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.

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.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:40 p.m.


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Conservative

Mike Wallace Conservative Burlington, ON

Mr. Speaker, the question tells a story. Not only is the leader of the Liberal Party over his head, but the whole Liberal Party, at least the political arm, is over its head. This country would drown with them in charge, if they ever came back.

They talk about fairness. How is it fair for companies in China and India to get an advantage over our Canadian companies? We are moving forward. We are making it fair for our companies to compete.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:45 p.m.


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The Deputy Speaker

Order, please. We will now resume debate at a somewhat more civilized level. Resuming debate, the hon. member for Charlesbourg—Haute-Saint-Charles.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:45 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, I am very pleased to be able to comment on this budget. I listened attentively to those who spoke before me. I believe that the debate will generate some passion, as we just heard in a few of the previous comments.

To begin with, I would like to point out that this is the 32nd time that the Conservative government has taken away our right to comment in the House. It is truly a scandal, and it must stop. It is essential that members be allowed to give their speeches, say what they have to say, and speak about their needs and the problems society will have to face if a budget like this one is adopted. Under this budget, the Conservatives are increasing taxes and reducing services.

I would like to comment on a number of things such as family, freedom and poverty. The budget cannot avoid addressing matters like these. I would also like to talk about job creation.

Even though the government quotes figures and tweaks them from one year to the next, they never give us a start date for how these figures were calculated, and the fact remains that jobs are being lost. Jobs have been lost at White Birch in Quebec. I could mention other companies, like Electrolux, where jobs have been lost. Work may be moving from one province to another, but we are after all living in a confederation and jobs need to be created everywhere. The youth unemployment rate has spiked significantly, and this should compel us to do something.

What the government gives with the right hand, it takes away with the left. I believe that many of my colleagues have been able to demonstrate this. On one hand, a fund is established to help young families, and tax credits are made available for artistic activities; but on the other, a surcharge is imposed on products that cross the border, which takes back the money that these families had saved from their reduced taxes. They are therefore disguised tax hikes.

Just now, the member for Ottawa—Orléans took the floor. I wonder whether he lives on the same planet as my colleagues and I. He said that cuts have been made in a compassionate manner.

Cutting jobs and employee salaries is not a very compassionate thing to do. I will explain how it was done. Those whose jobs were being cut received a letter telling them that jobs would be eliminated in their department.

They were told that X number of positions would be eliminated, but were not immediately told which jobs would be eliminated. Is that what the Conservatives mean by "being compassionate"? Sometimes, employees were asked to choose from among the duties and work being done, what positions were less useful than others. Is that what they call "being compassionate"? That is not what I would call it. There is one small restriction.

This budget is a direct attack on labour funds. In Quebec, the CSN and the FTQ have labour funds. Not so long ago, I sent my constituents a ten-percenter and the highest response rate I ever received had to do with labour funds and the FTQ. These funds allow people to deduct 15% extra from their taxes to make some savings. What the right hand gave away, the left took back, yet again. This additional deduction to which these people were entitled has been taken away.

Who contributed to these funds? They were often people whose wages were very low. It enabled them to save about $1000 a year. Year after year, they would try to save an extra $1,000. Then, by retirement, they would have saved a total of roughly $10,000, $15,000 or $20,000. They saved their entire lives.

Before being a member of Parliament, I worked in an organization. I met people who were earning $30,000 or less per year. In spite of this, they managed to put a little money aside to invest in this terrific fund.

The 15% tax break for the labour fund contributions encouraged them to save their pennies. These are the people who are being attacked. The labour funds, whether the CSN’s or the FTQ’s, are being attacked.

Labour force training is also being attacked. We succeeded in getting something into the budget that says that a company can now deduct $5,000 for training if it invests that much in training.

What companies are we talking about?

In Quebec, there is the 1% labour force training program. Now none of the small companies will be able to make that deduction because once again, this budget helps the big players, but not the small ones. Small businesses will not be able to invest $5,000 in labour force training to match what the government might give. This skews the debate. The companies lose out and labour force training will suffer. Workers, individuals and competitiveness, when all is said and done, will lose out.

I do not know whether the government thought about this aspect, but it is essential; the less training one has, the less competitive one is and the less competitive, the lower the sales, the lower demand for the product and you begin to go under. Our leader has pointed out that in Canada, small businesses and manufacturers have lost a great deal in recent years.

For 2013 and 2014, the budget forecast a deficit of approximately $16.5 billion. In reality, this will be $18.7 billion. Despite all these cuts, Canada's deficit is growing. People are being fooled when they tighten their belts and deprive themselves of everything. It might be worth asking which people are really depriving themselves.

Everything is really upside-down. They are going to pick the pockets of the smallest companies to pay for the majority, rather than the other way around. What are taxes for? Why were they created? Taxes are collected to redistribute wealth through infrastructure, worker training and various other mechanisms. When roads are built, a group of individuals pays and it is all redistributed.

Clearly, the company for which a four-lane road is built does not pay for it. Nor does it pay for the time its trucks spend on the road to deliver a product from point A to point B. People pay for it through taxes. They pay out of their pockets, and they are going to pay more and more. The sales tax was lowered, but the prices of products entering the country are going up.

I have been putting together a file for a year now. This bill follows on from two others, Bill C-38, which was introduced a year ago in the spring, and Bill C-45, which was next in line. In the latter, employment insurance was hard hit. The bill tried to define suitable employment and discarded the previous definition. What we have is the party in power deciding what is suitable for them.

Mr. Speaker, when you retire one day, we will decide for you what you are going to do. You will be able to do something other than what you are doing now. In fact, you will be able to do many things, because you are highly skilled in several areas. Others will therefore decide what is suitable for you.

Some extremely strange things have happened: people who worked in agriculture, for example, being offered jobs washing dishes in restaurants. I think everyone is aware of these strange goings-on.

I would like to talk about a letter I received from the elected representatives in the north shore region, who tell us that the employment insurance reform—and hence the consequences of these notorious mammoth budgets—runs counter to the interests of north shore workers. It will completely undermine the economy.

People remember what the government said during the last election: “power to the regions”, yet for now, the regions have been totally abandoned, and our elected representatives are saying so.

Next week, people from Prince Edward Island, including the minister, will be coming here to speak to us about employment insurance. The people of Prince Edward Island and the Atlantic provinces are being thoroughly swindled. Seventy percent of all seasonal workers are in the Atlantic provinces.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:55 p.m.


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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, it may have been a translation issue, but I just want to clarify. I thought I heard my colleague say that the deficit continues to grow with the 2013-14 budget. On page 12 of the budget, it is clear that the deficit in 2012-13 is $25.9 billion and in 2013-14 it is $18.7 billion. My math indicates that this is a clear reduction.

I wonder if my colleague would clarify what her intent was in saying that the deficit is growing, when in fact, the deficit is going down dramatically.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:55 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, the figures I have before me clearly indicate $264 billion in revenue and $283 billion in expenditures, which means a deficit of about $19 billion.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:55 p.m.


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NDP

Jean-François Larose NDP Repentigny, QC

Mr. Speaker, I wish to thank my hon. colleague for her excellent presentation.

She talked about how this government seems to be attacking workers. In my riding, Electrolux workers are losing their jobs, while the government does nothing to help. Very little is being done, despite the promise made by the Minister of Human Resources and Skills Development in question period. People are still waiting.

It seems to me that this government is doing whatever it takes to eliminate jobs with excellent working conditions, and even precarious jobs—because middle-class Canadians are having a hard time making ends meet—in order to create a class of accessible jobs.

Is the goal here to help the multinationals that want to come and take over our huge country, or to support the multinationals that are already here, who seem to be in bed with the Conservatives? This has been proven over and over. The Conservatives are very proud to say they created new jobs, but all it is is cheap labour.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:55 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, I did not want to name Electrolux earlier, because I did not know whether it was official. Indeed, this is another company whose head office is moving to the U.S. As a result, we will lose nearly 2,000 jobs if I am not mistaken. From what we saw, absolutely nothing was done about it.

Conversely, the Conservatives will let in a company like Target, which will hire people at minimum wage. The Conservatives welcome it with open arms, even though it will mean competition in our own market.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 5:55 p.m.


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NDP

François Choquette NDP Drummond, QC

Mr. Speaker, I thank my hon. colleague for her excellent speech. I listened to her carefully and she was right about workers, the middle class and families being neglected in this budget. She also talked about labour-sponsored funds.

In my riding of Drummond, people are offended, shocked and angry that the labour-sponsored funds tax credit is being eliminated. The same goes for employment insurance. Nothing is being done to fix the employment insurance reform. This past weekend, the whole team was in Montreal again to support our constituents and chambers of commerce, which are telling us that this makes no sense.

Just now, my hon. colleague, who is the chair of the Standing Committee on Environment and Sustainable Development, did not ask a single question about the environment. Let me tell you why. It is because there is nothing in the budget for the environment. That is why he did not ask any questions about the environment, even though he is the chair of the Standing Committee on Environment and Sustainable Development. It is truly deplorable. He is ready to stand up, but unfortunately it is not his turn.

Can my hon. colleague tell me what could have been done so much better to meet the needs of our families?

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 6 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, there is currently an originating motion to deem unconstitutional that famous manoeuvre that allowed the government to take $57 billion from the employment insurance fund, whether under Paul Martin or Mulroney. Maybe the first thing we should do is think about giving the money back to the workers.

In addition, they now continue to help themselves to $1.3 billion or so. That means that they continue to take money out of workers' and employers' pockets for the simple reason that the ceiling has been raised and the employee contribution rate has gone up by 5¢ per $100.

Economic Action Plan 2013 Act, No. 1Government Orders

May 2nd, 2013 / 6 p.m.


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The Deputy Speaker

It being 6 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

The House resumed from May 2 consideration of the motion that Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, be read the second time and referred to a committee, and of the amendment.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:05 a.m.


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Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, I am very pleased to rise today to speak about Canada's economic action plan 2013, which would continue to deliver results for Canadians, keep us in the lead among G7 nations and keep Canada on track to return to balanced budgets by 2015.

One of the ways that we would accomplish that is by creating jobs by building equipment for the Canadian Armed Forces in Canada. We owe it to our men and women in uniform to give them the best equipment possible to fulfill the demands we place on them and to bring them home safely. We owe it to Canadian industry to give it the opportunity to play a major role in that process and develop a stronger manufacturing base with the capacity for leading-edge technology and innovation. Finally, we owe it to Canadian taxpayers to ensure that their dollars are spent for the maximum benefit of Canada in all respects.

Building on the success of the national shipbuilding procurement strategy, the government would better ensure that purchases of military equipment create economic opportunities for Canadians by developing key domestic investment capabilities to help guide procurement, by promoting export opportunities and by reforming the current procurement process to improve outcomes.

The recently released Jenkins Report frames the unique once-in-a-century opportunity presented by major investments in Canada's Armed Forces to create jobs and economic growth, while enhancing Canada's ability to defend its sovereignty.

Many highly industrialized countries have clear strategies to promote their defence sectors, based on a recognition that it is in the national interests to have a strong domestic defence-related manufacturing base that produces leading-edge equipment. For Canada, such a strategy can generate high value exports and support high paying jobs for Canadians.

A key opportunity for doing so is by targeting the $49 billion in industrial and regional benefits obligations that foreign companies are expected to accumulate by 2027 to support high skill and high value opportunities and jobs in Canadian industries. These opportunities would be selected based on the needs of the Canadian Armed Forces, the potential to access global markets and the potential for increasing investments in Canadian research and innovation. Our government would work with industry sectors and stakeholders, such as the Canadian Association of Defence and Security Industries, to identify areas of Canadian competitiveness and trends in global supply and demand in defence-related industries.

Further, we would ensure that major procurements include a plan for participation by Canadian industry prior to approving the project. We would develop a refined set of key industrial capabilities for use over the long term, and examine how existing policies and programs can be tailored to support a government-wide strategy, while remaining cognizant of Canada's international trade obligations.

In parallel, the government would reform the current procurement process to improve outcomes. This would include thorough and rigorous options analyses, a challenge function for military requirements, early and frequent industry involvement, and strengthened oversight with the use of third-party expertise.

Canada has many success stories to tell in using the purchase of equipment for the Canadian Armed Forces to create jobs and economic growth in Canada.

CAP Inc. sells its products and services to over 190 countries and employs more than 8,000 people. CAE is the world leader in simulation equipment, commercial aviation training, helicopter aviation training, military virtual air training and health care simulation technology. I had the pleasure of using CAE products for many years in one of my previous lives and I can attest to their excellence.

General Dynamics Land Systems Canada , or GDLS, based in London and Edmonton, is a world leader in the design, manufacture and support of wheeled light armoured vehicles, or LAVs. It is a multi-billion dollar firm with over 2,300 highly skilled employees. As a result of procurements and related support from the government, GDLS Canada has generated direct sales of light armoured vehicles in excess of $17 billion over the past 35 years. It has created approximately 500,000 person years of employment in Canada and established a supplier base of over 400 Canadian companies, located in every province.

Recently, I had the pleasure of attending the rollout in Edmonton of the first of the LAV III upgrades. Having ridden around Afghanistan a few times in its predecessor, I know that the upgrades will be welcomed by our soldiers.

The $35 billion national shipbuilding procurement strategy, announced in 2010, means jobs and economic growth for the country, stability for the industry and vital equipment for the men and women of the Royal Canadian Navy and Canadian Coast Guard. Over the next 30 years, it is estimated that 15,000 direct and indirect jobs may result from national shipbuilding procurement strategy projects, including skilled work in a variety of sectors.

Through this process, our government is helping small and medium-sized enterprises to participate in global supply chains that will result from these projects, creating growth and jobs throughout the country. A good example of that would be the supply of landing gear assemblies on about 4,000 F-35s by Héroux-Devtek of Longueuil, Quebec.

The Government of Canada acts as a first user of pre-commercial innovations through the Canadian innovation commercialization program, or CICP. Through CICP, federal departments test prototypes developed by Canadian businesses and provide feedback to help improve these innovative products before they are marketed to customers. This program is particularly useful for small and medium-sized enterprises, which often find it difficult to find the resources to bring innovative products to market.

Participating companies have been strongly supportive of CICP since it was launched in 2010, and our government will officially launch the military component of the program in the near future.

Canada's aerospace sector is a global technology leader and a major source of high quality jobs, directly employing 66,000 people across Canada. It is among the most research-intensive industries in the country.

The hon. David Emerson, head of the Aerospace Review, delivered his final report to the Minister of Industry on November 29, 2012. The report detailed a series of recommendations aimed at strengthening the aerospace and space sectors in Canada. Our government is carefully reviewing the advice of the Aerospace Review and will take action over the coming year to improve the focus and coordination of programs and practices of relevance to the aerospace and space sectors.

The largest aerospace-specific innovation support program is the permanent strategic aerospace and defence initiative, or SADI, which provides repayable contributions to support strategic innovative projects by aerospace, space, defence and security companies. Since its launch in 2007, SADI has authorized $826 million in assistance to 25 projects, of which $411 million has been disbursed to date. Two examples of Alberta-based companies supported by SADI are SemBioSys Genetics Inc. and AeroMechanical Services Ltd.

We will continue to provide stable funding for SADI, close to $1 billion over five years, and will review the programs, administration and operation over the coming year to ensure that it continues to respond to the needs of this dynamic sector.

Economic action plan 2013 would provide $110 million over four years beginning in 2014-15, and $55 million per year on an ongoing basis thereafter for the creation of an aerospace technology demonstration program. This program would support large-scale technology projects that exhibit strong commercialization potential and promote collaboration among industries, including simulation trials, systems integration testing and refinement activities. A component of the program would support research costs at post-secondary institutions that serve wider industry needs. As recommended by the Aerospace Review, a portion of these resources, rising to $20 million annually, would be reallocated from the strategic aerospace and defence initiative.

We will also launch consultations in the coming months regarding the creation of a national aerospace research and technology network to be led by Industry Canada in collaboration with relevant stakeholders. The network will engage stakeholders and industry, post-secondary institutions and government laboratories to identify strategic technology areas and encourage collaboration in research and development.

The motto of the Royal Canadian Air Force is per ardua ad astra, “through adversity to the stars”. It is not just within our atmosphere that economic action plan 2013 will have effect.

Canada's space industry is a sophisticated research and innovation leader, successfully turning investments in knowledge into a global advantage in several niche areas, including robotics and satellite communications. Canada's space capabilities will be showcased through the ongoing development of the RADARSAT Constellation Mission for which a $706-million satellite construction contract has recently been signed with MacDonald, Dettwiler and Associates.

Canada's leading role in space is also demonstrated through continued participation in the International Space Station mission and the command of Expedition 35 of the station by Canadian astronaut, Chris Hadfield. Commander Hadfield has made all Canadians proud and I have been privileged to fly CF-18s with him in the past in Cold Lake and Bagotville.

The Aerospace Review has made important recommendations with respect to policies and programs specific to the space sector, and our government is currently examining these recommendations carefully to determine the way ahead.

Canada's high-tech defence-related aerospace and space industries have a bright future. Our government will continue to encourage growth of Canadian capacity to lead the world. Economic action plan 2013 takes several steps that would enhance that process. I encourage all members of this House, indeed, all Canadians to get on board, work hard and enjoy the ride.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:10 a.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I would like to thank my colleague for his speech.

I would like to speak to part 3, division 6 of Bill C-60, specifically clauses 136 and 137, which provide some definitions relating to state-owned enterprises. The definitions are set out there, and that is of some interest.

Unfortunately, during the information session on Monday night, officials seemed to be telling us that, despite the definition, all purchases of Canadian businesses by state-owned enterprises would be subject to the definitions in clause 137, meaning that in a few years, the value of transactions will be $1 billion or more.

How does the hon. member think this could protect us from interference from foreign governments, considering that we have had some specific cases of concern that had to do with control of our natural resources?

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May 3rd, 2013 / 10:10 a.m.


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Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, my colleague specifically mentioned the resource industry. Canada is a leader in the resource industry. We have tremendous capacity for foreign investment in Canada to help us develop that industry. We are always going to do that with the best interests of Canadians in mind first, but that does not mean....We have to operate with foreign investment; it has helped to develop our resources to this point and it will help in the future. We have to deal with people who can be challenging from time and time and that is why we put measures in place to protect Canadians. It is not going to be a one-way negotiation. It will always be two-way.

Foreigners have to benefit as well from doing business in Canada, and we understand that, just like Canadians have to benefit from doing business in other countries. We do not live in a bubble. We have to work within the environment of international co-operation and international law. We will put in place, as we already have put in place, measures that will protect Canadian investors. At the same time we have to work in the much broader world market.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:10 a.m.


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Oshawa Ontario

Conservative

Colin Carrie ConservativeParliamentary Secretary to the Minister of Health

Mr. Speaker, I appreciate my colleague's perspective and his speech. As everyone knows, he has served Canada nobly and when he brings his comments forward he always gives an overview of the entire country.

I want to ask him about the interconnectivity of Canada's economy, especially for manufacturing. As he knows, I come from Oshawa. Oshawa is a city that is very dependent on manufacturing. He mentioned the SADI program and how that program helps manufacturers in the aerospace industry. There are some excellent things in the budget that would really help Canadian manufacturers.

The member has a lot of knowledge about the energy sector and the challenges it is facing in his province. However, developing energy sector resources creates a great spinoff for places in my community and in Ontario as a whole with respect to manufacturing.

Could he contrast our government's approach to helping manufacturers and creating jobs to the NDP's approach of going to another country and lobbying against Canadian jobs and Canadian industries? If he could give a perspective of the two different approaches to the House today that would be wonderful.