Bill C-4 (Historical)

Economic Action Plan 2013 Act No. 2

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

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

Economic Action Plan 2013 Act No. 2

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, I would like to thank my hon. colleague for his participation in the debate today. He always brings forward a very good presentation. I may not always agree with everything he is saying, but he does bring forward a good presentation.

The member was talking a lot about economic growth and jobs, and I know we hear that from that side of the House all the time, and one of the interesting points was that the economy is still fragile. So with all of that being said, talking about the economy, about jobs and about a fragile economy, it makes me scratch my head and wonder why, in a budget bill, we are talking about reducing the number of members on the Veterans Review and Appeal Board. Why, in a budget bill, are we talking about changes to the Supreme Court Act? Why are we seeing 70 pieces of legislation changing, in over 300 pages, in a budget bill? Maybe the hon. member can answer that for me, because on this side of the House we do not understand how all those issues correlate.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I always enjoy listening to my colleague and friend from Sudbury. I think it is snowing up there, and where I come from it is actually nice and warm.

In all seriousness, in terms of what some of those items are doing in our budget, as I mentioned, 95% to 98% of the businesses across Canada are small businesses. When those business owners look at how they are going to operate their businesses to be sustainable in the long term, they look at what they can do within their management system to become effective and efficient and, yes, become and stay profitable.

So when we look at a number of initiatives or issues in terms of reducing, for example, the number of members on the Veterans Review and Appeal Board, I believe we have to always look at how we are going to provide a service that we need to provide but also how we do it more effectively and efficiently.

I rely on those members in the veterans affairs committee. I do not know if the member was on it at one time, but I was, and it was one of the greatest benefits I had, being able to be on that committee to—

[The Acting Speaker, Conservative, Barry Devolin]

Order, please. I just remind all hon. members that, if they are asking or answering a question, they should pay attention to the Chair. They will get a signal when their time has expired.

Questions and comments, the hon. member for Chicoutimi—Le Fjord.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, my Conservative colleague should be ashamed of his answer.

I am flabbergasted to hear the member opposite justify the reduction in the number of permanent members on the Veterans Review and Appeal Board. The very purpose of that body is to review files and hear appeals from veterans who have a problem with Veterans Affairs Canada.

Some of them come to see me at my office because they have fallen between the cracks. They have a problem with the department. The Veterans Review and Appeal Board is there to help them. According to the Conservative member opposite, if salaries are cut, then Canadian businesses will be happy. What a disgrace. I am shocked that our veterans are paying the price for the Conservatives’ incompetence. Canada’s finances are being totally mismanaged. The Conservatives should slash the programs that they cannot manage properly, instead of penalizing veterans. My colleague should be ashamed of his answer. I do not even have a question for him.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, in terms of service, we need to ensure we look at what our government has done for Veterans Affairs and for our veterans across this country. Veterans are the ones we need to make sure we stand behind, and that is why we not only have implemented the charter but have made a number of changes within that charter to make sure our veterans are looked after.

We have created service centres to which they now have more access, to make sure those in need of treatment and information have access to those facilities. We want to make sure we are there for veterans in terms of their compensation. When people come back with injuries, we have extraordinary amounts that we want to help them with, so they are protected in the long-term for their life ahead of them.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, it is my pleasure to talk about Bill C-4 and explain the opposition's interest both in its form and in its substance.

I should say that with respect to form, we have another omnibus bill that is a collection of dissimilar and disconnected measures. It is really another cat’s cradle designed to thwart democracy. We go from legislation relating to Canada’s coal reserves, to legislation about the right to opt out when it comes to the health and safety of federal employees.

We are really moving from department to department, whereas this is actually a budget bill. As a result, we might expect measures directly concerning the Minister of Finance. That is not necessarily the way this government seems to want to operate, however.

With respect to the budget bill, the Minister of Finance is dictating to the other ministers what action they should take. There is a flagrant disrespect for ministerial responsibilities. It leaves us puzzled, and shows to what extent the Conservative government is a centralizing one that intrudes in all areas in an inconsistent manner.

If I had just been appointed to cabinet, as some people were during the summer, I would like to be able myself to present the measures of concern to my department. It appears, however, that it does not bother the new ministers on the other side to have the Minister of Finance dictating measures that are under their jurisdiction.

Canadians might well wonder how many nails this bill seeks to hammer into the coffin of democracy. After the prorogation, the gift packages from the Conservative government look once again like Pandora's box.

Is it really the purpose of a budget bill to add new legislation respecting labour relations? I think not. I would not like to be the Minister of Labour and have someone tell me how to do my job.

I would now like to address the substance of the bill. The Minister of Finance should rather focus on the financial priorities of Canadians. For example, in 1980, the ratio of household debt to personal disposable income was 66%. According to the figures for 2011, it has now risen to over 150%. This means that every household owes $1.50 for every dollar earned. People owe more than they are earning. It makes no sense. As a result, household debt is becoming an increasingly significant factor in the finances of many Canadian families, and the government is not taking concrete action in this area.

The data on employment are also revealing. In September, job numbers increased in Quebec. We have 15,000 more jobs, but they are part-time. The number of full-time jobs is decreasing. The Conservatives say they are creating jobs, and it is true. However, they are creating jobs that are part-time and offer no security, instead of preserving good, secure full-time jobs. I believe that should be a priority for this government.

The only thing that interests the Conservatives is job creation. They do not consider job security or the fact that these are part-time jobs as opposed to full-time jobs. Anyone at home knows that a part-time job is not equivalent to a full-time job. Anyway, I know it, and I think even the five-year-old girl next door knows it.

The Conservative member for Northumberland—Quinte West referred indirectly to this increased vulnerability in the job market in the example he gave last Friday. The measures he read from his notes show that the government is not taking the necessary measures to deal appropriately with the lack of social housing in Canada. His short-term view is based on volunteer work in construction and reliance on charities, like Habitat for Humanity, to provide housing for Canadians. It is shameful that we cannot have social housing built by our own tradespeople who are looking for work.

My colleague from Chambly—Borduas pointed out that the youth employment rate is double the rate for other groups. This indicates the ineffectiveness of the action taken to date by the government to enable young people to take their rightful place in the Canadian economy.

In order to develop the Canadian economy, we expect better than replacing a strong economy and proper training with services provided through charitable organizations set up by former U.S. presidents.

The median after-tax income of a family of two or more persons was $68,000 in 2011, virtually the same as in 2010. That was the fourth consecutive year in which there was no significant change in after-tax income. Factoring in inflation, this means that Canadian families got poorer.

However, as the Canadian Press noted and Le Devoir reported on September 12, "These statistics are taken from the controversial National Household Survey…, which replaced the long form census abolished by the Conservative government in 2010. As a result, comparisons with past figures are very hard to make, since the form has been changed and is no longer mandatory."

I therefore wonder whether the Conservatives' lack of scientific rigour might not throw off their economic compass when they come up with random measures that have no sound basis. Reliable data are required in order to put economic measures in place that provide real assistance to our youth. The long form questionnaire gave us those reliable figures before it was cancelled.

As regards the soundness of our economy, more than 4.5 million union members worked across Canada in 2012. That amounts to 32% of the total labour force. In addition, their weekly payroll of $4.59 billion represented 35.6% of the total national payroll.

That is why I want to emphasize the importance of unions in Canada. The Canadian Labour Congress included comments in a study it published to illustrate the real importance of the union advantage in 30 Canadian communities and in this country as a whole. That study showed that unionized workers earn $4.97 more an hour, on average, than non-unionized workers. That means that the union advantage adds $785.8 million a week to incomes across the country. That money is spent mainly in our local communities and therefore contributes to the Canadian economy.

The Conservatives' attacks on our unions are unfortunately ongoing, and the possibility that they may strip unionized Canadians of their bargaining powers only further undermines the equal justice measures that are being used to combat the growing inequalities in our society. This is another deceitful attempt by the Conservative government to shirk its responsibilities.

It is important to note that we would not have safe workplaces if it were not for the unions. The Conservatives will disrupt the fragile health and safety balance by stripping officers of their powers. This is dangerous. Need I recall the consequences of the self-regulation of the Canadian railway industry or the deregulation of food safety at the Department of Agriculture and Agri-Food?

I also think we must reconsider a question that was raised by the member for Gatineau. She asked what a clause on judicial appointments was doing in a budget. I have no idea, and I would add my voice to the general consternation at seeing that the budget implementation bill is once again interfering in other departments' matters and amending acts that have nothing to do with finance.

The Minister of Justice has been here for several years, and he would have been able to manage that on his own. Instead, that task has been assigned to the Minister of Finance. I do not understand. This makes no sense. Unless I am mistaken, I was not even an adult when the current Minister of Justice first entered the House of Commons. He is therefore capable of managing his own files, but he is not doing so.

We have to ask ourselves some questions. What items have no place in a budget bill? There are hundreds of examples. As we can see, parliamentary oversight has no place in the process, and the department is being given free rein to centralize everything once more. The history of Conservative omnibus bills is repeating itself yet again.

Instead of reoffending, the Conservatives should learn from their mistakes. That is unfortunately not what they are doing.

[Frank Valeriote, Liberal, Guelph, ON]

Mr. Speaker, all morning we have been hearing Conservative members lauding the Canada jobs grant, which amounts to a $15,000 contribution to training, $5,000 from the federal government, $5,000 from the provincial government and $5,000 from independent industry. Do members know where the government got the $300 million that it will put into this program? The government took it from the provinces and now it wants the provinces to invest money. The money was taken away from the provinces, money they were deploying in their provinces in a way they thought was appropriate and in a way that was working. Not only that, but all the provinces have said that they will not participate.

To exacerbate the problem, the government has been advertising the program as if it already exists, at a cost of $90,000 a shot on TV. The program does not exist, but it is needed to fill our jobs training gap.

Could the member for Abitibi—Témiscamingue speak about this issue?

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, indeed, something does not add up. The government is advertising a program that it still has not negotiated with the provinces. When we talk about education or training, unless I am mistaken—and I certainly do not think I am—we are talking about a provincial jurisdiction. There is some nice advertising announcing programs and money, when in fact there are no programs and no money. The government took money away from the provinces, although they managed those programs quite well and that was not what they wanted. They were given no leeway. They were told they had no choice and if they did not like it, that was not the government's problem.

This is not a responsible approach. When it comes to funding, it is important to sit down with the provinces and discuss the issues in order to put in place measures that will meet their needs. Here, the Conservatives are doing precisely the opposite. As usual, the Conservative government could not care less about the provinces, especially Quebec.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, the training program was established in 1997. I remember clearly that it was first introduced in New Brunswick. It involved the transfer of EI Part II benefits for training in the provinces, and that was a provincial responsibility. The government agreed that this was under provincial jurisdiction and at the same time, it was an opportunity to provide training for jobs in small and medium-sized businesses. The problem with the new federal government program is that small and medium-sized businesses do not get that money.

Does my colleague agree that what the federal government has actually done is to transfer training funds to the large companies that already have money and are responsible for the training of their workforce? This does not help economic development in rural areas, as the old program did.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, my colleague is absolutely correct. My riding is predominantly made up of small and medium-sized businesses. If the money is used in that way, it will be funnelled out of rural areas. It is important for those areas to be able to keep young people there. We are fighting to put measures in place to keep young people at home, in rural areas, and the Conservatives are tearing down those efforts.

[Craig Scott, NDP, Toronto—Danforth, ON]

Mr. Speaker, I believe that my colleague from Abitibi—Témiscamingue is a member of the Standing Committee on Natural Resources. I am wondering if she is as surprised as I am to see that this budget bill includes a division on the Dominion Coal Blocks and procedures to allow the government sell off coal reserves.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, that measure makes no sense, and I spoke to that.

Should the Minister of Finance and the Standing Committee on Finance be talking about the Dominion Coal Blocks? That makes no sense, yet there it is in division 7 of Bill C-4. That should be managed by the Standing Committee on Natural Resources. This proves that the Conservative government is putting anything and everything in this budget, which does not allow us to have meaningful discussions on issues that are of concern to us.

As the official opposition's new deputy critic for energy and natural resources, I find it sad that I cannot expresses my views on division 7 regarding the Dominion Coal Blocks because the bill will be sent to the Standing Committee on Finance. This is a tangible example of how this is a catch-all bill.

[Cathy McLeod, Conservative, Parliamentary Secretary to the Minister of Labour and for Western Economic Diversification]

Mr. Speaker, I am very pleased to stand today to speak to BIA 2 and, more specific, to the government amendments to part II of the Canada Labour Code.

I want to be clear. The focus of our government and the purpose of these amendments is to improve the health and safety of Canadian workers. We have said it before and I will say it again, Canadians have been very clear that what they want are jobs, growth and long-term prosperity. We have listened to Canadians and delivered. Over one million net new jobs have been created since the beginning of the recession and we have the lowest debt to GDP ratio among the G7 countries.

We are all very proud of the very recent and historical trade agreement that was announced with the European Union, which will create an additional 80,000 jobs for Canadians.

In short, there is a lot of which we can be proud.

However, in order to improve upon this record and maximize Canada's economic potential, it is vital that we continue to work together to create safe, fair and productive workplaces.

The proposed BIA amendments to the Canada Labour Code are good examples of how we are streamlining operations to achieve better outcomes for workers, businesses and all Canadians. The result would be safer workplaces, which is something we all should be supporting.

A number of media sources and opposition members have misreported on these amendments. For the record, I want to ensure all Canadians no rights will be restricted or limited as a result of these proposed amendments. The right for a worker to refuse dangerous work remains absolute.

Workers and employers will continue to have access to recourse mechanisms if they disagree with a decision. Employers remain accountable for providing workplaces that are safe and healthy, whether the danger is imminent, serious or a future risk. There is no reduction or elimination of health and safety officers.

I want to underline again that our government is dedicated to creating safe, healthy, fair and productive working environments. A safe and healthy workplace is not only good for a business' competitiveness and productivity, it is good for workers, good for families and good for Canada.

The proposed amendments to the Canada Labour Code are designed to improve the prevention of accidents and injuries to workers in the course of employment. They are based upon the principle that employers and employees are best placed to prevent injuries, identify health and safety issues and resolve them in an effective and timely manner. This is called the “internal responsibility system”. This means employers and employees are jointly responsible for the health and safety of all workers. However, since employers have the most control over working conditions, they have the greatest responsibility.

Employees are also responsible for ensuring their own health and safety. They are responsible for following procedures when handling equipment, hazardous substances and other materials, wearing protective clothing provided by the employer, complying with the employer's instructions concerning health and safety and reporting any possible hazards to their employer.

Employees have three fundamental rights: the right to know about hazards in the workplace; the right to participate in identifying work-related health and safety concerns; and the right to refuse dangerous work. All these rights will remain enshrined in the Canada Labour Code.

Our government's role is to support employees and employers in meeting their obligation and to ensure compliance with health and safety regulations. We are doing this by responding to complaints and incidents, conducting inspections and providing tools, information and assistance to employers to help them fulfill their responsibilities.

The numbers actually speak for themselves. Disabling injuries in federally-regulated industries have declined by 22%, from 2007 to 2011. In 2000, there were 2.51 disabling injuries per 100 workers, compared with 1.73 in 2011. However, there is always room to improve.

In Canada, occupational injuries and illness cost the economy about $19 billion a year and an average of 1,000 Canadian workers lose their lives every year. Health and safety is a priority for our government. That is why, again, we are introducing amendments that allow us to focus on critical issues affecting health and safety of workers in the workplace, respond to imminent or serious situations of danger in a more timely manner and reinforce the internal responsibility system.

There has been a lot of discussion about one important amendment, the definition of “danger”. We are clarifying the definition because more than 80% of refusals to work in the last 10 years have been determined to be situations of no danger, and that is even after appeals. That is really important and I want to repeat it because it is so important. Eighty per cent of refusals to work in the last 10 years have been determined to be situations of no danger after appeals.

These proposed amendments emphasize that requests should be dealt with in the workplace bringing together employers and employees who are best positioned to work co-operatively to identify health and safety hazards. It would ensure that health and safety officers use their time more effectively to enforce the regulations and to focus more on preventing workplace accidents through increased awareness, education and proactive interventions. These proposed changes would not lead to fewer health and safety officers but would ensure that their time is used more effectively to improve the enforcement of the regulations.

I want to go back in my history. As many people might know, I worked in a rural emergency room for a number of years and there are images that will remain seared in my mind forever. It was a fall day like this when, in the early morning, a gentleman went off to work. His wife got their three children up and fed them breakfast. The children went off to school and she was baking bread when we had to go over to tell her that her husband had been killed in a tragic workplace accident. I remember that day that Debbie's life changed forever. To be honest, this was a preventable accident.

I would like to contrast that situation where there could have perhaps been more intervention. It was a provincial example, but it speaks well to the issue at hand. There was also a well-reported issue in the media about a year ago regarding name tags. Certainly, it was a legitimate issue for employers and employees to maybe have a discussion about, but where do Canadians want their resources focused as taxpayers? Do they want to make sure Debbie and her children have their husband and father forever, or do they want us to intervene in what should be a simple, reasoned discussion between employers and employees? This, again, illustrates very effectively how we need to spend our time and resources.

I want to reassure my colleagues in the House and all Canadians that health and safety officers will be there to help when employers and employees cannot come to an agreement on a workplace hazard or how to resolve it. They will be there 24-7 to respond to urgent situations that require intervention. Again, I want to emphasize that these new amendments will not affect the investigative capacity of the labour program and will not lead to fewer health and safety officers, as it has been erroneously reported in the media. Health and safety officers have been, are, and will remain the key to enforcing the Canada Labour Code.

As the hon. Minister of Labour has stated, the right of employees to refuse dangerous work remains absolute. The definition still provides protection from all hazards, imminent, serious or long term. Employees will continue to have the right to refuse all forms of dangerous work. Employers will still be responsible for ensuring their workplaces are safe and are required to take action if they are not. Employees and employers continue to have access to recourse mechanisms if they disagree with a decision. These proposed changes will not lead to fewer health and safety officers, but will ensure their time is used more effectively to improve the enforcement of occupational health and safety regulations.

Our government remains focused on the economy, jobs and long-term prosperity. A healthy and safe workplace goes absolutely hand in hand with those goals and we are continuing to move forward.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I would like to thank the hon. member for her presentation and appreciate having members in the House of Commons with her important background of nursing.

I am a little troubled at the hon. member's comments on this budget. One aspect of this budget, which is most troubling for my colleagues, is the fact that the government is taking on the discretion to determine what work is dangerous. It is taking it from fully trained health and safety officers and giving total discretion to the minister. I would expect that the hon. member would be doubly concerned because her government has been convicted of three counts of failing to protect federal workers, three violations of basic health and safety protections. I am a little troubled that she would think that the government is going in the right direction in this area.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, it is important to recognize that delegation of responsibility is very common in statute after statute. I go back to my previous world where I had delegation as a licensing officer for community care facilities. Delegation allows for consistency across the country. It allows for the minister to mobilize important resources as she needs them.

This will greatly improve both the ability to respond and the consistency of response, and will provide a framework for national improvement.