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

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Joe Oliver  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

Elsewhere

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

Votes

June 12, 2014 Passed That the Bill be now read a third time and do pass.
June 12, 2014 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “this House decline to give third reading to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, because it: ( a) has not received adequate study or amendment by Parliament; ( b) cancels the hiring credit for small business ( c) raises costs for Canadian businesses through changes to trademark law that have been opposed by dozens of chambers of commerce, businesses and legal experts; ( d) hands over private financial information of hundreds of thousands of Canadians to the US Internal Revenue Service under Foreign Account Tax Compliance Act; ( e) undermines the independence of 11 federal administrative tribunals; and ( f) fails to fully compensate for years of unjust clawback to the benefits of Canada's disabled veterans.”.
June 9, 2014 Passed That Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 376.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 375.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 371.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 369.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 317.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 313.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 308.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 300.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 223.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 211.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 206.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 179.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 175.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 110.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 28.
June 9, 2014 Failed That Bill C-31 be amended by deleting Clause 27.
June 9, 2014 Failed That Bill C-31 be amended by deleting the short title.
June 5, 2014 Passed That, in relation to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, not more than five further hours shall be allotted to the consideration at report stage of the Bill and five hours shall be allotted to the consideration at third reading stage of the said Bill; and that, at the expiry of the five hours provided for the consideration at report stage and the five hours provided for the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the said stages of the Bill then under consideration shall be put forthwith and successively, without further debate or amendment.
April 8, 2014 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
April 8, 2014 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, because it: ( a) amends more than sixty Acts without adequate parliamentary debate and oversight; ( b) does nothing to create quality, good-paying jobs for Canadians and fails to extend the hiring credit for small business; ( c) fails to reverse devastating cuts to infrastructure and healthcare; ( d) hands over private financial information of hundreds of thousands of Canadians to the US Internal Revenue Service under the Foreign Account Tax Compliance Act; ( e) reduces transparency at the Atlantic Canada Opportunities Agency; (f) imposes tolls on the Champlain Bridge; ( g) jeopardizes the independence of eleven federal administrative tribunals; and ( h) enables the government to weaken regulations affecting rail safety and the transport of dangerous goods without notifying the public.”.
April 3, 2014 Passed That, in relation to Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, not more than three further sitting days after the day on which this Order is adopted shall be allotted to the consideration at second reading stage of the Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the third day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Economic Action Plan 2014 Act, No. 1Government Orders

April 3rd, 2014 / 5:15 p.m.


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Liberal

Emmanuel Dubourg Liberal Bourassa, QC

Mr. Speaker, I would like to ask a question of the member. In his speech, he gave us an entire history; he talked about 40 or 50 years from now, but we are talking about a budget that has been tabled. I would like to hear what he has to say about this budget.

In his view, what in this budget will help individuals in my riding, middle-class individuals, immigrants and newcomers? I had the same question for the Minister of Finance. Does he feel comfortable with this omnibus bill, a catch-all that includes everything from the Champlain Bridge to measures with the United States, hiding the economic importance of the economic plan that Canada needs to have?

Economic Action Plan 2014 Act, No. 1Government Orders

April 3rd, 2014 / 5:15 p.m.


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Conservative

Ben Lobb Conservative Huron—Bruce, ON

Mr. Speaker, to answer the member's question, one of them is skilled trades. We have this huge skilled trades deficit in our country, particularly in Ontario. I would suggest that the Ontario Liberal government is at the root of that problem.

However, we have $100 million in this BIA, which the opposition will vote against, that would help young men and women who want to get into the trades to have interest-free loans.

He asked about things in the budget, so I will give you one item from the budget: rural broadband. I am from a rural riding. In order for rural businesses to conduct their business in the year 2014 and beyond, we need rural broadband.

There are two examples in about 15 seconds. I could go on for 45 minutes. I do not think you are going to let me do that.

Economic Action Plan 2014 Act, No. 1Government Orders

April 3rd, 2014 / 5:20 p.m.


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The Deputy Speaker Joe Comartin

The member is correct.

Resuming debate, the member for Sarnia—Lambton.

Economic Action Plan 2014 Act, No. 1Government Orders

April 3rd, 2014 / 5:20 p.m.


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Conservative

Patricia Davidson Conservative Sarnia—Lambton, ON

Mr. Speaker, I wish to thank my colleague from Huron—Bruce for sharing his time with me and for his very informative and well-researched speech. It was very good.

I am honoured to add my voice in support of today's debate on Bill C-31, which proposes to legislate key elements of economic action plan 2014.

Economic action plan 2014 would play a key role in strengthening Canada's economy now and in the future, with positive measures that would advance economic progress and prosperity. Today I would like to highlight some of the act's key measures that target the financial sector.

Canadians should be proud of our financial services sector. It plays a fundamental role, transforming savings into productive investment in the economy; facilitating the efficient management of risk; and providing the payment infrastructure necessary for the exchange of goods, services,and financial assets.

Canada's financial system is widely considered one of the most resilient and best-regulated in the world. For the sixth year in a row, the World Economic Forum has recognized our banking system as the soundest in the world. Moreover, five Canadian financial institutions were among the top 20 in Bloomberg's most recent list of the world's strongest financial institutions, which is more than any other country.

Since the start of the global financial crisis, the government has implemented a number of measures to maintain Canada's financial sector advantage. These measures are designed to reinforce the stability of the sector and to encourage competition. Today's legislation proposes new initiatives that would build on Canada's financial sector advantage.

We have Canada's anti-money-laundering and anti-terrorist-financing regime. This measure, as I have just said, concerns strengthening Canada's anti-money-laundering and anti-terrorist-financing regime. Our government is committed to a strong and comprehensive regime that is at the forefront of the global fight against money laundering and terrorist financing and that safeguards the integrity of Canada's financial system and the safety and security of Canadians. Canada's regime remains strong and effective and is consistent with international standards. However, it is important to continually improve Canada's regime to address emerging risks, including virtual currencies, such as Bitcoin, to strengthen Canada's international leadership in the fight against money laundering and terrorist financing.

Following an extensive multi-year review process, our government is proposing various updates, including enhancing the ability of the Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, to disclose to federal partners threats to the security of Canada, consistent with the government's response to the Commission of Inquiry into the Investigation of the Bombing of Air India Flight 182. This measure would help keep Canadians safe and would strengthen our financial institutions against white-collar crime.

Next, let us talk about the co-operative capital markets regulator. While Canada's financial system has been rated one of the soundest in the world, we have a capital markets regulatory system that can and must be improved. At a time when talented people and sought-after capital are flowing across borders as never before, competition in financial markets today is fierce. If we want Canadians to succeed in the global marketplace, we need to continually improve our system. Critics of the current system believe that it is overly complex, inefficient, and a barrier to foreign investment in Canada, and they are right. That is why, last September, our government and the Governments of British Columbia and Ontario agreed to establish a co-operative capital markets regulator. In fact, Terry Campbell, president of the Canadian Bankers Association, applauded today's move by the Governments of Canada, British Columbia, and Ontario to establish a co-operative capital markets regulator, which would offer improved investor protection and greater efficiencies in capital markets in participating provinces.

He further stated that:

We appreciate the federal government's perseverance and leadership on this important economic issue as Canada's current fragmented system puts us out of step with other countries around the world. Today's announcement by these three governments is a significant first step and we encourage other provinces to participate in the proposed system.

Today's legislation includes authority for payments to eligible provinces and territories for costs related to the transition to the co-operative capital markets regulatory system. The co-operative regulator will better protect investors, enhance Canada's financial services sector, support more efficient capital markets, and more effectively manage systemic risk in national capital markets.

Along with British Columbia and Ontario, our government continues to invite all other provinces and territories to participate in the implementation of the co-operative system.

In recent budgets, the government has introduced a number of measures to strengthen Canada's regulatory regime for over-the-counter derivatives consistent with its G20 commitments. Canada's major banks, the largest participants in this market, are subject to effective prudential supervision by the Superintendent of Financial Institutions on their over-the-counter derivatives transactions. Major jurisdictions are deciding whether to let foreign banks transact over-the-counter derivatives in their markets based on Canadian rules or their own rules.

Bill C-31 would amend the Bank Act to create an explicit regulation-making power for banks regarding over-the-counter derivatives. This would facilitate the integration and consolidation of over-the-counter derivatives regulations with the co-operative capital markets regulator when it becomes operational. It would also make it easier for foreign regulators to assess the Canadian regulatory framework in their equivalency determinations, which would benefit Canadian banks when transacting with foreign counterparties.

Our government has taken significant steps to make our financial system more stable, reduce systemic risks, and ensure we have the flexibility and power to support financial institutions during a crisis.

For example, in budget 2008, our government modernized the authorities of the Bank of Canada to support the stability of the financial system. The bank used these enhanced powers to redistribute liquidity to financial institutions, a key element in preserving the flow of credit to Canadians and businesses during the so-called “credit crunch”.

Bill C-31 builds on initiatives such as this by proposing amendments to permit the Bank of Canada to provide banking and custodial services to the Canada Deposit Insurance Corporation.

Lastly, I want to briefly highlight how our government is making Canada an even better place to create and expand a business. For example, promoting the exploration of Canada's rich mineral resources by junior mining companies offers important benefits in terms of job creation and economic development right across the country, including rural and northern communities.

Economic action plan 2014 is building on the responsible resource development plan launched in economic action plan 2012 with new and renewed measures to support further investments in Canada's natural resource sectors. For example, the 15% mineral exploration tax credit helps junior mineral exploration companies raise capital by providing an incentive to investors in flow-through shares issued to finance mineral exploration.

The Association for Mineral Exploration British Columbia noted that it is pleased to see the return of the mineral exploration tax credit in the budget: “Many of our members are having difficulty raising capital in these financially challenging times, and the renewal is much appreciated”.

To conclude, our government will remain focused on what matters to Canadians: jobs and economic growth. Ensuring Canada's economic advantage today will translate into the long-term prosperity of tomorrow.

Economic Action Plan 2014 Act, No. 1Government Orders

April 3rd, 2014 / 5:30 p.m.


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The Deputy Speaker Joe Comartin

It being 6:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

The hon. member for Sarnia—Lambton will have five minutes of questions and comments when we return to this debate.

The House resumed from April 3 consideration of the motion that Bill C-31, An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, be read the second time and referred to a committee, and of the amendment.

Economic Action Plan 2014 Act, No. 1Government Orders

April 4th, 2014 / 10:05 a.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I would like to indicate that I will be sharing my time with the member for Charlottetown.

I must say, it is a bit of a challenge to address such a large bill in only 10 minutes, but I will give it my best shot.

Within the Liberal Party, we have talked a great deal about the middle class over the last period of time. We believe that the government is not doing what needs to be done to assist the middle class of Canada. I would suggest that some of the questions we have raised, and the general of lack of a response from the government, speaks volumes about the way the government treats the middle class of Canada.

I thought it was most interesting yesterday when my colleague from Toronto Centre made reference to median household income. The government really needs to understand how the middle class has been neglected. When we look at median household income, 50% of Canada's population has received an increase of $100 since the government took office. In fact, if we look at the bottom 20%, we are talking about a decrease of $500.

We need to put in proper perspective how difficult it is for our middle class today and why the government needs to give more attention to this issue.

Look at personal debt today. Never before has it been as high, and the government seems to pay no attention. The government has failed to address what are important and critical issues for our middle class.

Health care is an issue all Canadians are concerned about. There is no issue more important in terms of a social service provided by the government than the issue of health care, with the possible exception of some of our pension programs and veterans' services.

What have we seen? The government has dropped the ball in a significant way. It is a government that does not recognize the important leadership role it is supposed to be playing in what is one of the most important issues for Canadians, that being health care.

Why has the Prime Minister not met with his premier counterparts? Why have we not seen an attempt by the government to build on the 2004 health care accord? It was put in place under Paul Martin. Canadians and politicians from coast to coast saw the merits and benefits of that accord.

What has the government done? It has let the clock run down. As of midnight, March 31, that ten-year health care accord has expired, and the government let it go without a whisper. There was no action. There was no indication that it really cared about the future of health care in Canada.

The Conservatives will say that they have increased health care spending to record highs. I will agree that health care spending from Ottawa going to our provinces is at record highs. I will agree on that point. However, it is not the Conservative Party that established the amount of money going to health care today. It was under Paul Martin that the Liberal Party of Canada signed off on the health care accord.

It was the actions of the Liberal Party that allowed the government to claim that we have record amounts of health care dollars going to our provinces.

A member across the floor is heckling with regard to health care cuts during the 1990s. Let me remind the member and the Conservative government that prior to Jean Chrétien, we were allowing the transfer of tax points as a way to finance health care. During the 1990s, I was in the Manitoba legislature, and we were saying that if that was allowed to continue, the federal government would not be financing health care at all in the future. It was Jean Chrétien, during the 1990s, who established the floor and gave the guarantee of health care funding.

No matter how the Conservatives try to rewrite history, former prime ministers Mr. Chrétien and Mr. Martin are the reason we have health care cash flowing.

However, Canadians are saying that they want more than that. They want to ensure that the five fundamental principles of the Canada Health Act are being enforced. They want the federal government to demonstrate leadership on the health care file. There must be standards.

Canadians are concerned about the number of doctors in our communities. They are concerned about wait times in our emergency wards. This is what Canadians want the Government of Canada to show an interest in, but it has not done that. For whatever reason, the current Prime Minister does not believe in the health care Canadians want. I find that most unfortunate. We will continue to push this issue.

Grain has been a very important issue over the last number of months in the Prairies and in my home province of Manitoba. I have had the opportunity to talk a lot about grain in recent months, because there is a crisis on our family farms in Manitoba and in the Prairies.

Imagine having piles of grain in our fields, a lot of it just covered in plastic. Yet we have empty ships in the Pacific Ocean. The problem is that the Conservative government has failed to establish transportation to get that prairie grain to the Pacific Ocean. The people who are paying the price are the prairie farmers, the farmers in Manitoba, Saskatchewan, and Alberta, because the government has not recognized that it needed to take action. Yes, it has taken some action, but the government has fallen short, and it is the prairie farmer who is having to pay the price.

I could talk about citizenship and the backlog in processing. It is absolutely terrible the amount of time it is taking to process citizenships.

On crime and safety issues, the government needs to do more in regard to getting tough on the causes of crime and on preventing crimes from taking place in the first place.

As my time has expired, my last thought will be in regard to the size of the budget and the undemocratic actions of the Conservative government. It is wrong the way the Conservative government is compiling so much legislation and forcing it through. That is the reason I have only been given 10 minutes. The Conservatives are forcing things through on this important legislation, which is most tragic.

Economic Action Plan 2014 Act, No. 1Government Orders

April 4th, 2014 / 10:10 a.m.


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NDP

Mike Sullivan NDP York South—Weston, ON

Mr. Speaker, I listened with interest to my colleague's speech. I too am very dismayed that the bill is being rushed through. After only 25 minutes of debate, the government gave notice to shortchange us on the amount of time we could debate it.

I notice that the budget does not include very much, if anything, on housing. Housing is a critical need in the city of Toronto, in my riding, and in many places across the country.

The Liberals cut federal housing support in the 90s. It was only after Jack Layton convinced Paul Martin to not give corporate Canada a big bonus that we got a little housing money put into the budget in 2005. However, this government has really not done anything for housing. Would the member like to comment?

Economic Action Plan 2014 Act, No. 1Government Orders

April 4th, 2014 / 10:15 a.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, housing has always been of high interest to me. There is so much more we could be doing to deal with housing programs, housing co-ops, lease programs, and home renovations. People, especially within the middle class, do not have the resources to do a lot of the types of changes that are necessary. Some of those renovations are critical. We are talking about water pipes, electrical work, roof repairs, and so forth. There are wonderful opportunities. If only the government would take an interest in that whole area, we could be doing so much more.

The member made reference to the Liberal administration. I was a provincial critic for housing at a time when I was begging the provincial NDP to provide more for infill housing and renovation programs. They too fell short.

If we looked at the history of governments, we would see that the Liberal Party takes a back seat to no other party in terms of providing adequate housing. The reason we have literally hundreds of thousands of housing units across the country is in good part because it was Liberal administrations that provided the seed money to make that happen.

Economic Action Plan 2014 Act, No. 1Government Orders

April 4th, 2014 / 10:15 a.m.


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Blackstrap Saskatchewan

Conservative

Lynne Yelich ConservativeMinister of State (Foreign Affairs and Consular)

Mr. Speaker, the section on creating jobs and opportunities, on page 208, talks about how the government played a key role in addressing the recent economic downturn with housing-related measures in the action plan of 2009. I was parliamentary secretary for human resources at the time, so I know that the $2 billion to create new housing and to renovate existing social housing resulted in more than 16,500 social housing and first nation housing projects across Canada.

Through the $2 billion for the municipal infrastructure lending program, CMHC provided 272 low-cost loans to municipalities for house-related infrastructure projects in towns and cities across the country. Our homelessness partnering strategy for housing first, announced in 2013, was renewed.

I just wanted the member to know that if he read page 208, he would see that we have addressed housing.

Economic Action Plan 2014 Act, No. 1Government Orders

April 4th, 2014 / 10:15 a.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I am glad the member made reference to that. I would ask her to reflect on the issue of infrastructure when thinking of numbers presented in the budget, because it is a very deceptive budget. Let me use infrastructure as an example. On the one hand, the government says that it is doing such a wonderful job with a huge investment in infrastructure. When one reads the budget, what has the government actually done with infrastructure? It has decreased it. If we look at how much money we have spent on infrastructure last year compared to this year, there is a decrease of 80% plus. That is a cut. No matter what one calls it, a cut is a cut. That is what the government has done.

When the government says that it is doing a wonderful job in certain areas, I would remind people that they need to look at it year over year, such as with infrastructure. When the government says that it has actually increased infrastructure funding, it is not true, when we look at it from budget year to budget year. There is an actual cut.

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April 4th, 2014 / 10:15 a.m.


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Liberal

Sean Casey Liberal Charlottetown, PE

Mr. Speaker, I am thankful for the opportunity to speak to this budget implementation bill.

The government has introduced this bill in order to implement the provisions contained in the budget that was delivered just over a month ago in the House of Commons. The budget was the ninth budget from the former minister of finance, the hon. member for Whitby—Oshawa. I would like to take this opportunity to wish the minister well in his future endeavours, and to thank him for his service to Canada and his home province of Ontario, where he served for many years in the provincial legislature. The former minister has earned a great deal of respect on both sides of the aisle, including mine. That does not mean that I agree with everything that has occurred since 2006; actually, it is quite the opposite.

There has been much that has transpired since 2006 that has negatively impacted the Atlantic region of the country, my province of Prince Edward Island, and indeed my home city of Charlottetown, a city that is coined “the birthplace of Confederation”. It is a constituency for which I am immensely proud and honoured to serve.

Canada is an enormous country. Sometimes it is worth remembering just how large it is. It is home to a proud people from diverse backgrounds. We are a country of languages, culture, and geography, but we are bound together by a common citizenship. We have a duty to strengthen the bonds of that shared citizenship, if for no other reason than to enhance our sense of unity. I believe that the Canadian government has a critical role to play in this regard.

When I think of citizenship, I think of rights. I think of the Charter of Rights and Freedoms, the diversity of our languages, our culture, the anthem, and, yes, hockey. For those reasons and many others, we have managed to maintain, in difficult times and in good times, the sense of Canadian pride. I am further reminded of this as a member of the House of Commons, where I see individuals from across the country, from all parties, all cultural and ethnic backgrounds, attempting to do their best for Canada.

When I think of citizenship, I think of shared responsibility. A budget, any budget, whether it is a family budget or a federal budget, is constructed on the basis of one's means, the amount of income one has, and the obligations we all have that require certain expenditures. A federal budget provides insight into the values of the government of the day. It certainly provides insight into its priorities. It gives insight into whether or not it seeks to strengthen the spine of our citizenship. Do we craft a budget to leave out the vulnerable, to pit one region against another, to pit one Canadian against another, or do we seek to strengthen the spine of our citizenship?

The Canadian government is the only government with the obligation to act in the interests of all Canadians and, in the case of the budget, to allocate its collective resources in a way that signals we are all equal and we are all to be treated fairly, knowing that every region and province has particular needs. I am sorry to say that much of what the current government has done since 2006 has hurt people. It has hurt good people in my community and province. Much of what it has done has loosened the bonds of unity and shared citizenship. Allow me to give a few examples of what I mean by that.

I believe it is the role of the Canadian government to provide services that are equal and accessible to all Canadians, regardless of where they reside. That, to me, is fundamental. I reject the notion that the role of government is to get out of the way, that there is no role in levelling the playing fields of opportunity. This idea has seeped into our national discourse over the last eight years.

I reject the notion that we are merely taxpayers and not citizens, implying that the only voices that matter are from those whom the Conservatives call taxpayers. We are more than taxpayers; we are Canadians. There is a large number of fellow Canadians who do not pay income tax simply because they do not make enough money to pay taxes. For example, there are seniors who have spent their whole life contributing to Canada and who now, perhaps in the twilight of their years, do not pay taxes because of their low income. Are they any less Canadian?

Are the poor to be left out of the national conversation simply because they do not fit the definition of the so-called taxpayer? Is that really the central component of our citizenship? Our shared citizenship is much more meaningful than this myopic view. Unlike the members of the current government, I do not want a government that always gets out of the way; I want a government that makes a difference for all Canadians, not just those who are successful in life or who have means.

We have a serious issue in Canada as it relates to the incomes of most Canadians, and the widening gap between those who are doing well and those who are living paycheque to paycheque or worse. We do not knock success. We do not knock the people who work hard and have done well in life. Nor should we knock those who have not had the same opportunities in life, who struggle in poverty, sometimes generational poverty. We should not knock those people, then, who look to government to give them a hand up, not a handout, but a hand up. It is a message that we are all in this together and that when a large swath of our fellow citizens find themselves in a vast and wealthy country with little opportunity or hope, we have a duty to intervene, to help create opportunity.

I am reminded of the great work of community-minded people across the country, and in my hometown, who day in and day out help and advocate for more opportunities for those who are less fortunate. For over two decades, and I include my own party in this regard, we have failed to adopt a real national anti-poverty strategy. Despite the best efforts of the previous government, we did not do enough. We should have a comprehensive anti-poverty strategy, but we will not under the current government, for no other reason than that with the wave of an imperial hand, the Prime Minister of Canada has declared that caring for the poor is a provincial responsibility. It is so myopic and so unwilling to take leadership to make a difference for those in need.

The Conservative government has all but abandoned its role in health care in Canada. In doing so, the Conservatives have abdicated the Canadian government's historic role and responsibility to ensure equal and universal access to health care. That is what I mean by shared citizenship, the programs and the values that drive them and that strengthen our shared citizenship.

Then there is the matter of unemployment insurance, a program that has been decimated by the current government. In the case of my home province, the recent changes that make it harder to qualify have hurt families, caused hardship and worry. In far too many cases, they have left too many Canadians feeling left out, rejected, or, worse, made to feel like the members of the government think they are lazy or cheaters. Is this the type of shared citizenship that Canadians want or expect from their Canadian government? Is this what Canadians deserve?

What about the matter of infrastructure support and nation building? We embrace today, with a sense of reverence and sentimentality, the notion of nation building as reflected in the railroad, a railroad that linked Canadians from coast to coast to coast. When it was not possible to link islands like Prince Edward Island on land, we were linked by ferry. Or, in the case of another significant investment in infrastructure, we are reminded of the Trans-Canada Highway, again, a big and ambitious endeavour that links Canadians. These great projects helped build, literally and figuratively, this country and provide in part that sense of shared citizenship. The current government has cut its build Canada infrastructure fund by 87%. It is astonishing to think that the Conservatives would allow these cuts to occur and then cynically open the spigot for an election campaign.

On Prince Edward Island, we expect that the Canada jobs grant will be exactly like per capita funding for health care, exactly like the civil service cutbacks. The provinces that have less will be penalized and the richer ones will benefit. This has started to play out. We feel kicked to the curb, again. Never in the history of this country have we had such a narrow view of the role of the Canadian government. In the Conservative view, people are on their own. If they succeed, “Great. You're welcome”; if they do not, well that is their fault.

We can do better and we must do better. This budget is an abject disappointment for the people of Prince Edward Island and Charlottetown.

Economic Action Plan 2014 Act, No. 1Government Orders

April 4th, 2014 / 10:25 a.m.


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Blackstrap Saskatchewan

Conservative

Lynne Yelich ConservativeMinister of State (Foreign Affairs and Consular)

Mr. Speaker, I thought it was very kind of the member to acknowledge the best finance minister, probably in the world, that Canada has ever had. I believe it is very honourable that he would mention how because of that finance minister we have one of the best places in the world to do business. We have a stable economy and low taxes. In fact, the overall tax rate on new business investment is the lowest in the G7. We have the soundest banking system, the best net debt to GDP ratio in the G7, and are one of the few countries in the world with the highest credit rating possible.

The member fell short when he spoke about the best finance minister. What he said about infrastructure is false. The finance minister and the Prime Minister made it law that the gas tax is shared; it had never been shared before. It also goes with inflation. I would like the member to please acknowledge that.

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April 4th, 2014 / 10:30 a.m.


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Liberal

Sean Casey Liberal Charlottetown, PE

Mr. Speaker, I will start by saying that I was badly misquoted. I certainly did indicate that the finance minister is to be commended for his service to the citizens of Canada, but his record, unfortunately, is extremely disappointing. I pointed that out in the speech.

In terms of regional disparity and income inequality in this country, those two problems continue to plague us and are particularly prevalent in my part of the country. While the former Minister of Finance is to be commended for his service to Canada and the fact that he has won respect across the aisle, there have been a lot of people left behind, and they certainly include the constituents in my region.

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April 4th, 2014 / 10:30 a.m.


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NDP

Denis Blanchette NDP Louis-Hébert, QC

Mr. Speaker, after only 25 minutes of debate, the government imposed a gag order on one of the most important bills of the year. There was only 25 minutes of debate.

I would like to thank the hon. member for pointing out a few things that I feel are important, including the fact that the budget does nothing to address poverty.

I would argue that nothing is being done for public transit either, and that includes rail transit. I would like to hear my colleague's comments on that.