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

[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.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, my colleague, the member for Kildonan—St. Paul, referenced some of the money in the budget that would go to the CNIB. We welcome that. Unfortunately, there is little else in the budget for persons with disabilities. In fact, 50% of people with disabilities in our country are unemployed. That climbs to 80% when it is developmental disabilities. There is nothing to change that. There is no action by the government on ratifying the UN convention on persons with disabilities. It owes; it is 14 months late in giving a report card to the UN. There is still no indication of where that is.

On the gas tax, the member suggested that somehow this would be a big boon to municipalities. In fact, not one nickel of increase to the gas tax would flow until 2016 at the earliest, which is at least three years hence. Regarding the money that the Conservatives say is in the budget, there will be three more budgets before there would be any more money flowing in the gas tax indexing that they are crowing about.

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

Mr. Speaker, we hear daily from members across the way that the budget is no good, that nothing good is happening here in Canada. In actual fact we have seen, over every community, so many jobs created. We have heard people, like the those in the Association of Manitoba Municipalities in my province, say it makes a big difference because then municipalities know for 10 years that the funding would be coming and it would allow them to do the proper planning for the huge capital projects.

I hear members opposite saying these are not good moves. Obviously we are one of the countries across the globe that other countries look up to, because we have a stable economy, Canadians are working and we have focused on one major thing. Well, we have focused on a lot of things, but the major thing is to keep our economy stable. The major thing is to keep people working and to promote economic growth. This country is in a really good position. Families are working and living well because of the economic expertise of our Prime Minister. I thank him for that.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, we know there is a cabinet shuffle coming up, and if there is one thing the Prime Minister likes it is someone who can give a good message even when it is really a bad one. When we listen to the member for Kildonan—St. Paul, her remarks almost make this draconian budget, which is an attack on the middle class, look good. The Prime Minister certainly should consider her as a replacement.

The fact of the matter is that this budget would increase taxes on middle-class Canadians by close to $2 billion every year. The Conservatives take $550 million more every year from the profits of small business owners. She talked about that, but did not mention that figure. There is the recurring payroll tax hike of another $600 million each year. She talked about some of the tariff cuts, which would reduce hockey equipment, yes, but she did not mention the tariff increases that would increase the costs for many Canadians, while not doing anything about enhancing the manufacturing base within Canada.

In her remarks, she does not mention the hidden measures that are an attack on the middle class in our country. It is easy to see why we will oppose the budget because—

[The Deputy Speaker, NDP, Joe Comartin]

Order, please. I ask all members to keep their questions and responses short.

The hon. member for Kildonan—St. Paul has only 45 seconds.

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

Mr. Speaker, this is passing strange to hear, when I just explained how well economically placed our country is and how associations across the country are praising the government for the strong, stable economic environment it has placed in our country.

The main thing is that we should work together as parliamentarians. The budget obviously speaks to families in our communities. It speaks to our aging demographic. It speaks to people who need jobs. As members of Parliament in the House, partisan remarks should be left by the wayside, and we should all be working very closely to ensure that our country remains economically stable for all Canadians.

[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.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I thank my colleague for his comments. However, he has not dealt with one of the biggest issues facing us, and that is the lack of democratic action on this bill. We are not permitted to discuss it in the House of Commons beyond the end of today, and we have been told that there will be only five days of debate in committee. With five days for 50 bills at two hours a day, that is about 10 minutes for each bill to be studied in committee.

I am wondering if the member would comment on the democratic deficit we seem to have encouraged, at this Conservative government's urging, by limiting debate on things he claims are very important, such as the increase in the gas tax. As I pointed out earlier, it will not take effect until there have been three more budgets, and those three more budgets will probably not be studied in any great detail, because the government is so fond of limiting debate.

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, what my colleague forgets is that this is going to a number of committees, and there will be debate at those committees, so it is not being limited.

The member went on about the municipalities and the money. I would remind him of what the Federation of Canadian Municipalities said about budget 2013:

Today's budget delivers significant gains for Canada's cities and communities. We applaud the government for choosing to continue moving our communities forward even as it meets its immediate fiscal challenges.... By maintaining and extending unprecedented investments in our cities' infrastructure, it will spur growth and job creation....

I do not know why the other side would not get behind this budget and get it passed in a hurry.

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, I could not help but comment on all the smoke-and-mirrors talk about what the future is going to be. I would hope that things were just as rosy as the picture the government is painting, but the reality tells us that it is not the way previous commitments and suggestions have been.

On infrastructure, as far as what cities require, they had no way to say anything else, because if they had said anything else, FCM and the cities would have been muzzled, the same way our scientists, researchers and many anti-poverty groups have been muzzled. As far as what FCM said in response, what else would Conservatives expect them to say?

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, I guess doing publications and papers and so on is muzzling. I would say to my hon. colleague across the floor that this is a good budget. The Federation of Canadian Municipalities knows the difference between this government and the former government.

Workers in this country know the difference. They know about the $48-billion EI surplus taken out of their funds. Municipalities in Ontario and across the country remember the $25 billion the Liberals took out of social transfers.

This is a good government. The municipalities in the Federation of Canadian Municipalities recognize this.

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, my colleague from Oxford knows very well the importance of the auto industry, with Toyota in his riding and with the supporting parts sector growing as well. I wonder if the member would comment on both the renewal of the auto innovation fund and the advanced manufacturing fund. What could that mean across southern Ontario and for the Canadian economy?

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, we not only have a Toyota plant in my riding, we have a General Motors CAMI plant in my riding.

Both of those funds are essential to the Canadian auto industry as we move forward. We compete around the world, but we also compete with our American neighbours. Keeping the Canadian auto industry strong is important to ridings, not just for the auto plants but for all the supplier industries across Ontario that supply these plants. Our government recognizes the importance of manufacturing, and certainly, my riding is a beneficiary of those things.

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, if we would just let loose a bit, we could really have quite an interesting debate on the budget in this House. We could really talk back and forth with one another about what we think should be in there versus all the fantasy comments being made.

It is a very convincing argument, if somebody on the other side is actually listening to it and believing it. Again, that is what governments do. I have been there. We stand up and promote our budgets and say that they are the best thing since sliced bread. We all do it. However, our job on this side at the moment is to ensure that we show its flaws.

I am happy to be standing here and speaking. This will be the 10th budget I have been asked to evaluate and vote on since I was elected to the House, so I have been around long enough to have seen them from all sides. In that time, I have seen both good and bad fiscal plans. Again, I have to say that I think budget 2013 is probably the most disappointing because of the federal fiscal strategy we are being asked to consider. It is not a strategy I think Canadians would really want us to support.

Let us have a bit of history. In 2006, the Conservative government came to power by making outlandish guarantees, and the Canadian public, or 39% of it anyway, bought those outlandish guarantees. In fact, the Conservatives promised to leave any notion of Conservative fiscal tendencies buried in a sea of red ink. At the time, the Prime Minister made the absurd commitment that he would somehow reduce taxes while also making radical spending increases, and we all know that this does not work. Of course, what did the Prime Minister do? He increased spending, a move that erased the $14-billion surplus the Conservatives inherited from the Liberals when they came into power. What did they do with that? They immediately turned around and invested it. Some people would say that they used that $14 billion of taxpayer money to buy the votes for the next election. Whatever happened, they got $14 billion and spent it very quickly. I can only imagine that Brian Mulroney would have loved to have had something like $14 billion to spend on all the things he wanted to try to achieve with a majority government.

Unfortunately, once the Prime Minister had recklessly spent the cupboard bare, he started increasing income taxes, payroll taxes. Then the Conservatives found new and creative ways to levy hefty fees and tariffs on everyday essentials, such as cancer wigs, household appliances, home heating oil and even blankets. Then, of course, what came? It was a severe rollback of vital income supports and social systems that low-income Canadians rely on each day for survival. The current government slashed support for seniors; attacked middle-class families; and advanced policies that all but slam the door on anyone who is sick, elderly, underemployed or generally working class.

However, this is not the first time Canada's finances have been run into the ground at the hands of the so-called Conservative Party. The last time a Conservative government actually balanced a federal budget in Canada was 101 years ago, in 1912. I know that the Conservatives would like to rewrite history, but they cannot erase everything. That is clearly in the history books. The last time any Conservative government ever balanced a budget was 101 years ago. When we hear all this wonderful pie-in-the-sky stuff, we have to keep that in mind. That Prime Minister was Robert Borden. He too inherited a surplus from a good Liberal predecessor, Sir Wilfrid Laurier. Just as the current government did, Borden managed to maintain it for only one year before dropping into deficit. It sounds as if our current Prime Minister is following the Borden example through excessive spending and reckless budgeting.

Between 2006 and 2008, the Conservatives put Canada back into the red, well before, not after, there was any recession. Well before, we were already in debt. Despite their rolling promises of restraint and prudence, they have not balanced the books since.

Now in budget 2013, the Conservatives promise that they will eliminate the deficit by 2015. Of course, they have made that promise before, and they just cannot seem to hit their targets. So far, the Conservatives have missed every target, but they expect us to believe that on the eve of the next federal election, somehow they are going to have fixed up the mess and will have balanced the budget.

I think a closer look at the financial plan would provide every reason for all of us as parliamentarians, and all of us as taxpayers, to be very suspicious of the pie-in-the-sky numbers that the Conservatives are talking about.

It has been said by my colleague from Wascana that the Conservative playbook contains seven simple tricks.

They inflate revenues by basing their fiscal planning on optimistic projections of economic growth. They ignore the reality, as they have before, that their numbers have never been correct. Time and time again their forecasts have been proven to be wrong, as both the IMF and the Bank of Canada have done once again in the past month.

They also create the illusion of financial flexibility. Conservatives have lowballed the reserves that should be in place to serve as fiscal shock absorbers against future economic setbacks. They have no contingency plan other than spending on the national credit card.

When a government department does not use all of its budget, the excess money lapses back to the treasury. The Conservatives are counting on very large lapses over the next several years. In other words, they are making big announcements, hoping that everything will go the way they want it to go.

While cracking down on those who do not pay their taxes is an absolute necessity, and for that we give them two points of credit, the Conservatives claim of a balanced budget depends heavily upon quickly collecting billions in unpaid taxes. That seems highly improbable, given that they are also chopping millions of dollars from the same agency that is supposed to be going after the cheaters.

For big programs like infrastructure, the government claims to be increasing investments. We talked about that a bit earlier. However, any increases are actually years away, and our cities and FCM know that. It is a trick called “back-end loading”. In reality, the build Canada infrastructure budget has been slashed, not increased by $1.5 billion, in each of the next two years.

Despite false claims to the contrary, the government is increasing taxes in dozens of nefarious ways, on everything from hospital parking fees to blankets. The two biggest types of Conservative tax hikes are higher tariffs on imported goods and higher employment insurance payroll taxes. Again, this would hurt our small businesses in Canada that we need to be promoting.

Then there is the one that they are forever planning: using all these tricks to concoct the false illusion of a balanced budget by 2015. The Conservatives will claim to have met their fiscal objective just before an election, and before proof to the contrary can become available we will be back into another election.

We all know that people struggle with their day-to-day expenses, from diapers to Kleenex, to formula and healthy food. The cost of raising a family is growing in Canada. We all know seniors who rely upon that monthly OAS/GIS cheque to keep their lights on and food on the table. This is in our rich Canada. We all know of someone who is desperately looking for work so they can keep their family in their home. These are the people who budget 2013 has forgotten: working-class Canadians who do not fit into the Conservative plan.

The Conservatives are trying to trick Canadians into thinking they have the experience necessary to champion the economy, but in reality they are little more than professional grifters with a billion-dollar publicly funded advertising budget that is constantly telling us how well we are doing with the economic action plan that is paid for by them. It might be time for the Prime Minister to admit that while there are solutions, he is not thinking of them.

The budget includes a bail-in regime that would allow banks to generate capital by dipping into the savings of their account holders. The budget increases taxes and tariffs on middle-income Canadians and businesses, and the budget abdicates federal responsibility for a range of important scientific, social and economic programs.

I think budget 2013 betrays the trust of Canadians and shows just how devoid of compassion and trust they are.

[Ted Menzies, Conservative, Minister of State (Finance)]

Mr. Speaker, I feel obliged after listening to this hon. member's speech to clarify a few inaccuracies.

First, at the tail end of her speech she talked about the bail-in clause that is in the budget. I would like anyone who is listening to this to totally disregard that statement. Obviously there is a misunderstanding. I would be happy to explain to the hon. member that there is no way on earth that the banks can touch the assets of Canadian depositors. I would think she knows that. There is $100,000 that is guaranteed by the Canada Deposit Insurance Corporation. I would like to reassure Canadians that does not happen. The bail-in we are talking about would use our own contingency capital.

However, I would like to ask the hon. member if she feels she has a better understanding of economics than the top 15 economists who have continually agreed with our budget projections?