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.

[The Chair, Conservative, James Rajotte]

We'll go to the vote on this motion.

(Motion negatived)

Colleagues, you do have two budget requests before you. First of all for this study, for Bill C-60, the amount requested is $26,500. That is approximately $10,000 less than what was initially sent to committee members. It's less than what we had thought, initially.

Are there any questions or concerns? Can I get someone to move this? So moved by Mr. Jean. All in favour?

(Motion agreed to)

Secondly, with respect to our study of Bill C-462, you did raise some concerns about the budget previously. It has been adjusted downward substantially.

Any questions or concerns about this budget? Can I get a mover for this? Mr. Jean again. All in favour?

(Motion agreed to)

Thank you, colleagues.

We will move to our second panel. I want to thank our witnesses for being very patient while we were dealing with the three motions and two budget items.

We have six people to present. First of all, as an individual, we have Mr. George Smith, a fellow and adjunct professor from Queen's University. We have, representing the Association of Municipalities of Ontario, Ms. Judy Dezell. From the Canadian National Institute for the Blind, we have the national director, Ms. Diane Bergeron. From the Canadian Union of Public Employees, we have Mr. Denis Bolduc, general secretary. From the Canadian Urban Transit Association, we have Mr. Patrick Leclerc, and by teleconference, we have Monsieur Florian Sauvageau.

Monsieur Sauvageau, can you hear me?

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

I will be very quick.

We have time to study these issues. We have Bill C-60 before us. Some parts of the bill have been referred to other committees and will be studied very superficially. We will then receive recommendations without having a debate. We are in charge of studying part 1, part 2 and several divisions of part 3. We have been given about two and a half committee meetings to study amendments that will affect at least 15 to 20 pieces of legislation. So don't try to tell me that we have had enough time to discuss this matter. This is a fundamental issue for Canada's financial and monetary system, and it will be taken off the table because the committee is apparently too busy.

These matters will have to be taken seriously at some point. That is why I encourage the government to accept this motion, as well as the following motion. My colleague was perfectly right in pointing out that we do have two available days—June 11 and 13. So we do have some time on the schedule available to discuss some extremely important issues.

Thank you.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Let me address the objections raised by the Conservative members of the committee who have used some interesting words. I believe “spurious” and “fatuous” were two of the adjectives. Back at you, team.

I guess one could make that case with division 17 of part 3 in Bill C-60 where certainly I've had many constituents come to me expressing concern about the independence and the integrity of our crown corporations. Surely, a government that pretends to desire competence and expertise on economic matters would want to be assured that there is complete independence and integrity for our bank, the Bank of Canada. We didn't ask them to include these intrusions on crown corporations in their budget. Of course, it was unanticipated when we set the schedule for the finance committee. We are reacting to the inclusion of these provisions in Bill C-60, their latest omnibus budget bill.

We're also reacting to the fact that there is so little time given to this committee or any other committee to study the provisions of this bill. We believe that this is something that is fundamentally important to the integrity of our economic system and that we should make sure that our Bank of Canada is fully independent. We need to reassure ourselves of that. I would argue that if you look at our schedule carefully, which we have done, we have nothing planned for either June 11 or June 13, and we could in fact very well accommodate a further examination of these very important issues.

I submit that we do take the time and study this carefully because I'm sure Canadians would not be happy if they found that their government had in some way compromised the integrity or independence of their bank, especially during these insecure economic times.

[Mark Adler, Conservative, York Centre, ON]

Thank you, Chair.

It never ceases to amaze me. The NDP comes forward with these spurious motions consistently. They know how tight our timetable is, yet they consistently bring forward these motions.

This one really takes the cake because they're asking us to look at part 3, division 17 of Bill C-60 on the independence of the Bank of Canada when it comes to setting monetary policy and doing economic research. That's exactly what we are studying right now. We're doing it right now.

What they're asking us to do is, yes, study it now, but then study it again. Not only are they asking us to study it for a second time, but the first time around, they didn't even invite any witnesses to speak to their side.

We're going to reject this motion because it's redundant. I would suggest that in bringing motions forward in the future, the NDP take a closer look at what they're proposing because in this instance, we're clearly studying this right now. For the sake of not wasting any more of the committee's time, let's reject this motion and move on, and hope that the NDP does not put forward any kind of fatuous motion in the future. It's ridiculous.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Mr. Chair.

The motions that have been put forward—such as the one introduced earlier—are requests for studies that are important when it comes to potentially significant consequences.

There are two motions. We are talking about the possibility of a government bill affecting or unduly influencing the independence of the Bank of Canada and the policies of the Canada Pension Plan Investment Board. Those are extremely important issues that should also be important to the government, since the independence of those organizations is a crucial parameter in the operations of the government and of those organizations. When important topics are proposed, saying that we are always too busy because we have a hectic schedule indicates a lack of seriousness to my mind.

If we have an important issue pertaining to good governance, we should prioritize it in our discussions. That is why we are introducing these motions. They are not dilatory motions; they are substantial motions that call for important studies and inquiries. So I would like the government to recognize the importance of getting to the bottom of this. We are not asking for eight meetings. We just want to ensure that we will study that specific aspect of Bill C-60. We are not alone in saying that. Many organizations want the same thing, whether we are talking about the CBC—which is currently not even affected by those motions—or the Bank of Canada.

Based on their comments, the economists who have seen what kind of an impact this could have are worried. The comments made by public and economic policy experts indicate that they are also worried. So I think it would be worthwhile for the committee to look into this issue. Since the budget implementation bill was introduced not too long ago, this is our opportunity to put these motions forward.

In short, I hope that the government will be able to see how important and relevant this issue is when it comes to good governance.

[The Chair, Conservative, David Tilson]

The letter reads:

Dear Mr. Rajotte, On behalf of the Standing Committee on Citizenship and Immigration, I would like to thank you for your letter inviting our Committee to consider the subject matter of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, and more specifically the subject matter of clauses 167 to 168 and clauses 170 to 172 of the Bill. After careful consideration of your request, our Committee agreed on May 23, 2013 to undertake a study of the subject matter of the said clauses, and has met in this regard on May 23, 2013 in order to hear from officials from Citizenship and Immigration Canada. Their contribution to this study has been very valuable and informative. After hearing from the witnesses, and considering the provisions contained in clauses 167 to 168 and clauses 170 to 172, the Committee wishes to inform you that it has no amendments or recommendations to forward to the Standing Committee on Finance for its consideration. Thank you for the invitation to contribute to your deliberations and we wish your Committee a productive discussion during the clause-by-clause consideration of Bill C-60.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Thank you.

Our concern, as we have discussed today, is that division 17 of part 3 of Bill C-60 could undermine the independence of the Bank of Canada through the involvement of the Treasury Board. As a fundamental plank in all of our crown corporations, but especially in our monetary policy and our economic research activities, we want to make sure that the independence of the Bank of Canada is assured. We believe that it will be valuable for the finance committee to undertake such a study.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Thank you, Mr. Chair.

I'll read the motion first:

That the Standing Committee on Finance immediately undertake a study on the impact of Part 3 Division 17 of Bill C-60 on the independence of the Bank of Canada with respect to its setting of the nation’s monetary policy and its economic research activities.

In light of the discussion we've had today, Mr. Chair, our concern is that part 3, division 17 of Bill C-60 could undermine the independence of the Bank of Canada—

[Murray Rankin, NDP, Victoria, BC]

A quick question, then, for Mr. Morrison. Here's a scenario. Let's say a CBC journalist is writing a story on the Senate scandal and the Treasury Board orders that the journalist be moved from full-time to part-time. Is that a possible scenario as a consequence of Bill C-60?

[Murray Rankin, NDP, Victoria, BC]

I guess it's either to you or Mr. Georgetti, both of you have enormous experience in collective bargaining. Mr. Georgetti, in particular, used the expression that the impact of Bill C-60's changes would be to “freeze collective bargaining”. I think you indicated there would be two decisions, a Treasury Board decision and the person at the negotiating table, and it might be hard. You have two separate decisions. It might slow things down. You used the term “freeze”.

I'd like to hear both of you talk a little about what the dynamic would be if this change were implemented vis-à-vis crown corporations.

[Murray Rankin, NDP, Victoria, BC]

Thank you.

Thank you for making it here.

I'd first like to ask a question of Mr. Aylward. First of all, I really appreciated your commentary, sir, on the impact of the cuts and your experience with the Canada Revenue Agency, in particular. As critic and as a member of Parliament for Victoria, I have so many people coming into my office daily complaining about the impact of those cuts on their lives. I can only tell you I appreciate very much what you're saying.

I wanted to put a focus on the Bank of Canada employees, one of the groups you represent. I want to give you a scenario and ask if you think this is realistic in light of the proposed amendments in Bill C-60. Let's say a Bank of Canada economist publishes some kind of research paper that concludes that current government fiscal policy is inadequate in some fashion. The Treasury Board orders that her salary be cut in half. Is that the kind of possible arrangement that could be in place, the kinds of changes that could be made as a consequence of Bill C-60, in your view?

[The Chair, Conservative, Greg Kerr]

We're back in session. We're doing the letter in public session. We then have some business looking forward, for which we'll go in camera.

You all have a copy of the letter from the ANAVETS. They could not appear but they did send along their comments. Everybody has a copy of that. If there's anything from that you want reflected in the letter, I'd appreciate you passing it along to us. It's pretty straightforward.

As you know, I'm obligated to write back to the chair of the finance committee with comments or views that came from our session. We're asked to provide comments. I have drafted some the staff prepared. I'd like to read it out. If it's the will of the committee, we will adopt the letter. Certainly, if there are any comments or points to be made, we can do that before we do the adoption.

Dear Mr. Rajotte, On behalf of the Standing Committee on Veterans Affairs, I would like to thank you for your letter inviting our committee to consider the subject matter of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures and more specifically the subject matter of Clauses 156 to 160 (Pension Act and War Veterans Allowance Act) of the Bill. After careful consideration of your request, our Committee agreed on Thursday May 9, 2013 to undertake a study of the subject matter of the said clauses and has met in this regard on Tuesday May 21 and Thursday May 23, 2013 in order to hear from senior officials at the Department of Veterans Affairs as well as several veterans organisations including: Canadian Veterans Advocacy, Air Force Association, the Royal Canadian Legion, ANAVETS, Aboriginal Veterans Autochtones and the Korean Veterans Association. Their contribution to this study has been very valuable and informative. After hearing from the witnesses, and considering the provisions contained in clauses 156-160, the Committee wishes to inform you that it has no amendments or recommendations to forward to the Standing Committee on Finance for its consideration.

That is signed by myself as chair of your committee.

That is the draft letter that we have prepared. It's certainly open to comment and the committee's wish as to what they wish to do with the letter.

Mr. O'Toole.

[John Weston, Conservative, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Thank you.

Again, my thanks for being here this morning.

The summary of the bill states that division 9 of part 3 of Bill C-60 authorizes “the revocation of temporary foreign worker permits, the revocation and suspension of opinions provided by the Department of Human Resources and Skills Development...”.

I'm wondering if any of you can comment on how that relates to the government's express priorities on promoting jobs and stimulating the economy.

[The Chair, Conservative, David Tilson]

Good morning, everyone. This is the Standing Committee on Citizenship and Immigration, meeting no. 79, Tuesday, May 29, 2013. This meeting is televised.

The committee was asked on May 7 by the Standing Committee on Finance to consider the subject matter of clauses 167 to 168 of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures which amend the Immigration and Refugee Protection Act.

Mr. Rajotte, the chairman of the finance committee, has invited this committee to provide recommendations, including any amendments, no later than nine o'clock on May 27. That's next Monday.

Please note that other clauses in division 9 of Bill C-60 will amend the IRPA, but these will be considered by the Standing Committee on Human Resources. Clauses 170 to 172 in division 10 of Bill C-60, which amend the Citizenship Act, are also before this committee.

We have before us members of the department to answer any questions or comments made by members of the committee.

Good morning to all of you.

Ms. Melis, good morning to you. I believe you are going to introduce your colleagues.

You have the floor.

[Ian Morrison]

I just want to say that the government has ample control over the national public broadcaster—I use the word “control” advisedly, or “influence”—through control of the amount of public funds it receives, since something like 70% of its revenue comes from the Canadian taxpayer, and also through total control of appointments of its board of directors and its chief executive officer.

The arm’s-length principle, as I mentioned previously to Ms. Nash, is pretty important. You cannot find an example in another free and democratic country of any proposition like the one that Bill C-60 would have on the CBC. It's just not acceptable.