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.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 4:55 p.m.
See context

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I wonder if my colleague would comment briefly on her impression of the importance of the $1000 EI credit that is going to help small and medium-size employers create more jobs. In my area, most of the jobs created are created by small and medium-size employers that employ between 10 and 50 people. The hiring credit in my area is a very important part of the budget, of Bill C-4. I wonder if my colleague could comment on the importance of that in her area.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 4:55 p.m.
See context

NDP

Nycole Turmel NDP Hull—Aylmer, QC

Mr. Speaker, I really like that question. That is precisely what we want: to divide Bill C-4 and pull out the measures that could help people.

The government puts 70 measures in a 300-page bill and tells us that we have to accept all or nothing. That is what it is forcing us to do. We cannot support the majority of the items in Bill C-4. We could support others, but if we want to work on dealing with the economic situation for all Canadians, we need to have discussions. This will not happen if the government keeps holding in camera meetings and gagging members when we are talking about a bill.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 4:55 p.m.
See context

Selkirk—Interlake Manitoba

Conservative

James Bezan ConservativeParliamentary Secretary to the Minister of National Defence

Mr. Speaker, it is indeed a pleasure to rise today to speak on behalf of my constituents from Selkirk—Interlake about how important the building Canada fund is to our municipalities and about the importance of our economic action plan to our farmers, commercial fishers, and small businesses throughout the riding.

This fall, as I do every year, I went on a tour. My riding is bigger than Nova Scotia. It is 56,000 square kilometres. I went out in September and drove over 6,000 kilometres. I visited more than 55 communities, multiple times, to see how things were going, to talk to people on the street, to visit people in the coffee shops, to meet with my municipal leaders, and to meet with businesses and tour their operations. It was to just get a good feel for how things were going.

I can tell the House that the one thing my municipal leaders were telling me was that they are excited about the new building Canada plan. They really believe that the $53 billion commitment we would make over the next ten years would greatly benefit them.

The one thing they are extremely excited about is the community improvement fund. There would be over $32 billion available to them to invest in their public community places, roads, and recreational facilities.

They really appreciate that first of all, we have made the gas tax fund a permanent fixture in ongoing transfers from the federal government to municipalities. They appreciate that we doubled the gas tax fund a couple of years ago. Now we would untie it so that they could actually use it for whatever they see as being important to them rather than just for green infrastructure or things that help with mass transit. These do not really work well in rural municipalities, because we do not have buses in most of my communities. We do not have a rapid transit system in any of them. Actually having the gas tax fund untied so that they could use it on roads and public places, such as halls and recreational facilities, skating rinks, or the curling rink is important to small, rural communities. It is important, because that is where people gather, meet, have fun, get healthy, and see their kids or grandkids participate in sports. It is important to have those community focal points invested in through the gas tax fund, and now through the building Canada fund, because of the changes we would make to the community improvement fund.

There would be over $14 billion in the building Canada fund to be used on provincial, national, and regionally significant investments. We know that this could be anything from investing in port facilities to help with our trade to ensuring that we have expanded highways and artery systems to move our truck transports and commuter transports to make our roads safer. I know that it is also extremely important to my communities.

We would also see the ongoing investment of $6 billion for the continued existence of the infrastructure programs we already have in place with the provinces, municipalities, and territories for 2014-15 and beyond.

These are big, significant improvements for those municipalities or major projects that want to look at private-public partnerships. The P3 fund is also there for them. We have renewed that at $1.25 billion.

Of course, the riding of Selkirk—Interlake is a large, agricultural riding with grain farming, ranching, and a lot of mixed operations. The measures in the budget really do speak to their ability to continue to grow and prosper and take advantage of marketplaces, as we just saw with the new comprehensive economic and trade agreement with Europe. The European Union is a huge market that is now available to my farmers, ranchers, grain farmers, and beef and cattle operations. They are all really excited about that trade deal.

One thing in this budget they are excited about and that really would help the next generation enter farming is the doubling of the restricted farm loss income tax rule. For more than 20 years, it has been $8,750 per person who works part-time. They can claim that amount of their off-farm income as a restricted farm loss. That actually works to their benefit. We would double that to $17,500. That would really help with those new entrants who still have off-farm jobs. In reality, if we look at it, about two-thirds of farmers today have off-farm employment.

This is a really good measure to help out younger farmers and to help those who rely on off-farm income take some of those earnings and use them against any of their farm losses. It is a really positive measure that people in my riding are talking about.

The other thing they appreciate is our changes to the lifetime capital gains exemption. Not only have we increased it to $800,000 per person, but we have indexed it to inflation so it will not erode. We will not have to continually increase the lifetime capital gains exemption for those farmers who are exiting the industry or making sales. This exemption will be in place against any of their lifetime capital gains.

This is important not just to our farmers, but to our commercial fishers and our small businesses. It helps with the intergenerational transfer of those operations, whether it is the ma and pa store, or a family farm operation, or a family commercial fishing operation. It helps with those transfers to the next generation.

We often talk about those farmers who live pretty much cash poor and asset rich. They are sitting on a lot of land or sitting on a lot of capital assets, but they often do not realize their true economic net worth, because they have had some difficult times in the marketplace. If they have had good times, like they are having this year in both the cattle industry and the grain industry, they invest back into the farm, buy more land, more equipment and machinery and pay off debt. The only time they really get to cash out is when they transfer their farm operations to the next generation. This really comes into play for a farm operation, whether it is a family operation, a partnership with other families, or a corporation. Even corporate farms in my area are still family farms. They have just been incorporated because that is the best way to go forward from the standpoint of a tax basis.

The other big announcement is our continued support for Genome Canada of $165 million. The biggest benefits that have been generated in both western and eastern Canadian agriculture have been through animal and plant breeding. Those increases in productivity, the ability to reduce the need for more input into our farm operations because of better plant and animal breeding really does pay off dividends and puts money into the pockets of our farmers. The cattle industry, the hog industry and the grain and oilseeds business are really excited about that.

A lot of people are often shocked to learn that Selkirk—Interlake in Manitoba, out in the Prairies, has a huge commercial fishery. It too will benefit from things that will happen through the budget. I talked already about increasing the lifetime capital gains tax exemption and indexing it to inflation, but our fisheries overall, from both the commercial and recreational standpoint, is so important, like at Lake Winnipeg and Lake Manitoba.

This budget contains a $10 million conservation fund to help enhance the fishery and to help protect wildlife habitat to ensure that those highly-valued fish species that people want to catch, whether it is walleye, northern pike or even mullet, are protected and that it will not just protect the habitat, but enhance tourism and opportunity and work toward the overall fishery from both a commercial and recreational standpoint. The focus really is on recreational fishing and all the tourism dollars and the enjoyment that people get out of fishing.

The streets in my community are completely loaded with small business enterprises. This budget really speaks to them. The main reason we have seen one million net new jobs is because of our small businesses first and foremost. They represent 98% of all businesses in Canada. Over two-thirds of Canadians work in small and medium-sized enterprises, and they make up a large portion of my riding from a business standpoint. The lifetime capital gains exemption works for them.

The budget also contains a hiring credit for small business of $225 million for one year. This will help them increase employment and job opportunities in our riding. We are extending and expanding the hiring credit for small businesses. The costs associated with creating those jobs will be offset as a result of this budget.

We are excited about what is happening and how it is impacting my riding of Selkirk—Interlake.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:05 p.m.
See context

NDP

Ève Péclet NDP La Pointe-de-l'Île, QC

Mr. Speaker, I have a question for my colleague.

Since the Conservatives got a majority in 2011, environmental regulations have been deteriorating and we have been seeing some problems with science in particular. For example, the government has eliminated some scientist jobs and has prevented scientists from speaking.

My question is about a provision in Bill C-4. Why continue in the same vein? My colleague represents an agricultural riding and he has young girls. I know he has a very lovely family. Why is the government eliminating jobs at the country's most prestigious research centre, the National Research Council of Canada? Why is it attacking science? Why is it eliminating nearly half of all scientist jobs?

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:05 p.m.
See context

Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, I thank my colleague for the compliment to my family. We have had a chance to work together on a number of issues and I do appreciate her comment.

On the issue of environmental permits, we as a government have reduce the redundancy and duplication of services between different jurisdictions. That has saved money for municipalities, provinces and businesses, including agricultural operations, on having to go through the exact same process at the municipal, provincial and federal levels to get permits. It is not about reducing the need for science, because science is still the determining factor on the environmental permit. Rather, we just do not need every level of government rubber-stamping the exact same process.

We are trying to make it simpler, easier and reduce red tape, not just for businesses but for the farmers, fishers, municipalities and provinces that are trying to do the right thing and ultimately still putting the environment first.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:10 p.m.
See context

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I have had an opportunity to go to my friend's riding of Selkirk—Interlake. It is a great spot. We visited just after the major floods that I believe happened about four years ago. I know a lot of the talk around that time concerned global warming and was that what was to be expected going forward.

The concern I have, which is not dissimilar to the last question, has to do with science and the science sector. We see this outcry from scientists over the last number of months, and really the last couple of years, stating that science has been devastated. We have heard that from Environment Canada and the Department of Fisheries and Oceans. I am sure the government is taking money from all other sources and, like a shell game, moving it around.

What is my colleague's take on the outcry from the science community? Are we to pay no attention to what it has been saying? It is adamant that the government has turned its back on science. I would like his comments on that.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:10 p.m.
See context

Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, in the last Parliament I chaired the environment committee. I am proud of the work that we do through Environment Canada. A lot of people do not realize that Environment Canada is the fifth largest research organization in the world. The four larger ones are in the United States. However, the largest in Canada is Environment Canada. Its scientists are still undertaking significant research, publishing peer review papers and out there speaking.

Whether it is Environment Canada, or Agriculture Canada or Health Canada, those scientists are out there making their presentations and talking to the media. We may hear from a few sour grapes from time to time because some scientists have not been able to get out there and say what they want. However, that is because they are not talking about their science. Rather, they are talking about other issues. If they go through the proper steps and processes, they can get out there and speak about their research. We see that all the time. There are thousands of documents published annually, hundreds of speeches given by our scientists and that has not changed one iota.

The overall science need has not been reduced. It has been refocused. We want to ensure that we address the concerns brought forward by Canadians. That is where we are focusing our work.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:10 p.m.
See context

Bloc

Jean-François Fortin Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Mr. Speaker, first, I want to thank you for giving me the floor today. Having the chance to speak to the budget implementation bill is very important.

Again, the federal government is using a so-called budget bill that is being described as “mammoth” to push its regressive ideology and pass controversial measures that have never been discussed in public before.

Before we can even debate the substance of the bill or consult people and interest groups, the government imposes a gag order. This is generally recognized as a practice to be used as an exception. The government is once again limiting review of budget Bill C-4.

This bill and the measures it contains are far too important to pass hastily without any real debate or a true impact study that would inevitably take place.

This bill is more than 300 pages long and affects more or less 70 statutes. It would have been important, even essential, for us to take our time and split the bill to do it justice and make proposals to amend it and make general changes, which would have allowed us to work on it properly.

The Conservatives claim that the bill focuses on the economy, but that is far from true. Bill C-4 will, once again, affect a host of different areas, and some of the changes that will result from the bill will have an adverse effect on Quebec, the regions, businesses and workers.

I have some examples. Bill C-4 would eliminate the federal tax credit on labour-sponsored venture capital corporations, which, back home, are commonly referred to as workers' funds. They are very common in Quebec and they play an important role. For instance, there is the Fonds de solidarité FTQ and the CSN's Fondaction.

These funds are quite prevalent in Quebec. Traditionally, they served as significant development tools in our communities and helped create and maintain tens of thousands of jobs, strengthen communities and breathe life into the economy where regular instruments, such as bank loans, were not as appropriate and could not play the important role that these workers' funds could play as development tools.

In my riding alone, I found real-life examples of cases where, at some point in time, these funds were crucial to a company's development. I can list some businesses that used them and benefited from that money when they needed it. Those companies include BSL Wood Products, Projexco, Meridien Maritime, Richard Poirier & Frères Électrique, La Pourvoirie de la seigneurie du lac Métis, Les Distributions Arnaud, and the list goes on and on. Those funds useful to those companies because they gave them access to venture capital at an important point in their development.

Here is another example. In the bill that has been introduced, which once again penalizes Quebec, there is talk of Supreme Court justices. The federal government has picked a fight with the Government of Quebec by appointing a Supreme Court justice who was not on the list submitted by the Government of Quebec and does not meet the criteria set out in legislation.

The Supreme Court has to include three justices from Quebec, and with good reason. Civil law is quite different from Canadian law, and the justices who sit on the highest court must be able to rely on sufficient expertise to be able to rule on significant, complex civil law issues. In addition, in many of the existing legal cases—between Ottawa and Quebec, for example—it is only natural that Quebec should be able to rely on three justices who are attuned to the province's unique characteristics.

Justice Nadon decided to step aside temporarily because his appointment is being challenged. That was the right thing to do, except that the federal government has decided to refer Justice Nadon's case to the Supreme Court. Now, the Supreme Court will be both judge and judged in this case. That is absurd. There should have been an independent review to clarify this unthinkable situation.

Not wanting to be defeated in this dispute, the federal government is trying to use Bill C-4, which is before us today, to amend the Supreme Court Act to make Justice Nadon's appointment legal—after the fact, of course.

For the Bloc Québécois, the changes in Bill C-4 that have to do with the period of time during which an appointee had to be a member of the Barreau du Québec are nothing short of an admission of the shortcomings that tarnished the entire procedure to appoint Justice Nadon.

I would point out that that appointment was unfortunately approved by the Conservatives, but also by the Liberals and the NDP, who included Justice Nadon on their list of the three top candidates.

Rather than changing the legislation to try to save face, the federal government should just face facts: it must appoint judges to the Supreme Court who really represent Quebec, from the list submitted by the Government of Quebec. There is no other option.

This is not the first time Quebec has been aggrieved in a situation relating to the role of the Supreme Court. Hon. members may recall, for example, the allegations made by historian Frédéric Bastien, who revealed that the Supreme Court had overstepped the bounds of proper behaviour.

Bill C-4 also includes a measure to eliminate the Canada Employment Insurance Financing Board. We saw this coming. There is nothing really surprising about this government and its way of doing things.

This was clear with the employment insurance reform, for example, and all the measures meant to restrict access to that system, even though it is essential in some regions and for all workers who, at some point in their lives, face a situation where work is not available in their field, whether because of the seasonal nature of their work or because of an economic downturn.

It has become very clear that the Conservative government, like the Liberals before them, has no problem using employment insurance for political ends and, above all, taking any surpluses in the EI fund and using them for other purposes or adding them to its regular budget if it so chooses.

What was the purpose of that board? The best way to explain it is to look at how it was described when it was created. The definition is especially clear:

The Canada Employment Insurance Financing Board (CEIFB) was created as a Crown Corporation in 2008 to ensure that EI premiums are used exclusively for the EI program. This followed extensive public discussion on the need to improve the transparency and independence of EI financing.

Now, however, we must point out coincidence of sorts between the abolition of the board and the government's express desire to get its hands on the money. It has done so on many occasions in order to divert income from premiums to general government revenue, rather than return the money to workers when they need it.

As we read that description, we can better understand the Conservatives' desire to abolish a body that was opposed to their getting their hands on the money and pilfering the surplus as they are doing at the moment.

This year alone, $2 billion will be taken out of the employment insurance fund in order to pay down the deficit or indulge Conservative whims such as military procurement, gifts for the Queen, and celebration of conflicts, debates or battles two centuries old, such as the war of 1812.

The bill also includes major changes to labour legislation. In recent labour disputes, such as at Air Canada and CP, we have seen that the Conservatives are allergic to any kind of pressure from employees. The mere possibility of strikes worries them so much that they enact special legislation to prevent them.

Bill C-4 goes even further. Now the Conservatives are making major changes to the way in which services are deemed essential because they want to pre-empt any possibility of employees exerting pressure. From now on, the Conservatives are giving the employer the exclusive right to determine whether a service is essential and the number of positions needed to provide that service. Previously, the essential services designation was agreed upon between the union and the employer.

These are major changes because they affect the fundamental balance that must be in place between employers and employees. Even worse is the fact that Bill C-4 politicizes the workplace health and safety process. In fact, in Bill C-4, the minister appropriates the power to issue directives to employers and to make certain decisions that were once made by health and safety officers.

This is a complete travesty.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:20 p.m.
See context

NDP

Françoise Boivin NDP Gatineau, QC

Mr. Speaker, I will try not to go over my speaking time.

I found the hon. member's speech very interesting. I am particularly interested in clauses 471 and 472 of Bill C-4, because they deal with the appointment of judges to the Supreme Court.

I would quickly like to correct a statement my colleague made. The proceedings of the committee, which includes members from all the recognized parties in the House, and the votes in this committee, are confidential. We had to sign confidentiality orders, so we cannot disclose how the vote was held and we certainly cannot assume that one or the other party voted in favour of the appointment of Mr. Nadon just because his name was selected.

Furthermore, there is an even more significant issue. How does my colleague explain that the government can, by means of Bill C-4, especially clauses 471 and 472, which are the subject of the second reference to the Supreme Court—

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:25 p.m.
See context

Conservative

The Acting Speaker Conservative Bruce Stanton

Order. The hon. member for Haute-Gaspésie—La Mitis—Matane—Matapédia has the floor.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:25 p.m.
See context

Bloc

Jean-François Fortin Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Mr. Speaker, we could easily avoid any ambiguity or problems, like the appointment of Justice Nadon, by simply referring to the Government of Quebec, which has its own list of eligible candidates.

In this way, I think we would avoid any imbroglio that would ensue from challenges on either side.

Unfortunately, I did not hear the second part of the hon. member's question because her microphone was off.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:25 p.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I want to pick up on the question regarding the appointment process.

The other day I had the opportunity to ask a question related to what the minister responsible was saying in the province of Quebec. The question I posed to the Prime Minister was on the importance of being consistent with what we say. For example, if we are saying something to the francophone media, it should be consistent with what we would say in English to the anglophone media. There is a responsibility for the government to do just that.

I wonder if the member would like to provide some sort of comment on the consistency in what is being said in different regions of the country on important issues such as this.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:25 p.m.
See context

Bloc

Jean-François Fortin Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Mr. Speaker, I thank my colleague for his question. He put his finger right on the problem.

The Conservative government is visiting the regions of Canada and talking out of both sides of its mouth. In Quebec, it is trying to minimize the impact of Justice Nadon's appointment. The Government of Quebec, as well as all of the parties represented in the National Assembly, have made the point that the future justice will have a hard time complying with the law and making rulings with the necessary knowledge of Quebec civil law. Quebec has every right to expect this from a Supreme Court judge who will have to make important rulings.

One may wonder why there are three judges. Some cases may be made public and may involve Quebec. Take, for example, the firearms registry, which could eventually end up in this court.

The Conservatives are always saying one thing to Quebec and another to Canada, but we are not fooled. We can see this is going on. With Bill C-4, the Conservatives are trying to legitimize this appointment decision in a roundabout way. However, the fact remains that Justice Nadon is not qualified to sit in Quebec.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:25 p.m.
See context

NDP

Matthew Kellway NDP Beaches—East York, ON

Mr. Speaker, I am rising today to speak to Bill C-4, the budget implementation act.

For the most hopeful among us, promise was in the air for a little while this past summer. There was talk of reset and of change. It seemed clear enough when this place shut down for the summer last June amid the Senate scandal that there was cause for the Conservative government members to pause and reflect on the way they conduct themselves as government.

I would, however, note that this speech and all speeches on the bill are delivered under time allocation. It is the 50th time the government has moved to limit debate in the House, so there has been no change.

A diagnosis of what is happening to Canadian politics under the current government would identify the same disease infecting all of what the Conservatives do. It is about a lack of transparency, a lack of accountability, and a lack of respect for the process of democratic politics.

Canadians elect us, all of us, to come here to give voice to their concerns and to pursue their wishes on their behalf. When the government will not allow those voices to be heard, what we have at the heart of all of this is a government that does not respect the people whose country this actually is.

Conservatives have become occupiers of the institutions and abusers of the practices that have been established for the collective benefit of all Canadians. We know that these institutions and practices are not perfect and never have been; I would point to the Senate down the hallway. From time to time we need to change so that our institutions and practices keep up with maturing notions of democracy and what best serves that collective benefit.

We would call it modernization, perhaps. Conservatives once called it reform, in a day when we all at least had in common, it seemed, a commitment to transparency and accountability in the institutions of government and the practices of politics.

However, reform has not come from the supposed reformers. Hope has been betrayed by the government again, and there has been more disappointment for any Canadians left whose disposition allows them to remain optimistic about the government.

For those who could not escape the suspicion that the government would not and could not change its ways—and I am among them, unfortunately—the bill we are debating today was so entirely predictable: omnibus in nature, amending 70 pieces of legislation, and burying deep in its 300-plus pages two completely new pieces of legislation. It is legislation, I might add, as with all new legislation, that is worthy in its own right of full debate in this place.

How predictable that one of these pieces of legislation has to do with a gas project. Extraction and the fire sale of Canada's natural resources is all the government knows and all it does in the form of an economic plan. How fitting, especially in light of the evidence emerging every day from the Conservative government with an obsessive-compulsive disorder to control and manipulate, that the Mackenzie gas project impacts fund act would seek to eliminate the independent arm's-length bodies charged with mitigating the socio-economic impacts of the Mackenzie gas project and bring these matters directly under the control of the minister and the government.

Of course, we would not recognize a Conservative budget bill or implementation act without an attack on working people. From the elimination of useful dispute resolution processes to the undermining of health and safety provisions, attacks on workers have become the hallmark of the Conservative budget process. It is attack but never help; destroy but never build.

However, what I want to talk about today is the need to build urban economies and the need to help people who work and look for work in our cities, something Bill C-4 fails to do. I would like to point to a number of recently released studies in the hope of bringing to the attention of the government and Canadians just how far off the mark Bill C-4 is.

One such study, entitled “It's More than Poverty” and carried out by McMaster University and the United Way of Toronto, was released in February of this year. Having found that precarious employment has increased by nearly 50% over the last 20 years, so that barely 50% of people in the study are in jobs that are both permanent and full-time, the authors of this study describe precarious work as “the new normal” for many in the urban workforce.

This new normal is not a good normal. People in precarious work earn 46% less and report household income that is 34% less than those in secure jobs.

Just this month, the Institute for Competitiveness and Prosperity and the Martin Prosperity Institute, both at the University of Toronto, released a study entitled, “Untapped potential—Creating a better future for service workers”. In this study, the institutes point to the increasing precarity of work in the Toronto labour market, particularly in what they call the routine service sector of the labour market, jobs that account for almost half of Toronto's workforce.

Defining precarious work as work that is temporary, part-time and paying below the low-income cut-off, the institutes note that the number of routine service jobs that have become precarious over the last decade has increased by one-third. The point that the institutes want to make with this study of precarity is not just about the implications of these changes for those working in this sector but as the study's title suggests, the untapped potential in this sector from which we can all benefit. The point is that unstable, low-wage and low-skill positions deflate disposable income and overall prosperity. The institutes urge policy-makers, and that is us, to assess what policy tools are needed to boost job security and wages within these occupations.

There has been no such assessment coming from the other side, and there are no such tools in Bill C-4. I am thankful that at least we on this side of the House are on the job. I would point to my colleague, the member for Davenport, and his recently tabled urban workers bill, which I proudly co-sponsor, as a response to the circumstances described in these studies. It is a bill of legislative relevance to Canadians, and particularly to urban Canadians.

Finally, I would like to point the government to a recent study done by the Wellesley Institute in Toronto, called “Shadow Economies: Economic Survival Strategies Of Toronto Immigrant Communities”, also released just this month, which focuses on the economic poverty of newcomers. This study finds that only one-third of households were able to fully cover their household expenses on income through formal employment, forcing people, as both workers and consumers, into the informal economy to make ends meet.

It is in this context that the government enters with an economic plan that according to the Parliamentary Budget Officer would be responsible for 67,000 less jobs by 2017, and a GDP reduction of 0.6%.

I do not know if it is possible for anybody to draft a stronger indictment of the government as economic manager than the one it has penned for itself with this very bill, Bill C-4. It is not just irrelevant to the lives of the vast majority of Canadians, proving once again how remote the government is from the population and their cares and concerns, but it is actually harmful and hurtful to the people I came here to represent.

Economic Action Plan 2013 Act No. 2Government Orders

October 28th, 2013 / 5:35 p.m.
See context

Liberal

David McGuinty Liberal Ottawa South, ON

Mr. Speaker, I thank my colleague for a very thoughtful and measured speech. I would like to ask the member where he might see the country going in terms of innovation.

Several years ago, in a previous government led by then-minister Allan Rock, now the president of the University of Toronto, a very comprehensive Canadian strategy was put in place to pursue an innovation strategy for the country. Four or five round tables were struck, and at the time I had the privilege of chairing an environmental technologies round table, to take a closer look at where we were going. Back then, around the year 2000, in the national capital region, we were receiving 60% of all the venture capital monies in Canada. That has been cut now by over 80%. We have also lost half of our high-tech firms.

What is the member's view with respect to an innovation strategy for the country? How does he see that dovetail with manufacturing and with information technology?