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

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, it is important to attempt to clarify what my hon. colleague means by the bail-in regime so that Canadians do not get concerned and pull out all of their money. There is a $100,000 guarantee in protection and all of that, but I do think it is important because it is in the budget. He should make sure it is very clear to Canadians exactly what he means on that point so we do not have Canadians panicking.

I have to say that my hon. colleague, for whom I have the utmost respect, truly believes everything he writes and says, and his ideology fits right into it. The issue is that we have had many economists say how wonderful every one of those budgets has been, and every one of them has failed to meet the point. The Conservatives have never met their budget. They project and project.

We can always find people who believe in our pie-in-the-sky dreams and hope it will go that way, but the reality is that the Conservatives have never met any of their targets yet.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I agree with my colleague's assessment of the Conservatives' economic incompetence. The last time they eliminated the deficit was 100 years ago.

However, I do no think that the Liberals can brag about eliminating the deficit by raiding the employment insurance fund or reducing transfers and placing a heavier burden on the provinces.

In a federation, the provinces and their situation are part of achieving a zero deficit. I feel—as does the future NDP government, I hazard to say—that if the government transfers the entire debt load to the provinces, it has not achieved its goal.

I would like to give my colleague the opportunity to set the record straight. The Conservatives have failed, but if we look at the impact the Liberals' so-called zero deficit had on the real world, they have no right to boast.

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, when the Liberals were elected in 1993, we had an over $42 billion deficit left to us by the Conservative government. We were at a point where we were being chastised by third world countries about what had happened to Canada. There was no choice but to take very hard, swift action to try to get Canada back into the zone where it was supposed to be.

Paul Martin and Jean Chrétien had the courage to make the kinds of cuts that had to be made to bring everything into line, and for two or three years everybody had to suffer a little bit. However, where were we 13 years later? We ended up with a $14 billion surplus, investments going into health care, a 10-year health accord, Kyoto, the Kelowna agreement, all kinds of things moving our country forward in the way it was supposed to.

That was a tough decision to make, but the Liberals clearly had the foresight and the courage to do that. I really question the kind of budgeting there would have been if we would have had the NDP in charge at that time.

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

Mr. Speaker, sometimes when I hear my Liberal colleagues give a speech in the House about their record from 20 years ago, it almost reminds me of some of the dinners we have attended for former sport athletes who are well passed their prime, talking about the good old days. However, the good old days are a long way away.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Some want them back.

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

I do not think so.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mr. Speaker, is my colleague opposite aware that, on numerous occasions, we have asked to split this legislation to ensure, for example, that provisions affecting the Department of Canadian Heritage would be addressed separately? Does he not believe that it is better to have a public broadcaster as opposed to a state-controlled broadcaster?

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

Mr. Speaker, let me read a quote the member may be interested in. I know his province also has manufacturing. This is from Jayson Myers, the President and CEO of Canadian Manufacturers and Exporters. It goes on quite a way, but it talks to the last point that I made about the accelerated capital cost. He says, “It creates an incentive because manufacturers will lose these tax savings if they do not continue to invest”. It all—

[The Deputy Speaker, NDP, Joe Comartin]

Point of order. The member for Huron—Bruce will have to take his chair for a moment.

The hon. member for Longueuil—Pierre-Boucher on a point of order.

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

Mr. Speaker, I wanted to make sure that the interpretation was working because he obviously did not understand a word of my question.

[The Deputy Speaker, NDP, Joe Comartin]

That is not a point of order. Returning to the member for Huron—Bruce.

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

Mr. Speaker, he can flap his gums all he wants over on the other side, but what we are talking about here is what would deliver for Canadians. It would deliver for people in my riding. If he were to get on board, it might even help people in his riding.

We are talking about helping manufacturers. We are talking about getting people back to work. What is he talking about? We have put a billion dollars into the CBC. How much more do you want?

[The Deputy Speaker, NDP, Joe Comartin]

I would again direct all members to direct their questions and comments to the Chair, not to each other.

Questions and comments, the hon. member for Charlottetown.

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, I thank the hon. member for Huron—Bruce for his comments. I serve with the member on the veterans committee. He is indeed one of the hard-working members of the committee and someone who I think really does have the interests of veterans at heart. This is why some of his remarks with respect to the government's record on veterans are somewhat troubling. When he trumpets the fact that the government says it has maintained funding for veterans, he forgets that there have been more than 800 job cuts. He forgets that there has been a download of services to Service Canada at the very same time that it is making cuts; cuts of 46% in my province. He forgets about the comments that were made by the Auditor General, highly critical of the case management services provided by Veterans Affairs. I would add that my province is the only one that has no case managers. They were all taken out in the last budget.

However, I want to focus on the last post fund. He trumpets the last post fund. My question for the hon. member is this. There have been improvements made in the budget for the last post fund, but two-thirds of all claims are rejected. Of those two-thirds that were rejected prior to these changes, how many of those two-thirds of veterans who were rejected would now receive help under the fund?

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

Mr. Speaker, the member asked about four or five questions, but one I would like to answer. He did make a point about the efficiencies that have been found within the department. It is not 1972 anymore. It is 2013. We can do things differently. We can do things more efficiently. As taxpayers, we expect that.

I choose to look at the fact that it is 2013 today. We can operate business differently. Up until a few years ago it was almost as if the highest technology Veterans Affairs had from the Liberal legacy was a typewriter. Therefore, we have made the investments. We have gone on our initiative to transform Veterans Affairs. I am proud of that. We are operating in a way that delivers funds to veterans, and they do not get spent on administration.