Bill C-60 (Historical)

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

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.

Second Reading

[Jean-François Larose, NDP, Repentigny, QC]

Mr. Speaker, as if having something so absolutely deplorable were not enough, to add insult to injury, the government is not even letting us debate each item in this very dense and problematic budget.

We are told that we can send the bill to committee where, as the government knows, it has a majority. We are always being muzzled. Moving a time allocation motion to shorten the debate is another insult.

Since the 1960s, we have been fighting like crazy to prevent foreign takeovers here in Canada. At some point in Quebec, a very large number of private American corporations, for example, controlled the market to their benefit and not ours.

This situation created incredible poverty. People's quality of life, job security and standard of living suffered. We fought to get rid of the problem.

I wonder if my hon. colleague has anything to say about that.

I do not know why he wants to encourage takeovers. We should not sell out, period.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, it has become patently clear that the opposition really has nothing to say about the substance of the bill, so it resorts to criticism of the process.

When it comes to process, this government has been crystal clear. This government will be sending the bill to various committees for comprehensive study. In fact, at finance committee, we will go through Bill C-60 clause by clause, and the NDP can raise amendments and objections at that point.

This is the old bogey that the NDP and socialists love to bring out, that we are being taken over by American companies or foreign companies. We have heard this from the NDP going back to the 1960s, from the waffle movement within its party, and time and time again it has been proven wrong. It was against the Auto Pact. It was against the free trade agreement. It was against NAFTA. It has been against six free trade agreements that our party has negotiated to create jobs in our country. The NDP does not stand with the Canadian worker.

[Cathy McLeod, Conservative, Parliamentary Secretary to the Minister of National Revenue]

Mr. Speaker, the excellent speech by the member for York Centre really highlighted some important features of the budget implementation act no. 1. What I especially appreciated was his talk about the preferential tariffs and how this was a very positive measure.

We hear the NDP regularly say that it supports Canada, it supports jobs and it supports measures. On the other hand, we also hear the NDP argue against these important changes that would really help our manufacturers and create a playing field that would be fairer and would no longer needed because they were not developing countries.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, my colleague is on the finance committee and is the very hard-working Parliamentary Secretary to the Minister of National Revenue.

In fact, in budget 2012 the Minister of Finance ad called consultations on the general preferential treatment. In December last year, hundreds of representations were made during that consultative process. I have the list of all the individuals, companies and organizations that made representations. I cannot find one New Democrat on this list. I cannot find one Liberal on this list. Those members seem to be crying crocodile tears. Their job creation strategies are not for Canada. Their job creation strategies are for China.

[Patrick Brown, Conservative, Barrie, ON]

Mr. Speaker, I rise today to show my support for economic action plan 2013, the budget implementation act. I am pleased to see our government continue to invest in the programs and services that are most important to Canadians.

The impact of Canada's economic health is vital to all Canadians. The economic action plan was initially designed to lead Canada out of the worst recession in generations. The temporary stimulus measures of the economic action plan had their intended effect. The projects created jobs at a time of recession while making investments in local infrastructure that would benefit our communities for years to come, leaving a lasting legacy.

Our agenda has kept Canada's economy on the right path. For instance, we are increasing skills and training support by introducing the new Canada job grant to help more Canadians get high-quality, well-paying jobs. We are also helping businesses succeed by extending the accelerated capital cost allowance to encourage manufacturers to invest in new equipment, extending the hiring credit for small businesses, and making strategic investments in world-class research and innovation.

Through the strong leadership of our Prime Minister and the Minister of Finance, Canada has created over 950,000 net new jobs since July 2009. I am pleased to report that the vast majority are full-time, private sector jobs. That is the best record in the G7.

We have seen Canada maintain its Triple-A credit rating through this period of difficult economic instability and uncertainty. We continue to see Canada with the lowest net debt-to-GDP ratio and the lowest overall tax rate on new business investment in the G7. Moreover, the IMF and the OECD have forecast that Canada is on track to stay near the top of the G7 in economic growth in the years ahead.

I would like to take a closer look at some of the initiatives in the budget and share with the House some information on how this budget would benefit the people of the city of Barrie, whom I have the honour to represent.

Set around Lake Simcoe, Kempenfelt Bay, Barrie's waterfront is one of the most beautiful natural assets we have. It is a major boost to tourism across Simcoe County and all around the province. There is no doubt that the health of Lake Simcoe is vital to our region and to the people who live in the city of Barrie. Unfortunately, in recent years, the presence of zebra mussels has become an increasingly large threat to the lake's well-being. The growing presence of invasive species has continually posed a problem in Lake Simcoe's waters.

Our government has been very committed to making sure that the lake is as healthy as possible. It all started in 2007 when we announced a historic $30 million cleanup fund, which is a five-year fund from 2007 to 2012. It was going to deal with some of the concerns over rising phosphorus levels, which result in excessive weed growth and a reduction of marine habitat. This fund was very successful in working with stakeholders at reducing the phosphorus levels. In 2013, this fund was extended for another five years with an additional $29 million.

I would note that, historically, the health of Lake Simcoe has been left to local governments. It took a Conservative government to finally invest in cleaning up the lake. I have to say that it was very well received in our region. The fact that we continue to fund that cleanup has been absolutely terrific.

However, it is not just cleaning up the lake; this budget also deals with the concern of invasive species, as I mentioned. It allocates an additional $4 million over three years to continue this battle against zebra mussels through the continued enforcement and monitoring of ballast water regulations.

Our government's commitment to protect our natural environment is commendable on many levels. I am pleased to note that younger generations in our region can be confident that they will be able to enjoy Lake Simcoe for years to come.

In furthering this commitment to protect and sustain our precious waters, our government has paid close attention to the depleting water levels, particularly in the upper Great Lakes, including Georgian Bay. I have heard from many of my constituents in and around Barrie that this is a major concern, especially for cottagers. It is not just people living along Georgian Bay; an incredible number of people use the water area. Therefore, I was pleased to see this budget address the concern of lower water levels.

In March 2012 the International Joint Commission received the results of the water levels study. It is great to see that this budget commits to working with the IJC on resolutions and recommendations to deal with this growing concern.

There are also a few more highlights for Barrie in the budget.

We have seen the importance of infrastructure, such as transportation, community centres and water treatment facilities, in our communities. Our government's investment in infrastructure in the Barrie area alone has totalled well over $100 million since we were elected in 2006. It makes the city much stronger, a much better place to attract business and a healthier place to live. It is great to see that this current economic action plan would enhance that commitment to infrastructure.

The budget would deliver the new building Canada plan, which is a combination of other measures in the budget. It actually is the largest infrastructure program in Canadian history. The building Canada plan would provide stable funding for 10 years and help keep our communities moving with investments in roads, bridges, commuter rail and other aspects of transit. Over the next two years alone we would be investing close to $10 billion. That is more than the previous government's entire 13 years in office. This plan's three main components include the community improvement fund, the new building Canada fund and the renewed P3 Canada fund to include in total over $70 billion in federal infrastructure funding, which is just incredible.

The gas tax, a temporary program by the previous government that we have enhanced and made permanent, has a tangible benefit for every community in the country. It means $7.8 million on an annual basis to the city of Barrie.

Let me speak of some other positive aspects of the budget.

In order to promote the culture of giving in Canada, the 2013 economic action plan proudly increases the federal charitable donations tax credit and introduces a new temporary first-time donor super credit for first-time claimants. I am particularly impressed with this aspect of the budget as it creates an appeal for young Canadians to donate to charity. There are many huge capital campaigns in my community where that is exactly what they are working on, finding new first-time donors, whether it is the hospital expansion, the Georgian College expansion, the new Gilda's building or Hospice Simcoe. This is another great initiative that our Minister of Finance has illustrated.

As Barrie is a growing community, one of our ongoing concerns is jobs, and I think this is pretty common across the country. I very much recognize that this is a budget that focuses on jobs.

Economic action plan 2013 continues to support education and training, helping Canadians be prepared for good, high quality jobs. That is why our government is introducing the Canada job grant. This grant aims to transform the labour market by providing funds for the skills training that many Canadians need. In doing so, it encourages employers to recognize these skills and qualifications in order to fill the jobs of Canada's high demand fields.

In building upon this commitment to job growth, economic action plan 2013 also focuses on creating opportunities for apprentices. Canada is currently facing a shortage of skilled tradespeople that is expected to grow in the future as the population ages. Georgian College in Barrie offers 10 valuable apprenticeship programs alone. Our government responded to the shortage of new tradespeople by creating important new opportunities for apprentices. This would be done through the implementation of various grants and tax credits that would open the doors for apprentices at every stage in their career. I am confident this plan would promote accessibility to the training that Canadians need to find employment.

I realize I am running short on time. I just want to highlight two other aspects of the budget, the first being the importance of the Southern Ontario Economic Development Agency. This agency alone has been absolutely fantastic for job creation; IBM located in Barrie because of it. We have seen expansions to Southmedic Inc., the moving of the plant from China to Barrie, the expansion of TNR Doors and the expansion of Wolf Steel Ltd.

In my final 30 seconds there is another aspect of the budget that I want to emphasize. We continue to keep our ironclad investment to universal health care in support for the provinces for health care. We are reaching record levels in funding of the Canada health transfer. It will be nearing $40 billion by the end of the decade, which is just an astronomical commitment to something that Canadians tremendously value.

Overall, this is a terrific budget for Canadians. I applaud our Minister of Finance for such a fine job.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I am somewhat concerned by the bill's attack on workers. His colleague who spoke before him has a plant in his riding. Our agreements with Europe, which are being touted by the government as the next wave of free trade, could directly threaten those workers in the riding of York Centre where Bombardier has a significant workforce. There is a lot of that stuff going on in Europe. If we are making it easier for these things to come from Europe to Canada, that will directly affect those workers. That is part of what our concern about the bill is: it is attacking workers. It is attacking workers both in terms of taxes and in terms of direct attacks on collective bargaining.

Could the member comment on that?

[Patrick Brown, Conservative, Barrie, ON]

Mr. Speaker, I believe this budget supports workers. It supports workers by creating jobs. What workers value and appreciate is an economy that is vibrant with jobs. It would do that through the many investments in apprentices, in innovation and technology. In terms of the connection to free trade, New Democrats have a record of fighting free trade at every stage. In 1988, they said free trade with the U.S. would be horrible. It turns out that it has been a huge net benefit to Canada where we have gained because of that free trade agreement. New Democrats campaigned against NAFTA. It turns out that there has been a huge benefit to Canada.

The NDP does not seem to appreciate the fact that free trade means cheaper goods for consumers and more jobs for Canadians because we have an industrious workforce that is able to compete with the best abroad. I am glad that this is a government that recognizes the value of free trade and how it benefits Canada. History is on our side because every trade agreement that we have signed, and every study complements this, has resulted in a net benefit to Canada.

[Frank Valeriote, Liberal, Guelph, ON]

Mr. Speaker, interestingly, the member does not talk about the taxes that have been raised in this budget. On the eve of the budget Conservatives talked about tariffs being lowered on certain items, therefore bringing down the cost of certain items coming into Canada, which would be a benefit to Canadians. At the same time, without telling us and it became disclosed afterward, they were increasing tariffs on hundreds and hundreds of millions of dollars of other items.

We know that raising a tariff is designed to keep products out of Canada, provided that those products that we are keeping out are made in Canada, but in this case, from toothbrushes to appliances to school supplies and to bikes, those products are not being made in Canada. Those products are still going to come in, the tariff is going to have to be paid, and when I talked to a bicycle retailer in Guelph last week, he told me the price of bikes is going up because of that tariff.

Would the member talk to us about why there is a nefarious effort to raise hundreds of millions of dollars in taxes, borne by the people who can least afford it, including the middle class?

[Patrick Brown, Conservative, Barrie, ON]

Mr. Speaker, this has been the latest argument by the Liberal Party of Canada—that, yes, the Government of Canada should subsidize countries like China and subsidize its goods. Certainly that is not an approach that is in the best interests of Canadians.

In terms of the tariff relief that is offered in the budget, it is a focus on an industry that really does not exist in Canada. That is why we saw the tariff reductions on those goods that represent $76 million, on items like baby clothing and certain sports and athletic equipment. This would result in lower prices for Canadian families on those specific goods.

I would also say about the budget that because we would not be using large sums of money to subsidize competitors in China as the Liberal Party has suggested, we would be able to invest in things that greatly help Canadians. The budget initiative put $3 million into the CNIB to help it have a new digital hub to help Canadians who have lost their vision. This budget has so many little investments like that, which would have an enormous local impact. Overall, this is a very measured and very prudent Canadian budget.

[Olivia Chow, NDP, Trinity—Spadina, ON]

Mr. Speaker, what would this budget do for everyday Canadians?

For families, it would mean dealing with lengthy wait times for surgery or not being able to find a family doctor. For young Canadians, it would mean not being able to find a job or get the training they need to get a job. For commuters, it would mean being stuck in traffic gridlock or on overcrowded buses.

The Conservatives promised to focus on jobs, but instead they are pushing ahead with their job-killing austerity cuts. They are maintaining their fatally flawed temporary foreign workers program that takes jobs away from Canadians and they are hiking taxes on Canadians.

This budget introduced no new measures to create jobs and plays a shell game on infrastructure and skills training funding.

The Conservatives are pushing ahead with $36 billion in reckless cuts to health care funding. For Canadians who cannot afford home care to begin with, this budget would not help them, nor would it improve caregiver support for families who are struggling to provide personal care service for their loved ones.

There are 240,000 more young people unemployed today than before the recession. All this budget does for youth job creation is reannounce funding for internships. This is hardly an adequate strategy for addressing the very real problem of youth unemployment.

The government would scrap the $300 million in skills training funding to the provinces in order to give the money to companies on a matching fund basis. It is a shell game, plain and simple.

Instead of addressing Canada's skilled labour shortage, the government has close to half a million temporary foreign workers in Canada while 1.4 million Canadians are out of work. With this fatally flawed immigration policy, the federal government is undermining the labour market, signalling to companies to hire cheap labour overseas to replace Canadian workers.

Banks and insurance companies do so by outsourcing their IT jobs. Airlines lay off Canadian pilots to hire foreign workers. Mining companies bring in workers from overseas, even though there are unemployed miners in Canada. Construction companies do exactly the same. Such short-sighted immigration policy eliminates all incentive for companies to train and hire talent permanently.

This policy also depresses wages, making it harder for working families to get by. Immigrants are nation builders, not just economic units. Canada is built by immigrants, and the way to deal with a labour shortage is to train our young people and bring in immigrants as permanent residents so they can build a future in Canada, establish a family and set down roots in this country, just as many generations of immigrants did before them.

The Conservatives have failed to deliver a comprehensive strategy to deal with our growing skills gap. They have failed to deliver greater educational opportunities to first nations, newcomers, youth and the aging workforce. This budget would provide no additional funding to close the 30% funding gap for students in first nations communities.

On the pension front, Canadians have to wait two years longer to receive benefits under old age security. They now have to wait until age 67, up from 65.

Investing in health care, skills training and opportunities for youth is crucial to the well-being of ordinary Canadians and our economy. We need to do better.

I am splitting my time with the member for York South—Weston.

This budget is a disappointment, not only for Canadians who want reliable and accessible health care and job opportunities but also for those who rely on a car or on public transit to get to work. Canada's cities continue to be mired in gridlock. We are losing $10 billion in economic productivity every year. The average commute time in the Toronto area is 82 minutes. That is almost as long as a soccer game or preparing and having dinner at home.

Our cities are overwhelmed. They only get 8¢ on every tax dollar collected in Canada and they are experiencing a whopping $171 billion infrastructure deficit. What does the government do about traffic gridlock, the lack of proper transit and crumbling infrastructure? The answer is, not much.

When it comes to federal investments in roads, bridges and public transit, the budget is a disappointment. Instead of giving communities predictable, long-term and non-partisan funding, they get a net cut in infrastructure investments. The Parliamentary Budget Officer has determined that municipalities will be in fact receiving $2 billion less each year in 2014 and 2015. This is the hard truth when we compare current federal funding on infrastructure with what is planned going forward. Ten billion dollars less in 10 years is a lot of buses and streetcars not being purchased or replaced, a lot of roads and bridges not fixed and a lot of commuters waiting for subways and light rail in vain.

A slew of programs got cut completely, such as the green infrastructure fund. The government believes there is no need to invest in green technology and no need to make our communities more energy efficient.

The same goes for small-town Canada. There will be no more designated infrastructure money for small towns or rural communities. They will now have to compete with the big cities over less money.

What a deep disappointment it is. For 2014, grant-based infrastructure spending is going down from $3 billion to $2 billion. The building Canada fund will be 10% of the size it was last year, from $1.2 billion a year to $210 million. Canada's commuters will pay the price for this cut. They will pay for the lack of federal leadership on breaking the gridlock.

However, I am happy that the government also listened somewhat and changed its way, in a small way, after much encouragement from both the New Democrats and the Federation of Canadian Municipalities. For years we have been calling for indexing of the gas tax transfer. This vital fund gives cities across Canada a minimum of stable, long-term funding. However, until now, it shrank every year in real terms because of inflation.

Partially indexing the fund to inflation would give cities slightly more secure funding, at least from this source. However, the municipalities would not be getting a nickel more in the next three years because of a very regressive formula.

Let me provide details. For 2013, 2014 and 2015, the municipalities would continue to get only $2 billion across Canada. It is only in 2016 that the indexing would go up somewhat and an extra $100 million would kick in.

However, indexing is only the first step. Now the government needs to get serious about long-term, predictable funding that closes the gap. We need gas tax fund no. 2.

There are some promising signs in the budget, but we need to make it concrete and deliver results to Canada's unemployed youth. Infrastructure spending has to be tied to apprenticeships and training so that a new generation can get good-paying jobs in skilled trades and we can get young Canadians the training and jobs that they need to succeed while we fix our cities.

Much work needs to be done, but if the government gets serious about fixing Canada's crumbling infrastructure and creating jobs, we can turn the budget from a disappointment to an opportunity.

[Matthew Kellway, NDP, Beaches—East York, ON]

Mr. Speaker, I would like to thank my colleague from Trinity—Spadina for her wonderful speech. She has long been a champion of our cities in this country and a much-needed champion and strong voice for greater urban economies and for fixes for the social issues in our cities.

Her speech comes in the context of a missing $3 billion on the government side, as pointed out by the Auditor General's report. Could the member for Trinity—Spadina comment on how that kind of money could be put to use productively for the cities and the urban economies of our country?

[Olivia Chow, NDP, Trinity—Spadina, ON]

Mr. Speaker, I think the people from the member for Beaches—East York's riding should send out a search party to see if it can find this missing $3 billion, which is a whole lot of money. It can buy a lot of new streetcars and light rapid transit. It can even build subways.

Our mayor in Toronto kept saying that he wanted subways. He does not have the money to build those subways, but if we can find this $3 billion, we can begin to build a good comprehensive public transit system in the GTA area and break the gridlock.

Right now, we do not know where that $3 billion is residing. Perhaps you do, Mr. Speaker.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for her very interesting speech, in which she placed a lot of emphasis on transport. I would also like to thank her for her work on this file.

Could she talk about the new infrastructure program, which sounds to me like a bogus announcement? If we do the math, we see that it does not even live up to the government's promises or any requests that were made. In fact, municipalities will end up with less money than before.

Can the hon. member comment on this new program and its impact? Is it really a nice announcement or is it just a smokescreen?

[Olivia Chow, NDP, Trinity—Spadina, ON]

Mr. Speaker, the Parliamentary Budget Officer issued a report two weeks ago in which she notes that the funding in the so-called new infrastructure fund is actually a reprofiling of old funds that have not been spent because a lot of the infrastructure projects have been very slow in getting approval. That is why the municipalities have not received the funds and why the federal government still has a chunk of cash left.

Instead of just transferring that funding as quickly as possible to the municipalities, what the federal government did was take the old money and say that it was a new infrastructure fund, except it is being spread out over a much longer period of time. As a result, the PBO has said that we would be cut by $2 billion each year. We would have $2 billion less in municipal transfer of federal funds for infrastructure projects than last year. It would be the same in 2014-15 . We would have $2 billion less compared to the year before.

In the meantime, because the so-called gas tax indexing would not kick in until 2015 and this so-called new funding would really not kick in until after 2015, we would be losing $4 billion in total in the next two years.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I am pleased to rise to speak to Bill C-60 today, which is yet another salvo in the Conservative attack on working people in this country.