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.

Murray Rankin NDP Victoria, BC

But it's not what the summary says. That's all I'm saying. I think it's very misleading to Canadians. That's all.

Could I talk about the substance for the very few minutes we have available?

My first question is on these reduced tariff rates that are brought into effect as a consequence of Bill C-60, which will actually increase the cost to Canadians on a whole variety of items: bicycles, sandals, wigs, grand pianos. Do you have a list available of the number of items that are subject to the tariff changes that are before us? Is there a comprehensive list we could look at?

Murray Rankin NDP Victoria, BC

Thank you very much, Mr. Chair, and thank you, witnesses, for attending.

This is sort of a threshold question, a process question, before I get into the meat of the matter, as it were, with this part and this division. I have a question for legal counsel that they can get back to us on. Many people, of course, will only read the summary of Bill C-60, and in the summary, addressing this division of part 3, it reads as follows:

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....

But when one looks at page 43 of the actual act, section 36 says:

Sections 33 to 35 cease to have effect on December 31, 2024 or on any earlier date that may be fixed by order of the Governor in Council.

It would appear to me that there's quite a misleading statement in the summary, because of course it could be brought in at any time before 2024, yet one would get the impression in the summary that it doesn't come in until December 31, 2024.

That's a threshold sort of legal question, and I don't necessarily know that there will be an answer from these officials, although I'd welcome one. Perhaps counsel could get back to our committee on what appears to be a discrepancy.

Ted Hsu Liberal Kingston and the Islands, ON

Finally, as a result of Bill C-60, will medical documentation for requirements at school or work now be charged GST/HST? For example, in my riding at Queen's University, the health counselling and disabilities services centre might charge $20 for a sick note or $120 for a pre-employment assessment and certification.

Will there now be GST/HST on these services?

Ted Hsu Liberal Kingston and the Islands, ON

As a result of Bill C-60, will medical work such as X-rays, laboratory tests, or documentation from doctors done to meet the requirements of private insurance now be subject to GST/HST?

Based on the previous responses, I'm guessing the answer is yes.

Ted Hsu Liberal Kingston and the Islands, ON

As a result of Bill C-60, will psychological assessment of a victim of crime, carried out to establish a case in court, now be subject to GST/HST?

Ted Hsu Liberal Kingston and the Islands, ON

As a result of Bill C-60, will psychological assessment of a child with a learning disability for the purpose of a determination by a local school board, like the identification placement and review committee in Ontario, now be subject to GST/HST?

Ted Hsu Liberal Kingston and the Islands, ON

Thank you very much.

There are some specific cases I want to ask about. I'd like to ask for clarification on whether they will be subject to GST/HST as a result of Bill C-60.

As a result of Bill C-60, will medical work such as X-rays, laboratory tests, or documentation from doctors done for a victim of crime so that they can establish their case in court now be subject to GST or HST?

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

On page 121 of the 2013 budget there is a chart outlining the impact of all tax measures since 2006 that have provided tax relief to small businesses. It's very impressive as part of the overall picture. In the context of the DTC modifications in Bill C-60, can you tell us what type of overall tax relief since 2006 the small Canadian-controlled private corporation is benefiting from?

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Like the federal government, many provinces and territories have made efforts to integrate corporate and personal taxes. Can you outline the provinces that since 2008 have changed their DTC rate, similar to what has been proposed in Bill C-60, to correspond with the reductions in their provincial and small business tax rate? I understand the provinces have done the same thing, because the intention is to create that balanced playing field.

Peggy Nash NDP Parkdale—High Park, ON

Thank you, Mr. Chair.

Welcome again, Mr. Cook and the other officials. We appreciate you being here. Thank you for the earlier briefing that we received on Bill C-60.

I'd like to focus my time on the subject of credit unions and the tax changes for credit unions.

Many Canadians have experience with credit unions and other forms of cooperatives. They play an important role in investing in their communities, which distinguishes them from banks, because they have a social mission as part of their makeup. They're also generally much smaller than banks. Vancity, which is the largest credit union, is some 16 times smaller than the smallest of the major banks.

My question is around the purpose of these tax changes. It says that the goal is to create a level playing field with the private sector. Do you really think that credit unions are playing on an even playing field, or ought to play on an even playing field, with the large financial institutions?

The Chair Conservative James Rajotte

Thank you very much for your overview, Mr. Cook. We appreciate that.

Colleagues, we will have any questions related to part 1 of Bill C-60.

I'll proceed in the usual fashion.

We'll start with Ms. Nash, please.

The Chair Conservative James Rajotte

I call this meeting to order. This is meeting number 121 of the Standing Committee on Finance.

Our orders of the day, pursuant to the order of reference of Tuesday May 7, 2013, is to begin our study of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

We have a full meeting with officials today.

The way I'm suggesting we proceed is that we do it by part. We'll ask the officials to give a very brief overview, for instance, of part 1, and then we will deal with all questions from part 1, and then we'll move to part 2, part 3, and part 4.

We do have a full meeting, and I'm sure members have a lot of questions.

Welcome back to the committee to all of you.

Mr. Cook, if you could give a brief overview of part 1, then we'll have questions from members.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 5:05 p.m.


See context

Conservative

Brad Butt Conservative Mississauga—Streetsville, ON

Mr. Speaker, it gives me great pleasure to rise in the House and speak to Bill C-60, an act to implement certain measures in the budget that was presented on March 21 by the Minister of Finance.

This bill is about continuing the important work of this government on jobs, growth and long-term prosperity. This bill would implement very important measures for all Canadians, and I know it would improve the lives of people across Canada and in my riding of Mississauga—Streetsville.

At the outset, I would like to quote some of other things the Minister of Finance told the House on March 21 when he tabled economic action plan 2013. He stated:

Canada is in an enviable position among the world's industrial economies. We have fared relatively better than most in the aftermath of the worst recession in a generation. As many of our allies and trading partners continue to struggle, we are well placed to prosper.

...by sticking to the long...view...by taking strong, decisive actions whenever it has been required. We have grown stronger, even as many have weakened.

However, he went on to say:

...it is...clear to the world that Canada has picked the right path and the right plan, a responsible plan for jobs, growth and long-term prosperity.

I am proud to be a member of a government that is committed to a solid plan for the near and long term. I am proud of a Minister of Finance and a Prime Minister who have put the economy first. However, I am also immensely proud of Canadians who continue to work hard, do their best and make Canada the greatest country in the world. There is no better way this is shown than through community service and charitable giving. It has been my honour and privilege to serve on many community agencies in the city of Mississauga with passionate volunteers for more than three decades. I see the wonderful work that each and every one of them does, and I see the tremendous generosity of people who donate to these vital organizations.

That is why I am so delighted to see that this bill would implement a new super credit for first-time donors to charitable organizations, so that we may bring in thousands of new contributors to support these important services. Charitable giving promotes philanthropy and good citizenship while helping others when they need it most.

I had the distinct pleasure to serve as a member of the board of directors of the Peel Children's Aid Society and Peel Children's Aid Foundation, and I am very pleased to see that this bill would allow certain adoption-related expenses, incurred before a child's adoption file is opened, to be now eligible for the adoption expense tax credit. Our CAS system plays a very important role in adoption, and any way we can help families with the costs of this would be greatly appreciated.

I see as well that there is good news in this bill for veterans. The bill would amend the War Veterans Allowance Act to ensure that veterans' disability benefits would no longer be deducted when calculating the war veteran allowance, and the contributions for the Last Post Fund for funeral and burial services would be doubled.

Further, this budget is very good news for our partners in the municipalities across Canada. Bill C-60 proposes to index the gas tax revenue that is sent to municipalities, which they use for important transit and transportation infrastructure that suits local needs. Our last budget made this transfer permanent, and this one would ensure that the funds would grow with inflation. This government respects our towns and cities, and works with them as true partners. I am certain that in my own city of Mississauga these important funds would help our city continue to grow and provide needed transportation infrastructure for many years to come.

As a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, I am very pleased to see that this bill proposes changes to the temporary foreign worker program, to ensure that it operates within its original mandate—to permit the use of foreign workers on a temporary basis in certain sectors where Canadians cannot fill those jobs—and to ensure ultimate accountability through a new registration and fee process. While there has been much media fanfare about the TFW program, it is still a vital system for some areas of the country and should be improved, not scrapped. Bill C-60 proposes a strengthened program with the proper checks and balances as we move forward.

There is also new support for job creators. Bill C-60 proposes changes to the mineral exploration tax credit, it would extend the temporary accelerated capital cost allowance rate for machinery and equipment, and it would modernize the general preferential tariff regime for developing countries to help Canadian companies better compete with foreign firms.

It also would provide more than $70 million in tariff relief for families purchasing sports equipment or baby clothing.

Through this budget, the Government of Canada is renewing its commitment of fiscal transfers to the provinces for equalization until March of 2019, providing them that important sense of stable funding. Bill C-60 would make a number of changes that continue Canada moving on the path of better jobs and greater prosperity. It sets an important tone of confidence and responsibility at times that are still cautious and fragile. This is not the time to propose huge new tax increases on Canadians or go on wild spending sprees. We cannot play fast and loose with Canadians' hard-earned tax dollars, and we cannot slag our trading partners and the private sector.

As we move forward, I look forward to the implementation of the new Canada job grant with the provinces and employers; I look forward to the ten-year renewal of the Canada building fund with provinces and municipalities; I look forward to the five-year renewal of the affordable housing program and the homelessness partnering strategy; I look forward to the renewal of the hiring tax credit for Canada's job creators; I look forward to new investments in innovation and technology; and I look forward to Canada's continued economic leadership at home and in the world.

It is easy for members on the other side to criticize while offering no ideas of their own, other than raising taxes and increasing spending. That is not a plan for Canada; it is a recipe for disaster.

As the Minister of Finance concluded on March 21:

Today we move this responsible plan forward, forward toward that bright future. With this plan, our government renews our commitment to Canadians, our commitment to jobs, our commitment to growth, our commitment to long-term prosperity for all Canadians.

The House resumed 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.

Bill C-60—Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 4:50 p.m.


See context

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, I accept your comment with the utmost humility, as you are quite right.

I talked about the narrative of this nation and how in many respects, the bill is not in keeping with it. I am the heritage critic. There are many aspects of heritage I have seen over the past year and a half that have caused great trouble. One in particular is with regard to Library and Archives Canada. I have a paper sent to me from a gentleman by the name of Jim Clifford. He is involved with ActiveHistory.ca, and he brings up some very salient points:

Library and Archives Canada also experienced a wave of job losses last summer with the termination of twenty-one archivists and archival assistant positions, a fifty per cent reduction in digitization and circulation staff, and the elimination of the interlibrary loans program. The cuts compounded past reductions in the LAC budget and the series of “modernization” policies that have reduced public access to archival materials and compromised the ability of LAC to acquire new records.

This is a legitimate concern, because instead of saying that we are going to pare down the budget, look at a substantial review, look at practices within certain departments that are inefficient and eliminate them or put them on hold until a later date when we can afford them, the Conservatives, like many governments nowadays, are saying that they are going to make these cuts, and it will be better for them. They will give them less food, but they will feel more full. Where is the logic in that?

Library and Archives Canada is a good example. They claim that it will be that much more efficient and that much better for the end-user, in this case, anyone who wants to find out about the history of this country and the story behind who we are. They are going to have trouble doing that. There is less service.

Parks Canada land across this country, millions of square kilometres, are some of the greatest places in this country to experience what it is to be from this country, whether it is the mountains of the west coast, Wood Buffalo National Park and the sensational scenery there, Ontario, or even the national park where I am from, which is Terra Nova National Park. Parks Canada was hit the hardest by layoffs in the civil service as a result of last year's budget. It was $29 million annually, resulting in an estimated 638 job losses. This is quite a hit to take.

What we expect from this particular implementation bill and other bills that follow is the transparency to say that this is how we are going to pare down these services. What the Conservatives do not do is to seek the advice of those who are involved in day-to-day operations, as illustrated by Library and Archives Canada and Parks Canada. Now we see, paramount to a lot of things in Bill C-60, that it also contains this measure.

I received correspondence from the Independent Media Arts Alliance about the presence of the Treasury Board in negotiations in crown agencies. Here is what it says:

The arm's length relationship is so fundamentally important to the Canadian Council for the Arts and other institutions.... It greatly undermines the spirit and principle of the crown corporation, which while having a direct connection to the federal government is meant to be “shielded from constant government intervention and legislative oversight and thus generally enjoys greater freedom from direct political control than government departments”.

There we see a fundamental difference. Fittingly, over the past six to eight years, we brought to the Conservatives problems with certain crown agencies. The answer was always that they had no direct control. What does this mean now? If something happens with a crown agency, can we say that this is not true any more, because they have direct control over certain aspects? We are now telling Treasury Board that it must get involved in these collective agreements. That is step one. What is next?

Will the mandate of the CRTC also be controlled from the PMO or other sources? This is our fear. I think many Canadians understand that this is a fundamental step backward, certainly over the past four or five years. This particular government does not want to involve itself, yet it does. It is trying to play this side and that side of the story.

Budget 2013 imposes a net tax increase of $3.3 billion in the next five years. One of my hon. colleagues across the way said in the House about two years ago that a tax is a tax. It could be a fee. It could be an adjustment in how we pay fees in this country. No matter what it is, if the government raises the amount of money extracted from the general public, it is a tax.

Some were talking about the so-called iPod tax. Interestingly, with the change recently in tariff regulations, we find that the price of iPods and other items like that are going up. To quote my hon. friend in the Conservative Party, a tax is a tax is a tax. Who is doing the iPod tax?

This is the iPod shuffle. There are many other shuffles we continue to deal with in the House. They appear in the fine print. Over the past three years, budget implementation legislation has always contained fine print that we talk about in the House.

It was the same with EI changes. We did not realize there were changes until people called my office and said that they had to take a job that was an hour's drive away. A women who lived in St. John's told me that she was told that she would have to go to Clarenville. Here was the catch. After taking a ferry for 30 minutes, she would have to drive three and a half hours to get there.

If people have problems with employment insurance, they have the right to appeal. The umpires and the appeals process are being cut. It is being pared down to the bare minimum, which will also make it extremely difficult for these people.

I started by saying that $3.3 billion in the next five years will be an incremental increase. There are safety deposit boxes; dividend tax credits; the deduction for credit unions, which will be crippling for many rural towns' financing; tariff increases; the general preferential tariff, which I spoke about earlier, which is the new iPod tax; character conversion transactions; trust loan trading; mining expenses; life insurance arrangements. The total increase is $5.5 billion.

It is rather disingenuous when the Conservatives put out the same line over and over again. They keep saying that it is their low-tax plan. At some point, people will say, and certainly in my riding they are saying it, that they are not buying that any more.

In this particular instance, when it comes to Bill C-60, some things are positive, but by and large, most things are negative, and therefore I will not be voting for this particular piece of legislation.