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.

Second Reading

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I rise today to speak in favour of Bill C-4, a second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

The bill cannot be considered in isolation. Bill C-4 implements parts of this year's budget, and this year's budget is just another phase in Canada's economic action plan, an approach to governance that has allowed Canada's economy to lead the world through unstable times. Since the global financial crisis that triggered this uncertainty, each year I hear members opposite claim that the government's policies would end up hurting Canadians. Each year statistics prove their worries are totally unfounded. While members opposite continue to attack our Minister of Finance, impartial experts continue to honour him as the world's best.

While I expect the hyperbole to continue in discussing Bill C-4, I would remind Canadians to consider the following when they hear the opposition parties attacking our record. Our debt to GDP ratio is by far the lowest in the G7. Since the depth of the global recession, Canada has created almost a million net new jobs, the strongest record in the G7. These facts are praiseworthy on their own, but please also remember that we are on track to return to surplus. When the budget returns to surplus, we will not only enjoy the strongest record of job creation and fiscal discipline in the industrialized world, but we will also enjoy the benefits of investments made during the stimulus phase.

In Waterloo region, we have seen much needed expansion to our local post-secondary institutions to develop the talent and innovation that we need to remain prosperous. Conestoga College is better positioned than ever before to help business innovate their processes, and now operates a school of food processing technologies. Food and food processing is Ontario's second largest industry, but this school is the first of its kind in Ontario. We have seen community centres built or refurbished, and critical infrastructure such as waste water and roads renewed. We have witnessed the explosive growth of high technology startups, coalescing around the federally supported Communitech hub.

We have seen the impact of programs designed for southwestern Ontario delivered by way of the Federal Economic Development Agency for Southern Ontario, or FedDev, helping businesses such as Miovision Technologies capture new markets, and non-profits such as the Southern Ontario Locomotive Restoration Society build a station for the Waterloo Central Railway, a tourist link between the city of Waterloo and St. Jacobs in the township of Woolwich. The agricultural adaptation program has supported businesses such as Martin's Family Fruit Farm, bringing apple chips to market, a healthy snack food that opens new markets for Canadian orchards. I could devote an entire speech to the investments our government has made in the Region of Waterloo Airport in Breslau that resulted in a safer facility, capable of handling a more diverse set of aircraft, which is critical for our area's continued growth.

All of this was accomplished during the most severe downturn since the Great Depression, while remaining on track for our return to surplus and without raising taxes on Canadians; all of this without raising punitive taxes on Canadians, as both opposition parties are calling for; all of this without gutting transfers to the provinces, as the previous Liberal government did. How is it possible, Canadians may wonder, for a government to maintain the world's best financial position, while also maintaining low taxes, maintaining transfers to provinces and individuals, and renewing Canada's infrastructure on top of all of that.

In my opening comments I noted that Bill C-4 implements budget 2013, which is the latest phase of Canada's economic action plan. However, even Canada's economic action plan is itself an implementation of our Conservative government's long-term financial plan for Canada, released in 2006, called Advantage Canada. Advantage Canada outlined the five priority themes our government would focus on through good times and bad. Our belief was that if Canada could focus on lowering taxes, keeping our books in order, unleashing our entrepreneurial culture, building world-class talent and maintaining world-class infrastructure, Canada could reach new levels of prosperity to pass on to our children and to our children's children.

Budget 2013 continued our focus on these priorities, and Bill C-4 implements measures that will enhance Canada's advantage in these key areas. Bill C-4, among other things, expands the eligibility for the accelerated capital cost allowance to include a broader range of equipment used in clean energy generation and biogas production. Budget 2013 renewed the accelerated capital cost allowance, and Bill C-4 expands on that application.

The accelerated capital cost allowance has been praised by businesses of all sizes in my riding. From Riverside Brass in New Hamburg to Chemtura in Elmira, businesses are investing in new equipment to keep themselves on top of a competitive global economy, thanks to our initiative. Depreciation is used by businesses to write off the value of their equipment according to government-set schedules. By accelerating the depreciation schedule to a more realistic rate, we are allowing the tax system to recognize the speed of business rather than slowing business to the speed of government. By making more of the equipment that is used in clean energy and biogas production eligible for the accelerated capital cost allowance, we are removing obstacles to growth.

Bill C-4 would also implement budget 2013's commitment to extend the hiring credit. This measure incents small businesses, Canada's largest source of job creation, to expand and grow by providing up to $1,000 to offset the increase in EI premiums as an employer takes on employment with new growth. Over a half a million small businesses would take advantages of this opportunity, creating jobs for Canadians.

However, the legislation would do more than help small businesses grow and create jobs. Bill C-4 would make it more attractive for Canadians to pursue entrepreneurship and to pass their businesses on to the next generation. Small-business owners were happy to hear that Bill C-4 would increase their lifetime capital gains exemption by $50,000 to a total of $800,000, but they were ecstatic to learn that going forward this would be indexed. Many of them remember when the lifetime capital gains exemption went unadjusted for almost two decades, until this government assumed office. That is one more example of 13 years of inaction. It was wrong. It was unfair to small-business owners, who often put over 60 hours each week into their business, to blame inflation for making their retirement less and less viable. Never again.

If I could be permitted to diverge for a quick moment, many of my colleagues have asked what the mood is like in Waterloo Region, given the uncertainty around BlackBerry's future intentions. Despite recent challenges at BlackBerry, our mood remains positive and confident. Our community is headquarters to close to 1,000 technology companies that generate $30 billion in annual revenue. The collaborative sensibilities, scientific excellence and entrepreneurial culture that fostered BlackBerry's growth remain strong. Our government's initiatives will certainly provide encouragement. Our investments supporting the creation of the successful Communitech hub, investing in talent at local universities and at Conestoga College, reducing red tape and incenting venture capital into the system have all been well received and are already making tangible results.

However, in government there is always a cost. On this side of the House, we feel these costs are justified as investments that will pay dividends for years to come, but that does not mean our ability to spend is limitless. Especially in these uncertain times, with so many priorities competing for federal dollars, it is more important than ever that all levels of government collect every dollar they are legitimately owed. Individuals and businesses who evade their taxes are not just pulling a fast one, they are denying money to our hospitals, first nations, student aid programs and other critical needs. Every tax dollar owed that remains uncollected is an extra dollar that someone else's tax bill assumes. Tax evasion has become much more sophisticated and our enforcement measures must keep pace.

As a member of Parliament who has encouraged action against the underground economy, I was pleased to see that Bill C-4 would introduce sanctions including monetary and criminal penalties to deter the use of software designed to falsify sales records for the purpose of tax evasion. This is not a revolution in approach; it is a natural evolution of our laws in response to the evolution of technologies, which is continually accelerating. It is much like the action called for in my Motion No. 388 targeting Internet predators, which received the unanimous support of the House several Parliaments ago. These types of improvements can be supported by all parliamentarians regardless of partisan stripe.

Bill C-4 would be the final step in implementing budget 2013. I ask all members of the House, especially those who claim to make decisions based on evidence, to accept the opinion of impartial experts from around the world that the Conservative government's approach has brought Canada to lead the world, to accept this latest phase of Canada's economic action plan, which would be just as beneficial to Canadians, and to get on board.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for his speech on Bill C-4.

Earlier, when I asked the hon. member for Rimouski-Neigette—Témiscouata—Les Basques a question, I wanted to know whether the process behind all this was flawed. There was a mistake in another budget implementation bill, and it had major repercussions on credit unions such as the Caisses Desjardins in Quebec. That mistake was discovered after the bill was passed by Parliament, at which point the situation had to be corrected.

I wonder whether my colleague can assure us today that in this 308-page bill there will not be similar mistakes that fly under the radar because the process is too quick for studying such lengthy bills.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I would have to say that as long as Parliament is inhabited by human beings, there is always the option and the possibility of errors happening, but we also have a system that is very quick to respond to those imperfections and to correct them. Certainly our finance minister has shown that many times.

One mistake that I can assure my colleague we will not make is increasing the cost of doing business for Canadian companies by increasing their taxes or by implementing a carbon tax that would add significant cost and reduce the ability of companies to hire new people. We know that the creation of new jobs is one of the most important things that we can do in Canada to keep our economy strong.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I agree with my hon. colleague that budget implementation plans are required to put into place the necessary legislation related to the budget.

However, I would like to ask him why this particular bill contains the description of the necessary requirements for a lawyer from the Province of Quebec to become a member of the Supreme Court. Why does it touch on labour relations in the public service? The matters are not related to the budget. They are quite separate and should be dealt with in separate bills.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, my hon. colleague will know that I am not a lawyer. I do not profess to be a lawyer or to understand all of the legal aspects of this bill, but as I look through even the summary of this bill, it becomes very clear that the technical amendments that are part of this bill are necessary for the smooth operation of government.

It is simply a matter of accumulating some of the technical amendments that have been on the back burner for many months, and in some cases years, and correcting the record so that the different departments can do their job effectively.

[Jonathan Tremblay, NDP, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, this is a budget implementation bill, not a bill on the way Parliament operates.

I asked one of the hon. member's colleagues a question earlier. I asked him what he thought about the fact that, when the bill was introduced yesterday evening, some government members admitted that the people affected by this bill were not consulted.

Perhaps the hon. member did not hear that, but whether he heard it or not, does he think that this is a good attitude and a good practice?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I would concur with the answer given earlier by my colleague. Obviously we want everyone who has input to be able to provide that input, but we know that during the pre-budget consultation phase of budget 2013, every Canadian had access to give input online. We were welcoming input from every Canadian.

Members of Parliament—on this side of the House, at least—conducted many round tables to get input from different sectors of the economy, whether they were leaders of institutions, municipal leaders, job creators, CEOs of companies, or human resources people. We always want all the input we can get to create the best final product.

However, there will always be those who feel they were left out. We apologize for that, but it certainly was not our intent.

[Jonathan Tremblay, NDP, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, first I would like to say that I will be sharing my time with the excellent member for Edmonton—Strathcona.

Bill C-4, the budget implementation bill, was introduced on Tuesday. That same evening, the government provided a briefing on the bill in English only. Since it was in English only, which is against the rules, the Conservatives had to start over last night, after the debate had already started. When the second presentation on Bill C-4 was given—this time in both languages—the Conservatives themselves admitted that they had not consulted everyone affected by the bill. The Conservatives are not doing their job. Their measures are flawed, haphazard, amateurish and disrespectful.

What is more, the Conservatives are once again imposing a time allocation motion. They are allocating only five days of debate to a third, botched omnibus bill that is 300 pages long and amends dozens of laws, many of which have nothing to do with the budget.

This shows just how little respect the Conservatives have for our democracy and our parliamentary structures. This lack of respect clearly demonstrates that the Conservative government is old and worn out and has no vision for the future of Canada and our various regions.

Once again, parliamentarians must debate and examine important changes, including some meant to correct errors made by the Conservatives themselves. This government is attacking Canadians' quality of life by gutting environmental protections, raising the price of consumer goods and doing nothing to protect consumers. Furthermore, the Conservatives have failed to kick-start the economy and create high-quality jobs.

With this bill, the Prime Minister is once again undermining the government's ability to help and protect Canadians. Workers are the ones who will suffer the consequences.

The most substantial and most reprehensible changes in the latest budget implementation bill will affect Canada's labour environment. This bill fundamentally changes Canadians' right to a healthy and safe working environment.

When workers' health and safety is being attacked, there is a problem. Yet that is exactly what this bill does. Indeed, it removes the powers granted to health and safety officers by the Canada Labour Code and gives those powers to the minister. Do the members opposite really believe that taking basic protections away from workers will go unnoticed?

In addition, it will be harder for employees to refuse to work in dangerous conditions. The NDP firmly believes that no worker should ever be forced to work in dangerous conditions. Why place nearly all powers related to health and safety in the hands of the minister? It is likely in order to be able to place employees and send them wherever the minister wants to send them.

We definitely see a pattern in the government's decisions in recent years. Employment insurance is an excellent example. The bill eliminates the Canada Employment Insurance Financing Board and gives the Minister of Finance the power to manipulate rates. Having an independent and accountable body to oversee EI financing was in fact a Conservative promise. Now that promise has been broken. This is just one more broken promise.

People from Charlevoix, the upper north shore, many regions in Quebec and the Maritimes remember the back-to-back Liberal and Conservative governments that shamelessly pillaged $57 billion from the employment insurance fund, that artificially pushed premiums too high to surreptitiously tax people, or that artificially dropped premiums too low to prove that the program did not work and needed to be cut. Workers deserve better.

The bill also extends the $1,000 hiring tax credit for small business. The NDP proposed a $2,000 hiring tax credit that would not come out of the employment insurance fund and that would help businesses hire and train young workers.

The Quebec economy is built on small and medium-sized businesses. They create jobs in the regions. Côte-de-Beaupré, Île d'Orléans, Charlevoix, the upper north shore and Quebec City are no exception. There is also the fact that so many of our industries are seasonal. However, this government does not seem to care about our communities.

This bill also affects National Research Council Canada. Once again, the government is gutting a Canadian institution, just as it gutted some of our most respected scientific research institutions, just as it fired some of Canada's best scientists and researchers without consulting the scientific community and without evaluating the potential consequences on Canada's scientific capability and its international reputation. Myriad experts, scientists and civil servants were muzzled or fired for not toeing the Conservative line.

The budget implementation bill has the National Research Council in the crosshairs. The Conservatives are cutting nearly half the jobs, but are giving the president, whom they appoint, more authority. Wow, bravo.

The Conservatives made a mistake when they increased taxes on credit unions. This bill proposes changes to fix that mistake, which was made when they rammed the omnibus budget bill through the House.

As result of this mistake, credit unions were facing a tax hike of 28% rather than 15%. On this side of the House, we are very disappointed to see that the Conservatives have not learned from their mistakes and that they are once again using an omnibus bill. It was a bad decision to raise credit unions' taxes, but the Conservatives like raising taxes secretly or on the sly.

The NDP has been fighting tax evasion since the party was created. We support the various technical amendments in this budget implementation bill that seek to reduce tax evasion.

However, we find it troubling that the Conservatives are not taking the issue of tax havens seriously and are not cracking down on individuals and companies that do not pay their fair share of taxes. Let us not forget that, even as this government claims to want to do more to fight tax evasion, it is making cuts to the Canada Revenue Agency.

Another area that is affected is the public service, which is clearly being attacked in this bill. The changes being made to the Public Service Staff Relations Act do away with binding arbitration as a method of settling disputes. Why would a government make such a change if not to instigate labour disputes among public servants?

My colleague, the hon. member for Rimouski-Neigette—Témiscouata—Les Basques, gave a very good speech about venture capital funds. The Conservatives are going ahead with their $350 million tax hike on venture capital funds, despite the strong opposition of that sector and the fact that a lack of venture capital has a negative impact on the ability to start and grow businesses. The Conservatives are going after one of our country's most important economic drivers, and it does not make any sense.

In conclusion, we are currently dealing with a Conservative government that makes purely ideological decisions and that is hijacking the government process—both Parliament and responsibilities of the state—for its own partisan purposes. The government is sabotaging programs to make it easier to eliminate them. It is sabotaging our parliamentary structures and it is circumventing our election laws.

Because of a lack of time, I mentioned only a few aspects of this bill. I spoke about them in a fairly general way and there were some that I did not have time to talk about. We should have the time to debate every aspect of the bill. That is what happens when a government has contempt for democracy and our parliamentary structures.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, the members for Montmorency—Charlevoix—Haute-Côte-Nord and Rimouski-Neigette—Témiscouata—Les Basques have demonstrated that labour-sponsored funds support SMEs. As my colleague pointed out, SMEs are strong economic engines.

The Conservatives are creating obstacles for small and medium-sized businesses by undermining these funds.

Does my colleague think that the Conservatives are truly good economic managers, as they claim to be, or is this simply a charade?

[Jonathan Tremblay, NDP, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, I think they know how to funnel money to their friends and to Conservative Party campaign contributors. They know how to manipulate the laws to do that.

As for venture capital funds, yesterday, the presidents of the FTQ and the CSN came to meet with people in Ottawa to suggest an agreement that would prevent the pillaging of millions of dollars from venture capital funds. They were open to investing more money in Canada and Quebec—outside Quebec too—and suggested investing $2 for every dollar of tax credit. However, this suggestion was turned down.

I hope that the Conservatives will wake up one day. The CSN and the FTQ said that they would continue to negotiate because this made no sense, since our economy sees a direct return on the money invested in these funds. It is good for the Canadian economy as a whole. They said they would continue to negotiate to find some common ground. I hope that the Conservatives will not keep their blinders on and that they will be open to maintaining this investment.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Mr. Speaker, I would like my colleague to say a few words about the Canada Employment Insurance Financing Board Act.

The Employment Insurance Financing Board was created after our Liberal friends used the employment insurance fund for other purposes, namely to pay the bills. The board ensured that the contributions were not being used for partisan purposes and that the money that workers and employers were contributing to the fund was being used to pay unemployed workers in need.

By eliminating the Employment Insurance Financing Board, are the Conservatives signalling that it is their turn to dip into the EI fund and misuse that money again? What does my colleague think about this?

[Jonathan Tremblay, NDP, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, Liberals and Conservatives alike have figured out how to take advantage of the EI fund. They can take money directly out of the fund to eliminate deficits elsewhere, or, once that scheme is uncovered and it becomes politically difficult to keep up, they reduce the premium rate to make it appear as though the program is not working and is running a deficit, especially if they have taken from it.

That leads people to believe that the program is not working. This justifies the cuts and the content of the latest employment insurance bills, which particularly affects the people of my riding and all of eastern Quebec and Canada.

By leaving the premium rate in the hands of the minister, the Conservatives can increase or reduce it at their whim, depending on whether or not they want to take money out of the EI fund.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, it is my privilege to rise to speak to the latest tabled omnibus budget bill on behalf of the constituents of Edmonton—Strathcona.

I think many across western Canada will be discouraged that not much debate on this bill is being allowed because of closure, once again. What is of particular concern to those of us in the official opposition, and which I know will be shared by my constituents, is the fact that once again, we have a large omnibus budget bill, over 300 pages, that includes many policy and legal changes that merit discussion before the appropriate committee, an opportunity for Canadians and the appropriate experts to come forward and testify, and frankly, an opportunity to question the appropriate ministers.

Here we have many policy matters, including, for example, changes to appointments to the Supreme Court of Canada. Where are we are supposed to direct our questions? It is to the Minister of Finance. This is a complete perversion, frankly, of the proceedings in the House of Commons.

Once again, we are calling for this to end. We have requested many changes, but the government seems to persist and does not want debate. It does not want the engagement of Canadians in these important matters. We are doing our best to try to hold the government accountable on spending. That is our constitutional responsibility.

Before I speak to some of the matters in the bill, and because of limited time I will have to pick and choose, I would like to mention the things we do not find in the budget bill.

First and foremost, we see nothing toward addressing the inequities our indigenous Canadians have suffered over far too many decades. There is no mention of new dollars to end the 2% cap on first nations education and services. There is no additional money to expedite specific and comprehensive land claims. I find this dumbfounding. Banks have called for action on this. First nations have called for this. Provincial premiers have called for the government to step up to the plate with additional staffing and resources to expedite the land claims, including along the path of the proposed gateway pipeline. What do we see in this budget? There is absolutely nothing to expedite that process.

We have heard concerns from those who have already signed on to comprehensive land claims. Where is the money to finally deliver on the commitments made under those claims? Those Canadians would like to participate in the economy the Conservative government lauds, but they are not able to move forward and participate in the economy, because they are struggling just to get by.

There is no additional money for an inquiry into missing and murdered women, despite the pleas from indigenous families across this country. It is just a travesty that there is still no money for this inquiry, which even the UN is calling for.

There is no commitment of additional monies that will likely be needed to complete the truth and reconciliation review and the release of data.

There is no money for our universities and technical schools in crisis, even in Alberta. We face the travesty of deep cuts to our universities and technical colleges at a time when, supposedly, the current government supports training so that all Canadians can participate in this burgeoning resource economy. However, they are being sliced. Where is the federal government? It could be helping with that. Where is the new money to reduce tuition so that all Canadians can have access to advanced education?

There is a lot of talk about helping consumers. What is the highest cost most Canadian families face? It is their electricity and power bills. Canadians have pleaded to bring back the incentive and support for home energy retrofits and retrofits for small and medium businesses so that they can compete. There is nothing in this budget to assist those consumers.

On pensions, despite the fact that almost all premiers now are onside to beef up the Canada Pension Plan, which unions are behind, as are the majority of Canadians, there is nothing in this budget.

Agriculture is one that really saddens me. Every time we stand up to speak, we get all of this talk back about the glories of how all Canadians are going to be able to benefit from CETA, the proposed new trade agreement with Europe, yet the Conservative government, in its wisdom, killed an 80-year-old program that gave assistance to small and medium farmers in the Prairies. The program had provided special research to make sure that on these sensitive lands, one could farm sustainably.

There were community pastures where small and medium farmers could graze their cattle. It was a successful program for both enabling the sustainability of the pastures and for these important members of our economy to continue contributing their tax dollars.

What did the government do? The government shut down those programs. Not only did it shut them down, it sold off the bulls that were provided to provide for more cattle. The government would not even provide feed during the interim period until the farmers could get away from the harvest and put bids on the bulls. I met with many of those farmers this summer who told me that they are being forced to sell off their herds. How is that helping Canadian farmers contribute to the economy and potentially benefit from this trade agreement?

Those are just some of the many matters missing from the budget bill, which supposedly would help all Canadians participate in the economy.

I would like to speak to Division 7 of Part 3, on disposal of the Dominion Coal Blocks. These lands in British Columbia have been the subject of a lot of controversy lately. There is an agreement on these lands between the Government of British Columbia and six first nations in British Columbia. Those first nations want to undertake forestry activities and have economic opportunity.

It is the understanding that some of these lands will not be sold off for metallurgical coal, to be shipped to China, or for coal gas methane. Instead, some of these lands are supposed to be protected for a future Flathead national park or wildlife preserve.

I am looking forward to some clarification in the House as to first, the first nations that will be directly impacted by these decisions, and second, the citizenry who have been negotiating in good faith with the government on setting aside these lands for the benefit of all Canadians.

The second issue I want to speak to is the phase-out of accelerated capital costs in mining. I simply have a question I look forward to having answered by one of the members of the government. The government says that it wants to incent and encourage mining entrepreneurs to create jobs and income in Canada, particularly in the north. I am looking forward to an explanation as to why these particular accelerated capital costs are being phased out. The government has committed, through the G8, to phase out and reduce its incentives and benefits to the fossil fuel industry, but I remain puzzled by this. Our party supports the mining sector, and we look forward to having an explanation for that one.

The third area is the Mackenzie Gas Project Impacts Act. Very simply, the government is shutting down a fund established in negotiations with all of the communities along the Mackenzie whereby they could be compensated for any impacts that were social or economic in nature. It was a fund that was specifically apportioned to individual communities. I look forward to an explanation as to why, unilaterally, the government has chosen to shut down that fund, to put those monies into general revenues, and to give the minister total discretion in how to disburse those funds. It does not sound like co-operative federalism with the Northwest Territories and the people of the north.

The final matter I would like to speak to is with respect to the changes to worker health and safety. It is deeply distressing that there has been a decision to take away the issue of defining dangerous work from a definition that has been provided in legislation. It provides a broad scope of work that a worker may consider dangerous. The worker then, under legislation, has the right to refuse to work. Instead, the government is assigning total power to the discretion of the minister to narrow that down. Why is there that great concern? It is because the government has been prosecuted and convicted of violating its own health and safety laws and is awaiting sentencing of up to $100,000 and probation. Is this the way the government responds to its atrocious actions in failing to have basic health and safety protections in place for Canadian federal workers?

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Speaker, the member talked about cutbacks to community colleges, which obviously affects tradespersons.

I have been sitting on the natural resources committee for a couple of years, and every time companies appear at committee, their biggest complaint is that they have no tradespeople, such as electricians, welders, machinists, and mechanics. It has become obvious to me that Conservative members on the natural resources committee have not been listening to what these people are saying.

Could the member for Edmonton—Strathcona please tell me why she thinks these members are not listening to what people are saying at the natural resources committee?

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I thank the hon. member who does fantastic work on our behalf in the natural resources area.

The concern we have raised repeatedly is this. The government speaks of the fact that we have a great skills shortage and, apparently, there is some question about that. The experts are debating that right now in the media. If we have a big skills shortage and the government wishes to fill it with indigenous Canadians, then it has to give them basic education and skills so they can compete and apply for those jobs.

The second issue is that indigenous Canadians should have an equal right to any other Canadian to decide what they want to be educated in and what kind of jobs they want to pursue. They do not necessarily all want to be welders and pipefitters. A good number of them do, but a good number of them want to be doctors, teachers and parliamentarians. We remain deeply disturbed that the government is not removing this 2% funding cap on education.

An increasing number of indigenous youth are completing high school, but there is also a cap on assistance for higher education. Therefore, there are many frustrated people out there who would like to pursue other jobs.