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.

Economic Action Plan 2014 Act, No. 1

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Mr. Speaker, it gives me great pleasure to speak to the budget implementation act, the centrepiece of our Conservative government's economic agenda for Canada. There are three strong themes running through this budget: one, supporting jobs and growth; two, supporting families and communities; and, three, balancing the budget.

Jobs and opportunities for Canadians remain our government's top priorities. We have seen over a million net new jobs created since the global economic slowdown. This has reduced the unemployment rate to 6.9% and we will do even more to support job creation with this budget.

Measures we are taking include providing $100 million in interest-free loans to apprentices in the trades, $55 million for paid internships for recent graduates, and $75 million for the targeted initiative for older workers program to support older workers who want to participate in the job market. We are also cutting red tape for businesses by eliminating the requirement for 800,000 payroll remittances by 50,000 small and medium-sized businesses. As well, we are launching the new Canada job grant program. Canadians will now be able to qualify for up to $15,000 per person to get the skills and training they need for in-demand jobs.

British Columbia will also benefit directly in this budget as our government will be providing $222 million for world-class physics research in the TRIUMF laboratory at the University of British Columbia.

We have also announced the biggest infrastructure investment in Canadian history, an amazing $70 billion for new highways, bridges, ports and municipal utilities. Approximately $9 billion of those funds will be spent in British Columbia. This investment will keep a lot of trades employed in my community and across the nation, as well as help modernize and improve the efficiency of our economy to help Canada compete globally.

Indeed, our outlook extends past our borders. As a member of the international trade committee, I am an enthusiastic supporter of our drive to diversify and expand our export markets. Our focus on developing our exports has been characterized by the successful conclusion of negotiations for a free trade agreement with the European Union. The benefits Canada will realize from this agreement alone are an impressive $12 billion increase in the Canadian economy. That is equivalent to creating 80,000 new jobs or boosting the average Canadian family's income by $1,000 annually.

As the House knows, we have also reached a free trade deal with South Korea. I know this deal will be a great boost to our agricultural sector initially, but it will also benefit many other sectors in years to come.

However, there are other free trade agreements we are working toward that will continue to grow our economy, expand our exports and create wealth and high-paying jobs for Canadians.

The Trans-Pacific Partnership negotiations could lead to another huge trade deal for Canada and guaranteed access to many of the most populous nations of the world. Indeed, we are already trading with the TPP nations, but a free trade agreement would allow unhindered, duty-free access for Canadian exports. This deal would give a huge boost to industry in my home province.

For instance, in 2012, British Columbia exported almost $4.9 billion in wood and related products to TPP member countries. However, currently, Canada's exports of wood and related products face tariffs of up to 10% in Japan, 31% in Vietnam and 40% in Malaysia. Australia has tariffs of up to 5% on Canadian lumber. Paper and paperboard products face tariffs of up to 27% in Vietnam and 25% in Malaysia.

Eliminating these tariff barriers would significantly support sales of British Columbia's world-class wood and related products in the lucrative TPP market of 792 million consumers, meaning more jobs for British Columbians. Our economic action plan creates jobs directly through spending on infrastructure and it will support the creation of many more through expanded trade opportunities for our exporters.

The second major theme in our budget is supporting families and communities. We are accomplishing this goal through a number of key measures. One, which does not always receive much notice but greatly impacts our quality of life, is the annual federal transfer to the provinces for health care and welfare.

The previous Liberal government devastated our health care system by slashing transfers to the provinces. Despite the very real fiscal challenges we have faced over the past number of years, we have not cut a penny of health care funding.

On the contrary, we have increased funding for hospitals, doctors, nurses and equipment every year since we formed government. This year, my province of British Columbia will receive a record $5.8 billion to fund hospitals, housing and other social programs. Some of those funds will be used to support health care providers in my constituency such as the Peace Arch Hospital in White Rock.

We are also taking action in the budget to protect consumers. One action we are taking is addressing the unjustified Canada-U.S. retail price gap through new legislation. This issue is of particular concern to retailers in my border community as they lose critical business to American retailers which are just a short drive away.

We also committed to recognizing and supporting those who have risked all to defend our freedoms. Budget 2014 provides $2 billion to enhance the new veterans charter in support of serious injured veterans.

The third theme in our budget is balancing the books. Everyone knows that the global economic downturn hit government revenues hard. Before the global recession hit, our Conservative government paid down $37 billion in debt, bringing Canada's debt to its lowest level in 25 years.

Our fiscal responsibility and aggressive debt reduction placed Canada in the best possible position to weather the global recession. When the global recession hit, we made a deliberate decision to run a temporary deficit to protect our economy and jobs.

Many governments around the world are still struggling to tame their national finances. However, through prudent financial management, including trimming the size of our federal government departments and agencies, we are on track to be the first G7 nation to balance our budget.

Overall, since 2010, actions we have taken to make government more effective and efficient are saving taxpayers roughly $19 billion a year.

Canada's net debt to GDP ratio is 36.5%. This is the lowest level among G7 countries, with Germany being the second lowest at 56.3% and the G7 average at 90.2%.

Economic action plan 2014 would bring the projected deficit down to $2.9 billion by 2014-15, and forecasts a surplus of $6.4 billion in 2015-16. That is extremely good news for Canadian taxpayers.

Despite the fact that we have already cut personal and business taxes substantially, a balanced budget will allow more room for tax cuts and debt reduction in the years to come. Already, the average family of four has seen their taxes cut close to $3,400 annually, giving them greater flexibility to make choices that are right for them.

Likewise, seniors have also seen substantial tax relief. Pension income splitting, a $2,000 increase in the age credit, doubling of the pension income credit, reducing the GST from 7% to 5% and other measures have reduced the taxes seniors pay by $2.8 billion annually.

These measures are particularly important to my community, as retirees choose to relocate to South Surrey—White Rock—Cloverdale from all over Canada to take advantage of our temperate climate and scenic coastal beauty.

Corporate taxes have also been cut from 21% to 15%, making Canada an attractive place for international businesses to locate and invest, creating more high paying jobs for Canadians. In fact, since 2006, we have cut taxes nearly 160 times, reducing the overall tax burden to its lowest level in 50 years.

Economic action plan 2014 delivers additional tax relief by introducing the search and rescue volunteers tax credit and acknowledging the valuable contributions ground, air and marine search and rescue volunteers provide to Canadians from coast to coast to coast.

A future budget surplus would allow our government to move forward with promised tax cuts, making the tax burden we carry even lighter and allowing Canadians greater freedom to make their own financial choices to save, invest and spend.

I call on all members to support this budget implementation bill.

[Tyrone Benskin, NDP, Jeanne-Le Ber, QC]

Mr. Speaker, I apologize because I am going to have to go to the dark side again.

I appreciate the speech from my hon. colleague and although there may be some good things in the bill, I have to ask him a question.

The member mentioned the work being done for veterans. This afternoon, and yesterday, a number of veterans, some very senior individuals, were here to protest the treatment of veterans by the government because of cuts and other losses of services to these individuals who, quite frankly, made it possible for all of us to be here.

Would the hon. member say that it is right to be balancing the books on the backs of our veterans?

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Mr. Speaker, when we look at what we have done for veterans, any objective observer would realize that we have invested an enormous amount of money to support them.

In my speech I talked about the $2 billion that is being added to the new veterans charter program for seriously injured veterans. However, overall, our government has increased spending on veterans' services by $4.6 billion.

In addition to that, I would draw to the member's attention that the all-party committee that addresses veterans' care has also made additional recommendations to the government, which are also being considered.

There is no doubt that the care of veterans is a priority for Canadians. Certainly those veterans within my community are well aware of that.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I have heard a number of the member's colleagues talk about the amount of money the government is investing in infrastructure. They keep on saying “record amounts” of infrastructure dollars are going into infrastructure over the next 10 years. I am looking for the member to acknowledge the facts.

The fact is that the vast majority of the money the government keeps referring to is not going to be spent until well after the next federal election. Then, when we look at the infrastructure dollars that will be spent this year, it is a substantial decrease from what it was in the previous year.

Would the member not agree with those facts?

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Mr. Speaker, again, I know my colleague was not here when the previous Liberal government had to deal with difficult spending choices. However, the choices it made were devastating for my province of British Columbia. The cuts it made to health care and social transfers were crippling at the time.

Under our government, we have invested substantially in infrastructure that benefits everyone in the community and certainly improves the efficiency within our economy. The historic 10-year agreement that we have put in place for infrastructure is approximately $70 billion, the largest in Canadian history.

Despite the fact that it goes beyond the next election, the government should be credited for thinking in the longer term. Too often governments in this place look for the short-term hits, the short-term wins that will benefit them politically. However, our government has the foresight to look well beyond the following election to do what is best for Canadians in the long term.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, it is a pity that we are still having this debate under a time allocation motion. Once again, we have an omnibus bill. We have heard this tune before, it seems to me. It is still the same old story: time allocation motions and omnibus bills are imposed on us.

I do not know how this is seen elsewhere, but in my riding, my constituents are fed up with this way of doing things. I cannot condemn it strongly enough.

Let us go back to the budget itself. What is a budget for a government? As we know, one of Parliament's main functions is to vote on a budget. A budget sets specific directions for a country.

However, I am beginning to question that. What do we have in this budget? Do we have a vision for the future, structural projects, or something to get us excited about the future? No. Does it offer any hope to the unemployed, whose number has increased by more than 300,000 since 2008? No. Does it offer any hope for investments in social housing? No. Does it offer any hope of reducing inequalities between Canadians? The answer is no, seeing that Canada's Gini coefficient is increasing. Are we going to reduce tax evasion? Once again, the answer is no. Is this government working to improve Canada's brand image abroad? Not at all.

For example, the next Universal Exposition will be held from May 1 to October 31, 2015, in Milan. Italy invited all United Nations member states to attend, and 144 have confirmed their presence. Did Canada say it would be there?

[An hon. members]

I suspect not.

[Denis Blanchette, NDP, Louis-Hébert, QC]

My colleague is right. The answer is no. Twenty million people are expected to attend the exposition. The theme, which is in line with Canada's reality, is “Feeding the Planet, Energy for Life”.

Can Canada play an important role internationally in these two sectors? Yes. Are we going to be there? No, and that is a real shame.

As it happens, next week is Tourism Week in Canada. What is the government doing to promote tourism internationally? Nothing. I sometimes wonder whether the government is afraid of competition in the tourism industry. Does it want to compete in the tourism industry?

Even though we agree that private businesses should take care of various kinds of tourism in each of our ridings, we know that governments compete to attract tourists to their country. That is how it works.

Has the Minister of State for Tourism, the member for Beauce, done anything about this recently? I do not think so, and it shows.

The Tourism Industry Association of Canada is currently lobbying MPs in an effort to attract more Americans. Imagine that. The tourism industry is pretty big, after all. It is an $84-billion industry that accounts for 610,000 jobs. We can do better.

For a long time now, international tourism has been tapering off. Ten years ago, domestic tourism accounted for 65% of revenues, but now it is 80%.

According to the OECD, Canada's ability to attract international tourists has waned. We dropped from 7th to 16th globally, and we are still losing steam. Those numbers are from two years ago. That is unacceptable.

Across the way, they say we need to balance the budget. There are two ways to do that. They can cut and cut, and the Conservatives sure know how to do that, but they can also boost revenue. We have reason to believe that tourism can help with that. However, it does not look like the government is very interested in boosting revenue.

There are other issues to talk about too.

For example, is anyone talking about clean energy? Is there a vision for the future? What about transportation, housing and energy? How do we see ourselves in 10, 20 or 30 years? What type of society will our children live in? Maybe it will be a society with electric cars, and wind or solar energy. European countries such as Germany and Spain, among others, and even Asian countries such as China and the Philippines, are investing heavily in solar energy. We must diversify our energy sources and come up with a clean energy strategy. It is important.

It is not good enough to say, as the Minister of the Environment has been saying for the past few days, that given that Canada is responsible for only 2% of greenhouse gases, we really do not have to do much. Things have already been pushed to the limit and that 2% is much greater than the proverbial straw that broke the camel's back.

As a wealthy, leading-edge, and technologically advanced society, we have to make the most of our knowledge and capacities to show leadership on the world stage and provide technologies that produce cleaner energy. Are we working on that? Not at all.

According to economists, this budget will slow down growth in a fragile context. There is some recovery, but it is weak. Everyone says so. This is not new. Is there anything in this budget to help those who are looking for a job? Today, there are 300,000 more people looking for work than there were in 2008. There are currently six unemployed people for every available job. We can do better than that.

Is there anything in this budget to improve everyday life for average Canadians? Are we helping our constituents? We have to wonder. Are retirees well served by this budget? Not really, and they might even lose their postal services shortly. I know that Canada Post is a crown corporation, but I would like to point out that the government does get dividends from it. Perhaps we could do something to ensure that seniors get their mail delivered at home. It would be easy to do.

Will we still have quality service at the CBC in a few years? Is there something for that? No. The promise in this budget is that an essential tool for the identity of this country is being taken apart piece by piece. Let me remind you that the funding we provide to the CBC per year and per capita is one-third of the average of the funding that so-called developed countries provide to their national broadcasting corporations. Are we going in the right direction with this budget? I do not think so.

Finally, what are we doing to prepare our collective future? I am thinking of our young people here. I am thinking of research and education. In this budget, do we see any capacity or willingness to invest in basic research? The answer is no. Why is basic research important? Because it is the first step in developing innovations that make our industries, our companies and our small and medium-sized businesses competitive. We need basic research and we need to train our students.

Speaking of training students, have we actually seen an increase in funding for post-secondary education anywhere in the budget? I have not seen one. If we want the future to be better for our children, we must invest in basic research and in post-secondary education so that we can get the wheels turning and start on our way to innovation.

[Jean-François Larose, NDP, Repentigny, QC]

Mr. Speaker, I thank my hon. colleague for his excellent presentation.

The government is doing nothing about the closure of Electrolux in my riding; it is cutting the $40,000 that used to go to the Marché de Noël every year, a Christmas market with economic spinoffs to the tune of millions of dollars; it is raising the price of stamps to $1, even though it is already difficult to deliver the mail; and it is reducing services once again.

What does my colleague think about the government's logic?

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, governing means looking ahead and making decisions.

First, however, we must anticipate the long-term consequences of each decision in order to determine whether the effects will be positive or negative. I realize that it is not a perfect system. However, abandoning our manufacturing industry and our local initiative is a very poor message to be sending to people.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I would like to pick up on one of the member's colleague's questions in regard to the issue of postal rates and the manner in which Canada Post has made the decision, which is going to have a very profound negative impact on literally thousands of Canadians from coast to coast to coast. It is also in regard to the lack of involvement, whether it was by the House of Commons or by Canadians as a whole. We have a crown corporation that has been with us since Confederation that is taking us in a direction I believe the majority of Canadians do not want us to go.

I wonder if the member might reflect on the manner in which we are passing this bill under time allocation and how it would be passed with a number of other bills that would be brought in. It is the issue of process, which would also apply to the manner in which Canada Post is changing its services for Canadians.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I thank my colleague for his question.

The reply deserves an entire speech. Actions have their consequences and they are determined by our ability to provide Canadians with the best. In some cases, that means having a real democratic debate and coming up with better legislation. It also means evaluating the consequences of our actions, especially in the case of Canada Post.

Did the management at Canada Post evaluate all the options before committing hara kiri in its own marketplace by increasing the price of stamps and cutting services? SMEs and people living in downtown areas are not happy.

Sometimes we forget community groups who occasionally send mail to their members. For example, the history societies in my riding send thousands of letters. The revenue that those thousands of stamps bring in might now be lost, and that is just the history societies in my riding. I am not even talking about the other community groups. If you multiply that by 308, the losses in revenue quickly add up to millions of dollars, all because they do not know how to make proper decisions or plan for the 21st century.

[Kerry-Lynne Findlay, Conservative, Minister of National Revenue]

Mr. Speaker, under the leadership of Prime Minister Harper, jobs, the economy, and helping—

[The Acting Speaker, Barry Devolin]

I remind the hon. member she cannot refer to other members, including the Prime Minister, by their given names.

[Kerry-Lynne Findlay, Conservative, Delta—Richmond East, BC]

My apologies, Mr. Speaker.

Jobs, the economy, and helping families remain the priorities of our government.

We met the challenge of the global economic crisis head on with our economic action plan. We paid down debt, we cut taxes to stimulate job growth, and we rejected opposition demands for job-killing higher taxes.

Canada continues to enjoy a stellar economic record and to receive international recognition for our economic leadership. This is why I stand in this House today in full support of the measures contained in the 2014 budget implementation act.

This government, through our economic action plan, has created the economic environment that allows Canadians businesses to prosper and Canadian citizens to benefit from a high standard of living. That is the sentiment shared by many. Globally recognized authorities, from the OECD to the International Monetary Fund, have ranked Canada as one of the best countries in the world to do business. In fact, they expect Canada to be among the strongest-growing economies in the G7 over not just this year but the next.

International business press, including Forbes Magazine and Bloomberg News, is equally large in its praise for Canada's success in creating a climate conducive to job creation. Indeed, the facts speak for themselves. There are over one million more Canadians working today than during the worst part of the recession. That is the best job creation record of any G7 country during this period.

Of course, there is ongoing uncertainty in the global economic environment. That is why we must continue to encourage job creation and foster economic growth, the twin pillars of the economic action plan since its inception in 2009, while remaining on the road to a balanced federal budget in the coming year.

We must, and we will, continue to improve the conditions for business investment. We will keep taxes low and reduce the tax compliance and regulatory burden on businesses so they can focus on jobs and economic growth.

There are over 20 tax measures in the budget that would improve the fairness and integrity of Canada's tax system. Today I want to highlight again in this House those measures that address what our government is doing to reduce red tape.

Economic action plan 2014 announced that we would be cutting red tape for employers by reducing the maximum number of times employers need to send source deduction payments to the CRA. These are deductions companies withhold for their employees' income tax, Canada pension plan contributions, and employment insurance premiums. This would reduce the maximum number of payments businesses are required to prepare and submit to the CRA. This action would eliminate more than 800,000 payroll remittances for over 50,000 small and medium businesses. Currently, if employers withhold an average of $15,000 to $50,000 in deductions monthly, they are required to remit deductions up to twice each month. Larger organizations withholding monthly deductions of $50,000 or more must remit them up to four times each month.

These changes are being made on the recommendations of small and medium independent businesses, the drivers of our economic growth, with whom we dialogue often. It would help these entrepreneurs spend more time serving their customers and growing their businesses.

In a country like ours, where 98% of our companies have fewer than 100 employees, the effect of red tape on our economy is significant.

We also intend to launch a liaison officer initiative pilot project to improve compliance within Canada's small and medium business community. Firms will be provided with information and the support they need, when they need it most, so that they meet their tax obligations right from the start.

This will help them avoid costly and time-consuming interactions with the CRA, freeing up businesses to focus on doing business.

We are reducing the paper burden for companies big and small by making improvements to CRA service delivery. For instance, authorized company tax representatives, such as accounting firms, would be able to submit an electronic authorization request to the CRA instead of filing paper forms.

This January, I announced the registration of the tax preparers program. Tax preparers play a key role in the tax system. Last year the majority of adjustments were in the $2,200 to $6,000 range, in other words, relatively minor adjustments due to inadvertence or simple mistakes, but from the CRA's perspective, this is significant and must be addressed. We have five million small and medium enterprises, one-third of which have simple, easy-to-correct errors in their returns.

In Canada, about 70% of individuals and business taxpayers use the services of a tax preparer to help them deal with their tax affairs. The CRA would be able to help tax preparers and taxpayers through more focused support and shift our focus from one of auditing after the fact to assisting in compliance from the beginning.

As of October 2014, businesses will be able to update their banking and direct deposit information online. October is also when the first free online option for paying taxes will be available for business owners registered with My Business Account. As well, a detailed payment history for all of their accounts will be available in one secure and convenient place.

Last year we introduced manage online mail for Canadian businesses. Business owners and representatives can now choose to receive notices of assessment and reassessment electronically as well as some correspondence for their corporate, payroll, and GST accounts.

People can also ask the CRA specific tax-related questions online through the my business account inquiry service. The CRA will not only answer the question online, but more important, it will stand by its written responses. This means that when making key business decisions, people will have the critical answers solidified in writing and the certainty that comes with that.

When people want to talk to a live person, we have improved the CRA's telephone inquiry services for the business community. All CRA business inquiry agents must now identify themselves to the caller using their first name and number and the regional suffix. This agent ID policy ensures a consistent experience for callers and makes it easier for taxpayers to provide feedback on CRA's services.

In our efforts to reduce red tape we are continually engaging Canada's business community, listening to its concerns, and acting on its recommendations.

In addition to our red tape reduction initiatives, I could go on highlighting a long list of new tax credits in this year's budget. They range from recognizing the contributions of volunteers who conduct search and rescue efforts, a very welcome initiative, to expanding the list of eligible medical expenses, and enhancing the adoption expense tax credit. These initiatives would make a meaningful difference in the lives of hard-working Canadians.

I am extremely proud to be helping to implement the 2014 economic action plan, which will help us to balance the budget and generate $9.1 billion in additional savings over six years.

I urge my colleagues from all parties to join us in passing this important legislation so we can continue on our path toward job creation and economic growth across the country.