Economic Action Plan 2013 Act, No. 1

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

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

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

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

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

Elsewhere

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

Votes

June 10, 2013 Passed That the Bill be now read a third time and do pass.
June 10, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give third reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, because it: “( a) weakens Canadians' confidence in the work of Parliament, decreases transparency and erodes the democratic process by amending 49 different pieces of legislation, many of which are not related to budgetary measures; ( b) raises taxes on Canadians by introducing tax hikes on credit unions and small businesses; ( c) gives the Treasury Board sweeping powers to interfere in collective bargaining and impose employment conditions on non-union employees; ( d) amends the Investment Canada Act to triple review thresholds and dramatically reduces the number of foreign takeovers subject to review; ( e) proposes an inadequate Band-Aid fix for the flawed approach to labour market opinions in the temporary foreign worker program; ( f) proposes to increase fees for visitor visas for friends and family coming to visit Canada; and ( g) fails to provide substantive measures to create good Canadian jobs and stimulate meaningful long-term growth and recovery.”.
June 4, 2013 Passed That Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 228.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 225.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 213.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 200.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 170.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 162.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 136.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 133.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 125.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 112.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 104.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 12.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 1.
June 3, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
May 7, 2013 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 7, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures (Economic Action Plan 2013 Act, No. 1), because it: ( a) raises taxes on middle class Canadians in order to pay for the Conservatives' wasteful spending; ( b) fails to reverse the government's decision to raise tariffs on items such as baby carriages, bicycles, household water heaters, space heaters, school supplies, ovens, coffee makers, wigs for cancer patients, and blankets; ( c) raises taxes on small business owners by $2.3 billion over the next 5 years, directly hurting 750,000 Canadians and risking Canadian jobs; ( d) raises taxes on credit unions by $75 million per year, which is an attack on rural Canadians and Canada's rural economy; ( e) adds GST/HST to certain healthcare services, including medical work that victims of crime need to establish their case in court; ( f) fails to provide a youth employment strategy to help struggling young Canadians find work; and ( g) ignores the pressing requirements of Aboriginal peoples.”.
May 2, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

May 23rd, 2013 / 9:25 a.m.
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Liberal

Scott Brison Liberal Kings—Hants, NS

Thank you very much.

Yesterday the Minister of Finance appeared before the committee, and I quoted excerpts from the letter we received from Hubert Lacroix, the president of CBC, where essentially he threatens to sue the government if the budget bill, Bill C-60, passes as is.

In that letter, he said that the budget bill “would reduce the independence that is critical to our operation”, and went on to say this:

This could potentially embroil the government, our Corporation, and its unions in litigation, a result that could be avoided with an amendment that protects that independence.

At the committee meeting, I simply asked the minister this:

Would you support an amendment to your budget bill that protects the independence of the CBC and avoids a court battle between the government and the CBC?

The minister responded:

The CBC may think it's a special...part of a crown agency.... This is wrong. All crown agencies have a responsibility through ministers back to Parliament and to the people of Canada.

Would you agree or disagree with the minister that the CBC is distinct from other crown corporations?

May 23rd, 2013 / 9:15 a.m.
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Conservative

Ben Lobb Conservative Huron—Bruce, ON

I have another question, not necessarily directly related to Bill C-60. Could I get your opinion on the changes we made to the veterans independence program over a year ago? There are two semi-annual allocations instead of consistently submitting your invoices for reimbursement.

What are your members comments on it? Do they think that it's a positive change?

May 23rd, 2013 / 9:05 a.m.
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Chris Aylward National Executive Vice-President, Public Service Alliance of Canada

Thank you, Mr. Chair, and thank you, committee members, for inviting me here today to share the views of the Public Service Alliance of Canada on Bill C-60.

I had the pleasure of appearing before this committee last October on the previous budget implementation bill, one that continued cutting important public services that Canadians rely on, such as search and rescue, employment insurance, benefits and services for veterans, food inspection, border security, Canada's national parks, and scientific research, among others.

We asked the government to change the decision on these cuts because we were already seeing the negative impact they were having on Canadian families, communities, and the economy. We wanted the government to be more transparent and to start listening to Canadians before making decisions on the programs and services they rely on. I am disappointed that the latest budget implementation act did not heed these calls for caution. On the contrary, the cuts continue, and with the bill presently before the committee, the government is proposing to extend the damage to public services by adding unnecessary barriers to effective collective bargaining.

Division 17 of the latest budget implementation bill will allow Treasury Board to unilaterally interfere directly in negotiations with crown corporations and their unions. This is not a benign change but one that could have profound consequences for labour relations in crown corporations. The Public Service Alliance of Canada represents over 180,000 members. Of those members, 5,000 work at 19 different crown corporations, including hard-working Canadians at the Bank of Canada, the Canadian Council for the Arts, Canada Post Corporation, and the Royal Canadian Mint, among others.

Injecting a third party into the bargaining process isn't conducive to productive labour relations or collective bargaining. It removes effective control from the parties most directly affected, who know their workplace and the people who work there. The act will require crown corporations to get approval for their bargaining mandate from Treasury Board. It also will give Treasury Board Secretariat the authority to place one of its own employees at the bargaining table to attend and observe, and presumably report back. This will effectively put a chill on any open and frank discussions the employer and the union could have at the table. Cabinet will have the ultimate authority over whether or not to interfere in the bargaining process, which would appear to be a further consolidation of power in the hands of the Prime Minister's Office.

The legislation specifically states that while it can interfere, Treasury Board is not the employer. They will have the power to dictate the mandate for bargaining and can be in the room overseeing the bargaining, but they've washed their hands of any responsibility for having to be accountable for the implementation and responsibilities associated with the agreements or other terms and conditions of employment.

The previous budget implementation bill imposed a similar arrangement with the Canada Revenue Agency, and I speak from personal experience. The CRA and the PSAC component of the union of taxation employees, whose members work at CRA, have had a good working relationship in previous rounds of bargaining. Now, negotiations are dragging on and the absence of a new contract, coupled with the continuing cuts to jobs and services, is creating a toxic environment, one that could be avoided. Employees and the public services they provide to Canadians suffer when the labour relations climate is undermined in this way. It does not lead to more effective delivery of public services, but rather leads to increased stress and conflict in the workplace. It also brings into question the integrity of the bargaining process and raises the question: who are we really bargaining with?

The latest move affects our national museums and the CBC, among others. It could signal an end to the independence of our national cultural institutions. Is this just another way of seeking control over independent institutions that work on behalf of Canadians and not the government of the day?

I'll conclude, Mr. Chair, by saying that this new provision will just compound a worsening problem. I recommend that this committee strike division 17 from the bill and send the government a message that it should honour the collective bargaining rights of the members of the federal public service.

Thank you.

May 23rd, 2013 / 9 a.m.
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Ian Morrison Spokesperson, Friends of Canadian Broadcasting

Mr. Chair, thank you for the opportunity to appear before this committee.

Eighty-one years ago, a Conservative prime minister introduced public broadcasting in Canada. Fifty-nine years later, a Progressive Conservative prime minister updated the Broadcasting Act for the 21st century.

Clauses 228 and 229 of Bill C-60 would apply certain new provisions of the Financial Administration Act to the CBC, giving the cabinet the right to direct the Treasury Board that it must approve CBC's negotiating mandate for any collective agreement and impose any requirements on that mandate. Further, a Treasury Board employee might attend and observe the collective bargaining process. No collective bargaining could be entered into by the CBC without Treasury Board approval.

The principal financial provisions relating to the CBC are set out in the Broadcasting Act, sections 52 to 70. They reflect a decision by Parliament to treat the CBC differently from other crown agencies subject to the FAA. In particular, the FAA's direction and control provisions do not apply to the CBC. In so doing, Parliament followed recommendations by the House of Commons Standing Committee on Communications and Culture, and the government's own policy paper entitled, “Canadian Voices, Canadian Choices: A New Broadcasting Policy for Canada”. The standing committee's report expressed the nub of this issue succinctly. It said:

The CBC should remain exempt from the power of direction provisions which are applicable to other Crown corporations under the Financial Administration Act, and from other provisions which would compromise the “arm's-length” relationship of the CBC with the government.

Part III of the Broadcasting Act sets out the provisions of CBC's mandate within the Canadian broadcasting system. Each of these is outlined on page 2 of the letter of opinion by Brian MacLeod Rogers, one of Canada's most distinguished and renowned media lawyers, who is with me here today. Friends has commissioned this opinion and has tabled the letter with the clerk of your committee this morning.

Sections 35 and 52 of the Broadcasting Act are extremely clear in their direction that the CBC's editorial independence is an imperative that requires CBC to be treated differently from other crown agencies. For example, subsection 35(2) states that all the provisions of part III:

...shall be interpreted and applied so as to protect and enhance the freedom of expression and the journalistic, creative and programming independence enjoyed by the Corporation in the pursuit of its objects and in the exercise of its powers.

The Broadcasting Act's fundamental requirement that CBC must maintain an arm's-length distance from government and be protected from possible governmental interference, as well as that the public should perceive that the CBC is independent, are not reflected in the Bill C-60 proposals. Mr. Rogers' letter of opinion makes clear that there is a conflict between the carefully protected special status of the CBC under the Broadcasting Act, and the proposed provisions of the FAA that seek to impose direct control by Treasury Board on all aspects of CBC's employment relations. Mr. Rogers concludes:

After all, it is all too possible that government's levers of power, particularly its exercise of financial control, could be used in future to shape, diminish or even threaten the CBC's role as public broadcaster. Certainly, that perception by the public may be difficult to avoid, and CBC management and employees may find themselves affected in myriad and subtle ways in order to curry the government's favour or avoid its displeasure.

Mr. Rogers concludes that the inherent conflict between the two statutes will require judicial determination to reconcile the apparent conflict between them.

We recommend that the government steer clear of that morass by removing the CBC from Bill C-60, or failing that, making the clauses referencing the CBC subject to the protection from interference afforded by subsection 35(2) and section 52 of the Broadcasting Act.

Mr. Chair, the clerk has also distributed copies of a letter to the Prime Minister. The letter is signed by a number of Canada's most eminent authorities on democratic journalism and has been copied to the members of your committee. I would like to add that Bernard Derome also signed the letter last night.

Thank you.

May 23rd, 2013 / 8:55 a.m.
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Brock Carlton Chief Executive Officer, Federation of Canadian Municipalities

Thank you, Mr. Chair. It's really a pleasure to be here this morning. We really appreciate the opportunity to present to this committee.

On behalf of some 2,000 members of the Federation of Canadian Municipalities, FCM, I am pleased to present our views on Bill C-60, specifically with regard to division 18 of part 3.

We at FCM believe that there is no surer way to create jobs than by strengthening our economic foundations of tomorrow and investing in municipal infrastructure. When federal, provincial, territorial and local partners all bring money and expertise to the table, no other investment goes as far.

In a world full of economic uncertainty, Canadians want to know that we're taking action to build the conditions for a competitive economy and strong communities. Canadians want to know that all orders of government are working together to make progress on particular priorities: good roads, clean water, and a shorter commute.

The new infrastructure plan announced in budget 2013 is set to renew federal funding, which is expiring in 2014. It will index the gas tax fund to protect its long-term value and provide longer-term funding for cost-shared projects. This is certainly a step in the right direction. By protecting the purchasing power of the gas tax transfer and by extending the program funding for 10 years, this budget advances the principle of long-term, predictable infrastructure funding. FCM is looking forward to getting on with the work to design the new program, to plan it, and to ensure that municipalities do not miss the construction season in 2014 that this government has committed to.

We are particularly pleased with the government's decision to review the effectiveness of its infrastructure plan within the next five years. That will be an opportunity to determine how effective the plan is in addressing its key infrastructure gaps, especially in public transit. It will also be an opportunity to decide what improvements need to be made following the implementation of new federal wastewater regulations.

What the budget did not contain was a definitive road map to erasing infrastructure deficit. FCM would like to work towards a framework for achieving this important goal in the near term. Canada's municipalities own and operate 60% of Canada's core economic infrastructure but collect just 8¢ of every tax dollar paid in Canada. This is one of the reasons why it is essential to ensure new predictable infrastructure investments, such as the indexing of the permanent gas tax fund, which will add $9 billion over 20 years.

I'd just like to give you a clear picture of why we believe investments that are predictable, like the gas tax fund, are so essential to our work and to the country. Investments that are predictable allow companies to hire new workers and plan for new equipment that is needed. They allow business decisions on where to locate or upgrade, based on planned public infrastructure. The gas tax allows for long-term planning with the flexibility for projects to be approved and funding disbursed in the same year. It also allows for the federal government to identify broad investment priorities while municipalities select the projects most needed. In addition, the injection of private investment becomes easier to consider due to the access to a predictable revenue stream. Perhaps most importantly, every region receives its fair share, which means job creation across the country and more balanced economic outcomes.

For Canadian municipalities, challenges will persist and remain a threat to Canada's economy and quality of life. These include the $20 billion price tag for meeting the new federal waste water standards, growing traffic gridlock, and inadequate public transit, as well as the challenge of adapting municipal roads, bridges, and water systems to extreme weather caused by climate change. Meeting these challenges will require further commitment by all orders of government, a framework for cooperation, better infrastructure management through measures such as sustained capacity building, and new partnerships with the private sector where they make sense and where they benefit Canadians.

An essential piece of this collaboration needs to focus on putting an end to off-loading, whether it's the result of legislation shifting unfunded responsibilities onto local governments, or municipalities having to fill the void when another government fails to fulfill its own front-line duties.

We hope that the long-term plan announced in Budget 2013 will provide all levels of government with a practical model of co-operation and that it will help break down the barriers that prevent them from providing taxpayers with the best value.

The infrastructure plan that was announced is an opportunity to expand the partnership in terms of both infrastructure and other challenges. Municipal leaders are ready to do their part.

We are pleased to have this opportunity to talk and look forward to your questions.

May 23rd, 2013 / 8:45 a.m.
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Kenneth V. Georgetti President, Canadian Labour Congress

Thank you, Mr. Rajotte and committee.

On behalf of the 3.3 million members of the Canadian Labour Congress, I want to thank you for the opportunity to present our views on Bill C-60, an act to implement certain provisions of the 2013-14 budget.

The CLC brings together workers from virtually all sectors of the Canadian economy, in all occupations, and in all parts of Canada, including those working for crown corporations. Crown corporations and their employees play a key role in providing Canadians with the services that the private sector is either unable or unwilling to provide. The 48 crown corporations falling under federal jurisdiction operate in many key sectors of the Canadian economy, including transportation, energy, agriculture, fisheries, financial services, culture, and government services. As of December 31, 2012, these entities employed 88,000 workers. Most of them are represented by members of the Canadian Labour Congress.

A crown corporation is a distinct legal entity, having a name, mandate, powers, and objectives set out by legislation or in articles of incorporation under the Canada Business Corporations Act. They are wholly owned by the state, but operate at arm's length from the government. As a result, crown corporations are set up to operate under a “corporate model”, free of “political” interference in their ongoing activities, including labour relations and the collective bargaining process.

The free collective bargaining process outlined in our Canada Labour Code, the code governing labour relations for federal crown corporations, has worked extremely well for decades. This process allows both the employees and the employers to sit down at a bargaining table, look at the needs of both parties within an organization, develop responses that satisfy both parties, and help build harmonious labour relations while achieving labour peace. These relationships have been developed over time between workers and employers in the federal sector. They're good ones, and they're underscored by the fact that almost all crown corporations end up with settlements without a labour dispute between the parties 99.7% of the time.

Unfortunately, the proposed provisions in division 17 of part 3 of Bill C-60, if passed, we fear will achieve exactly the opposite: more labour disputes. Having a third party enforcing a bargaining mandate through its presence at a bargaining table during all stages of negotiations, without an in-depth understanding of the ongoing challenges within the organizations, we say will be problematic. Furthermore, Treasury Board will have a veto on a tentative agreement. That degree of intervention by a third party will jeopardize the free collective bargaining process, allowing a third party to enact and dictate negotiations at all stages.

In fact, we fear it will freeze collective bargaining, because the employee side will wait for a decision of two parties instead of just one. Moreover, the bill specifies that Treasury Board is neither the employer nor an employer rep of the crown corporation, confirming its role as a third party without having any responsibilities over the success or failure of that process. For us, this proposed legislation will have an impact on the crown corporations' employer representatives to freely negotiate the terms and conditions of employment with crown corporation employees during the bargaining process.

The section of the bill that gives cabinet and Treasury Board the ability to impose the terms and conditions of employment on their employees without having to live with the consequences doesn't build the bargaining relationship necessary for ongoing relations after collective bargaining. It attacks the core corporate model of crown corporations by allowing political interference in the ongoing business of arm's-length organizations, such as labour relations.

We fear that this is more an aim or a focus to try to change major terms and conditions of the agreements the crown corporations presently have with their employees, and I'm sure you're going to hear cries from others about the issue of pensions and other benefit programs that sit and reside within those programs.

Anyone who has sat at the bargaining table will know that if a third party's hands are on bargaining, it will freeze the process, and most of the time the employees will wait for two decisions to be made before they go back to their membership for any ratification or support for the process. That in itself, we think, will cause more disputes to happen.

Thank you.

Extension of Sitting HoursGovernment Orders

May 22nd, 2013 / 7:45 p.m.
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NDP

Djaouida Sellah NDP Saint-Bruno—Saint-Hubert, QC

Mr. Speaker, the motion before us is rather bizarre. As many members have said before me, it is quite surprising that the government is using the excuse of urgency.

The government has imposed closure a record 33 times, as well as restrictions on the time allowed to study bills in committee. With Bill C-60, this same government gave notice of a time allocation motion after only one hour of debate. I did say only one hour of debate. This is the same government that introduced monster omnibus bills because it did not want the committees and parliamentarians to properly study their legislative proposals in good faith.

I am not afraid of hard work. I am a doctor by training and I am used to 12-hour and even 24-hour shifts. It is not pleasant, but you get used to it.

My colleagues and I have not hesitated to stand up to the government and to do our jobs, as was the case with legislation to force Canada Post employees back to work and regarding their working conditions. We stood our ground when necessary.

It is obvious that the Conservatives do not have any respect for democratic institutions. I just mentioned the 33 time allocation motions they have imposed since May 2, 2011. What a sorry record.

The omnibus bills, such as Bills C-38 and C-45, are perfect examples of this. The Conservatives have steamrolled their way through adopting measures that Canadians and parliamentarians did not have the chance to scrutinize.

As everyone knows, the appropriate committees were unable to properly study Bill C-38 because it was not split up. That is disrespectful. With Bill C-45, the Conservatives used a different approach in order to curry favour with the public.

However, I can speak from my experience with the Standing Committee on Health. What a joke. The committee's meeting on Bill C-45 started late because of yet another time allocation motion. We then heard from witnesses and had just one round of questions. It is clear to me that the government did not really want the committees to study the impact of the measures. It just wanted to look better without having to do better. That too shows a lack of respect for our democratic institutions.

I also think that what is happening in committee is not right. Many witnesses take the time to come here to speak to subjects or bills that are important to them. Most of the time, however, their contributions are ignored. It is as though the committees were a waste of time. In any event, the outcome is prepared in advance by the Prime Minister's Office and so are many of the Conservative members' statements.

Yesterday, the House Leader of the Official Opposition said that 99.3% of all amendments proposed by the opposition have been rejected by the government.

This implies that every single one of the bills the government introduces is practically perfect.

In 99.3% of the cases, the government outright rejected all of the testimony from witnesses and experts, all of the comments from the public and all of the amendments proposed during the study of the bill. That is simply impossible.

Based on what we heard from witnesses, and after studying some bills in the Standing Committee on Health, I know that some of these bills could have benefited from the proposed amendments.

The NDP is not afraid of work. The problem is that I am not sure the government wants to extend our hours in order to get more work done. It has not guaranteed that we will be here until the summer recess.

I belong to a party that has the word “democratic” in its name, and I take these issues very seriously. The people of Saint-Bruno—Saint-Hubert put their trust in me on May 2, 2011, and I am doing my best to represent them.

Canadians sent us here to ask the necessary questions and to implement the best policies and public practices. We think that the government should take action so that we can do our job properly. The Prime Minister is now playing the victim over what happened in the Senate with senators he himself appointed solely to raise money for the Conservative Party of Canada. The Prime Minister is now playing the victim and wondering how this could have happened.

How could his chief of staff give a $90,000 cheque to a senator the Prime Minister himself appointed? How could his chief of staff—who sat right next to him every single day, who knows the government's deepest, darkest secrets and who the Prime Minister put in charge of major trade files and negotiations with other countries—do that?

Of course, the Prime Minister's hands are clean, and he has nothing to say about this. He believes that his hands are so clean that he is not going to answer any questions about it. He is going to South America for trade talks with countries we already have trade deals with.

Parliament should become less irrelevant. We think it is wrong that it ever became irrelevant. When the government is wrong in its treatment and abuse of Canada's Parliament, that affects all Canadians, whatever their political persuasion. We think what the government is doing is fundamentally wrong and that it needs a little adult supervision from time to time to take some of those suggestions and put a little, as we say, water in its wine. The government needs that more than anything.

It has the majority. This is the irony of what the government is doing. In moving more time allocation than any government in history, shutting down debate more than any government in history and relying on the tactics it is using today, it is showing weakness, not strength.

The Conservatives have the numbers to move legislation through if they saw fit, but they do not. They move legislation, they say it is an agenda and they hold up a raft of bills.

Extension of Sitting HoursGovernment Orders

May 22nd, 2013 / 7:35 p.m.
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NDP

Sadia Groguhé NDP Saint-Lambert, QC

Mr. Speaker, I will share my speaking time with my colleague, the member for Saint-Bruno—Saint-Hubert.

I have been given time to speak to this motion. Once again this week, the government is moving to extend our evening sitting hours significantly. It wants Parliament to sit until midnight.

We have to take a close look at this motion because similar motions in the past have often resulted in a shorter parliamentary calendar.

Since the beginning of this discussion, the Conservatives have continually surprised us with messages utterly at odds with what we are used to hearing.

Just like that, the government wants to extend the time we spend in the House. It claims this approach will enable members to debate bills on the order paper in detail and work hard for Canadians.

How ironic. After constantly curtailing debate ever since the last election, the government now says it wants to extend sitting hours to provide opportunities for debate.

Also ironic is the fact that the government has so much to say about democracy despite its unrelenting and unprecedented contempt for our parliamentary bodies.

Such principles were conspicuous by their absence when the government prorogued Parliament for purely partisan reasons, a move that was bad for Canadians.

Let us not forget that the Prime Minister had absolutely no compunction about letting dozens of bills die on the order paper when he wanted to save his government's hide. How can he say that he wants to let bills move through the normal legislative process when his political agenda has been given top priority in the current legislative cycle?

When a government constantly uses adjournment motions as a tactic to limit participation in and duration of debates, that is not democracy. It is exactly the opposite of what has been moved today.

May 8 was the 33rd time the government brought a vote on a time allocation motion that effectively limits the number of MPs who can speak to a given bill.

It sure looks like the Conservatives have been hell-bent on beating their own record for shutting down debate ever since the beginning of this Parliament.

How can the government say that it wants to promote free debate when it holds the record for cutting debate short? Are we supposed to believe that the government really wants to have it both ways?

Nor is it very democratic when the Prime Minister's Office muzzles its own members in their statements in the House.

Personally, neither I nor my colleagues in the official opposition have to get our speeches approved or adjusted to go with the soup of the day. We speak freely, without constraint from our party, but the government members cannot say the same.

How can the Conservatives stand here today and say that they defend democracy when they put gag orders on their own party's statements and speeches in the House?

Working for Canadians does not mean introducing three mammoth bills like Bills C-38, C-45 and C-60, and then watering down debate, limiting discussion and preventing parliamentarians from learning about what is happening in parliamentary committee, as is the case with a typical bill.

How can the Conservatives claim that they want to let the parliamentary process follow its course when they are the first to short-circuit it by forcing the vote on hundreds of measures without allowing representatives to do their work properly?

Never in the history of this country has a government shown such contempt for our institutions. That is why it is becoming difficult today to understand and believe the lines the Conservatives are trying to feed us.

You cannot on the one hand advocate for extending our sitting time to encourage debate, and on the other hand interfere constantly, as the Conservatives have done with complete impunity.

Therefore, we must question the motives behind the government's desire to extend the sitting hours.

If we look at what has happened in the past, we see that, in general, extending the sitting hours allows the party in power to make the parliamentary calendar shorter. Right now, the Conservatives clearly do not have enough credibility for us to believe their intentions and trust them.

We have to wonder whether the government simply wants to be forgotten as quickly as possible over the summer and to have people forget about all the problems that its wilful blindness caused with the temporary foreign worker program.

Yesterday, the government House leader said that he wanted to accelerate his government's economic measures. If he really cares about the economy, how could he let senators make such extravagant expenditures on the backs of taxpayers? The fact is that the government would rather shirk its responsibilities than face any challenges, answer the official opposition's questions and allow a real debate on issues that are of concern to Canadians. That is the real problem.

If the government wants to fully debate the bills on the order paper, then it should allow the House to sit until June 21, as set out on the calendar. The NDP is prepared to debate. The NDP is prepared to sit until June 21, as scheduled.

We have demonstrated our commitment and dedication to Parliament on numerous occasions. One of our members once even sat for 22 consecutive hours. When the government wanted to lock out Canada Post employees, we were there to debate and to stand up for Canadians.

Every day, we are here to stand up for the interests of Canadians. We routinely propose amendments in order move forward on bills that have sometimes been introduced over a year and a half ago, but these amendments are rejected by a government that wants to promote a political agenda rather than work for Canadians.

First and foremost, we oppose the government's motivations for wanting to impose extended sitting hours. Canadians will not be fooled. They understand the political game that the Conservatives are constantly playing. Canadians know that they cannot trust the Conservatives.

May 22nd, 2013 / 5:35 p.m.
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NDP

Murray Rankin NDP Victoria, BC

If I understand it correctly, under Bill C-60 Treasury Board can change the bargaining mandate of the CBC and it can force the CBC to violate the existing labour law.

If they did so, what recourse would employees have? Under the law, the remedies that used to exist under the labour law will no longer be available. Is it as simple as that?

May 22nd, 2013 / 5:30 p.m.
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President, Syndicat des communications de Radio-Canada, Confédération des syndicats nationaux

Alex Levasseur

Thank you for your question.

In fact, our request is relatively simple: you should have the aspects that concern division 17, which amends the Financial Administration Act, withdrawn from Bill C-60, which you are currently studying. We believe that at the very least the Canadian Broadcasting Corporation should not be affected by this change. I don't think it's appropriate, in the name of journalistic independence, a principle that you know, to allow this type of specific and very detailed intrusion by the executive, in other words by any government, in the running of the CBC. We feel that enough controls have been in place for a long time. Every year, Parliament receives the CBC's updated five-year plan and their annual report. Parliament can question the president and CEO and the chair of the board of directors. Furthermore, it is also Parliament, and especially the government, that appoints the president and CEO of the CBC and the chair of its board of directors.

The CBC is also subject to conditions set out by the Canadian Radio-television and Telecommunications Commission, the CRTC, which issues licences. Moreover, we just had a very long conversation with the CRTC about the renewal of the CBC's licences last November. Its decision should be made very soon.

I therefore think there is a whole monitoring environment that allows Parliament to know in enough detail what is happening in terms of the CBC's major objectives. It is not necessary to go into detail, which is what we have the impression the government currently wants to do.

May 22nd, 2013 / 5:30 p.m.
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NDP

Murray Rankin NDP Victoria, BC

Thank you, Mr. Chair.

First, I would like to thank the witnesses for their presentations.

I will start by asking Mr. Levasseur a question.

You spoke in your presentation about the collective agreements at Radio-Canada and the CBC, and you said they're not just about wages and benefits, but clauses are included that would help ensure journalistic integrity at our largest journalistic organization. You also talked about the code in your presentation.

I understand there are conflict of interest rules and rules to ensure that journalists are protected from political and other interference, so they don't fear retribution in doing their job and reporting the news.

What are your suggestions on how we can amend Bill C-60 to ensure that Radio-Canada and the CBC can have control over these types of clauses in the collective agreements?

May 22nd, 2013 / 5:15 p.m.
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Alex Levasseur President, Syndicat des communications de Radio-Canada, Confédération des syndicats nationaux

Thank you.

Mr. Chairman, members of the committee, thank you for inviting us to have this discussion with you today.

Of course, we will be speaking about division 17, which amends the Financial Administration Act.

The Syndicat des communications de Radio-Canada represents about 1,700 CBC/Société Radio-Canada employees in Quebec and Moncton, in the on-air and production staff categories in all cities. According to our submissions and to our analysis, the application of Bill C-60 contravenes the Broadcasting Act, simply by the fact that the government would be giving itself the power to intervene in production and finance, basically in the routine proceedings of CBC/Radio-Canada. The spirit of the law provides that the CBC must be able to act without interference from the government in order to protect its non-partisanship and freedom of expression, and that it is therefore in the public interest to preserve these basic principles.

CBC/Radio-Canada's Journalistic Standards and Practices state that:

We are independent of all lobbies and of all political and economic influence. We uphold freedom of expression and freedom of the press, the touchstones of a free and democratic society.

Did you know that all CBC/Radio-Canada employees are subject to a code of conduct? Policy 2.2.21 states the following:

This Code is subject to the Broadcasting Act, which protects the CBC/Radio-Canada's ‘journalistic, creative and programming independence in the pursuit of its objects and the exercise of its powers.’ This Code respects CBC/Radio-Canada's arm's length relationship to the government and the independence enjoyed by its employees in the exercise of their duties [...]

We are often told—and I heard it again this afternoon—that the government has the right to monitor how public funds are spent, because it provides funding to the CBC. This is both true and false. The CBC falls under the authority of the Canadian Parliament and not its executive branch. This crown corporation is accountable to Parliament through its five-year action plan and its annual report. This is what is stipulated in the Broadcasting Act. Parliament may also have the president of the board of directors and the chief executive officer report to members of the House. We believe that it is not in the public interest to have the government interfere in the everyday management of CBC/Radio-Canada.

We could look at what has been done at the British Broadcasting Corporation. A royal charter implemented a kind of trust with the following purpose:

As Trustees it is our responsibility to make sure that every pound of the licence fee works as hard as possible. One of the ways we do this is through a programme of in-depth value for money reviews carried out by the National Audit Office and other independent experts. We always publish these reports and explain how we plan to respond to the recommendations made.

The same independence—the concept of being at arm's length—also applies to France Télévisions. Professor Florian Sauvageau of Laval University and his colleague Pierre Trudel from the University of Montreal stated the following:

At first glance, the objective might seem legitimate, but submitting the CBC to the authority of the Treasury Board is a clear sign that it is, at worst, a reprehensible attempt to interfere and, at best, lamentable ignorance of the rules governing public broadcasting, whose founding principle is independence. Without administrative autonomy, it would no longer be an independent public broadcaster, but a state broadcaster, if not a “government” broadcaster.

Thank you.

May 22nd, 2013 / 4:45 p.m.
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Mario Albert President and Chief Executive Officer, Autorité des marchés financiers

Thank you, Mr. Chair.

I would first like to thank the Standing Committee on Finance for inviting the Autorité des marchés financiers to participate in your study of Bill C-60.

This afternoon, I would like to present our position specifically on section 133 of this bill. This section would indefinitely extend the mandate of the Canadian Securities Transition Office.

This office's mission is to promote establishing a national securities regulator in Canada. The office's activities are to come to an end in July. The Autorité des marchés financiers takes a clear stand on extending the Canadian Securities Transition Office mandate, we believe this extension is inappropriate.

In its December 22, 2011 ruling, the Supreme Court of Canada concluded that regulating securities is a matter of provincial jurisdiction according to the Constitution. Consequently, there are simply no grounds for extending the Canadian Securities Transition Office's mandate in order to create a national securities regulator that would involve the federal's government participation.

Beyond the constitutional issues, it is also important to note that currently the provinces are adequately regulating securities. In fact, we are convinced that creating a national securities regulator would be a step backwards from the current system. Creating a national regulator would inevitably standardize regulations, possibly on the basis of the interests of the sizeable market in Ontario.

However, securities markets in Canada are markedly different from one region to another. In order to be efficient and effective, the regulatory framework must acknowledge the differences. The current system does a very good job of this. It allows for a high level of harmonization while taking into account, when necessary, the specific needs of each region.

On the administrative front, over the last few years the provincial regulators have implemented a securities passport system. The system allows securities issuers looking for financing in a number of provinces to do so by communicating solely with the provincial regulatory authority where their headquarters are located. This system is efficient, effective and fast. It is not a costly collage as the promoters of a national regulator would say.

Overall, the provinces provide quality regulations of securities in Canada. A number of international studies confirm this. For example, the World Bank recently ranked Canada 5 out of 175 countries when it comes to protecting investors. The Organization for Economic Co-operation and Development, the OECD, ranked Canada second for its quality of securities regulation. In this context, one may want know why the federal government is seeking to change a system that works well.

That being said, as the Supreme Court of Canada's decision reminds us, the federal government has a role to play in maintaining the stability of the financial system. This role is significant in the current international financial and economic environment. However, rather than try to interfere with securities and taking the risk of provoking more costly and unproductive legal challenges, I humbly suggest that the federal government focus its efforts on strengthening the cooperation between the different financial regulators while respecting their constitutional responsibilities.

The provincial ministers in charge of securities, with the exception of Ontario, recently asked their regulators if they had suggestions on how to improve the governance and operations of the Canadian securities administrators.

May 22nd, 2013 / 4:45 p.m.
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Conservative

The Chair Conservative James Rajotte

Colleagues, could I have you take your seats, please?

I apologize for the vote interruption. We have another vote tonight as well.

We're pleased to continue our study this afternoon of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

We have five witnesses before us.

We now welcome Mario Albert, president and chief executive officer of the Autorité des marchés financiers.

Welcome.

We have the CEO of the Canadian Youth Business Foundation, Julia Deans. Welcome.

We also have with us here Alex Levasseur, president of the Confédération des syndicats nationaux.

Welcome.

From Genome Canada, we have the president and CEO, Mr. Pierre Meulien. Bienvenue.

And from the Nature Conservancy of Canada, we have the president and CEO, Mr. John Lounds. Welcome back to the committee.

You will each have up to five minutes for an opening statement, and then we will have questions from members.

We will start with Mr. Albert.

You have five minutes to give your presentation.

May 22nd, 2013 / 4:30 p.m.
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NDP

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

I have time to ask you one last question, Minister.

I would like to come back to this question of eliminating the tax credit for the worker's fund, Fonds FTQ. This is not in Bill C-60, but it is in the budget. It seems that you have set a deadline of May 31 of this year for consultations with different groups. All the groups that we have heard so far on this question have been opposed to this decision, especially associations representing private venture capital corporations.

The gradual elimination of the tax credit will only start in two years. Why then impose such an early deadline of May 31 for consultations on a subject that is so important and controversial?