Bill C-60 (Historical)

Economic Action Plan 2013 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it
(a) allows certain adoption-related expenses incurred before a child’s adoption file is opened to be eligible for the Adoption Expense Tax Credit;
(b) introduces an additional credit for first-time claimants of the Charitable Donations Tax Credit;
(c) makes expenses for the use of safety deposit boxes non-deductible;
(d) adjusts the Dividend Tax Credit and gross-up factor applicable in respect of dividends other than eligible dividends;
(e) allows collection action for 50% of taxes, interest and penalties in dispute in respect of a tax shelter that involves a charitable donation;
(f) extends, for one year, the Mineral Exploration Tax Credit for flow-through share investors;
(g) extends, for two years, the temporary accelerated capital cost allowance for eligible manufacturing and processing machinery and equipment;
(h) clarifies that the income tax reserve for future services is not available in respect of reclamation obligations;
(i) phases out the additional deduction available to credit unions over five years;
(j) amends rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons; and
(k) repeals the rules relating to international banking centres.
Part 1 also implements other income tax measures and tax-related measures. Most notably, it
(a) amends rules relating to caseload management of the Tax Court of Canada;
(b) streamlines the process for approving tax relief for Canadian Forces members and police officers;
(c) addresses a technical issue in relation to the temporary measure that allows certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract; and
(d) simplifies the determination of the Canadian-source income of non-resident pilots employed by Canadian airlines.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by
(a) reducing the compliance burden for employers under the GST/HST pension plan rules;
(b) providing the Minister of National Revenue the authority to withhold GST/HST refunds claimed by a business where the business has failed to provide certain GST/HST registration information;
(c) expanding the GST/HST exemption for publicly funded homemaker services to include personal care services provided to individuals who require such assistance at home;
(d) clarifying that reports, examinations and other services that are supplied for a non-health-care-related purpose do not qualify for the GST/HST exemption for basic health care services; and
(e) ending the current GST/HST point-of-sale relief for the Governor General.
Part 2 also amends the Excise Tax Act and Excise Act, 2001 to modify the rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons.
In addition, Part 2 amends the Excise Act, 2001 to ensure that the excise duty rate applicable to manufactured tobacco other than cigarettes and tobacco sticks is consistent with that applicable to other tobacco products.
Part 3 implements various measures, including by enacting and amending several Acts.
Division 1 of Part 3 amends the Customs Tariff to extend for ten years, until December 31, 2024, provisions relating to Canada’s preferential tariff treatments for developing and least-developed countries. Also, Division 1 reduces the rate of duty under tariff treatments in respect of a number of items relating to baby clothing and certain sports and athletic equipment imported into Canada on or after April 1, 2013.
Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to remove some residency requirements to provide flexibility for financial institutions to efficiently structure the committees of their boards of directors.
Division 3 of Part 3 amends the Federal-Provincial Fiscal Arrangements Act to renew the equalization and territorial formula financing programs until March 31, 2019 and to implement total transfer protection for the 2013-2014 fiscal year. That Act is also amended to clarify the time of calculation of the growth rate of the Canada Health Transfer for each fiscal year beginning after March 31, 2017.
Division 4 of Part 3 authorizes payments to be made out of the Consolidated Revenue Fund to certain entities or for certain purposes.
Division 5 of Part 3 amends the Canadian Securities Regulation Regime Transition Office Act to remove the statutory dissolution date of the Canadian Securities Regulation Regime Transition Office and to provide authority for the Governor in Council, on the Minister of Finance’s recommendation, to set another date for the dissolution of that Office.
Division 6 of Part 3 amends the Investment Canada Act to clarify how proposed investments in Canada by foreign state-owned enterprises and WTO investors will be assessed and to allow for the extension, when necessary, of timelines associated with national security reviews.
Division 7 of Part 3 amends the Canada Pension Plan to ensure that the Canada Revenue Agency can accurately identify, calculate and refund overpayments made to the Canada Pension Plan and the Quebec Pension Plan in a particular year by contributors who live outside Quebec.
Division 8 of Part 3 amends the Pension Act and the War Veterans Allowance Act to ensure that veterans’ disability benefits are no longer deducted when calculating war veterans allowance.
Division 9 of Part 3 amends the Immigration and Refugee Protection Act to authorize the revocation of temporary foreign worker permits, the revocation and suspension of opinions provided by the Department of Human Resources and Skills Development with respect to an application for a work permit and the refusal to process requests for such opinions. It authorizes fees to be paid for rights and privileges conferred by means of a work permit and exempts, from the application of the User Fees Act, those fees as well as fees for the provision of services in relation to the processing of applications for a temporary resident visa, work permit, study permit or extension of an authorization to remain in Canada as a temporary resident or in relation to requests for an opinion with respect to an application for a work permit.
It also provides that decisions made by the Refugee Protection Division under the Immigration and Refugee Protection Act in respect of claims for refugee protection that were referred to that Division during a specified period are not subject to appeal to the Refugee Appeal Division if they take effect after a certain date.
Division 10 of Part 3 amends the Citizenship Act to expand the Governor in Council’s authority to make regulations respecting fees for services provided in the administration of that Act and cases in which those fees may be waived. It also exempts, from the application of the User Fees Act, fees for services provided in the administration of the Citizenship Act.
Division 11 of Part 3 amends the Nuclear Safety and Control Act to authorize the Canadian Nuclear Safety Commission to spend for its purposes the revenue it receives from the fees it charges for licences.
Division 12 of Part 3 enacts the Department of Foreign Affairs, Trade and Development Act, sets out the powers, duties and functions of the Minister of Foreign Affairs, the Minister for International Trade and the Minister for International Development and provides for the amalgamation of the Department of Foreign Affairs and International Trade and the Canadian International Development Agency.
Division 13 of Part 3 authorizes the taking of measures with respect to the reorganization and divestiture of all or any part of Ridley Terminals Inc.
Division 14 of Part 3 amends the National Capital Act and the Department of Canadian Heritage Act to transfer certain powers, duties and functions to the Minister of Canadian Heritage from the National Capital Commission. It also makes consequential amendments to the National Holocaust Monument Act to change the Minister responsible for the construction of the monument to the Minister of Canadian Heritage from the Minister responsible for the National Capital Act.
Division 15 of Part 3 amends the Salaries Act to add ministerial positions for regional development responsibilities for northern Canada, and northern and southern Ontario. It also amends the Salaries Act to replace a reference to the Solicitor General of Canada with a reference to the Minister of Public Safety and Emergency Preparedness. It also makes an amendment to the Parliament of Canada Act to provide that the maximum number of Parliamentary Secretaries who may be appointed is equal to the number of ministers for whom salaries are provided in the Salaries Act.
Division 16 of Part 3 amends the Department of Public Works and Government Services Act to remove the requirement for the Minister of Public Works and Government Services to obtain a request from a government, body or person in Canada or elsewhere in order for the Minister to do certain things for or on their behalf. It also amends that Act to specify that the Governor in Council’s approval relating to those things may be given on a general or a specific basis.
Division 17 of Part 3 amends the Financial Administration Act to give the Governor in Council the authority to direct a Crown corporation to have its negotiating mandate approved by the Treasury Board for the purpose of the Crown corporation entering into a collective agreement with a bargaining agent. It also gives the Treasury Board the authority to require that an employee under the jurisdiction of the Secretary of the Treasury Board observe the collective bargaining between the Crown corporation and the bargaining agent. It requires that a Crown corporation that is directed to have its negotiating mandate approved obtain the Treasury Board’s approval before entering into a collective agreement. It also gives the Governor in Council the authority to direct a Crown corporation to obtain the Treasury Board’s approval before the Crown corporation fixes the terms and conditions of employment of certain of its non-unionized employees. Finally, it makes consequential amendments to other Acts.
Division 18 of Part 3 amends the Keeping Canada’s Economy and Jobs Growing Act to provide for increases to the sums that may be paid out of the Consolidated Revenue Fund for municipal, regional and First Nations infrastructure through the Gas Tax Fund. It also provides that the sums may be paid on the requisition of the Minister of Indian Affairs and Northern Development.

Economic Action Plan 2013 Act, No. 1

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I listened closely to what the member opposite was saying. I must say that I am upset by this government's approach to things.

We know that this bill is not unlike last year's omnibus bills, C-38 and C-45. We know that the Parliamentary Secretary to the Minister of Finance tabled a notice of motion at the Standing Committee on Finance in order to give committee members just five meetings to complete consideration of Bill C-60 and to ensure that clause-by-clause review of the bill is completed by May 27, which is just eight sitting days after the time allocation motion forces passage of the bill at second reading.

Does the hon. member think that five committee meetings will allow enough time to study this bill properly?

[Matthew Kellway, NDP, Beaches—East York, ON]

Mr. Speaker, I am almost sad to get up. I was enjoying the Conservatives and the Liberals going at it on the issue of economics when they should be embracing each other because they both practice the same austerity economics.

Before I start on the issue of Bill C-60, I do want to wish Marg Reilly a very happy birthday. Marg is a constituent of mine. It is a milestone birthday for her, and she is a person worthy of great celebration. Happy Birthday, Marg.

Today we are talking about Bill C-60, the budget implementation act. It is the final of five days of debate on the matter, owing to another Conservative time allocation motion, which is a new record for such motions. I dare suggest that there will be more such motions. There seems to be some kind of narcotic effect to these time allocation motions for those guys. It also, perhaps, is just the arrogance of power.

In his defence of the Conservative time allocation motion, the Minister of State for Finance described this legislation as “the blueprint of our government's mandate moving forward”. He “felt” that five days was more than enough time to debate the bill. As it turns out, what we have before us is another omnibus bill. It is certainly shorter than its predecessor, but still it involves amendments to nearly 50 pieces of legislation, and even introduces new legislation. That means that on average we have less than one hour of debate for each legislative change or legislative invention included under the bill.

Who would have imagined that those so-called champions of transparency and accountability, these parliamentary reformers who sit on the government side, would have ever stood in this place to justify such a limited level of scrutiny—on budget implementation, no less—for parliamentarians, much less to justify it on the basis of what they felt was appropriate, that those reformers would privilege their feelings over the traditions, institutions and processes of governing and government in Canada? It is most certainly a form of tyranny.

This is not simply an issue of process or principle, as those members like to portray it. This is about a government that is failing to do its best for this country and its citizens, a government that has deliberately set a target below the potential of Canada and its citizens. Never mind excellence, never mind maximization, never mind over-achieving, the Conservative government aspires to under-achievement, to less than what is possible, to less than our potential.

This is the recurring narrative in the April 29 economic and fiscal outlook produced by the Parliamentary Budget Office. I want to quote a bit at length here:

PBO projects real GDP growth in Canada to slow to 1.5 per cent in 2013 and remain below its potential growth rate until 2015. Combined with the sluggish recovery in the global economy, government spending restraint will act as an additional drag on growth and job creation. The projected weakness in growth keeps the economy well below its potential GDP through 2015 and as a result the unemployment rate remains relatively stable, averaging 7.3 per cent over 2013 to 2015.

It goes on to talk about employment in Canada being below its potential. That is on page 10, if anybody wants to reference that. It say that employment and “average weekly hours” for Canadian workers are below potential. That is on page 11. “Labour productivity” is below, which is, again, on page 11. Gross domestic product is “below potential”, on page 11 again.

How is all of this happening? Quite curiously, it is happening by design. As the economic and fiscal outlook says, “Over the period 2013 to 2017, PBO estimates that the net impact of [economic action plan] 2013 measures and revisions to spending levels on real GDP and employment is contractionary”. It is 67,000 jobs worth of contractionary, according to the report, which is a .57% reduction in GDP.

The PBO explains that does not mean that employment levels will be 67,000 jobs shy of where we are today. That is fair enough. The report explains it in these terms:

Rather, it means that, in the absence of these measures and revisions to spending levels, projected employment would be higher by 67,000 jobs, all else being equal.

The action in the government's economic action plan is:

...pushing the economy further away from its potential GDP and delaying the economic recovery.

This is worthy of the House's time for extensive debate. I want to know, and Canadians will want to know, why the deliberate path of action chosen by of the current government is to push the economy further away from its potential.

What is particularly perplexing is that the budget comes in the context of a Canada that is already so far shy of its potential.

The government has presided over a $67 billion trade deficit that is expected to worsen in the year ahead. That is thousands of jobs and billions of dollars leaving this country and going overseas to enrich others.

There are still almost 1.4 million Canadians out of work. There are 240,000 more young people unemployed today than before the recession.

Closer to my home, in Toronto, in my riding of Beaches—East York, I would note a recent report by the United Way and McMaster University showing that nearly 50% of jobs in southwestern Ontario are precarious jobs. A recent report by the Metcalf Foundation shows that the number of working poor is growing in the greater Toronto area. Reports by the Cities Centre at the University of Toronto show the continuing income polarization in our cities, particularly in Toronto, and extrapolate current trends to show a city with a completely hollowed-out middle class.

To be fair, this trend has carried through successive Liberal and Conservative governments, so we cannot blame it all on the guys on the other side.

The only employment numbers growing by a significant measure are for temporary foreign workers, spurred on by the government's inducement of paying significantly lower wages than for Canadian workers.

It is in this context that the government sees it wise to hit the brakes on the economy to constrain economic growth.

This is a set of circumstances that calls for a different kind of action, action that would put Canadians and Canadian cities, which are after all the engines of economic growth in a modern economy, to work—to begin at long last to undo the constraints on our economy, to realize the potential of our country and to make a more equally shared prosperity a goal for this country.

Let us look for a moment at the issue of infrastructure. Here is an economic opportunity that the government has failed to grasp.

By many accounts, the infrastructure deficit in this country is well north of $150 billion, and it continues to grow. We need to see this problem addressed, and soon. “A penny now or a dollar later”, as the 2012 Canadian Infrastructure Report Card puts it, meaning the cost of delaying needed repairs could cost us vastly larger sums down the road, yet over the next four years, federal infrastructure funding will be $4.7 billion lower than it was last year, despite some creative advertising by the Conservative government.

This so-called new infrastructure funding announced in budget 2013 includes funding from older, delayed projects. There is $6 billion worth announced in this new economic action plan that is masquerading as new money when it is actually existing funds that had been committed back in 2007.

This is a budget that would provide no relief for urban congestion in Canadian cities. Owing to successive uninterested Liberal and Conservative governments, the public transit system in Toronto has not grown in any meaningful way since 1980.

In conclusion, what the government needs to explain to Canadians is how it dares to occupy those benches over there when it puts forward a plan that would shrink this country rather than grow it, when it puts forward a plan that would take jobs from Canadians rather than create jobs for them, when it aspires to less than what we are capable of as a country.

How does the government explain that to the youth of this country who have their futures in front of them? How does it explain it to the seniors of this country, who left what they had built up in our hands not so that we could take it down, but so that we could continue to build upon it?

[Terence Young, Conservative, Oakville, ON]

Mr. Speaker, I am pleased to be participating in the debate today on the budget implementation bill.

The success of a nation is due to the manner in which society values its workers, its innovators and the way it allows everyone the opportunity to succeed and improve their lives through hard work and ingenuity. This is supported in a recent book, Why Nations Fail, by Daron Acemoglu from MIT and James Robinson of Harvard University.

Why Nations Fail provides a historical study of civilizations that have succeeded and failed and determines that civilizations have fallen or thrived based on, above all else, their political institutions. Governments thrived when they provided the rule of law, secure property rights and a strong independent judiciary. Good government prevents any elite from extracting the wealth out of a country for themselves and spreads opportunity around.

Geography, culture and resources, all gifts that Canada has in abundance, take a back seat to good government that is responsive and accountable to its citizens in this manner. When money can travel over wireless networks in a split second and investors from anywhere in the world can invest anywhere else in the world within a matter of minutes, people will invest in a nation that will secure their investments and grow them with minimal risk. The people of those nations benefit with jobs and opportunities, as Canadians do.

Canada's economic action plan for 2013 is part of an economic process. It is in its seventh year. It began in 2006, from our Minister of Finance and Prime Minister. It prioritizes stability, prudent fiscal management and careful stewardship of our economy, something that most of Europe and the U.S. are struggling toward.

How is Canada doing? Most Canadians know these facts. Canada has had the most stable and sound financial system in the world for five years straight. Canada is the number one place in the world to do business. Canada has the highest possible credit rating from the three major rating agencies. We are in the best fiscal position of any of the G7 countries. We have the lowest government net debt to GDP ratio in the G7. During the recent recession Canada did not have to bail out a single bank. By 2015 we will have a balanced budget without putting our hands in the pockets of taxpayers and business owners for new taxes.

However, what some members of the House do not understand is that none of this happened by accident. This was achieved by good management and tough decisions. Let me give a few examples.

Back in 2006, when the U.S. government allowed risky mortgages that covered the entire value of the house, plus in some cases even the furniture, our government tightened up the mortgage rules, asking for higher credit ratings and stopping the 40-year terms the banks were pitching. This helped save Canada from a U.S.-style housing crisis. Despite our deficit, created to fight the 2008 recession, and the difficult task of limiting spending now to balance our national budget, just last year the NDP and Liberals wanted to send billions of our tax dollars to Europe to bail out governments that have not made the tough decisions we are making. We said, “No way”.

We would never consider the NDP plan to grab $60 billion out of the pockets of business owners, shareholders and workers, although personal debt is at an all-time high. Given the chance, that plan would include a death tax on the wealthy, promoted by the NDP academic branch at the Broadbent Institute. Of course, the definition of wealthy would be anyone who had perhaps $50,000 a year after they die, which is about the cost of a parking space at a condo in downtown Toronto.

Democracy is sharing power. Sound economics and strong institutions support that sharing and ensure the security of all Canadians, not just the wealthy. That is why those who are not wealthy are often the first to support Conservative budgets. In bad times the wealthy do all right, but those who are not wealthy are at the risk of losing everything. They have the most to lose when governments overspend for decades and go bankrupt. They are the ones who line up at the EI office. A good budget must balance the interests of all citizens, while not confiscating the earnings of entrepreneurs.

Where democracies get into financial trouble is when the public sector grows out of control and confiscates more than the private sector can afford to pay. Bill C-60 would implement a budget process that would reduce the size and cost of government, to be affordable. The budget would reduce full-time equivalents by attrition and eliminating positions and would reduce spending by another $600 million a year. The budget would be balanced by 2015.

On the other side of the floor, there are a lot of members who believe in their heart of hearts that governments exist to decide who gets what. They want to be the ones who write the rules for everyone else to divvy up the pie. They actually think that governing is like contract bargaining. What they do not understand is where wealth comes from. That is our focus. We cut it down, dig it up, manufacture it, reap it from the soil, add value through trade, and we must do it all better through innovation. The budget would help entrepreneurs and businesses that take risks and innovate to create wealth and new jobs for others.

There is something else they do not get. This is a free country, and when taxes get too high people and businesses leave.

I have seen this happen when the NDP, under the leadership of the then member for Toronto Centre—Rosedale, was in power as the NDP premier. The taxes in Ontario became the highest in North America: businesses left in droves; unemployment skyrocketed; government revenues crashed; and government debt more than doubled, from $38 billion to almost $100 billion. Ontario was essentially bankrupt.

As Dr. Phil says: “How's that working for them in Europe today?” Well, how about Greece with 27% unemployment, or Cyprus where bank deposits are being confiscated, or Portugal where the unemployment rate has reached 17%? It is no surprise that these countries are not prospering.

In Canada, we offer a vast land of opportunity which supports and rewards hard work while protecting people's human and property rights. This government values that above all else.

Budgets must be realistic and express tough decisions made for the long-term success of our country. This budget is building a foundation and structure for a secure future for our children and grandchildren. It closes tax loopholes for tax fairness and improves the integrity of the tax system. It supports innovation and research, and it is a commitment to Canadians that their economy is on the right track. Its success is founded on two major platforms: the first is paying down the debt on time and without excuses; and the second is strategic investment in growth and innovation.

The year 2013 began with a welcome announcement in my riding of Oakville when our Prime Minister visited Canada's largest Ford plant, the Oakville assembly plant, on January 6. The Prime Minister was there to announce an investment of $250 million in the automotive innovation fund to 1,000 CAW folks who build these high-quality low-emission cars. The fund is for auto industry firms undertaking large-scale research and development projects that are focused on innovative, greener and more fuel efficient vehicles. The fund is working.

The money invested in Ford's Windsor engine plant originally created 450 full-time jobs, but since then it has grown to 600 full-time jobs. What is more impressive is that there are 3,000 people working at the Oakville assembly plant who now work full-time as a result of investments made by this government in 2006.

Other projects supported by the AIF include Toyota Motor Manufacturing Canada's project green light, which includes the production of the RAV4 electric vehicle at Toyota's plant in Woodstock; Magna International's development of clean vehicle technologies, including energy-efficient components and innovative powertrain parts for next-generation vehicles; and construction of a new Toyota blended assembly line that will permit the simultaneous production of both the current Lexus model and the hybrid model.

Perhaps our single biggest problem at this point in our history is addressed in this budget. With hundreds of thousands of Canadians hitting retirement age in the next few years and the emergence of the knowledge economy, the Canadian Chamber of Commerce says that without action we could have over 500,000 unskilled workers who will not be able to find work by 2016. Without action in this budget, there could be over one million skilled job vacancies by 2016. The former president of Seneca College, Rick Miner, summarizes the problem in the title of his report, “People without Jobs, Jobs without People”.

The most significant contribution of this budget is perhaps the creation of the Canada job grant, which could provide $15,000 or more per person, with matching funds to match people with jobs. This fund will help up to 130,000 Canadians with access to training for the jobs that are available. This will be at community colleges, career colleges and trade union training centres.

This budget and our previous budget have demonstrated that Prime Minister Harper and our Minister of Finance are building our nation to heights we have never seen before—

[Hélène Laverdière, NDP, Laurier—Sainte-Marie, QC]

Mr. Chair, I would like to say that I will present a motion to this committee next Thursday to have it submit a report to the House and request that the House give the Standing Committee on Finance the authority to separate Bill C-60 into six separate bills that could be sent to the appropriate committees. My motion will indicate which committees it could all be sent to.

Thank you very much, Mr. Chair.

[Kevin Sorenson, Conservative, Crowfoot, AB]

Mr. Speaker, it is an honour to rise in the House again and to speak in support not only of the budget but also of Bill C-60, which is the budget implementation bill. It lays out the measures the Conservative government will bring forward in the economic action plan for 2013 and onward.

One of the reasons why I am pleased to stand and speak to the budget bill is the amount of work that we did in the riding of Crowfoot. Prior to the budget being given, we had meetings throughout the riding at Strathmore Town Hall and other town halls where constituents came together to say what they believed was important to have in the budget. I am going to talk a little more about how some of those ideas have been moved here and how our Minister of Finance and our government are implementing some of those ideas that come from back home and from many different constituencies across this country.

I believe, first of all, that this is a very positive blueprint, a very positive strategy as to how we believe the Canadian economy must be advanced and built. We would be strengthening the economy in a number of ways through this budget implementation bill.

First of all, we would be helping manufacturers to buy new equipment through tax relief. We would be helping small business create more jobs with the hiring credit. We would be helping our municipalities rebuild roads and bridges with record new support in infrastructure, and there is much more.

This budget builds on the work our Conservative government has been doing since forming government in 2006. We are working to create an economy that will build jobs. It is not that our government is going to create jobs; we are going to create an environment in which small and medium-sized businesses can create jobs and make certain that those families that now have jobs will be able to keep more of their money in their pockets.

Canada has been quite successful. We have over 900,000 net new jobs since the depths of this recession took place. More than 90% of those 900,000 jobs that have been created are full-time jobs, contrary to what many of the opposition members say when they say that these are the wrong kinds of jobs, part-time jobs, just not the right kinds of jobs. Some 80% of the jobs are in the private sector. This is not job creation through continuing to expand the size of government. The majority, 80%, are in the private sector.

Canada has a very good record as far as job creation goes. In fact, we have the best record of the seven most industrialized countries in the world, the G7. The International Monetary Fund and the Organisation for Economic Co-operation and Development project that Canada's growth will be among the strongest in the G7 for a number of years going forward.

For the fifth straight year, the World Economic Forum has ranked Canada's banking system as the soundest in the world. Canada has the lowest overall tax rate on new business investment in the G7. Canada is one of the few countries that still has the Triple A credit rating. Our combined national debt to gross domestic product ratio remains the lowest in the G7 by far. Why? It is because there is a plan and a strategy. The strategy in the past five years has been working, and the strategy moving forward is building on that and will continue to work, although the opposition feels somewhat concerned because the statistics that are coming out are exactly what Canadians, including my constituents, want to hear.

The opposition members call for more spending—spend, spend, spend—and they have the tax increases to pay for their spending. I am not going to talk much about the $20 billion or $21 billion carbon tax they are discussing, but they have an idea on how government can be expanded, how government can get bigger, and they would love to see that happen.

One of the reasons I am pleased with this budget is that government expansion is not going to happen under this watch. Opposition members would expand government and add to the national debt. What happens to countries that take that route? What happens to countries that choose to go down that road?

Canadians do not have to just sit back and surmise what may happen. We can take a look at what did happen in Europe. Governments burdened their citizens with unmanageable annual budgetary deficits, massive accumulated debt, huge and paralyzing government bureaucracies. What about unemployment in some of those countries? Unemployment in the eurozone tops 12%. In some of the countries, it is much higher than 12%.

Our Conservative government understands that Canadians want us to continue to emphasize the importance of maintaining Canada's strong fiscal position, especially during current difficult global economic times. To be quite frank, that is one of the major reasons we were elected. One of the reasons we were elected to a majority government is they understood this Prime Minister is the Prime Minister Canadians want to see, especially at a time when the global economy is in turmoil. Canadians want that type of leadership. Canadians know that our Prime Minister and Minister of Finance have built a stellar reputation for Canada in the international marketplace. Canadians want a stable government, one that is capable of making decisions, sometimes swiftly, and implementing them.

For many years I have heard from my constituents in all corners of the riding of Crowfoot that I represent about the importance of balancing our books. My constituents want our federal government to operate without having to borrow money to pay for a deficit every year. My constituents are farmers, ranchers and small business operators. The gas and oil sector is major in my riding of Crowfoot, but we also have a tourism industry in Drumheller and the Canadian badlands that is somewhat seasonal.

All of the families in my riding, from smaller towns, villages and cities, are all very careful in how they operate, and they want to balance their budgets around their kitchen table. That is the type of discussion they have. How are we going to be able to pass this farm on to the next generation? How can we operate within a balanced budget?

Our government is on track to balance the budget. One of the things that made me very pleased in the last budget speech was when our Minister of Finance rose and said, “...before I proceed, I need to make one thing very clear. It is simply this. Our government is committed to balancing the budget in 2015.” When he stood and said that, a burden was lifted off my shoulders, because that was the message that my constituents wanted to hear.

On page 12 of the budget there is a chart that says in 2012-13 there is a projected deficit of just over $25 billion; in 2013-14 we will have a deficit of $18.7 billion; in 2014-15 we will have a deficit of over $6 billion; and by 2015 we will be at a surplus of almost $1 billion. In the two years after the budgetary surplus, it is projected to grow by $4 billion and then $5 billion.

How are we projecting? We see the official opposition coming forward with these budgets with nothing costed, nothing planned out and nothing on paper. We have a very concise strategy that has worked in the past, is working now and will continue to work in the future.

From 2006-08, our government paid down approximately $37 billion in debt. When the global recession hit, we made a deliberate decision to run temporary deficits to protect the Canadian economy, and that plan worked.

We have helped create over 900,000 net new jobs, and we are on track to come back to balanced budgets. At the same time, we are doing things. The deficit reduction action plan is recognizing that we want to quickly come to balanced budgets.

We have an ongoing effort to control government spending. We work continuously to eliminate wasteful and inefficient spending. In total, our government implemented measures that will reduce the deficit by over $15 billion per year in 2014, 2015 and beyond.

Economic action plan 2013 announced saving measures that will total $2 billion by 2015-16, such as examining departmental spending to make sure we are operating efficiently, reducing travel costs, modernizing the production and distribution of government publications, and standardizing government information technology to reduce costs. We are closing tax loopholes. We are improving compliance programs to reduce tax evasion.

These are some of the things that this book of 300-plus pages lays out for Canadians to hear and see. Again, it is a pleasure to speak to this budget, and we look forward to all support on this budget.

[Jean-François Fortin, Bloc, Haute-Gaspésie—La Mitis—Matane—Matapédia, QC]

Mr. Speaker, I rise on behalf of the Bloc Québécois members to voice our views on the Conservatives' recent budget.

Although the federal government claimed it would negotiate pragmatic agreements with the Government of Quebec in good faith, instead it is directly attacking Quebec's unique approach with measures announced in budget 2013 and Bill C-60, the budget implementation bill.

I would like to ask the government what happened to negotiating in good faith. Where were the negotiations on the labour program that will deprive Quebec of millions of dollars? Where were the negotiations on abolishing the tax credit for labour-sponsored funds? Where were the negotiations on higher taxes for the Caisses populaires Desjardins, which will wipe out a portion of Quebec members' dividends? Where were the negotiations following the unanimous vote by the National Assembly to retain Quebec's jurisdiction over securities? Where were the negotiations after the National Assembly's unanimous vote to keep Quebec's approach to homelessness? Where were the negotiations following the unanimous vote by the National Assembly against changes to worker training? Where were negotiations following the unanimous vote by the National Assembly against changes to employment insurance? Where were negotiations when the federal government imposed, once again, the “Ottawa knows best” doctrine to the detriment of Quebec's organizations and Quebec's approach? Where were the negotiations with Quebec when the federal government decided to finance the Lower Churchill project? Where were the negotiations with Quebec following the recognition of the Quebec nation?

There are many eloquent examples of conflicts.

Let us talk about employment insurance. As hon. members will recall, previous budgets have chipped away at the very foundation of our social safety net: government services and the old age security program.

Budget implementation Bills C-38 and C-45 were also a direct attack on seasonal workers and the regional economy of some areas of Quebec.

To justify its employment insurance reform, which harshly penalizes the economy in regions like the Lower St. Lawrence and the Gaspé, the government claims that it is trying to connect unemployed workers to available jobs, but really, it is tearing up its labour market agreement with Quebec, which helps unemployed workers find jobs.

In the last couple of budgets, the federal government has been trying to centralize Canada's economic development at the expense of Quebec's land use strategies, the well-being of the people in the regions and regional economic development. The federal government is trying to gradually strip us of our dignity and our pride in our distinct identity.

With last year's budget, it was clear that the Prime Minister was continuing to build his version of Canada based on his values and interests. He proved that there was no room for Quebec to develop within that model. This year's budget is simply more of the same.

Budget 2013 is a direct attack on the way Quebec does things. As for labour market issues, Ottawa will take away millions of dollars from Quebec that helped the unemployed find jobs.

In its place, the federal government is pushing a program that will force employers and the Quebec government to provide more money if they want the federal government to contribute. In order to hand out cheques with the maple leaf on them, the federal government is ready to axe initiatives that are working well.

Ottawa also wants to bring in a new formula whereby the federal government, the provinces and employers would put in up to $5,000 each to train workers. Although worker training falls under provincial jurisdiction, the federal government is stubbornly forging ahead, to the detriment of our financial services industry. The Quebec Minister of Finance has also criticized this.

Now I would like to talk about labour-sponsored funds. The elimination of the labour-sponsored funds tax credit is another direct attack on Quebec and its workers.

In addition to impoverishing people who are trying to save for their retirement, the federal government is also going to deprive Quebec SMEs of a key economic lever. Labour-sponsored funds are an integral part of Quebec's economic organization, as demonstrated by the fact that $312 million of the $355 million Ottawa plans to take away from workers will be from Quebec.

The Chantier de l'économie sociale has strongly criticized the abolition of the federal tax credit for labour-sponsored venture capital corporations, such as the Fonds de solidarité FTQ and Fondaction CSN. Quebeckers, including unionized workers, use these funds as savings vehicles and commit to helping develop Quebec businesses, such as social economy businesses.

Bill C-60 again includes provisions on securities, as mentioned in the latest budget. The federal government is extending the mandate of the Canadian Securities Transition Office and still insists on creating a Canada-wide securities commission, despite clear decisions from the Quebec Court of Appeal and the Supreme Court.

In response to the federal government's budget, the Government of Quebec said, “Allowing the federal government to insinuate itself in securities regulation, which is within Québec’s exclusive jurisdiction, is out of the question.”

We have long known that Canada's Minister of Finance dreams of getting his hands on Quebec securities. Even after he was turned down by the Quebec National Assembly and the Supreme Court of Canada, the minister has not concealed his intentions to interfere in Quebec's key financial sector.

I would like to talk about homelessness and how the government does not respect Quebec's way of doing things. In its latest budget, the federal government said it supports the housing first approach, which could threaten community-based, universal homelessness initiatives that currently respond to very real needs in Quebec.

According to the Réseau Solidarité itinérance du Québec, all of the support services for some 50,000 people who are homeless or at risk of being homeless are in jeopardy as a result of the federal government's new policy. The federal government's actions on homelessness are worrisome. In addition to reducing funding, Ottawa wants to impose its housing first approach, which will force Quebec to sacrifice its expertise and the programs tailored to its needs. The National Assembly unanimously denounced Ottawa's attitude and asked that the homelessness strategy be redesigned according to the existing model and in compliance with Quebec's policies.

The Bloc Québécois thinks that the federal government's approach is unacceptable. It could severely hamper the work that people have done over the years on this issue. It would disregard the expertise that has been developed over time to reach the people in need most effectively. This is a direct attack on Quebec's way of doing things.

I would now like to talk about health transfers and social programs. Budget 2013 is one step closer to a $36 billion reduction in federal health transfers. It will have devastating consequences on Quebec's finances because it imposes new agreements for equalization, health transfers and social programs and withdraws money transferred to Quebec for worker training. This is essentially a slap in the face for Quebec. To achieve a zero deficit, the Conservatives, like the Liberals before them, are lobbing the deficit into Quebec's court. Budget 2013 ushers in fiscal imbalance once again.

For all these reasons, and many others, the Bloc Québécois will not support the next federal budget, a budget that is unfair to Quebec, takes aim at Quebec and takes away some of its fundamental powers.

[Ben Lobb, Conservative, Huron—Bruce, ON]

I do not think so.

When we focus on what we have gone through in the global economic downturn and we look at how we have come though it, there is a lot to be proud of in what this government has been able to do. Now the rest of the world is looking at Canada as the example of how to make it through and continue to provide a balance between keeping an eye on the bottom line while being able to make strategic investments to help grow our economy.

Since July 2009, we have seen the Canadian economy add over 900,000 jobs. Our employment levels are nearly back to where they were in pre-recession levels. The typical Canadian household now pays more than $3,000 less in tax each year, and seniors pay more than $2,000 less each year. We have reduced the GST to 7% and harmonized the 7% and 5%. It has made a big difference, especially in the province of Ontario, which I represent. We on this side have a lot to be proud of.

The opposition members have continued to criticize what we have done. However, time and time again we have proven them wrong. We continue to deliver for Canadians and the Canadian economy.

One point I would like to highlight with respect to Bill C-60, our budget implementation bill, is the gas tax fund. This has been an important mechanism for municipalities, and in my area, the counties, to continue to deliver on key infrastructure projects. We know that in 2009 our government doubled that from $1 billion to $2 billion, which was a huge investment commitment to our communities. Whether those projects are water, sewer, roads or bridges, it has provided the municipalities with long-term stable funding. It is ironic that at a time when Ontario is clawing back what it provides to rural municipalities, our government, in spite of a deficit and tough economic times, has continued to deliver that funding to our municipalities. With this BIA, we are expanding and indexing that. More importantly, we are expanding the number of areas that can be covered and where we are making investments for municipalities, such as economic development, shipping, whether through water, rail or airports, and broadband, to allow them to continue to develop and grow.

That is a key and important factor for economic development in the municipalities and counties in rural southwestern Ontario. Also, it is important to be able to apply some of that to economic development and tourism in the riding of Huron—Bruce, which from north to south along Lake Huron on the west side is known as Ontario's west coast. It is important that our municipalities can continue to deliver services to American tourists as well as those from the cities, so they can enjoy what we have and, more importantly, drive on safe roads and have safe reliable water and sewer services.

I will provide some information just to give members an idea of the scope and scale dollar-wise that we are able to deliver on.

When our government came into office in 2006, Bruce County received just a little over $600,000 in funding; Huron Country received $582,000; and Central Huron, the municipality within which I live, received $76,000.

In the 2011-12 budget year, the annual investment made by our government into Bruce County had more than tripled, to nearly $2 million from $600,000 just a few years ago. For Huron County it was $1.8 million, and for Central Huron it was $234,000.

The opposition likes to do a lot of talking and criticizing, but the fact is that those are real dollars going into our communities that are helping to make our roads better, our sewers operate at a higher efficiency and our drinking water clean. As we move forward, it would provide great opportunities for the topics I have mentioned in the past. These are all positives.

FCM is strongly behind us, as is the Association of Municipalities of Ontario, AMO. As well, if we look at the average age of our infrastructure, it is coming down from 17 years on average to 14 years. That is delivering.

I have not mentioned the massive commitments we made through the downturn, through RInC and accelerations through the building Canada fund, which helped to get projects on the go. In my riding where there is a huge number of contractors and so forth, it kept them at work and allowed them to make new investments in their machinery and keep people on. I think that really helped deliver, and it is something we can all be proud of, at least on this side of the House.

Another area we need to focus on, which some of my colleagues have touched on, is the commitment to the last post fund. For people watching at home and members in opposition who are listening, I should mention that our government, in the face of recession and economic downturn, maintained our funding to veterans. We did not cut and run, we did not duck, but we maintained our investment and funding to our veterans. Members can go back just a few short years to see the investments we made with the new veterans charter. We completely enhanced it.

I can hear the member for Malpeque pecking away, and usually when the truth and the facts start coming out, his blood pressure starts to go up. He was there 20 years ago when the Liberals went in and slashed benefits to veterans, especially our allied vets, the whole gamut. However I will try to stay focused on the last post fund at this time.

We would double the amount we commit to veterans in need from $3,600 to more than $7,200 a year. This is important because those men and women served us well in World War II and in Korea; they put their lives on the line. When they came back from battle, some had ailments or impairments, which they likely lived with for their entire lives. However, through the hard knocks of life sometimes, maybe the finances did not come out as they would have hoped, which is why we are here for them today, so they can receive a funeral that represents their commitment and sacrifice to the country.

It is a shame, specifically when looking at this, that the opposition would not support this bill just on that alone. It would show the support, that this can be a non-partisan event and that we can all vote together on this BIA to show veterans from one coast to the other that we are all in it together with them on this.

The last post fund runs this program in a highly efficient manner. Every dollar it receives goes toward the program and there is virtually nothing in it for administration. The fund does a great job, and I am very proud that we would be able to deliver and in a way that respects its work.

I previously worked in the manufacturing sector, and I wanted to touch upon the fact that our accelerated capital cost allowance would be renewed for two years at 50% from the previous 30%. Basically, this would allow businesses to make investments right off their machinery in three years instead of nine years, which is hugely important, especially in Ontario because of its manufacturing and industrial base.

I could do a 30-minute speech on all the investments we have made in manufacturing in Ontario and, Mr. Speaker, being from Windsor, you would certainly know of some of those investments that have benefited your region. However, I am sure members of the opposition have a question or two, maybe even the member for Malpeque, and I welcome them.

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, I am honoured to rise in the House today to speak to Bill C-60, a bill that is focused on what matters most to Canadians: jobs, growth and long-term prosperity.

Canada has experienced one of the best economic performances among the G7 countries, both during the global recession and throughout the recovery. Due to our strong economic policies, our global reputation is highly respected and admired by countries around the world. It has earned us, for the fifth year in a row, the reputation of the soundest banking system in the world from the World Economic Forum.

Bill C-60 would only enhance this strong record with decisive action in all areas that drive economic progress and prosperity. This includes connecting Canadians with available jobs, helping manufacturers and businesses succeed in the global economy, creating a new building Canada plan, investing in world-class research and innovation, and supporting families and communities.

Our government understands that, while we have a strong economic reputation, we need to remember that Canada is not immune to the instability of the global economy. We need strong leadership, and that is exactly what our government would provide with Bill C-60, as I will outline in my remaining time.

In my riding of Oxford, manufacturing is the source of employment for many residents and is one of the key engines of the Canadian economy. Since 2006, our government has supported the manufacturing industry by lowering business taxes to 15%, which allows manufacturers to keep more of their money to invest and hire more employees; investing $110 million to double support to manufacturers and other entrepreneurs through the industrial research assistance program; eliminating the job-killing corporate tax; and much more.

With Bill C-60, we would provide even more support for new investments in machinery and equipment for the manufacturing and processing sector. This would be done by extending the accelerated capital cost allowance for two years, which would increase the support for manufacturers by almost $1.4 billion. I know this support would benefit manufacturers in Oxford and across Canada.

Our government believes in keeping taxes low for all Canadians. Since 2006, we have cut taxes more than 150 times, reducing the overall tax burden to its lowest level in 50 years. That translates into a total savings of $3,200 for a typical Canadian family of four.

We would build on these already astounding savings with even more tax relief for Canadians. In Bill C-60, we would eliminate consumer tariffs on babies' clothing, sporting goods and exercise equipment. In total, this would provide $76 million in tariff relief for Canadians.

We would also introduce a temporary first-time donor's tax credit to encourage more Canadians, and those who had not donated recently, to give to charity. This would not only help a plethora of charities but also provide $25 million in annual tax relief. The savings just keep getting better and better under our government.

Youth are the future, and that is why our government believes in providing young Canadians with the information and opportunities they need to make smart education and employment decisions. Our investments in youth since 2006 have included expanding the eligibility for Canada student loans through a reduction in the expected parental contribution; investing more than $300 million per year through the youth employment strategy to help young Canadians get the skills and work experience they need to transition into the workplace; and reducing the in-study interest rate for part-time students to zero, saving them approximately $5.6 million per year.

In Bill C-60, we would support Canadian youth even more by providing funding of $18 million in multi-year support for the Canadian Youth Business Foundation. This foundation is a national not-for-profit organization that works with young entrepreneurs between the ages of 18 and 34 by helping them become the business leaders of tomorrow through mentorship, expert advice, learning resources and start-up financing. Over the past 10 years, the foundation has worked with 5,600 new entrepreneurs, helping to create 22,100 new jobs across Canadian communities.

Canadian farmers are the backbone of our country and represent an important industry in my riding of Oxford. For generations, our farmers have fed Canadians and the world while providing jobs and opportunities across Canada.

Our government has supported Canadian farmers with strong investments and programs since 2006. We have provided over $7 billion to farmers through a new suite of business risk management programs, including AgriStability, AgriInsurance, AgriInvest and AgriRecovery; over $2.3 billion toward Growing Forward 2, which invests in innovation, competitiveness and market development for Canada's agriculture sector; $370 million to the hog industry; support for debt restructuring to help sustain the industry and much more. In Bill C-60, we would be supporting farmers across Canada.

We would provide $165 million in multi-year support for genomics research through Genome Canada. This funding would enable Genome Canada to launch new large-scale research competitions over the next three years, would support continued participation by Canadian genomics researchers in national and international partnership initiatives, and would maintain Genome Canada's operations and the operations of the regional genome centres and science and technology innovation centres until the end of 2016-17.

We owe a lot of gratitude to our Canadian veterans who fought with bravery and courage for the freedom we enjoy today. We will always be indebted to them for the great sacrifices they made. Our government stands up for veterans, and that is why in Bill C-60 we are improving the war veterans allowance program. This program provides assistance to low-income veterans of the Second World War and the Korean War, as well as their survivors. Under the current program, a veteran's total calculated income includes a disability pension provided by Veterans Affairs Canada. This pension is automatically deducted from the amount of benefits available to veterans and survivors under the war veterans allowance. Amendments in Bill C-60 will no longer allow the government to take the disability pension into account when determining eligibility and in calculating benefits provided under the war veterans allowance. Under this government, veterans will be taken care of and will never be forgotten.

An investment in Canada's public infrastructure creates jobs and economic growth and provides a high quality of life for families in every city and community across the country. Canada's economic prosperity is supported by a network of highways and roads, waste water infrastructure, transit systems and recreation and cultural facilities. This network reaches into every community and touches every Canadian. In recognition of the importance of efficient prosperity and quality of life, our government has made significant investments since 2006 to build roads, bridges, subways, rail and much more.

In Bill C-60, we are continuing this support through the community improvement fund. This fund includes $21.8 billion over 10 years through the gas tax fund payments. Currently at $2 billion per year, we are proposing that these payments be indexed at 2% per year starting in 2014-15, with increases applied in $100-million increments. The list of existing eligible investment categories would be expanded to include highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, brownfield redevelopment, culture, tourism, sports and recreation. The fund would also include $10.4 billion over 10 years under the incremental GST rebate for municipalities to provide communities with additional resources for the maintenance and operation of existing public infrastructure and facilities.

Canada's gas tax fund would provide predictable and long-term funding for Canadian municipalities to help them build and revitalize their public infrastructure assets.

I am proud of the investments our government is making with Bill C-60. I and the residents of Oxford look forward to the speedy passage of Bill C-60, and I encourage all parliamentarians to seize this opportunity of unity in Parliament and give Canadians what they deserve, and in many cases, what they desperately need.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Thank you, Mr. Chair.

First of all, I would just like to follow up on Ms. McLeod's comments. As we have the perfect right to do, we gave notice of a motion on this same topic that probably took about three and a half minutes to introduce. We are taking an additional 15 minutes or so to discuss a motion put forth by Ms. Glover on the same topic. So if she believes that my three minutes undermined the work of the committee, I'd like to hear her comments about the motion we're discussing right now.

On the substance of the motion, we have serious concerns about this. The motion put forward by Ms. Glover proposes that other committees be asked to study parts of this omnibus bill, Bill C-60, but it does not allow them to have the opportunity to amend the bill or to vote on those proposed amendments. In essence, they're calling witnesses in a bit of a void, whereas the finance committee will subsequently be asked to vote on clauses of the bill without actually having the benefit of the testimony that has been heard before all of these other committees.

We went through a very similar process with Bill C-45, and frankly, Mr. Chair, it was a sham. The committees did not have adequate time to be able to study the bill in detail. Some were not able to study it at all. Some were able to call officials and that was it. There were no recommendations that came forward from any of the committees that were looking at it, and then this committee was asked to debate and vote on this bill in totality, on a clause-by-clause basis, without having heard the testimony from all of these witnesses.

I also want to address the section of the motion, section (c), that asks members, any member, to submit their amendments to the committee, including members who have no caucuses, who are not normally represented on this committee. Without them being here and without other members having the opportunity to move these amendments, I question the validity of that process. It's not our normal procedure. Normally you have to be present and in your place to move an amendment. So I seek your judgment on this, Mr. Chair, in terms of this procedure, which is certainly unprecedented in my experience here.

Now, I understand the goal—I believe I understand the goal—which is to dissuade this process from being in the House of Commons and having extended voting in the House of Commons with all of the members. I guess what it could come down to is that the six members of the Conservative Party at the finance committee would therefore have the power to make decisions, rather than the 308 members in the House of Commons. That seems to me to undermine our normal procedure.

Those are some of the concerns we have about this motion, Mr. Chair.

[Joy Smith, Conservative, Kildonan—St. Paul, MB]

Mr. Speaker, in my time today I would like to spotlight the really positive measures in economic action plan 2013.

Today's bill would ensure that Canada keeps a strong position relative to so many other countries in the world and avoids the mistakes of so many others around the world as well. It would do that by promoting jobs and growth, and supporting families and communities across the country, all while respecting taxpayer dollars. There are literally so many great and positive measures in the bill that I want to quickly run down the list for Canadians at home.

To build a strong economy and promote job growth, here are just a few of the great things in the bill: We are extending tax relief for new investments in machinery and equipment by Canadian manufacturers. We are indexing gas tax fund payments to better support job-creating infrastructure in municipalities across Canada. We are extending for one year the mineral exploration tax credit.

Our government is providing $165 million in multi-year support for genomics research through Genome Canada. To help young entrepreneurs grow their firms, our Conservative government is providing $18 million to the Canadian Youth Business Foundation. This government is also providing $5 million to Indspire for post-secondary scholarships and bursaries for first nations and Inuit students.

And there is so much more good news in the budget for Canadians.

To support families and communities we are also doing so many great things, and I want to explain how that transpires. Our Conservative government is promoting adoption by enhancing the adoption expense tax credit to better recognize the costs of adopting a child. We are introducing a new first-time donor super credit for first-time claimants of the charitable donations tax credit to encourage all young Canadians to donate to charity. To better meet the health care needs of Canadians, our government is expanding tax relief for home care services.

We are removing tariffs on imports of baby clothing and certain sports equipment. This will help families all across the nation. Our government is providing $30 million in the 2013-14 budget to support the construction of new housing in Nunavut. We are investing $20 million in the Nature Conservancy of Canada to continue to conserve ecologically sensitive land. We are providing $3 million to the Pallium Foundation of Canada to support training and palliative care for front-line health care providers. As members know, we have an aging demographic in our country and this is extremely important.

Our government is committing $3 million to the Canadian National Institute for the Blind to expand library services for the blind and partially sighted. I just met with some members from that community and they are so grateful for this $3 million because it will enhance their quality of life. We are supporting veterans and their families by no longer deducting veterans' disability benefits when calculating other select benefits.

And we are doing so much more.

I honestly have to ask NDP and Liberal members opposite: how can they possibly vote against these great items? How can they possibly vote against all these positive measures for Canadians? How can they oppose helping the blind get library services? How can they oppose supporting palliative care? How can they oppose helping out our veterans? Along with their constituents at home, I am waiting for the answer.

Unlike the opposition, our government understands that Canadian businesses big and small are faced with new economic challenges originating beyond our borders. That is why Canada's economic action plan would lower taxes, slash unnecessary red tape and improve conditions for new and growing businesses. The economic action plan 2013 act proposes the next wave of initiatives to preserve these gains and create high paying, value-added jobs for Canadians.

On the advice of the Canadian manufacturing industry, we are providing $1.4 billion of tax relief to the manufacturing sector through a two-year extension of the temporary accelerated capital cost allowance for new investment in machinery and equipment. This tax relief would encourage manufacturers and processors to continue to invest in machinery and equipment, making their operations more productive and globally competitive.

While the NDP would have us give tax breaks to Chinese companies, extending the temporary capital cost allowance for machinery and equipment would help keep our jobs where they belong, right here in Canada. We know it works.

Listen to the Chemistry Industry Association of Canada, which told us:

Measures like the ACCA for new manufacturing machinery and equipment can make the difference between a company investing in Canada, or taking its business--and the stable, high-paying jobs that go along with it--elsewhere.

While manufacturing and exporting are at the heart of our economic action plan, improving our infrastructure is also crucial to delivering Canadian goods and services to markets as efficiently and cost-effectively as possible. Bill C-60 also proposes to index gas tax fund payments to better support job-creating infrastructure in municipalities across Canada. This is a very important component of our new 10-year building Canada plan, unveiled in budget 2013, which would fund infrastructure like roads and bridges from coast to coast to coast.

The feedback from our municipal partners has been overwhelmingly positive. Just listen to the words of the Association of Municipalities of Ontario, which told us that indexing the gas tax fund payments:

...recognizes that all types of municipal infrastructure can contribute to public safety, better quality of life and economic growth.

...An indexed Fund is essential so that infrastructure funding grows over time to meet inflation and the rising costs of construction.

Bill C-60 also proposes to reform the temporary foreign worker program to ensure that the cost of the labour market opinion process would no longer be absorbed by taxpayers, and to better ensure that Canadians would be given the first chance at available jobs. We plan to support job creators, such as junior mineral exploration companies, by extending for one year the 15% mineral exploration tax credit for flow-through share investors. We would also clarify the rules for how we would treat proposed investments in Canada by foreign state-owned enterprises and would allow for the extension of timelines for national security reviews by modernizing the Investment Canada Act.

While we remain squarely focused on jobs and growth, our government recognizes that Canadians are our country's greatest resource. As outlined earlier, we would be doing some very positive things for Canadian families in today's legislation. To help Canadians selflessly welcoming a child into their family, as I said earlier, we would adopt the adoption expense tax credit. To better help the health care needs of Canadians, we would expand tax relief for home care services. The Canadian Home Care Association said that this is:

...an important step in supporting the needs of our aging population and enabling individuals to live independently in their homes.

Through our new measures, designed to ensure everyone pays their fair share, Bill C-60 would help to keep taxes low for everyone, providing Canadian families with greater opportunities than ever before. Not only is our plan prudent; it is an effective response to global economic changes, which still persist. By staying the course, our Conservative government will continue to promote economic growth, job creation and long-term prosperity for all Canadians.

I urge all my colleagues on all sides of the House to vote in favour of Bill C-60. I outlined today all the wonderful things that are in the budget and that hit home very closely to Canadian families, to the aging population and to the municipalities, who so welcome the indexing of the gas tax. It is so important, so we can build the infrastructure within our country.

Today, I met with the electrical workers, and they are praising what we are doing in terms of the foreign workers, saying that jobs belong in Canada, and Canadians need those jobs.

[Peggy Nash, NDP, Parkdale—High Park, ON]

The motion is:

That the Standing Committee on Finance issue a report to the House asking that the House grant the Standing Committee on Finance the power to divide Bill C-60 into 6 pieces of legislation, which could then be properly referred to the appropriate committees, as follows:

Clauses 1 - 135, and all un-named clauses in the list below, remain as Bill C-60

(a) clauses 136 to 154, related to the Investment Canada Act; be allowed to be renamed as Bill C-62

(b) clauses 161 to 166, related to the Immigration and Refugee Protection Act and the temporary foreign worker program; be allowed to be renamed as Bill C-63

(c) clauses 174 to 199, related to the proposed department of foreign affairs, trade and development act; be allowed to be renamed as Bill C-64

(d) clauses 213 to 224, related to the National Capital Act and the Department of Canadian Heritage Act; be allowed to be renamed as Bill C-65

(e) clauses 228 to 232, related to the Financial Administration Act and collective bargaining between crown corporations and their employees; be allowed to be renamed as Bill C-66

And that the subsequent bills be allowed to be referred to the following committees as being passed after second reading.

That section (a) of this report do form Bill C-62; that Bill C-62 be deemed read a first time and be printed; and that the order for second reading of the said bill provide for the referral to the Standing Committee on Industry, Science and Technology;

that clauses mentioned in section (b) of this report do form Bill C-63; that Bill C-63 be deemed read a first time and be printed; and that the order for second reading of the said bill provide for the referral to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities;

that the clauses mentioned in section (c) of this report do form Bill C-64; that Bill C-64 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Foreign Affairs and International Development;

that the clauses mentioned in section (d) of this report do comprise Bill C-65, that Bill C-65 be deemed read a first time and be printed, and that the order for second reading of the said bill provide for the referral to the Standing Committee on Canadian Heritage;

that the clauses mentioned in section (e) of the report do comprise Bill C-66, that Bill C-66 be deemed read a first time and be printed, and that the order for the second reading of the said bill provide for the referral to the Standing Committee on Government Operations and Estimates;

that Bill C-60 retain the status on the order paper that it had prior to the adoption of this order and that Bill C-60 be reprinted as amended; and that the law clerk and the parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

I so move.

The House resumed from May 6 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.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, I am pleased to be speaking to Bill C-60 today. I listened to my colleagues across the way and was intrigued to hear them say that they lowered taxes, when really the bill will increase taxes and cost Canadians as much as $8 billion.

The Conservatives lowered taxes, but it will cost $8 billion. Not bad. It reminds me of the scandal surrounding the $3.1 billion. The Conservatives do not know where that money is. Here we are talking about $8 billion. They did not increase taxes, but it is costing $8 billion. As my NDP colleague said, the Conservatives are taxing hospital parking, as if people do not feel bad enough to see someone they care about in the hospital. Often, these people are not well-off, but are people in need. Yet, they will still have to pay a tax on parking when they want to go visit their loved ones.

The Conservatives say that they have not raised taxes. However, they have raised taxes on credit unions, safety deposit boxes and the Fonds de solidarité FTQ, one of the best investment funds in Canada. The number of jobs that have been saved because of this labour-sponsored investment fund is simply incredible. The jobs it saved still exist because the employers, the employees and the union all entered into agreements.

Companies that were about to go bankrupt worked together and this program has proven its effectiveness. No other organization has gotten the same kinds of returns. I am boasting about the FTQ fund because the same type of fund was attempted in New Brunswick, but since there are fewer people in that province—just 750,000 versus 7 million in Quebec—the fund was not the same. However, it worked in Quebec. Seeing that the program worked, the government decided to pull out for one simple reason: it is anti-union. The government treats us as though it is our boss.

I find it funny that the same is not said about chambers of commerce. Chambers of commerce are essentially employer unions. I have not heard the Conservatives say anything bad about chambers of commerce or employer unions. The Conservatives have no problem listening to them. When a business association appears in committee, the Conservatives are all ears. However, the government does not hesitate to bash workers.

I will now talk about the Conservatives on the other side of the House. Imagine this. The budget gave them the opportunity to cancel their changes to EI. They said that they lowered EI premiums. Indeed, they cut premiums. However, they then prevented workers from accessing EI. How smart. The Liberals increased it by nearly 3%. They then stole $57 billion from the EI fund. The only difference between the Conservatives and the Liberals is that the Liberals stole $57 billion from the EI fund and the Conservatives legalized that theft. They passed a bill and then it was done. The theft was legalized. That is the only difference between the two.

We live in a country that has provinces and elected premiers. Workers fall under provincial jurisdiction. The provinces are responsible for workers, their training, and so on. The federal Conservative government says that employment insurance falls under its jurisdiction and that it will decide what happens in the provinces. It is going to take that away from the provinces. During the EI reform in 1996, they decided to create part II of the employment insurance legislation. Part II was supposed to establish training and they were supposed to provide funding to the provinces. Earlier I heard my Conservative colleague across the floor say that they changed all that, because the training being given was bad and useless, because it was just sending people to college. This means that they have no respect for the provinces.

The premiers of the Atlantic provinces met last week. They concluded that this makes no sense at all. Accordingly, they are calling on the federal government to declare a moratorium on the EI changes and to do an impact study.

That would be a sign of respect. Four Atlantic provinces are calling for this, and so is Quebec. These are all Atlantic provinces, in a way. Five provinces of Canada are telling their federal Prime Minister that he is making a mistake and that he is destroying their regional economy.

Who is the Prime Minister to say that that is not how it works, because he held consultations? Who did he consult? New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador and Quebec are all saying that they were not consulted. It appears that Alberta was the only province that was consulted. Did the Conservatives only consult big oil?

Apart from big oil companies, who has $5,000 to set aside for each employee? Certainly not companies in my region. Small businesses do not have this $5,000. A new start-up that wants to hire 20 people does not have it. If the government wanted to do the right thing and connect workers, I have a recommendation, and it would not cost very much.

In Alberta, foreign workers are hired ahead of Canadians. Training could have been offered to our Canadians.

I would like to talk about a job ad that I have here. It was posted by and for the Government of Canada. It is a job for a scaffolder in Alberta. These are the requirements: education, certificates, licences, courses or memberships: not required; five or more years' experience; language of work: English; other languages: Polish, Portuguese, Punjabi and Spanish. French is not spoken. I have the ad in my hands. There is other information. It is not so bad: English is not required because it is not a basic skill needed to work in the isolated camps located two hours north of Fort McMurray.

I have a suggestion for the government if it wants to find workers. Becoming a scaffolder takes 11 weeks of training. People in my riding would like to work there and they are Canadians. Why not allocate the money needed to provide the 11 weeks of training?

If the government is asking for five years' experience in this job ad, and no education or certification, it is because foreign workers have this experience but not the education or certification. Requiring five years' experience excludes Canadians. We no longer have scaffolders with five years' experience. They all have jobs. The government has excluded workers who could have been trained and put to work.

The Conservatives could have done much better with this budget. This government boasts about being the workers' friend. So what has it done for them? In the Atlantic provinces and Quebec, it is ruining seasonal employment. There are no more seasonal jobs.

The government is jeopardizing seasonal jobs in our regions, whether they are in the tourism or fishing industry. That is what the government is doing and it is unfortunate. The budget before us certainly is not intended for Canadians.

The government is increasing taxes. What is more, this is an omnibus bill. The government has put everything in it. We will debate it for five days, and that is it.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, with its recent budget, the Conservative Party is continuing its frontal attack on Quebec. Apparently, the Conservatives did not appreciate Quebeckers' refusal to vote for them, and so they decided to abandon one part of Canada's population and send the money somewhere where they would have a chance of winning some ridings. Quebeckers have heard a lot of bad news and, unfortunately, the measures in this bill are only the tip of the iceberg.

Let us begin with the Economic Development Agency of Canada for the Regions of Quebec. Last year in the House, the Conservatives assured us that the expected cuts would affect only the department's operating budget, and not transfer payments. That is not the case. Not only did the Conservatives cut the department's operating budget, but worse yet, they savagely reduced transfer payments to their lowest level since the Economic Development Agency of Canada for the Regions of Quebec Act came into force on October 5, 2005.

I looked it up in the public accounts which, unlike the Conservatives, are incapable of playing with the words and numbers. I am going to list the transfer payments, which are distinct from the agency's operating costs. In the 2005 public accounts, $286 million was paid out in transfers. In 2006, it was $293 million. In 2006-07, $316 million went in transfer payments. In 2007-08, it was $286 million. In 2008-09, it was $243 million. Here we see the numbers going down. In 2009-2010, transfers went up to $342 million. In 2010-11, it was $424 million. Then, in 2011-12, after the Conservative majority government was elected with only 10% support in Quebec, it was only $253 million. Finally, in 2012-13, the prediction is $252 million, an amount that will drop to $212 million in 2013-14.

I would remind the House that a 2013 dollar is worth less than a 2005 dollar, because of inflation. The Conservatives promised last year that they would decrease only the administrative expenses, and not the transfers. Yet, at $212 million, we have reached a very low point. Can the Conservatives tell us clearly what they intend to do with the Economic Development Agency of Canada for the Regions of Quebec? Are they abolishing it by stealth? Many businesses in Quebec need this government assistance. What is the Conservatives' plan? Do they want to abandon Quebec? Why have other regional agencies seen their budgets increase? Why is funding being increased in one place and decreased in another?

I do not suppose that the Prime Minister's office has written up answers for these questions, and so I do not even expect a response from Conservative members.

Economic action plan 2013 will reduce the labour-sponsored venture capital corporations tax credit, also known as the federal tax credit for labour funds, from 15% to 10% in 2015. The tax credit will decrease from 10% to 5% in 2016, and will be completely phased out in 2017. We all know that the Conservatives’ narrow ideology dictates their policies. However, in this case, the Conservatives are directly attacking unions and they are attacking Quebec, whether they mean to or not. This tax credit is most popular in Quebec; 85% of those using it are Quebeckers. Even though labour funds do not provide the highest returns in the market, they are so popular in Quebec that many people who would not otherwise invest are investing in these funds. Many small businesses do not provide any retirement plan, and for their employees, labour funds are the only investment they make.

Quebeckers contribute less than other Canadians to RRSPs. We finally have a program that works, and all of a sudden it ends. How typically Conservative.

Generally speaking, this budget increases taxes more than it reduces them. It is certainly a good idea for the government to try to balance the budget, especially since the Conservatives have done nothing but increase the debt since they came to power.

However, the government must not try to balance the budget by gouging Canadians. For instance, taxes on small business owners will increase by $2.3 billion over five years.

We are just emerging from the economic crisis, and our economy is still quite fragile. This is what we are hearing on a daily basis from the Conservatives across the way. With measures of this kind, we are likely to drive many companies out of business, increase the number of unemployed Canadians and weaken Canada’s economy.

At the same time, the penny-pinching Conservatives are sending public servants to harass the unemployed. They are raising taxes on credit unions by $75 million annually, an increase that will cause serious problems for economies in rural regions. They are attacking another one of Quebec’s traditions.

To put it frankly, none of this makes any sense after such a major economic crisis, but we understand why this government improvises more often than not.

The crisis was particularly hard on young people, whose unemployment rate is now five points higher than it was before 2008. Young people, who have just finished their term or will soon be completing their school year, will not have any work this summer. Those young people will not save any money for the next academic year, which will push many into debt.

That will also have a negative impact on the economy as a whole since these young people will consume less this summer, which means less revenue for many businesses. Nevertheless, this budget contains no measures to promote youth employment.

We support some measures, but the budget on the whole does not meet Canadians' needs. What is more, the government has once again introduced an omnibus bill in order to pass measures that have nothing to do with the budget.

The Conservatives' ideological obsession is apparent throughout Bill C-60. Despite its right-wing ideology, this government has increased waste since 2006 and passed the cost on to Canadians.

We can also see from this budget that the Conservatives have completely abandoned Quebec. The elimination of the labour-sponsored fund tax credit, which is very popular in Quebec, and the significant cuts in funding for Canada Economic Development for Quebec Regions show that the Conservatives have given up on Quebec for the next election.

A good government should not favour one region over another. Instead it should unify the country by acting in the interests of all Canadians, which is what the Liberal Party of Canada will do when it forms the government in 2015.

We will repair the damage done by the Conservatives and will act for all Canadians.

[Élaine Michaud, NDP, Portneuf—Jacques-Cartier, QC]

Mr. Speaker, today I join my NDP colleagues in opposing Bill C-60, the Conservatives' latest budget implementation bill.

As has unfortunately become a trend in the House, we once again have an omnibus bill that is smaller than previous ones in terms of pages, but is just as devastating.

Bill C-60 amends nearly 50 Canadian laws and even creates a new one: the Department of Foreign Affairs, Trade and Development Act.

Bill C-60 also proposes a number of complex measures that require extensive study in committee or in the House, particularly with respect to the temporary foreign worker program, but the Conservatives are trying to rush them through after abuse was revealed as a result of their poor management of the program and the excessive flexibility.

It is completely unacceptable that the Conservatives are trying to hide their poor decisions from the Canadian public and prevent members from examining the bill, hence avoiding the oversight that all MPs should be providing, whether they are on the government or opposition side. These parliamentarians were sent here by their constituents to represent them and be their voice in the House. They should be able to carefully examine the budget implementation bill without having the Conservative government impose time restrictions as soon as it can.

Although previous omnibus bills were heavily criticized and thousands of Canadians voiced their disapproval, including many from my riding of Portneuf—Jacques-Cartier, the Conservatives keep persisting. They are doing everything possible to avoid an extensive study in committee, because they know very well that a close study of their bill would highlight the budget's many flaws and their gross incompetence at managing public finances.

As we already know, the Parliamentary Secretary to the Minister of Finance has already suggested limiting the time allotted for studying this bill in committee. The practice in the House, that is, limiting the time allowed for debate, is being reflected in committee. In committee, we find the Conservatives have the same attitude and the same bad faith, as they are still limiting parliamentarians’ opportunities to do their work and represent their constituents properly.

The Conservatives are trying to make Canadians believe that they are the only ones equipped to manage Canada’s economy properly, but if we take a look at their record to date, obviously this makes no sense, and Canadians across the country are well aware of it.

It is not just NDP members or members of the other opposition parties that are making these kinds of comments. Last weekend when I was walking around in my riding, the subject that was brought up most frequently by the constituents I met was the $3.1 billion that mysteriously disappeared under this government’s watch. Frankly, that has shocked and horrified people.

That is why we should be able to take a closer look at the bills this government is introducing, whether they have a direct impact on the economy or not. The Conservatives put on a great show, but if you scratch the surface a little, their façade falls apart quite quickly. The Conservatives do not have the abilities they are bragging about.

Instead of bringing in a budget with concrete measures to create jobs and stimulate the economy, the government is doing exactly the opposite. In fact, according to the Parliamentary Budget Officer, the Conservative government’s 2013 budget is more likely to eliminate thousands of jobs, reduce direct program spending and significantly diminish growth in Canada’s gross domestic product.

Canada's economic recovery is already happening more slowly than anticipated. The Minister of Finance even had to revise his predictions, before being quickly chastised by the Prime Minister, who is only thinking about the 2015 election, as though he had blinders on. On reading this budget, it is obvious that the Conservatives are only thinking about the 2015 election and that they forget that the cuts they make now will have a drastic impact on Canadians.

I do not even need to go back to my riding to hear this. I just have to walk around Parliament Hill. Since all parliamentarians use taxis, if you just take a few minutes to talk with the drivers, you quickly realize that the cuts that the Conservatives have been making ever since they came into power are having a major impact.

Taxi drivers already have fewer hours and fewer clients. Their income is lower, as is their chance of contributing to the economy. The same thing is happening in the restaurant business and in all the other small businesses in the national capital region. The situation in Ottawa will be matched in other cities throughout Canada. All those lost jobs mean lower incomes for families, who will have fewer and fewer opportunities to contribute to the economy.

The equation is very simple. This government is already finding it difficult to reduce its spending. Consequently, it will be cutting the delivery of essential services to Canadians. Despite it all, the Conservatives are unable to replenish their coffers because they are giving huge tax credits and all kinds of gifts to their friends in big oil companies, the gas industry and the big banks. Then they end up with deficits. We know that this government has record deficits. This charade that the Conservatives put on every day is absolutely pointless. Canadians are becoming increasingly aware of what they are doing.

For the past few weeks, people have been talking about how the 2013 budget will increase Canadians’ tax burden by raising taxes on just about everything that exists, such as safety deposit boxes, baby strollers, bicycles, wigs for people who have cancer, parking at hospitals, and I could go on. The list is so long that I would squander my entire speech listing all the tax hikes in this budget.

I hear such nonsense from the other side of the House. The Conservatives talk about the carbon tax of $20 billion or $21 billion, sometimes $19 billion—we do not really know anymore. Someone in the Prime Minister’s Office must get his numbers mixed up sometimes. We do not have a carbon tax in our platform, but the government is accusing us of wanting to impose it. The measures in this budget are mind-boggling; the government failed to meet the public's expectations. I am almost speechless at its talent for hiding the truth from Canadians by controlling debate in the House, by limiting the time available for study of a bill in committee and by hiding tax measures that would be unacceptable to most Canadians in the countless pages of the budget.

I am frankly overwhelmed by the hypocrisy shown by this government, especially when I read the budget. The NDP cannot but vote against most of the measures put forward. But we must show some good faith: there are a few good things in the budget. Some money has been and will potentially be set aside for the repair of federal infrastructure, such as wharves. I am thinking that the Percé wharf may benefit, as may the wharf in Portneuf, in my riding, which is the longest deep-water wharf in Canada and one that is badly in need of repair. These funds may help my community, if, of course, political issues do not block access to funds that are critically important, both to my region and that of my colleague from Gaspésie—Îles-de-la-Madeleine.

Despite these positive steps, most of the measures in the budget oblige us to vote against it. The Conservatives have the upper hand, saying that the NDP votes against all the measures that the Conservatives put forward, but when they wrap them in such an appalling package, we as the opposition have no choice but to speak up to defend the real priorities of Canadians and do the job for which we were sent to this House.

Let us take a look at all the measures taken by the Conservative government: withdrawing from the Kyoto protocol; crippling our environmental legislation; eliminating protection for thousands of lakes and rivers throughout Canada, several hundred, perhaps even several thousand, of which are in my own riding; increasing the retirement age to 67; and reforming employment insurance. I was talking about a case in my riding where experienced employees were threatened by Service Canada with losing their benefits if they did not give up their current seasonal jobs and take full-time jobs somewhere else. They are trying to hollow out the seasonal industries and shut down entire sectors of our economy.

When these kinds of decisions are made so dogmatically and by keeping people in the dark, it is obvious that Canadians will be better served by the NDP in 2015.