when it comes to human resource management.

I am sorry, but Canada Post has only one shareholder and that is the Government of Canada. When it came to interfering in Canada Post's business in June of 2011, the government did not hesitate to introduce a bill in the House to force the employees back to work before the strike even began. We all remember that saga.

In Bill C-60, which is currently at committee stage, the government also gives itself the right to intervene in collective bargaining processes.

The government cannot tell us that Canada Post is an independent corporation that is responsible for its own affairs when it comes to labour relations and then turn around and say that it can interfere whenever it wants to.

Why does the government not want to interfere to force Canada Post to pay its employees what it owes them, as per the Supreme Court's decision?

Who does Canada Post want to appeal to now? It is trying to negotiate with the unions and the courts to pay less interest than it owes. A Supreme Court judgment cannot be appealed before lower courts. If Canada Post wants to appeal the Supreme Court's decision, it should bring its case before Parliament, where its appeal will be denied rather quickly. Canada Post has to pay that money to over 6,000 current employees and former employees who are now retired. It is not doing so.

As I said the other day, it very unlikely that the bigwigs and managers at Canada Post would agree to wait a year before getting what they were owed.

I hope that the government will take action and force Canada Post to abide by the Supreme Court's decision.

The Canadian Museum of History ActGovernment Orders

May 28th, 2013 / 9:20 p.m.
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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, I am referring to the public trust. When we are dealing with sensitive issues like the telling of our story and the mandate of a museum, which has been the most popular and well-attended museum in the national capital region with professionals who worked there for years and years to build up its reputation not just in Canada but internationally, it suggests that if the Conservatives are to make these changes, they better have some good reasons which would benefit all Canadians.

I bring up these issues because we see time and time again a government that lacks transparency and has no commitment to accountability. I mean, the Conservatives have lost $3.1 billion. It has fallen away somewhere and they cannot seem to find it.

I also want to talk about the way in which the bill came about. I see some hon. members across the way shaking their heads because they do not like the truth about how they spin Canadians.

We in the heritage committee were sent on a journey to study how best to celebrate Canada's 150th birthday. We interviewed countless Canadians. They said many interesting things, but never did they say that we needed to change the name of the Museum of Civilization. No one came to us and said, “Folks, you really do this. There's a real problem here”. No one ever said that, not once.

However, we did hear from many people who came before our committee from small archives and museums across the country. They said that if the government did not do something to help them out, that their archives and museums were on the verge of dying. Their curatorial workers are getting older, and the average age is well into the fifties, but because of deep cuts that the Conservative government has made to cultural industries in our country, and its contempt for the independence of third party agencies, fewer young people are going into this sector.

Now the Conservatives are telling Canadians that they are going to share this vast treasure trove of historical artifacts with all the little museums and archives across the country, but none of them have the capacity to receive that stuff. Not only that, there is no cost attached to the bill. This from the prudently fiscal government, but, oh yes, it lost $3.1 billion. I do not know if I mentioned that.

However, all of a sudden, out of thin air, the Minister of Canadian Heritage said that he found $25 million in the Department of Heritage to spend on this museum. He said that it was not coming from any other program and no other program was going to suffer. However, he does not tell us where the heck the money was in the first place. Not one time have we actually had accountability and transparency on Bill C-49.

When we start to talk about bills, especially ones that change the narrative or at least try to describe it in a different way, we want to consult with Canadians. That is what the heritage committee is supposed to do and, in fact, we did. Then, the minister, while riding his motorcycle, had a vision. His vision was to change the name and the mandate of the Museum of Civilization. Then he doubled back, maybe he popped a wheelie, drove back to Ottawa and announced that the government was changing the name of the Museum of Civilization. He announced how much money the government would spend on it. Then, after that, he proceeded to public consultation. I know I am still kind of new here, but that is a little on the backward side.

The entire $25 million one-time contribution comes directly out of the Canadian Heritage budget, but the minister has refused to explain where exactly the money comes from or what heritage programs will lose funds to finance the contribution.

This is the game of deception the government is now famous for. The Conservatives cannot find $3.1 billion. It is lost. No one can say where it is.

This is a government that guts environmental protection of our lakes, rivers and streams but spends millions on a fake lake in Toronto. It refused to support the NDP's national housing strategy, but spent millions on gazebos in Muskoka to help re-elect one of its vulnerable ministers.

In fact, the minister responsible for housing told Canadians that the issue of affordable housing had been solved, since interest rates are at historic lows and Canadians can now buy houses. This shows a complete lack of understanding of the reality of life for folks who live in Toronto, who live in my riding of Davenport, who struggle day in and day out to afford their apartments, their homes. Families cannot find suitable and affordable housing. Seniors are barely hanging on in their homes, and young people are facing an incredibly unstable future without access to full-time, stable jobs.

The government decided the change the name of the museum at a cost of $500,000. It added about $400,000 more for its bogus consultation, which happened after the fact. That is why I call it bogus. It had already made its decision. It already knew exactly what it was doing. The plan was in the minister's motorcycle satchel.

This is how things are supposed to work in the House of Commons when it is not dominated by the anti-democratic reflexes of the government. We consult Canadians. We craft legislation based on the consultation. We table legislation in the House, debate it and finally, if the legislation passes, earmark the money and spend it on the program.

The government says it is going to spend $25 million to narrow the mandate and change the name of the Museum of Civilization. It says that the money is just lying around. Where was it all this time? It spent almost $1 million on a party and a consultation process, but the consultation came after the decision had already been made. This is an insult to Canadians. However, this is what we have come to expect from Conservatives.

In Davenport, for example, and this is on the point of consultation and transparency, people are only too familiar with this lack of consultation. For 50 years after a nuclear fuel processing facility had been operating in the riding, no one who lives near it knew what was going on there. The company's operating licence, however, clearly stated that it must keep the residents informed. It did not, and the government is okay with that.

That is why Conservatives have refused my request, on behalf of the community, to reopen the licence to give residents their lawful opportunity to participate in the process of public information.

Cultural communities and citizens of varied backgrounds came to us at the heritage committee. They talked about their stories and their concern about a dominant culture in which there is no space for them to talk about their issues and their history.

With its one-sided and triumphalist approach, the museum of history could run the risk of presenting a monolithic vision of Canadian history, unrepresentative of its diversity. This is particularly of concern to me. More than half of all residents of Toronto were not born in Canada. Their stories, their struggles, their triumphs, their hopes and their fears are the lifeblood that courses through the veins of Toronto. Immigrants' stories are heroic stories.

Recently I had the honour of being present at a ceremony marking 60 years of Portuguese immigration to Canada. The history of the Portuguese in Canada, particularly, in Toronto, is incredible. It is built on hard work, fidelity to family, love of home country, and a deep faith and commitment to Canada. It is a story of the collective achievements of a community, many members of which came to Canada with very little and contributed so much.

Will this story be told in Canada's museum of history? Will the great stories of Canada's multinational, multi-ethnic immigrant community have a place there? Will it be up to the whim of the Minister of Canadian Heritage and Official Languages and his buddies on the board?

There are many stories and many parts of our history that many Canadians have little trust the government would be interested in presenting at this history museum.

The fact that we are even discussing whether the Conservatives would be interested in them underlines the real problem of independence. We know already that the Conservatives have tried time and again to interfere with the independence of cultural agencies.

We have great stories. We have troubling stories too. We have stories of the history of feminism in Canada, for example. We have the tragic story of the Komagata Maru. We have the On to Ottawa Trek. We have the story of Norman Bethune, for example; the Riel rebellion; the story of co-operatives in Canada, which is a phenomenal story; and of course, the story of the first peoples of Canada.

There is concern, not just here on this side of the House but across the country, that the government has a very narrow vision of what is Canadian history and that the Conservatives want to prescribe in this new museum a vision of Canadian history that is not the full picture. That is the concern. There is very little the Conservatives have said during this debate to allay the fears of many.

Some people may think that some of these concerns about telling the stories of new Canadians and immigrants are misplaced. However, when we look at the Conservative record on immigration, for example, we have a lot to be concerned about. While the New Democrats want to reunite more families in Canada, the Conservatives' radical overhaul of Canada's immigration system is turning this country into a less welcoming place, making it even harder for families to reunite in Canada with overseas spouses, children, parents and grandparents.

Here is what the Conservatives are asking families to face: waits as long as nine years to reunite with loved ones; a misguided two-year freeze on reunification applications for parents and grandparents; and arbitrary rejection of visitors' visas, with no chance for appeal, preventing many family members from attending weddings and even funerals. Meanwhile, instead of welcoming skilled immigrants to address Canada's long-term economic needs, the Conservatives are prioritizing temporary work visas to help big business pay lower wages.

This is no way to build our country or our communities. If we want to grow a 21st century economy, we will need to attract the best and the brightest from around the world. Making family reunification a central priority in our immigration system is one of the ways to go.

This is part of the context in which we are debating this bill. If we do not have a sense that the Conservative government will play a hands-off role in cultural agencies, and if we do not have a sense that it understands the importance of families and family reunification in our immigration system, how can we trust them to allow the full story of who we are as a country to come out in this new formulation of the Museum of Civilization?

The bill would closely follow the Conservative attempt to interfere with history as taught in classrooms, clearly interfering in provincial jurisdiction. We have heard these comments tonight about the apparent lack of attention to history in Canadian schools. Sometimes some of these members should perhaps consider running provincially, because that is a provincial jurisdiction.

This spring, Conservatives on the heritage committee attempted to study history in provincial classroom curricula, focusing on battles in military history.

We understand the need for a balanced rendering of history devoid of any political interference. Too often, though, we have seen the current government reach into cultural institutions and attempt to compromise their independence. In fact, the Conservative cabinet, if Bill C-60 passes, will attempt to dictate rates of pay for non-unionized workers and terms for collective agreements at many cultural agencies, including the CBC and the Museum of Civilization, or as it will soon be called, the museum of Canadian history.

For the Conservatives, it is always a race to the bottom, though, on the environment, on ethics, on transparency in government and, most importantly, on wages.

The government is ideologically committed to pushing wages down, breaking unions and privatizing key cultural institutions. This ideology fails the people of Canada and Toronto and urban workers in cities across the country. Almost 50% of all workers in Toronto cannot find full-time, stable employment. They work part time, freelance, on contract or are self-employed. They have no access to benefits, workplace pensions or job security.

Our cultural institutions are not only the repository, the incubator and the teller of our shared stories. They contribute enormously to our local and national economy, providing employment to hundreds of thousands of Canadians. In fact, the arts and culture sector contributes between $60 billion and $80 billion of GDP to the Canadian economy. However, when key employers, such as the CBC and the NFB, are cut to the bone, life gets much harder for workers in the cultural sector.

We need to frame this debate in the context of other cuts that have happened to cultural agencies. When the government talks about its interest in sharing Canadian history, a community of librarians and archivists right across the country scratch their heads.

Since coming to power, the Conservatives have incessantly targeted Library and Archives Canada, a federal institution and the keeper of our collective memory. They have imposed modifications and irreversible consequences on our knowledge and perception of Canadian history, firing half of Library and Archives Canada digitization staff, cutting staff in charge of document preservation and conservation and eliminating the interlibrary loan program, which provides access for all Canadians to their national library collections.

These are the kinds of cuts that underline the fact that the Conservative government has done the most to prevent access to Canadian history since the $450 million cut to the CBC by the Liberal Party in the nineties.

We need to focus on maintaining the independence of these agencies. We need to stop wasting taxpayers' money. We need to introduce much more transparency so that Canadians understand where the money is coming from and how it is spent and that their history is not going to be dictated by ministers of the Conservative government.

Technical Tax Amendments Act, 2012Government Orders

May 28th, 2013 / 6:50 p.m.
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Conservative

Mike Wallace Conservative Burlington, ON

Mr. Speaker, I appreciate the question from the member opposite for Western Arctic because it is a question about fairness in the tax system. This bill deals with closing the tax loopholes that people are using to avoid paying taxes, whether they be illegal or very aggressive tax plans. When we talk about fairness, we are talking about fairness with respect to those changes we have made to the tax code, so that the legislative piece ensures everyone is paying their fair share.

On a more broad approach to this question, I am glad the member for Western Arctic is interested in tax fairness because that would mean I can look for that member to stand in favour of our budget implementation bills that move forward on closing tax loopholes. If the member is serious about closing tax loopholes and being fair to all taxpayers, I believe he should be supporting our implementation bills, including Bill C-60 when it comes back to the House.

FinanceOral Questions

May 28th, 2013 / 2:55 p.m.
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Conservative

James Rajotte Conservative Edmonton—Leduc, AB

Mr. Speaker, today at the finance committee, we were discussing Bill C-60, which is the first budget implementation act of this government. This legislation includes $18 million for the Canadian Youth Business Foundation, $165 million for Genome Canada, $20 million for the Nature Conservancy of Canada, $30 million for Nunavut Housing, $5 million for aboriginal students through Indspire, $3 million for compassionate care through the Pallium Foundation and $3 million for the CNIB for the national digital hub.

Can the Minister of Finance comment on why it is so important that this Parliament pass these measures?

May 28th, 2013 / 1:50 p.m.
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Conservative

Shelly Glover Conservative Saint Boniface, MB

Thank you, Mr. Chair.

I might note that we were all distributed answers from DND on this question, and they included, of course, the question that was asked. The question that was asked was not the question Mr. Brison just cited, but in fact, as I read from the document, the question was how many missions with a risk score between 1.50 and 1.99 have been prescribed for income tax relief.

The answer has been given. I might add that missions between 1.50 and 1.99 are very low-risk missions, which frankly has nothing to do with the proposed changes in Bill C-60 anyway. If Mr. Brison has further questions about how DND assigns mission numbers and evaluations and assessments, I'm sure the Liberal Party would welcome him to sit in at their next committee meeting. He can sub in and replace whichever Liberal member typically goes there, but it is completely out of the scope of what Bill C-60 is doing.

I might add that when I talk about low-risk missions, I'm talking about, for example, a joint force mission in Tampa, Florida. We're not talking about high-risk missions such as Afghanistan, etc.

I believe DND has answered the questions put to them. I see very clearly what the responses were. I see very clearly what the questions were. To now change the question and ask for more time, frankly, appears to be a delaying tactic. I would suggest Mr. Brison go to the National Defence committee to seek out further information about how DND evaluates their missions.

Thank you. I'm prepared to vote on this.

May 28th, 2013 / 1:45 p.m.
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Conservative

The Chair Conservative James Rajotte

Thank you, Ms. Nash.

I have a ruling on this amendment.

Bill C-60 provides for a maximum payment of $2 billion with respect to the Office of Infrastructure of Canada or the Minister of Indian Affairs and Northern Development. The amendment seeks to amend the bill so that an additional $40 million can be paid out of the consolidated revenue fund.

House of Commons Procedure and Practice, second edition states, at pages 767 and 768:

Since an amendment may not infringe upon the financial initiative of the Crown, it is inadmissible if it imposes a charge on the public treasury, or if it extends the objects or purposes or relaxes the conditions and qualifications specified in the royal recommendation.

In the opinion of the chair, the amendment proposes a new scheme that seeks to alter the terms and conditions of the royal recommendation, and therefore I rule this amendment inadmissible.

(Clause 233 agreed to)

Colleagues, we now have to deal with two clauses we tabled, clause 7 and clause 36.

You do have an answer from DND. I hope that has addressed all the questions. We'll go to Mr. Brison.

May 28th, 2013 / 1:15 p.m.
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Liberal

Scott Brison Liberal Kings—Hants, NS

Another question I would have is on the policy rationale behind the provision in Bill C-60 allowing Treasury Board personnel to attend all the meetings between a crown corporation and the bargaining agent during collective bargaining. From your perspective, what is the policy rationale for this change?

May 28th, 2013 / 1:05 p.m.
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Conservative

Mark Adler Conservative York Centre, ON

Thank you, Chair.

It gives me great pleasure to speak on this. Unlike the opposition, our government remains focused on what matters most to Canadians, and that's of course jobs, growth, and long-term prosperity.

I was listening with interest to Ms. Nash's comments, and I have to tell you, there's not a scintilla of truth in anything that she said. The measures proposed within Bill C-60 do not affect in any way whatsoever—I can't be clearer than that—the independent operation of any crown corporation, including the CBC. Crown corporations are independent in their operations. Their financial bottom line, however, affects the government's bottom line and thus the taxpayers'. Unlike the opposition, this government has demonstrated time and time again its respect for taxpayers' dollars.

Now, as a responsible steward of taxpayer dollars, our government is ensuring that we have a mechanism in place to protect taxpayers' dollars at the bargaining table when and if necessary. Compensation costs can be an important element of the financial viability of a crown corporation, and this amendment provides an option for the government to give specific direction to a crown corporation in this respect.

The measures proposed in Bill C-60 are neither new nor revolutionary. The Quebec government, since 1985, has required similar prior approval of bargaining mandates from the provincial minister of the treasury board, something the leader of the NDP should know all too well. Both the government and crown corporations have a responsibility to spend taxpayers' dollars wisely, and we will work together when necessary to help ensure Canada's long-term growth and prosperity. This is our number one priority, because it is the number one priority of Canadians.

May 28th, 2013 / 12:05 p.m.
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Conservative

The Chair Conservative James Rajotte

I call this meeting back to order.

Again, colleagues, we are on meeting number 125 of the Standing Committee on Finance, continuing our clause-by-clause consideration of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013, and other measures.

(On clause 174—Enactment)

Clauses 174 to 199 deal with division 12, Department of Foreign Affairs, Trade and Development Act.

We have eight amendments dealing with clause 174. We will deal with them in the order they're on your agenda. Therefore, we will go to Ms. May for her eighth amendment, please.

May 28th, 2013 / 11:35 a.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

I'll address them separately, Mr. Chair.

I'll speak to amendment NDP-16. This clause concerns the temporary foreign worker program. Bill C-60 introduces the ability of the minister of CIC to revoke a work permit and for the minister of HRSDC to “revoke”, “suspend”, or “refuse to process” an opinion, and that those ministers shall set out instructions in the justifications for such revocation.

We've raised this many times in the House, but generally our concern about the temporary foreign worker program is that it's bringing in foreign workers to work for less pay, rather than giving these jobs to Canadians. We know there are some labour shortages in certain parts of the country, and yet there are many other parts of the country, including right here in Ontario, where there is persistent high unemployment. As I described with the Electro-Motive situation, through a lockout and a plant closure after a foreign takeover that was encouraged by this government, people's standard of living went down dramatically.

The changes the government is making in this act are tinkering with the temporary foreign worker legislation. They don't go far enough. We need to include guarantees against further abuses to the temporary foreign worker program. We have to prevent it from being used as a substitute for hiring Canadians and paying them a decent wage at the prevailing rate. If the ministers had been doing their jobs correctly in the first place, they certainly would not have been granting temporary work visas and giving bad labour market opinions, which allowed these abuses to take place.

We have three amendments to this clause that will better protect Canadians from being displaced and ensure that temporary foreign workers are not paid at a lower rate.

I'll deal with amendment NDP-16 first. It would require that HRSDC refuse to process a labour market opinion where it is advertised at a salary below the prevailing wage. Canadians may ask how they would be doing that now, but we've certainly seen instances where that has happened, and this government recently made a change that allowed temporary foreign workers to be paid 15% less than the prevailing wage. That is a low-wage strategy; it depresses wages for all workers. Recently the government rolled back this program they had earlier introduced. We believe if the government would just read its talking points about long-term prosperity, they would include people who are being undermined by temporary foreign workers.

We think that depressing Canadian wages is the wrong way to go. We want to make sure that this downward pressure on Canadian wages stops, that Canadian workers always get first crack at the job, and that the wages offered in cases where temporary foreign workers are needed are at the prevailing wage or above, but certainly not below, because it's just too attractive to employers to bring in temporary foreign workers and pay them less than Canadians are being paid.

That's the basis for our amendment, Mr. Chair.

May 28th, 2013 / 11:20 a.m.
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Conservative

The Chair Conservative James Rajotte

Thank you, Mr. Caron.

I have a ruling on this amendment as well.

This amendment seeks to amend section 19 of the Investment Canada Act.

House of Commons Procedure and Practice, second edition, pages 766 and 767, states:

...an amendment is inadmissible if it proposes to amend a statute that is not before the committee or a section of the parent Act, unless the latter is specifically amended by a clause of the bill.

Since section 19 of the Investment Canada Act is not being amended by Bill C-60, it is inadmissible to propose such an amendment.

Colleagues, may I call clauses 138 to 140, since there are no further amendments on clause 138?

May 28th, 2013 / 11 a.m.
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Paul Halucha Director General, Marketplace Framework Policy Branch, Strategic Policy Sector, Department of Industry

Specifically dealing with the definition of state-owned enterprises provided in the act, the Bill C-60 proposals to amend the ICA include the definition of state-owned enterprises. If we go back to December of last year, when the Prime Minister made the announcement around the two SOE transactions that were under review at that time, he provided a policy clarification around state-owned enterprises. We undertook a series of actions, including the updating of the SOE guideline at that time.

The definition we've added into the act at this point effectively repeats the definition that he articulated and that was added into the SOE guideline in December. To that extent, it's not new. I would argue that it's a very clear definition, as follows:

(a) the government of a foreign state, whether federal, state or local, or an agency of such a government;

(b) an entity that is controlled or influenced, directly or indirectly, by a government or agency referred to in paragraph (a); or

(c) an individual who is acting under the direction of a government or agency referred to in paragraph (a) or who is acting under the influence, directly or indirectly, of such a government or agency;

The definition reflects the existing SOE guideline definition, that it is “an enterprise that is owned, controlled or influenced, directly or indirectly by a foreign government”.

The issues that have I think attracted a bit of attention in committee, and certainly from legal practitioners who are responsible for dealing with foreign investors in terms of brokering investments in Canada, are around the definition of “influence”. It has not been defined in the act. It's to be determined on a case-by-case basis.

It's important to always remember that the Investment Canada Act provides the minister with a discretionary authority. It provides him with the legal obligation to review each transaction on its merits. Therefore, similar to that, the discretionary authority around state-owned enterprises is provided.

So through the review process, investors are expected to address in their plans and undertakings the inherent characteristics of state-owned enterprises, and specifically that they are susceptible to state influence. Investors must also demonstrate their strong commitment to transparent and commercial operations.

In assessing influence, there are many factors that the minister could consider. In undertaking our analysis, we identified a number that we believed would be of extreme relevance, and I would offer them up to the committee in terms of providing further information around how influence could be assessed in the context of specific transactions.

One example would be the special shares of a corporation. Frequently you have companies where there's.... It's not direct control, there's not indirect control, but a foreign state retains a share of the ownership of the company, and with that are associated negative covenants, which often permit it to make veto decisions around important corporate decisions. That's an example of influence.

Secondly, there's the track record of the company. To the extent that foreign states operate around the world, the minister can look at what the experiences are of other state-owned enterprises, or the same one if it's making an investment in Canada, to understand how the foreign state has influenced—if it has—the operations in those foreign jurisdictions.

Thirdly, there's the state's ability to nominate or replace board members and appoint senior management. That's an obvious way of exercising influence that would not be captured by the definitions of control or indirect control.

Finally, there's any authority under foreign law or the corporation's governing documents preventing a foreign state from directing the affairs of business.

Those are examples.

May 28th, 2013 / 10:35 a.m.
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Conservative

The Chair Conservative James Rajotte

Colleagues, I call this meeting back to order.

This is meeting number 125 of the Standing Committee on Finance doing clause-by-clause of Bill C-60.

We left off at clause 136. I have three amendments by Ms. May.

Ms. May, you can address them separately in statements or you can address them together if you wish.

(On clause 136)

May 28th, 2013 / 10:25 a.m.
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Conservative

The Chair Conservative James Rajotte

Thank you, Mr. Plamondon.

I have a ruling on this amendment as well.

Bill C-60 would amend the Canadian Securities Regulation Regime Transition Office Act in order to provide for the extension of the transition office until the Governor in Council decides to dissolve it. This amendment proposes to force the Governor in Council to dissolve a transition office no later than July 12, 2013. As House of Commons Procedure and Practice, second edition, states on page 766:

An amendment to a bill that was referred to a committee after second reading is out of order if it is beyond the scope and principle of the bill.

In the opinion of the chair, the removal of the ability of the Governor in Council to extend the operation of a transition office would be contrary to the provisions of clause 133 of the bill, and therefore this amendment is inadmissible.