Bill C-4 (Historical)

Economic Action Plan 2013 Act No. 2

A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it
(a) increases the lifetime capital gains exemption to $800,000 and indexes the new limit to inflation;
(b) streamlines the process for pension plan administrators to refund a contribution made to a Registered Pension Plan as a result of a reasonable error;
(c) extends the reassessment period for reportable tax avoidance transactions and tax shelters when information returns are not filed properly and on time;
(d) phases out the federal Labour-Sponsored Venture Capital Corporations tax credit;
(e) ensures that derivative transactions cannot be used to convert fully taxable ordinary income into capital gains taxed at a lower rate;
(f) ensures that the tax consequences of disposing of a property cannot be avoided by entering into transactions that are economically equivalent to a disposition of the property;
(g) ensures that the tax attributes of trusts cannot be inappropriately transferred among arm’s length persons;
(h) responds to the Sommerer decision to restore the intended tax treatment with respect to non-resident trusts;
(i) expands eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of biogas production equipment and equipment used to treat gases from waste;
(j) imposes a penalty in instances where information on tax preparers and billing arrangements is missing, incomplete or inaccurate on Scientific Research and Experimental Development tax incentive program claim forms;
(k) phases out the accelerated capital cost allowance for capital assets used in new mines and certain mine expansions, and reduces the deduction rate for pre-production mine development expenses;
(l) adjusts the five-year phase-out of the additional deduction for credit unions;
(m) eliminates unintended tax benefits in respect of two types of leveraged life insurance arrangements;
(n) clarifies the restricted farm loss rules and increases the restricted farm loss deduction limit;
(o) enhances corporate anti-loss trading rules to address planning that avoids those rules;
(p) extends, in certain circumstances, the reassessment period for taxpayers who have failed to correctly report income from a specified foreign property on their annual income tax return;
(q) extends the application of Canada’s thin capitalization rules to Canadian resident trusts and non-resident entities; and
(r) introduces new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion.
Part 1 also implements other selected income tax measures. Most notably, it
(a) implements measures announced on July 25, 2012, including measures that
(i) relate to the taxation of specified investment flow-through entities, real estate investment trusts and publicly-traded corporations, and
(ii) respond to the Lewin decision;
(b) implements measures announced on December 21, 2012, including measures that relate to
(i) the computation of adjusted taxable income for the purposes of the alternative minimum tax,
(ii) the prohibited investment and advantage rules for registered plans, and
(iii) the corporate reorganization rules; and
(c) clarifies that information may be provided to the Department of Employment and Social Development for a program for temporary foreign workers.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by
(a) introducing new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion; and
(b) clarifying that the GST/HST provision, exempting supplies by a public sector body (PSB) of a property or a service if all or substantially all of the supplies of the property or service by the PSB are made for free, does not apply to supplies of paid parking.
Part 3 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 3 amends the Employment Insurance Act to extend and expand a temporary measure to refund a portion of employer premiums for small businesses. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including setting the 2015 and 2016 rates and requiring that the rate be set on a seven-year break-even basis by the Canada Employment Insurance Commission beginning with the 2017 rate. The Division repeals the Canada Employment Insurance Financing Board Act and related provisions of other Acts. Lastly, it makes technical amendments to the Employment Insurance (Fishing) Regulations.
Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to remove the prohibition against federal and provincial Crown agents and federal and provincial government employees being directors of a federally regulated financial institution. It also amends the Office of the Superintendent of Financial Institutions Act and the Financial Consumer Agency of Canada Act to remove the obligation of certain persons to give the Minister of Finance notice of their intent to borrow money from a federally regulated financial institution or from a corporation that has deposit insurance under the Canada Deposit Insurance Corporation Act.
Division 3 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to clarify the rules for certain indirect acquisitions of foreign financial institutions.
Division 4 of Part 3 amends the Criminal Code to update the definition “passport” in subsection 57(5) and also amends the Department of Foreign Affairs, Trade and Development Act to update the reference to the Minister in paragraph 11(1)(a).
Division 5 of Part 3 amends the Canada Labour Code to amend the definition of “danger” in subsection 122(1), to modify the refusal to work process, to remove all references to health and safety officers and to confer on the Minister of Labour their powers, duties and functions. It also makes consequential amendments to the National Energy Board Act, the Hazardous Materials Information Review Act and the Non-smokers’ Health Act.
Division 6 of Part 3 amends the Department of Human Resources and Skills Development Act to change the name of the Department to the Department of Employment and Social Development and to reflect that name change in the title of that Act and of its responsible Minister. In addition, the Division amends Part 6 of that Act to extend that Minister’s powers with respect to certain Acts, programs and activities and to allow the Minister of Labour to administer or enforce electronically the Canada Labour Code. The Division also adds the title of a Minister to the Salaries Act. Finally, it makes consequential amendments to several other Acts to reflect the name change.
Division 7 of Part 3 authorizes Her Majesty in right of Canada to hold, dispose of or otherwise deal with the Dominion Coal Blocks in any manner.
Division 8 of Part 3 authorizes the amalgamation of four Crown corporations that own or operate international bridges and gives the resulting amalgamated corporation certain powers. It also makes consequential amendments and repeals certain Acts.
Division 9 of Part 3 amends the Financial Administration Act to provide that agent corporations designated by the Minister of Finance may, subject to any terms and conditions of the designation, pledge any securities or cash that they hold, or give deposits, as security for the payment or performance of obligations arising out of derivatives that they enter into or guarantee for the management of financial risks.
Division 10 of Part 3 amends the National Research Council Act to reduce the number of members of the National Research Council of Canada and to create the position of Chairperson of the Council.
Division 11 of Part 3 amends the Veterans Review and Appeal Board Act to reduce the permanent number of members of the Veterans Review and Appeal Board.
Division 12 of Part 3 amends the Canada Pension Plan Investment Board Act to allow for the appointment of up to three directors who are not residents of Canada.
Division 13 of Part 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to extend to the whole Act the protection for communications that are subject to solicitor-client privilege and to provide that information disclosed by the Financial Transactions and Reports Analysis Centre of Canada under subsection 65(1) of that Act may be used by a law enforcement agency referred to in that subsection only as evidence of a contravention of Part 1 of that Act.
Division 14 of Part 3 enacts the Mackenzie Gas Project Impacts Fund Act, which establishes the Mackenzie Gas Project Impacts Fund. The Division also repeals the Mackenzie Gas Project Impacts Act.
Division 15 of Part 3 amends the Conflict of Interest Act to allow the Governor in Council to designate a person or class of persons as public office holders and to designate a person who is a public office holder or a class of persons who are public office holders as reporting public office holders, for the purposes of that Act.
Division 16 of Part 3 amends the Immigration and Refugee Protection Act to establish a new regime that provides that a foreign national who wishes to apply for permanent residence as a member of a certain economic class may do so only if they have submitted an expression of interest to the Minister and have subsequently been issued an invitation to apply.
Division 17 of Part 3 modernizes the collective bargaining and recourse systems provided by the Public Service Labour Relations Act regime. It amends the dispute resolution process for collective bargaining by removing the choice of dispute resolution method and substituting conciliation, which involves the possibility of the use of a strike as the method by which the parties may resolve impasses. In those cases where 80% or more of the positions in a bargaining unit are considered necessary for providing an essential service, the dispute resolution mechanism is to be arbitration. The collective bargaining process is further streamlined through amendments to the provision dealing with essential services. The employer has the exclusive right to determine that a service is essential and the numbers of positions that will be required to provide that service. Bargaining agents are to be consulted as part of the essential services process. The collective bargaining process is also amended by extending the timeframe within which a notice to bargain collectively may be given before the expiry of a collective agreement or arbitral award.
In addition, the Division amends the factors that arbitration boards and public interest commissions must take into account when making awards or reports, respectively. It also amends the processes for the making of those awards and reports and removes the compensation analysis and research function from the mandate of the Public Service Labour Relations Board.
The Division streamlines the recourse process set out for grievances and complaints in Part 2 of the Public Service Labour Relations Act and for staffing complaints under the Public Service Employment Act.
The Division also establishes a single forum for employees to challenge decisions relating to discrimination in the public service. Grievances and complaints are to be heard by the Public Service Labour Relations Board under the grievance process set out in the Public Service Labour Relations Act. The process for the review of those grievances or complaints is to be the same as the one that currently exists under the Canadian Human Rights Act. However, grievances and complaints related specifically to staffing complaints are to be heard by the Public Service Staffing Tribunal. Grievances relating to discrimination are required to be submitted within one year or any longer period that the Public Service Labour Relations Board considers appropriate, to reflect what currently exists under the Canadian Human Rights Act.
Furthermore, the Division amends the grievance recourse process in several ways. With the sole exception of grievances relating to issues of discrimination, employees included in a bargaining unit may only present or refer an individual grievance to adjudication if they have the approval of and are represented by their bargaining agent. Also, the process as it relates to policy grievances is streamlined, including by defining more clearly an adjudicator’s remedial power when dealing with a policy grievance.
In addition, the Division provides for a clearer apportionment of the expenses of adjudication relating to the interpretation of a collective agreement. They are to be borne in equal parts by the employer and the bargaining agent. If a grievance relates to a deputy head’s direct authority, such as with respect to discipline, termination of employment or demotion, the expenses are to be borne in equal parts by the deputy head and the bargaining agent. The expenses of adjudication for employees who are not represented by a bargaining agent are to be borne by the Public Service Labour Relations Board.
Finally, the Division amends the recourse process for staffing complaints under the Public Service Employment Act by ensuring that the right to complain is triggered only in situations when more than one employee participates in an exercise to select employees that are to be laid off. And, candidates who are found not to meet the qualifications set by a deputy head may only complain with respect to their own assessment.
Division 18 of Part 3 establishes the Public Service Labour Relations and Employment Board to replace the Public Service Labour Relations Board and the Public Service Staffing Tribunal. The new Board will deal with matters that were previously dealt with by those former Boards under the Public Service Labour Relations Act and the Public Service Employment Act, respectively, which will permit proceedings under those Acts to be consolidated.
Division 19 of Part 3 adds declaratory provisions to the Supreme Court Act, respecting the criteria for appointing judges to the Supreme Court of Canada.

Economic Action Plan 2013 Act No. 2

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

Mr. Speaker, I thank my colleague for her reciting of my various credentials.

I believe that Canada already has a very low corporate tax rate on the largest corporations. I believe that it is something in the order of 25%, when we include both the federal government and the provinces, whereas in the United States, it is something in the order of 39%. There is a huge gap.

In previous election campaigns, we in the Liberal Party said that we did not want to go back to super high corporate tax rates, but we thought that given other needs of the economy, this gap was larger than it needed to be. At the time, we wished to freeze corporate tax rates rather than allow them to go down further.

That was in the past. If we look to the future, I take her point about the proceeds from these lower taxes not always being used to advantage the Canadian economy through investment. There is a lot of what Mark Carney called dead money. Personally, if one thinks of all the possible tax cuts, it seems to me that the cut in corporate tax rates to the low level it is at today would not be among my top priorities. I do not think there is a great deal of evidence that the cuts we have seen to date have had a major positive effect on investment and jobs in the country.

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

Mr. Speaker, here we go again. The Liberal candidate in Toronto Centre says amen to taxes. The Liberal member over there is talking about corporate taxes. He thinks they should be reallocated. In fact, Stephen Gordon, an economist who runs the Worthwhile Canadian Initiative, has actually pointed out that a low corporate rate lends to better productivity and eventually higher wages for skilled workers. There are some very good benefits there.

I would also like to remind the member that when corporate taxes are raised, the people who are able to manage the taxable amounts they pay to the treasury are corporations. He refers to dead money. The market will actually allocate where those resources can be best put to use. It is not dead money; it is called savings.

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

Mr. Speaker, I would say that my hon. friend over there is guilty of what one might call selective Conservative listening. I certainly never said that I was advocating an increase in corporate taxes. What I said was that among the options for lowering taxes, I would put corporate taxes fairly low on the list.

It was not I who talked about dead money. It was the governor of the Bank of England. His name is Mark Carney, who, the member might remember, used to be the governor of the Bank of Canada. He is hardly a railing socialist or communist, yet he was the one who used that expression with regard to Canada's corporate sector.

There are only a limited number of dollars available. If we have very low corporate tax rates, we have to have other kinds of higher taxes or lower social spending. There is only so much money in the pot. We have to make choices. My point was that taking corporate taxes to the point where they are some 14 percentage points lower than they are in the United States may not be the best allocation of limited Canadian resources.

The House resumed consideration of the motion that Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, be read the second time and referred to a committee, and of the amendment.

[Bob Zimmer, Conservative, Prince George—Peace River, BC]

Mr. Speaker, it gives me great pleasure to rise today to speak to economic action plan 2013 act no. 2.

This act would implement key measures from economic action plan 2013. It would also implement certain previously announced tax measures that will help create jobs, stimulate economic growth, and secure Canada's long-term prosperity.

Canadians have come to rely on our Conservative government to remain focused on the priorities that matter most to them: creating jobs for hard-working families and economic growth for local economies in all of Canada.

Since the depth of the global economic recession, Canada's overall job growth record remains the strongest among all G7 countries. Our government's plan for jobs and growth has helped contribute to the creation of more than one million new jobs, and we are on track to keep creating jobs and balance Canada's budget by 2015.

However, we also recognize that the global economy also can be volatile. We sympathize with those who are still struggling to find a job and we realize we are not immune to what happens outside our borders. That is why our government is working hard to implement positive job-creating measures from economic action plan 2013. These includes tax breaks to help small businesses create jobs, the Canada job grant to help get more Canadians trained and into skilled jobs, the largest-ever federal investment in job-creating infrastructure, new tax relief to help our manufacturing sector, and much more.

Nowhere is it more apparent that we need more skilled Canadian workers than in my riding of Prince George—Peace River. In fact, several local employers have come to me to express their increasing frustration with their inability to fill jobs because they cannot find workers with the right skills. Meanwhile, there are also far too many Canadians out there looking for work. That is why so many employers within my riding are looking forward to the full implementation of the new Canada job grant.

The Canada job grant would provide $15,000 or more per person in combined federal, provincial, territorial, and employer funding to help Canadians get the skills they need for in-demand jobs. Once fully implemented, the grant will help nearly 130,000 Canadians each year to access training at eligible institutions such as community colleges and trade union centres. This new program will ensure that Canadians have the skills employers are seeking and that employers are able to fill those key jobs.

In addition to the new Canada job grant, economic action plan 2013 is investing in skills and training for Canadians by reducing barriers to apprenticeship accreditation, supporting the use of apprentices in federal projects, and strengthening training support for persons with disabilities.

Building on these important new job-creating measures, we continue to remain focused on Canada's long-term prosperity by introducing economic action plan 2013 act no. 2. As we all know, small business entrepreneurs are big job creators, responsible for nearly half of all private sector jobs in Canada, and are a key driving force in making Canada a leader on the world stage.

We also know that to help create jobs, we must also help businesses. That is why Bill C-4 introduces more positive job-creating measures for small business entrepreneurs. One important measure is extending and expanding the hiring credit for small business for one year to help employers with the cost of new hires.

In addition, we will promote stability and predictability for employers and their employees by freezing employment insurance premium rates for the next three years. This will leave $660 million in the pockets of job creators and workers in 2014 alone.

We have also included measures that will increase the lifetime capital gains exemption to $800,000 from $750,000 and index it going forward. This positive measure will increase the rewards of investing in small business by making it easier for owners to transfer their family businesses to the next generation of Canadians.

Manufacturers and processors are also major contributors to our economy, employing approximately 1.8 million Canadians in a wide range of industries across Canada. A strong manufacturing sector also helps create jobs among suppliers and contributes to innovation throughout the economy. That is why in economic action plan 2013 act no. 2 our government is strengthening the competitiveness of this sector by expanding the accelerated capital cost allowance to further encourage investments in clean energy generation. This measure will allow businesses in Canada to face current economic challenges and improve their long-term prospects by adopting new and innovative technologies to increase productivity, thus helping businesses to compete globally while creating jobs in all regions of Canada.

These initiatives demonstrate our government's clear commitment to support small-business entrepreneurs to create jobs, growth, and long-term prosperity for all Canadians in all communities, like those in my riding of Prince George—Peace River.

At the same time, we understand that we must also respect Canadian taxpayers' dollars. Whether on job creators, hard-working families, or any other Canadians, low taxes are a crucial part of our economic success. Our Conservative government has cut taxes over 150 times, including income taxes, the GST, and business taxes, and we are justifiably proud of that record. Because of our actions, the average family is now saving over $3,200 a year. Economic action plan 2013 would take further action to support Canadian families by eliminating tariffs on babies' clothing, sporting goods, and athletic equipment.

Canadian seniors are also benefiting from a low-tax plan. In fact, the average senior pays $2,260 less in taxes each year as a result of our tax reductions. The average single senior can earn almost $20,000 a year and the average senior couple almost $40,000 a year without paying a single nickel of federal income tax, one thing that definitely affects my parents.

Small businesses as well are benefiting from our government's tax reductions. A small Canadian private business with a taxable income of more than $500,000 now pays 34% less federal tax than in 2006, equivalent to a tax savings of $28,000 that can be reinvested to fuel growth and job creation.

Bill C-4 would take further action to ensure Canadian taxpayers' dollars are respected by introducing measures to improve the efficiency of the temporary foreign worker program by expanding electronic service delivery.

Economic action plan 2013 also includes measures that would modernize the Canada student loans program by moving to electronic service delivery, as well as plans to phase out the labour-sponsored venture capital corporations tax credit.

Meanwhile, we remain on track to balance Canada's budget by 2015. Earlier this week, the annual financial report of the Government of Canada for 2012-13 was released. It shows the continued downward track of Canada's annual deficit. In 2012-13, the deficit fell to $18.9 billion. This was down by more than one-quarter from the deficit of $26.3 billion in 2011-12 and down by nearly two-thirds from the $55.6 billion deficit recorded in 2009-10.

Our government's responsible spending of taxpayer dollars has played an important role in these results, with direct program expenses falling by 1.2% from the year prior and by 3.8% from 2010-11. This is just further proof that we are finding savings within government and are refusing to spend recklessly. We will find these savings without raising taxes or cutting transfers to Canadians or the provinces and territories.

These initiatives demonstrate our government's clear commitment to support small business entrepreneurs to create jobs, growth, and long-term prosperity for all Canadians while respecting Canadian taxpayers' dollars. That is why I am pleased to support this bill, Bill C-4.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I enjoyed the comments from my colleague from the west.

However, he did talk about creating opportunities in the trades, and if he would go to the front page of the economic action plan website, he would find a link called “creating opportunities in the trades”, where there is a link to a video in which 90% of the people who are getting education in the trades are men and the only education being given to women in the trades is for cutting hair, applying fingernails, and cutting food.

Over on this side of the House, we think that women can do anything that men can do. Why do the Conservatives not think so?

[Bob Zimmer, Conservative, Prince George—Peace River, BC]

Mr. Speaker, I am a tradesman myself. I was a carpenter for many years before I got this job, and one thing I will say is that trades are open to both males and females. It is just up to them to decide which trade they would like to enter.

I notice that in my particular trade, carpentry, there are many more females on the work sites today than there were before. Things are changing. Our government would like to see both males and females becoming skilled tradespeople in all types of trades, and we would welcome that in our current economic job market.

[Bernard Trottier, Conservative, Parliamentary Secretary to the Minister of Public Works and Government Services]

Mr. Speaker, I wonder if the member for Prince George—Peace River could expand on measures in Bill C-4 that build on the budget and address investments in communities and infrastructure. We know it is very important.

I know the member has some communities that are very challenged with respect to building up infrastructure. There is a lot of growth and there are some big needs when it comes to moving people and goods around. If the member could expand on that aspect, I would like to hear his comments.

[Bob Zimmer, Conservative, Prince George—Peace River, BC]

Mr. Speaker, infrastructure is a big deal for us in the northeast of British Columbia. I always tell my constituents that we have a big economic engine in the northeast and we need more resources and more infrastructure to keep that engine working efficiently.

The gas tax transfer fund has been well received in British Columbia. We are seeing some changes within our municipalities in the way that funding is being designated, but it is being well received within our part of the province and our part of the country, as I am sure it is across the country. It will provide the much needed infrastructure to keep this economic engine running at full capacity.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, since the debate began, I have heard a number of government members talking about employment and the economy. This always leads me to the same question, and I still have not managed to get an answer.

I am trying to understand why this omnibus bill contains a provision regarding the appointment of Supreme Court judges. My own theory, which many of my colleagues on this side of the House share, is that the process was bungled for the most recent appointment in Quebec. The problem is ongoing and still has not been resolved.

With that in mind, it seems the government tried to create a catch-all budget implementation bill by including provisions concerning the Supreme Court. I still do not see how that is relevant.

Can my colleague tell us why these measures were included? If not, can he tell me whether the government will support a motion that we plan to introduce to separate this aspect from the rest of the omnibus bill?

[Bob Zimmer, Conservative, Prince George—Peace River, BC]

Mr. Speaker, a colleague from this side of the House said earlier that we are a government that likes to get things done. Including legislation in budget bills is often a way for us to get a lot done in short order.

That has been our Conservative mantra over the last few years: we are a government that does get things done, instead of just having endless debate over issues that we know Canadians want answers for right now. That is why we do what we do in terms of getting legislation through. We see it as an efficient way of passing legislation, as opposed to what the opposition would say.

[John Weston, Conservative, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Mr. Speaker, the member and I are both from the west coast. I would appreciate it if he could give us some insight on how the provisions we are discussing this morning would impact the west coast.

[Bob Zimmer, Conservative, Prince George—Peace River, BC]

Mr. Speaker, our government is focused on the economy and on keeping the Canadian economy in general chugging along. Among the things we talked about, the job skills grant is going to affect us greatly and will answer the need, especially in the west, for skilled workers in our workforce. We are already being hit by that need. It is going to hit us even more, and we are responding to that need.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I am pleased to rise today to speak to Bill C-4, which was to be a budget implementation bill but it is much more. It is that much more that has a bunch of us on this side of the House worried about what the government really intends to do. For example, this budget implementation bill includes a redefinition of what constitutes a danger in the workplace.

The definition has been in the Canada Labour Code for many years and is well understood now by the health and safety officers, workplace safety committees, employers and employees and to change it in a manner that will not allow us to have full and fulsome debate is a dangerous practice in itself.

We will not know what the new definition means. The old definition talked about any existing or potential hazard or condition, or any current or future activity that could reasonably be expected to cause injury or illness to a person exposed to it.

The new definition requires that this danger be imminent or serious. What the heck does imminent or serious mean? To find out, we have to ask the minister. The minister is the only person who is now able, under this legislation, to determine whether something is an imminent or serious threat to an individual, because the government has taken out health and safety officers across the country and replaced them with one individual.

Each and every declaration of a danger to a person in a workplace in Canada now has to be determined by the minister himself or herself. I do not know if the minister has enough time to get to all the workplaces in Canada. The minister is pretty busy legislating companies back to work, so I do not know if he or she has enough time to do that.

It is a very serious measure that is being taken in a budget implementation bill with very limited time for discussion.

The other thing that is happening in the bill is that for the public service the definition of what can be arbitrated, in terms of what we call interest arbitration processes, has changed dramatically. The definition of what constitutes an essential service is now in the head of the minister. It is not in a jointly agreed to by both parties system.

The minister can decide what is an essential service in the civil service. For example, the minister could decide that his or her driver is an essential service and therefore that person would be prohibited from taking any action.

The danger with this kind of tinkering with the existing well-known and well-understood legislation is where it may lead in the rest of Canada. We have police forces, fire departments, ambulance services and paramedic services across the country that rely on an arbitration system to feel as though they are getting paid appropriately for their work and that their terms and conditions of work are dealt with. They are not allowed to go on strike. They are not allowed to exercise what the rest of Canadians have, which is the ability to withdraw their services.

All of those other folks across the country have to be wondering where the heck the government is going and where it will lead the provincial governments that deal with these things as well.

The government has not only redefined what is an essential service and just basically said that the minister can pick and choose what he or she wants it to be, but it has redefined what constitutes the terms under which an arbitrator can decide a collective agreement.

As members will recall from a year and a half ago, or maybe two years, the former minister of labour actually set the conditions under which an arbitrator was free or not free to decide a collective agreement. When it came to Air Canada, Canada Post and CP Rail, those agreements were decided by an arbitrator, except the arbitrator's hands were tied.

If I were in the police force or if I were a firefighter, I would be worried about where this federal government was leading us, down the road of re-defining what could and could not be done by an arbitrator.

I want to talk about this issue, because I am the deputy critic for persons with disabilities. The member for Winnipeg South Centre talked in glowing terms about the fact that the government had made the enabling accessibility fund a permanent feature of future budgets, which is a good thing. The problem is that fund is a Conservative slush fund, unfortunately. I do not mean that any of the groups that receive the money are somehow complicit in this, but 85% of the money goes to Conservative ridings.

Conservatives do not represent 85% of the population of Canada. I think something like 24% voted for them last time. How is it that 85% of the enabling accessibility fund goes to Conservative-held ridings, or if a group or organization is turned down for money under the enabling accessibility fund, all it has to do is have a friend like the Minister of Foreign Affairs and that minister will grease palms or whatever it is he has to do to change the decision by whoever made the decision so a group or association can get money out of the enabling accessibility fund?

We do not have any objections to there being an enabling accessibility fund. In fact, it should be bigger than it is, but we would like to see it distributed fairly across the country. I have groups in my riding that have been turned down for enabling accessibility money and cannot fathom the reasons why, because they are not given. There is no sudden decision that a group did not get it because of X, Y or Z. The decision is made that they just did not get it. When we hear that groups in Conservative-held ridings have no trouble getting money, we wonder where the money is coming from.

The other thing I want to say about the budget implementation act is that the government has determined it can add new stuff that was not in the budget. Not only were the issues dealing with the redefinition of what constitutes a danger, the removal of health and safety officers and replacing them with the minister, the changing of the arbitration for the civil service, but a redefinition of what constitutes a Supreme Court justice has been added, someone coming from Quebec. How is that in a budget bill? How is that something that we can think costs money? The Conservatives response, and I understand where they are coming from, but I do not like it, is that it is something that came up just recently, that they have to fix it really quick and that they can rush this thing through and get it done in a hurry.

There are a whole bunch of other things that came up just recently that have not been included in the bill but have to do with money, that have to do with budgets, that have to do with taxpayers and their pocketbooks. The Conservatives talked about them in the throne speech, but they are not here.

The throne speech talked about “pay to pay”. For those who do not know what that means, a cable TV or a cellphone subscriber with any of the big carriers in Canada has to by $2 to get a paper bill. If they do not have Internet to get their bill, they have to pay $2 and the government collects tax on that $2. No wonder it is delaying it because it wants to keep collecting that tax.

Most of the people affected by that are seniors who do not have access to the Internet, who do not have ready accessibility to electronic forms of payment. Not only that, even those people who have opted to get it electronically are now being told that if they want the detailed billing, they have to pay $3 to get it electronically, and the government will tax that. Therefore, there will 15¢ federally and in Ontario another 8¢ provincially going into the coffers of the government every time people pay their bill or accepts the bill in paper. The Conservatives promised to do something about that in the throne speech. Where is it? If they can do things really quick like this, why can they not put this in the budget implementation act?

There is no help for airline passengers. The Conservatives voted almost unanimously, if not unanimously, against Bill C-459, which would have provided a system to help airline passengers from the vagaries of the airlines bumping them off a flight. There was talk about that before the throne speech, but there is nothing in the throne speech or in the budget bill.

There is nothing in the budget bill that is a relief for the 200% increase in cable TV fares that have cable and satellite fees that have taken place since it was deregulated completely by the CRTC. In the throne speech the Conservatives did not even talk about that. They said that consumers would be able to pick and play whatever they want, but at a cost. If I pick a channel, it would cost me an arm and a leg. There is nothing in here for the pocketbook of the ordinary Canadian. If the Conservatives want to talk about pick and play, let us apply it to this legislation. We would like to pick and play those things that are good for Canadians and not have to vote against them, while we can vote against those things that are not good for Canadians. That is the kind of pick and play I would like to see.

We have no relief for bank fees. People from the Syme Seniors' Centre in my riding told me that just recently the banks told them that in order to get a printed statement of their bank account they would have to pay. It is a not-for-profit seniors centre that is trying to struggle through with whatever little money it can get from grants and the rest. It now has to pay to get that statement. It did not used to because it was a seniors centre. Now that it has to pay to get the statement, there is no relief. There is nothing in the budget bill that actually reduces those exorbitant bank fees.

We need to rethink how we do these budgets and not put things in a budget that have nothing to do with budgets.

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

Mr. Speaker, I would like the member to answer a question in regard to essential services. He mentioned firefighters and police officers would be subject to this. The Public Service Labour Relations Act is legislation that only applies to those who come under it. Could he explain how he would square the two? It seems to me he is creating some confusion for the people who are watching. I look forward to his answer.