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 is from the 41st Parliament, 1st session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the 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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-60s:

C-60 (2023) Law Appropriation Act No. 4, 2023-24
C-60 (2017) Law Miscellaneous Statute Law Amendment Act, 2017
C-60 (2015) Removal of Serious Foreign Criminals Act
C-60 (2011) Citizen's Arrest and Self-defence Act
C-60 (2009) Keeping Canadians Safe (Protecting Borders) Act
C-60 (2008) Law An Act to amend the National Defence Act (court martial) and to make a consequential amendment to another Act

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.

Speaker's RulingEconomic Action Plan 2013 Act, No. 1Government Orders

May 31st, 2013 / 10:50 a.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Speaker, I want to correct the record in the House. I think the hon. member opposite may have misspoken when she talked about consultation.

We heard from witnesses at the industry committee, government officials, in fact. There was no consultation on the changes to the Investment Canada Act. We heard from crown corporations that there was no consultation around changes to their labour relations. We heard from credit unions that there was no consultation. They said very clearly at the committee that no one had talked to them about very significant changes that will be affecting credit unions across the country.

I think what happens, sadly, is that a few members opposite get into phone booths with people who talk and think like them, but they do not get out and listen to the rest of Canadians or do proper consultation.

I would like the member to correct the record.

Speaker's RulingEconomic Action Plan 2013 Act, No. 1Government Orders

May 31st, 2013 / 10:50 a.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Mr. Speaker, correcting the record is something that I have not heard the NDP do very often because it does not do it very well. The facts speak for themselves. There has been extensive consultation, as mentioned by a number of members who stood here today to ask questions or to make statements. There are some measures in the budget bill that are closing tax loopholes. Of course, we do not consult with those who attempt to avoid paying taxes when we close those tax loopholes.

I might add that I am very disappointed in the member who just spoke. She was particularly difficult to deal with throughout all of this. She continues to be particularly difficult to deal with and continues to mislead Canadians on this. This is a good budget bill. It is a bill that would help Canadians to progress. It would create jobs. It would maintain our long-term prosperity. I just wish the NDP member would have a change of heart.

Speaker's RulingEconomic Action Plan 2013 Act, No. 1Government Orders

May 31st, 2013 / 10:50 a.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Mr. Speaker, I rise today to speak to Bill C-60, the Conservatives' latest omnibus budget implementation act, as well as amendments that are now before the House.

The Liberals continue to oppose Bill C-60 for two key reasons: this legislation threatens the independence of the Canadian Broadcasting Corporation, and it continues to raise taxes on middle-class Canadians in order to pay for the Conservatives’ wasteful spending.

At committee, the Liberals put forward several constructive amendments to help address these concerns. Unfortunately, the Conservatives refused to listen and give decent consideration to these amendments. They refused to entertain any amendments whatsoever, despite the growing evidence that Bill C-60 is in fact deeply flawed.

To give an example of just how flawed the legislation is, Mr. Hubert Lacroix, the president of CBC/Radio-Canada, took the almost unprecedented step of writing to the members of the finance committee and essentially threatening a court case if Bill C-60 passes without amendment. He said that the legislation threatens the independence of the CBC and Radio-Canada. This is what he told us in his letter:

We believe that the proposed amendments to the Financial Administration Act….may conflict with key parts of the Broadcasting Act, our corporation’s governing legislation, and as a result, would reduce the independence that is critical to our operation.

He further stated:

“[The bill]…may give rise to conflicts with the Broadcasting Act and the Charter and compromise the Corporation’s independence.

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

We have also heard from tens of thousands of Canadians who have signed petitions and written to their MPs in order to protest the way in which Bill C-60 threatens the independence of the CBC and Radio-Canada.

Unlike the government, Canadians understand that the CBC/Radio-Canada was originally set up as an independent crown corporation in order to shield it from political interference. While the government appoints the board of directors and determines the overall budget of the CBC and Radio-Canada, this cultural crown corporation has always had the independence to determine who should work there and how much they should get paid. This legislation effectively removes that independence.

Canadians have been clear. They do not want politicians to punish reporters or journalists from the CBC and Radio-Canada for asking any of us uncomfortable questions. In an effort to be constructive, Liberals tried to provide the Conservatives with options in order to address these concerns. We proposed a constructive amendment that would have excluded the CBC and Radio-Canada from the measures of Bill C-60.

We also proposed an amendment that would have simply yet clearly protected the independence of CBC and Radio-Canada from the measures in this bill so that the government could avoid a potential legal showdown, but the Conservatives would not listen to reason and consider these amendments. They seem to have become completely deaf to the concerns of Canadians.

George Smith, a professor at Queen's University, who has also served as a chief management negotiator for the CBC and Radio-Canada, also appeared before the finance committee and was clear that the changes in Bill C-60 are not just bad for labour, they are bad for business. This is what Professor Smith predicts will happen under this legislation:

Relationships between labour and management, which are fragile at best during stressful negotiations, will be strained to the point of breaking with the negative consequence of ensuring labour disputes. There will be costs to the economy. In sum, an already complex process will be complicated to the point where in my considered professional opinion it will become totally dysfunctional.

In addition to threatening the stability of CBC/Radio-Canada, one of Canada's most cherished cultural institutions, as well as endangering labour relations, this legislation actually raises taxes on Canadians. In fact, in each of the last four budgets, the Conservatives have raised taxes on hard-working, middle-class Canadian families. Their latest budget raised taxes by a whopping $3.3 billion over the next four years and a number of these tax measures are included in Bill C-60. Bill C-60 actually attacks Canada's rural and small-town economy with a tax increase on credit unions.

Speaker's RulingEconomic Action Plan 2013 Act, No. 1Government Orders

May 31st, 2013 / 10:55 a.m.

The Speaker Andrew Scheer

The hon. member for Kings—Hants will have just under five minutes left when we resume. We are going to move on to statements by members.

The hon. member for Cypress Hills—Grasslands.

The House resumed from May 31 consideration of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:10 p.m.

The Speaker Andrew Scheer

Order. The hon. member for Kings—Hants still has four and a half minutes left to conclude his remarks. I will give him the floor now.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:10 p.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Mr. Speaker, before being so rudely interrupted by the weekend, I was saying that the Conservatives' latest budget would raise taxes by a whopping $3.3 billion over four years, and a number of these tax measures are included in this budget implementation act.

Bill C-60 would attack Canada's rural economy, with tax increases on credit unions. It would take more money out of small communities that are already struggling, and it would make it harder for small businesses in rural and small-town Canada to get the credit they need to grow and create jobs.

This is what David Phillips, president and CEO of Credit Union Central of Canada had to say:

The income tax increase on credit unions...is growth limiting. It deprives credit unions of income that might otherwise be used to support the growth of the credit union by building its capital base. The credit union will...have less capacity to make loans to small business, fund community economic development, and meet member needs.

It disregards the federal government's desire to support small business in local communities...

...it's really a tax on growth.

It is a tax on growth in rural and small-town Canada.

Garth Manness, the CEO of Credit Union Central of Manitoba, said:

...it is no exaggeration to say that some...may begin to question the future viability of credit unions in many communities in rural Canada. Not only could people be left without access to a nearby financial institution, [but] valuable and stable jobs at the credit unions could be lost.

Many of Canada's smaller rural communities face persistently higher unemployment rates and a rapidly aging population as younger workers move to cities for stable jobs. It is illogical for the Conservatives to go ahead with this tax hike on credit unions and diminish an already-limited source of investment in these rural and small-town communities.

On top of hurting small businesses that rely on credit unions, Bill C-60 would attack 750,000 Canadian small-business owners with a new tax hike on dividends. This legislation would even raise taxes on safety depot boxes. Perhaps what is most offensive is that Bill C-60 would actually punish victims of crime by adding GST or HST to health care services they need to establish their case in court.

The Canadian Psychological Association remains concerned that Bill C-60 would add GST and HST to mental health services, including psychological assessments. This is what Karen Cohen, the CEO of the Canadian Psychological Association, said when she appeared before the finance committee: “If passed without clarification or amendment, Canadians will now have to pay taxes on certain psychological services that were once exempt”. She provided a number of examples of Canadian patients who would now have to pay GST on mental health services, and went on to say:

It's important to note that this isn't a pocketbook issue for psychologists. It's not the psychologists who have to pay this tax. It's going to be hard-working Canadians who have a health need that is not met by Canada's publicly funded health care system.

A psychological assessment can cost thousands of dollars in out-of-pocket fees. The amount of money at stake for Canadian patients is not trivial.

While it may be true that the Conservatives' latest omnibus budget bill is less omni-busive than either Bill C-38 or Bill C-45, it is still deeply flawed, and we see the government now moving closure to ram this through the House of Commons without respect for Parliament and without proper scrutiny. This bill would threaten the independence of the CBC; it would raise taxes on hard-working Canadian families.

We proposed at committee some constructive amendments to address the very legitimate objections raised by Canadians during the committee's studies, but the Conservatives would not listen to reason. They have been deaf to the concerns of Canadians on this, and I expect Canadians will return the favour to the Conservatives in the next federal election.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:15 p.m.

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, the member rightly points out the fact that, first, this is a budget implementation bill that would amend 49 different pieces of legislation; and second, we just finished voting on time allocation, which will limit our ability to study the impacts of this particular piece of legislation.

The member noted a number of ways that Canadians would be impacted by this legislation. Could he comment on the fact that, once again, we are not going to have time to deal with the matters that are before this House in a way that would allow us to determine the impact and the longer-range consequences?

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:15 p.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Mr. Speaker, when we were studying some of the changes to the governance of labour negotiations for crown corporations that are made in this legislation, it was raised by several witnesses that they had been called in the past to appear before House of Commons committees but never the finance committee.

That was something we heard from a number of witnesses who noticed that instead of being called before the human resources committee to discuss issues around labour and governance around labour, which would have made sense, they were being called before the finance committee. Here we were at the House of Commons finance committee where we were supposed to be studying and focusing on fiscal questions, budget questions, and we were forced to be generalists and to opine on legislation that falls outside of the purview of either our expertise or the committee's mandate.

It is not enough to have some studies done at other committees, they should be able to vote on the individual provisions at those committees wherein the expertise lies.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:20 p.m.

Liberal

Frank Valeriote Liberal Guelph, ON

Mr. Speaker, I have remarked before that when the Conservatives lower a tariff, they claim it is a tax reduction. However, when they increase a tariff, they actually claim it is somehow protecting Canadian industry, not giving an advantage to other countries that export their products into Canada.

Could the member for Kings—Hants expound on that a bit, and let the members and Canadians know that they would be paying more for appliances, they would be paying more for bikes, they would be paying more for school supplies, because of an increase in tariffs to the tune of almost $350 million in this budget?

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:20 p.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Mr. Speaker, I thank the member for Guelph for his continued hard work on behalf of Canadians in this House.

In the budget, the Conservatives say that cutting tariffs would help reduce cross-border shopping and help reduce the cost of living for Canadians families. The only problem is that they do not cut tariffs in this budget. In fact, they increase. The net increase is around $250 million. The Conservatives cut some tariffs, about $80 million, but they increased tariffs overall by $250 million. That is the net, the difference between the $330-million tariff increase and the $80-million tariff decrease.

If we take into account the fact that the Conservatives would be increasing tariffs on middle-class Canadian families by $250 million, using their own words and their own logic, this would increase cross-border shopping to the detriment of Canadian small businesses in border communities, and it would increase the cost of living for Canadian families.

The Conservatives are aware of the fact that they would be increasing tariffs and increasing taxes on just about everything the middle-class Canadian families need, but they are trying to hide it. They are trying to do it by stealth. They are being unaccountable.

By moving forward with time allocation today in the House, Conservatives are further reducing that accountability to Canadian families, Canadian citizens and Canadian taxpayers.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:20 p.m.

Kamloops—Thompson—Cariboo B.C.

Conservative

Cathy McLeod ConservativeParliamentary Secretary to the Minister of National Revenue

Mr. Speaker, it is certainly my pleasure and honour to stand and speak in favour of today's pro-economic and job-growth legislation, Bill C-60, economic action plan 2013 act, No. 1 at report stage. Certainly, like the Parliamentary Secretary to the Minister of Finance last week, I also would like to thank the finance committee members and the great chair, the member for Edmonton—Leduc, for their comprehensive and timely study of the bill. I also would like to extend a very special thanks to every witness who appeared in front of the committee to speak to the significance of the bill and Canada's economy.

In my time today I would like to focus on a number of specific measures contained in the legislation that received some attention during our committee study. First, members will no doubt be familiar with the important adjustments to the Canadian tariff systems that were announced as part of economic action plan 2013. In spite of what the member for Kings—Hants indicated, I would really like to talk clearly about what this is intended to do.

This was in essence a foreign aid program and it was created in the 1970s by western countries to give companies from poor third world markets preferential access to our domestic market. Most western countries that maintained the GPT program or equivalent had modified their list of countries to reflect the fact that formerly developing countries had grown their economies in the 40 years since this program was first introduced, but unlike the EU, the United States and Japan, Canada has not reviewed the list of countries until now. This means that list is sorely outdated.

As a consequence, Canada is giving special breaks in the form of lower tariffs to foreign companies from emerging economic powerhouses like China, South Korea, India and Brazil, companies that compete directly with Canadian businesses and their workers for global market share. Nearly 80% of these special breaks are now going to China even though China now has an economy that is over four times the size of Canada's. Specifically, China's economy is valued at $7.3 billion compared to Canada's, which is $1.7 billion.

Without our changes, Chinese companies will continue to benefit from a one-way trade deal, receiving special breaks and offering nothing in return. This program acts as a disincentive for those growing economies to enter into free trade agreements with Canada, agreements that would increase export opportunities for Canadian businesses, would create more and better jobs for Canadians and would further reduce tariffs for Canadian consumers.

The Canadian Manufacturers and Exporters explained the changes best when it said:

It's 39 years since we updated it. It was meant to help developing countries....we were giving them preferential tariffs while their per capita GDP is higher than Canada’s....The solution is what the government is doing: try to negotiate free trade agreements with countries around the world so that we not only drop our tariffs, but they drop their tariffs as well.

That is exactly what we are trying to accomplish.

This leads me to another important feature of today's legislation that responds to recent concerns of the U.S.-Canada price gap. Economic action plan 2013 proposes to eliminate all tariffs on baby clothing and select sports and athletic equipment, including everything from ice skates, hockey equipment, skis, snowboards, golf clubs and other products that promote physical fitness and healthy living.

Targeted measures contained in Bill C-60 represent $79 million in annual tariff relief for Canadian families. I should note though, this tariff relief comes with the expectation that wholesalers, distributors and retailers will pass these savings on to consumers. Working with the Retail Council of Canada and consumer groups, our government will be monitoring the impact of these tariff reductions on Canada's retail prices.

In fact, the Retail Council of Canada has spoken out in support of this important first step in reducing outdated tariffs, which put Canadian consumers at a disadvantage, stating:

—we are very pleased to see this first step toward leveling the playing field for Canadian retailers....it is a good start and a demonstration of the government's recognition of one of the key reasons for price differences in Canada.

Even better, listen to what Dean Lapierre, president of the Windsor Minor Hockey Association, had to say:

This will definitely help because the cost of equipment is the main thing people cite when deciding to register.... It could cost $600 to $700 to equip one player, double that if the kid’s a goalie. And a lot of families have two or more kids who want to play, so this is great.

I want to be clear that this initiative would allow our government and all Canadians to assess whether further tariff elimination could help to narrow the price gap for consumers in Canada. Of course, this is going to guide our future decisions.

Before concluding, I want to take a moment to highlight one particular item contained in today's legislation related to public sector compensation, specifically the amendments to the Financial Administration Act that would enable the Governor in Council to direct a crown corporation to have its negotiating mandate, including wages and benefits, approved by Treasury Board. While this may seem highly technical to many Canadians watching at home, it really is very important for taxpayers across the country.

As with our action in last year's budget to reform public service pensions, along with those of MPs and senators, to make them more sustainable and bring them in line with private sector pensions, the overriding objective is to protect the taxpayer's dollar. While we acknowledge that all crown corporations are independent in their operations, their financial decisions impact the government's bottom line.

As responsible economic managers, our government must ensure that we have the right tools to protect taxpayers at the bargaining table, if necessary. This is neither new nor revolutionary. It is a common sense action on behalf of taxpayers. It is important to note on this particular measure that Quebec has had a very similar provision in place for over three decades. I hope that all members of the House will understand that both the government and crown corporations have a fundamental responsibility to spend taxpayers' dollars wisely and to help ensure that Canada's fiscal position remains sustainable over the long term.

In the words of the Canadian Taxpayers Federation:

—[the] executives who manage government-owned companies have enjoyed, until now, special status: they are paid like business people, with none of the risk.... But the taxpayer is always there, at the end of the day, to stroke another cheque, cover the losses, and make everything better....

Simply put, provisions in Bill C-60,... grant [the government]...the power to tell negotiators at these companies how much they can offer unions in wages, benefits.... to insert some spine into government negotiating teams--should improve the odds for taxpayers.

Again, I would like to note that the legislation before us today is an important step in creating jobs and economic growth, while keeping taxes low and balancing the budget by 2015. I certainly urge all members to vote in favour of this jobs, growth and long-term prosperity budget bill and support this very important measure.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:30 p.m.

NDP

Linda Duncan NDP Edmonton Strathcona, AB

Mr. Speaker, one aspect that seems to be missing from this bill is any big discussion about an energy strategy for this country. We hear time and time again how the oil sands and other oil and gas activities are the economic engine of this country, yet budget bill after budget bill tabled in the House is vacuous as to how we are going to better regulate our energy industry.

Through the last three budget bills, the government streamlined environmental legislation. Many in my province, including the premier, have called for the federal, provincial and territorial governments to work together on a clean energy strategy for all Canadians. Could the member speak to why we continue to see nothing about this in any of the government's budget bills that come forward?

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:30 p.m.

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Mr. Speaker, I would like to point out a bit of irony. Opposition members frequently say there is too much in the bill and that there should be discussions at the environment committee and with natural resources. I would say to the member that those are appropriate discussions for committees designed to deal with that. We have made some important improvements in the environmental legislation in previous budgets in order to provide balance.

Today, we are talking about Bill C-60, the budget implementation act, and very important measures, whether it is the Nature Conservancy of Canada, which is incredibly well received, the Pacific salmon stamps, the money that is going to go directly to the organization to support the conservation of habitat. We are here to speak to Bill C-60, but I certainly believe we are having dialogues at many different levels on the important issue of energy.

Report StageEconomic Action Plan 2013 Act, No. 1Government Orders

June 3rd, 2013 / 1:30 p.m.

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, Bill C-60 is an important tool to get our budget implemented to address, among many things, a skills mismatch in our country and getting people into open jobs. I know that is a big problem out west, particularly, as it is in Essex County, in the machine, tool, die and mould sector, which has plenty of openings.

I wonder if the member could comment on the importance of the new Canada job grant as a tool for overcoming or bridging that skills mismatch to get people who are either unemployed or underemployed into those meaningful positions in order to keep the economy moving.