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

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, that is a very good question. In fact, we are seeing an erosion of the trust of Canadian citizens in the process. As I mentioned, when 70 different pieces of legislation and regulations are jammed together into one omnibus bill, it does not allow adequate oversight.

If the government actually had confidence in the legislation it was proposing, it would propose stand-alone legislation and allow us the opportunity to bring witnesses forward, but it limits the time, limits the number of witnesses, and limits the ability to have oversight. It makes one wonder if it is actually afraid to hear criticism and afraid to have people turn their attention to the bill.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I have received a lot of emails from my constituents with regard to this particular bill. One was from Murray Gore, who wanted me to ask the question of why the government is going about it the way it is. He wrote:

This bill would water down the definition of “danger” in Part II of the Canada Labour Code to the point it will become the weakest law in the country regulating the right of workers to refuse dangerous work without reprisals from their employers. It will lead to more workplace deaths and injuries in federally regulated industries.

My question to my colleague is this. People are very concerned, especially workers who are being forced to work in dangerous places. Can the member comment on that?

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, that is an excellent question. The member and I are both from British Columbia, and although they were not federally regulated industries, we saw a spike in deaths a few years back in the logging sector. There was some attention brought to bear, and through working with the workers, WorkSafeBC, and the employers, there were some changes made.

What we see here is a regressive step. What we should be doing with federally regulated employment is strengthening workplace safety to ensure that workers have the supports in place that ensure they can go to work and go home safely. It is also a benefit to employers. There are all kinds of things that happen in a workplace when there is an accident.

This is a very unfortunate move on the government's part. The government claims to stand up for working families, but it is hard to believe that statement when it does these things that do not protect the workers and do not protect the workplace.

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, I do appreciate the opportunity to speak to Bill C-4. It is a real privilege for me, not only to speak to it but also to tell my colleagues on the other side that there is good news within this piece of legislation. It is good news on a number of fronts. It is good news for Canadian families. It is good news for Canadian workers.

We have a lot of naysayers on the other side of the House, people who criticize the work that our government has done. There have been a lot of folks saying that more should be done. It is interesting. They want to see a smaller bill. Then they want to include a whole number of additional measures within the bill. It is always a contradiction when we are dealing with the other side.

We listen to the complaints from the other side, but there are some folks who have some expertise when it comes to finance and when it comes to world finance. I think it is important that we listen to them.

We know that there are organizations, such as the OECD and the IMF, that have passed judgment on our government's work and on the efforts that we have undertaken to protect Canada's economy. They have, again and again, praised, not only our government's initiatives, but our finance minister, who has brought forward these initiatives.

We know that there are folks around the world who are watching what Canada is doing and who are seeking to replicate it in their countries, as well.

We are seeing significant benefits as a Canadian population, things that are hitting home in communities across this country. When we look at what has resulted from the work that our government has done following the great recession, we know that there are over a million net new jobs that have been created as a result of the efforts of our government. Specifically, within that million jobs that have been created, over 90% of them are full-time jobs and 80% of those are in the private sector. Therefore, our government's initiatives to bring forward changes have freed up business to create jobs, to create opportunity.

We often talk about these big numbers that often just flow off our tongues but do not really have an impact, I do not think. However, every job is meaningful because it impacts the person who has that job.

Most important, at this Christmas time, we know that many of these jobs that have been created impact families. Families, of course, are one of the most important building blocks of our communities. Having a job makes a world of difference, especially as we approach this Christmas time. To know that our employment rate keeps rising, that the unemployment rate keeps dropping, that more and more families have the necessary means to get what they need to have in order to support their families is great news. It is something that I wish the opposition would spend more time recognizing and spend more time giving credit for. Because I think that we, as parliamentarians, need to be concerned, first and foremost, about ensuring that families have jobs to ensure that families are supported in those mechanisms. This bill would go a great distance to continue that great effort.

I think it is important to reflect on the past. I think it is important to recognize that Canada's track record, when it comes to the economy and making these changes, did not just start yesterday. Many of these changes and these initiatives we have undertaken started nearly eight years ago when our government first got into office. We started to prepare for the possibility of a rainy day.

In the first number of years of our government, we paid off $37 billion of debt. That was surplus. We recognized it was important to reduce the debt of our country, so we paid off $37 billion of the Canadian debt. Any family knows that in order to prepare for a rainy day, if money comes in from a windfall or from any mechanism, the most important thing to do is to pay off any debt. That is exactly what Canada did.

As a result, Canada was praised during the great recession. First, we were prepared for the possibility of that, better prepared than any other of the G8 countries. We also saw that Canada was able, then, to put money into the economy. We were able to support initiatives across this country to help reduce the impact of the global economic recession.

Obviously it was something that was beyond the borders of this country that caused the great recession, but people across this country were feeling the impact of the recession. Therefore, to immediately start flowing out money in an initiative to support local communities and job creation was absolutely essential.

It is important to note that in 2012, the great recession had come and many governments had put a lot of money into their economies to support initiatives to lessen the impact of the recession. Canada had a debt-to-GDP ratio of 34.6%. That was the lowest in the G7 and the second lowest was Germany. It had 57.2%, so a significantly higher debt-to-GDP ratio.

To give some scope of what this meant in terms of our fellow members of the G7, the average debt-to-GDP ratio within the G7 was 90.4%. If members compare 90.4% to Canada's 34.6%, they will recognize, as all Canadians have recognized, that Canada was in a better spot than most other countries. However, Canada has continued to lead, because we will be the first within the G7 to move from a country that continues to run deficits to being a deficit-free country.

Our Minister of Finance has continued to lead and ensure that Canada reaches that point of being deficit-free in the coming months. No other country can boast that. No other country can boast the debt-to-GDP ratio. However, we are not going to sit here and boast. We are going to continue to do the work that is necessary to ensure that we never fall back, that we never fall behind.

We hear many calls from the opposition benches to engage in risky spending schemes. They say it is just a billion here or several billion there. The NDP had plans to bring forward a $20 billion carbon tax and we know that the Liberals have all kinds of interesting plans, including their efforts to raise the GST. We know on this side that it is important for a government to remain constrained to the dollars that come in, not simply to drag in more money from Canadians.

We believe it is important to continue to support families. It is important that families are not taxed to death. As a matter of fact, as a father of three young kids, I had an interesting conversation the other day. My daughter, who is seven years old, told me she does not think Santa Claus is real. She thinks that Santa Claus is her mother and I. It was awkward but I told her that mom and dad help out Santa Claus.

Families across this country are finding it easier to help out Santa Claus because the average family of four is getting $3,200 back that they were not getting eight years ago. As families prepare for Christmas, they recognize that our government has put over $3,200 back into their pockets so that they can support their families and can continue to help out Santa Claus at this time of the year.

The budget bill is our effort to continue to have an environment in Canada where we have opportunity, hope, prosperity and jobs for all Canadians. More importantly, when it comes down to the family level, it means more prosperity and more ability for families to support those who are most important in their lives, such as their kids, and to contribute to the local communities we live in.

I think it is important at this time of giving for the opposition to recognize that the bill is an important step forward to ensure not only that Canadians have jobs, but what that means at the family level as well.

Bill C-4—Notice of Time Allocation Motion

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I must advise that agreement has not been reached under the provisions of Standing Order 78(1) and 78(2) concerning the proceedings at report stage and third reading of Bill C-4, a second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at those stages.

The House resumed consideration of Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Report Stage

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, the hon. member talked about how the Conservatives are putting money into families. He talked about his three children. I have two children, too.

The Conservatives' record speaks for itself. They have accumulated over $100 billion in debt that my kids and his kids will have to pay. That is their record.

My question to the member is this. Who will pay for the mismanagement of the Conservatives that has taken place over the last six years?

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, it is important that we recognize what the Liberal and the NDP plans are in contrast to what the Conservative plan is.

I have been here for the last nearly eight years. There has never been an initiative brought forward by the opposition benches that would reduce taxes or that would work to pay down debt. We have seen consistently, time and time again, that any time our government has engaged in any spending plan, the opposition benches call for those spending plans to be more robust. They want to spend more. They want to take out more debt, and they want to ensure that future generations are saddled with that debt.

Our government has put into each family, the average family of four, $3,200 per year in tax savings. This is important. This is real money. The opposition has voted against every single initiative that would see dollars go back into the hands of families. That is unfortunate.

The opposition has also called for higher debt and more debt for future generations. I will stand on this side of the House and defend our initiatives to reduce debt so that future generations do not have to pay for the decisions and the desires of the other side.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, that is a bit much, saying not more debt when the government inherited a billion dollar surplus and turned it into a billion dollar deficit, on an annual basis. I take exception to that. The hon. member talked about jobs and he talked about plans, but then there is reality.

There was an interesting story in the Hill Times last week. A comparison was done. This is a reality check for the member. It is 93 months since the Conservative government has been in office. The number of Canadians with full-time jobs increased roughly 8.9%. That is 93 months. Compare that to the Paul Martin-Jean Chrétien governments, in the 93 months prior to 2006, full-time jobs increased by 17.1% overall. The reality speaks for itself.

My question related to the budget is this. Why do the Conservatives have to sneak so much other legislation into the budget legislation in order to get their legislative agenda passed? Why not give it the respect it is entitled to and introduce separate pieces of legislation on the very important issues that are being presented in this particular budget?

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, the Liberal government, the Martin government, was well known for not getting anything done. Our government recognizes that Canadians want stuff done, so it brings forward initiatives like those found in the bill.

My colleague from the Liberal Party claims they created more jobs. He references the Hill Times. I will reference organizations like the OECD and the IMF. Those are somewhat more legitimate on economic issues. They have praised Canada consistently. What Canada has done following the greatest recession outside of the Great Depression is remarkable in comparison to any other G8 country.

If my hon. colleague has any advice when it comes to reducing taxes for Canadian families or reducing the debt, I would like to hear it, because that would be the first time we have heard any advice on those two measures from a member of the Liberal Party.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is with pleasure that I rise today to speak to this bill. Ultimately, I am disappointed. Just before we had the questions and answers, we had the government House leader stand in his place and once again bring in this tradition of time allocation and preventing debate in the House of Commons, which I would attribute to the Conservative reform majority government mentality.

It is somewhat disappointing that the government only sees one way to pass through its legislation, and that is through time constraints. There has been an assault on democracy by the majority Conservative government like no other in the history of our nation.

What we are debating today is Bill C-4, which deals with a wide variety of other pieces of legislation that have very little to do with the budget. We are talking about changes to the Supreme Court. We are talking about changes to the Labour Code. We are talking about changes to immigration. We could argue that all of these should be stand-alone pieces of legislation. We should be highlighting this aspect of the debate today on Bill C-4.

In the last three budgets and budget supplementary documents that we have seen, the bills we have been presented with have been massive pieces of legislation. The government has used the budget to try to get past numerous other aspects of law that should have been stand-alone pieces of legislation. The Conservatives know that.

I have a quote. It is from someone who would have been the leader of the Reform Party at the time, and now he is the Prime Minister of Canada. How quickly things have changed. I will quote what he said in the days when he was in the opposition. He said:

We can agree with some of the measures but oppose others. How do we express our views and the views of our constituents when the matters are so diverse? Dividing the bill into several components would allow members to represent views of their constituents on each of the different components in the bill.

That is a direct quote. He asked the government members in particular to worry about the implications of the omnibus bills for democracy and the functionality of Parliament.

That bill was but 100 pages. It was nowhere near as profoundly huge as the three budget bills that the Conservative government has brought forward. The arguments that the then-Reform Party leader was using back then apply today. The government chooses to continue on.

I have heard other members talk about “the tradition of the House”. This is no tradition of the House. If anything, full credit goes to the PMO. Is this the only way that the PMO feels it can pass legislation?

When we talk about other forms of bills that the ministers are allowed to introduce in a proper fashion, what do we see? Time allocation. The Conservative government has brought in over 50 motions of time allocation. What does that mean? It means that there have been 25 hours of House business just on bell ringing alone, not to mention the half hour debates and questions and answers that precede the votes themselves, and the voting time that follows. Imagine the hours and hours that have been wasted because of the Conservative government's determination that the only way to pass legislation here is to bring in time allocation.

The Conservatives have failed, and they have failed miserably, in that the government House leader is unable to sit down with opposition House leaders and come up with agreements on how and when bills, whether they are budget bills or not, should be passed.

I have been a parliamentarian for over 20 years. I have sat down with government opposition leaders, albeit at a different level, and with government House leaders and opposition House leaders in the past, and I have seen the way it should work.

This Conservative majority has demonstrated no willingness to make that happen. Today we are talking about a budget bill. The Conservatives are giving their standard lines. They get the gold star. The PM's office must have someone who is assigned the responsibility of handing out the gold stars every time members go to those speaking lines, that spin, about jobs and prosperity.

Let us remember those commercials and the tens of millions, if not hundreds of millions, of tax dollars spent to promote the government's bills. At the end of the day, Conservatives can be critical of The Hill Times or the stories that show the reality that the government has not done as well as it proclaims it has in regard to job creation.

How many times have we heard the government say that it is going to have surplus budgets? Reality is quite different. The Conservatives took a surplus budget, and this was before the recession kicked in, and they squandered that surplus budget. They turned it into a deficit budget. It did not take them long. They do not have a history of getting Canada's books out of budget situations. In fact, it is quite the opposite. When has there been a Conservative prime minister who was actually able to take a deficit and turn it into a surplus?

Members talk about social programs and say that it was the Conservatives who brought in the social programs. Whether it is Canada's pension program, the OAS, or the guaranteed supplement programs, those are all Liberal creations. They are the ones who brought them forward. Whether it is health care or unemployment insurance, it was the Liberal Party of Canada that brought them forward. We recognized the value of social programs, even if it meant working with other levels of government, which is something the current government is not very good at.

There were even constitutional issues that had to be overcome to bring in employment insurance programs. It was not easy. However, we will find that there are a number of programs today because of the way Liberal governments in the past ensured that the values Canadians hold so dearly were acted upon.

We are concerned about the state of finances. The member talks about tax breaks. The Liberal Party of Canada has been arguing for tax breaks. I do not know where the member is coming from. There have been over one thousand tariff increases. It has been the Liberal Party, day in and day out, talking about those tariffs and some of the taxes put on Canadians.

What about small businesses? Small businesses are the ones generating the economic activity that is creating employment in Canada. The best social program is a job. We should be doing more. We are glad, to a certain degree, that the Conservatives have taken us up on some of the small business tax breaks we have suggested. However, they were Liberal ideas.

When the members stand to speak to Bill C-4, they are limited. The government House leader has indicated that tomorrow we can anticipate whether we are going to get another hour of debate to complement the few hours we have already had, even though we have 308 members of Parliament. However, there is a huge bill before us, and it is not possible to address all the different issues in the bill. That is the reason I find it so difficult to even consider. We have to take it in its entirety when it comes to voting on the bill.

This bill is an assault on democracy. It does not do what it could do in terms of economic activity, in terms of addressing the middle class.

It is going to be the Liberal Party of Canada going forward that is going to be there for the middle class. We believe, at the end of the day, that we need to make a difference and provide hope. That is something we are prepared to do well into the future.

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, this member was gracious enough to stand up and ask me a question when I gave a speech earlier in the House, so I want to return the favour.

The member talks about the Conservatives squandering a surplus. This is Liberal revisionism. I want to ask the member a question. We paid down $37 billion—let me repeat that number: $37 billion—on our national debt from 2006, 2007 and 2008.

By what definition could this member possibly suggest that paying down $37 billion, to the lowest level of national debt in 25 years in the pre-recession period, is squandering a surplus?

Furthermore, I would like to know if the member would have balanced the budget, which will be balanced very soon, in fact by 2015, by slashing transfers to the provinces?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, again, all we have to do is look at the books of the Minister of Finance. It is very clear that when the Conservatives inherited the Liberal Party's books, Paul Martin's finances, there was actually a surplus.

Well before the recession hit, we were in a deficit situation. That is in fact the reality. Even the government's financial documents will clearly show that. The member seems to be in denial on the issue, but that is in fact the reality.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I find it a bit rich that the Liberal member talks about the fact that they represent and fight for the middle-income families. This was a government that basically put in place the 2% funding cap on first nations education. We saw the demise of a lot of funds under the EI program.

How could he as a member of Parliament answer that? Did the government actually do that? Did it impose a 2% funding cap? Did the government actually take away a lot of the funding in the EI program? Did it, in turn, put through omnibus budget bills?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I note that the member is what we call cherry-picking certain issues. I could respond by doing likewise. I have been accused of doing a bit of cherry-picking myself at times. I acknowledge that.

I can say that it was the New Democratic Party and the Conservative Party that killed the Kelowna accord. That would have done more for the first nations than any other negotiated agreement. It was the NDP deciding to get rid of the Liberals and voting with the Conservatives.

What about child care? How many people of the middle class would have benefited from an enhanced child care program, something that was there and was being put into place? Again, the New Democrats voted against that in support of the Conservatives.

Even when we come up with good solid social programs, quite often what we find is that the New Democrats, for some bizarre reason, do not like to support good, solid social Liberal ideas and will vote with the Conservative Party. It is somewhat mind-boggling when I see that.

I would ask that particular member, when she gets the opportunity, to maybe address those two major shortcomings of her party.