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

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, one of the issues that Canadians from coast to coast to coast are very much concerned with is the issue of health care.

When we think of health care, we know it was Pierre Trudeau who actually brought in the health care act. It was Jean Chrétien who prevented the tax shift from taking over, in terms of the funding of health care. Then it was Paul Martin who established the health care accord that ultimately led to today when we are giving billions of dollars in health care transfer cash over to the provinces.

Now, that agreement is expiring in 2014.

What is the current government going to be known for, in terms of health care for Canadians, given that even the money that is going into health care today is not because of the current Conservative government? It is because of a health care accord that was reached with the Paul Martin government back in 2004.

That agreement expires in 2014.

Where in this budget or anywhere within the government is there a commitment to health care into the future?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, it is interesting. The member has a selective memory. He went on about all the things the Liberal government implemented However, what he forgot is a $25-billion cut to health care and education transfers during the time when our provinces and municipalities were hurting. They were forced to come up with those dollars or do without.

We have committed not to cut our transfers to the provinces. The health care funding this government has provided and the increases in transfers to the provinces have been unprecedented.

In addition, in this budget, there are some new initiatives that I would hope my colleague would support, such as funding for the pallium project, to give funding to palliative care groups that are trying to provide front-line training so we can do a better job of providing palliative care to those who need it.

There are all kinds of others, Mr. Speaker, but I see you are cutting me off. Thank you.

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, the member mentioned the palliative care. What he will not do, because I know he is a humble man, is take credit for a lot of the work he has done in respect of seeing investments like that in palliative care.

I want to commend my colleague for his discussion today on Bill C-60. Our government proposes to index the gas tax fund and that measure is included in Bill C-60. That measure is important for our communities and for our infrastructure.

Could the member comment on that? While I am at it, I am stunned to hear that the opposition will not support a measure like this for long-term predictable infrastructure funding for our communities, direct to them so they can do what they need to do.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, the gas tax funding is permanent and indexed. The Federation of Canadian Municipalities and municipalities have been asking for long-term predictable funding for years. This government doubled it, has now made it permanent and has also indexed it. The municipalities are thrilled with the kind of support they see going forward and the long-term predictability is the best part of it.

[José Nunez-Melo, NDP, Laval, QC]

Mr. Speaker, first, I must admit that when I was asked to prepare a speech on Bill C-60, I was quite interested because many of the proposed measures in the budget concern the municipality of Laval. Laval needs infrastructure and certain changes. I felt this was a good opportunity.

However, this morning, just before oral question period, the government once again cavalierly imposed time allocation on this bill. This reminded me of a session of the Standing Committee on Foreign Affairs and International Development that I attended. Some witnesses were clearly saying that the government was not on the right track when it came to its proposals for aid to developing countries, including wanting to merge Foreign Affairs and International Development with CIDA.

We have been opposed from the beginning to the Conservative caucus's recent way of doing things during debates and discussions. Even in committee, we can see this intransigent attitude, as the Conservatives reject outright every proposal and amendment put forward by the opposition or interested groups, such as witnesses. The door is not open. This government does not listen.

The Conservatives talk about the action plan all day long, as though it is the be-all and end-all when it comes to Canada's economic growth over the next few years. I want to point out that this action plan was designed a few years ago, when our economy was in a different situation. The timing is off with this adjustment.

The government is still using old studies and projections as the basis for omnibus bills like this one, which include all kinds of things. Five committees had to study this bill. I will list them all, since that is unbelievable. Perhaps members can tell me how these committees are connected. The only logical connection I see would be between the Standing Committee on Finance and the Standing Committee on Industry, Science and Technology.

The bill includes measures that affect the Standing Committee on Citizenship and Immigration; the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities; the Standing Committee on Veterans Affairs; and the Standing Committee on Foreign Affairs and International Development.

The NDP alone proposed 33 amendments. They were all rejected outright, with no explanation. The government claims to listen, but it does not. It already has a set plan for what will happen. As I already mentioned this morning, just before question period, the government moved a time allocation motion. I know that times are tough right now and that there are problems everywhere. When the action plan was designed two or three years ago, it was a good thing.

However, employers are using the temporary foreign worker program, although there is no job stability for Canadian families, who are deeply in debt. This is not about job creation, but job stability. People are losing their jobs.

The Conservatives say they have created thousands of jobs, but they can create only public service jobs. The private sector has created these jobs.

They really cannot reconcile two things: they say they want to eliminate the deficit, but they are taking the wrong approach. To them, the right approach is to reduce spending. They have hobbled plenty of organizations that should receive lasting support to maintain economic growth.

One thing that struck me is that this bill gives broad powers to the Treasury Board. After being elected in May 2011, I began to sit in June 2011, like most members. From the outset, I was really surprised to see that my new role as a member promised to be very tough indeed. There was a lot to learn. Indeed, what I was faced with right off the bat was blatant and shocking, because I had to sit until midnight when we held a filibuster during that period in June 2011.

It was about protecting the rights of workers to organize and negotiate a collective agreement with their employer without government intervention. This is dangerous. The Conservatives ignored these rights. They said that was what they wanted to do and they did it. They say that Canadians gave them a majority mandate after the 2011 election, but I think this mandate has been misinterpreted.

I am sure most Conservative members promised their constituents that they would duly represent them and defend their interests here in the House of Commons. However, what is happening instead is that in practice, policy and cabinet are governed by and firmly in line with the predetermined policies of the Conservative elite.

Bill C-60 sends the message that the Conservatives intend to keep Canadians in the dark and change a whole lot of bills without holding consultations. The consultations they do hold are pointless because they do not seem to listen to what people say. The people on the other side are not giving us logical answers. They latch onto an idea from the very beginning and will not let go.

We have reached an impasse, and they are running roughshod over democracy. Opposition members are all constantly seeking answers and solutions to problems that those in government more or less ignore. The only thing they care about is their ideology.

This is the result.

I am very disappointed, and I stand by our caucus's original position.

We will strongly oppose this bill because it makes no sense at all.

[Paul Calandra, Conservative, Parliamentary Secretary to the Minister of Canadian Heritage]

Mr. Speaker, earlier in the member's speech, he said that Canada's economic action plan was probably a good thing a couple of years ago. That is what he specifically said.

I recall that he went on to say later in his speech that opposition members filibustered the passage of the bill, which I could not quite understand, because on the one hand he said it was a good thing but then later in his speech mentioned how he and his party filibustered the bill to delay what he called a good thing.

He also then talked about balancing the budget without making cuts. I am wondering if the hon. member might help me understand the formula that he and the NDP intend to use with respect to balancing the budget without making cuts. Because New Democrats have apparently studied this a great deal, I wonder if he could present to us what specific areas they would change or address in the budget, such as where, if there are cuts, they would come from, what the corresponding savings would be, and where the increased expenditures would come from in the changes that he is proposing. He has not given details. I wonder if he could be a bit more specific.

[José Nunez-Melo, NDP, Laval, QC]

Mr. Speaker, I listened carefully to my honourable colleague's question.

I did say that the action plan was probably a good thing, but only insofar as it was a plan. The Conservative caucus's problem is that it has not proven that it has the management skills to implement the plan. The Conservatives are flying by the seat of their pants, and we can all see how that is working out.

As for balancing the budget, if our colleague knows what he is talking about, then he knows that a budget is a series of estimates. The end of the story cannot be determined in advance.

Balancing the budget is not a problem. It is all in the accounting, as they say.

There is, however, just one magic word: “management”. That is what the Conservatives are doing so poorly.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member made reference to balancing and management. I would like to point out that for Liberals, it is an issue of credibility.

We need to recognize that when the Conservatives became government, they had a multi-billion-dollar surplus. Their management ultimately led to a multi-billion-dollar deficit. That is a very important point.

The other thing that is important to note is that now the government says it is going to turn the deficit, which it created, into a balance surplus for the 2015-16 budget.

The question I have for the member is this: does he agree with me in being somewhat skeptical that the day by which the government is proclaiming it will have that surplus or that balanced budget is after the next federal election?

It seems to me that the Conservatives might be playing a bit of politics, knowing full well they have had an inability to achieve a balanced budget and now promising a balanced budget after the next federal election. Does he take issue with that?

[José Nunez-Melo, NDP, Laval, QC]

Mr. Speaker, I would like to thank my honourable colleague for the question. He really hit the nail on the head. I will explain the situation.

Management is certainly very interesting. If I am not mistaken, when the Conservatives came to power in 2006, there was a huge surplus, which they obliterated and turned into the deficit we have today. Now they are doing all kinds of acrobatics and chasing their own tails, like dogs sometimes do, as they try to fix the situation. They are also electioneering, of course.

Nevertheless, they will not succeed.

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, it is with great pleasure that I rise today to speak on our economy and our government's economic action plan 2013. The implementation of our new budget will have a positive impact on the lives of all Canadians.

Continuing to follow in the successful path blazed by economic action plan 2012, our government is squarely focused on what matters to Canadians: creating jobs and economic growth and securing Canada's long-term prosperity.

Our government continues to make common sense changes to the way government is run and the way taxpayers' money is spent. This plan will serve to create a more efficient government, one that would see Canada return to balanced budgets in 2015, while at the same time keeping federal taxes at their lowest level in 50 years.

Today we would like to highlight several aspects of how our government plans to achieve our goals of job creation, economic growth and long-term prosperity.

To succeed in the goals we have set out, we are focused on furthering our trade relationship with the United States as well as opening up new and emerging markets for Canadians, attracting new high-quality jobs at home by keeping corporate taxes low, reducing burdens to our businesses through the removal of red tape, fostering entrepreneurial talent and ideas with increased research and development funding and better aligning our immigration system with the needs of the Canadian economy.

Achieving these goals, along with our plan to return to balanced budgets in 2015, confirms our financial responsibility with taxpayers' dollars. An important way to provide better value for taxpayers' money while creating jobs and economic growth relies heavily on public-private partnerships, or P3s. Economic action plan 2013 proposes $1.25 billion over five years to renew the P3 Canada fund.

This renewal is part of a new building Canada plan that would see $53 billion in funding over 10 years. Under P3 arrangements, governments would continue to own infrastructure assets while the private sector would play a larger role in their design, construction, operation and maintenance. Canada is becoming a leader in P3s, and our government is committed to supporting the further development of the Canadian P3 market.

The new Windsor-Detroit international crossing is a project that exemplifies what our government aims for in P3 projects. The Windsor-Detroit trade corridor is the most important international land crossing in North America, handling almost 30% of Canada-U.S. surface trade, worth $120 billion per year. This new crossing would accelerate the movement of international trade, increase the competitiveness of the Canadian manufacturing sector and create thousands of new jobs.

The United States remains Canada's closest ally and biggest trading partner. Our two countries have a tremendous stake in each other's success. The Windsor-Detroit international crossing project will include a 6-lane bridge across the Detroit River, customs plazas on both sides of the border and a connection to Interstate 75 in Michigan.

As well, the construction of a parkway that will connect the new crossing to Highway 401 is already under way as a separate P3 project, supported by a federal contribution from the gateways and border crossings fund. Economic action plan 2013 proposes $25 million over three years to advance the Windsor-Detroit international crossing project into pre-procurement.

Getting people, goods and services across the Canada-U.S. border is critical to our country's prosperity, but we all have to be working very hard to expand trade with other countries. Trade is a vital part of Canada's economy. In fact, one in every five Canadian jobs is linked to exports, and trade accounts for more than 60% of Canada's GDP.

Current trade negotiations build on a record of new free trade agreements with nine countries in less than six years. Recently, our government has also committed to increasing trade with the Asia-Pacific region, the countries of the European Union, Brazil, China and India.

In addition to opening up new and emerging markets, we also must place heavy focus on attracting responsible foreign investment here in Canada. Our government's low-tax plan serves to encourage development in existing companies while establishing Canada as an investment destination for an increasing number of corporate taxpayers.

When our government first came into power in 2006, the corporate tax rate was 21%. This was reduced to 19% in 2009, 18% in 2010,16.5% in 2011 and currently sits at 15%. As result, we have seen the creation of nearly 1.5 million net new jobs since January 2006, the best record of job growth in the G7.

Aside from our low-tax plan, small and medium-sized businesses also require the right resources and incentives to advance new ideas, allowing them to become more competitive and create and sustain high-paying, value-added jobs.

Our government's economic action plan is committed to the success of Canadian entrepreneurs, innovators and world-class researchers. Since 2006, our government has provided more than $9 billion in new funds to support science, technology and the growth of innovative ideas. Economic action plan 2013 proposes to build on this strong foundation, helping to position Canada for sustainable long-term economic prosperity and a higher quality of life for Canadians.

Venture capital plays an important role in promoting a more innovative economy by providing the investment resources needed for high-potential small and medium-sized businesses to grow. Recognizing the importance of the venture capital industry to our future growth, economic action plan 2012 announced $400 million to help increase the private sector investments in early-stage risk capital and to support the creation of large-scale venture capital funds led by the private sector. The venture capital action plan, which was strategically deployed as $400 million in new capital for the next seven to 10 years, is expected to attract close to $1 billion in new private sector investments.

To ensure that Canada remains a global research and innovation leader, economic action plan 2013 plans to advance the venture capital action plan. We will provide $60 million over five years to help outstanding and high-potential incubator and accelerator organizations in Canada expand their services to entrepreneurs. Economic action plan 2013 would also make available $100 million through the Business Development Bank of Canada for strategic partnerships with business accelerators and co-investments in graduate firms.

Of course, in order for businesses to take full advantage of these programs and services, we must continue to reduce the amount of red tape restricting economic growth. Our government is already implementing a one-for-one rule requiring regulators to provide red tape relief for businesses equal to any new burden they introduce. As a result, nine regulations have been repealed under the one-for-one rule since April 2012, saving $3.3 million in the administrative burden on businesses.

As part of the red tape reduction efforts in economic action plan 2013, the Canada Revenue Agency has created a dedicated team responsible for coordinating and addressing small business issues. With this new team, the CRA would be better able to help small businesses avoid costly and time-consuming audits by raising awareness of their tax obligations in order to help them get it right from the start. In addition, effective April 2013 the CRA will ensure that the approval process for the authorization of a third party to conduct business tax matters on behalf of the business owners is more timely and responsive.

The CRA's efforts and sustained approach to reducing red tape were acknowledged in January, when the hon. Minister of National Revenue was awarded the Canadian Federation of Independent Business's golden scissors award. Our balanced approach to business regulation and ongoing effort to reduce red tape will serve to create a more predictable environment for businesses to thrive and prosper in the long term.

A strong, stable and prosperous Canadian economy does not rely upon business investments, trade agreements or a favourable tax atmosphere alone. Our government is striving to establish a more flexible immigration system that is streamlined, highly efficient and aimed at attracting talented newcomers with the skills and experience our economy needs. We have already made significant progress in implementing long-overdue reforms to the Canadian immigration system and will continue with these reforms to make the system faster, more flexible and more focused on Canadian labour market needs.

As part of economic action plan 2013, our government will reopen the federal skilled worker program with an updated points system that would give more weight to factors that are directly related to economic success. This policy aims to fill in gaps where there are recognized skills shortages. This is why economic action plan 2013 continues our commitment to improve foreign credential recognition for additional target occupations under the pan-Canadian framework for the assessment and recognition of foreign qualifications.

Through the implementation of previous budgets, Canada has experienced one of the best economic performances in the G7. We were able to accomplish this during the global recession and throughout the recovery. Canadians have put their trust in us, and we are committed to delivering on their expectations by focusing on job creation and economic growth while returning to balanced budgets.

I look forward to seeing the positive outcomes that the implementation of this new budget will bring as we continue to move toward a stronger and more prosperous Canada.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, I would like to begin by thanking my colleague across the aisle for his speech.

With regard to the budget, I took the time to broadly consult the people of my riding to find out what they thought of the Conservatives' budget and what their priorities are. I received hundreds of replies. The people of my riding are worried about a number of things, and I promised to defend their values and priorities by asking the Conservative government some questions.

The most important thing for the people of Alfred-Pellan is to get some answers regarding the elimination of the labour-sponsored funds tax credit. This tax credit is extremely important to Quebec. It supports employment and small business development in all regions of the province. It has a tremendous impact on our economy.

My colleague opposite talked about jobs and prosperity. I would like to hear what he thinks of the fact that, with this measure, the government is attacking Quebec's small businesses and our workers, who deserve so much more than that.

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, when we look at what we could do to create jobs, we constantly have invested in research and development. What we will not do is cut back on R and D but may we shift around what that looks like. We realize that as a country we spend a high proportionate amount of dollars on R and D spending.

In recent years the challenge has been that we have not seen the kind of value we need in terms of commercialization. We would certainly like to create more companies like RIM. That is important. We realize it has been very successful.

Therefore, as we look at how we can target our money for R and D, there will be some changes made over time, but our government's commitment is to still spend money in that field because we believe that is important for creating the jobs of the future.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, over the last four or five years, we have witnessed a Conservative government that has brought a net increase in taxes. It would have us believe that it has decreased taxes when the reality is the opposite. We see that in this budget, with the number of increases in different tariffs, even with tariffs where there are no companies manufacturing the same type of product.

The government is cashing in on literally millions of additional tax dollars through things like tariffs, in particular.

As there has been a net increase in overall taxes being paid by Canadians, why has the government seen fit to increase taxes?

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, our government has continually cut taxes. As a result, families now see a difference of almost over $3,000 in their income every year.

[David Sweet, Conservative, Ancaster—Dundas—Flamborough—Westdale, ON]

Mr. Speaker, one of the ways to elevate debate here is to ensure that any representation that is made is one that has some legitimacy.

A little while ago, the member for Winnipeg North posed a question regarding housing. The answer that came back was not one that was representative of what was in the budget. Therefore, I would like to ask my hon. colleague from Niagara West—Glanbrook about affordable housing and the landmark investments this government has made, which no other federal government made for almost the last three decades.