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

[Philip Toone, NDP, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, we are going through a period in which the government appears to be circumventing the idea of building consensus in the country. It disregards the parliamentary tools at its disposal to assist it in building consensus. On the contrary, it constantly seeks to oppose. The government does not want to discuss. Once again, there is very little debate about a bill as important as Bill C-60, which will amend 59 laws. Previously, there was very little debate on Bills C-38 and C-45, which amended more than 70 laws.

The same thing happened to a number of bills introduced during the 41st Parliament, or ever since the Conservatives have held a majority. They do not want to take the time to listen to the public's concerns and needs. They disregard them. This is a highly ideological government, which does not listen to the people and has difficulty justifying itself.

We cannot continue this way. We absolutely need a government that listens, that responds to needs, that has a long-term vision and that can promote sustainable economic growth. The goal was not to introduce bills full of ad hoc measures, to turn back time in order to eliminate protections previously put in place or to deregulate industries to the point where the invisible hand of the market reigns supreme.

We have seen the consequences of this kind of thinking, which was at the root of the economic crisis of 2008. We do not want to see that happen again. We want something sustainable. We have no lessons to learn from the present government.

[Paulina Ayala, NDP, Honoré-Mercier, QC]

Mr. Speaker, the opposition plays a fundamental role in the parliamentary system. According to a paper I read from the Library of Parliament:

Parliament, after all, is fundamentally about debate…and the transacting of the people's business in public.…A vigorous opposition in Parliament can be the chief bulwark against the temptation [for a majority government that wishes to do everything without debate].

In Bill C-60, the Conservatives are attempting for a second time to escape parliamentary and public scrutiny. Does my colleague agree with me that our democracy is suffering?

[Philip Toone, NDP, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, I would like to start by asking a question.

Today in the House, the member for Westlock—St. Paul talked about renewable hydrocarbons. The Minister of Natural Resources has also talked about the same thing recently.

Frankly, I would like to know what this creature is, given that hydrocarbons come from dinosaurs that lived millions of years ago. It seems to me that this is not a renewable energy source, unless the Conservatives are telling me that there may be dinosaurs somewhere in the Caribbean islands. I am trying to understand what this is.

They may be talking about the corn and ethanol business. Recently, we saw that when ethanol derived from corn was on the market, it created an extreme crisis for the corn market, to the point that a lot of people in the world could no longer buy basic products such as corn because it was being converted into renewable energy.

I quite simply do not understand why the Conservatives are trying to make us believe this renewable hydrocarbons story. I am having a hard time seeing where this thing exists. I would certainly like to hear more about it though, because frankly, I sometimes think it is coming out of the mouths of dinosaurs.

Bill C-60 contains very few things that will benefit people in my riding. I will even go out on a limb and say that it could hurt them.

We will talk about a few measures that are in the budget, and other measures that are not. What worries me most is what is not in the budget.

I would first like to talk about the investment that needs to be made at Fisheries and Oceans. The budget says that, over the next five years, Fisheries and Oceans will be cut by another $100 million. That department has already endured cuts, very recently, of over $70 million a year. Now, the Conservatives are talking about more cuts. We do not know how big those cuts will be. The Conservatives have simply announced cuts. They have not said what is going to be cut. That is the real problem with the bill we have before us. It is supposed to be C-60, Economic Action Plan 2013 Act, No. 1. Yet, it is not a budget, or at least it is hard to believe that it is.

When I was a businessman, a budget had columns. It was a sheet with figures on it, with the money spent the previous year and the money spent during the current year. You saw how spending increased or decreased. To the Conservatives, budgets are no longer budgets; now, they are action plans. Frankly, they are works of fiction. They are books that tell a story, but do not in any way achieve the objective of managing a country in a sound and sustainable way.

I will come back to Fisheries and Oceans Canada, which is going to lose $100 million over the next five years. Nowhere in the budget, or the Conservatives’ economic action plan 2013, do I see where they are going to cut. We know the impact of the cuts, though. So much has been cut from maintenance at Fisheries and Oceans Canada that our docks are in a pitiful state. The Percé dock is closed today. The lobster industry depends on that dock. My riding also depends heavily on the tourism industry, which in turn depends heavily on the dock. We are talking about 400,000 tourists a year who visit the dock.

Last year, Bill C-38 made changes to employment insurance. In today’s budget, nothing has been changed, even though every region of Canada where there is seasonal work and people make a living from seasonal industries has called for a moratorium or a return to the starting point, and for real consultations to be held. That has not been done. The result is the bill we have before us, which makes no changes to employment insurance.

As a result, people in my region have lost weeks of employment insurance benefits and they will therefore find it harder and harder to have an income to get through the seasons and make it through the whole year.

The minister says that the reason why the government made changes to employment insurance was to help people get jobs. At the same time, however, the Conservatives have cut so much from dock maintenance in my riding that they have put people out of work. In 2013, we risk losing the tourist season in the Gaspé region, because they have cut so much from the budgets that people depend on, without consultation and without doing the groundwork.

They are making so many cuts that people are losing their jobs. There will be no tourists to support merchants who depend on the tourist industry and so there is a risk that we will lose an entire year of tourism, simply because Fisheries and Oceans Canada has not been able to do its job. The department has been unable to do its job because the cuts have been so deep that it has had a great deal of difficulty meeting its obligations.

In today’s budget, Fisheries and Oceans Canada is being cut by $100 million. What is going to be cut? I have a hard time seeing where the remaining cuts at Fisheries and Oceans Canada could be made. I congratulate the department for demonstrating creativity by inventing cuts that could be made in future, without specifying what is left to cut. It seems to me that there are no cuts left to be made at Fisheries and Oceans Canada, apart from the minister’s salary maybe.

We absolutely have to think long-term. There is no long-term vision in Canada. The Conservatives are trying to cut all government spending, and they think that that is going to create the conditions upon which an economic recovery could be based. We saw this situation in the 1980s, in the Reagan era. It is called trickle-down economics. If the government cuts taxes and is less and less involved in the economy, the invisible hand of the market will take over and solve all of our problems. In my opinion, in 2008, when the serious crisis in the banking system happened, the invisible hand of the market simply did not work.

Frankly, credit does not go to the Conservatives for the regulations that were in place at the time and that helped us to get through that serious worldwide economic crisis and be in the condition we are in now.

The Conservatives boast about the fact that Canada has one of the best economies in the world. It is difficult to boast when we compare ourselves to Greece, for example, which is in free fall. Saying we are not in free fall is not all it takes to determine that everything is fine. That is not the case.

Certain conditions must prevail in order for Canada’s economy to grow. The budget now before us will not create these conditions. Furthermore, Canada has 240,000 more young people out of work than during the previous recession in 2008.

There needs to be an action plan in place to help these 240,000 unemployed youths find jobs. Instead, we have cuts to Service Canada’s summer jobs programs that encourage young people to return to the regions to work, settle down and create vibrant communities. Cuts are being made to the summer jobs program and a new internship program is being created. However, an internship is not a job. A job is paid, permanent employment. An internship usually involves unpaid work.

The government has just spent a considerable amount of money creating unpaid job opportunities without having in place an action plan to help young people find gainful employment.

Getting back to my riding, cuts to Fisheries and Oceans Canada programs means the future of the region’s children and economy are impacted. The Gaspé is not the only region affected. All of Eastern Canada will be facing problems as a result of the cutbacks recently announced. Today’s budget does nothing to alter the course this government has embarked on, one that is bad for the economy and for the regions in particular.

The government is simply unwilling to consult with people. It is unwilling to ask Canadians how they feel about Canada’s growth and what they think our priorities should be. With their parliamentary majority, the Conservatives seem to think they can do whatever they like.

Destroying laws that protect the environment is tantamount to mortgaging the future. Ultimately people will end up paying a great deal more to repair the damage wrought by the Conservatives.

This budget will cost us dearly. Therefore, I urge members to vote against it.

[Nycole Turmel, NDP, Hull—Aylmer, QC]

Mr. Speaker, drawing up a budget means making choices. In their 2013 budget, the Conservatives have chosen austerity. This government justifies its decision on the grounds that it wants to wipe out the deficit. All of us here in this House are in favour of wiping out the deficit. Nobody can argue with that, but it is all in the way you do it.

The Conservatives are proposing lean years for everyone in the hope that these cuts will return us to a balanced budget. We believe we must invest in our economy in order to wipe out the deficit. Our economy needs a little help. It needs investment to create jobs and growth. It definitely does not need utterly austere policies like those proposed by this government.

The IMF, the Parliamentary Budget Officer and many renowned economists have warned the government about the harmful effects of its strategy. The Parliamentary Budget Officer says the 2013 budget will eliminate thousands of jobs, cut direct program spending and slow GDP growth. That is not very encouraging, especially for a government that claims to champion employment and the economy.

With Bill C-60, the government is giving us version 3.0 of its omnibus bills. Like Bills C-38 and C-45, Bill C-60 amends nearly 50 acts and contains hundreds of unrelated legislative amendments.

As a parliamentarian, but especially as a citizen, I am shocked to see that this government has not adopted a more co-operative and democratic approach. Its bill is full of inconsistencies and counterproductive measures. However, the government is determined to force it down Canadians' throats without us really having the time to study it or propose improvements.

A very specific example of a counterproductive measure that will harm the economy of my region, the Outaouais, is the elimination of the 15% tax credit for shareholders of labour-sponsored funds. Labour-sponsored funds are essential to the development of Outaouais businesses. On May 2, the Gatineau chamber of commerce organized a press conference to announce its request that the government reverse its decision. The FTQ's Fonds de solidarité alone has invested $125 million in 80 businesses in the region. Those investments have made it possible to create or maintain 6,700 jobs in the Outaouais alone.

The hardest thing to understand in the Conservatives' attitude is that the government will achieve no savings by eliminating the tax credit.

A study conducted by SECOR in 2010 clearly shows that the economic impact of the jobs created and maintained through the investments of these labour-sponsored funds enable the government to recover the tax credits in an average period of three years.

So I ask myself the question and I put it to the government: what is the justification for this attack on labour-sponsored funds? These funds create and maintain employment in addition to playing a positive role in our economy.

Eliminating the tax credit will also have a direct impact on small investors. It has benefited some 23,000 people in the Outaouais alone.

By investing $5,000 in a labour-sponsored fund, a taxpayer can currently save up to $750 in federal income tax. Because of this government, 23,000 small investors in the Outaouais will lose a profitable savings vehicle for their retirement and for the economy. This government must open its eyes and reverse its decision.

I have looked through Bill C-60 at length and have found virtually nothing about the measures this government intends to take to combat poverty. In a developed country such as Canada, we would be wrong to believe that poverty is a marginal phenomenon. Poverty exists. It is very real. We see it on the ground, in our ridings. Many of us could describe numerous unfortunate examples of poverty.

Every month, 800,000 Canadians turn to food banks. A growing number of these 800,000 food bank users are working people. Despite earning an income, they cannot always afford to put food on the table. More and more workers are living in poverty, and this government’s policies are obviously to blame to some extent for this situation. This is unacceptable. Fighting poverty must be one of the government’s priorities.

In conclusion, I would like to comment briefly on this government’s repeated attacks on public servants. Last year, it announced that it was eliminating 19,200 jobs, while solemnly swearing that services would not be affected. We subsequently learned that in reality, 29,000 public servants would be losing their jobs and that services to the public would be directly affected.

The Conservatives enjoy depicting public servants as privileged, lazy individuals. That is part of their strategy. They want to pit private sector workers against public servants. We would all do well to close ranks in the face of this government’s attacks on workers in general.

The fact of the matter is that the average pension of a public servant upon retirement is $24,000 a year, or $18,500 for women and $28,000 for men. It is time to stop implying that public servants are rolling in money. Those who are doing very well are the Conservatives’ friends, those who are on the receiving end of favours and generous subsidies while they generate profits totalling millions and sometimes even billions of dollars.

I am thinking here, among other things, of oil companies that are still subsidized to tune of $1.3 billion a year and that often use our soil, our air and our water as a free dumping ground. Natural resource development is a major source of revenue, but development must be done properly. Right now, major polluters are enjoying a free lunch. Things could be done differently, but this government is failing when it comes to fighting for the middle class and for the environment.

As I said in my opening remarks, drawing up a budget means making choices. In budget 2013, the government clearly chose to turn its back on the middle class and on SMEs. Canadians will remember this when the time comes to elect a new government.

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, the information is not incorrect; it is very well researched. I notice he did not bring up child hunger. He did not bring up the environment. I did recognize there are positive steps, but by and large it is a negative budget and I simply cannot support it.

I will talk a bit about youth jobs. The youth employment rate is now more than five points worse than it was before the recession. Last year, Canada had some of the worst summer job numbers since Statistics Canada began measuring this in the 1970s. Despite these challenges, the only measure for youth in Bill C-60 is to encourage greater charitable donations. They cannot donate because they cannot find work.

In stark contrast to the government's inaction, Liberals would introduce a real job strategy for youth to give young Canadians the job experience they need to succeed, including a youth hiring credit for small business, significant new investment in the Canada summer jobs program and re-opening the youth job centres the Conservatives closed.

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, I have the privilege of representing a wonderful riding, the riding of Etobicoke North, the community where I was born and raised. We are proudly one of the most multicultural ridings in the country, but sadly, we also have our challenges.

Recent statistics show that almost 20% of our residents are not yet citizens. Our families face family reunification challenges and language and job barriers. Almost 25% of our families are headed by single parents who work two and three jobs just to put food on the table. Almost 20% of our riding is engaged in manufacturing, the second highest percentage for the entire country. In stark contrast, only 5% are involved in management, the 301st ranking of 308 ridings in Canada.

I am sharing this because we need real investment in our families and in our community, particularly during tough economic times. What we do not need are broken promises such as the Conservatives promising that they would not cut the rate of increase to transfers for health care, education and pensions.

The previous cuts to old age security, a move that would cost our seniors tens of thousands of dollars in support, are still causing outrage in my community. Single moms ask how the Prime Minister could do this, when he promised not to touch pensions. They have children and have to work. How will they pay for their children's education? They have no money to put away for retirement. What will happen to them?

Humber College students are saying that once they graduate they will have no job, and that is not fair. They ask why they are being treated differently by their country. Grandparents continue to come in wanting to know why their grandchildren are being targeted by the Government of Canada.

Today we are debating Bill C-60, the first Conservative omnibus bill following its 2013 budget, which impacts at least 18 different government portfolios. While there are some items in the bill that people could generally support—for example, better allowances for veterans and more incentives for charitable giving—these are mixed with many negative measures that will hurt the people of Etobicoke North. I simply cannot support these negative measures.

It is important to remind those watching at home that when the Conservatives came to power in 2006, they inherited from their Liberal predecessors 10 straight years of balanced budgets, an annual surplus that was running at the rate of $13 billion every year, lower debt, lower taxes, a sound Canadian pension plan and 3.5 million net new jobs. The last time a Conservative government actually balanced a budget for Canada was 101 years ago in 1912.

Bill C-60 creates the illusion of action regarding jobs and training. The government proposes to claw back the $2.5 billion per year in labour market money that it now sends to the provinces and renegotiate it with provincial governments. This amounts to recycling existing money. There is nothing new, no additional federal investment.

My community needs jobs, and each day at least one young person calls our office looking for work and we help find jobs, week after week. The youth unemployment rate remains a staggering 14.2%, nearly twice the rate for other Canadians. Today, 404,000 young people lack a job and another 171,000 have simply given up and dropped out of the labour market.

Another reason I cannot support the bill is that it increases taxes—for example, new Conservative taxes on safety deposit boxes totalling $40 million a year; new Conservative taxes on credit unions amounting to $75 million a year; and the list goes on. However, what I really object to is the new Conservative increase of tariff taxes, taxes on imports, which will take about $333 million every year from Canadians.

The people of Etobicoke North do not want the cost of baby carriages to go up 3%; bicycles to go up 4.5%; blankets to go up 5%; ovens, cooking stoves and ranges, 3%; plastic school supplies, 3.5%; pillows, 6%; and vacuum cleaners, 5%. I have heard from Canadians battling cancer, who must fight their disease every day, that their cosmetic wigs will go up by an astonishing 15.5%. It is absolutely shameful.

When all these measures are fully implemented, as well as some other taxes that are buried in the legislation, the burden will add up to more than $2 billion per year in new Conservative taxes on Canadians.

I did make a specific request to the Minister of Finance for budget 2013, as families in Etobicoke North asked, and respected the minister's request that ideas be cost neutral or non-spending steps. My appeal was for a joint meeting of federal, provincial and territorial ministers of health and agriculture to develop a plan of action to work with stakeholders across the country to improve student nutrition, because children in my riding and across the country go to school hungry, and hungry children cannot learn.

Forty per cent of elementary students and 62% of secondary school students do not eat a nutritious breakfast. Poor nutrition status leads to poor health outcomes for children, and Canadian children from all income brackets are vulnerable to inadequate nutrition, especially the one in five Canadian children who live below the poverty line.

In addition to making the human argument, to do the right thing and to honour the promises Canada has made to our children, I even made the economic argument for student nutrition. The Boston Consulting Group reports that, on average, each high school graduate contributes an extra $75,000 to the economy. They earn higher salaries than dropouts, pay increased taxes, have lower health care costs and are less dependent on social assistance. If providing food at school increases graduation rates by only 3%, a pan-Canadian school meals program in high schools at a cost of $1.25 a day could result in an annual net payback of more than $500 million annually.

The potential economic stimulus for Canadian agriculture is also considerable. Realistically, 70% of the pan-Canadian nutrition program could have domestic content, with an annual return to Canadian producers of $1.5 billion.

Not only do our children want healthy food now, but they also want a healthy environment to grow up in and raise their children and grandchildren. While no cuts to the environment are specifically mentioned in budget 2013, Canadians should remember that cutting is actually a three-year program with a $13 million reduction this year, growing to $31 million, then $58 million and ultimately representing a 5% cut for Environment Canada.

Budget 2013 offers mere scraps for the environment and in no way makes up for the war on the environment and science that the government has been waging and continues to wage: for example, $4 million for marine-based ecosystem conservation, when the government has promised to protect 10% of marine areas and yet has protected only 1%; $10 million for the conservation of fisheries and a salmon conservation stamp after eviscerating the Fisheries Act; and a new tax credit for clean energy worth a tiny $1 million for a global $1 trillion industry.

Perhaps most concerning of all is the lack of action on climate change, when the government is under increased study for its environmental and climate change record, particularly by our largest trading partner, the United States, and the fact that record low Great Lakes levels, which many experts attribute to a changing climate, are mentioned but not acted upon in the budget. For a government that is desperate to greenwash its record, budget 2013 and Bill C-60 clearly show that the environment is only an afterthought for the Conservatives, although Liberals support the funding for the Nature Conservancy of Canada.

In closing, I do not support this bill because it will make life harder for the people of Etobicoke North to make ends meet and does nothing to help youth find work. My hard-working constituents should not have to pay for the government's wasteful spending.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I would like to remind the member who just spoke that we just learned that the Parliamentary Secretary to the Minister of Finance presented a notice of motion to the Standing Committee on Finance in order to limit the study of Bill C-60 to five meetings and in order to ensure that the clause-by-clause consideration of the bill is completed by May 28, which is eight sitting days after a time allocation motion forces the bill to be passed at second reading.

Does the member opposite think it would be a good idea to divide this omnibus bill so that all members can really study it in detail along with the effects of this government's measures, which will harm our economy and kill jobs?

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-60 on the budget implementation act.

I would like to focus my speech on the issues, concerns and priorities raised by my constituents during my annual pre-budget consultations. As a member of Parliament, I take seriously my job to represent my constituents' voices in Ottawa. In March of this year, I hosted four town hall meetings: one in Port Moody, one in Coquitlam, one in New Westminster, and a final one by telephone. I also meet with all three mayors and councils in my riding, as I believe it is important to also listen to their priorities and concerns. I also sent out a survey to every household in the riding, asking constituents for their input on spending priorities and economic concerns. In total, I engaged thousands of constituents on what they would like to see in this year's budget.

My constituents' number one priority is health care. I believe Canadians are proud of our health care system, which is the envy of countries around the world. However, we also recognize the importance of ensuring health care remains universally accessible and properly funded. I hear far too many stories from people who have to wait months on end to see a specialist or to receive a vital surgery. The government's hands-off approach to health care is unacceptable. Instead of working with the provinces and territories to address the challenges facing our health care system, the current government unilaterally imposed a funding scheme that actually sees federal health care transfers decrease in the long term.

The high cost of prescriptions is another issue of serious concern, particularly for seniors who must also balance the realities of shrinking pensions and the shortage of affordable housing options. The current government's track record on support for Canada's seniors is dismal. The Conservatives' scheme to raise the age of retirement for the old age security from 65 to 67 years of age is disgraceful.

I also heard from a number of constituents who are frustrated with trying to find quality, affordable child care. Canada's New Democrats understand that a comprehensive national solution is required. That is why we are proposing, with the provinces and the territories, to establish and fund a Canada-wide child care and early learning program.

Another troubling issue we are seeing across our country is youth unemployment rates, which remain stubbornly high, at 13.5% for those under 25, compared to 7% for those over 25. Let us not forget that many students coming out of post-secondary education are saddled with record-high levels of student debt. Where are the jobs of tomorrow? Where are the quality jobs that enable people to support a family or pay down student debt or save for a down payment or save for retirement? Quality full-time jobs are disappearing at an alarming rate, and we are not seeing this issue get the attention it deserves in this budget.

I will take a moment to credit some of the great small businesses operating in my riding, like Resonance Technology, an innovative company on the cutting edge of new technologies. Companies like this are at the forefront of our economy, driving growth and creating jobs. We need more of this. Unfortunately, the reality is that income levels for average Canadians have stagnated while the cost of living continues to increase. From food prices and housing costs to MSP premiums and bridge tolls, British Columbians have been feeling the pinch. However, their tax burden will soon be a bit lighter, thanks to the people's successful efforts to overturn the harmonized sales tax, which was unfairly imposed on B.C. by its provincial government in collaboration with the current federal Conservative government.

I would like to focus on the claim by the Conservatives that this budget would increase funding for infrastructure. In fact, when the numbers are adjusted for inflation, over the next four years federal infrastructure funding will be $4.7 billion lower than it was last year. City officials are asking for a long-term funding arrangement so they can plan for the needs of our growing regions.

Improved transit infrastructure is one of the greatest needs in the Lower Mainland. Residents in Coquitlam and Port Moody have waited well over a decade for the Evergreen Line, which was nicknamed the “nevergreen line”, after years of delays made many people question whether it would ever be built.

The case of the Evergreen Line demonstrates that our governments are not up to the task of working together to meet the transit needs of our growing communities. At every town hall meeting I held, people expressed concern over the government's agenda to degrade environmental protections.

Let us talk about its record. Through last year's massive omnibus budget bills, Bills C-38 and C-45, the Conservative government gutted environmental protections from every act it could think of: the Fisheries Act, the Navigable Waters Protection Act, the Canadian Environmental Assessment Act, and many others. Canadians rallied to save the Experimental Lakes Area, which conducted world-class freshwater research. Unfortunately, the government chose to ignore these calls. A number of my constituents were particularly disturbed by the government's Orwellian attitude towards scientists, environmentalists and public servants. In March, the official opposition introduced a motion in Parliament calling on the government to defend basic scientific freedoms and evidence-based policy. I am sad to say that even the Prime Minister voted against that motion.

The government has been in power for seven years now and its arrogance is beginning to show no bounds. Its unilateral move to shut down the Kitsilano Coast Guard station flew in the face of expert opinion as well as the will of the public and municipal and provincial governments. Despite serious safety concerns raised over shutting down the only Coast Guard station in Vancouver, which is home to the busiest port in Canada, the government rammed through this closure. Consolidation of marine communication traffic services will put B.C.'s coast at greater risk. The government has also cut oil spill response centres. Given the number and scale of proposed resource development projects, this is the worst time to be cutting enforcement monitoring and emergency response.

This budget has announced $108 million in cuts to the Department of Fisheries and Oceans. While the government claims that this will be found through efficiencies like travel and printing, we know this will have a serious impact on DFO front-line services, including its ability to carry out its mandate to protect wild fish. Last year's cuts left DFO with only five offices in B.C., and the smallest staff level since 1983.

It has been almost seven months since Cohen's recommendations were released and we have yet to hear a single word from the government on how it will respond. Following the $26 million Cohen report, the government should be responding to the 75 recommendations rather than turning its back on B.C. salmon and fish habitat.

All of the concerns I have highlighted speak to the serious feeling of neglect that has been brewing on the west coast. The Conservative government has been ignoring the priorities of British Columbians for far too long.

I would like to conclude my remarks on the budget by focusing on a theme that was frequently raised at pre-budget consultations. There is a feeling of restlessness and discontent among the electorate with the state of our democracy. I heard much criticism on the way the government has centralized power, limited debate and tried to marginalize the role of Parliament, not to mention the muzzling of scientists and quality information. Taxpayers are frustrated with being on the hook for the unelected, unaccountable and under-investigated Senate.

Principles anchored within the Senate's mission, such as the protection of minorities and balancing the executive and legislative branches of government, are important principles, but they must be addressed through accountable and democratic means. Abolishing the Senate is part of the NDP's broader and progressive vision for democratic reform. This means reforming our electoral system to ensure that Parliament reflects the political preferences of Canadians. New Democrats have long advocated for a system of proportional representation. A reformed electoral Senate would go a long way toward better representing Canadians in Parliament. It could reverse dismally low voter turnout rates and improve representation of women and minorities.

Canadians are hungry for change. Canadians are looking for leaders who are not afraid to tackle the issues facing our communities and our regions. This was an underwhelming budget. I believe Canadians want to see their federal government build healthy, sustainable communities.

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

Canadian Broadcasting Corporation

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, the second petition is from residents of the Vancouver area concerned about the protection of the CBC, which is particularly timely given the debate we are having today on provisions in Bill C-60 that would compromise the independence of the CBC.

Procedure and House Affairs

[Pierre Nantel, NDP, Longueuil—Pierre-Boucher, QC]

Mr. Speaker, I seek unanimous consent of the House to move the following motion: That, notwithstanding any Standing Order or usual practice of the House, clauses 213 to 224 regarding the National Capital Act and the Department of Canadian Heritage Act be removed from Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, and that these clauses do compose Bill C-62; that Bill C-62 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 Canadian Heritage; that Bill C-60 retain the status on the order paper that it had prior to the adoption of this order; 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.

Labour

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, as we know, the Conservatives are against Canada's millions of unionized workers and their rights, which they systematically attack. However, hidden at the very end of Bill C-60, so that few people would even realize it is there, is a measure attacking the managers of crown corporations by interfering with their negotiating powers. Now the Conservatives want to be able to control the offers that management puts on the table, as though the head of the CBC needs any advice from a minister who lost track of $3 billion.

Before putting his nose into everyone else's business, can the minister do his homework and respect the independence of crown corporations?

Economic Action Plan 2013 Act, No. 1

[Lynne Yelich, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, I am pleased to rise today in the House to speak to Bill C-60, the budget implementation act, 2013.

I am proud of our government's fiscal record and how well we have come through the worst recession in a generation. Canada continues to be number one among all G7 countries in economic performance and job growth and, under the leadership of our Prime Minister, will continue to focus on what is important to Canadians: creating jobs and economic growth, while keeping taxes low, balancing budgets and balancing the budget by 2015.

The economic action plan for 2013 was well received in my riding of Blackstrap. Saskatoon is one of the fastest growing cities in Canada, and this legislation would provide much needed infrastructure support to the city and surrounding rural areas.

Bill C-60, the budget implementation act, proposes to legislate key elements of economic action plan 2013, including indexing the gas tax fund to offer stable, predictable funding for municipal infrastructure. Canada's gas tax fund provides long-term funding for Canadian municipalities that can help build and revitalize their public infrastructure and their assets. Communities choose projects locally and prioritize them according to their needs. The gas tax fund is making a difference in communities, in my riding of Blackstrap and throughout the province of Saskatchewan.

Today, more than 3,600 municipalities have benefited from the financial support of economic growth and provide a high quality of life for families in every city and community across the country. Our government's record on infrastructure investments in economic action plan 2013 exceeds the amount of investment required to cover the cost of federal infrastructure for the next decade.

In fact, our Conservative government has introduced the largest long-term federal commitment to Canadian infrastructure in our nation's history, $70 billion over the next 10 years. In the next two years, we are investing close to $10 billion in infrastructure. That is more than the previous Liberal governments spent during their entire 13 long years in power.

Since 2006, we have invested more than $40 billion, supporting more than 43,000 infrastructure projects from coast to coast to coast. As a result of our investments, we have brought down the average age of Canada's core public infrastructure from a peak of 17 years in 2001 to an estimated 14.4 years in 2011. We can see what a significant contribution that is to our public infrastructure. It is now lower than the historical average age over the last 50 years.

Bill C-60 would also see the introduction of a new first-time donor's super credit for the first-time claimants of the charitable donations tax credit, to encourage all young Canadians to donate to charity. Canadians recognize that the charitable sector plays a vital role in our society and provides valuable services to Canadians, including the most vulnerable.

Canadians also provide generous support to the sector in recognition of its important work. Recent data from Statistics Canada shows that more than 5.7 million Canadians donated almost $8.5 billion to registered charities in 2011. Canada's incentives for charitable donations have been described as the most generous in the world. Registered charities are exempt from tax on their income and may issue official donation receipts for gifts received, which donors may use to reduce their taxes by claiming the charitable donation tax credit.

In 2012, federal tax assistance for charitable donations exceeded $2.9 billion. The standing committee on finance reported that there is a need to foster and to promote a culture of giving and that tax incentives can play a role, both in increasing the number of new donors and encouraging existing donors to give more.

Our government has responded to the committee's report by proposing the new temporary first-time donor's super credit, designed to encourage new donors to give to charity.

The first-time donor super credit supplements the charitable donations tax credit by providing an additional 25% tax credit for a first-time donor on up to $1,000 in monetary donations. An individual would be considered a first-time donor if neither the individual nor the individual's spouse or common-law partner have claimed the CDTC or the FTDSC in any taxation year after 2007. The FTDSC may be claimed only once and may be claimed in any of the 2013 to 2017 taxation years.

I see, Mr. Speaker, that you would like me to sit down.

[Isabelle Morin, NDP, Notre-Dame-de-Grâce—Lachine, QC]

Mr. Speaker, today we are debating Bill C-60, Economic Action Plan 2013 Act, No. 1. However, this piece of legislation does not address Canadians' real concerns.

Ever since the Conservatives’ 2013 budget was unveiled, my constituents have been calling me to say that they feel isolated and neglected by this government’s economic measures.

I have to say that I feel quite privileged to be able to speak to this bill, given that the Conservatives have imposed time allocation for the thirty-second time, which is surely a record for Canada. At least I have the opportunity to voice my opinion on the subject.

Unfortunately, we have become accustomed to Conservative bills that lack depth. Instead of actually being concerned about ensuring our economic recovery, creating stable jobs and tackling the growing debt levels of Canadian households, the Conservatives are proposing austerity measures that will kill jobs. These measures will mean a higher cost of living for Canadian families and will stifle economic growth.

For instance, there is nothing in Bill C-60 to deal with household debt in Canada, which is currently estimated at a record level of 167% of disposal income. That is a staggering number.

The Conservatives’ economic agenda does not address the needs of Canadians. Canadians need measures that are geared toward creating quality jobs. The NDP will be voting against budget 2013 and the budget implementation bill, unless they are reworked to take into account the real priorities of Canadian families.

While I do agree with some of the measures contained in this budget, I have to say that, since I have been a member of this House, the Conservatives have refused to split budget bills into components that we can vote on separately, and thus let Canadians know, through a transparent process, which measures we support and which ones we do not.

I would like to single out several measures in this budget that I think are worthwhile in order to let people know exactly which ones I consider to be important. I will then tell you which budgetary provisions I think completely miss the mark.

Budget 2013 provides for two tax credits that I endorse: one for adoption-related expenses and one for first-time claimants of the charitable donations tax credit. I believe that these are positive measures. Furthermore, the budget streamlines the process for approving tax relief for Canadian Forces members and police officers, which I strongly support. It extends the temporary accelerated capital cost allowance for the manufacturing sector. It includes measures to facilitate the collection of unpaid taxes and taxes sitting in tax havens and to streamline Tax Court of Canada procedures. It provides for changes to the GST and HST that are generally positive. Lastly, it calls for reducing the general preferential tariff, the GPT, on sporting equipment and baby clothing. These are sound measures, and I am not afraid to say so.

However, the Conservatives will not split up the budget and instead are forcing us to vote on a mammoth bill, as was the case in 2012 and 2011, which prevents me, as an MP, from voicing my true opinion of the budget to my constituents. I find it very troubling that I am unable to do so. However I do know that the Conservatives will seize the opportunity to say that we are voting against these measures when we ask any questions. Incredible.

I would now like to turn my attention to some of the important issues raised by Bill C-60 which is chock-full of various measures.

This budget contains tax increases for Canadians. It calls for changes to the bargaining mandate of the Treasury Board and 49 crown corporations. It proposes changes to the temporary foreign worker program, as well as changes related to citizenship and immigration. It announces the merger of the Canadian International Development Agency with Foreign Affairs and International Trade Canada. It highlights the Conservative government’s ongoing failure to address the challenges facing aboriginal peoples and the lack of viable, concrete job-creation measures for Canadian youth, the segment of the population hardest hit by the economic downturn.

Bill C-60 as tabled amends 49 laws and includes new legislation along with complex provisions containing myriad details and programs that will affect Canadians, the very people who elected us to establish a more just society and bring about wealth and prosperity for all Canadians.

For the sake of the public, we have a duty to weigh the major issues that this bill targets, but it will be very difficult to accomplish this in such a short period of time. The fact of the matter is that the Conservatives are giving us a mere four days to debate this mammoth bill.

On top of everything else, we have just learned that the Minister of Finance has asked the Standing Committee on Finance to set aside only five days to study the bill.

The committee that is supposed to conduct an in-depth review of the bill will have a mere five days to tackle this job. That is outrageous.

The NDP opposes Bill C-60, not only because of the measures it contains, but also because the process lacks transparency and is unethical from a parliamentary standpoint. Bill C-60 contains a broad range of measures that warrant careful consideration, but instead, the Conservatives have tabled another omnibus bill, much like bills C-38 and C-45 that were brought in last year. Tabling such a wide-ranging bill and imposing such a tight deadline for review undermines the very nature of Parliament, as members do not have the opportunity to learn everything they need to know about the bill and its ramifications.

Unfortunately, it has become commonplace to say that such actions weaken the nature of Parliament. Yesterday, while I was knocking on doors in my riding, I talked for 20 or 25 minutes to a man in Dorval, whose name is John and who is 50 or 60 years old. He told me that he had always voted to do his duty as a citizen but that he had become cynical in the past two years. He told me that he was dismayed and that he no longer believed in the parliamentary process because of our government. I was astounded and did not know what to say to him. I am not cynical, but I had a hard time finding good arguments, because I, too, think that what is happening in Canada is not reasonable and not healthy.

Moreover, the Parliamentary Budget Officer has pointed out several times that members of Parliament do not have access to the information they need to exercise their role of oversight. For the third time, the Conservatives are undermining the democratic process inherent in Parliament and trying to escape the watchful eyes of parliamentarians and the public.

I would like to point out another important concern. The former Parliamentary Budget Officer clearly indicated that the cuts announced in the 2013 budget are not necessary in order to re-establish a structural surplus. In his opinion, the 2013 budget will eliminate thousands of jobs, reduce direct program spending and slow the growth of Canada's GDP.

There is evidence. According to estimates by the new Parliamentary Budget Officer, the 2012 budget, the 2012 budget update and the 2013 budget will lead to the loss of 67,000 jobs by 2017 and a 0.57% drop in the GDP. Based on these facts, the Conservatives' 2013 budget will raise the unemployment rate in Canada. It is unfortunate, because when unemployment rates are high, the economy runs slowly. I wonder what logic the government is using when it talks about the economy.

The Conservatives love to boast about their job creation record. Yet, 1.4 million Canadians are without work and 240,000 more young people are unemployed than before the recession. Despite that, the Conservatives' Bill C-60 offers no job creation measures.

As the official opposition's youth caucus president, I am particularly concerned with Canada's youth and young workers. As a result, the rest of my speech—which is not much longer—will focus on the younger generation that is ignored by the Conservative government.

In today's labour market, there is a desperate lack of jobs for young Canadians aged 15 to 24. A study by TD Economics revealed that a young person who is currently unemployed or under-employed will be financially scarred for 18 years. This young person, who wants to work and often has an extensive education, not only has a problem finding work, but will be affected in the future with reduced earning potential. Right now, this young person has no job and cannot invest in the economy. As I said, it will take this young person 18 years to overcome the economic deficit that is being created today. This is not the way to make the economy work.

For these young people in their 20s, this means putting off purchasing their own property, having children later, needing more time to pay off their debt and earning lower salaries. That is what the Conservative government is offering our young people at this time.

Combining the underemployment crisis and unemployment among young people with the tax hikes announced in budget 2013, with Bill C-60, the Conservative government is in fact reducing my generation's purchasing power.

Although the Conservatives promised not to raise taxes, their budget includes new tax hikes for Canadians on almost everything, from hospital parking to credit unions, safety deposit boxes and labour sponsored investment funds, not to mention bicycles and strollers. These tax hikes will cost Canadians $7.8 billion over the next five years.

Why did the Conservatives promise not to raise taxes if they knew for a fact they were going to raise them by several billion dollars? Budget 2013 is based on an ideology that is harmful to Canadians. Although economists agree that austerity measures undermine growth, the Conservatives are determined to impose these backward-thinking measures in order to achieve their political agenda of cutting the deficit by 2015.

I see my time is up. Thank you, Mr. Speaker, for allowing me to finish and giving me a chance to speak to this bill. I will now take questions. However, I would like to emphasize that, although there are some good measures here, it is unfortunate that we have to vote on everything at once.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, the member opposite must know that she has no credibility when it comes to the economy. According to the Parliamentary Budget Officer's report, budget 2013 will actually eliminate thousands of jobs, reduce direct program spending and slow the growth of the gross domestic product.

What is more, the Conservative government has invoked closure in the House of Commons in order to prematurely end debate on this budget implementation bill. It should be noted that we have just learned that the Parliamentary Secretary to the Minister of Finance recently presented a notice of motion to the Standing Committee on Finance in order to reduce the number of meetings allocated to complete the study of Bill C-60.

Why does the member opposite believe that five days are enough to study this bill that amends more than 50 Canadian laws?