Economic Action Plan 2013 Act, No. 1

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

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 10, 2013 Passed That the Bill be now read a third time and do pass.
June 10, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give third reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, because it: “( a) weakens Canadians' confidence in the work of Parliament, decreases transparency and erodes the democratic process by amending 49 different pieces of legislation, many of which are not related to budgetary measures; ( b) raises taxes on Canadians by introducing tax hikes on credit unions and small businesses; ( c) gives the Treasury Board sweeping powers to interfere in collective bargaining and impose employment conditions on non-union employees; ( d) amends the Investment Canada Act to triple review thresholds and dramatically reduces the number of foreign takeovers subject to review; ( e) proposes an inadequate Band-Aid fix for the flawed approach to labour market opinions in the temporary foreign worker program; ( f) proposes to increase fees for visitor visas for friends and family coming to visit Canada; and ( g) fails to provide substantive measures to create good Canadian jobs and stimulate meaningful long-term growth and recovery.”.
June 4, 2013 Passed That Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 228.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 225.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 213.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 200.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 170.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 162.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 136.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 133.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 125.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 112.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 104.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 12.
June 4, 2013 Failed That Bill C-60 be amended by deleting Clause 1.
June 3, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
May 7, 2013 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 7, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures (Economic Action Plan 2013 Act, No. 1), because it: ( a) raises taxes on middle class Canadians in order to pay for the Conservatives' wasteful spending; ( b) fails to reverse the government's decision to raise tariffs on items such as baby carriages, bicycles, household water heaters, space heaters, school supplies, ovens, coffee makers, wigs for cancer patients, and blankets; ( c) raises taxes on small business owners by $2.3 billion over the next 5 years, directly hurting 750,000 Canadians and risking Canadian jobs; ( d) raises taxes on credit unions by $75 million per year, which is an attack on rural Canadians and Canada's rural economy; ( e) adds GST/HST to certain healthcare services, including medical work that victims of crime need to establish their case in court; ( f) fails to provide a youth employment strategy to help struggling young Canadians find work; and ( g) ignores the pressing requirements of Aboriginal peoples.”.
May 2, 2013 Passed That, in relation to Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 11:35 a.m.
See context

Bloc

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

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

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

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

There are many eloquent examples of conflicts.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 11:45 a.m.
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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, we in the NDP have considerable concerns about the budget implementation act. In particular, I would like to bring up the issue of the direct control that the government is now going to have over crown agencies that it often describes as third party or at arm's length to the government. It seems as though the arms are getting shorter with each passing month here in Ottawa.

I wonder if my colleague would speak to the concern that many of us have around the fact that the government has now, in a sense, placed itself in control over the agreements that the CBC and other agencies may make with their unionized and non-unionized employees.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 11:45 a.m.
See context

Bloc

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

Mr. Speaker, I thank the hon. member for his question.

Basically, the government is trying to interfere in various ways in the internal policies of crown corporations. This is not the first time the government has done that; it has done so in the past. That is clear once again today, and in other recent events. Among other things, the government wants to be involved in the CBC.

As members may recall, the CBC's new code of ethics, imposed by the federal government less than a year ago, may also be dangerous, since it infringes on journalistic freedom and integrity.

The government now wants to interfere in collective agreements, which is completely unacceptable. Crown corporations must remain at arm's length from the government to remain independent.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 11:50 a.m.
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Conservative

Kevin Sorenson Conservative Crowfoot, AB

Mr. Speaker, I would like to thank my colleague across the way for his speech. Although we know that he does not support the government's budget, which is no surprise since he is part of the Bloc Québécois, there are measures in the budget that are good.

I would like to ask him about one of the points in the budget and how important it is to his municipality. Every time I go to the gas station and fill up my car or my truck, there is about a 10-cent excise tax. That 10 cents that the governments collect gets transferred back through the provinces to the municipalities.

The fuel tax rebate is a major thing for our municipalities, as we heard from the member for Huron—Bruce. It has tripled over the last number of years. Municipalities now know that they are going to be receiving that much.

What it also does is allow the municipalities to borrow, knowing that the money is coming. The budget would also implement a measure that would not only guarantee that it is going to happen but that it would be indexed, so that as inflation goes, municipalities know that the indexed amount will be there to help.

Could the member tell me how important that is to the municipalities in his constituency?

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 11:50 a.m.
See context

Bloc

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

Mr. Speaker, I would like to thank the member for his excellent question.

He is right. The government's infrastructure program is very helpful to municipalities. As a mayor in my former life, I was able to benefit from the program and passed that on to my municipality.

This program helps municipalities complete infrastructure work within a reasonable time frame. However, the problem is that the numbers announced in the last Conservative government budget were shared with municipalities in 2010. Now it has become a permanent program, but the new money that we would have liked to see added to the program is not there.

Unfortunately, there is no money for 2013. There is just $203 million on top of the $53 billion for 2014. There is only $203 million for 2015. In fact, municipalities will have access to all of the money only after the 2015 election.

The government is being proactive, but the majority of the money will be available for use only after 2015.

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 11:50 a.m.
See context

Conservative

Kevin Sorenson Conservative Crowfoot, AB

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / noon
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, I listened with fascination once again to the revisionist history that comes from the Conservative benches on what caused the global crisis. The Conservatives would purport that it was social programs in Europe that crushed the world economy when in fact it was the deregulation of the banking sector and irresponsible speculation in Ireland, Iceland and Goldman Sachs in the United States. That is the record. The fact that there was not clear regulation in place was what caused it. I find it disturbing that my colleague was attempting to claim that it was social programs in Europe that destroyed it. I see the continual attack on social programs in this country, which the current government is carrying out.

My hon. colleague talks about the fact that the Conservatives are good fiscal managers. We just had the Auditor General's report in which he said that the current government has no ability to account for $3.1 billion in spending. When Jean Chrétien said he lost $1 million and it was no big deal, the Reform backbenchers went crazy on it. They were jumping up and down in their seats. Now they cannot account for $3.1 billion. There is no trust in this government among the Canadian public.

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May 7th, 2013 / noon
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Liberal

Denis Coderre Liberal Bourassa, QC

Mr. Speaker, I rise on a point of order. I think do not I see a quorum.

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May 7th, 2013 / noon
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Conservative

The Acting Speaker Conservative Barry Devolin

Order, please. It would appear that there is quorum in the House.

The hon. member for Crowfoot, with a response.

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May 7th, 2013 / 12:05 p.m.
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Conservative

Kevin Sorenson Conservative Crowfoot, AB

Mr. Speaker, I am pleased to see everyone rushing in to catch the tail end of this speech. I appreciate that.

I was just going back through my notes again. If I left the hon. member with the impression that I am saying that Europe and the social programs were the cause for this recession, that is not what I said. I said that it was the issues in Europe and certainly in the United States, the housing markets and the banking industry. In fact, I went on and spoke about the sound banking that we have in this country, and that goes back years to other governments as well that laid out certain regulations for our banking industry. I certainly do not want to leave the member with the impression that I in any way said that it was social programs in Europe. I did not say that in my speech.

However, I would like to speak on the other point that this member brought forward. The Auditor General was very clear. He went back 10 years on the books, looked and asked if this $3 billion was from this file or that file. The Auditor General was clear that there was no money missing. It was out of the terrorism file, and going back to the former Liberal government of 2001 when all of a sudden we were thrown into quick responses on the terrorism file. Some things maybe were taken out of other departments. However, the Auditor General said that no money is missing.

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May 7th, 2013 / 12:05 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, last week the government quietly tabled a report, and it was interesting where it stated that the government reduced the number of employees from 278,092 to 262,902 from March 31 to December 31 of last year. Of the more than 15,000 jobs that were eliminated, 8,000 were full-time indeterminate positions, a reduction of about 3%. The remaining roughly 7,000 positions that were eliminated were for students and casual, or term, employees, the report indicated. The document, an annual report by the Prime Minister on the public service, shows students and casual employees, often women and younger members of the workforce, took the biggest hit.

My question for the member is in regard to providing services to Canadians; that on the one hand, the government puts a high priority on this sort of targeting, and then on the other hand, the Prime Minister feels it is necessary to increase the number of politicians in the House of Commons—

Economic Action Plan 2013 Act, No. 1Government Orders

May 7th, 2013 / 12:05 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Order, please.

The hon. member for Crowfoot.

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May 7th, 2013 / 12:05 p.m.
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Conservative

Kevin Sorenson Conservative Crowfoot, AB

Mr. Speaker, I am quite pleased to see that the public service is being reduced in some way. As much as we can do will be done through attrition. That is, it will be done through retirements. Some of the student layoffs and some of those things that the member makes reference to, although I have not seen the report, very well could be in temporary types of jobs as the employees are between college and another initiative.

However, this budget would bring forward a Canadian job grant that would be remarkable for students. It would allow them to retain a skill where governments and businesses help with the funding. Students today are excited about this because the studies that they will be taking will prepare them for the market and for jobs. That is what they want above anything else.

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May 7th, 2013 / 12:05 p.m.
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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, it is my pleasure today to rise to speak against the budget before us, both on content and on process.

Here we go again. We have a massive budget bill, over 100 pages, impacting innumerable statutes and bills that need to be debated in this House.

My colleagues seem to find this funny. It is not about being able to read. I can assure them I have learned to read at a fairly fast pace and comprehend. It is about Canadians' rights to have the budget debated in this House for transparency and for discussion. It is about giving duly elected members of Parliament an opportunity to do their jobs as elected officials by providing debate and discussion, and asking questions. That is what is being denied once again in this House.

On content, the budget does very little, if anything, to grow jobs for Canadians. It does even less to protect the jobs that exist for Canadians. It does very little to address the major challenges facing everyday Canadian families as they struggle to make ends meet.

The Conservatives are trying to say that they can just rush through the bill, maybe because they really believe there is not much in the bill and they have a lot to hide. Maybe they are too scared to have Canadians look at the bill and know that there are no job creation measures, that there is nothing to make life more affordable and nothing to strengthen the services families rely on. Once again, the government is trying to avoid public scrutiny of the measures it is trying to ram through this House at breakneck speed.

I also want to take the opportunity today to talk a little about an area that really impacts on immigration, citizenship and multiculturalism.

First, the bill continues a pattern with which the government has made us all too familiar. It just keeps concentrating more and more power in the hands of the ministers so they do not have to come back into this House in a parliamentary democracy to have what they are trying to do examined in any way.

The government has made a complete mess of the temporary foreign worker program. We have seen it over and over again in the media, whether it is HD Mining in B.C.; the backlog of the live-in caregiver program, which the minister himself addressed and is facing major problems and needs major overhaul; or the temporary foreign worker program that is currently under scrutiny because of the outsourcing of jobs at RBC. Despite all of that media attention on it, what actions has the government really taken?

Canadians were doing jobs that workers were brought in to do, but Canadians were then asked, “By the way, before you leave, can you train these new workers?” Once again, Canadians are being denied Canadian jobs.

Over the last two weeks, several individuals have contacted my office to tell the same story. They were brought to Canada as skilled workers, only to lose their jobs once they acquired permanent residency, or were let go just before they qualified to apply for permanent residency, and therefore a new batch of temporary foreign workers could be brought in.

Over the last number of weeks we have heard again and again about staggering abuses. The accelerated labour market opinions, only ever meant for highly skilled workers, were used and abused in a way that once again shocked Canadians from coast to coast to coast. Intra-company transfers were an abuse of the system in a massive way. Where are the investigations for all of these and where are the fixes?

The government, by the way, has had an opportunity—no, several opportunities over several years—to fix the temporary foreign worker program. There was, again, an opportunity with this bill, but rather than actually fixing a program that is wrought with flaws, a program that desperately needs an entire overhaul to function and be administered properly, the Conservatives slap band-aids on the holes, but only once they are exposed.

Faulty LMOs are being doled out. It is not a problem for the government. It simply gives the minister the power to suspend or revoke work permits that have already been handed out, but only if they are caught and there is public oversight. Once again, this is being done at the same time that the government is cutting funding to CIC and, therefore, limiting the kind of oversight that can be done over these files, over the granting of LMOs and the granting of the permits that go along with them.

Rather than addressing the full scope of the problems with this program, the Conservatives' band-aid in this case is another ministerial override when work permits and labour market opinions that have already been approved by them—and this is post-approval, by the way—become political hot potatoes. It is all political expediency and a public relations exercise. This bill's improvements would not get to the heart of the mismanagement of the temporary foreign worker program under the Conservative government.

Next, this bill introduces privilege fees to be set out in regulations for employers that apply for work permits. The minister has announced that this fee would be in addition to the new fees announced in budget 2013 for servicing TFW applications. The intention of the new fee, apparently, is to act as a disincentive for unnecessary use of the program. Of course, given the government's record to date, there is no assurance that these fees would not be passed on to the temporary foreign workers themselves and there is no measure anywhere cited to ensure that they would not be.

The government is now trying to fix problems it created. The last time it tried to fix problems, it allowed employers to pay up to 15% less and, guess what, there was a massive denial of that in the House. Then, outside at a press conference, the minister said that program was gone. The ALMO, which was hastily implemented and then not administered, with very little oversight and abuse, was allowed to happen and has been suspended temporarily—and I would say it was allowed to happen because the ALMOs that were granted went way beyond the parameters that were set out for this particular program.

Once again, I want to say that we in the NDP are not opposed to a temporary foreign worker program that addresses the legitimate needs of skills shortages and acute labour shortages where no Canadians are available to do the work. That is what we stand for and yet, instead of protecting Canadian jobs and addressing the abuses that are happening, the government is once again looking for band-aid solutions.

Forgive my skepticism, but we learned only yesterday that the Minister of Human Resources and Skills Development completely disregarded a briefing note that told her of almost 3,000 inappropriate uses of the TFW program almost a year ago. Yet a few weeks ago ministers and parliamentary secretaries all feigned surprise and said they moved quickly as soon as they found out there was a problem. In the world I live in, over a year or year and a half of waiting does not indicate that they took action quickly.

This bill would also deny due process to refugees, and I want to mention that. There are all kinds of fees that the minister would no longer have to come to the House to put into place. New Democrats have major concerns about the lack of transparency of the usage of those fees.

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May 7th, 2013 / 12:15 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, I listened with great interest to my hon. colleague, who knows this file on the temporary foreign workers so well.

We have this myth with the Conservatives about the market: we will just let the market decide; it is basic economics, the law of supply and demand. That is until it does not quite work for their friends in the big industry. For example, if there is a labour shortage, wages rise and there is competition.

However, what we have seen with the temporary foreign worker program is that the Conservatives have allowed 500,000 temporary foreign workers to be brought in to actually drive down wages and make it more difficult to have a competitive labour market.

It is clearly unfair to Canadians, but it is also clearly unfair to the people who are being brought over and treated as disposable labour. They come over here, they are supposed to do the work and then they are shipped back. Canada is left in a deficit position both in terms of local people who are not being employed and in terms of immigrant families who could actually become part of Canada and buy houses and participate; they are being left out.

I would like to ask my hon. colleague why she thinks it is that the government has allowed this program to actually undermine social development in our country.