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

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 9, 2013 Passed That the Bill be now read a third time and do pass.
Dec. 3, 2013 Passed That Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 471.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 365.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 294.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 288.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 282.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 276.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 272.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 256.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 239.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 204.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 176.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 159.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 131.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 126.
Dec. 3, 2013 Failed That Bill C-4 be amended by deleting Clause 1.
Dec. 3, 2013 Passed That, in relation to Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 29, 2013 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Oct. 29, 2013 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give second reading to Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, because it: ( a) decreases transparency and erodes democratic process by amending 70 different pieces of legislation, many of which are not related to budgetary measures; ( b) dismantles health and safety protections for Canadian workers, affecting their right to refuse unsafe work; ( c) increases the likelihood of strikes by eliminating binding arbitration as an option for public sector workers; and ( d) eliminates the independent Canada Employment Insurance Financing Board, allowing the government to continue playing politics with employment insurance rate setting.”.
Oct. 24, 2013 Passed That, in relation to Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, not more than four further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the fourth day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

November 27th, 2013 / 7:35 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

This amendment seeks to preserve the compensation analysis and research service, which the government is eliminating under Bill C-4 .

We believe that informed decisions tend to be better decisions. We think it's important that there be independent research and support for arbitration decisions. We think this clause makes no sense. I suppose if you're operating in the dark you can make whatever decision you want, but it's probably not going to be the best decision. We think the more information the better, and that's what this amendment speaks to.

November 27th, 2013 / 7:20 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Chair, here we are dealing with yet another Conservative omnibus budget implementation act, and a very significant portion of this act includes changes to public service labour relations. You have to ask yourself what the heck does that have to do with the budget bill, and why would a labour relations bill be dealt with in our committee. It's once again problematic that so much is crammed into this one bill with very diverse content.

Later on we'll be dealing with appointments to the Supreme Court, and we've just dealt with a section on immigration. The ridiculousness of this is very frustrating.

These changes to the Public Service Labour Relations Act are very troubling, and I have to ask the government if they really want to prompt a deterioration of labour relations in the public sector. That's what's being provoked with these changes. I don't know, maybe the government thinks it's good politics to poke its finger in the eye of hard-working public sector workers, people who are paid with our tax dollars but who work very hard and do an excellent job on behalf of Canadians.

The government's belt-tightening has already seen the layoff of more than 20,000 public sector workers. Many are working very hard. We have heard a lot of complaints, whether it's from veterans, from seniors, from people trying to get access to EI, or from people concerned about cuts to search and rescue, services that have been cut and in some parts of the country are simply impossible for Canadians to get access to. These are public services. This is the work of the public sector and those are the jobs we are talking about.

This first change is about the definition of “essential service”. What the government is proposing with Bill C-4 is to give the minister sweeping powers to designate groups of workers as essential. That may sound like a good thing. We can all imagine essential workers. If your house is on fire, you don't want the firefighter to say, “I can't come right now because there is a labour issue that I'm dealing with”. There are some situations where it makes sense for there to be a designation of an essential service, but there is no definition provided here, or list of criteria that objectively one can point to, to say what would make some services essential and some not.

There is real concern that these powers will be used by the minister to designate groups of workers as essential, strictly for the purpose of undermining the ability of that bargaining unit to bargain collectively and defend their workers' rights. The definition of “essential service” that does appear seems to run contrary to the conventions of the ILO, the International Labour Organization.

This amendment would change the definition of “essential service” to reflect the definition from the ILO. The ILO provides an internationally recognized definition, and that's what is provided in this amendment.

We believe the important status of essential workers should be based on actual criteria rather than a loose definition that leaves the minister the power to designate people at will and strip them of their full collective bargaining rights. We think this is fundamentally undemocratic. It runs contrary to conventions that have been internationally agreed upon, and it is a dangerous slippery path that this government is going down.

It would give the minister incredible arbitrary powers, and as one of the witnesses said to us, it's like giving Coca-Cola, which is one of two parties in collective bargaining, in labour relations, the power to say that whole groups of employees in their workplace are designated essential and unable to exercise their full collective bargaining rights, their full labour rights, because it suits the employer, and it's convenient and perhaps advantageous for the employer. That is the power the minister is giving himself with these changes.

We think that's fundamentally wrong. We've had several labour experts testify here and tell us why that is wrong and why it's an affront to the practice of labour relations and to all of our experience in Canada and internationally.

On this particular clause, we're proposing an alternative, which is an agreed-upon international definition, which would give some clarity and some balance to the collective bargaining relationship, rather than really tipping the scales to the side of the employer, which in this case is the government.

Thank you.

November 27th, 2013 / 7 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Thank you, Mr. Chair.

I won't repeat the points that were just made by my colleague. I support them and I support this amendment.

Let me just add that the parliamentary committee tasked with undertaking a statutory review of this act has yet to report its recommendations. It's being pre-empted by the change in this clause in Bill C-4. It's unclear where the government is getting its advice, and why it's making this change and why the rush. There is a parliamentary committee looking into the Conflict of Interest Act, and we await the conclusion of its review and its report.

There have been some recommendations made by the conflict of interest commissioner, but they do not seem to reflect the recommendations she has made. As was said, it gives the Governor in Council sweeping powers to designate anyone, or whole groups of people, as public office holders, therefore making them subject to the act.

We believe the government would be far better to wait for the conclusion of the statutory review and then act accordingly.

November 27th, 2013 / 7 p.m.
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Liberal

David McGuinty Liberal Ottawa South, ON

Mr. Chair, I welcome this opportunity to comment on division 15, part 3, of Bill C-4. These provisions would amend the Conflict of Interest Act. Why they're in a budget bill is beyond me, but they are.

Mr. Chair, as members know, the act already applies to some 3,000 federal public office holders. Approximately 1,100 of these public office holders are reporting public office holders.

These amendments are inspired chiefly by the excellent work of a senior partner at Fasken Martineau DuMoulin, who heads up the firm's government ethics, transparency, and political law practice, one Guy Giorno, former chief of staff to the Prime Minister of Canada and former chief of staff to the Premier of Ontario. He has presented to the committee an extremely well-reasoned brief with respect to these changes.

We know that the current exceptions under the act are narrow. They apply to full-time ministerial appointees. However, clauses 288 and 289 of the bill are going to add an additional open-ended category of membership in the public office holder and the reporting public office holder groups, specifically any person or class of persons designated by cabinet.

This pretty much means, Mr. Chair and colleagues, that cabinet's power to designate new public office holders and reporting public office holders would be unlimited and could be based on virtually anything. The minister may think that someone with blue eyes should be designated as opposed to someone with green eyes, somebody who wears black suits as opposed to blue suits. There's no criteria. It's unlimited and far-reaching. It places no restrictions whatsoever on cabinet's power to designate individuals and classes of individuals as being subject to the act.

The government has not indicated who, if anyone, might be designated if these provisions are in fact passed and come into force. The budget is silent on this point. In fact, Mr. Chair, the budget plan never suggested that the Conflict of Interest Act should or would be amended. On the contrary, the budget plan said—and here I think the budget plan was right—that other financial sector statutes should be amended to bring them in line with the Conflict of Interest Act as it presently is constituted.

The Canadian Bar Association is opposed to these changes. It wants to see other changes that would catch important offices, such as the Governor of the Bank of Canada, who is presently excluded from the act.

These amendments seek to circumscribe the power of cabinet to designate anybody it feels it should designate. All colleagues should be extremely worried by this kind of wording, in terms of our present and future lives.

I wanted to open up with those comments, Mr. Chair, and I welcome comments from colleagues.

Thank you.

November 27th, 2013 / 6:55 p.m.
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NDP

Murray Rankin NDP Victoria, BC

Thank you, Chair.

We support each of the amendments by the Green Party that were proposed a moment ago by Ms. May.

On the merits of this division, in clause 282 in particular, the changes would concentrate more power in the hands of the minister by creating a new entity to pay organizations to carry out projects to mitigate socio-economic impacts for communities in the Northwest Territories, in place of what is currently in place, an arm's-length corporation, which I think raises serious concerns about accountability and transparency and funding decisions.

The omnibus bill before us, Bill C-4, would repeal something that created a crown corporation established to administer the Mackenzie gas project impacts fund and would give the job to the minister. The minister would have up to $500 million to play with, kind of like the EI fund which successive Liberal and Conservative governments have plundered. We don't want any more concentration of power in ministers and more political discretion given to them, and therefore, we would oppose that.

November 27th, 2013 / 6:55 p.m.
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Conservative

The Chair Conservative James Rajotte

Amendments PV-16, PV-17 and PV-19 are in order, but I have a ruling on amendment PV-18.

Bill C-4 seeks to establish the Mackenzie gas project impacts fund to fund projects that mitigate existing or anticipated socio-economic impacts on the communities in the Northwest Territories. The amendment attempts to establish a committee to advise the minister on the administration of this act.

As House of Commons Procedure and Practice, second edition, states on pages 767 and 768: Since an amendment may not infringe upon the financial initiative of the Crown, it is inadmissible if it imposes a charge on the public treasury, or if it extends the objects or purposes or relaxes the conditions and qualifications specified in the royal recommendation.

Therefore, in the opinion of the chair, the amendment proposes to establish a new committee, which would impose a charge on the public treasury. I therefore rule the amendment inadmissible.

I also have a ruling with respect to amendment BQ-3.

Bill C-4 seeks to establish the Mackenzie gas project impacts fund to fund projects to mitigate existing or anticipated socio-economic impacts on the communities in the Northwest Territories. The amendment attempts to increase the amount available for the fund from $500 million to $633 million.

As House of Commons Procedure and Practice, second edition, states on pages 767 and 768:Since an amendment may not infringe upon the financial initiative of the Crown, it is inadmissible if it imposes a charge on the public treasury, or if it extends the objects or purposes or relaxes the conditions and qualifications specified in the royal recommendation.

In the opinion of the chair, the amendment proposes to increase the amount of the fund, which would impose a charge on the public treasury. Therefore, I rule the amendment inadmissible.

Colleagues, we will be voting on amendments PV-16, PV-17 and PV-19, but I will allow further debate on clause 282 and these amendments.

Mr. Rankin, go ahead, please.

November 27th, 2013 / 6:50 p.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Chair, within omnibus Bill C-4, we are now at division 14, which relates to changes to the Mackenzie gas project management.

Historically, the Mackenzie gas pipeline project and its attendant governance structures have been impressive and also based on the multi-stakeholder, multi-partite relationships that exist in the Mackenzie Valley in order to ensure that the various first nations communities, the territorial governments, and others were involved in managing funds.

This moves us in the direction, as so much of this act has done, to ministerial discretion instead of the boards that were there before.

I'll move quickly through my specific amendments.

PV-16 is to amend the purpose clause of this section. It actually adopts language that is currently found in the Northwest Territories Heritage Fund Act, to include in the purpose of the act that it is for “present and future generations”. The impact of amendment PV-16 is to add the focus on future generations as well as present generations.

The changes that are being made to clause 282 are replacing lines...that essentially operate, under amendment PV-17, to inject sustainable development criteria that the minister would consider in determining which projects were eligible for contributions. We are trying to ensure, through this amendment, that a joint review panel reports and that the ongoing consultations that led us to where we are today would be honoured; and proposed new section 8.1 would ensure the criteria for determining the projects in respect of contributions; would include such things as socio-economic impacts; would consider adverse cumulative effects; would consider adverse cumulative effects not only on the ecosystem but on economic, social, and cultural well-being, inequities in relation to positive effects within and among communities, any adverse impacts of boom-and-bust cycles that tend to be attendant to projects like this, where most of the jobs are in construction and then things fall away; and adverse cumulative impacts of the project overall. That's amendment PV-17.

Amendment PV-18 amends the act in terms of the creation of advisory committees that will advise the minister on the administration of the act, again trying to counterbalance the level of ministerial discretion that is being injected here, and ensure that the fund is administered with respect to community needs. It's a response to the replacement of the corporation by the minister. It had been the corporation in the past, as I mentioned earlier, which was seen as fairly neutral and independent.

The last of this group of amendments, amendment PV-19, ensures that there will be a report tabled in Parliament to report on the use of the fund and progress that's being made in meeting the objectives of the act.

These are very consistent with the changes that Bill C-4 is putting forward, but they bring back the changes to meet the objectives of the project to date, in other words, a commitment to future generations, a commitment to sustainable development, and more public transparency as to how the minister is distributing funds found within the Mackenzie gas project's impact fund, which is being created here.

Thank you, Mr. Chair.

November 27th, 2013 / 6 p.m.
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Conservative

The Chair Conservative James Rajotte

I call this meeting back to order.

This is meeting number 12 of the Standing Committee on Finance, continuing our discussion of Bill C-4, clause-by-clause consideration.

Colleagues, we left off at clause 270. Will we deal with clause 270 separately?

November 27th, 2013 / 5:40 p.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Yes, certainly. I'm fine with that.

My amendments to these sections, beginning with PV-7 and going through to PV-12, are all relating to division 7, as you will know, which is an extremely important section of Bill C-4. Unfortunately, this is one of those examples of where it would have been so much more preferable to have this in stand-alone legislation.

This relates to the disposition of a substantial chunk of lands that were known as the Dominion Coal Blocks. They were tied up in very old legislation, under the Crow's Nest Pass act, and held by the federal government, but they've also been the subject of significant research and advocacy, because they are part of the proposal for Flathead national park.

They're part of a very significant and valuable ecosystem that is particularly important as a wildlife corridor. It's the Flathead and Elk valleys of southeastern British Columbia, in the riding of our friend, Dave Wilks. Mr. Wilks is well aware of the conservation values here, as are we all. It's also the traditional territories of the Ktunaxa First Nation. I know that first nation has been consulted through this process. They have been the stewards of this land for 10,000 years, so they have something to say about it, and their rights must be respected in this.

The intention of the sale is to open up mining. By the way, there are international concerns as well. UNESCO has declared the Waterton Glacier International Peace Park as a world heritage site, so there is also concern internationally about whether the development of coal mining operations in this area would in any way diminish the ecosystem values found in a world heritage site.

It's hard to overstate the significance of this particular part, division 7 of Bill C-4, in terms of the biodiversity obligations of Canada under the United Nations Convention on Biological Diversity, under our Canada National Parks Act, and in the interests of future generations.

Mr. Chair, to give you a sense of what I'm attempting to do in my amendments, PV-7 is to create a buffer zone. There would be a two-kilometre inward buffer zone so that there would be a preservation of ecological integrity around the boundaries of wherever there was to be development of coal. We do know that Teck is very interested. This will likely be one of the ways that Canada gets itself out of deficit, by selling off our assets in this way.

The second amendment, PV-8, goes to ensuring that there would be a statutory responsibility that no negative environmental effects would be allowed to the Flathead watershed associated with the sale of the Dominion Coal Blocks.

The third amendment, Mr. Chair, goes to ensuring ongoing consultation with all the key stakeholders. I know there has been discussion, from the briefing we had with officials, but this is to make sure that continues as a matter of statutory obligation.

The next amendment, Mr. Chair, again goes to reinforcing the buffer zone so that if there is a further disposition of lands beyond the one that takes place at the outset, the buffer zones will be protected.

PV-10 speaks to ensuring that within that buffer zone there would not be any activities that would be of the nature of resource development.

PV-11 wants to make sure, and would ensure as a matter of statute, that the Governor in Council would have to ensure there were no negative environmental impacts to the Flathead River watershed from the sale.

The most interesting one, although certainly they're all important, is PV-12. I really recommend it to you because this could be very creative, and I think it will be well received by all stakeholders. It's to ensure that there be a restrictive covenant that runs with the land, so that before disposing of this land we could ensure that any new owner would be required to maintain and preserve the ecological integrity of the land.

Restrictive covenants are used quite commonly across Canada these days for conservation purposes. It would not mean that the Dominion Coal Blocks were not then used for resource development, but as the land was disposed of and sold to private commercial interests, the commitments to maintain ecological integrity would run with the land—not just in the case of a Teck, which is a company with a particularly good reputation, but in the case of others down the road—so that we would be able to protect the ecological integrity of the Flathead. With these amendments, I hope it would be possible to continue moving forward with Flathead as a national park.

These are not trivial concerns. We want to make sure that we watch for the pollution that could be taking place with toxic chemicals, which tend to be involved in acid-mine drainage, with selenium and other substances that could be very negative for the local ecosystem.

I'm getting a bit of a sign from you, Mr. Chair, that this is probably where I should wrap up.

I really hope my colleagues will consider these seriously, because they would be very well received, I think, by all stakeholders.

November 27th, 2013 / 5:35 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Bill C-4 would introduce electronic enforcement of the Canada Labour Code. Given that the Conservative government through Bill C-4 is already making very drastic changes to health and safety—we've talked about that; the drastic changes would reduce health and safety protections in the workplace, put workers at risk across this country—in this light, we're very concerned that the power to administer this particular act electronically could further undermine the rights of workers who want to object to dangerous situations.

Our concern is, for example, that if someone is wanting to refuse to work, there could be no visual inspection of the workplace and maybe a phone call or an e-mail might suffice, but we believe that a visual inspection is essential where there are serious problems in the workplace. That's what our amendment would provide for.

November 27th, 2013 / 5:25 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Chair, the notion that somehow, if you are told that you don't have a work refusal and you have recourse to the Canadian Human Rights Act is a bit ludicrous. Presumably you're refusing work because you believe that your health and safety are in danger. As we know, human rights legislation involves a very lengthy process and is the antithesis of a speedy resolution of a health and safety measure.

Frankly, it's absolutely not a solution to an appeal process. If somebody believes that their health and safety are in danger, especially if their refusal is rejected by a phone call from somebody who perhaps isn't even qualified to make that decision, goodness gracious, we could be putting people's lives at risk. I think that having some kind of basic appeal is pretty standard and would add greater transparency and safety to the workplace. I think that has to be paramount in all our minds as we contemplate this legislation.

In how many workplaces do you see safety is job one? It ought to be our job one when we are thinking through the impact of these clauses in Bill C-4. People's health, their limbs, their lives, could depend on the decisions we make. It sounds dramatic, except that bad things happen, and I think our obligation is to do the most we possibly can to ensure that people are protected and that their rights are enforced. Frankly, in a safety situation, recourse to human rights legislation, which could take years, is not a solution.

November 27th, 2013 / 5:20 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Chair, this amendment would require that any individual to whom the minister delegates his or her health and safety powers, which is the ability that would be granted through Bill C-4, in fact is qualified to exercise those powers, which I'm sure everyone in this room would think is kind of basic. If you're going to give powers to someone to enforce the law, they actually should be qualified to do so. The person who is being delegated with this power would have the appropriate training in occupational health and safety or at least have the equivalent experience. That is what our amendment proposes.

November 27th, 2013 / 5:15 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Yes, this is about making sure, given that the minister is concentrating all the power in his or her office, that he or she is getting a full picture of what's going on in a workplace.

Right now what Bill C-4 would do is, if there is a health and safety committee and the committee is not unanimous on a decision or points of view on something, only the majority decision or the majority viewpoint would be reported to the minister. However, there may be a diversity of opinion. There may be a minority opinion. We believe that the minister ought to get all the information. If a decision is not unanimous, we think that all the results should be passed on to the minister.

That's what amendment NDP-10 would do.

November 27th, 2013 / 5:10 p.m.
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NDP

Peggy Nash NDP Parkdale—High Park, ON

Under existing legislation, a health and safety officer can require the posting of notices in any location, but under clause 177 of Bill C-4, that power is eliminated.

This amendment would allow the minister or his or her delegate to require multiple postings in a workplace, as had been the case previously. One can only imagine very large workplaces with great distances between people and the ability.... I have seen situations in which something is posted, but it's in the supervisor's office, or it's in a place that's not easily accessible to the majority of workers in a workplace.

The ability to have multiple postings of notices is just a practicality. I have no idea why the government would want to eliminate that possibility. If there's a notice that can help protect people's health and safety, goodness gracious, surely we would want them to be aware of it. Or if there's an order for the employer to do something in the workplace, this is a good check and balance so that the people who work there every day can make sure that it happens.

Our amendment would basically require the status quo, that the officer have the ability to require multiple postings. This was the case previously.

November 27th, 2013 / 5:10 p.m.
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Conservative

Andrew Saxton Conservative North Vancouver, BC

Thank you, Chair.

I thank my colleague, Mr. Jean, for making that very important point.

What we're proposing here in Bill C-4 is designed to ensure clarity, oversight, and consistent application of the Canada Labour Code across work sites, employers, and industrial sectors. Health and safety officers will continue to play an important role in enforcing the Canada Labour Code.

Ms. Nash's and Ms. May's proposal is not feasible legally as a definition of a term. For example, “health and safety officer” cannot be included when that term is not used within the legislation. As well, the term “federal public administration” would affect the minister's ability to delegate to an employee of a province. We cannot support either of their amendments.