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

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Health]

Mr. Speaker, my colleague across the way from Guelph did mention manufacturing. I know my colleague has a strong manufacturing base in his community, and in this budget we have support for manufacturers. The shameful thing is that the Liberals and the New Democrats say they are going to be voting against this budget, which contains so many good things for manufacturers that are the engine of our economy in Ontario.

We have seen that the Liberal provincial government has put in all kinds of policies to drive manufacturers out of Ontario, including the insane energy program that it put in.

Why does my colleague think the New Democrats and the Liberals have turned their backs on manufacturing? Why does he think they can stand in the House and say they are supportive of all these great union jobs in manufacturing, yet they are going to stand up in this House and vote against all the support our government gave for manufacturers, not only in this budget but also in our previous budget?

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

Mr. Speaker, my colleague is absolutely correct. The manufacturing sector is still a very important part of our national economy. Even for a community like mine, Kitchener-Waterloo, which is so innovation-based, the manufacturing and advanced manufacturing sectors still represent almost 25% of our local economy. Economic action plan 2013 would deliver for our manufacturers in Kitchener-Waterloo and across Canada.

We would extend the capital cost allowance. The Canada job grant would assist manufacturers as well. With the renewal of FedDev Ontario, which is so important for southern Ontario and communities like Kitchener-Waterloo, we would see an advanced manufacturing fund. The initiatives we would take through budget 2013 would continue to support our important manufacturing sector in southwestern Ontario and across the country.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Mr. Speaker, I appreciate the opportunity to talk a little bit about what I think is a great budget, economic action plan 2013.

Clearly, we can see the difference between the political parties in this House. On this side of the House are the Conservatives, who stand up for the Canadian economy, which ultimately means more and better jobs for Canadians.

On the other side, they stand up for banks, Chinese manufacturers of bikes and other manufacturers from other countries. Instead of supporting local manufacturing, they stand up to support Chinese manufacturers. It seems absolutely absurd, and frankly, Canadians will punish them at the next opportunity they have.

Let us talk about the positive things in the budget that we are bringing in to promote a stronger economy and to make sure that Canadians have a far stronger and better quality of life.

First, in my part of the country, Fort McMurray—Athabasca, we have problems filling jobs. We cannot find enough people to do the jobs we have. It does not matter whether it is in a car wash sector, a Tim Hortons or even lawyers or doctors; we cannot find enough people to fill the jobs, and we have the highest household income in the country. That is right: $185,000 is the average household income in my city of Fort McMurray.

One of the things I really like is the Canada job grant. This is to help align individual skills with high-demand jobs. It is a $15,000 amount in a tripartite fashion, with the provinces, the federal government and employers working together to find people to fill the jobs. What could be more important than that? This is a very positive initiative. It makes sure we do not just give a handout but a hand up, and we do so in a way whereby every level of government is working together with employers to do exactly that.

Another thing I really like is directing the gas tax fund payments to build a job-creating infrastructure throughout Canada. This is very important. When we came to office, as I am sure we heard from many people and as we have seen in the streets of our country, we had a $123 billion deficit in infrastructure. It takes time to catch up, so in our budget we brought in one of the largest infrastructure investments in Canada's history, $33 billion.

We heard clearly from the Federation of Canadian Municipalities and right across the country that these were great initiatives for ensuring that Canada's quality of life continued to be the greatest in the world by ensuring that potholes were filled, by ensuring we had new roads and less congestion on our roadways, by ensuring we had water and waste water infrastructure. We are doing exactly that in this budget. We are doing so in collaboration with other parties: with the provinces, with the territories, with municipalities and now with employers.

We are also amending the temporary foreign workers program. On one side we cannot get enough employees in Fort McMurray for many of the jobs there, especially in the service sector. Those people in the service sector make a better quality of life for the people in the higher-paying jobs with that $185,000 average household income. However, clearly everybody in the House would agree that there has been some form of misuse of the program. That cannot be put up with. Clearly, our Prime Minister has laid out a plan, a strategy, to ensure that employers cannot do that any more.

There is always a need for tweaks. There is always a need for some changes in legislation to make sure that it would be unacceptable for people, companies or employers to take advantage of the system to the detriment of the Canadian economy and Canadians as a whole.

In this particular case, I have heard from union and non-union members throughout my constituency that they clearly want some changes to the temporary foreign worker program. We are here for Canadians, and Canadians should have first crack at any job they want, no matter what part of the country they are from.

We have also extended the accelerated capital cost allowance for two years to create new investments for Canadian manufacturers. This means that companies will buy equipment, and we hope it will be Canadian equipment. Somebody will then need to make sure the equipment works, so we will have to train people. Those will be Canadian jobs. Then employers will have to make sure they have people to operate the machinery.

This is a kick-start to employers to encourage them to go out and buy new machinery. It is a tax advantage for them, in that it defers tax a bit, and it is clearly a financial advantage for them to do so.

All the way down the assembly line of that manufacturing company will be Canadians working for Canadian output. That is an advantage for all Canadian manufacturers. It is an advantage for southwestern Ontario, for Quebec and for other places where the manufacturing sector has been hit. This Conservative government stands up for, and will continue to stand up for, the manufacturing sector in this country.

We are also doing some other interesting things. We are providing $165 million in support for Genome Canada. I know this is a very popular thing in some parts of the country and not so popular in others, because those areas do not know what the company does. This company makes sure that Canadians are on the forefront of research and development. In whatever field, Genome Canada is going to be the first in the world. We heard clearly in the finance committee that Genome Canada is at the forefront of the field, and this government will continue to support that to ensure Canadians have the best jobs through research and development.

We are also worried about youth. Although we have a low unemployment rate, we have a high youth unemployment rate. Compared to the rest of the world, though, it is very low, and we are going to work on youth because we need to fill those jobs. We are going to invest $8 million in the Canadian Youth Business Foundation to provide advice for young entrepreneurs.

As the father of three children in their twenties, I know it is difficult for them to find jobs in some areas, especially in the lower service sector. This will provide advice for people who want to start up new businesses, for people who want to start on an opportunity that they would not have otherwise or would not know how to fulfill. This government sees today's youth as tomorrow's future. We are going to concentrate on the future of Canada through youth, through quality of life and through a strong economy.

We are also providing $5 million in 2013-14 to Indspire, which supports scholarships and bursaries for first nation and Inuit post-secondary education. This program is important in all parts of Canada, but it is especially important for our economy. That is because we have heard in the finance committee that there is a clear correlation between success in aboriginal communities and the resource sector.

That is right. The resource sector is usually found in remote places in northern Canada. Aboriginal communities are usually in the same places. Here is an opportunity to make sure that those people who are the captains of industry are people from those communities, and they should be. Not only should they have first crack at a job, but they should be the people leading this country in that particular area of development.

In the oil sands in Fort McMurray, aboriginal communities are, for the most part, highly successful. They have integrated very well with the industry to create successful aboriginal stories and successful community stories. Fort McKay would be a perfect example. I would suggest it is one of the best success stories in the country as far as aboriginal communities are concerned.

We are also renovating the Investment Canada Act to further clarify foreign state investments in Canada and national security reviews. I have heard that clearly from constituents too. They are concerned about foreign investment. They are concerned about Chinese investment and other countries investing in the oil sands, for instance, or in key industries such as uranium or potash. Canadians want those industries to be owned by Canadians, to be run by Canadians and to have Canadian employees. Canadians are worried about that. They trust us to make sure we do what is best for them.

I do not have a lot of time left, but I want to talk briefly about something that is near and dear to me.

Our government has set record levels on infrastructure investment in this country. I mentioned $33 billion, but that amount is actually $45 billion over that period of time. That is the highest investment by any Canadian government in our history.

People might ask what this does for them. The answer is that it employs them. As well, it makes sure that they have more and better highways and better bridges, and other infrastructure such as social infrastructure. It gives them a better quality of life.

Some of those things include $32.2 billion in the community improvement fund, which will provide stable funding for community infrastructure projects. We have heard from the Federation of Canadian Municipalities and from mayors and provinces right across the country that they need to have stable, predictable, long-term funding so they know where they are going to spend money in the future. They need to know when they are going to get it, just as any business does. If we just tell them that every year they are going to get a certain amount and it is a surprise to them, how can they do any long-term planning? It is impossible.

This government is going to make a variety of other infrastructure investments to build on our economic action plan. We are going to make sure we place Canadians first, for Canadians, for the Canadian economy and for the future of Canada.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my hon. colleague from Fort McMurray—Athabasca for his speech.

Yesterday, at the Standing Committee on Finance, my colleague was forced to acknowledge before experts from the parliamentary budget office that the 900,000 jobs that were supposedly created by this government—at least, that is what it claims—were created naturally and had absolutely nothing to with his government's measures.

However, I would like to bring the discussion around to another subject—namely, the $600 billion accumulated by and tied up in Canadian businesses. That works out to $25,000 per Canadian family, money that is not creating jobs or increasing the competitiveness of businesses.

Why is there not a single measure in BIll C-60 to encourage, if not force businesses to invest some of their cash assets?

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Mr. Speaker, I find that troubling. The PBO did correct that particular statement that the individual brought forward, and indicated clearly that those jobs would not have naturally occurred without the government investing in Canada. It just simply makes sense.

I would like to talk about a few other things that have happened that I am very proud of as well. They include an investment of $1.25 billion for affordable housing that we are bringing forward in this budget. In fact, in the homeless partnership strategy of $600 million, the investment there is to help people move from the streets to shelters, with jobs or with mental health treatment.

Those are things the government is doing. We are making sure that Canadians are going to do better, no matter whether they are on the streets and have health or mental issues that we need to resolve, or whether they need jobs somewhere else in the country. We are going to make sure, no matter where they are from, they are treated fairly and equally. Canadians are the number one priority of government.

[The Acting Speaker, Conservative, Bruce Stanton]

Should he wish it, the hon. member for Fort McMurray—Athabasca will have three minutes remaining for questions and comments when the House next returns to debate on the question.

Notice of Time Allocation Motion

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I would like to advise that an agreement could not been reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the second reading stage of Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of the proceedings at the said stage.

I would like to give the House the courtesy of knowing that I intend to propose that four further days of debate be allotted, which would mean a total of five days of debate for second reading of this very important bill to create jobs and economic growth.

[The Acting Speaker, Conservative, Bruce Stanton]

I am sure the House appreciates the notice by the hon. government House leader.

Bill C-60—Time Allocation Motion

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

moved:

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.

[The Speaker, Conservative, Andrew Scheer]

We will now have a 30-minute question and comment period.

The hon. member for Skeena—Bulkley Valley.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I am not too happy to be here yet again. This government has no respect for Parliament or the process, especially when we have before us a huge bill like this, which will amend almost 60 acts.

It is incredible that with its majority, the government feels some need to constantly inflict time allocation upon Canada's Parliament, and this further breaks the record. The Conservatives seem to have no shame whatsoever that they will be known forevermore as the government that shut down debate more often in Parliament than all other governments in Canadian history, governments that I am sure the Conservatives used to loathe.

I can remember that when the Liberals were in power and used the same measure to shut things down just as debate was getting started, the Conservative members who are now the Prime Minister and the Minister of Foreign Affairs got up in this place from the very seats where I am standing and said it was wrong and inappropriate for the government to use the tactic time and time again. Now with these omnibus bills we see the Conservative government further abusing the systems we have in place to hold the government to account, as all members of Parliament are meant to do.

The Conservatives feel absolutely no shame. If they showed a little shame, it would give some hope. If they stood in their places today to say that they were sorry and that it was unfortunate that they have to keep using these bullying tactics in Parliament, but it is what they have to do because of such and such a situation, it would give some hope. However, that is not the case here.

The Conservatives have grown addicted to this particular tactic, apparently thinking that holding government to account no longer is important, yet we have seen the same government lose $3 billion meant for national security. The Conservatives shrug and say, “Big deal”. Well, it is a big deal to Canadians.

Why can the Conservative government not simply allow Parliament to do its job and allow members of Parliament to do their jobs on behalf of their constituents, instead of using these heavy-handed bullying tactics time and time again?

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

Mr. Speaker, I appreciate the comments from my hon. colleague across the way, but there are a lot of inaccuracies in some of the comments that he made.

This is a very important piece of legislation. This is the blueprint of our government's mandate moving forward, our plan to continue to create jobs, help businesses continue to create jobs, help grow the economy and help the long-term prosperity of this country. We think it is very important that we move this along.

However, the most important factual error that I need to point out is that we are providing five full days of debate before the bill ever goes to committee. As we all know, this is the primary phase, wherein the bill is discussed in the House of Commons and then moves to committee.

We felt that five days was more than adequate. We will then move the bill to committee and, once again, to make sure that we have more than adequate time to debate all of the clauses, the bill will go to more than just the finance committee this year.

[The Deputy Speaker, NDP, Joe Comartin]

I will ask all members henceforth to limit their questions and comments to approximately one minute.

The hon. member for Wascana.

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Speaker, with respect to the timing issue here, obviously it is unfortunate when debate in the House is curtailed by the use of time allocation or closure. That impinges upon the democratic right of members of Parliament to adequately consider matters that are before the House.

I look at the calendar on the table before you, Mr. Speaker, and it properly identifies today as May 2. The budget was presented on March 21. It has been well over a month since the budget was presented and yet the legislation to implement a portion of it has only been put before the House in the last couple of days. It seems a bit unusual for the government to move so expeditiously to bring time allocation to the discussion of the budget when it has had well over a month to put the legislation before the House.

I would like to ask the minister a very specific question. He has said the subject matter will go to a variety of committees; that may be useful. Would he go the further step and make sure that the House has the opportunity to vote on each one of the subject heads separately so that we are not confronted with one omnibus vote at the end of it all where we have to vote on soup to nuts all together at once, thus defeating the principle of proper democratic--

[The Deputy Speaker, NDP, Joe Comartin]

The hon. Minister of State for Finance.