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

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

Mr. Speaker, all the members opposite talk about is spending and never address the issue of how our country and our economy can create the wealth for which we can have all these great social services that our government is funding.

Could the minister tell us why it is important to have a climate for economic growth and what our budget is doing to ensure that economic growth continues?

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

Mr. Speaker, I congratulate my hard-working colleague on his moose, which his constituents will appreciate.

Our government has consistently stated that one of our key goals is to get back to balance. As our Minister of Finance has stated, we are well on track to do that. If we contrast that with the economic policy of my colleagues opposite, their shadow budget did not even include numbers. The shocker is that numbers are important when it comes to a budget. Then my colleague opposite from the third party, his only policy to date has basically been up in smoke.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I want to begin by congratulating my hon. colleague, whom I also like to count as friend, for her promotion. She is now within Privy Council.

I would be happy to support some of the parts of Bill C-4, such as the software that allows for fraud at point of sale. We should deal with that. However, would she not agree with me that it makes it very difficult for members of the opposition, who read such 300-plus page bills carefully, to vote for them when they are omnibus in nature and include many portions that I cannot possibly support, such as weakening the Canada Labour Code?

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

Mr. Speaker, I thank my colleague for her congratulations. I look forward to working with her.

Every once in a while, as parliamentarians, we have to sit back and look where we are in our country. Certainly, we have passed a great deal of legislation in the House. However, when we look at some of our international partners and some of the legislative gridlock they face, we see what that means for their businesses. Our government sees clear action, tangible results and investment for business growth. This is a very positive thing, as is this legislation, and I certainly hope she will support it.

[Judy Foote, Liberal, Random—Burin—St. George's, NL]

Mr. Speaker, I do not know if it is a pleasure, but I want to stand and speak to the budget. After travelling throughout Random—Burin—St. George's for an extended season, thanks to the Prime Minister who chose to prorogue the House of Commons so we were not back here to deal with some of the issues raised in the budget, I learned from my constituents a lot of the issues they were dealing with and why they were having those problems. A lot of it points to the lack of leadership, I am told, by the Conservative government.

The reality is that my constituents continue to tell me that unless the leadership is there on issues, policies and programs that are controlled or maintained by the federal government and unless the federal government is more cognizant of issues of people who particularly live in rural communities, they will never get out of the bind in which they find themselves. When I met with them, as I do every weekend, but particularly over the extended period this summer, they asked me to bring forward their concerns to see if it were possible for the government to get its head out of the sand, start listening to Canadians from coast to coast to coast and recognize that some people were having difficult times and finding it hard to make ends meet. They asked me to bring forward their concerns, hoping the government would listen and would take their concerns into account.

My constituents are certainly not at all impressed when they look at the budget bill that has so much in it that it is hard for parliamentarians to decipher it and take the time needed to go through it bill by bill by bill. How can the government expect Canadians to do so, particularly those who live in rural communities, some of whom do not even have access to the Internet, some of whom have no way of finding out what is in the budget bill unless their members of Parliament convey and explain to them what it contains? At the same time, it is hard for members of Parliament to get the message across because there is so much in the budget.

Again, we see the Conservative government put forward a budget that does not take into account the concerns of Canadians, no matter where they live in our country. The budget implementation act and surrounding debate is further evidence that the government just does not get it. Rather than congratulating itself on mediocrity, the government should focus its efforts on ensuring families in Random—Burin—St. George's and the rest of Canada do not continue to struggle.

The fact that Canada's fiscal situation is better than that of Spain or Greece does not change the reality for those in my riding who are without jobs through no fault of their own, or those with adult children who have moved back home because there are no employment opportunities for them or they are underemployed and cannot afford to live independently.

At events throughout my riding, constituents have told me they are tired of being ignored by the Conservative government. They expect better, and so they should. Bill C-4, sadly, is just more of the same omnibus legislation that Canadians from coast to coast to coast have come to expect, but not accept from Conservatives out of touch with the real needs of people who try desperately to make ends meet, but find themselves falling behind because of the measures being enacted by the Conservative government.

At a time when the Bank of Canada is cutting its growth and inflation estimates across the board and warning “the risk of exacerbating already elevated household imbalances”, the government introduces legislation and uses rhetoric showing it is completely ambivalent to the fact that Canada's economic growth is rapidly slowing. After 18 consecutive months cautioning investors that the bank would soon be raising the interest rate from 1%, the Bank of Canada has been forced to drop the rate hike talk altogether to try to stimulate investment or risk compounding the weak economic outlook caused by the Conservative government.

The Bank of Canada even pushed back its projected target for Canada's economy to return to full production six months later than it had recently forecast. In fact, the Bank of Canada now predicts the economy will return to full production at the same time Canadians will return to power the Liberal government in 2015.

At a crucial point in Canada's economic future, the Conservative government has once again failed to put forward a budget implementation act to grow the economy and help create jobs.

For years, the Liberals have called on the government to freeze its scheduled employment insurance premium hikes. Finally, the Conservatives are reversing their ill-timed tax hikes on Canadian jobs, which would have made it more expensive for employers to hire those in need of work. While I am relieved the government has decided to heed the advice of the Liberals and freeze EI premiums for the next three years, after years of steadily increasing the costs workers and employers must pay into the program, freezing EI premiums for the next three years will not make up for the billions of dollars in increases the Conservatives forced on employees and employers to pay during this fragile economy.

If the Conservatives truly wanted to address the problems with employment insurance, which they created, they would have used Bill C-4 to reverse the punishing changes they made to the EI program last year. EI is still inaccessible to thousands of Canadians who need it, even though they paid into the program. Although this budget implementation act contains a number of provisions that were not in the initial budget document, such as many of the technical tax measures in part 1 of this act, it is telling the Conservatives to use Bill C-4 to take action to make EI more accessible to those who need the support.

Furthermore, the Conservative government has completely ignored the need to address the factors driving high unemployment and underemployment, as well as the need for improving skills training and education. The only time this budget addresses skills is when it changes the name of the Department of Human Resources and Skills Development to the Department of Employment and Social Development. This is a sign that the government is no longer interested in skills training.

There are still too many jobs without skilled Canadians to fill them and trying to push programs on provinces and employers without consultation will simply not result in the skills training needed. Canadians need a government committed to helping create jobs for Canadians, because it is a partnership. We do not expect the government to create all the jobs. We expect it to make it possible and create an environment where jobs can be created. They also need a government whose priority is to ensure Canadians receive the training they need to fill existing vacant jobs.

Not surprisingly, as I alluded to previously, this omnibus budget implementation act contains many changes that have nothing to do with budget 2013. It is a sad state of affairs when the Minister of Finance cannot even answer questions on his own legislation, instead opting to refer questions to other ministers because the government has squeezed so many disparate bills into Bill C-4, including major public service labour changes and modifications to the appointment of Supreme Court judges.

While the Minister of Finance claims this is, “the mechanics of government”, the truth is it is easier for the Conservatives to restrict debate and avoid scrutiny if they lump dozens of bills together, which has unfortunately become the hallmark of the government. When legislation is combined in this way to avoid transparency, mistakes are bound to happen. For example, this bill would fix an error in the last budget where the government mistakingly included a disincentive to fishermen working non-fishing jobs in the off season by discarding fishing income for the calculation of EI benefits for those who worked 421 hours or more in a non-fishing job.

As many members of the House prepare to attend Remembrance Day events in their ridings, we cannot allow the government's continued attack on veterans to go without proper scrutiny. Bill C-4 would cut the number of members sitting on the Veterans Review and Appeal Board from 29 to 25. What is worse, we know that under the Conservatives, only slightly more than 50% of board positions are presently filled. This board is tasked to “provide veterans and other applicants with an independent avenue of appeal for disability decisions made by Veterans Affairs Canada”. From time to time, far too many veterans know first hand that Veterans Affairs Canada makes mistakes it has to review.

That will continue as long as the government refuses to acknowledge the fact that services are being cut to the most vulnerable in our country, and it does not matter what part of the country we live in, but particularly to those in our rural communities. While services and programs are being cut, Canadians are being made to suffer.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I wonder if my colleague could provide some additional comment on the manner in which the government has brought budget bills, implementation bills, before the House, where it has introduced numerous pieces of legislation that should not be a part of the budget bill. Ultimately, I would argue, that the government is bringing in other legislation through the back door of a budget bill. This is the wrong way to bring in legislation, because it denies the opportunity to have a good, thorough debate on what should be individual pieces of legislation.

[Judy Foote, Liberal, Random—Burin—St. George's, NL]

Mr. Speaker, that has been raised throughout my riding, particularly when I go to an event and people are asking me what is in the budget. I do not have the kind of time it would take to explain to them what is in this particular budget and still have time to spend talking about other issues.

The reality is that these omnibus budgets have become the hallmark of this particular government. It has to change, because no parliamentarian has time to review every aspect of the budget. When the Conservatives lump changes to labour and changes that deal with the appointment of Supreme Court judges into a budget bill, it raises questions about what exactly the government is about. However, people know what the government is about. It is about hiding so that we cannot possibly know the ins and outs of what is in the budget because it is so large.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I listened with great intent to the speech that my hon. colleague from Newfoundland just presented. She spent quite a bit of time talking about EI premiums. There is always a discussion among Canadians as to whether it was actually $57 billion or $58 billion that the previous Liberal government took out of the EI fund when it was in power.

I wonder if she could clarify that number. Was it $58 billion or $57 billion? I am confused.

[Judy Foote, Liberal, Random—Burin—St. George's, NL]

Mr. Speaker, I appreciate my colleague's question and the bit of humour that he injected into it.

The reality is that for people who are on EI, who need to access the EI program, it is a program that they pay into as does the employer. It does not matter what government stripe is in power, this money is the money paid in by both parties, one who may need to avail themselves of it and the other who makes it possible for them to avail themselves of it. I do not care what political stripe is in power. We need to recognize the importance of this program. There are people who lose jobs through no fault of their own. They want to work. They need the support. It is not a handout, it is a hand up at a time when they need it. It is their money and their money alone.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, the official opposition, New Democrats, are strong supporters of a well-funded and effective EI system that can deliver quickly the benefits that employees and employers have paid into. My friend opposite is quite right that the money that is paid into the EI system is money that has been deducted from employees' cheques and is paid for by employers. It is the money of employees and employers.

The hon. member just said that is the case, that this is the money of employees and employers. Why did the Liberal government, 10 years ago or so, take over $50 billion of employees' and employers' money and transfer that into general revenue?

[Judy Foote, Liberal, Random—Burin—St. George's, NL]

Mr. Speaker, I can see that question is one that the official opposition wants to hang its hat on.

The reality is that it was done with approval at the time. Was it right? The Auditor General at the time said it was the right thing to do. Does it mean it should happen again? We never know what the circumstances will be, but when people need to avail themselves of the employment insurance program, they should be able to do it. However, under the Liberal government, I do not think people were not able to avail themselves of it.

Today, because of decisions by the Conservative government, people are having difficulty availing themselves of the EI program. The decisions the Conservatives are making are having devastating impacts with respect to certain components of the EI legislation.

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

Mr. Speaker, it is my pleasure to rise today in support of Bill C-4.

I will be focusing my comments on the proposed amendments within Bill C-4 that apply to the Public Service Labour Relations Act. This is in large part because of the misinformation and rhetoric that we hear from the opposition on the proposed amendments, which are of truly epic proportions.

Let me clear, the intent of these changes is to ensure that the public service is affordable, modern and high performing. I believe it is important to look at some of these proposed changes in greater detail in order to see what is actually being proposed.

It is true that Bill C-4 includes measures to modernize and streamline the collective bargaining process and the public service recourse system. I would like to take a moment to explain why these reforms are important for Canadians and for our public service. I will begin with the proposed amendment to extend the current four-month notice period up to 12 months. I am certain most would agree that providing more time would increase the odds that a new agreement could be reached prior to the expiry of an existing collective agreement.

Bill C-4 also proposes that the employer have the exclusive right to designate essential services. I would also like to speak to the importance of this amendment. Ultimately, the public service does not exist for the benefit of big public sector union bosses and their opposition political friends. The role of the public sector is to serve the taxpaying public, Canadians. By extension, a democratically elected government represents the interests of taxpayers and as such should have the right to identify what Canadians consider to be essential services.

This is an important point when one considers that an opposition member currently receiving money from unions is quoted as saying essentially that he could not be a bigger friend to them. I submit that particular member has all but conceded who he is looking out for, and it is certainly not the taxpayer. Likewise, the leader of the third party is also reported as receiving significant amounts of union money in speaking fees while sitting as a member of Parliament. Again, I point out that when it comes to the interest of taxpayers and public sector unions, only our government represents Canadians fairly and that is reflected in this piece of legislation.

Canadians know that it is the responsibility of government to maintain public safety and protect the interests of Canadians. It is part of what Canadians elect a government to do. For this reason, I submit it is entirely fair and reasonable that it is the democratically elected government on behalf of Canadians that should determine essential programs and services within the federal government.

I would also like to speak to the arbitration provision that exists within Bill C-4 for essential services employees. Arbitration would be the resolution mechanism in cases where a bargaining unit has 80% or more of the positions designated as essential or if both parties mutually consent to binding arbitration. Given that essential employees are not able to participate in strike activity, if no agreement could be reached, arbitration offers a meaningful dispute resolution solution while minimizing disruptions that could compromise the health and safety of Canadians.

Another proposed amendment I would like to highlight would require arbitration boards and public interest commissions to give greater consideration to the government's recruitment needs and fiscal circumstances. These amendments would ensure that the value of all salaries, benefits and other compensation, not solely wages, is considered when determining fair compensation. It also includes provisions that the public interest commissions and arbitration boards set out reasons, rationales, for making awards and recommendations. I believe that most here in this place would agree that this is common sense. Canadian taxpayers deserve to know the reasons behind decisions dealing with large amounts of tax dollars and this proposal would make that happen.

I would also like to point out another amendment that requires separate agencies to seek approval from the President of the Treasury Board before consenting to binding arbitration. This is an important amendment for the benefit of Canadian taxpayers who expect public sector compensation to be fair and reasonable. For the protection of the taxpayers, it is imperative that the President of the Treasury Board have the ability to review any terms and conditions that could have a significant impact on public sector compensation. I believe that a democratically elected government should not be powerless when it comes to the spending of tax dollars on public sector wages and benefits, and that is one of the many reasons why I support the bill.

Another amendment is the elimination of the compensation analysis and research function of the Public Service Labour Relations Board. This service has been negated by the fact that the bargaining agents consistently do their own research. As such, this amendment proposes the elimination of a rarely used service that will result in savings to the taxpayer.

I would also like to share some of the proposals that I believe will be of benefit to the public service. I believe all members of the House will agree that employees expect and deserve to be treated fairly. When conflicts occur, it is important to all sides that a timely and effective process be in place to deal with issues of concern. Although many of our current recourse mechanisms meet these objectives, over the course of time a number of additional processes and procedures have arisen. This has resulted in a complex patchwork of systems that at times is legalistic, is often cumbersome and is costly.

Bill C-4 proposes an amendment designed to simplify this process. The amendment proposes that the allegations of employment-related discrimination should be addressed through the grievance process. This amendment eliminates the potential for duplicate proceedings and related expenses, which can further delay workplace dispute resolution. This is a benefit for all workers.

I would also like to be clear on another point. All third-party rights to issue remedies to the public servant who complains of alleged discrimination will remain intact. Public service employees, as citizens, would still be able to file a Canadian Human Rights Commission complaint on matters other than workplace disputes. Bill C-4 would also require bargaining agents and the employer to share the expenses of grievance adjudication, with the exception of grievances related to discrimination. Sharing these costs is a standard practice in virtually all workplaces in Canada. I would ask why the federal government would be any different.

Another point I would like to raise is that Bill C-4 would require employees to obtain bargaining agent support before filing a grievance, except for grievances related to discrimination. I believe this is an important consideration as the union is recognized as the exclusive bargaining agent for the employees in the bargaining unit and has both the expertise and experience in this regard.

Bill C-4 also proposes a revised staffing complaint process. Currently, to be appointed to a position within the public service a person must be found qualified. If a candidate is deemed unqualified for a position, that person could challenge the appointment of another candidate through a complaint, clearly creating a potentially adversarial process. Bill C-4 would amend this process so that a candidate could only challenge the determination of his or her own qualifications and not those of another candidate deemed qualified for the position. This creates a much fairer, more efficient and less adversarial process.

The final proposal I will raise today is the consolidation of the Public Service Labour Relations Board and the Public Service Staffing Tribunal into a public service labour relations and employment board. Clearly this proposal reduces the overlap and duplication of bureaucracy to help avoid a lengthier and more costly process.

While there has certainly been a significant amount of rhetoric and alarmist language on the proposed changes I have spoken about, it is clear that on closer inspection these amendments are certainly responsible and reasonable. Bill C-4 will help to ensure the public service is affordable, modern and high-performing in a manner that respects the taxpayer and our public service.

I encourage all members of this House to support this piece of legislation.

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

Mr. Speaker, I am very proud to speak today on economic action plan 2013 act No. 2.

I believe that the results on which our country is now coasting, economic results that are the toast of the world over, relate to an approach to government and an approach to business for which this Conservative government is becoming renowned. It goes back to what a mentor once taught me many years ago when I was running a business in a very competitive environment in Taiwan. The lesson I learned was “may the niche be with you”. That means asking whether we can focus on something that is our calling, something that will lead us to success.

That is what I believe this government and this Minister of Finance have done, through more than seven successive, successful budgets. Again in this budget implementation bill, we see the same hallmarks of success.

Let us delve for a minute into what those successful results have meant for Canadians. What we have seen is the best economic results in the world. We have seen Canada's performance exceed that of all other G7 nations. We have seen over a million new jobs created since the recession began in July 2009. It is by far the best job creation record in the G7. Unemployment rates are below those of the United States; it is the first time in three decades that we have witnessed such an amazing, strong performance.

The International Monetary Fund and the Organisation for Economic Co-operation and Development have both said that Canada is likely to have the strongest growth in the years ahead. Our debt to GDP ratio is by far the best in the G7. In 2012 it was 34.6%. Germany was a distant second at 52%.

For the sixth straight year, the World Economic Forum has rated Canada as having the best banking system in the world. This would amaze the clients I dealt with in Asia when I practised law in that part of the world: Canada now has the lowest overall tax rate on new business investment in the G7. Canadians are facing the lowest tax burden in some 50 years.

Those are the hallmarks of success and the kinds of things we see implicit in this budget implementation bill. I say to people in government everywhere that if people could only follow the lead of this Conservative government's “may the niche be with you” focus on what is the priority for those it is governing, then we would see success everywhere.

Politics is renowned to be local, and I would like to just delve into some of the examples of these successful hallmarks as they have been manifested in the riding I have the honour to represent.

The first example is in the shipbuilding world. The hon. Minister of Public Works and Government Services announced, this month, a contract to Seaspan to build 10 additional large non-combat ships for our coast guard, in the Vancouver shipyards. This is a contract worth $3.3 billion. It is a blockbuster. It is going to create thousands of jobs, including many in the riding I represent.

That is just the beginning of the story. It is a story I would like to speak on for hours, not the few minutes that are allotted to me.

This Conservative government has seen a shipbuilding business, which was being written off as a sunset industry, become a sunrise industry in our great country. In addition to those thousands of high-paying jobs, we see economic development throughout the country. Industry analysts are saying that in total the national shipbuilding strategy is going to mean some 50,000 jobs across Canada and over $2 billion in annual economic benefit over the next 30 years. It is some sunrise industry.

This is one great example of “may the niche be with you”, how a focus on economic development and job creation is putting Canadians in good stead as we compete to create a truly international centre of excellence for shipbuilding in Vancouver.

A second example of how this government's laser-beam focus on the economy and jobs is creating success is in the pulp and paper world.

In the riding I represent, Howe Sound Pulp and Paper is one of the largest employers in one of the most important sectors in British Columbia. In 2010 a sizable amount of money was invested, not just in upgrading an important mill but in what was called the pulp and paper green transformation program, an excellent example of ensuring that the environment is the economy, a doctrine I am trying to cultivate both in the riding and throughout the country, a doctrine that suggests that our resources and our economy are not at odds with one another but instead are intertwined, something our Conservative government grasps and continues to endorse. We have seen this specific investment in the Sunshine Coast part of the riding I represent increase productivity in an environmentally friendly manner. “May the niche be with you”. We see that again being demonstrated in the pulp and paper industry.

More and more we are seeing that, in the world of the arts, this is an important economic driver. We have seen continued support by this government for the arts, in past budgets and directly or indirectly through the encouragement of this budget implementation act.

People are thronging to the riding I represent to attend festivals just like the two for which we announced funding in the last month, the Sechelt Arts Festival and the Sechelt written arts festival. These are two examples where our government, through a wise use of taxpayers dollars, is seeing those dollars leveraged over and over again by people in the arts who are in and of themselves demonstrating an international prowess that makes us the toast of the world in the arts while also creating economic development and jobs.

Let me move from shipbuilding through the arts to fisheries, another area where our government is investing and showing that when “the niche is with you” we can succeed.

In the last budget we saw two great strides forward for fisheries, and these came as a result of legislators representing British Columbians and other Canadians, who said we need to reward the amazing efforts of our volunteers who are improving fisheries habitat around the country. This is not just for the fisheries. This is for jobs and growth.

The recreational fisheries conservation partnership program was created, a great program that is seeding super projects around the country. Two of those projects were funded in the riding I represent, projects that will enhance fisheries habitat, that will encourage volunteers and will lead directly and indirectly to jobs and economic growth. I am speaking of the Evans Creek rewatering project and the Tiampo coho restoration project submitted by the Squamish Watershed Society. Kudos to the Sea to Sky Fisheries Roundtable and Pacific Salmon Foundation, which collaborated to make those a success. In the last budget, we saw enhanced support for the Pacific Salmon Foundation, one of the best volunteer organizations in the country.

These are all examples of how the Government of Canada has continued to support and build up successful industries, not only in British Columbia but throughout Canada. The niche is with this Conservative government. As a result of the government focusing on jobs and growth, both in the budget implementation act and in all of its actions, Canadians are benefiting and we continue to be the toast of the world.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, in my area we are witnessing a return of investment in the auto industry. The government did not want to do that at first, and it was brought kicking and screaming to the table. However, there has been a rebound of some degree. The reality is that our auto industry has not picked up like that of the United States and other countries where the industry is growing. Our industry is recovering but not to the same degree as the American industry.

Does my colleague have any comments with respect to the auto industry and what we could do to enhance it? Why is the Canadian situation different from that of the rest of the world?

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

Mr. Speaker, I thank my colleague for his question. I think that is the case for any industry we might discuss. Our unemployment rate is lower than that of our G7 competitors and considerably lower than the U.S. rate. This is the first time in 30 years that we can say that Canada is doing better than the United States. I believe that there has been an upswing in all industries, including the auto industry. Things are not perfect by any means. We have a lot of work to do, but this is really a great success. We have to congratulate our Minister of Finance and our Prime Minister for their leadership in this area.