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

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

Mr. Speaker, that is one of the things this government has been very stringent on in terms of being responsible and looking out for those who are less fortunate. If we look at the commitments we have made in this budget, there are $119 million a year over five years for the homelessness partnering strategy, which continues to move forward. That is almost $600 million over the next five years just for that program alone. In terms of the affordable housing strategy, we have also committed $253 million per year over the next five years for that.

If we total up the amount of money that we have committed toward the homelessness partnering and affordable housing strategies, that money is in excess of $1.7 billion over the next five years. That quite clearly demonstrates our commitment to those who are less fortunate.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, it is a pleasure to speak to Bill C-60. I know you have been in the House a number of times when I had a chance to talk about the border and you will hear more about that. The previous member did mention what was taking place with the Windsor-Detroit corridor, with a new public border crossing being created.

There have been some positive steps that have taken place, which have been supported by all parties in the House for the most part. However, some decisions need to be made for the future. Unfortunately, the Conservative government is exposing the new border crossing to some potential issues.

We all know that there has been a challenge with Matty Moroun, who is the owner of the Ambassador Bridge. He has private American ownership. Basically, there are around 25 international bridges and tunnels between Canada and the United States and only two are held in the private sector, the Ambassador Bridge and the AbitibiBowater Bridge in Fort Francis and International Falls.

Why is this important for the Windsor-Detroit corridor?

For those who do not know, in the riding that I represent there are four crossings that span around two miles which represent approximately 40% of the daily trade to the Untied States. However, with 34 states having Canada as their number one trading partner, this key system of infrastructure has yet to be addressed with the border authority. A border authority would help with the efficiency of our trade. It would allow goods and services to travel more freely and in a better organized fashion.

From the far west, we have the Hazmat Truck Ferry. There is the Ambassador bridge, which takes just over 30% of the daily trade. There is the Detroit-Windsor rail tunnel, which is an aging piece of infrastructure, but hopefully a new one will be coming. However, I am not sure we will have support for that right now from the government. We are waiting to see the decision on that and if the application process will still go forward. Last, we have the Windsor-Detroit tunnel which has mostly vehicles that go through it and some trucks make use of it as well.

The reason I mention this is because the Conservative government is embarking on a public-private partnership for the border. However, the government is not going with the agreement that is normally uses for infrastructure improvements on other bridges and crossings, which is needed to exercise leveraged borrowing through public bonds, such as they do in the U.S. This is one of the ways in which the Americans have gone about their process for twinning infrastructure pieces in the past and look to that for future developments. The Peace Bridge and the Blue Water Bridge are two examples of that. Those areas also have a border authority.

However, we have yet to see the details of the management of our new border crossing, but the public-private partnership the Conservatives are proposing could be fraught with issues, which I have raised. We will have to use a carrot-stick approach and see whether someone from the private sector will bid on it.

It will be a very ambitious project because the bridge will have to span across the Detroit River, yet it has to have enough carriage space underneath to allow transport freighters go through. This is one of the busiest waterways in the world for freighters and private boats. It is very important that the proposal does not touch the Detroit water, that it is a different type of bridge from one that has footings in the water, otherwise the IJC is triggered and it will take much longer.

The reason I bring all that up is, again, the public-private partnership, which is a challenge with regard to our process because it is not vetted. We have gone through this before for our border crossing and I am really concerned that we will need major incentives which would raise the tolls, and the tolls are an additional tax on citizens. There is no doubt about that.

There is a difference between a public and private partnership. Recently, the city of Windsor successfully sued for its portion of the tunnel. We were in a relationship there, but the operator and owner of the tunnel kept it past the 50-year date line that they were supposed to and kept the proceeds as well. When I was on city council, the mayor, Mike Hurst, successfully sued. We found a document showing that the owner had to return the tunnel to the public. However, we found the state of the tunnel in such disrepair that we had to put millions of dollars into it right away just for it to be safe. The private sector had a different model, which was basically to sponge every nickel out of the thing. The result was it did not put the maintenance money into it.

Now successfully operating under the city of Windsor, it provides a revenue stream to the city for infrastructure and other projects and it has been fixed up and repaired.

Interestingly, the private sector on the other side of the border, which owns the lease agreements from the city of Detroit, actually charges more money for crossing than what we charge on the Canadian side. Again, it is going to squeeze everything it can. In fact, it does not even have parity in terms of money, despite the dollar being close to parity with the United States over a number of years. That is one of the issues I want to touch on a bit later.

I will leave it at that for the border, but we are a far way from being done and the public–private partnership that we have is a big exposure because the finances are not allocated right at this time.

As New Democrats, we have been raising questions about the process that has taken place for this budget bill and what has happened. It is important that I lay out a bit about why we believe the process is so broken and it is one of the reasons the Conservatives are going back to fix things that they tried to fix in the last budget bills.

A number of years ago, it was the Paul Martin administration under the Liberals that started to add components of legislation in the budget bill. “Omnibus bills” is what they are specifically known as and they have a number of different things that are travelling with the bill that would normally have an independent process. That is important because this is similar to what the Americans call “riders”, where they attach all kinds of unusual things as they cut deals to try to get the budget passed, so all kinds of pet projects and things will go through.

The issues we are dealing with in this budget bill are very serious. We have the Immigration Act, the Department of Foreign Affairs and International Trade Act, the Investment Canada Act, to say a few, that in the budget bill as opposed to having a full vetting at committees.

The committee systems are important. At a committee we have a number of different individuals who will be invited to come forward, provide their testimony and then from there we get experts and we really hash it out. Sometimes there is actually support for legislation and for changes or we find mistakes in bills that were put forth accidentally. Not all legislation is drafted in a pristine manner and will pass the test of metal, so it requires amendments. Amendments will be made, voted on and then returned here to this chamber. That is the normal process and usually it takes a bit longer, but at the same time it makes for better legislation. Unfortunately, all these different things have been put in front of us.

The committees that the budget bill has gone to have been the finance committee, the industry committee, the citizenship and immigration committee, the human resources and skills development committee, the veterans affairs committee and the foreign affairs and international development committee. Through that process, despite looking at spending billions of dollars, there were 33 amendments by the New Democrats, 8 by the Liberals and zero from the Conservatives. Therefore, what we see is a budget bill that will go through with very little debate and expert review.

I would just make one other point with regard to the finances in the budget. The budget continues on a reckless path of cutting revenues without increasing the access to supports that we need to pay for some of them. This is what I am referring to with regard to corporate tax cuts that continue. We are borrowing money and we will be paying interest on those corporate tax cuts because we do not have a surplus right now. Therefore, we are taking resources out of our system and paying a premium for them at a time when we should not be doing that.

That is how the HST was brought in. I commissioned an independent paper that looked at the HST when we had to borrow $6 billion to do so and if we got back to a surplus and paid it off in 10 years, as an independent paper estimated, we would spend around $8 billion to bring it in. Therefore, when we are going to pay a premium for something, we had better get something of value out of it and I do not think we are.

This budget continues subsidies for the oil and gas industry. It supports tax reductions for banks, insurance companies and others that certainly are making a profit right now.

We need to make better decisions.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to pick up on the point the member made in reference to the process in committees.

In bringing in time allocation, the government likes to say that it has allocated the bill out to six committees to have thorough debate and discussion. I sit on the citizenship and immigration committee. When the bill came before our committee, the Liberal Party was given a full 10 minutes to deal with the changes that were being implemented in this budget. A full 10 minutes, which means 5 minutes of questioning with 5 minutes of answers. It did not quite work out to 5 and 5, but the point is it is only 10 minutes.

The question I have for the member is in regard to the manner in which the government is pushing through Bill C-60. It is very anti-democratic, as it continues to rely on time allocation and prevents individuals from being able to speak out and giving their concerns and ideas. The member made reference to amendments, which the government does not respond to, whether by allowing for proper time or considering positive changes that are being suggested.

Does the member want to provide comment on that?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, I understand the immigration committee only heard from the department and not from any witnesses.

This budget bill has a number of serious tax increases and fees on immigration, as well temporary foreign worker issues. This affects our overall economy. Immigration is very important in this country. I come from an area of the country that is the fourth most diverse in terms of population. We have a city of only 200,000 people. We are not the size of Montreal, Toronto or Vancouver, but we still are the fourth most diverse.

It is important that we actually have those witnesses come forward so that we can see the consequences. If we do not do that, we are not going to have good legislation.

[Jean Rousseau, NDP, Compton—Stanstead, QC]

Mr. Speaker, I congratulate my hon. colleague from Windsor West on his excellent speech.

Tax cuts for multinationals, in other words, big corporate cuts, have had a measurable impact on workforce succession.

No investments have been made in workforce succession. We have an aging population and an aging workforce in many economic sectors, including the automotive sector. The government has not looked at how important succession planning is. The next generation will make up the workforce for the next 15, 20 and 25 years.

Tax cuts are all well and good. Since 2006, the Conservatives have cut the corporate tax rate from 21% to 15%. Where has that money gone? Into the pockets of CEOs. Some 20 of the richest CEOs in Canada earn nearly $5 million or more a year. That is how large corporations work. Thus, there is no incentive for workforce succession planning.

Since his riding is very industrial and relies on manufacturing, good succession planning is crucial.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the auto sector requires a much more robust developed strategy. We do not have that, not in this budget bill and not as policy. A classic example is other industries affecting manufacturing and the auto industry, and in preparing for the transition of the workplace, where we spend those resources is important.

Let us look at some of these issues, like the oil and gas industry, in terms of its subsidization, and continued subsidization. Not only does it get a tax cut but it has other things, like a flow-through shares subsidy, a Canadian exploration expense that it can claim, a Canadian development expense it can claim, and a Canadian oil and gas property expense it can claim. With the subsidies from the government and its programs for taxes, it actually had a $28.7-billion holiday in 2008 alone.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I am grateful for the opportunity to speak about the important measures our government has taken in introducing budget 2013 and the budget implementation act. It comes as no surprise that we are continuing to focus on the economy. Getting our economy to fire on all cylinders remains our top priority as without continued growth, we cannot get Canadians into the job market and pay for services we expect from government.

I am also pleased to report that our plan is working. Last week, Statistics Canada announced the economy grew by 2.5% in the first quarter of 2013. This represents the strongest quarterly growth in nearly two years. Additionally, Statistics Canada positively revised our economic growth in the fourth quarter of 2012, up from 0.6% to 0.9%. The solid economic growth in the first quarter of 2013 is the seventh straight quarter of positive growth, and is another sign that Canada's economy remains on the right side.

The over 900,000 net new jobs created in Canada since the depth of the global recession, with over 90% full time and nearly 75% private sector, represents the best job growth record in the entire G7.

Saying that, we know there is more work to be done, and there is no greater priority for me right now than helping to position Canada's economy for success over the long term.

Many of the businesses in my neck of the woods in Edmonton have trouble finding skilled workers to fill vacant positions. Every time a job remains unfilled, it means that the businesses are not growing as fast as they could. It is frustrating to know that there are countless vacant positions across the country, and especially in Alberta. They are not being filled, while we have many Canadians looking for jobs.

In fact, CIBC World Markets stated in a report in December 2012 that 30% of businesses are facing a skilled labour shortage. The Construction Sector Council has declared that between 2012 and 2020, the construction sector will need 319,000 new workers. Engineers Canada projects that 95,000 professional engineers will retire by 2020 and the Environmental Careers Organization of Canada says that with 100,000 employees reaching retirement in the next decade, numerous opportunities will open up for students and new graduates in that sector.

In addition to those labour market challenges, our demographics are changing. Our population is aging rapidly and becoming increasingly diverse. There are too many groups and important segments of our populations that are under-represented in the labour force.

In light of this news I was thrilled to hear the Minister of Finance announce the creation of a Canada jobs grant. I truly believe that this would transform the way Canadians seeking to upgrade their education and skills will enter the job market. It is important that we seize upon this opportunity and meet the challenge head on.

Many of us in this House understand the details of the jobs grant, but I think it is worth outlining in some detail what it means for people out there who are looking for work. In the near future, our government would begin negotiations with the provinces and territories to transform labour market agreements to include this very important measure. We would also reach out to employers and other interested stakeholders to ensure the program is designed with the full intent of getting people the qualifications they need to get jobs in high demand fields.

The Canada jobs grant is innovative, as it purposely includes employers to invest in training employees. The jobs grant would require employers to contribute up to $5,000 per person, which would be matched by both the federal and provincial governments. This means the grants could provide up to $15,000 per person. This is an important building block in getting our economy up to full speed.

Having the private sector form partnerships with different levels of government would ensure that we are getting the highest return on investment. It is the employers who will be using these people, so it is only logical that they be involved in the process of training. This process would almost guarantee that people coming out with their new skills will be going into a job.

To sum this up, it means that the job grant would successfully match people with the right skill set to the right jobs. Upon full implementation, it is expected that nearly 130,000 Canadians every year would benefit from the jobs grants. This would have an immediate effect on the economy. I believe that many more people from all walks of life would be able to find meaningful employment in their field.

Another important measure that budget 2013 announced was the funding to reduce barriers to accreditation of apprentices. Particularly in today's day and age, people are mobile and follow jobs across the country.

Just in my own constituency of Edmonton Centre, there are people from every province and territory who have moved there to find that all-important job. Given these factors, we must make it easier for apprentices to work across the country.

I was pleased to see our government take action and to start the important process of working with the provinces and territories to harmonize requirements for apprenticeships, as well as examine the use of practical tests as a method of assessment in targeting skilled trades.

On top of the measures I have already mentioned, budget 2013 announced initiatives to help young people and Canadians with disabilities get into the job market. We would be supporting more internships for recent post-secondary graduates. We would also be investing new money and training for on-reserve income recipients and would be introducing a first nations education act. Collectively, all of these measures would transform the economy while making it easier for Canadians to get a job and for businesses to grow.

The other area I want to talk on is the important tax relief measures our government has introduced since 2006 and continues to implement through the budget implementation act. As I go door-knocking throughout my constituency, hold town halls and engage in regular correspondence, my constituents continue to tell me how our tax relief measures are leaving more money in their pockets. They appreciate how they now have more means to pay for things that matter to them.

Since forming government in 2006, we have provided tax relief to Canadians in over 150 different ways. The average family of four now receives $3,200 in extra tax savings as a result of our initiatives, and that is money in their pockets. I want to highlight some of the more significant tax relief measures that Canadians benefit from.

In 2006, I was pleased to run on a platform that reduced the GST to 5% and exempted the first $10,000 of student scholarship or bursary income from taxation, and introduced a tax credit for up to $500 a year for textbooks. Those are commitments we made and quickly delivered on. We have increased the amount of money people can earn without paying income tax. We introduced the tax-free savings account that has allowed Canadians to earn tax-free investment income, with more than 8.2 million Canadians signing on.

Our government introduced the child tax credit, the children's fitness credit and the children's arts tax credit, which now makes it more affordable for families to keep their children active. We introduced the registered disability savings plan, which helps families save for the long-term financial security of those with a severe disability. We introduced the new family caregiver tax credit and removed the $10,000 limit on eligible expenses that caregivers can claim under the medical expense tax credit.

The list goes on and on.

I cannot stress enough how these measures have helped increase Canadians' quality of life. Even though every Canadian is benefiting from these measures, low-income and middle-income Canadians are receiving the greatest relief. In total, our government has provided almost $160 billion in tax relief over a six-year period.

We have taken more than one million low-income Canadians off the tax rolls, and now the federal tax burden is the lowest it has been in 50 years.

There is more work to do.

That is why in this budget implementation act, we would be providing tax relief for Canadian Armed Forces members and police officers deployed on international missions. To better meet the health care needs of Canadians, we would be expanding the GST exemption for publicly funded homemaker services to include personal care services. We would be introducing a new temporary first-time donor's super credit to encourage young Canadians to donate to charity. We would be enhancing the adoption expense tax credit to better recognize costs unique to adoption.

These are just a few of the measures found in the budget implementation act that would assist Canadians and continue to lower their tax burden. As I continue to meet with constituents and businesses over the summer, I am looking forward to hearing their thoughts on how to further provide tax relief and better grow our economy and their prosperity. As members of Parliament, we must continue to work together to pass important legislation such as the budget implementation act that will build a stronger economy as we continue to face a challenging economic environment.

Canadians sent us here to get things done. I strongly believe that measures such as the new Canada job grant, our initiatives to get more people into the workforce, and the plethora of tax relief benefits will help our economy grow and greatly assist the people we serve.

I encourage all members of the House to vote for this legislation and to work together for the benefit of all Canadians.

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

Mr. Speaker, I would like to thank the member opposite for his speech.

At the end of his speech, he said that he was looking forward to speaking with his constituents this summer. We are all looking forward to getting back to our ridings to see what our constituents think of the work we are doing in the House.

I was able to do some of that this spring when the budget was introduced. I showed it to my constituents to see what they thought about it. We received a lot of feedback from people in the riding of Alfred-Pellan, people from Duvernay, Saint-François, Auteuil, Vimont and other communities. Residents of Laval decided to get involved and tell us what they like and do not like about this budget.

A number of points were raised about this budget. For one, there is the fact that the President of the Treasury Board will have more authority to interfere in collective agreements.

I am wondering what my colleague opposite thinks about the fact that the government is directly attacking workers by, among other things, eliminating the labour-sponsored funds tax credit and giving the President of the Treasury Board more powers?

What does he think?

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, in response to her supposed issue about the President of the Treasury Board, the simple fact is that we have a lot of crown corporations in this country—VIA Rail, CBC, Canada Post, and the list goes on—that are independent and at arm's length, but they operate with taxpayer dollars. We are responsible for ensuring that those taxpayer dollars are spent properly. There is a requirement for us to have some oversight and some insight into what is going on with those agreements so that one does not get totally out of whack with the other.

It is simply being responsible. It is simply ensuring that the taxpayer dollars that go to all those crown corporations are expended properly.

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

Mr. Speaker, earlier in debate, the member for Laval mentioned the NDP approach to balancing the budget, which did not include tax cuts. I can only assume that it is code for increasing taxes to do that.

The hon. member talked a lot about how important cutting taxes for Canadian families and businesses was, and has been, to the economic growth we have seen in this country. I wonder if he might expand a bit on his thoughts with respect to dramatic increases in taxes on Canadians, how that might impact our job growth going forward and how that would impact Canadian families.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, we have made a habit, a good habit, of reducing taxes for Canadians individually, reducing corporate taxes, and reducing taxes on small businesses, and that has done nothing but create jobs and put money in people's pockets.

I do not want to ascribe motives, but when the NDP members talk about the dangers of reducing taxes, I would say, frankly, that it is exactly the opposite. I would not want to be around if they ever got the chance, and God forbid if they do, to reverse a lot of the tax measures we have brought in that have benefited Canadian families and have benefited Canadian businesses to the point that those businesses can hire more Canadians so that we can put more money back into the pockets of Canadian families.

[José Nunez-Melo, NDP, Laval, QC]

Mr. Speaker, I would like to thank the member for his speech, precisely because of what just happened. Another hon. member said that I spoke about cutting taxes. However, what I said—and this is my question for the hon. member—is that when the government makes a plan, it should also plan its implementation. That requires management skills, and those need to be proven. So far, the Conservatives have not done their homework. They have totally missed the mark, and that is why they have a deficit.

How can the Conservatives fix the situation now?

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I would point out to my colleague that Canada is 2.5% of the world economy. When the rest of the world is sinking, we are going to be down with it.

The simple fact is that in relative terms, we are much better off than just about all the rest of the world. It is because of the economic policies this government has followed. It is because of the strong banking system. It is because of a combination of things.

The proof in the pudding is, again, seven quarters in a row of economic growth. It was 2.5% in the last quarter, which is the strongest quarterly growth in the last two years. Economic growth in the last quarter is up from .6% to .9%. I think we are exactly on the right track.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I am pleased to rise in the House to debate Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

Once again, the Conservatives did not allow a single amendment to their bill in committee. Now we are at report stage in the House, and the bill is deeply flawed. Nevertheless, it will be passed as is if the Liberal Party's amendments at report stage are rejected. Even though the Conservatives are not listening, I would like to use my time to explain how this bill will affect Quebec's economy.

All Quebeckers—except for the Conservative MPs, who are loath to lift a finger for Quebec—are scandalized by the elimination of the tax credit for labour-sponsored funds. Driven by their ideology, the Conservatives have decided to gradually eliminate the tax credit for contributions to labour-sponsored funds because they want to hurt unions. The credit will drop from 15% to 10% on March 1, 2015, then from 10% to 5% on March 1, 2016, and it will be eliminated altogether on March 1, 2017.

The Conservatives used a June 2012 study by the OECD to justify this attack on unions. The study recommended eliminating the tax credit for labour-sponsored funds because they offered lower returns than private funds. The study, however, was based on analyses from the early 2000s, and it is a poor reflection of Quebec's reality, which is much different from the rest of Canada's.

Quebeckers are dismayed at this change. The Conservatives might be surprised to hear that it is not the unions crying foul at the government's decision; it is chambers of commerce across the province. They are all united in sounding the alarm. A brief look at the statistics shows why.

This tax credit affects Quebec directly because take-up in our province is 85%. These very popular funds are a huge help to small and medium-sized businesses. They are a staple of Quebec's economy and retirement savings. According to the Board of Trade of Metropolitan Montreal, labour-sponsored funds have helped create or maintain over 35,000 jobs.

Venture capital is plentiful in Quebec. According to the Board of Trade of Metropolitan Montreal, if we look at the province's venture capital-to-GDP ratio, Quebec ranks third among OECD member countries and is well above the Canadian average. Having access to venture capital is vital to the start-up of many companies. Given that there is generally less entrepreneurship in Quebec than in the rest of Canada, we have to understand that putting another obstacle in the way of starting up businesses could be devastating to Quebec's economy.

Labour-sponsored funds generally make long-term investments in businesses. This allows entrepreneurs to start up a company and keep it going until it turns a profit, which can take a number of years. These funds generally also invest in smaller-scale projects than private funds, which makes it possible to help businesses that would not otherwise obtain any funding.

We know that these funds complement private funds rather than compete against them. Together, they allow Quebec to have a competitive economy and, above all, to be one of the most creative places in the world.

I have to speak out against the elimination of the tax credit for labour-sponsored funds and also the phasing-out of funding for Canada Economic Development for Quebec Regions.

Last year, the government said that cuts to the organization's operating budget would result in reductions in administrative costs, but not transfers. However, transfers to businesses will be at their lowest level since the law was enacted to establish the Economic Development Agency of Canada for the Regions of Quebec in 2005.

For example, in 2005, $286 million was paid out in transfers. In 2010-11, $424 million was paid out. The Conservatives plan to pay out only $212 million in 2013-14.

Taking inflation into account, we quickly realize that the Conservatives are also looking to gradually eliminate the agency. As I previously asked here in the House, will the Conservatives stand up and tell us clearly what they intend to do with Canada Economic Development for Quebec Regions? Are they planning on abolishing it, as they are doing with the tax credit for labour-sponsored funds? Many Quebec businesses need this government assistance. What is the Conservative plan? Why do most of their cuts directly target Quebec?

Another serious problem with this bill is that it calls into question the autonomy of crown corporations, including CBC/Radio-Canada, Canada Post and VIA Rail. Everyone knows that the Conservatives like to control everything and they never hesitate to extend the scope of this control. Many Canadians are justifiably concerned about this government's lack of transparency.

In my case, since this bill was introduced I have received five times more correspondence on this issue than on any others.

The government now wants to interfere in the collective bargaining process. It is talking about reducing the compensation of crown corporation employees, including their pensions.

I do not understand why Conservatives have such a rigid ideology. With this budget, they are taking advantage of their majority position to impose their vision on Canadians. This budget is openly hostile to workers, including employees of crown corporations.

Another major concern about this bill is that it does not do enough to stimulate the economy, particularly with regard to youth unemployment. We all know that young people have been hit hard by the economic crisis. Today, their unemployment rate is 5% higher than before the economic crisis. It is very disconcerting. As we speak, young people have just finished or are finishing up their semester. They racked up debt all year long in order to pay for tuition, housing, food and other things. However, they will have a hard time finding a summer job. For them, the summer is the only time when they can put a bit of money in their pockets.

If they do not get a job this summer, some young people will have to drop out of school temporarily or permanently only to, quite often, end up working for minimum wage. Many will not be able to resume their studies because they will not have the money to pay for another year of school. Those who pursue their studies anyway will have to tighten their belts, which will have an adverse economic impact. They will consume less this summer, which will decrease revenues for a number of businesses.

I am asking my Conservative colleagues: where are the measures for boosting youth employment? Where is the government's vision for young people? There is nothing for them in this budget, just bad news for their future.

I could go on and on about many other aspects of the budget that concern me. I raised a number of points at second reading. I raised more today, and I will raise even more at third reading.

Although there are some points I agree with, there are many I do not agree with. I am particularly concerned about the tax hikes, but I will not have time to talk about that issue.

In general, this bill and the government's economic action plan are tainted with a narrow ideology that does not support workers' rights. This ideology would have them control everything, even when the Supreme Court tells the government it cannot do something, as was the case with the securities commission.

This budget is not designed to stimulate the economy. Instead, it is designed to transform Canada into the Conservatives' vision for Canada. This is not a budget for Canadians. It is a budget for the Conservatives.

We will vote for Canadians and we will vote against this budget.

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

Mr. Speaker, I have a couple of quick questions. I know that the hon. member is from Quebec. He spent a lot of time talking specifically about Quebec. I am wondering if that is the start of a trend we are hearing from the Liberal Party. It is speaking about Quebec and somehow separating it from the rest of Canada, thereby pitting one region against the other. Is that something it will continue to do?

Because the member comes from Quebec, I wonder if he might also elaborate a bit on the attitude of Quebeckers with respect to reducing taxes for families and businesses. Do they feel as we do in the rest of our ridings and my riding that it helps actual job creation? At committee, we heard from an industry that is very important to the province of Quebec, the video gaming industry, about how important the tax cuts were to stimulating the creation of hundreds of thousands of jobs in that industry.

I am wondering if tax cuts are important to the people of Quebec. Are they helping to invest in and create jobs in this economy? Will we continue to see this pitting of one region of the country against another by the Liberals?