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.

Economic Action Plan 2013 Act, No. 1

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, this budget does nothing for Canada's youth. More needs to be done. Slightly increasing resources for education is not enough. We need to create jobs for youth, for students in the summer, for example. The Conservatives cut funding for that.

I disagree with my colleague, who defends a government that does nothing for Canadian youth.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

Mr. Speaker, I congratulate my hon. colleague on his speech. I was hoping we would talk about the next generation, the generation that we are losing, because this and previous governments have not taken care of them.

Once again, there are no real measures to stimulate job creation and incite young people to join the labour market. There is no extra little boost to help them start their own business or get some post-secondary training.

Could my colleague talk a little more about the measures that are missing from this budget but that could have helped young Canadians find work and contribute to Canada's future?

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, more and more young Canadians want more than anything to gain some work experience. A growing number of youth are having to take unpaid internships or pursue their studies. It makes no sense in a country like Canada.

We need to invest money to encourage the success of Canada's youth. However, that is not a priority to the Conservatives. The Conservatives are completely out of touch with the reality facing young people and their families.

All parties of the House of Commons should work together to examine and present solutions for our youth. However, that is not possible with the Conservatives, since this is not a priority to them.

[Bruce Hyer, Independent, Thunder Bay—Superior North, ON]

Mr. Speaker, we all know that raising payroll taxes is one of the most effective ways to kill jobs. The EI program was projected to be in a surplus even before the Conservatives decided to hike the EI premiums on employers in this budget. Raising premiums might make some sense if there were a real need, but clearly there is not. The unemployment rate is 1.4 million Canadians out of work, with six job seekers for every job.

My question to the hon. member for Kings—Hants is this: would he like to comment on why the Conservatives are raising payroll taxes at a time like this?

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, first of all, it is the Conservatives who have called payroll taxes a “job-killing tax”. In fact, the Minister of Finance is on the record saying that, yet he has increased payroll taxes by at least $600 million per year.

This makes no sense at a time when unemployment rates remain stubbornly high. Unemployment rates are still over a point higher than they were five years ago. Employment rates for young Canadians are five points worse than they were five years ago. It makes no sense to increase payroll taxes during a downturn.

In fact, it was the Conservatives who brought in measures on the governance of the EI system to force the system to balance itself over a shorter time horizon, which created the perverse effect of higher payroll taxes during times of downturn. They have since ignored their own mechanism to do that, but it is bad public policy in any case. It has created a lot of uncertainty and it is killing the capacity for small business people to create jobs in Canada.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I want to congratulate my colleague from Kings—Hants for his very clear presentation on the downsides of budget 2013.

My question is about the increase in taxes on dividends for small and medium-sized businesses.

We know that sometimes dividends are a way that small business people can withdraw funds from their company. Often they use it to reinvest in the company. Small and medium-sized businesses often do not have access to public capital; they are not listed on a stock exchange; so that is necessary for their growth, their ability to hire and their ability to invest in innovations.

What explanation does the member have for why it would make sense to put billions of dollars in extra taxes on dividends for small and medium-sized businesses over the coming five years?

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, my colleague for Vancouver Quadra knows of which speaks, because she is one of the most successful entrepreneurs in this House. She and her husband and family have built a global business in reforestation. It is one of the great examples of green businesses that can employ Canadians and create the green jobs of tomorrow.

The member is absolutely right that the Conservatives' increase of $2.3 billion in taxes on small businesses is going to cost jobs. We cannot take $2.3 billion out of the economy without it affecting jobs in Canada. However, it is part of the Conservatives' continued tax hikes on the job creators of Canada, which are the small businesses that we need to be encouraging to grow and prosper and employ more Canadians. Instead, the Conservatives are taxing the heck out of them.

[Paul Calandra, Conservative, Parliamentary Secretary to the Minister of Canadian Heritage]

Mr. Speaker, I found it odd that the member was talking about the last seven years of the Liberal government, because he spent much of that last seven years telling Canadians how bad a government it was. It was not until he was offered a cabinet position that he had a big conversion and thought maybe it was a better government than he remembered.

My question is this: is it now the position of the Liberal Party that our foreign aid dollars should be redirected from helping vulnerable people around the world to actually helping those economies that compete with our Canadian manufacturers to put our Canadian manufacturers at a disadvantage?

Specifically, there is a manufacturer in my riding that competes directly with a Chinese business and has applauded the changes to foreign aid that we have made, which will allow him to compete, succeed and hire more people.

Is it now the Liberals' position that our foreign aid should be directed to—

[The Deputy Speaker]

The hon. member for Kings—Hants has 30 seconds to respond.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, in December 2003, I joined the Liberals. I was elected as a Liberal for the first time in 2004, after which I was invited to join the cabinet.

The reason I joined the Liberals when the Progressive Conservatives merged with the Canadian Alliance was that, as the Progressive Conservative Party's first openly gay member of Parliament, I did not believe there was a place for me with the social conservatives in the Canadian Alliance. I can say that the fact that they still do not have an openly gay member of their caucus or cabinet validates my decision. I am very proud to have followed my—

[The Deputy Speaker]

Resuming debate, the hon. Minister of Veterans Affairs.

[Steven Blaney, Conservative, Minister of Veterans Affairs and Minister for La Francophonie]

Mr. Speaker, I am pleased to speak this afternoon and share my time with an outstanding person, namely the member for Ottawa—Orléans. He represents a community in the suburbs of the greater Ottawa area, which includes a large French-speaking community, and he serves it very well.

He also serves veterans very well. He is a member of the Royal Canadian Legion. I can always count on him. He always attends events organized for veterans. I want to thank him and tell him that I am extremely proud to be with him in a Conservative caucus that is working every day to improve the quality of life for the entire Canadian population.

I want to say in no uncertain terms that I will be supporting our government’s 2013 economic action plan without reservation, for three very simple reasons.

First, this budget is tailor-made for Canadian families. It is consistent with our policies. For example, we have the lowest taxation rate for families. What we want is for the money to stay in the pockets of our families, so they can use it for their many needs.

We want to be an efficient government that is at their service. That is why we have reduced taxes more than 150 times since 2006. As a result, an average family with four children has $3,200 more in its pockets because it is paying less in taxes. Young families, among others, are also receiving grants to raise their children up to age six. People are also paying less in GST. We are naturally staying the course on the economy, and a return to a balanced budget.

Second, every person elected represents municipalities or cities. I have the privilege of representing a large portion of the city of Lévis, with my colleague the member for Lotbinière—Chutes-de-la-Chaudière. Now, the city of Lévis has significant infrastructure needs in order to support families and economic growth, and to be able to provide a quality of life in a changing environment. The city of Lévis has infrastructure projects, but so does the municipality of Bellechasse and the Des Etchemins regional county municipality. I am also thinking of Beaumont, which is growing very quickly, and Saint-Louis-de-Gonzague. These municipalities have infrastructure projects.

I support the economic action plan because the huge sums involved will enable municipalities to invest in infrastructure not only this year, but in the years to come. More than $50 billion in infrastructure spending is planned. For example, we are making the transfer of the excise tax on gasoline permanent. That will enable our municipalities to invest. We will be partnering with the provincial governments to enable them to generate leverage with the investments they make in infrastructure. This will consolidate the economic prosperity of our country.

Third, I support this budget because it is designed to serve people who have put their lives at risk for our country. They have served under Canada’s flag. Whether they are still in the ranks of the Canadian Armed Forces or have left, they are our veterans and their families.

I would like to take a few moments to show how much this budget respects the government’s responsibility towards its veterans and their families.

In the economic action plan, we have, so to speak, an investment that will represent huge sums in the years ahead for veterans and their families. Among other things, there is one specific measure in the budget: the war veterans’ allowance. For this measure to come into force, however, the economic action plan must be supported. I will talk a little more about it.

What struck me first in the budget with respect to benefits for veterans and their families is the need for support when a veteran dies. The funeral and burial program has been substantially improved with respect to funerals for eligible veterans. We are receiving constructive comments from the veteran community on this matter.

We are also improving our contribution to the important date coming up in 2017, namely the 150th anniversary of our country. That will also be the 100th anniversary of a landmark event in our history: the Battle of Vimy Ridge, where Canadians fought together for the first time. We were victorious, but we suffered substantial losses. That is why it is important that we, as a nation, make sure that people do not forget their sacrifice. That is also why we will be investing $5 million in an interpretation centre at the Canadian National Vimy Memorial.

The measures contained in the economic action plan 2013 take our unprecedented support for Canada's veterans and their families to the next level and demonstrate our continued commitment to veterans. We can see this commitment clearly in our government's response to a Federal Court ruling last spring.

The judge who made the decision did not specify its scope. However, he did indicate that there is no connection with the programs provided by National Defence and Veterans Affairs Canada. That said, under the leadership of our Prime Minister and with the support of the Conservative caucus, our government has decided to go beyond this decision, which involved only National Defence, so that the harmonization of our programs also covers those delivered by Veterans Affairs Canada.

This is an envelope of nearly $1.9 billion. Our government therefore decided immediately to go beyond the court’s decision and to stop deducting the disability pension from Veterans Affairs Canada in calculating the monthly payments as an allowance for lost revenue from the department and as an income support allowance from the Canadian Forces. We were able to do it immediately because that was what we wanted to do.

We wanted to accomplish a third item: the war veterans allowance. To do this, we need regulatory changes. That is why we need support from all parliamentarians for the approval of this measure, which is included in the 2013 economic action plan. Some 2,500 modern-era veterans and survivors should benefit from these changes in the first year alone. We also intend to adjust this veterans allowance in the same way.

Economic action plan 2013 calculates that the total impact of these measures, when we combine National Defence and Veterans Affairs Canada together, would be $1.9 billion over seven years. That is an extra $1.9 billion in the pockets of disabled veterans and men and women in uniform. We think this is the right thing to do and we seek support from the House to do so. This includes an additional $95.4 million to veterans above what was announced previously when calculating the earning loss benefit and the Canadian Forces income support benefit.

I want to reiterate how important it is as a government to support the budget for three reasons.

The first is the major increase in the funeral and burial program for those who need it.

The second is the support for the commemorations that would occur at the Vimy memorial centre, which is important. We actually have the Vimy memorial on our new $20 bill. It is our duty to remember.

The third is the harmonization of all of our programs, especially the veterans war allowance.

That is why I invite members to support the budget not only for all Canadian families, but especially for what it does for our veterans and their families.

[Andrew Cash, NDP, Davenport, ON]

Mr. Speaker, I listened with interest to my colleague's comments. He is urging the opposition to support the bill, yet the Conservatives have once again packed many complex and important issues in the bill to debate before the House. If the member thinks these measures are so important, why has the government crammed them all into this document, not allowing members of Parliament to do the job that Canadians elected us to do, which is to properly scrutinize these measures and come up with the best and most appropriate measures for Canadians?

[Steven Blaney, Conservative, Lévis—Bellechasse, QC]

Mr. Speaker, it is really simple. It is three points that gather to the same reality: economic prosperity and taking care of our families and our veterans. This budget is all about that.

Clearly, this is simple: first, do we support investment in our country’s infrastructure? I think we do. We need it. That is obvious.

Second, do we want to stimulate economic prosperity and job creation by ensuring that our young people have the training they need to secure the jobs that will enable them to respond to the labour shortages we are facing? Yes.

Third, does it make sense to do what is appropriate for veterans, and harmonize all our programs? As a nation, should we not offer a decent funeral and burial to a veteran who has died from service-related injuries? It is the least we can do.

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, it will come as no surprise that, as the Veterans Affairs critic for the Liberal Party, I do not share the minister's view with respect to the impact of this budget on veterans.

With respect to the Last Post Fund, first, the budget trumpets a $65 million increase over the next two years. The minister knows, and I would like him to admit it, that this $65 million would not be spent over the next two years, in spite of the announcement in the budget.

Second, that increase to the Last Post Fund would not help one more veteran. The veterans who qualify would get more money, but not one more veteran would qualify, because the criteria have not changed.

The last thing I will say is that there is much trumpeting over the fact that the government has been beaten into submission by disabled veterans in court and now it is paying up. The exact same day as that lawsuit was launched, there was another lawsuit launched by disabled RCMP veterans. The government has refused to include them in the settlement discussions.

Therefore, does the minister really believe this budget has gone far enough to address the serious problems that exist in the veterans community?