Economic Action Plan 2013 Act No. 2

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

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

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

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

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

Elsewhere

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

Votes

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

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:40 p.m.
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Conservative

The Acting Speaker Conservative Bruce Stanton

Order. I appreciate that there is genuine enthusiasm for what the member for Mississauga South has had to say, and I am sure she would love the opportunity to address the question from the member for Davenport.

The hon. member for Mississauga South.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:40 p.m.
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Conservative

Stella Ambler Conservative Mississauga South, ON

Mr. Speaker, I relish the opportunity. I worked for the illustrious Conservative premier who Ontario elected in 1995. Ontarians were waiting for election day in 1995, so that they could throw out the NDP Bob Rae government. In fact, I think the exact same thing happened in Nova Scotia recently. It has been proven that NDP governments do not work.

Speaking of subways, I wish I could talk a little more about subways, because there was a great announcement in Toronto of $660 million to build a subway. I know the member for Scarborough Centre is so pleased about that. So are many other Torontonians.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:40 p.m.
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Liberal

Yvonne Jones Liberal Labrador, NL

Mr. Speaker, I want to confirm for my colleague that, yes indeed, they have thrown out the NDP government in Nova Scotia.

Our Liberal leader has certainly outlined the tremendous opportunity we have in the economy of Canada and a platform that we will bring forward as the Liberal Party. One of the main planks in this platform that she needs to realize is paying down the huge debt that has been accumulated under the Conservative government. It has increased the debt by $150 billion since it took office.

The Liberal governments in the past have paid down a debt of $150 billion in our country once, and we are poised to do it again. It will be done through the economic initiatives that will be announced by the Liberal leader. I want to make sure that the hon. member knows that.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:45 p.m.
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Conservative

Stella Ambler Conservative Mississauga South, ON

Mr. Speaker, what I do know is that when the Liberals are in power they balance the budget by cutting transfer payments to the provinces. That might be the easy way of doing it, but that is not how we are doing it because it is not the right way. When it is done that way, it hurts children, seniors and families. That is not how we are going to balance the budget.

I imagine that if the Liberals have a plan, that must be their plan. Let us hope Canadians do not fall for that, because that is not the right way to balance the budget.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:45 p.m.
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Conservative

Ed Holder Conservative London West, ON

Mr. Speaker, I was very touched by the comments of the member for Mississauga South when she talked in terms of growing up in a family business and what that meant to her.

It made me think about the opportunities I had, not so much in a family business. My dad was a pretty poor truck driver from Holderville, New Brunswick, and my mum was from Cape Breton. Our family was born out there, so we never had quite the same opportunities, not that opportunities are not there on the east coast, but my parents moved to Upper Canada and some things happened from there, so we have carried on in this family business tradition.

Appreciating the importance of family business, and I am thinking of how small business can survive, what does the member feel this budget would do to help small businesses to grow, because those folks are the real job creators in this country?

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:45 p.m.
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Conservative

Stella Ambler Conservative Mississauga South, ON

Mr. Speaker, I would like to thank the member for sharing his story. Maybe he could confirm by a nod whether the town was really called Holderville. It is excellent that the town was really called Holderville.

It sounds as if my friend and colleague understands small businesses too; for example, what a great advantage the hiring tax credit is to 500,000 businesses in Canada. We are talking about people who need a job, want a job, want to work hard and want to put food on the table and be able to do their fair share in their communities.

Our policies, initiatives and budget and this economic action plan allow them to do that. That is why I am so proud. It fits in nicely with what I did when I was growing up. It fits in with the kinds of values I learned through hard work and the fact that my father ran his own business for almost 40 years.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:45 p.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I also grew up in a family business and I appreciate some of the points overall. I have been listening to speeches all day and the references to job creators, to businesses. Right now we have very low corporate tax rates, lower than other countries in the OECD. As a result, the corporate profits from any company in the U.S., they now have transferred those corporations paying taxes to Canada to paying taxes to the United States.

Economists, everyone from Mark Carney, our former bank governor, to the RBC economist looks at what has happened. Corporations are not reinvesting that money in hiring Canadians. They are not job creators. These deep tax cuts are where jobs go to die. It is now called dead money. Over $600 billion in dead money, an astonishing 32% of GDP, is not being used by those corporations to create jobs to invest in Canada to modernize.

I wonder when the Conservative Party is going to recognize that this is a failed strategy and that there is no empirical evidence whatsoever that its strategies are creating jobs.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:50 p.m.
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Conservative

Stella Ambler Conservative Mississauga South, ON

Mr. Speaker, I would disagree that there is no empirical evidence. The evidence is in the numbers, over one million net new jobs created. We talk about it a lot because it is really important. We are talking about lowering taxes for small business. We are talking about lowering taxes 160 times for ordinary average Canadians.

If my friend and colleague from Saanich—Gulf Islands does not believe that lowering corporate taxes for businesses creates jobs, then we do have a fundamental disagreement. I think that when government takes away from the bottom line of corporations or businesses, they are going to look into reinvesting that and expanding. When they expand and reinvest, they need to hire more people. That is how it works, and that is why we lower the taxes.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 5:50 p.m.
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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, it is an honour to rise in this place on behalf of the good people of Davenport in the great city of Toronto to speak to Bill C-4, the budget implementation act.

This is another example of a missed opportunity for the current Conservative government in terms of job creation and in terms of accountability and transparency. It really underlines the mean-spiritedness in which the government participates in the process of bills and law-making in this House.

I have been listening very carefully to some of the debates and comments from my hon. colleagues on the government side, and it is almost as though they live in this fantasy world where they give the greatest gifts to the wealthiest corporations and keep saying over and over what neo-conservatives have been saying for 30 years, that these wealthy corporations will just trickle that money down like manna from heaven and we will all just be fine.

I listened with particular interest to my colleague from Mississauga who talked about her father's small business. I also listened to the member across the way, who grew up in the town named after him, talk about his family and small business.

Where I come from in Toronto, small businesses are one- and two-person operations. Small businesses are operated out of people's kitchens and basements. Small businesses are a mother and father working 12 or 13 hours a day running a store on Bloor Street. They are looking for some relief and what they are hearing is that the government has been doling out these wonderfully handsome tax breaks to the wealthiest corporations in Canada, who are not investing back into the economy but are sitting on the money. There is nothing in this bill that deals with one of the most significant issues of our time, and that is how we deal with the explosion of precarious work in our society.

In Toronto, in the GTA right now, in the member's riding of Mississauga South no doubt, almost 50% of workers cannot access a full-time, stable job. That is an outrageous statistic, which should engage this entire House, not just because it is my city but because it is an outrageous statistic. We are letting down and failing workers, and in particular we are failing young workers.

This budget implementation act, which would again throw in more than 70 law changes with everything but the kitchen sink in here, has not a single thing to address precarious work in our society. We listen to the rhetoric of job creation on one hand and we see the stats on the other hand where 15%, 16% or 17% of young people are unemployed, and that is the official rate that does not include those who have given up and those who are working very marginal, part-time jobs. This is the reality for so many urban workers: precarious work. People cannot find a full-time job. We are talking about folks who are now working as independent contractors.

The Conservatives are so consumed, almost obsessed, with their attack on organized labour that they cannot understand that people who run a small business want customers to come in. Those customers actually have to make a living wage in order to spend some of their money in the store. This is what the Conservatives do not understand. They do not understand the realities of urban workers today. They do not understand the reality of small business today.

We proposed many measures that would make it easier for small business owners to deal with their business.

We have a consumer program this government has borrowed some ideas from. They should actually take the whole thing. We would be willing to give it to them, because there are some excellent ideas, and they would actually deal with some of the main problems small businesses face with things like transfer fees for credit cards at point of sale, and that sort of thing. These are the issues many small businesses bring to us, which is why we have brought our proposals to the Canadian public on some of the very important issues for small business.

This is a government that, along with the Liberals, pillaged the employment insurance fund to the tune of about $57 billion and that is making it harder for Canadian workers to access the program to which they contributed. This is not the government's money. It is workers' money. We have legions of workers who cannot access basic employment insurance, basic income security, in times of need. Those times of need for many people are right now.

The Conservatives talk about job creation. They never talk about the kinds of jobs they are creating. In the GTA, we have a preponderance of $10.50 an hour jobs. I do not know, and I would be interested to find out from the member from Mississauga, if people in her riding could live on $10 an hour. Could they pay their rent? Could they raise a family? Can people raise a family on minimum wage in Toronto or in this country? The answer is absolutely not. It is very difficult. That is why people are working multiple jobs. It is why the fabric of our society is in such turmoil. It is because people in our large cities are working day in and day out just to survive. It is impacting on people's health.

We now know that precarious work adds incredible stress to the body. We have not calculated the health care costs of ripping the support from under workers today. I do not see that calculation in this.

We have not seen the government actually focus any attention on youth employment. The other day, the minister said, in answer to a question on precarious work, that if young workers have a problem in their workplaces, they should complain to the various tribunals out there. They are putting the onus on young people who, right now in Ontario, for example, are graduating, on average, with about $37,000 of debt. Then they are being welcomed into a workforce where they are either offered jobs that do not pay any money, as interns, or piecemeal jobs. They cannot get into the fields they studied for. The other day the minister said that they could blow the whistle on their companies if they feel that they are being treated poorly.

We are failing young workers. The government has utterly failed to address some of the key issues that affect urban workers. The fact is that too many people cannot access a workplace pension. Too many of us cannot access any kind of workplace benefit, and there is absolutely no job security for urban workers. All the bill does is make it worse.

The member from Mississauga talked about key tax cuts that would reap benefits for all Canadians, but what we are seeing in reality is that the tools the government uses to deal with the economic issues have just made things worse.

Bill C-4 is the fourth attempt in two years by the Conservatives to evade scrutiny by parliamentarians and the public. Canadians are watching. They want to see the government and this place function the way it is supposed to, which is with proper scrutiny. This side of the House, the official opposition, is doing its job. We would like to see the Conservatives start to do theirs.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 6 p.m.
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Conservative

Stella Ambler Conservative Mississauga South, ON

Mr. Speaker, I would like to ask the member for Davenport specifically about jobs.

Does the member know that of those million jobs, roughly 90% are full time and that these are jobs created not by government but by individuals who run their own businesses and understand the importance of creating jobs?

I understand that good wages are important, but I also understand that at some point, you have to have that job and be able to move up. It is about having a job and then supporting your family. I want to know what the member's plan is to make it better that we are not doing. What would he do differently?

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 6 p.m.
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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, it is no secret that the first priority of our plan is to get rid of the Conservative government. That is the first step.

To the member's point, people come into my office who are working full time through a temp agency. Do you know how much they are making? They are bringing home $8.00 an hour. One cannot live on that.

If you want to talk about full-time jobs, come to Davenport and talk to people who are working in temp agencies and find out whether you can live on $8.00 an hour. Come to Davenport.

Economic Action Plan 2013 Act No. 2Government Orders

October 24th, 2013 / 6 p.m.
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Conservative

The Acting Speaker Conservative Bruce Stanton

I would remind hon. members to direct their comments and questions through the chair.

The hon. member for Davenport, should he wish it, will have two minutes remaining in the period for questions and comments when the House next resumes debate on the question.

It being 6:04 p.m., the House will proceed to the consideration of private members' business as listed on today's order paper.

The House resumed from October 24 consideration of the motion that Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, be read the second time and referred to a committee, and of the amendment.

Economic Action Plan 2013 Act No. 2Government Orders

October 25th, 2013 / 10:05 a.m.
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Conservative

John Carmichael Conservative Don Valley West, ON

Mr. Speaker, it is with great pleasure that I rise today to speak on our economy and the second budget implementation act of our government's economic action plan 2013. The implementation of these remaining provisions would have a tremendously positive impact on the lives of all Canadians. While many of the changes in Bill C-4 are technical in nature, many provide clear benefits for all Canadians.

Our Conservative government is focused on what matters to Canadians: growing the economy, helping to create jobs, balancing the budget and reducing the cost of government. We are achieving this with the longest-serving Minister of Finance in the G7 at the helm, who is providing Canada with strong fiscal leadership, management and responsibility.

Our actions have not gone unnoticed. Both the IMF and the OECD expect Canada to be among the strongest-growing economies in the G7 over this year and next. The World Economic Forum has rated Canada's banking system as the world's most sound for the fifth year in a row. Three credit rating agencies, Moody's, Fitch and Standard and Poor's, have all reaffirmed their top rating for Canada and expect it will maintain its AAA status in the year ahead. Canada's fiscal fundamentals are solid, and they are sustainable.

Canada is on a strong economic footing. Since the depth of the recession, over one million net new jobs have been created, mostly in high-wage industries. There are now 605,000 more jobs than at the pre-recession peak. This is the strongest job growth in the G7 over the course of the recovery. Almost 90% of all jobs created since July 2009 have been full-time positions, with close to 85% of those in the private sector. Also, the growth levels are above pre-recession levels, as I stated.

Jayson Myers, president and CEO of Canadian Manufacturers and Exporters, had this to say:

We have a strong Canadian dollar because investors around the world want to put their money into Canada. They see a better fiscal environment, a strong financial sector, and the strength of the resource sector.

A recent study by KPMG concluded that Canada's total business tax cost, which includes corporate income tax, capital taxes, sales tax, property taxes and wage-based taxes, is more than 40% lower than in the United States. In short, our government has created an environment that encourages new investment, growth and job creation, and ensures that Canada has the strongest fiscal position and lowest business tax costs in the G7.

Earlier this week, the media were reporting that last year's federal deficit came in at nearly $7 billion lower than projected. This is an undeniable sign that our government is on track to balance the budget in 2015-16, a promise we made to Canadians back in 2011.

As many Canadians are now aware, our government recently reached an agreement in principle on a free trade agreement with the European Union. This historic agreement will create thousands of jobs for Canadians and give Canadian business access to half a billion new customers. This is the biggest deal so far in Canadian history, and may be remembered as the biggest trade agreement that Canada has ever signed. The Canada–European Union Comprehensive Economic and Trade Agreement will open new markets to Canadian exporters throughout Europe and generate significant opportunities for all Canadians.The benefits of this agreement are equivalent to creating 80,000 net new jobs, or increasing the average Canadian household's annual income by $1,000.

On the first day that the agreement comes into force, 98% of all European Union tariffs will be eliminated, directly translating into increased profit and opportunity for Canadian businesses of all size and in every part of our country. Whether a fisherman in Atlantic Canada, a forestry worker in Quebec, an auto worker in Ontario, or an engineer in the west, each will benefit from this agreement. Jayson Myers went on to say that, “This is the Wayne Gretzky of trade deals”.

Canada's automobile industry, to name but one, stands to benefit tremendously from this deal. Currently, Canada exports approximately 13,000 vehicles a year to the European Union. This agreement will increase that number up to 100,000 units annually. It goes without saying that this increase in annual exports will have a direct correlation to the number of jobs in the Canadian automobile industry, undoubtedly adding hundreds, if not thousands, of employees to Canada's vehicle, equipment and parts manufacturing companies.

Kevin Williams, president of General Motors of Canada, had this to say:

We applaud Canada and the European Union for completing a modern, high-standard comprehensive economic and trade agreement that will provide enhanced opportunities for growth in both regions. We appreciate the hard work to find creative solutions that improve market access for Canadian-produced automobiles, while ensuring Canada continues to benefit from the integrated manufacturing sector that has developed in North America over the past 50 years.

Supporting small business is something our government takes very seriously. Small businesses make up to 98% of businesses in Canada, all of which are in the midst of celebrating Small Business Week. It makes me tremendously proud to speak about how this bill would provide support for Canada's job creators. This bill includes in it a number of key measures to support business, including extending and expanding the temporary hiring credit for small business for one year. Approximately 560,000 small businesses will benefit as a direct result of this measure. We are also increasing the lifetime capital gains exemption from $750,000 to $800,000 and indexing it going forward. The lifetime capital gains exemption will increase the reward for investing in small business.

In response to the global recession, the government froze the EI premium rate in 2010 at the lowest level since 1982. We are again freezing EI premium rates, this time at 2013 levels, for the next three years. With this freeze in 2014 alone, we are leaving $660 million in the pockets of job creators and Canadian workers. This tax relief will help provide employers, especially small businesses, with the certainty and flexibility that they need to keep growing.

Since forming government in 2006, our low-tax plan for Canada has allowed for small business to see their tax bills drop by 34%. Corporate income taxes have been lowered as well. In fact, Canada currently has the lowest corporate income tax rate in the OECD, as I referred to with regard to the KPMG report. That is a carrot that is more powerful and effective than any marketing campaign in attracting foreign investment to Canada.

In recognition of the ongoing uncertainty in the global economy, the bill also announces extending the temporary accelerated capital cost allowance for new investment in machinery and equipment in the manufacturing and processing sectors for an additional two years. This will provide the sector with support of $1.4 billion over four years for retooling, and will enhance competitiveness and economic growth and enable manufacturing and processing companies to plan and invest over the coming years.

We are delivering a new $53 billion building Canada plan to invest in Canada's public infrastructure over the next 10 years. This will create jobs, promote economic growth and provide a higher quality of life for families in every city and community across this great country. One of the new building Canada plan's three key funds, the community improvement fund, has had a direct investment in my riding of Don Valley West, by providing just under $1 million to the Canadian National Institute for the Blind. The funds are being used to renovate, and eventually reopen, the CNIB's pedestrian bridge, which has been closed since 2011. This bridge is essential for patients, visitors and employees to safely cross one of Toronto's busiest streets.

I will wrap up by saying that this bill puts forth a number of measures that are meant to respect taxpayers' dollars. While the opposition is busy focusing on issues that do not matter to Canadians, our government remains focused on the task at hand. We continue to look for ways to increase the efficiency of the inner workings of government and making sure that job creation and economic prosperity are at the forefront of any new legislation. With that in mind, this bill would make significant improvements that would benefit all Canadians.

Economic Action Plan 2013 Act No. 2Government Orders

October 25th, 2013 / 10:10 a.m.
See context

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I note that the member who just spoke on Bill C-4 is wearing the poppy, like I am, and as all of us should be in these weeks before Remembrance Day.

I know the member, and I know he is sincere in wanting to honour the men and women who served our country with such courage and made such tremendous sacrifices on behalf of the Government of Canada and, more importantly, on behalf of all the people of Canada.

However, in Bill C-4, we have changes that adversely impact those very veterans we are honouring by wearing the poppy. Bill C-4 reduces the number of permanent members of the Veterans Review and Appeal Board, from 28 to 25. If we are going to be serious, we need to address the fundamental issues with respect to the board.

On this side of the House, my NDP colleagues and I, and in particular the member for Sackville—Eastern Shore, have been advocating for a very long time that we replace the politically appointed board with a medical, evidence-based, peer-reviewed process for making decisions on veterans' disability applications.

I want to ask the member a question. He, like us, is wearing the poppy in this House today. Will he not do the right thing, honour veterans and vote against this bill that takes away services from Canada's men and women in the armed forces?