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

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

Mr. Speaker, I thank the member for Hamilton Mountain for her speech, in which it was perfectly clear to anyone listening that the NDP is on the side of the public sector unions when it comes to negotiations. I did not hear anything that said the New Democrats would stick up for the taxpayers who are paying the salaries of all of the people who are in the public sector unions.

Clearly there is a negotiation that will have to occur. The member has the audacity to say that the NDP is a government-in-waiting; well, it would be interesting to see if the NDP government-in-waiting would give away the store to the public sector unions. Can the member clarify whose side she would be on when sitting down with public sector unions and negotiating?

[Chris Charlton, NDP, Hamilton Mountain, ON]

Mr. Speaker, it is a bit rich having a member from the Conservative caucus, whose colleagues in the Senate are currently wasting public dollars at record speeds, lecturing me about accountability to taxpayers.

I will make no apologies for standing up for workers in the federal civil service. He differentiates between those workers and taxpayers as if to suggest that federal public servants do not pay their taxes. Is he kidding me?

I will make absolutely no apologies for standing up for decent-paying, family-sustaining jobs in this country, be they in the public or the private sector. Collective bargaining rights are fundamental human rights that every member in the House ought to support.

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, today Canada has the strongest job growth among the G7 countries in the world.

Our unemployment rate is at its lowest level in four years. It is significantly lower than that of the United States, a phenomenon that has not been seen in nearly three decades. In my riding, unemployment rates are well below 5%, 4%. There is virtually no unemployment.

Meanwhile, we have created over one million net new jobs, nearly 90% of which are full time, and our government continues to make new opportunities for Canadians to find employment.

While other countries continue to struggle with debt that is spiralling out of control, Canada is in the best fiscal position in the G7. Canada still remains on track to return to balanced budgets in 2015-16. The deficit has been reduced significantly, and we are well on track to bringing it to balance.

Both the independent International Monetary Fund and the Organisation for Economic Co-operation and Development are projecting that Canada's growth will be among the strongest in the G7 in the years ahead. Real GDP is significantly above pre-recession levels, the best performance in the G7.

All Canadians want this to continue. They want us to continue to make progress with respect to the economy, thus increasing jobs and prosperity for them and their children.

However, our government has been very clear that we will not raise taxes on Canadians to balance the budget. I know the earlier speaker said that we cannot cut our way to prosperity, but we certainly cannot tax our way to prosperity. That is a fundamental difference between this particular government and the opposition.

Our government has an economic plan that makes sense. As we have repeatedly said, Canada's economy is not immune to the economic challenges beyond our borders. We have been and will continue to be impacted by the ongoing turbulence in the United States and Europe, some of our most important trading partners.

We are moving forward and focusing on the economy, all the while keeping taxes low, which means more money in the pockets of hard-working Canadians. That in turn helps keep our economy strong.

A recent study by KPMG concluded that Canada's total business tax costs—the corporate income tax, capital taxes, sales tax, property taxes, and wage-based taxes—are more than 40% lower than those in the United States. This is what makes us competitive and makes our economy prosper. It continues to grow, and it grows jobs.

In short, our government has created an environment that encourages new investment, growth, and job creation. It is an environment that ensures that Canada has the strongest fiscal position and the lowest business tax costs in the G7.

Let me share some of the highlights of our tax relief initiatives.

Our government has implemented broad-based tax reductions that support investment and growth and is delivering more than $60 billion of tax relief to job-creating businesses over 2008-09 and the following five fiscal years.

We have reduced the federal general corporate income tax rate to 15% in 2012 from 21% in 2007 in order to spur investment and productivity. Can members imagine? It went from 21% to 15%.

The federal capital tax was eliminated in 2006, and the corporate surtax was eliminated in 2008 for all corporations. This translates into jobs and an expanded economy.

Even more, we reduced the small business tax rate to 11% in 2008 from 12% in 2007, and subsequently the amount of income eligible for this lower rate was increased to $500,000 in 2009.

Canada's system of international taxation was strengthened in order to better support cross-border trade and investment and to improve fairness.

All these actions are part of a policy framework that increases the productive capacity of our economy as well as Canadian living standards. Lower general corporate income tax rates and other tax changes have increased the expected rate of return on investment and reduced the cost of capital, giving businesses strong incentives to invest and hire in Canada. This will in turn increase Canada's productive capacity and raise living standards.

This bill is great news for Canadians. Unlike the NDP, which insists on higher taxes, economic action plan 2013 is focused on positive initiatives to support job creation and economic growth while returning to balanced budgets, thus ensuring Canada's economic advantage remains strong today and into the future.

However, the job does not end there. Today, Bill C-4 will implement key measures from economic action plan 2013, as well as certain previously announced tax measures, to help create jobs, stimulate economic growth, and secure Canada's long-term prosperity.

Our government's low-tax plan is helping to guide the Canadian economy along the path of sustainable economic growth. Bill C-4 builds on our successes and maintains our government's focus on the economy. While we believe in the benefits of lower taxes, our government fully understands that sustaining an effective tax system also rests on the foundation of tax fairness. Today I will discuss some of the key measures we are implementing to do everything possible to ensure that Canadians have a fair tax system.

That is why economic action plan 2013 is committed to closing tax loopholes that allow a select few businesses and individuals to avoid paying their fair share of tax. While Canadians work hard and pay their taxes, there are some who choose not to, and we must stop that practice. We must take initiatives to close those loopholes and ensure that the system is fair.

Chartered Accountants of Canada had this to say about economic action plan 2013:

The budget looks to close tax loopholes, address aggressive tax planning, clarify tax rules, reduce international tax avoidance and tax evasion and improve tax fairness. It also provides the Canada Revenue Agency with new tools to enforce the tax rules.

They continued with the strong backing of our initiatives and said:

We support efforts to maintain the integrity of the tax base....

This is high praise. I am proud of these measures, and I will elaborate on some of them.

Broadening and protecting the tax base supports our government's efforts to return to balanced budgets, responds to provincial governments' concerns about protecting provincial revenues on our shared-tax basis, and helps Canadians have confidence that the tax system is fair.

Ensuring that everyone pays his or her fair share also helps to keep taxes low for Canadian families and businesses, thereby improving incentives to work, save, and invest in Canada.

Since 2006, and including measures proposed in economic action plan 2013, the government has introduced over 75 measures to improve the integrity of the tax system.

Today's legislation takes additional steps in support of this objective, extending the normal assessment period by three years for a taxpayer who has failed to report income from a specified foreign property on his or her annual income tax return and has failed to properly file the foreign income verification statement known as T1135.

It introduces stiff administrative monetary penalties and criminal offences to deter the use, possession, sale, and development of electronic suppression of sales software designed to falsify records for the purpose of tax evasion.

Our systems, with the Internet, computers, and software, have made it possible for people to try to avoid tax. It is almost hard to believe that we would need such specific legislation, but let me read some portions of it.

What we now know as an electronic cash register, or a “device that keep a register or supporting documents through the means of an electronic device or computer system designed to record transaction data or any other electronic point-of-sale system” should be in place. However, here is a definition of electronic suppression of sales devices:

(a) a software program that falsifies the records of electronic cash registers, including transaction data and transaction reports; or (b) a hidden programing option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that (i) may be used to create a virtual second till, or (ii) may eliminate or manipulate transaction records, which may or may not be preserved in digital formats, in order to represent...

or misrepresent the actual point-of-transaction sale.

This legislation prohibits anyone who knowingly, or under circumstances attributable to neglect, carelessness, or wilful default, to participate, or consent or acquiesce in the use of an electronic suppression of sales device or similar device on pain of penalty. It also talks about possession of those devices and those who make them. There are stiff penalties to ensure these types of devices are not used. That is just one example of closing tax loopholes to ensure revenues are not lost.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I listened carefully to my colleague's speech. The problem we have on this side is the government refuses to look at the budget as a framework for dealing with the finances of the country. It continually throws in other matters. Therefore, we now have this very obscure process where we cannot get from the government what its direction is in any given way. It throws in other things.

My question is around the fact that the budget would undermine health and safety in the country, particularly in this city and region. Is the member aware that just a couple of years ago we had a horrific accident here? Peter Kennedy, a loyal public servant, died because of lax health and safety provisions. This budget would further undermine those provisions. Is he aware of that? Does he support weakening health and safety provisions? This precinct does not actually have health and safety provisions to start with and he should know that. Is he capable of responding to his constituents to say that he is voting for a weakening of health and safety provisions?

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, certainly there is not a weakening of health and safety provisions. I do not know where the member gets that from. I was involved in human resources and labour. We certainly have invested millions of dollars with respect to health and safety of employees. It is certainly an important factor and something we take very seriously.

Not only that, but with respect to health transfers to the provinces, we have increased those transfers each and every year to record levels, far in excess of what the previous Liberal government did. In fact, what it did was reduce the amount of money transferred to try to balance its budget on the backs of ordinary hard-working Canadians. We have said we will not do that. We will invest in those areas that are important. We will ensure that we reduce taxes and stimulate the economy so there is a good generation of income so we can look after things such as the member mentioned.

[Frank Valeriote, Liberal, Guelph, ON]

Mr. Speaker, as I have travelled through my own riding in Guelph, I have talked to a lot of youth. As we know, there are 224,000 less jobs available to youth now than there were before the recession. They are concerned. We have an unemployment rate for youth at about 17%. That is almost twice the national average for adults. What is worse is that rate is actually more than 25% when we consider the underemployed and those who are not even looking for jobs anymore. They are desperate and they find nothing in this budget that gives them any promise whatsoever.

What does the member opposite have to say about those statistics and what possible hope our youth have if they are to rejoin our employment force?

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, youth unemployment is of course an important factor and one that we take very seriously. If the member would do his research, he would find that Canada has one of the lowest unemployment rates compared to other countries in the world. Given that, we have said that we want to address that particularly and directly. We have taken initiatives to design programs to ensure that those who are underprivileged and those who are in positions where they do not have the education they need, or the job skills. We have invested funds to be sure that they are able to be part of the economy. We specifically targeted aboriginal youth.

We have created over one million net new jobs, nearly 90% full-time, nearly 85% in the private sector, since the global recession in July of 2009. We have the strongest job creating record in the G7. I would ask the member to do some analysis and have a look at where we are today compared to other countries. Compared to the previous Liberal government, we are doing very well. However, as always, more can be done.

[The Acting Speaker, Conservative, Bruce Stanton]

It being 1:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

The House resumed from October 25 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.

[Michelle Rempel, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, thank you for that mouthful of an introduction this morning. It is still a title I am trying to get used to. It is a little rough around the edges.

It is with great pleasure that I rise to speak to this particular piece of legislation this morning because of its importance to our country.

It is time for us to take a look at the last five years of our country's economy. If we rewind to this time in 2008, there was a lot of angst in the global community around the global finance system, economic growth, and the prospect of countries not being able to pay some of their debts. It was a time of great uncertainty. We saw a lot of uncertainty with our major trading partner, the United States.

I was not in the House at that time, but working out in the field, we looked at the situation as professionals and wondered if a deal was going to go through. What would it mean for our staff? Were we going to be able to achieve our targets? Were we going to be able to do what our business wanted to do? Those were questions many Canadians were asking. They were wondering if they would have a job at the end of that time.

When I look at what our government has accomplished since then through our successive economic action plans, including the implementation act that we are talking about today, it is amazing where Canada is at. Our job creation record of one million net new jobs since the time when we marked the beginning of the economic recovery in 2009 puts our country at the top among the G7 countries. We certainly have an excellent track record among organizations such as the International Monetary Fund. I believe they have called our country one of the best places to do business. Those are facts that show that Canada is really coming into its own in terms of being an economic powerhouse on the world stage.

Certainly the execution of an agreement in principle around the Canada-European trade agreement is very positive for Canada's long-term economic growth prospects. I was speaking with an importer and a distributor in Winnipeg on Friday; they are actually looking at increasing the number of their retail stores in Canada because they see that this trade agreement positions them so well to be able to bring in new products.

It is not just about economic growth, it is about the impact on consumers, and overall it is our government's economic plans that have really positioned Canada to be talking about where we go next. How do we grow above and beyond the success that we have seen? That is what this particular bill seeks to do: it seeks to accelerate Canada's economic growth prospects.

Some of the items that I think are very positive and that I hope my colleagues will support include extending and expanding the hiring credit for small businesses, which we believe will benefit an estimated 560,000 employers; increasing and indexing the lifetime capital gains exemption to make investing in small business more rewarding; and expanding the accelerated capital cost allowance to further encourage investments in clean energy generation. I talked to a bunch of stakeholders in Calgary about a month and a half ago about this particular piece of information, and they were very excited about it. Another positive item is freezing employment insurance premium rates for three years, leaving $660 million in the pockets of job creators and workers in 2014 alone.

If I have some time toward the end of my speech, I would like to continue going through some of the other provisions in this act that will allow Canada's economy to continue to grow and prosper; however, at this moment I would like to talk about my department and how we are trying to grow Canada's economy, specifically in the west.

As the House knows, there are regional development agencies in each part of the country. I represent western economic diversification. It has a very dynamic group of staff and individuals who are committed to seeing Canada's western economy, which is certainly a powerhouse for the rest of the country, grow, diversify, and prosper in new ways. One of the key ways we can do that is through getting innovation to market and encouraging an innovative ecosystem and culture.

I have worked in the innovative sector, research administration, and intellectual property management in western Canada for over ten years, so it has been a great pleasure to be part of this portfolio. One of the things that I heard from my stakeholder consultations over the summer was that oftentimes, when small and medium-sized enterprises try to take a product or new process to market, there is actually a capital gap in the product development life cycle.

For example, for people running a small company that has a new device or tool that they think is going to be able to expand their business, create new jobs, and create opportunities for highly qualified personnel, taking that from concept to actually scaling it up, testing it, and looking at the ways that it can be manufactured is the particular piece of work that oftentimes the people running small and medium-sized enterprises cannot find funding for in terms of venture capital or traditional lenders, and often, although we have an excellent track record in funding basic research through our tri-councils, it is that particular gap in the product development life cycle that we sometimes see entrepreneurs struggle with.

As a result, on Friday, again in direct alignment with our government's economic action plan priorities and as part of our economic action plan, I announced the western innovation initiative, or WINN for short. This is something I am very excited about for western Canadian entrepreneurs, because it will actually fill that gap to a certain extent.

One of the key things about this particular program is that it is geared toward small and medium-sized enterprises, and we are certainly hoping to see many people apply for it when the new round of funding opens up on November 8. We hope to see several new products advance to market from this initiative.

Some of the details of the program, as outlined on WED's website, include being eligible to apply for up to $3.5 million in a repayable contribution. We are looking at projects that we hope can get to market within three years and will therefore be able to pay back this loan so that future generations of entrepreneurs can also benefit from the same fund while respecting taxpayers' dollars.

While it is a small component, it speaks to the larger economic agenda that this government has consistently had, which is to grow Canada's economy and seek growth and prosperity for all Canadians. If entrepreneurs listening out there today in western Canada fall under those criteria of being a small or medium-sized enterprise that has been in operation for a year or more and has fewer than 500 employees and may be facing that funding gap, I hope they will apply in this first round and be considered for this new pool of funding. It is a great thing.

Some of the other components of economic action plan 2013 include closing tax loopholes and combatting tax evasions. Some of the important components of this part of the legislation include introducing new monetary penalties and criminal offences to deter the use, possession, sale, and development of electronic suppression of sales software designed to falsify records for the purpose of tax evasion; closing tax loopholes related to character conversion transactions, synthetic dispositions, leveraged life insurance arrangements, and other schemes, to ensure that everyone pays their fair share; and extending in certain circumstances the period during which the Canada Revenue Agency can reassess a taxpayer who fails to report income from foreign property. Some of these components sound quite technical, but they are actually positive in that we would make the tax system more robust and ensure that people who are contributing in Canada's very prosperous economy are paying their fair share, which we think is very positive.

There are some other very positive components, including measures for post-secondary students. This act would provide for the modernization of the Canada student loans program by moving to electronic service delivery. That is a really positive thing. I remember having to go and stand in those lines, and this change would be really great for some of our post-secondary students.

I certainly hope that my colleagues opposite will have a look through this act and realize that there are provisions in it that would be really good for this country and for the long-term economic health of Canada. We can all rise today and be proud of where our country is in terms of economic growth and in terms of our prospects for being a world leader internationally, not just now but for decades to come. I certainly hope that colleagues will support this bill, because many good common-sense measures that would support the average Canadian are included in it.

[The Acting Speaker, Conservative, Bruce Stanton]

Before we start into questions and comments, I would just say that we have only five minutes in this period, so members who go on for more than about a minute, either in their question or in response, will be cut off in order to give more time for other hon. members to participate.

The hon. member for Windsor West.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, unfortunately, the government has also cut back services. It has closed my immigration office to the public. It has closed the consular services in Detroit. It is, unbelievably, closing our veteran's office. It has also removed our postal services to London.

I would like to ask the hon. member a question with regard to the assertion that the government has created a million jobs. If it has created a million jobs, could she tell me in what sectors? What percentage is in the auto sector, the agriculture sector or the health science fields? The Conservatives talk about a million jobs created. In what sectors have they been created and what are the percentages?

[Michelle Rempel, Conservative, Calgary Centre-North, AB]

Mr. Speaker, in terms of sectors across the economy, my colleague, I believe, mentioned the manufacturing sector. I would ask him to check his leader's economic thought policy around the manufacturing sector when he talked about Dutch disease. We have a booming energy sector in the west that will create hundreds of thousands of jobs in the next 25 years, I would hope, across various sectors in the Canadian economy. He said that the manufacturing sector shrunk because of the energy sector, which has been proven false by, I believe, Statistics Canada and many other think tank groups. The New Democrats need to get their economic policy in line before they start looking at ours.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to raise an issue about which I believe many Canadians are concerned. Time and time again we hear it is a very important issue. Many, including myself, would say it is in the top three and possibly the number one issue, and that is health care.

The government has brought in budget after budget, but it tends to want to ignore the importance of the issue of renewing the health care accord. The accord is going to expire in 2014. The reason we have the funding we have today is because of the health care agreement. That is what has allowed us to get that record level of health care services, dollars and resources to our provinces so Canadians can feel comfortable in knowing they have a health care system from coast to coast to coast. When is the government going to deliver on a renewed health care accord?

[Michelle Rempel, Conservative, Calgary Centre-North, AB]

Mr. Speaker, frankly, I am shocked that my colleague brought this up, given that it was his party that slashed and burned funding to the provinces during its tenure in government.

Our government's philosophy to managing the finances of our country is pragmatic and it is the same as any Canadian family would undertake. When a Canadian family looks at its chequebook, it says that if it needs to balance, there are two ways to do that, either by bringing in more revenue or spending less. Any business that asks this questions knows that those two components can be balanced. It can deliver good, effective service, but also ensure that it happens in a context that is respectful of the taxpayer dollars.

I am just shocked that my colleague would bring this up, given the Liberals' record on health care transfers to the provinces.