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.

[Paul Halucha, Director General, Marketplace Framework Policy Branch, Strategic Policy Sector, Department of Industry]

Thank you, Mr. Chair, and members of the committee.

My name is Paul Halucha, and I'm the director general of the marketplace framework policy branch at Industry Canada. I'm here with Matthew Dooley, who is the acting director of the investment, insolvency, competition and corporate policy directorate at Industry Canada.

We are here to speak to Division 6 of Bill C-60, Economic Action Plan 2013 Act, No. 1, which would amend the Investment Canada Act, or ICA, for two reasons. The first is to clarify how proposed investments in Canada by foreign state-owned enterprises, or SOEs, and World Trade Organization, or WTO, investors will be assessed. The second is to allow for the extension, when necessary, of timelines associated with national security reviews.

The proposed amendments to the ICA are being advanced within the broader context of Canada's commitment to an open foreign investment and trade environment. Canada welcomes foreign investment and is an important contributor to economic growth that brings new ideas, capital, and jobs, as well as access to new markets and global supply chains. At the same time, Canada is committed to maintaining marketplace framework laws that are up to date and effective.

Since 2006, in response to the changing economic and global circumstances, the government has advanced several changes to Canada's foreign investment review framework. In 2007 the government introduced guidelines to clarify the application of the net benefit factors in the review of proposed SOE, state-owned enterprise, investments.

In 2009, the government introduced amendments to the ICA. They included a commitment to incrementally increase the net benefit review threshold to $1 billion in enterprise value for WTO investors, transparency provisions and a national security review process.

In 2012 the government introduced additional transparency amendments to the ICA. The government also introduced new enforcement provisions to promote investor compliance with undertakings. Finally, the government published information on the administration of the Investment Canada Act.

These recent changes to the ICA framework have updated Canada's foreign investment review process, the purpose of which is to review significant investments in Canada by non-Canadians to determine whether they are likely to be of net benefit to Canada, and to provide for the review of investments that could be injurious to national security.

Each investment is examined on a case-by-case basis. An investment is either notifiable or reviewable, depending on what size it is, whether it involves a WTO investor, whether it is direct or indirect and whether it could pose a national security threat.

Where an investment is subject to a net benefit review, the Minister of Industry considers the plans, undertakings, and other information submitted by the investor in light of the six net benefit factors listed in section 20 of the Investment Canada Act.

On December 7, 2012, following the approval of two significant foreign investment transactions—CNOOC's acquisition of Nexen and Petronas’ acquisition of Progress Energy—the government provided clarification. The Prime Minister and the Minister of Industry issued statements clarifying the foreign investment review process, with a particular focus on SOEs and potential concerns about their non-commercial objectives.

Statements stress that while foreign investment is crucial to Canada's economic growth and prosperity, the government clarified that going forward, investments by foreign state-owned enterprises resulting in the acquisition of a Canadian oil sands business would be found to be of net benefit only on an exceptional basis, and that SOE transactions will be carefully monitored throughout the Canadian economy.

The government also updated the SOE guidelines to emphasize the importance of good corporate governance, free enterprise principles and industrial efficiency. Another reason for that update was to address concerns surrounding the potential influence of foreign states on commercial activities in Canada.

In addition, the government announced plans to retain the current net benefit review threshold for WTO SOE investors. Meanwhile, the government continued with its plans to progressively increase the net benefit review threshold for private sector WTO investors to $1 billion in enterprise value.

Lastly, the government announced its intention to allow for the extension of the timelines associated with the national security review process. These extensions will provide the government with additional time, if needed, to thoroughly review transactions that are potentially injurious to the security of Canadians.

Division 6 of Bill C-60 includes amendments to the Investment Canada Act needed to implement key components of the government's December 7 announcement. The amendments can be grouped into three principal areas.

First, section 137 establishes distinct net benefit review thresholds for WTO private sector and SOE investors, apart from those in the cultural sector.

With direct reference to the amendments passed by Parliament in 2009, the thresholds for WTO private sector investors will incrementally increase to $1 billion in enterprise value over four years. Related regulatory amendments that define the methodology for enterprise value will be required to bring these changes into force.

The current asset value threshold of $344 million will be maintained for WTO SOE investors. As is currently the case, the threshold will be annually indexed to account for inflation, i.e., changes in nominal GDP.

Second, provisions in clauses 138 to 142 concern timelines associated with national security reviews. Clauses 138 and 139 increase the amount of time the minister has to deliver a final net benefit decision once a national security review process has been concluded from five days to 30 days. Clauses 140 to 142 support the extension of related timelines under the national security review process. The government intends to prescribe the length of some of the related timelines through subsequent amendments to the national security review of investments regulations. The Minister of Industry intends to use these extensions when addressing complex national security issues, which can involve multiple jurisdictions.

Third, provisions in clauses 143 to 145 permit the Minister of Industry to determine or declare that an entity is controlled in fact by a state-owned enterprise. These provisions support the government's commitment to carefully scrutinize SOE activity across the Canadian economy. The control in fact provisions mirror those powers already contained in the cultural and national security sections of the Investment Canada Act. Following parliamentary approval, the government intends to publish the necessary related regulatory amendments required to bring certain changes into force.

We are happy to answer any questions you may have on the proposed amendments.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

If I may make a comment, I find it very unfortunate that this committee will not have the opportunity as duly elected representatives of Canadians to study in depth the portion of Bill C-60 that relates to the Investment Canada Act. We strongly feel it is something that should be done. We are being deprived of the opportunity to do so.

[The Chair, Conservative, David Sweet]

Madam LeBlanc, I need to rule against the admissibility of the motion. I can outline the reasons for that. It goes outside of the mandate of the committee and there are two specific reasons why it does.

First, Bill C-60 was not referred to this committee and certain issues raised in the motion fall outside the committee's mandate as provided by Standing Order 108(2).

As well, the motion suggests the committee call on the House to delegate a power to the Standing Committee on Finance. Committees are creatures of the House and may not go beyond the powers given to them by the House. Only the House has the ability to delegate certain powers to the committees, and refer to them in any other issue for review. That's according to O'Brien and Bosc, pages 962 and 973. Therefore, it's not admissible for a committee to make recommendations regarding the powers of another committee.

Second, it's also suggested the committee recommend to the House that the finance committee be given the power to divide Bill C-60 into several bills. It also recommends that these various bills be referred to various committees. Once again, such recommendation goes well beyond the mandate of this committee. It is up to the House to decide which committee a bill will be referred to.

The House already decided to refer Bill C-60 to the finance committee. Even if the House agreed to give the finance committee the authority to divide the bill, and the committee exercised the authority, the resulting bills would remain before the finance committee. Therefore, this is clearly not an issue that our committee is able to decide on.

For all these reasons, I have to rule against the admissibility of the motion.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

I would like to move the motion that was presented on May 7. I have a copy of the motion in French and in English.

The motion is basically requesting that Bill C-60 be divided into six pieces of legislation, which could then be properly referred to the appropriate committees. I am more interested in the part stating that “Clauses 136 to 154, related to the Investment Canada Act; be allowed to be renamed as Bill C-62”.

You have the whole motion, for which I have already given notice. We strongly feel it is very important that in order for us to properly study the Investment Canada Act it shouldn't be hidden in an omnibus bill such as Bill C-60, but should be divided so that we can properly study it in committee and in depth, and so that as a committee we would be able to make recommendations and report back to the House.

This is the motion I would like to move at this point.

Extention of Sitting Hours

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, I will pick up where I left off. Obviously my hon. friend did not hear this and has not read the motion. I will respond to his macho riposte at the end of his comments by pointing out that the motion would do three things: first, it would provide for us to sit until midnight; second, it would provide a manageable way in which to hold votes in a fashion that works for members of the House; and third, it would provide for concurrence debates to happen and motions to be voted on in a fashion that would not disrupt the work of all the committees of the House and force them to come back here for votes and shut down the work of committees.

Those are the three things the motion would do. In all other respects the Standing Orders remain in place, including the Standing Orders for how long the House sits. Had my friend actually read the motion, he would recognize that the only way in which that Standing Order could then be changed would be by unanimous consent of the House.

The member needs no commitment from me as to how long we will sit. Any member of the House can determine that question, if he or she wishes to adjourn other than the rules contemplate, but the rules are quite clear in what they do contemplate.

As I was saying, the reason for the motion is that Canadians expect their members of Parliament to work hard and get things done on their behalf.

Canadians expect their members of Parliament to work hard and get things done on their behalf.

We agree and that is exactly what has happened here in the House of Commons.

However, do not take my word for it; look at the facts. In this Parliament the government has introduced 76 pieces of legislation. Of those 76, 44 of them are law in one form or another. That makes for a total of 58% of the bills introduced into Parliament. Another 15 of these bills have been passed by either the House or the Senate, bringing the total to 77% of the bills that have been passed by one of the two Houses of Parliament. That is the record of a hard-working, orderly and productive Parliament.

More than just passing bills, the work we are doing here is delivering real results for Canadians. However, there is still yet more work to be done before we return to our constituencies for the summer.

During this time our government's top priority has been jobs, economic growth and long-term prosperity. Through two years and three budgets, we have passed initiatives that have helped to create more than 900,000 net new jobs since the global economic recession. We have achieved this record while also ensuring that Canada's debt burden is the lowest in the G7. We are taking real action to make sure the budget will be balanced by 2015. We have also followed through on numerous longstanding commitments to keep our streets and communities safe, to improve democratic representation in the House of Commons, to provide marketing freedom for western Canadian grain farmers and to eliminate once and for all the wasteful and inefficient long gun registry.

Let me make clear what the motion would and would not do. There has been speculation recently, including from my friend opposite, about the government's objectives and motivations with respect to motion no. 17. As the joke goes: Mr. Freud, sometimes a cigar is just a cigar. So it is with today's motion. There is only one intention motivating the government in proposing the motion: to work hard and deliver real results for Canadians.

The motion would extend the hours the House sits from Monday through Thursday. Instead of finishing the day around 6:30 or 7 p.m., the House would sit instead until midnight.

This would amount to an additional 20 hours each week. Extended sitting hours is something that happens most years in June. Our government just wants to roll up our sleeves and work a little harder, earlier this year. The motion would allow certain votes to be deferred automatically until the end of question period, to allow for all honourable members' schedules to be a little more orderly.

As I said, all other rules would remain. For example, concurrence motions could be moved, debated and voted upon. Today's motion would simply allow committees to continue doing their work instead of returning to the House for motions to return to government business and the like. This process we are putting forward would ensure those committees could do their good work and be productive, while at the same time the House could proceed with its business. Concurrence motions could ultimately be dealt with, debated and voted upon.

We are interested in working hard and being productive and doing so in an orderly fashion, and that is the extent of what the motion would do. I hope that the opposition parties would be willing to support this reasonable plan and let it come forward to a vote. I am sure members opposite would not be interested in going back to their constituents to say they voted against working a little overtime before the House rises for the summer, but the first indication from my friend opposite is that perhaps he is reluctant to do that. Members on this side of the House are willing to work extra hours to deliver real results for Canadians.

Some of those accomplishments we intend to pass are: reforming the temporary foreign workers program to put the interests of Canadians first; implementing tax credits for Canadians who donate to charity; enhancing the tax credit for parents who adopt; and extending the tax credit for Canadians who take care of loved ones in their home.

We also want to support veterans and their families by improving the determination of veterans' benefits.

Of course, these are some of the important measures from this year's budget and are included in Bill C-60, economic action plan 2013 act, no. 1. We are also working toward results for aboriginals by moving closer to equality for Canadians living on reserves through better standards for drinking water and finally giving women on reserves the same rights and protections other Canadian women have had for decades. Bill S-2, family homes on reserves and matrimonial interests or rights act, and Bill S-8, the safe drinking water for first nations act would deliver on those very important objectives.

We will also work to keep our streets and communities safe by making real improvements to the witness protection program through Bill C-51, the safer witnesses act. I think that delivering these results for Canadians is worth working a few extra hours each week.

We will work to bring the Technical Tax Amendments Act, 2012, into law. Bill C-48 would provide certainty to the tax code. It has been over a decade since a bill like this has passed, so it is about time this bill passed. In fact, after question period today, I hope to start third reading of this bill, so perhaps we can get it passed today.

We will also work to bring Bill C-52, the fair rail freight service act, into law. The bill would support economic growth by ensuring that all shippers, including farmers, are treated fairly. Over the next few weeks we will also work, hopefully with the co-operation of the opposition parties, to make progress on other important initiatives.

Bill C-54 will ensure that public safety is the paramount consideration in the decision-making process involving high-risk accused found not criminally responsible on account of mental disorder. This is an issue that unfortunately has affected every region of this country. The very least we can do is let the bill come to a vote and send it to committee where witnesses can testify about the importance of these changes.

Bill C-49 would create the Canadian museum of history, a museum for Canadians that would tell our stories and present our country's treasures to the world.

Bill S-14, the Fighting Foreign Corruption Act, will do just that by further deterring and preventing Canadian companies from bribing foreign public officials. These amendments will help ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade.

Bill S-13, the port state measures agreement implementation act, would implement that 2009 treaty by amending the Coastal Fisheries Protection Act to add prohibitions on importing illegally acquired fish.

Tonight we will be voting on Bill S-9, the Nuclear Terrorism Act, which will allow Canada to honour its commitments under international agreements to tackle nuclear terrorism. Another important treaty—the Convention on Cluster Munitions—can be given effect if we adopt Bill S-10, the Prohibiting Cluster Munitions Act.

We will seek to update and modernize Canada’s network of income tax treaties through Bill S-17, the Tax Conventions Implementation Act, 2013, by giving the force of law to recently signed agreements between Canada and Namibia, Serbia, Poland, Hong Kong, Luxembourg and Switzerland.

Among other economic bills is Bill C-56, the combating counterfeit products act. The bill would protect Canadians from becoming victims of trademark counterfeiting and goods made using inferior or dangerous materials that lead to injury or even death. Proceeds from the sale of counterfeit goods may be used to support organized crime groups. Clearly, this bill is another important one to enact.

Important agreements with the provinces of Nova Scotia and Newfoundland and Labrador would be satisfied through Bill S-15, the expansion and conservation of Canada’s national parks act, which would, among other things, create the Sable Island national park reserve, and Bill C-61, the offshore health and safety act, which would provide clear rules for occupational health and safety of offshore oil and gas installations.

Earlier I referred to the important work of committees. The Standing Joint Committee on the Scrutiny of Regulations inspired Bill S-12, the incorporation by reference in regulations act. We should see that committee's ideas through by passing this bill. Of course, a quick reading of today's order paper would show that there are yet still more bills before the House of Commons for consideration and passage. All of these measures are important and will improve the lives of Canadians. Each merits consideration and hard work on our part.

In my weekly business statement prior to the constituency week, I extended an offer to the House leaders opposite to work with me to schedule and pass some of the other pieces of legislation currently before the House. I hope that they will respond to my request and put forward at our next weekly meeting productive suggestions for getting things done. Passing today's motion would be a major step toward accomplishing that. As I said in my opening comments, Canadians expect each one of us to come to Ottawa to work hard, vote on bills and get things done.

In closing, I commend this motion to the House and encourage all hon. members to vote for this motion, add a few hours to our day, continue the work of our productive, orderly and hard-working Parliament, and deliver real results for Canadians.

[James Laws]

I just want to reiterate that Bill C-60, from what I read, actually extends the ability of the government to offer these developed nations a preferential tariff rate. Deciding which country gets on the list is not, from what I read, part of Bill C-60. It's a separate process. I think it would be logical for list to be reviewed, because it is intended to offer preferential tariffs for specific countries to help them to improve their exports.

I'll reiterate that in terms of meat per se, it doesn't affect us specifically, because Canada already has a zero per cent tariff for pork, for instance, for all the countries in the world. But purely from a development standpoint, I think it is important for Canada to offer to those countries that are truly least developed and developing the chance to be on the list.

Again, my personal opinion is that there should be such an opportunity when, as I'm sure it will, the government convenes a meeting to review who gets on the list or posts information on how a country gets on the list. But referring to some international list would, I think, be a very good solution. The World Bank, for instance, I believe posts a list of what countries are under which classification. That would be the way to go.

[James Laws]

Sure. Thank you very much.

I think it's important for people to realize—and I'm sure they do—that the changes to Bill C-60 actually extend the ability of the government beyond June of next year to offer these preferential tariff rates to developing and least developed countries. I think, as my colleague at the end of the table mentioned, that there are actually two separate issues: who's on the actual list versus what Bill C-60 is doing.

So we do support the Meat Council's standpoint that Canada does offer these preferential tariff rates to these countries. That's important.

The other point is that we also agree that if we are negotiating with a country.... For instance, Canada has a 0% tariff on pork from all countries, so if we go to negotiate with another country, it's very difficult because we're already completely duty free, but we are very.... So that's challenging.

On the beef side, we do have a 26.5% tariff on beef for most countries, except those that we have a free trade agreement with, so we do have something to trade. With the Europeans, we have a tariff to trade off with them. With the Japanese, we have something to trade with them. But we do believe that the list of countries that qualify for the general preferential tariff rate should be reviewed every now and again.

I didn't mention it before, but it's my view that there probably should be some international reference to which developed countries could refer to, a separate list that everyone accepts, such that these countries meet these criteria or not. That's my personal opinion.

It's true that if we are negotiating with another country we want to see also the elimination of all tariffs, all of them, but we believe, though, that it should be done bilaterally with a country or multilaterally through the World Trade Organization. That's important. It is indeed.

[Dr. Karen Cohen]

In relation to Bill C-60, I don't know, given the length of time that it's taken to come to our attention. I want to underscore that it's not just in relation to court proceedings. It also has to do with insurance, because that's how psychological services and care are delivered in this country. We have recently commissioned a business case for how to enhance access to psychological services for Canadians—through a variety of models, whether they be insurance, publicly or privately funded, or employer-supported programs.

[Murray Rankin, NDP, Victoria, BC]

I see.

Dr. Cohen, I appreciated what you were saying and the clarity with which you suggested a specific recommendation at the end of your remarks. Psychological assessments, you say, are a necessary health service, and they are necessary for lawsuits. In your view, there should be an exemption from GST/HST. My question is, has the CPA done any economic analysis of such a change, or are you aware of what the government intended to get from the change they've implemented in Bill C-60?

[Vincent Rigby]

Thank you, Mr. Chair.

What I'd say is that, first of all, the ODAAA is still there. These are two separate acts, obviously, but I also feel that they're quite complementary. I think that's a good thing. Central to the ODAAA is making poverty alleviation the core component of our development efforts. You see in Bill C-60, in the new legislation, very clearly, that poverty reduction and sustainable international development is the key responsibility of the minister.

The second condition in the ODAAA is to make sure the perspectives of the poor are taken into account. A couple of the responsibilities of the minister in the new act are to make sure that he or she fosters relations with other donors and international organizations, and also with developing countries. We're speaking to developing countries and making sure that our plans and activities are aligned with theirs. Alignment is a key aid-effectiveness principle. It is also is enshrined in the new legislation that the minister is responsible for ensuring that our aid and assistance are effective.

Finally, with respect to the third condition in the ODAAA, that our development activities be consistent with human rights. I think the specific reference in the new legislation to “values” speaks to our human rights and to our alignment with human rights. So I think that there is a great deal of complementarity between the two of them. The act is still there, and the minister will take on the responsibilities for that act.

[Nadir Patel, Assistant Deputy Minister and Chief Financial Officer, Corporate Planning, Finance and Human Resources, Department of Foreign Affairs and International Trade]

Thank you very much, Mr. Chair and honourable members.

We have a brief statement and then we'll be happy to take your questions.

On March 21, as part of Canada's economic action plan 2013, the government announced that it would amalgamate the Canadian International Development Agency and the Department of Foreign Affairs and International Trade to create a new department that will deliver enhanced alignment of our foreign, development, trade, and commercial policies and programs. Along with my colleagues from DFAIT and CIDA, I'm pleased to be here with you this morning to study this proposed legislation which, upon receiving royal assent, would create the new Department of Foreign Affairs, International Trade and Development.

It's important to note that this legislation is only the first step in the amalgamation process started by budget 2013. While the legislation makes its way through both chambers, planning is under way on how best to bring together the corporate functions of the two departments without any interruption to business continuity. Indeed, officials from both DFAIT and CIDA are working diligently to ensure that all the required legal, administrative, and financial requirements for the new department are in place in accordance with Treasury Board regulations, when Bill C-60 receives royal assent. While this will not be an overnight process by any means, we will be prepared to hit the ground running.

As outlined in budget 2013, international development, poverty alleviation, and humanitarian assistance will remain central to Canada's foreign policy. Indeed, they will be a core function of the new department and will result in greater overall impact of our efforts.

Poverty alleviation through development assistance and the provision of humanitarian assistance in times of crises are a tangible expression of Canadian values, which the government will continue to advance on the world stage. As we move forward, both the Minister of Foreign Affairs and the Minister of International Cooperation, as is now the case, will play a key role in providing oversight and direction in the planning for and implementation of the new department, with the deputy ministers overseeing the day-to-day aspects of the amalgamation.

To help give shape to the new organization and to ensure this process unfolds as seamlessly and effectively as possible, a dedicated transition team will be put in place to work closely with and provide key guidance to all involved. We hope to have more to say on that in due course.

I will conclude my remarks, though, by indicating that while it will take some months to organize the core functions of the new department and maximize policy coherence and synergies, I can assure members of the committee that we remain committed to ensuring that this process is as seamless as possible, both for employees, and for our operations at home and abroad. Indeed, lessons learned and best practices from previous amalgamations of Canadian departments and from the experience of other countries are being considered. External stakeholders and staff will be consulted along the way. Throughout the transition, we will continue to take advantage of any opportunities to increase the effectiveness and efficiency of programs and operations.

Mr. Chair, I will now turn the floor to my colleague, Vincent Rigby, whom you've introduced as the vice-president of strategic policy and performance at the Canadian International Development Agency, to speak in more detail about the proposed legislation's impact on CIDA.

Mr. Rigby.

[The Chair, Conservative, Ed Komarnicki]

Good morning, everyone. Thank you for being here. We still have one member who hasn't arrived, Rodger Cuzner, but he will probably be here shortly.

I'd like to thank the witnesses that have come here today on relatively short notice.

We're dealing with clauses 161 to 166 of Bill C-60, primarily dealing with changes to the temporary foreign worker program.

We are happy to have with us today Joyce Reynolds, the executive vice-president of government affairs with the Canadian Restaurant and Foodservices Association. It's good to see you here today for sure.

A special welcome to Dan Davidson from the Red Barn in Moosomin, Saskatchewan, a small business. We certainly want to hear from you today. Thank you for coming.

From the Air Canada Pilots Association we have Captain Craig Blandford, president. We're happy to see you here—I see you have others as well—and to hear from you with respect to this legislation.

The process is that each of you has about five to seven minutes to present. Then we'll open it up to questions from each of the parties. We'll alternate party to party. You're the first panel for the first hour. Then we'll suspend briefly to allow our second panel to attend.

You'll be with us from now until about 12 o'clock. We'll start with Ms. Reynolds.

[The Chair, Conservative, Dean Allison]

Pursuant to Standing Order 108(2) we are studying the subject matter of clauses 174 to 199, the Department of Foreign Affairs, Trade and Development Act, of Bill C-60, an act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

I want to welcome our guests here today. From the Department of Foreign Affairs and International Trade, we have Nadir Patel, who has been with us before. It's good to see you again, sir. He is the assistant deputy minister and chief financial officer for corporate planning, finance, and human resources.

Joining him from the Department of Foreign Affairs is Michael Small, the assistant deputy minister of the transition team. Welcome to you, sir, as well.

From the Canadian International Development Agency we have Vincent Rigby, who is the vice-president of strategic policy and performance branch. Welcome to you, sir, as well.

We're going to start with you, Mr. Patel, then we'll move over to Mr. Rigby, and we'll go from there. You have 10 minutes and we turn the floor over to you.

[Yves Savoie, President and Chief Executive Officer, Multiple Sclerosis Society of Canada]

Thank you, Mr. Chair and honourable members.

On behalf of the Multiple Sclerosis Society of Canada, I thank you for the opportunity to speak to Bill C-60.

The society's mission is to take a leading role in efforts to find a cure for this disease and to help people with multiple sclerosis improve their quality of life. I want to point out that we are a member of Imagine Canada.

I plan to speak today about measures in Bill C-60 that strengthen the capacity of the Canadian charitable sector and support families and individuals living with a chronic illness or a disability.

We are encouraged by the recognition in Bill C-60 of the importance of and need to foster and promote a culture of giving in Canada. From 1990, the percentage of tax filers claiming donations has dropped from 29.5% to 23% in 2011. This is alarming. Over this period the number of tax filers has increased by approximately one-third, but the numbers claiming a donation have increased by just 3%. The “Canada Survey of Giving, Volunteering, and Participating” found that a majority of Canadians would give more if better tax incentives were in place. Therefore, the inclusion proposed in the budget of a new temporary first-time donor super credit for first-time claimants of the charitable donations tax credit will encourage young Canadians, in particular, and newcomers to Canada to donate to charity.

So that new credit will help stimulate the development of a new generation of donors. That's an urgent priority, given the reality many charities are facing today.

Furthermore, to build capacity in this charitable sector we recognize, as this committee did in its recent report, “Tax Incentives for Charitable Giving in Canada”, the importance of considering future and additional measures such as the stretch tax credit, which provides incentives for existing donors to give more. The stretch tax credit for charitable giving would increase the federal charitable tax credit for individuals by 10% on all new giving that exceeds previous donation levels. This proposal, I would suggest, must be given priority in planning for next year's budget or as soon as our budget is returned to fiscal balance, and would build very nicely on the super credit introduced this year. They are companion pieces in promoting this culture of giving that I've spoken about before.

Bill C-60 also proposes to expand the GST and HST tax exemption for publicly funded homemaker services to include personal care services such as bathing and feeding provided to individuals who, due to age or living with a disability, require such assistance at home. This is of particular significance to people affected by MS across the country, as MS is a lifelong, often disabling condition affecting all aspects of life for individuals and their families, including employment and financial security. Overwhelmingly, people with disabilities, including those with MS, choose to live at home and in the community, and therefore the exemption is a welcome measure.

We are also pleased to see a commitment to improving labour market opportunities for Canadians living with disabilities. For people living with MS, the impact of illness on employment is far too high. Up to 60% of people with MS leave the workforce entirely between five to 17 years after diagnosis. We're hopeful that the additional research funds to the Social Sciences and Humanities Research Council of Canada and the creation of a Canadian employees' disability forum can help to improve employment rates for persons with disabilities, including those affected by episodic disabilities like MS, disabilities that vary over time.

We also believe that creating a more supportive and flexible sickness benefit in the employment insurance program would support the labour market participation of people with disabilities. We hope to see continuing improvements in the EI regime and also in the RDSP program.

Finally, I would just like to applaud and acknowledge the investment and commitments to fund world-class research and innovation in the Canada Foundation for Innovation and Genome Canada, and the announcement of $15 million in new money that was allocated to the Canadian Institutes of Health Research's strategy for patient-oriented research.

The CIHR's flagship SPOR strategy, as it's known, is critical to harness innovative discoveries and to translate them for the benefit of Canadians.

I want to thank you, once again, for your invitation to testify. I am available to answer your questions.

[James Laws, Executive Director, Canadian Meat Council]

Thank you.

Good morning. My name is Jim Laws, and I'm the executive director of the Canadian Meat Council here in Ottawa.

The meat processing industry is the largest component of Canada's food processing sector, with annual revenues valued at over $24 billion and total employment of over 70,000 people.

Canada's meat processing industry adds value to the live animals born and raised on Canadian farms, provides a critical market outlet, and supports the viability of thousands of livestock farmers. I am pleased to provide three brief comments on Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

First, we are pleased with part 1 of Bill C-60, which provides for a two-year extension of the temporary accelerated capital cost allowance for eligible manufacturing and processing equipment. The changes to the income tax regulations state that a taxpayer who acquires a property after March 18, 2007 and before 2016 that is manufacturing or processing equipment may elect to include the property in class 29 of schedule 2. That effectively allows a classification with a higher percentage depreciation rate. Given the high value of the Canadian dollar, it is critical for our meat processing industry to make capital investments to become more competitive in the long run. We believe that the accelerated capital cost allowance should be made permanent. If that cannot be done, we recommend that the accelerated capital cost allowance be extended for a period of at least five years. This is the typical time it takes to plan, budget, commission, and complete a significant capital project.

Second, in Part 3 of Bill C-60, Canada's meat industry supports the government's proposal to extend the preferential tariff treatments for developing and least-developed countries that was established in 1974. Bill C-60 will change sections 36 and 40 of the Customs Tariff, from an expiry date of June 30, 2014, to December 31, 2024, or on an earlier date that may be fixed by the order of the Governor in Council.

Canada should do this because preferential tariffs are intended to increase the export earnings and promote the economic development of developing and least-developed countries. At the same time, we also support the government's intention to modify the list of beneficiary countries and withdraw from the general preferential tariff eligibility the 72 countries that have achieved significant shifts in income levels and trade competitiveness.

We also believe that the government should put these measures in place on a permanent basis. It should, however, review the list of countries that are classified as either developing or least developed on a much more regular basis. We fully support the government of Canada in its efforts to eliminate tariffs by opening more markets to our goods, especially Canadian meat products, and by diversifying our trade with more reciprocal trade agreements, such as the Canada-European comprehensive economic and trade agreement, and the Trans-Pacific Partnership free trade agreement.

Our third and last comment is that Canada's meat industry is very concerned with Division 9 of Part 3 of Bill C-60 that 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 refusal to process requests for such opinions.

We are also concerned that Bill C-60 authorizes fees to be paid for rights and privileges conferred by means of a work permit, while at the same time exempts those fees from the application of the User Fees Act. Continued access to foreign workers is not only critical to the meat industry, it is of significant benefit to Canadian farmers, workers, consumers, and municipalities. Unfortunately, a combination of misinformation and allegations of potential misuse by a few seem to be putting in serious jeopardy the best interests of the many.

Canadian meat processing companies are always looking to hire Canadians first. The clearly documented reality of our industry is that the jobs available at many locations exceed, by far, the number of Canadians who are able and willing to perform the physically arduous tasks that are required. Many of the unfilled positions would require that Canadians relocate to rural communities.

Unlike some of the stories we've heard in the news, our experience has been that the costs associated with employing temporary foreign workers are substantially greater. Foreign workers are members of the same labour unions and receive the same salaries and benefits as Canadians in Canada's meat industry. In addition, there are additional employer expenditures, such as the return airfare to the home country, worker compensation, housing standards, etc.

Foreign workers perform tasks for which there is an insufficient number of Canadians available. The important contributions they make will allow meat processing plants to remain in operation, thereby supporting jobs for thousands of Canadian workers.