Bill C-31 (Historical)

Economic Action Plan 2014 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures

Part 1 implements income tax measures and related measures proposed in the February 11, 2014 budget. Most notably, it
(a) increases the maximum amount of eligible expenses for the adoption expense tax credit;
(b) expands the list of expenses eligible for the medical expense tax credit to include the cost of the design of individualized therapy plans and costs associated with service animals for people with severe diabetes;
(c) introduces the search and rescue volunteers tax credit;
(d) extends, for one year, the mineral exploration tax credit for flow-through share investors;
(e) expands the circumstances in which members of underfunded pension plans can benefit from unreduced pension-to-RRSP transfer limits;
(f) eliminates the need for individuals to apply for the GST/HST credit and allows the Minister of National Revenue to automatically determine if an individual is eligible to receive the credit;
(g) extends to 10 years the carry-forward period with respect to certain donations of ecologically sensitive land;
(h) removes, for certified cultural property acquired as part of a gifting arrangement that is a tax shelter, the exemption from the rule that deems the value of a gift to be no greater than its cost to the donor;
(i) allows the Minister of National Revenue to refuse to register, or revoke the registration of, a charity or Canadian amateur athletic association that accepts a donation from a state supporter of terrorism;
(j) reduces, for certain small and medium-sized employers, the frequency of remittances for source deductions;
(k) improves the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada; and
(l) requires a listing of outstanding tax measures to be tabled in Parliament.
Part 1 also implements other selected income tax measures. Most notably, it
(a) introduces transitional rules relating to the labour-sponsored venture capital corporations tax credit;
(b) requires certain financial intermediaries to report to the Canada Revenue Agency international electronic funds transfers of $10,000 or more;
(c) makes amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency;
(d) permits the disclosure of taxpayer information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(e) provides that the Business Development Bank of Canada and BDC Capital Inc. are not financial institutions for the purposes of the Income Tax Act’s mark-to-market rules.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the February 11, 2014 budget by
(a) expanding the GST/HST exemption for training that is specially designed to assist individuals with a disorder or disability to include the service of designing such training;
(b) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by acupuncturists and naturopathic doctors;
(c) adding eyewear specially designed to treat or correct a defect of vision by electronic means to the list of GST/HST zero-rated medical and assistive devices;
(d) extending to newly created members of a group the election that allows members of a closely-related group to not account for GST/HST on certain supplies between them, introducing joint and several (or solidary) liability for the parties to that election for any GST/HST liability on those supplies and adding a requirement to file that election with the Canada Revenue Agency;
(e) giving the Minister of National Revenue the discretionary authority to register a person for GST/HST purposes if the person fails to comply with the requirement to apply for registration, even after having been notified by the Canada Revenue Agency of that requirement; and
(f) improving the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada.
Part 2 also implements other GST/HST measures by
(a) providing a GST/HST exemption for supplies of hospital parking for patients and visitors, clarifying that the GST/HST exemption for supplies of a property, when all or substantially all of the supplies of the property by a charity are made for free, does not apply to paid parking and clarifying that paid parking provided by charities that are set up or used by municipalities, universities, public colleges, schools and hospitals to operate their parking facilities does not qualify for the special GST/HST exemption for parking supplied by charities;
(b) clarifying that reports of international electronic funds transfers made to the Canada Revenue Agency may be used for the purposes of the administration of the GST/HST;
(c) making amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency;
(d) permitting the disclosure of confidential GST/HST information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(e) clarifying that a person cannot claim input tax credits in respect of an amount of GST/HST that has already been recovered by the person from a supplier.
Part 3 implements excise measures proposed in the February 11, 2014 budget by
(a) adjusting the domestic rate of excise duty on tobacco products to account for inflation and eliminating the preferential excise duty treatment of tobacco products available through duty free markets;
(b) ensuring that excise tax returns are filed accurately through the addition of a new administrative monetary penalty and an amended criminal offence for the making of false statements or omissions, consistent with similar provisions in the GST/HST portion of the Excise Tax Act; and
(c) improving the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada.
Part 3 also implements other excise measures by
(a) permitting the disclosure of confidential information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(b) making amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency.
In addition, Part 3 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to clarify that reports of international electronic funds transfers made to the Canada Revenue Agency may be used for the purposes of the administration of those Acts.
Part 4 amends the Customs Tariff. In particular, it
(a) reduces the Most-Favoured-Nation rates of duty and, if applicable, rates of duty under the other tariff treatments on tariff items related to mobile offshore drilling units used in oil and gas exploration and development that are imported on or after May 5, 2014;
(b) removes the exemption provided by tariff item 9809.00.00 and makes consequential amendments to tariff item 9833.00.00 to apply the same tariff rules to the Governor General that are applied to other public office holders; and
(c) clarifies the tariff classification of certain imported food products, effective November 29, 2013.
Part 5 enacts the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act and amends the Income Tax Act to introduce consequential information reporting requirements.
Part 6 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 6 provides for payments to compensate for deductions in certain benefits and allowances that are payable under the Canadian Forces Members and Veterans Re-establishment and Compensation Act, the War Veterans Allowance Act and the Civilian War-related Benefits Act.
Division 2 of Part 6 amends the Bank of Canada Act and the Canada Deposit Insurance Corporation Act to authorize the Bank of Canada to provide banking and custodial services to the Canada Deposit Insurance Corporation.
Division 3 of Part 6 amends the Hazardous Products Act to better regulate the sale and importation of hazardous products intended for use, handling or storage in a work place in Canada in accordance with the Regulatory Cooperation Council Joint Action Plan initiative for work place chemicals. In particular, the amendments implement the Globally Harmonized System of Classification and Labelling of Chemicals with respect to, among other things, labelling and safety data sheet requirements. It also provides for enhanced powers related to administration and enforcement. Finally, it makes amendments to the Canada Labour Code and the Hazardous Materials Information Review Act.
Division 4 of Part 6 amends the Importation of Intoxicating Liquors Act to authorize individuals to transport beer and spirits from one province to another for their personal consumption.
Division 5 of Part 6 amends the Judges Act to increase the number of judges of the Superior Court of Quebec and the Court of Queen’s Bench of Alberta.
Division 6 of Part 6 amends the Members of Parliament Retiring Allowances Act to prohibit parliamentarians from contributing to their pension and accruing pensionable service as a result of a suspension.
Division 7 of Part 6 amends the National Defence Act to recognize the historic names of the Royal Canadian Navy, the Canadian Army and the Royal Canadian Air Force while preserving the integration and the unification achieved under the Canadian Forces Reorganization Act and to provide that the designations of rank and the circumstances of their use are prescribed in regulations made by the Governor in Council.
Division 8 of Part 6 amends the Customs Act to extend to 90 days the time for making a request for a review of a seizure, ascertained forfeiture or penalty assessment and to provide that requests for a review and third-party claims can be made directly to the Minister of Public Safety and Emergency Preparedness.
Division 9 of Part 6 amends the Atlantic Canada Opportunities Agency Act to provide for the dissolution of the Atlantic Canada Opportunities Board and to repeal the requirement for the President of the Atlantic Canada Opportunities Agency to submit a comprehensive report every five years on the Agency’s activities and on the impact those activities have had on regional disparity.
Division 10 of Part 6 dissolves the Enterprise Cape Breton Corporation and authorizes, among other things, the transfer of its assets and obligations, as well as those of its subsidiaries, to either the Atlantic Canada Opportunities Agency or Her Majesty in right of Canada as represented by the Minister of Public Works and Government Services. It also provides that the employees of the Corporation and its subsidiaries are deemed to have been appointed under the Public Service Employment Act and includes provisions related to their terms and conditions of employment. Furthermore, it amends the Atlantic Canada Opportunities Agency Act to, among other things, confer on the Atlantic Canada Opportunities Agency the authority that is necessary for the administration, management, control and disposal of the assets and obligations transferred to the Agency. It also makes consequential amendments to other Acts and repeals the Enterprise Cape Breton Corporation Act.
Division 11 of Part 6 provides for the transfer of responsibility for the administration of the programs known as the “Online Works of Reference” and the “Virtual Museum of Canada” from the Minister of Canadian Heritage to the Canadian Museum of History.
Division 12 of Part 6 amends the Nordion and Theratronics Divestiture Authorization Act to remove certain restrictions on the acquisition of voting shares of Nordion.
Division 13 of Part 6 amends the Bank Act to add regulation-making powers respecting a bank’s activities in relation to derivatives and benchmarks.
Division 14 of Part 6 amends the Insurance Companies Act to broaden the Governor in Council’s authority to make regulations respecting the conversion of a mutual company into a company with common shares.
Division 15 of Part 6 amends the Motor Vehicle Safety Act to support the objectives of the Regulatory Cooperation Council to enhance the alignment of Canadian and U.S. regulations while protecting Canadians. It introduces measures to accelerate and streamline the regulatory process, reduce the administrative burden for manufacturers and importers and improve safety for Canadians through revised oversight procedures and enhanced availability of vehicle safety information.
The amendments to the Railway Safety Act and the Transportation of Dangerous Goods Act, 1992 modernize the legislation by aligning it with the Cabinet Directive on Regulatory Management.
This Division also amends the Safe Food for Canadians Act to authorize the Governor in Council to make regulations respecting activities related to specified fresh fruits and vegetables, including requiring a person who engages in certain activities to be a member of a specified entity or organization. It also repeals the Board of Arbitration.
Division 16 of Part 6 amends the Telecommunications Act to set a maximum amount that a Canadian carrier can charge to another Canadian carrier for certain roaming services.
Division 17 of Part 6 amends the Canada Labour Code to allow employees to interrupt their compassionate care leave or leave related to their child’s critical illness, death or disappearance in order to take leave because of sickness or a work-related illness or injury. It also amends the Employment Insurance Act to facilitate access to sickness benefits for claimants who are in receipt of compassionate care benefits or benefits for parents of critically ill children.
Division 18 of Part 6 amends the Canadian Food Inspection Agency Act to provide that fees fixed under that Act for the use of a facility provided by the Canadian Food Inspection Agency under the Safe Food for Canadians Act as well as fees fixed for services, products and rights and privileges provided by the Agency under that Act are exempt from the application of the User Fees Act.
Division 19 of Part 6 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, enhance the client identification, record keeping and registration requirements for financial institutions and intermediaries, refer to online casinos, and extend the application of the Act to persons and entities that deal in virtual currencies and foreign money services businesses. Furthermore, it makes modifications in regards to the information that the Financial Transactions and Reports Analysis Centre of Canada may receive, collect or disclose, and expands the circumstances in which the Centre or the Canada Border Services Agency can disclose information received or collected under the Act. It also updates the review and appeal provisions related to cross-border currency reporting and brings Part 1.1 of the Act into force.
Division 20 of Part 6 amends the Immigration and Refugee Protection Act and the Economic Action Plan 2013 Act, No. 2 to, among other things,
(a) require certain applications to be made electronically;
(b) provide for the making of regulations regarding the establishment of a system of administrative monetary penalties for the contravention of conditions applicable to employers hiring foreign workers;
(c) provide for the termination of certain applications for permanent residence in respect of which a decision as to whether the selection criteria are met is not made before February 11, 2014; and
(d) clarify and strengthen requirements related to the expression of interest regime.
Division 21 of Part 6 amends the Public Service Labour Relations Act to clarify that an adjudicator may grant systemic remedies when it has been determined that the employer has engaged in a discriminatory practice.
It also clarifies the transitional provisions in respect of essential services that were enacted by the Economic Action Plan 2013 Act, No. 2.
Division 22 of Part 6 amends the Softwood Lumber Products Export Charge Act, 2006 to clarify how payments to provinces under section 99 of that Act are to be determined.
Division 23 of Part 6 amends the Budget Implementation Act, 2009 so that the aggregate amount of payments to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime may be fixed through an appropriation Act.
Division 24 of Part 6 amends the Protection of Residential Mortgage or Hypothecary Insurance Act and the National Housing Act to provide that certain criteria established in a regulation may apply to an existing insured mortgage or hypothecary loan.
Division 25 of Part 6 amends the Trade-marks Act to, among other things, make that Act consistent with the Singapore Treaty on the Law of Trademarks and add the authority to make regulations for carrying into effect the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks. The amendments include the simplification of the requirements for obtaining a filing date in relation to an application for the registration of a trade-mark, the elimination of the requirement to declare use of a trade-mark before registration, the reduction of the term of registration of a trade-mark from 15 to 10 years, and the adoption of the classification established by the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks.
Division 26 of Part 6 amends the Trade-marks Act to repeal the power to appoint the Registrar of Trade-marks and to provide that the Registrar is the person appointed as Commissioner of Patents under subsection 4(1) of the Patent Act.
Division 27 of Part 6 amends the Old Age Security Act to prevent the payment of Old Age Security income-tested benefits for the entire period of a sponsorship undertaking by removing the current 10-year cap.
Division 28 of Part 6 enacts the New Bridge for the St. Lawrence Act, respecting the construction and operation of a new bridge in Montreal to replace the Champlain Bridge and the Nuns’ Island Bridge.
Division 29 of Part 6 enacts the Administrative Tribunals Support Service of Canada Act, which establishes the Administrative Tribunals Support Service of Canada (ATSSC) as a portion of the federal public administration. The ATSSC becomes the sole provider of resources and staff for 11 administrative tribunals and provides facilities and support services to those tribunals, including registry, administrative, research and analysis services. The Division also makes consequential amendments to the Acts establishing those tribunals and to other Acts related to those tribunals.
Division 30 of Part 6 enacts the Apprentice Loans Act, which provides for financial assistance for apprentices to help with the cost of their training. Under that Act, apprentices registered in eligible trades will be eligible for loans that will be interest-free until their training ends.

Report Stage

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, it is nice to have some levity at 11:45 p.m.

There are a number of things in it that are important to me. The basic fact that with the budget implementation bill is that we have made a commitment to Canadians that we will have a balanced budget and balanced books. There is not a lot of new spending in the bill. There are some changes to HST.

An example that is close to my heart is this. I have Type II diabetes, but fortunately I can manage it through diet and exercise. That is not the case for many Canadians and diabetes has a tremendous effect on the health and well-being of many Canadians. We have recognized that issue and I have a motion on obesity that was unanimously supported by the House. We recognize there are some medical needs in terms of guide dogs and assistance dogs for those with diabetes. There are a number of small items in the bill.

The core piece to the bill is that we want to get back to balanced books. I am asked all the time what I am hearing the most about. I do not hear a whole lot about trademark. I do not hear a lot about a number of very specific issues. I go to at least five events a weekend in my riding. I am fortunate to live in an urban area where it is relatively simple to get from one event to another. I am asked over and over again, why do we have a deficit? What is causing the deficit?

We talked about the recession and the work we have done in terms of investing to make sure Canada gets back to work so we have growth and employment in this country. I cannot run my business by spending more than I take in. In a business, it can be done for a short term, but eventually it has to make more money than is being spent. People cannot continue to borrow and borrow and never pay it back. They would be bankrupt. This country cannot afford to be bankrupt. We have an opportunity to get people back to work, which we have done. We have an opportunity through these budget processes to get back to balanced budgets and balanced books so that we can invest in other infrastructure projects and social services.

When I look at the pages in the legislative summary of the bill and the small changes in the HST, these are small changes. I am not running out on the street saying we are going to make big changes in the budget implementation bill. The big change we are making is that we have made a commitment to Canadians to get back to a balance so that we can afford the services that Canadians are asking the federal government to provide.

I know there are a number of issues that people may ask me about. I am happy to answer, but it is time to get on with the work of this place, to finish this debate, to vote on it, and to move on to other issues. We have a number of legislative items the House needs to deal with that have very significant importance including the new prostitution laws that were introduced today by the Minister of Justice. There are a number of things to deal with. Let us get this budget implementation bill passed and move on to the next item.

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

Mr. Speaker, I listened with great intent, and even some amusement. I appreciate that my friend brings some levity to something as scintillating as a budget implementation act today at 11:45 p.m.

I have a very specific and important question for him on what is in this bill, because it covers a lot. It goes across a whole spectrum of different issues that would affect 60 different laws.

As my Conservative colleagues used to believe when they were in opposition, it can at times be an abuse of power by a government to ram so much into a single vote and to then demand that members speak in just a 10-minute slot and then vote once. I have quote after quote from the Prime Minister and from various cabinet ministers, Conservatives all, who, when in opposition, decried this very same technique used by the Liberals.

Let me be specific about the effect on veterans from what exists in this bill. There has been much concern coming from us, as the official opposition, having listened to the families of veterans and the veterans themselves, particularly those who have suffered through some injury or another incurred while in the service of this country.

Whether those injuries were physical in nature or otherwise, such as PTSD, one of the grievous mistakes the government made was a clawback of veterans' benefits for those who had been injured. It is a very specific clawback that affected veterans like Sean Bruyea.

Veterans like Sean Bruyea, who very bravely came forward, even though his mental health records were scandalously exposed by the government, came before the committee and said that the clawback started in 2006, which it did. The government says that the clawback was wrong but has only turned the clock back three months for those veterans rather than all the way back to 2006, when the clawback actually started.

This is going to court again. The government spent $20 million going to court the first time. Why make veterans go to court again just to seek justice on the rewards they so justly deserve on behalf of the Canadian people?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I have been very proactive with the veterans groups in my riding. For example, prior to Christmas, I met with the Legion management and the legionnaires to talk about the changes that were needed in the new veterans charter. They gave me some feedback, and I provided it to the committee.

First of all, I would like to congratulate all members of that committee on all sides of the House for bringing a unanimous report forward on recommendations for changes to the new veterans charter.

Recently I had a meeting with veterans in my riding with almost 100 veterans. It was not last weekend, when I ran a marathon in Calgary, but the weekend before that. Some of them were from the United States. We have some U.S. veterans in a Legion in my riding. Not one veteran came to see me and said that the federal government is not doing the right thing by veterans. We got support for everything we were doing to continue to work on that.

I rely on my constituents to tell me what we are doing right and wrong, and that is the feedback I got from the veterans in my riding.

[Scott Andrews, Liberal, Avalon, NL]

Mr. Speaker, I am not going to bite on that last comment about veterans, because I want to carry on in the same spirit in which the member spoke.

I would like to ask him about JDRF and juvenile diabetes. Being a type 2 diabetic himself, he might be able to give us some information. This weekend we are all going on walks in support of JDRF in our communities. It is trying to do research on type 1 juvenile diabetes.

My question for the member is something that he may know about. What is the government going to do to help support research and development on juvenile diabetes in Canada?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I have been very honoured to be part of a juvenile diabetes caucus on the Hill. Part of that was to convince the minister and the government to provide money for research, which they did, for an artificial pancreas. We are getting very close in Canada to being able to develop that. We will be the first ones in the world to develop an artificial pancreas with help from research funding from the government to make that happen.

I am very proud of the government's support of juvenile diabetes and the research that needs to be done to make better lives for those who are suffering from that disease.

[Scott Andrews, Liberal, Avalon, NL]

Mr. Speaker, it is a pleasure to add my voice to the budget debate this evening.

First, let me reflect upon the government touting how we are now coming out of deficit and running into surplus.

It was the Conservative government that was handed several surplus budgets in a row and for a Conservative government, it has run a number of deficits over the last number of years. Finally it is getting back to a balanced approach, and it is about time.

With respect to veterans, I have to disagree with the last member who spoke. One thing I hear more often about veterans and their issues is that they are getting very agitated with the treatment they receive. Usually a lot of our veterans have gone about their work over the years, asking for nothing in return but a pat on the back and a “Thank you for your service”.

However, in the last 10 months, there has been a noticeable difference in our veterans becoming more vocal because of the way they are treated.

I am glad to hear that the committee has come up with unanimous recommendations because there are veterans, even today, outside this building, protesting that the government does not care and that all things are not as rosy as the government wants us to believe.

I would like to focus some of my thoughts on my province of Newfoundland and Labrador and, in particular, the cuts to Marine Atlantic.

Over the last number of years, we have seen tens of millions of dollars cut from the Marine Atlantic budget and, thus, it has to increase its fees. Over the last number of years, the fees have increased almost 15% to the average user.

What has happened is that the ferry service between Nova Scotia and the island of Newfoundland has become more unaffordable for many people to travel across the gulf, and this is a direct result of the cuts to Marine Atlantic and the increase in fees.

This year, as we are getting ready for the summer travel season, Marine Atlantic has announced that it has increased its fees, its budget has been cut, and it will now cut crossings. It has cut a number of crossings just as people are starting to make their plans or have already made their plans to cross on Marine Atlantic over the course of the summer. Now the service is being cut back again.

It not only impacts our tourist industry, but businesses in general. I have had a few calls this week from individuals who have said that the cuts to Marine Atlantic are hurting their businesses and the economy. They have things on the other side of the gulf that they are trying to get, but the suppliers cannot get the products into the province so they can work.

It is an economic driver of the economy in Newfoundland. It is also our link to the rest of Canada, our link to many grocery products. People probably do not realize how fresh the produce or fruit is. A lot of the produce that comes into Newfoundland and Labrador comes through North Sydney. Many times it is trucked from Montreal to North Sydney and then waits there, on the dock. Cutting crossings will impact the ability for residents of the province to get fresh produce.

I have heard from many truckers. We need to have a look at Marine Atlantic and get back to the basis of what it is there to do, which is to provide a service to our province.

Getting into Bill C-31, we were talking a bit earlier about search and rescue. One of the things that keeps coming up is the volunteer tax credit for search and rescue.

It is a good and noble idea, but it did come with a few strings attached. If someone is a volunteer firefighter and a search and rescue volunteer, his or her tax credits are combined, instead of getting one for the work as a volunteer firefighter and one as a search and rescue volunteer. They should be two separate tax credits because they are two separate and distinct jobs, even though in some communities they are rolled into one. This should be made a refundable tax credit so that low-income volunteers can also benefit from this initiative. In a lot of these communities the volunteers in these organizations have low incomes. They do it to make their community a better place and for personal fulfillment, but they do not get any benefit from it, whereas the person who is working alongside them gets the benefit, so it is not equal for all.

Before I go on, the member for Saint John mentioned the three RCMP officers who were killed this evening. I would like to echo my sympathy to the families of those RCMP officers. All of us have friends who have been involved with or are members of the force. This is a sad time for them as well. I just remembered that and wanted to make that point.

Another favourite topic of ours in Newfoundland and Labrador is ACOA and what it is doing in our province. This budget makes vague references to the programs and improvements that will be made to ACOA, but what we have seen over the last number of years is that the ACOA budget has been slashed and cut by almost $30-odd million. When we look to the estimate programs we see that the Conservatives have cut budgets to ACOA but then it is not getting money out the door.

One of the most common complaints I hear from different community groups is that it is not easy to apply. The process through ACOA is a long one. Its first initial reaction is to say no to applicants and it takes a very long time to get money out the door with ACOA. It needs to go back to what it originally had done, which is to help regional development and get back to the basics of providing regional activities and regional benefits, and for smaller projects. If we look at a lot of our communities in rural Canada, where is the presence of the federal government? It is a product over the years that right now in Newfoundland the presence of the federal government is the post office, and we have seen what has happened to that. The other presence of the federal government is the small craft harbours program, which does great work, but that is it. Often people are looking for help to improve their communities. ACOA is a good agency to deliver that, but we are not seeing that. We need to get back to the basics when it comes to ACOA and regional development.

[The Deputy Speaker, Joe Comartin]

Order, please. The member will have five minutes of questions and comments when we resume debate on Bill C-31.

The House resumed consideration of Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Economic Action Plan 2014 Act, No. 1

[The Speaker, Andrew Scheer]

The hon. member for Winnipeg North has six minutes left for his speech.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, prior to question period, I was commenting on the issue of the economics of balanced budgets. We recognize that this is something on which the government has fallen short. I want to move forward on it and talk about priorities and what the government needs to focus more on.

In the last number of months, we have seen several issues come to the floor of the House. I thought it might be beneficial to provide some sort of brief comment on them.

One of the issues that has always been important to me is health care. I had the opportunity to pose a question on this issue in the debate on the budget implementation bill. I raised the fact that the health care accord had expired.

One of the things we have found with the Prime Minister is that he has not been very successful in meeting with the provinces or getting them together to look at what is important to the country as a whole. The Prime Minister has really fallen short on recognizing how important health care is to all Canadians. The government's response to that issue has been quite surprising. It has literally done nothing.

I would like to think that the government could have demonstrated a much tougher approach, trying to appease the issues of health care and looking at ways in which we could achieve another health care accord. This is very important to Canadians, and it would have been nice to see it being incorporated into a supplementary budget document and allow for some form of an agreement. I believe the government is selling short the importance of health care to Canadians.

Another issue that comes up when I am in my constituency is crime and safety. I have had the opportunity to raise this issue in the past. The government is very good at taking certain aspects of legislation, bringing them forward and trying to give the impression that it wants to get tough on crime when, in fact, it would be far better off coming up with bold initiatives under the budget that would prevent crimes from being committed in the first place.

I would ultimately argue that when we look at the budget, it is an issue of priorities. If the government wanted to have more of a profound impact on dealing with the issue of crime, it would need to invest in issues that would allow for more youth engagement in our communities in a more positive fashion.

This, again, is one of the deficiencies of this budget and, therefore, the budget implementation bill. The bill does nothing that is really creative or, using my previous example, that allows more youth being positively engaged in the communities we represent. That is important not only to my constituents, but to constituents as a whole.

We have talked a great deal within the Liberal Party. Since the leader of the Liberal Party was elected, one of the priority issues has been the middle class and what the government has done for its betterment.

I cannot help but notice that since the leader of the Liberal Party was elected, the term “middle class” has been used a great deal more inside the House. Whether it is the Conservatives or the New Democrats, they are talking about the middle class a whole lot more. I acknowledge that it is a positive thing. Prior to becoming the leader of the Liberal Party, far less attention was being given to the middle class.

It is interesting and encouraging to hear more talk about it from the government, but we would really like to see more tangible action that would made a positive difference for our middle class.

The leader of the Liberal Party has talked about this when we go forward. This is an issue on which the Liberal Party will continue to challenge the government, such as how it delivers on economic and social policies for Canada's middle class, which is of great importance.

I have also highlighted another deficiency of the government in regard to the infrastructure. Municipalities and communities across our country are in need of infrastructure dollars, and those infrastructure dollars need to be spent today. The government's focus has been to try to work on spin, saying that it is spending more on infrastructure and that it is a huge commitment. What it does not tell Canadians is that the bulk of that money will not be spent until well after the next federal election. The next real batch of any large amounts of money will not occur until the election year.

At a time when our municipalities and communities are in need, and there is a wonderful opportunity for the government to invest in our infrastructure today, sadly, the government has chosen not to do so. That is at great cost to the many different communities we all represent.

With those few words, I look forward to any questions there might be. I wish we did not need to have a time limit on this bill.

[Dan Albas, Conservative, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, the member referenced the middle class several times in his speech today, and to some extent I would hope we would be here for all Canadians, not necessarily just one segment. However, given he made that the focus of his speech, I would like to ask the member his thoughts on the recent Parliamentary Budget Officer's report with regard to $30 billion less taxes predominantly going toward low to middle income Canadians, which helps put money in people's jeans, helps our local economies and supports our country.

I would also like to ask the member for his thoughts on the recent report in The New York Times saying that Canada's middle class is doing very well.

I find it interesting that he is talking about things and raising criticisms when our country has never been stronger on so many of these points.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, this is a bit of a problem. The Conservatives, whether it is that minister, or the Prime Minister or the people in short pants in the Prime Minister's Office, are very selective in the quotes and the stats they want to look at. Why not reflect on what their constituents might be telling them, which is that they have higher credit card debt, more and more consumer loans, mortgage rates, in terms of the amount of money borrowed, that are not going down. There is more debt out there. More and more youth and young adults are staying at home because they cannot afford to leave their parents' homes. More and more parents are having to cover the cost of our youth and young adults because of their inability to get out on their own.

These issues are more prevalent today than I have ever experienced, and I have been around as a parliamentarian for over 20 years. In the last number of years, we have seen dramatic increases in the reliance on the middle class, more than I have witnessed in the past.

The hon. member may be able to draw the odd stat here or an interesting story over there, but the reality is quite different. All he needs to do is canvass his constituents and he will find that the disposable income they had before just does not seem to be there, that the costs they are incurring today are quite different from what they were before. The amount of debt today is significantly higher than what it was before.

The middle class in Canada is hurting.

[Geoff Regan, Liberal, Halifax West, NS]

Mr. Speaker, in relation to the question a moment ago from our hon. Conservative colleague, if he were to go knocking on doors or go to the mall this weekend and speak to constituents in his riding, if he were to tell them that everything was fine, that the cost of living was not going up, that they should not worry about the difficulties they thought they had in making ends meet because they really did not having any trouble at all and that they were in the best situation in the world, I wonder how they would react. I would ask him to talk on that.

I would also like him to talk about the fact that infrastructure improvements are important. I had a meeting recently with folks from the St. Margaret's Centre in my riding, who are working to replace the swimming pool there. They are looking for funding for infrastructure in a year in which the government has cut the annual funding for infrastructure from $1.3 billion last year to only $210 million this year, which when spread across the country, is pretty darn thin and does not allow much for things like pools, roads, transit, or other needed infrastructure in our communities.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, my colleague is right on in his assessment. Let me first deal with the issue of infrastructure. If we were to do as my colleague suggested, go into the constituencies and identify within our communities, we would find a very high demand for infrastructure dollars. There is no shortage of ideas and needs to build upon our infrastructure. Some of those could be relatively small community oriented. It could be a pothole in the street. It could also be an economic underpass that is needed to help drive an economy. Investing in infrastructure does not mean it is all lost tax dollars. If we have a healthy infrastructure, it leads to more economic activity in many different ways.

In regard to the other issue, in terms of communicating what is important, I love what the leader of the Liberal Party has been saying about the members of Parliament and the need to start recognizing that they need to go and represent Ottawa inside their constituencies. This is approach the Prime Minister has taken, that MPs represent Ottawa in their constituencies. The leader of the Liberal Party is suggesting that it be the other way around. It is time we started representing our constituents in Ottawa. Therefore, if we adopt that approach, I believe we would be better able to address the real needs of Canadians.

[Chungsen Leung, Conservative, Parliamentary Secretary for Multiculturalism]

Mr. Speaker, I am pleased to rise today in support of the budget implementation act. This act would ensure that important provisions in budget 2014 are implemented. This is especially true in the case affecting my riding of Willowdale, which has a lot of small and medium-sized businesses.

Our government has never strayed from our commitment to strengthen our economy for Canadians and the determination to see our plan through without raising taxes. Our government believes the hard-earned money of families and entrepreneurs belongs in the pockets of families and entrepreneurs. Low taxes, positive and targeted measures for economic growth and for families, and balanced budgets are the right combination and the right path for economic growth.

Our plan has been reviewed by the business community. Recently the Conference Board of Canada performed a study on how Canada performs in our economy to find out which countries around the world are prosperous and which are not. The results are that Canada ranks fifth overall in economic performance among the top 16 countries around the world. This is good news for Canada as we continue to weather the global economic slowdown.

It is also important to note the recent report of the Parliamentary Budget Officer. This report has concluded that personal income taxes are $17.1 billion lower today and that Canadian consumers are paying about $13.3 billion less in value-added taxes on their purchases of goods and services. I am proud of our government's record in standing up for Canadian consumers and families through these tax reductions. It is also very encouraging that recently the annual “Update of Economic and Fiscal Projections” confirmed that our Conservative government is on track to balance the budget in 2015 and is expected to have a surplus of $3.7 billion in the 2015-16 fiscal year. Our plan is working for Canadians, and I am proud to stand in support of policies that benefit the people I represent.

As the world experienced the economic downturn, our government introduced targeted spending to help protect Canadian jobs and to support the economy. Despite ongoing global economic uncertainty, Canada has the best job-creation record, the lowest net debt ratio, and the strongest business investment growth in the G7. These temporary initiatives have helped create jobs and growth. However, our government understands the importance of balanced budgets and fiscal responsibility for Canada's long-term economic success.

Our government would invest $11 million over two years and $3.5 million per year ongoing to strengthen the labour market opinion process to ensure that Canadians are given the first chance at available jobs. We would also provide $14 million over two years and $4.7 million per year ongoing toward the successful implementation of an expression of interest economic immigration system to support Canada's labour market needs.

Our government believes that families and communities are valuable in our economy. That is why we would encourage competition and lower prices in the telecommunications market by capping wholesale domestic wireless roaming rates to prevent wireless providers from charging other companies who may be their competitors more than they charge their own customers for mobile voice, data, and text services.

We have introduced a search and rescue volunteers tax credit for search and rescue volunteers who perform at least 200 hours of service in a year.

We would increase the maximum amount of the adoption expense tax credit to $15,000 to help make adoption more affordable for Canadian families.

We would exempt acupuncturists' and naturopathic doctors' professional services from the goods and services tax and harmonized sales tax. We would also expand the list of eligible expenses under the medical expense tax credit to include costs associated with service animals that are specially trained to assist individuals with severe diabetes, such as diabetes alert dogs, as well amounts paid for the design of an eligible individualized therapy plan.

It is important to note that since the government first introduced the economic action plan to respond to the global recession, and part of that plan was to address some specific areas in the Canadian economy that were affected by the downturn, Canada has recovered more than all of the output and all of the jobs lost during the recession, the result of the sound economic policy of our government. Since July 2009, employment has increased by over one million. It is more than 600,000 above its pre-recession peak, the strongest job growth among the group of seven countries over the recovery. Almost 90% of all jobs created since July 2009 are full-time positions, close to 85% are in the private sector, and over two-thirds are in high-wage industries. Real gross domestic product is significantly above pre-recession levels, the best performance in the G7.

Balancing Canada's budget is essential to the long-term health and prosperity of our economy. By keeping our fiscal house in order, we can help keep taxes low, social programs affordable, and the economy growing. That is why our Conservative government remains committed to balancing the budget in 2015. We would do this by controlling spending and making government more efficient with taxpayers' dollars. What we would not do is cut provincial transfers for important social programs like health care and education.

Overall, since 2010, our actions have saved taxpayers nearly $19 billion per year. This prudent economic leadership has helped Canada maintain its strong fiscal position, with the best job creation record and debt-to-GDP ratio in the G7. Returning to balance will cement Canada's status as an economic powerhouse.

We all know that balanced budgets help keep taxes low, attract investment, and ensure sustainable social programs. Despite demands by the opposition for more government spending, we will continue to make government more efficient.

For Ontario, the federal budget confirmed that provincial transfers would total $19.2 billion in 2014-15. This is a whopping increase of 76% from the previous government. That government radically slashed transfers to Ontario, decimating health care, education, and other important social services that families rely on. Under our Conservative government, federal support has grown to historic levels and will continue to grow in the future.

Investment in Canada's public infrastructure creates jobs, promotes economic growth, and provides a high quality of life for families in every city and community across the country. Our government has made significant investments since 2006 to build roads, bridges, subways, rail, and much more. Furthermore, in 2013, our government announced the new Building Canada plan, a $53-billion investment in critical infrastructure funding for the next 10 years. This is the largest and longest federal investment in job-creation infrastructure in Canada's history.

Our government recognizes that Canada's seniors have helped build and make our country great. That is why since 2006, about $2.8 billion in annual tax relief has been provided to seniors and pensioners, including introducing pension income splitting, increasing the age credit amount by $2,000, doubling the pension income credit, increasing the amount of the guaranteed income supplements, increasing the age limit for the RRSP-to-RRIF conversion, and establishing the landmark tax-free savings account.

Our government has been keeping Canada on the right path for economic growth. This includes lowering taxes over 160 times, which will save the average Canadian family nearly $3,400 on their tax bills in 2014. We also cut taxes for job-creating businesses, allowing them to hire more workers and open up new markets for Canadian goods and services, most recently through the historic Canada-European Union trade agreement.

To help Canadians get the skills and training they need to succeed, our plan would also move forward with the Canada job grant to connect people looking for work directly with in-demand jobs. We would also introduce the Canadian apprentice loan to give access to student loans to apprentices for the first time ever.

This bill is great news for my constituents in Willowdale and all the small and medium-sized businesses that sustain our economy. I invite all members of the House to join me in supporting jobs, growth,and long-term economic prosperity.