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 3rd, 2013 / 10:15 a.m.


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Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, it is quite true that when it comes to doing business, we take a different approach than the opposition, whether it is in Canada or abroad. Frankly, its approach of leaving the country and trashing our industries is quite shameful.

There is no question that the resource industry in Alberta is a key driver of the Canadian economy. It sure as heck is not a disease of any particular nationality. It is the driver of the Canadian economy. A job in the oil sands in Alberta means a job in manufacturing in Ontario or Quebec or somewhere else in the country. A very high percentage of Ontario's manufacturing process is tied to the oil sands. If the oil sands were ever shut down manufacturers in Ontario would shut down, the steel industry would shut down. I know some members across the way would like the oil sands to shut down, and they can take that view, but that would be the result. They lose perspective entirely on the interconnectivity of all businesses in Canada.

A lot of it is geographical. Alberta has an oil industry because of geography. Quebec has hydro power because of geography. B.C. has a forest industry because of geography. It is the sum of the parts that makes Canada strong, not focusing on one at the expense of the other.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:15 a.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, it is a great pleasure for me to be able to speak to Bill C-60, the budget implementation bill, so that I can make some comments.

I will say right off the bat that I will focus on one specific part of the bill, which reads as follows:

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.

As a result, other provisions and other legislation may also be amended, because the consequences are far-reaching.

I will not hide the fact that this is quite a concern. I will use my experience on the Standing Committee on Justice and Human Rights to speak to the principle of the appearance of justice, which is so important in our legal system. It lets Canadians trust that institution and be confident that, by using all the recourse available to them, they will be able to get a ruling that is consistent with the law and with justice.

There is also a balance to be achieved, and there are very important principles to uphold when it comes to negotiations. There really needs to be a clear balance, and real dialogue and discussion among the parties involved in the negotiations. There is no denying that this is a sensitive issue and something that is difficult to achieve. Division 17 of part 3 of Bill C-60 poses a direct threat to this process.

This is a very serious problem. I feel, and I am sure that all of my colleagues do as well, that this aspect alone is reason enough to oppose this bill.

I will now talk about my personal experience. After all, my Conservative colleagues love to share their life experiences about much bigger issues. I will talk about the experience my late father had as a member of Local 9 of FTQ Construction's Fraternité nationale des charpentiers-menuisiers.

My father worked for 12 years as a union activist, trying to convince the guys to come to the union's general meetings. At the time, most construction workers were men. He told them every time that it was important for them to participate. Indeed, their participation was very important because it made the decisions taken at those meetings much more credible.

During the second half of his career as a carpenter-joiner, my father spent most of his time as a foreman or superintendent responsible for job sites. He was around in the 1960s, a difficult period for the construction industry when there was much less protection and safety was a major issue. As a manager, he was very concerned about the safety of the people he supervised.

This week, there have been some very hot days where people could easily go without a jacket. That is understandable, but imagine how unpleasant it must be to have to wear a hard hat on a work site on a hot summer's day. Unfortunately, hard hats hold in a lot of heat.

My father's approach was very simple. He asked the worker to put on his hard hat because it was important. If the worker protested because it was too hot out, my father insisted. He would walk away once the worker had put on his hard hat. However, if my father came back that same day to find that the same worker had once again taken off his hard hat and left it on a wall or somewhere else, my father would get in that worker's face. He would get really angry because he was responsible for the job site and the physical safety of the worker who, unfortunately, was unintentionally putting his life and health at risk.

That is one of the union movement's greatest achievements. Recently, we have again been hearing about how workplace safety is still a major problem even though there has been significant progress. A single worker has very little power to stand up for his rights against a huge organization, particularly if the management or the owner is firmly opposed to that. There must be a balance of power to deal with these issues.

Also quite recently, there have been many examples of people getting together to achieve a common goal. I am thinking of chambers of commerce and groups created in response to our campaign against excessive credit card fees. There are groups of restaurant owners and corner store owners. National groups bring thousands of small businesspeople together. Getting together for these reasons is a very noble thing. There are also seniors' groups.

I am a Knight of Columbus, a member of the La Nativité council in Beauport. The K of C is yet another excellent association dedicated to reaching out to others and helping the less fortunate. Churches of all faiths bring people together for spiritual and community reasons. That, too, is noble.

In the business community, people get together to form corporations to launch for-profit and non-profit businesses, companies with share capital or investors who may decide to risk their capital on a reasonably safe venture that could return a lot. That is yet another example of a noble reason for people to get together.

Why is the government, why are Conservative elected representatives, so intent on stigmatizing perfectly legitimate groups, such as the union movement? That makes absolutely no sense. They have provided no justification here in the House or elsewhere for their visceral hatred of the union movement and their desire to work against it. The government is certainly right to address problems. There have been very disappointing examples of obvious wrongdoing in some unions. However, does that merit such an over-the-top, unreasonable attempt to crush the union movement? Absolutely not.

While the government is at it, it needs to do something about the flagrant abuses by mining companies, for example. Canada is a haven and refuge for mining companies, which is a disgrace. After what has happened elsewhere in the world—in Latin America and Africa, for example—the government could choose to shut down numerous large companies. It could put them under guardianship to set them back on the right path. Obviously, the managers and shareholders are not able to do the right thing.

The other reason, the compelling argument that keeps us from supporting the government on part 3, division 17, is that it gives the Treasury Board president the means to intervene in bargaining.

How can we trust a man who kept a slush fund to look after friends in his riding and who protected the millionaires, with their teak decks and fancy houses, who live on certain lakes?

It all happened in the context of the Navigable Waters Protection Act, when the Minister of Transport, Infrastructure and Communities tried to convince us that only commercially used waterways would be affected. It is quite possible that a number of agreements were worked out on those teak decks. Nevertheless, the government is talking out of both sides of its mouth, and this opens the door to terrible abuse. It is an absolute disgrace to trust this man with such privileges.

I would like to conclude by talking about scripture. It is important to me, and I try to follow in Christ's footsteps. During the Sermon on the Mount, Christ called forth the children and comforted them. He spoke about people who take advantage of others, but he did not hesitate to drive merchants out of the temple with a whip. I will follow his example.

I am completely, 100% opposed to this bill. The government will find me, along with my colleagues, blocking its way, because of this one point.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:25 a.m.


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NDP

Dan Harris NDP Scarborough Southwest, ON

Mr. Speaker, I thank my colleague for his passionate speech.

I have to ask my colleague about some of the comments made by the former member, when he talked about the Ontario steel industry and what has happened there because of mismanagement by the government on the Investment Canada file. That is again being changed in this budget, and it is not something that was previously announced. The changes break another Conservative promise to actually consult with business, constituents and stakeholders before making changes, a promise the government has made several times.

With the budget introducing these changes, again with no consultation whatsoever, perhaps the member could offer his opinion on what those changes might do for Canadian businesses that would get gobbled up by foreign entities without protection for workers.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:25 a.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I thank my colleague for his question. He has an interesting perspective, and it brings us back to the question about Investment Canada that I had put earlier to a Conservative speaker.

By amending the Investment Canada Act, they are tilting the playing field. Workers will suffer because of Part 3, section 17, as will Canadian and foreign investors alike. In fact, the rules will be so lax and broad that scammers and thieves will be able to walk right in and hold our natural resources sectors hostage.

I have an excellent example to back that up. The White Birch Paper Stadacona plant in Beauport—Limoilou was owned by a private investor, and therefore was a private enterprise. We know that the government is trying to open unions' books, so why not force investors—who pay hundreds of millions of dollars and can work in complete secrecy—to open their books when negotiating? That way, we could provide some minimum protections for workers, business partners and retirees.

Retirees in my riding, who have had a lot of money stolen from them, do not expect to ever recover that money.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:30 a.m.


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Conservative

Stephen Woodworth Conservative Kitchener Centre, ON

Mr. Speaker, a key stakeholder in the manufacturing sector, the Canadian Manufacturers and Exporters association, had this to say:

The federal budget sends an important signal. It positions manufacturing and exporting at the heart of Canada's Economic Action Plan by focusing on practical steps that will enhance competitiveness, productivity, innovation, and business growth.

This is very good news for companies creating jobs in Canada, investing in our communities, and developing and selling world-class products and services around the world.

I would ask the member if he agrees with the Canadian Manufacturers and Exporters association on the importance of this budget for Canadian manufacturers and exporters.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:30 a.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I thank my colleague for his question.

If we are going to cherry-pick our quotes, then we are going to get the result we want, but the government's real record is the outright loss of 500,000 jobs in manufacturing alone.

I will ask my colleague the following question. We had the opportunity to examine this issue last Tuesday at the finance committee, together with the Parliamentary Budget Officer and the experts and analysts who accompanied her. Despite the desperate attempts by the member for Fort McMurray—Athabasca, not one analyst from the Parliamentary Budget Officer's office was able to confirm for my colleague that the 900,000 jobs were created strictly by the actions of the Government of Canada. Obviously, a trained economist cannot state that in absolute terms.

In any event, my colleague from Rimouski-Neigette—Témiscouata—Les Basques responded by saying that if the government wants to take credit for the 900,000 jobs created, then it should also accept responsibility for the 500,000 jobs lost during the 2008 recession. I believe that that is something the government would never do. If we want to take credit, then we should also take responsibility.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:30 a.m.


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Conservative

Stephen Woodworth Conservative Kitchener Centre, ON

Mr. Speaker, I am proud to rise today in support of Bill C-60, economic action plan 2013 act no. 1, the government's bill to implement the budget.

It is important when considering any budget bill to understand the circumstances to which it must respond, so I will begin with those.

First and foremost, the economic polices of this government during and after the world's worst economic recession in almost 80 years are recognized around the world as an example for others to follow. Governments alone, of course, do not create jobs or prosperity. However, it has been a happy, if unintended, blessing to have been led by a Prime Minister with a strong grasp of economics through these troubled times. Keeping taxes low, time limiting stimulus spending and focusing on long-term infrastructure and job creation investments, while modestly restraining program spending, have been key, sensible policies for supporting our recovery.

Canadians can be grateful that time and again the Conservative government has been able to resist the high-tax, high-program spending demands of the opposition. This was particularly challenging during the recession, during two and a half years of opposition-controlled Parliament. Fortunately, the last election produced a strong, stable Conservative majority government to stave off reckless tax-and-spend policies.

As a result, Canada has led the G7 significantly in net employment gains of almost 950,000 since the recession and in GDP growth. Just this week, Statistics Canada announced that Canada's economy grew once again in February.

While Canada has fared well in global comparisons, we continue to confront significant global challenges. The eurozone remains in recession. The United States, our major trading partner, is experiencing only very modest growth. Global competition from emerging economies is very intense. Too many Canadians are still looking for work.

Fortunately, this bill addresses the challenges we face. It would strengthen the Canadian economy and increase jobs, all while supporting Canadian families and respecting taxpayer dollars. This bill would deliver on the real concerns of Canadians.

One of the timely, targeted measures included in this bill is the reform of the temporary foreign worker program. The temporary foreign worker program was created to fill acute labour needs when Canadians are not available. Canadians have expressed real concerns about the use of this program by some. The program was never intended to bring in temporary foreign workers to replace already employed Canadian workers. Recent events that suggest otherwise made very clear the need to reform this program to match that intent.

The reforms brought forward in this bill stem from the government's ongoing review of the program to ensure that Canadians are the first to be considered for available jobs. The bill would increase the government's ability to revoke work permits and labour market opinions, enabling immediate action against employers who do not comply with the program's rules. Changes to the bill would require employers using the temporary foreign worker program to pay temporary foreign workers the prevailing wage for a job. These are common sense changes to the program to remove unintended incentives to look abroad for employees.

The bill also introduces user fees for employers applying for foreign workers so that these costs are no longer absorbed by taxpayers. The bill does not dispute the ongoing need for temporary foreign workers to meet acute labour shortages. Rather, these reforms create incentives to hire Canadians and ensure that temporary foreign workers are a short-term solution to skill shortages. These reforms introduced in this program would ensure that Canadians are always at the front of the hiring line.

To fulfill the commitments of the 2013 budget, this bill would also deliver targeted tax relief. The enhancement of the adoption expense tax credit, the new first-time donors super credit for charitable donations and the expansion of tax relief for home care services are all targeted tax relief measures to support Canadian families.

This bill would also remove tariffs on imported baby clothing and sports equipment, resulting in significant savings for families. All parents know the expenses that come with raising a family. From basic necessities, such as clothes and food, to education and recreational activities, it adds up very fast.

Through the delivery of the family caregiver tax credit, the child tax credit, the children's fitness tax credit and the children's arts tax credit, the average family now saves $3,200 a year in tax reductions compared to when the present government took office.

These tax credits deliver important savings for Canadians. However, the fact is that the price of too many products needed to support families are consistently priced higher in Canada than the same products sold in the United States. Through the removal of tariffs on imported baby clothing and sports equipment, this difference will be reduced.

The bill also delivers a two-year extension of the accelerated capital cost allowance for eligible manufacturing and processing machinery. This demonstrates that the government recognizes the importance of sectors that provide skilled jobs. The bill provides continued support for Canada's manufacturing employees, support that is especially important for my constituents in Kitchener Centre.

Canada's manufacturing economy will compete in the global economy. Members need not take my word for it. The Canadian Manufacturers and Exporters Association, a key stakeholder in the manufacturing sector, has already come out and said this:

The federal budget sends an important signal. It positions manufacturing and exporting at the heart of Canada's Economic Action Plan by focusing on practical steps that will enhance competitiveness, productivity, innovation, and business growth.... This is very good news for companies creating jobs in Canada, investing in our communities, and developing and selling world-class products and services around the world.

Constituents in my riding of Kitchener Centre are well aware of the importance of a healthy manufacturing sector, a major economic driver in southwest Ontario. The manufacturing sector employs approximately 1.8 million Canadians across Canada. In providing tax relief for new investments of manufacturing equipment, this bill creates a favourable environment for manufacturing employees.

As mentioned, in addition to tax credits to support Canadian families, this bill also ensures that taxpayer dollars are respected. The bill takes steps to close tax loopholes that allow a select few to avoid paying their fair share.

The government has already introduced loan rules to prevent foreign affiliates from converting otherwise taxable surplus income into the form of loans, thereby avoiding taxation. This bill also provides an information reporting regime for tax avoidance transactions. This, in turn, will help the government track down and monitor a loss of tax revenue and collect it for the rest of us.

Hard-working taxpayers can be confident that this bill will ensure that everyone pays their fair share of taxes.When everyone is paying their fair share of taxes, it keeps taxes low for Canadian families and improves the incentive to invest in Canada. I am very pleased that the budget implementation bill delivers a solid plan for creating jobs and economic growth, all while keeping taxes low and balancing the budget by 2015.

This bill is great news for my constituents in Kitchener Centre. I invite all members of the House to put aside partisan differences to join me in supporting jobs, growth and long-term economic prosperity. Please pass this bill.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:40 a.m.


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NDP

Anne Minh-Thu Quach NDP Beauharnois—Salaberry, QC

Mr. Speaker, I want to say to the member opposite that if his party really wanted to set aside partisan differences, it would allow us to debate this bill instead of imposing yet another time allocation motion.

His party is again shutting down debate after making 50 changes to 50 pieces of legislation, including one that has to do with the temporary foreign worker program, which has been a fiasco from the start. The Conservatives have mismanaged it so badly that there have been many problems.

Thousands of jobs at the Royal Bank have recently been given to foreign workers, who are paid 15% less. In addition to this legislation, a number of other changes are being made, which shows how poorly crafted the program really is.

Can we trust a government that says it wants to stimulate the economy, when everything is so flawed? We cannot even discuss it; it is really confusing. What does my colleague have to say about that?

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:40 a.m.


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Conservative

Stephen Woodworth Conservative Kitchener Centre, ON

Mr. Speaker, I am very pleased to answer my colleague's question about whether Canadians can trust this government to bring us through economic difficulty, because the answer is just so self-evident.

Look at what happened in late 2008, with the deep, steep dive around the world and global economic turmoil and the government's speedy response in coming up with a budget by the end of January 2009. I know that my friend was not here when that happened. The stimulus program we enacted at that time, and the measures we have built year after year in the last three years, have brought this economy through the recession, the greatest economic turmoil in 80 years, in a fashion better than any other country around the world. That is a good reason for Canadians to continue trusting us.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:45 a.m.


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Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, I have a question for the member for Kitchener Centre. Having been there not that long ago, I know that small business is a very important part of the economy in his riding. I would like to know whether the member has described for the businesses in his riding, especially, small- and medium-sized businesses, how $2.3 billion would be taken out of their pockets because of the increased tax on dividends. Has he done that? Has he had a response to that move in this particular budget? I would love to hear what they had to say about that.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:45 a.m.


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Conservative

Stephen Woodworth Conservative Kitchener Centre, ON

Mr. Speaker, I suppose the best thing I can do to respond to my colleague's question, and I thank her for it, is to provide her with the reaction of the group that, in my view, most closely reflects the views of small businesses across Canada, and that is the Canadian Chamber of Commerce. It said this about the budget:

The skills problem leads our Top Ten list of critical barriers to Canada's competitiveness. It's showing up all across the country, in every industry.... We are pleased to see the government is moving to [ confront it] and to include business directly in the [solution].

That is just one example of the many good things that are said across the country by small business in relation to this budget. I could give quotes from the Canadian Home Builders' Association and the Canadian Restaurant and Foodservices Association. Canadian building trades unions, in fact, have said some great things about this budget.

In all respects, I think my colleague would find that small business is solidly behind the government in this budget.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:45 a.m.


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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I am pleased to speak to the budget implementation bill, Bill C-60, but I think we have to understand in the beginning that many of us do it under some duress. Under the Prime Minister's leadership, he is again suppressing debate with another time allocation motion, which seems to become the norm in this place, and a budget that seems to have been prepared without the proper analysis. Certainly, the Atlantic premiers said that the proper analysis was not done, and I will get to that in a moment.

On the positive side, this document is not quite as big an omnibus bill as the previous two budgets were, so it is a little shorter and does not cover pretty near everything the government does. However, on the negative side, in following up on the budget, the budget implementation bill builds on the damage already done by the federal government on its ability of be a leader in Canada among the provinces to build our economy, to put some foundation under our social programs, to assist industries, to establish more trade in a way that benefits Canadians. This builds on the damage and even makes it worse from previous budgets.

Members will recall quite vividly when theMinister of Finance stood in his place and said that the government would balance the budget by 2015. Is there a Canadian who actually believes that? There are a couple of members who have raised their hands over there, but they raise their hands any time the Prime Minister says anything. They jump to the tune. For the information of Canadians and the members opposite, there has never been a target that the Minister of Finance has hit, whether it was when he was the provincial minister of finance and did the great damage to Ontario, which it still suffers from, or when he has been the federal finance minister, which the whole country suffers from now.

It is important to note in the beginning a couple of key messages and summarize them.

There is no question that this budget will make it harder for Canadian middle-class families to make ends meet. Middle-class families are really starting to suffer and suffer substantially as a result of the activities of the government. Bill C-60 raises taxes on Canadians in order to pay for the Conservatives' wasteful spending. Last night in the media, the Minister of National Defence, who is becoming infamous for his inability to manage his portfolio, saw Canadians spend twice as much on ships as other countries had. There is not time in the rest of the day to spell out all the other areas the Minister of National Defence has spent money wastefully.

The problem is that there is no joy in the Minister of National Defence, backed up by the Minister of Finance, spending wastefully because middle-class Canadians are the ones being asked to suffer and pay for irresponsible fiscal and financial spending by the government.

The budget raises taxes on small business owners by $2.3 billion over the next five years, directly hurting 750,000 Canadians and risking Canadian jobs.

There are other policy cuts. In the area of agriculture when I used to be the critic, I went to an announcement in P.E.I. two weeks ago on a Friday. I listened closely while the Minister of National Revenue made the announcement for the minister, and she said something along the lines that “We're increasing by 50% the shared funding”. It sounds really good, does it not? The Conservatives are increasing the funding. However, what we have to understand is the key words “the shared funding”. That means farmers are picking up half, where the previous government was really paying for it. If we look closely, we will find that the safety net programs, like agristability and agri-invest, have been cut substantially by the federal government. Therefore, what happens the next time when prices fall on grains in Alberta? The safety nets are not going to be there for the farm community. More middle-class families have been asked to suffer for the incompetence of the current government.

Last Sunday, I happened to be at some of the harbours in my own riding, including Stanley Bridge and Malpeque. Fishing season started early Monday morning. What were fishermen doing on Saturday and Sunday afternoon? They were stressed out and nerved up because DFO, through small craft harbours program, had not done the dredging so they could get out of their harbours. Finally, after a lot of pressure, the dredge was working and the fishermen did get out of Malpeque at six o'clock in the morning. In Stanley Bridge the fishermen had to load their traps from elsewhere because, with the cutbacks to Fisheries and Oceans to the small craft harbours program, fishermen were being asked to pay and suffer as a result of the federal government failing to live up to its responsibilities.

As well, this budget would raise taxes on credit unions by $75 million per year, which is an attack on rural Canadians and Canada's rural economy. The credit unions are right across the country. People who invest in them and put their money in those are usually small businesses. Again, the government is imposing further taxes on the credit unions.

I do not have time to go into all the nickel and dime issues where the Conservatives will tax Canadians, but they will put GST and HST on health care services, including medical work that victims of crimes need in order to establish their case in court, and hospital parking lots will have extra tax on them. Those things add up and they are all be imposed on Canadians as a result of the absolute incompetence of this Minister of Finance.

Let us turn for a moment to the attack on workers and seasonal industries. Except for the minister in charge, we all know the damage that has been done to the seasonal industries and seasonal workers through the changes to employment insurance. However, a special thing happened last weekend, and that was the Atlantic premiers issued a press release through the Council of Atlantic Premiers on April 29, in which they came together. They are from three different political parties, four premiers representing four provinces, and they spelled out fairly clearly the damage that the federal government had done to this federation called “Canada”. They talked about the impacts of employment insurance. One point they raised was:

These impacts are most acutely felt in seasonal industries, which make up a significant portion of the Atlantic economy. These changes were introduced without consultation or shared analysis, and therefore without a full understanding of the effect of the changes.

Clearly, the Atlantic premiers are coming together and saying that there is no federal leadership in our country and no consultation. The role of the federal government is to use its spending power, the budget and the budget implementation act, to do things that will build up Canada and set a foundation under our economy and our social programs. All we would get in this budget implementation act from the federal government is more and more damage, building on the poor fiscal management that it already has.

Worse yet, not only is Atlantic Canada being targeted, but middle-class families right across the country are being asked to pay the price for the fiscal incompetence of the Prime Minister, the Minister of Finance and the backbenchers over there who fail to stand and speak out against the Prime Minister and the damage that has been done to the Atlantic economy and to the country.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:55 a.m.


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NDP

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

Mr. Speaker, yesterday I asked the hon. member for Wascana a question, and I would now like to put the same question to the member for Malpeque.

The measure to eliminate the tax credit for labour sponsored venture capital funds was not included in Bill C-60, but it was announced in the budget. This measure is very important and very controversial. It has been criticized by Canada's Venture Capital and Private Equity Association, an organization that represents private equity companies in Canada.

What is the third party's position on the elimination of the 15% tax credit, which we think is crucial? The hon. member for Wascana did not seem to think the matter was crucial enough to look at.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:55 a.m.


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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, what the elimination of the tax credit shows is the misplaced priorities of the government. It is a government of big business. We see that with China, the Nexen-CNOOC deal, where special privileges may be granted to big companies to come into our country to invest even if they are state-owned enterprises.

We have seen the corporate tax reductions where the multinationals, the big corporations around the world, are getting tax breaks in our country even though they are sitting on $560 billion that they are not using to increase jobs, improve technology and productivity. The venture capital the hon. member is talking about comes basically from workers. They also should have that advantage to invest where they see fit to improve the economy.

Economic Action Plan 2013 Act, No. 1Government Orders

May 3rd, 2013 / 10:55 a.m.


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The Acting Speaker Bruce Stanton

The hon. member for Malpeque will have three minutes remaining in the period for questions and comments when the House next returns to debate on the question.