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

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, we have heard of shortfalls in social housing and of infrastructure that has been delayed for decades, particularly in Quebec. We have been seeing the news reports of the problems in infrastructure there. We can take it back to the government's obsession with corporate tax cuts. It took $30 billion out of our country's annual budget in its first couple of years in government. Over the last four to five years, if we had had that revenue and had it going forward, social housing would be something we could address.

The question I have is about the relationship between the municipalities, the provincial governments and the federal government. It seems to me to be toxic. When they try to come together on various issues, it does not seem to be working. What is the member's experience, relative to opinions in her area, with regard to how the federal government does not work properly with other levels of government?

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

Mr. Speaker, I thank my colleague for his question. He is getting at the crux of the problem when he talks about the toxic relationships—which is an interesting word to use—or the lack of relationship between municipalities in Quebec and the federal government. This is quite evident here; the issue of social housing and the Conservative government's lack of commitment is only one of many examples.

As I mentioned earlier in my speech, the government made promises to Laval about building a large arena to serve a number of community and sports organizations in the city. The people had been waiting for that for years. The federal government promised to invest with the building Canada fund and to pay for its share of the project. Unfortunately, the Conservatives abandoned the idea. That is unbelievable and it is just one example.

As my colleague mentioned, there are infrastructure problems all across the country. Montreal has a glaring infrastructure problem, in both the inner areas and outlying suburbs. A few years ago, the de la Concorde overpass unfortunately collapsed onto highway 19 in Alfred-Pellan, killing about 10 people. Another overpass collapsed in Laval, the Boulevard du Souvenir overpass, which is a little further west in Laval. We have serious problems and investments are needed. We need the Conservative government to sit down and talk with the Federation of Canadian Municipalities to come up with solutions to this problem.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, it is a pleasure to rise today to address the House on Bill C-31, the budget implementation act for budget 2014.

Life is a people business, and nowhere is that a truer maxim than in politics. A number of years ago, I decided to stand for election for reasons that most of us did, and that was to make the country a little bit better for everyone.

The last five years have been challenging for our country, even though we have weathered the recent economic storms relatively well since 2008.

Much has been made of the fact that budget 2014 puts the federal budget on a clear path to balance next year, and we in the government are very pleased and proud of that fact. However, I would like to highlight some other measures that Bill C-31 implements.

This budget implementation legislation makes improvements to the lives and economic well-being of Canadians from coast to coast. That, after all, is why we are here. We might disagree with each other on how to improve the lives of Canadians, but we all want to make things better, regardless of where we sit.

For my part, I know that budget 2014 and the measures in it would make a difference in the lives of Canadians, and particularly in the lives of my constituents. I would like to highlight some of these measures in Bill C-31 that would help our families and communities.

We all know that we face an aging population situation and that with aging comes health-related challenges. Budget 2014 expands health-related tax relief under the HST/GST and the income tax system to reflect the health care needs of Canadians. We are committed to ensuring that the tax system is representative of the changing nature of the health care system and the health care needs of Canadians.

In economic action plan 2014, the list of eligible expenses under the medical expense tax credit would now include costs associated with service animals specially trained to assist individuals with severe diabetes. These are diabetes alert dogs.

Additionally, budget 2014 would provide further tax recognition of costs associated with specially designed medical therapies and training. These costs would be addressed by expanding the current HST/GST exemption for training that is specially designed to aid those Canadians coping with a disorder or a disability. Budget 2014 would now exempt services for designing these particular training plans. The amounts paid for the design of an individualized therapy plan would also be considered an eligible expense for income tax purposes under the medical expense tax credit.

The services of acupuncturists and naturopathic doctors would also be exempted from the GST/HST.

Furthermore, eyewear specially designed to electronically enhance the vision of individuals with vision impairment that was supplied on the order of a physician or other specified health professional would also be added to the list of GST/HST-free medical and assistive devices.

These changes to the medical expense tax credit would apply to expenses incurred after 2013. While these measures are not large or expansive, they are recognition by our government that the expenses of Canadians are changing, and the tax system needs to change with them.

Another measure for budget 2014 I would like to highlight is the increase in the maximum allowed for the adoption expense tax credit to help make adoption more affordable for Canadians.

There are many Canadians out there who would make phenomenal parents, but for whatever reason, they are not able to have children. Equally, there are many children out there who are put up for adoption and need loving families, parents, and safe homes to go to, since for whatever reason, their biological parents are simply not able to take care of them properly.

I believe that no one would argue with me that we want all Canadian children to be in safe, loving homes with parents who care for them and their well-being. For some Canadians, adoption is the only road to parenthood. As such, I believe that we should help Canadians adopt children, and that is what budget 2014 does.

The adoption process however, can be costly for potential parents. Currently the adoption tax expense credit provides a tax credit of up to a maximum of $11,774 in expenses per child for 2014. To increase tax recognition of adoption-related expenses for things such as adoption agency fees and legal fees, budget 2014 would increase the maximum amount of the credit to $15,000. This change would apply to adoptions finalized after 2013. Normal indexation would apply to the new maximum amount for taxation years after 2014. By increasing the adoption expense tax credit to $15,000, we would be providing further tax relief for Canadian parents who want to adopt and would be recognizing the unique costs that arise from adopting a child.

Budget 2014 would also help parents in another critical area. It would enhance access to sickness benefits for claimants who receive parents of critically ill children and compassionate care benefits. Sometimes, when Canadians get sick, they might be unable to care for family members who are seriously ill or injured.

Our government is committed to ensuring fairness in employment insurance programs, to make sure they continue helping Canadians when they need it most. Budget 2014 would build on previous enhancements to the EI sickness benefits for parental benefit claimants, and would commit $2.4 million over two years and $1.2 million ongoing per year to enhance access to sickness benefits. This would be for claimants who receive parents of critically ill children and compassionate care benefits. These enhancements would allow claimants who are temporarily away from work to take care of a critically ill or injured child or gravely ill family member at significant risk of death to temporarily suspend their claims in order to access sickness benefits should they themselves fall sick or become injured. This is good, common sense change and speaks to the compassion of Canadians for one another.

Last, I would like to speak to another measure from budget 2014 that demonstrates the care Canadians have for one another. Speaking from personal experience, I know that Canadians have a great volunteer spirit, and that spirit is very evident in the great city of Edmonton, which I have the honour to represent in this House. I have been privileged to live in many areas of Canada, and I have never seen a city with the volunteer spirit that Edmontonians demonstrate every day and that results in Edmonton staging many large international events with spectacular results.

Canadians volunteer for many great causes, and the one that many people volunteer for is search and rescue. These Canadians volunteer in this role on the ground, in the air, and on the water.

In budget 2011, our government introduced the volunteer firefighters tax credit to recognize the important role that volunteer firefighters play in many Canadian communities. Search and rescue volunteers are another group of quiet heroes in Canada. They put themselves at risk to serve their communities by volunteering for ground, air, and marine search and rescue groups. They do this in support of the Canadian Coast Guard, police, and other agencies. These volunteers are a very important part of the emergency response system, and they provide a source of well-organized, well-trained, and well-equipped volunteers in the event of a natural disaster or large-scale emergency.

To honour these quiet heroes, budget 2014 announced a 15% non-refundable search and rescue volunteers tax credit on an amount of $3,000 for ground, air, and marine search and rescue volunteers. This credit would be available to search and rescue volunteers who perform at least 200 hours of combined eligible search and rescue services and volunteer firefighting services in a given year. They would be able to choose between the volunteer firefighters tax credit and the new tax credit. Those search and rescue volunteers who currently receive honoraria in respect to their duties as emergency service volunteers would also be able to choose between the new tax credit and the existing tax exemption of up to $1,000 for honoraria. This measure would apply for the 2014 tax year and subsequent years, and it is an excellent way to honour the heroes of our local communities.

All these measures I have mentioned would help Canadians and their families. They would make life a bit easier and a bit less expensive, help Canadians become parents, and honour our local heroes. These measures reflect the values of Canadians: compassion, caring for others and those in need, and volunteerism, to name a few. These are values that should be reflected in our federal budgets, and budget 2014 does exactly that. It reflects truly Canadian values.

It has been an honour to address the House on such an important piece of legislation as the budget implementation bill. I look forward to answering questions from my colleagues on both sides of the House, and I truly look forward to casting my vote in favour of Bill C-31.

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

Mr. Speaker, I thank my hon. colleague for his speech.

This bill contains dozens and hundreds of pages on various pieces of legislation. Does my colleague not find it incredible that so many laws will be affected by a budget implementation bill, laws that have absolutely nothing to do with implementing the budget? The Conservatives have already done the same thing over the past few years. Once again, they have introduced the same kind of budget implementation bill.

As a parliamentarian, does he not think that muzzling other MPs and limiting the time for debate constitutes an attack on democracy?

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, what I find unbelievable is that some members, not necessarily this member, have difficulty grasping that budgets and government responsibilities are extremely complex and wide-ranging.

With respect to muzzling, we have been here listening to debate today and other days, and I have not heard or seen anybody being muzzled. In fact, if they would talk about things that are actually in the budget implementation bill, rather than their concerns for political points, then we might all get a bit further and they might actually get more of their points put out, instead of just complaining about it.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, my question is about the search and rescue part of the member's speech. He mentioned that these measures in the budget implementation bill are for Canadians and their families. Clearly when there is a non-refundable search and rescue tax credit, there will be family members who are doing search and rescue, putting in those volunteer hours, and helping to keep their communities safe, but they may not have enough other income to qualify for a tax credit.

I would ask the member this: given the importance of this activity, why would he cut out the Canadians and families who are not able to claim a tax credit because of their low income?

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I thank my colleague for thinking that I have the power to cut things out, which of course I do not. It is a team effort.

Simply put, there are a lot of tax credits. We have brought in many tax credits over the last number of years. This is just the latest one. They are all designed to give some financial relief to those who contribute to their communities in a variety of ways and who make taxable income. That income can then be reduced based on the wide variety of tax credits we have brought in.

Every measure does not apply to every member of society. There is a balance across the board. That is why we have done things like taking a million Canadians completely off the tax rolls. It is not that every measure has to apply to every Canadian. That is not the way it works.

[Pierre Nantel, NDP, Longueuil—Pierre-Boucher, QC]

Mr. Speaker, I would like to ask my colleague whether he really thinks that in a bill that is 362 pages long and one-inch thick it is really reasonable to include a pile of legislation and subjects that have nothing to do with one another. Can he really look me in the eye and say that he thinks that this is appropriate?

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, looking my colleague in the eye, through you, I would repeat that the business of government, of finance, of budgets is very complex and interrelated. Although some things may not seem budget-related to him or to other members, virtually everything the government does is budget-related in some fashion. Virtually everything we do or anything any government does is an attempt to find ways to do things better and more efficiently. That may not have a direct dollar figure on it in a budget bill, but there is a connection and an interrelationship between all of those things the government does.

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, it is a pleasure to speak to this bill. Clearly, as you know, the Liberals will vote against it.

I will start with the temporary foreign worker program. Three hours after question period, I moved a motion in the House that, unfortunately, did not receive unanimous consent. However, that motion reflects our point of view on this program.

What I tried to do in this motion, which did not receive unanimous consent, was to propose that the section of the budget implementation bill having to do with fines being imposed on those who break the laws regarding temporary foreign workers be removed from this bill and passed immediately through all stages of the process, thereby becoming effective immediately. This would provide another tool in the kit for the government, which is seeking to punish, so to speak, employers who are breaking the rules on temporary foreign workers.

The government did not like that. I guess it does not like the principle of breaking up its huge omnibus bill, no matter how much sense that might make. However, this would have given the government the tools right away to deal with this problem. This illustrates the more general point that while we in the Liberal Party agree that the temporary foreign worker program should exist, we also believe that the government has been incredibly irresponsible in allowing the number of temporary foreign workers to more than double, from approximately 150,000 or 160,000 people when the Liberals were in government, to well over 300,000 today.

As we know from examples involving my former employer, the Royal Bank, and also a mine in British Columbia, there have certainly been abuses of this program. Now the government has created its own mess and is trying to fix it. Liberals believe that many thousands of jobs that have been occupied by temporary foreign workers should have gone to Canadians in need of work. That is becoming more evident. It was evident from the public response to the situation involving McDonald's in Victoria.

We think the Conservatives should never have gotten into this in the first place. However, now that they have a mess to clean up, we think they should have accepted our motion so they could have imposed fines right away, rather than waiting weeks and weeks until this massive budget implementation bill finally passes through both Houses and becomes law.

According to what I have heard, the NDP wants to abolish the temporary foreign worker program, which would be really stupid if that were true. That shows that the New Democrats' attitude and economic policy are devoid of any common sense.

Experience has shown that in some sectors, including agriculture, this has been a useful and vital program for decades. There is absolutely no question that we want to keep this program. However, under the Conservatives, the numbers have shot up irresponsibly. Therefore, we want to put limits on the program, not abolish it.

The danger of this program is that it risks taking us away from Canada's long-held immigration system, where people come in with their families, become citizens, have children, vote in elections, and have grandchildren. That is how most of us, if not all of us, came to this country. By having massive numbers of temporary foreign workers, who are not in many cases qualified to be here but are taking other Canadians' jobs, we are gravitating toward a Europe-style, a Switzerland-style guest worker system, where people come in for a couple of years and then are shipped out again. That is not and never has been the Canadian way, but I fear that is the way the government is taking us.

I would like to spend the rest of my limited time on two other immigration-related issues.

The first issue is the immigration investor program. I believe there are approximately 20,000 applicants to the program who would be unceremoniously dumped by this bill. Yes, they would get their fees back, but in many cases they have been waiting many years to come into this country on the basis of this program. All of a sudden they are cut off at the knees and have absolutely no possibility of coming to Canada under the terms of that program. It is perhaps coincidental, but it is a fact that a very high proportion of these people happen to be from China. Naturally, they are not at all happy about this development.

I would be the first to acknowledge that the program, which I believe was brought forward in the Mulroney years, was imperfect. It had deficiencies and things that should have been fixed. Instead of $800,000, which the people get back, maybe it should be $8 million. Maybe there should be a requirement for real job creation. Maybe this, maybe that. We do not have the resources of the government to design a precise program.

My point is that rather than cutting these people off at the knees and throwing them out the window, the government should first develop an improved version of the program and give those who were already applicants in the old program the option of transferring to the new program. That would be fair. That would be better for Canada, because those people are likely to make a major contribution to the country, especially if the requirements imposed on them are more onerous and more favourable to this country.

Therefore, rather than proposing a little pilot program, which the Conservatives do not define and for which we have no idea of when, if ever, will happen, the government should have done its homework first and reformed the existing program, giving the applicants to the old program the opportunity to apply to the new program. That would be the way to move our system forward in an efficient and effective manner, primarily for the sake of Canada but also for the sake of those who waited many years and spent many dollars to apply to come to this country.

Finally, I will speak to another provision in the bill. This provision would extend to 20 years, rather than 10 years, the time that has to elapse before a newcomer is eligible for GIS.

The poorest seniors will now have to wait 20 years instead of 10 in order to be eligible for this benefit.

This is a subset of a more general issue. The government has decided that instead of sponsors being required to look after their parents for 10 years, they will have to look after them for an extended period of 20 years. In today's volatile economy, it seems to me that this is an unreasonable imposition. One does not know over a period of 20 years whether one will lose one's job or whether other unfortunate things might happen.

The bottom line is that in imposing these changes, the government is rationing the number of parents and grandparents to be allowed into the country according to the income and wealth of those who are applying. I think it is a very restrictive approach and I do not think it reflects the long, positive Canadian traditions in the area of immigration.

[Jason Kenney, Conservative, Minister of Employment and Social Development and Minister for Multiculturalism]

Mr. Speaker, I am always amazed by the vast ignorance demonstrated by the member opposite on these matters.

The member just suggested that this government created the temporary foreign worker program. Let me be clear. What we call the temporary foreign worker program is essentially issuing work permits to foreign nationals coming to Canada. This has always existed.

In fact, the particular dimension of the program to which the member objected—namely, permitting general low-skilled workers or foreign nationals with permits to work, for example, in the restaurant business—was introduced in 2004 when he was in the cabinet. He sat around the cabinet table to introduce the general low-skilled stream about which he is now complaining.

We have not broadened the policy framework of the TFW program since coming to office. To the contrary, as any of the industry groups will tell him, we have constrained those parameters. As the president of the Canadian Federation of Independent Business says, the worst thing our government has done is to make it so difficult to bring in TFWs.

The flow of TFWs coming to Canada has gone from 0.7% of the workforce to 1.1% of the workforce since 2005. In other words, 99% of people in the Canadian workforce are either citizens or permanent residents. We have not changed that in any meaningful way.

Finally, on the GIS, is the member suggesting that Canadian taxpayers should be responsible for the social costs of bringing seniors to Canada who have never lived here, paid taxes, or worked in the country? Certainly Ruby Dhalla--—

[The Acting Speaker, Bruce Stanton]

The hon. member for Markham—Unionville.

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, with respect to the second question, the answer is not at all, and that is not at all what I said.

The minister can use all the vitriol and negative language he wishes, but he really misses the point. It is not so much that I am the one who is devoid of facts or knowledge; it is him, by virtue of some of the things he just said.

The point is not the point he makes. The point is that under a Liberal government, as I said in my speech, we had approximately 150,000 people. Contrary to the NDP, which wants no temporary foreign workers, we are conscious of the need for them in agriculture and other high-skill areas. We have nothing against the program in principle.

What we do object to is the irresponsible doubling of the number of such people, more than doubling, by the Conservatives, under the leadership of the minister, and bringing in people wildly inappropriately and causing scandals in a number of well-known companies. Now they have cooked their own stew, and he is doing his best to extricate himself. If he had accepted the motion I proposed—

[The Acting Speaker, Bruce Stanton]

Order, please. We need some time for other members.

The hon. member for Acadie—Bathurst.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, what the member for Markham—Unionville just said is not true. It is not true that the NDP is opposed to the temporary foreign worker program. What the NDP is opposed to, and we have often spoken to the minister about it, is the possibility that temporary foreign workers could be hired instead of our workers, who want to work and who are available to work. They should be hired before foreign workers.

However, let us not forget that under the Liberal government, people who worked in Prince Edward Island's agriculture industry for six months and then went home to their country for six months never became permanent residents in Canada. They wanted to stay here in Canada. That was under his government in 2004 and 2005. The same thing is happening here today.

Is the member saying that we need to bring in temporary foreign workers when unemployment is at 16% and there are people who want to work and to receive the training they need to get jobs in Canada? Is that what he is saying?

Is it not true. The NDP is not against temporary foreign workers. However, we are opposed to the idea of having them come here when our workers have no work. I would like him to acknowledge that before the House of Commons.