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

[Bryan Hayes, Conservative, Sault Ste. Marie, ON]

Mr. Speaker, I am pleased to have the opportunity to add my comments to today's debate on Bill C-4, a piece of legislation that would create jobs and economic growth in communities across our country, including my riding of Sault Ste. Marie. Indeed, today's legislation is part of our government's plan to create jobs and economic growth and to secure Canada's long-term prosperity for years to come.

As a matter of fact, since 2006, our government has been taking concrete action to ensure that Canada's economy remains strong. Unlike the high-tax New Democrats and Liberals, our Conservative government believes in keeping taxes low and leaving more money where it belongs: in the pockets of hard-working Canadian families and job-creating businesses. That is why since 2006 we have cut taxes over 160 times, reducing the overall tax burden to its lowest level in 50 years. Overall, our strong record of tax relief has helped remove over one million low-income Canadians from the tax rolls. That is not all. It has also meant savings for a typical Canadian family in 2013 totalling over $3,200.

How did we accomplish this? The answer is simple. We have cut taxes in every way government collects them: personal taxes, consumption taxes, business taxes, excise taxes, and more. This includes cutting the lowest personal income tax rate to 15%; increasing the amount Canadians can earn without paying tax; introducing pension income splitting for seniors; reducing the GST from 7% to 5%, putting an estimated $1,000 back in the pockets of an average family; introducing the tax-free savings account, the most important personal savings vehicle since RRSPs; reducing the small-business tax rate from 12% to 11%; eliminating consumer tariffs on babies' clothes, sporting goods and exercise equipment. The list goes on.

It is measures such as these, which leave more money in the pockets of Canadians, that have helped Canada to emerge from the recession in one of the strongest positions among the developed world. In fact, since the depth of the recession, over one million net new jobs have been created, with most in high-wage industries. This is by far the strongest job creation record in the entire G7. Indeed, Canada's unemployment rate is at its lowest level since December 2008 and remains below that of the U.S., a phenomenon that has not been seen in nearly three decades. Contrary to what the opposition leaders may believe, Canada is on strong economic footing.

However, we are not the only ones who think so. Let us see what others are saying. Moody's report on Canada for 2013 states that thanks to its diversity and solid fundamentals, Canada's economy has weathered the post-global financial crisis period better than most of its peers.

According to Fitch Ratings:

Canada has a good track record of prudent fiscal management. Its fiscal credibility was boosted by the timely withdrawal of the fiscal stimulus implemented during the global financial crisis and the roadmap provided...to achieve a balanced federal government fiscal position by 2015/16. ...the consolidation path is realistic.

With reviews like these, it is no wonder Canada is one of the few countries in the world to boast a AAA credit rating from the three major credit rating agencies.

Let us talk a bit about support for job creators. Despite Canada's economic success, we cannot become complacent, and our government understands that. We have repeatedly said that Canada's economy is not immune to economic challenges beyond our borders. We have been and will continue to be impacted by the ongoing turbulence in the U.S. and Europe, among our most important trading partners. That is why the Canada–EU trade agreement is so significant. It will bring an additional $12 billion annually to the Canadian economy, creating 80,000 new jobs and opening up a market of 500 million consumers and a $17-trillion economy.

That is also why economic action plan 2013 focuses on positive initiatives to support job creation and economic growth while returning to balanced budgets, ensuring Canada's economic advantage remains strong today and into the future.

Today's legislation contains a number of measures to support job creation and economic growth. This includes extending and expanding the job hiring credit for small business, which would benefit an estimated 560,000 employers and provide an estimated $225 million in tax relief in 2013. Bill C-4 would also increase and index the lifetime capital gains exemption. This positive measure would increase the rewards of investing in small business by making it easier for owners to transfer their family business to the next generation of Canadians. Today's legislation would also expand the accelerated capital cost allowance to further encourage investments in clean energy generation.

That is not all. Our government is continuing to build on our sound economic position by freezing EI premium rates for the next three years. This action alone would leave $660 million in the pockets of job creators and workers in 2014 alone.

Despite what the opposition may have us believe, this tax relief would help support Canada's continued economic recovery and sustained, business-led, long-term growth. However, do not take my word for it. Let us hear what others have to say. Diane J. Brisebois, president and CEO of the Retail Council of Canada agrees. She says, “This freeze on premiums will mean more money for employers to invest in other important areas such as employment, training and infrastructure.”

Dan Kelly, president of the Canadian Federation of Independent Business, said the “announcement of an EI rate freeze is fantastic news for Canada’s entrepreneurs. This move will keep hundreds of millions of dollars in the pockets of employers and employees which can only be a positive for the Canadian economy.”

There is more. Joyce Reynolds, the Canadian Restaurant and Foodservices Association's executive-vice president of government affairs notes:

Payroll costs have a significant impact on overall labour costs. They are a barrier to hiring, particularly for inexperienced workers.... We are pleased the government is demonstrating commitment to youth...by holding the line on these profit-insensitive costs.

Unlike the opposition, our government understands that tax relief is important to Canadian families. I encourage the members opposite to vote in favour of this important measure, which would leave more money in the hands of Canadians.

Canada is leading the world in job creation, with more than one million net new jobs created since the depth of the recession. However, there is work yet to be done. That is why implementing Canada's economic action plan is so important. It is for that reason that I urge all members of the House, and especially the members opposite, to support these job creating measures.

Although, who are we kidding, we all know the opposition will be voting against these measures as they have time and time again. The only thing the NDP seems to support are risky spending schemes and forcing a $20 billion carbon tax on Canadian consumers and job creators. That is more than I can say for the Liberals, who unbelievably do not even have a plan for the economy. They have announced the plan will be released during election mode in 2015. That is unheard of.

It is clear, and Canadians know this, that when it comes to the economy, our Conservative government continues to be the right choice.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, now that the member has very obediently recited his talking points on this issue, I note that he was very interested in quoting people in support of his statements. I have a quote for him, and I would like him to comment on it. It comes from Michel Leblanc, who is president and CEO of the Board of Trade of Metropolitan Montreal. He is referring to labour-sponsored funds, for which, as we know, the tax credit for investors will be gradually eliminated, falling from 15% to 0%.

Mr. Leblanc's remarks are as follows:

Labour-sponsored funds are a key part [of our financial ecosystem]. They have invested more during hard economic times. They have helped Quebec perform better. Quebec businesses did not suffer the credit crunch [in 2008 and 2009], as was the case elsewhere.

It clearly states here that abolishing the tax credit could result in the elimination of 20,000 jobs in Quebec and that more than 110,000 jobs have been created so far and are being maintained by the FTQ's Fonds de solidarité.

I would like to know how the member for Sault Ste. Marie can justify this measure, which will destroy jobs in Quebec.

[Bryan Hayes, Conservative, Sault Ste. Marie, ON]

Mr. Speaker, the reality is that there have been over one million net new jobs since we formed government, since the depth of the recession. That is what is important to Canadians.

We are going to create even more new jobs with the Canada-European Union trade agreement. As a matter of fact, the Canadian Chamber of Commerce said, “with the global economy continuing to struggle, such initiatives are more important than ever”. The Canadian Federation of Independent Business applauds the federal government. The Canadian Council of Chief Executives said, “For Canadian consumers, companies and workers, the overall impact [will be] positive”. The Forest Products Association of Canada said, “We welcome this trade deal and appreciate the government’s...push in the area of freer trade”.

This government is working toward jobs. It is positively happening and will continue to happen.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the comments the member is making. One of the biggest concerns Canadians have is with the whole process we are expected to follow with the Conservative majority government mentality, which uses budget implementation bills to corral other legislative initiatives, pack them in and then apply time allocation, thereby preventing due diligence and an adequate amount of debate on a wide variety of bills. In fact, when he was in opposition, the Prime Minister was very upset when the Liberals introduced an omnibus bill that had 100 pages to it. The current bill is 400 pages. In the last session another was 500 pages. We had one that was 800 pages. They are huge bills.

With regard to his thoughts on providing due diligence, how does he justify putting time allocation on a bill that would change so much in terms of legislation? It is not just the budget we are talking about but many other pieces of legislation. How does he justify that to Canadians?

[Bryan Hayes, Conservative, Sault Ste. Marie, ON]

Mr. Speaker, at that time I actually was not in opposition. I am a new member of Parliament but that is okay, I am happy to be here now.

With respect to this particular budget—

[Robert Sopuck, Conservative, Dauphin—Swan River—Marquette, MB]

We're happy to have you.

[Bryan Hayes, Conservative, Sault Ste. Marie, ON]

Thank you, I'm happy to be here.

Every Canadian had access to pre-budget consultations. In my riding, I held budget consultations. I stood in front of city council and had budget consultations with council members. I gave them the opportunity to speak and listened to their concerns. That is what is incorporated in the budget implementation bill, the concerns of my constituents and constituents across Canada.

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, I want to thank my good friend for his thoughtful words. I am reminded by not only his speech but the speech from the previous speaker, the parliamentary secretary, of a good friend of mine that I went to university with, Dr. Brent Weinhandl, a dentist in the city of Wetaskiwin. After the election in, I believe, 2000, when the Liberals somehow won and had no right by our standards to do so, I said to him, “That's it, I'm moving out of here. I can't stand these high taxes. I have the skills necessary and I'm going to move to the States”. I cooled off a little, but the next day I phoned him up and he had already made the move to sell his business and move to the States to avoid the taxes and the gross misconduct of the previous government.

I want the member to talk about the value of the low taxes that we have across the board and also what was in the throne speech about capping spending and legislating mandatory balanced budgets.

[Bryan Hayes, Conservative, Sault Ste. Marie, ON]

Mr. Speaker, that was a great question. As a former small-business owner in my riding of Sault Ste. Marie, I cannot say enough about low taxes. They are so necessary.

For major corporate employers in Sault Ste. Marie, such as Essar Algoma Steel, Tenaris Algoma Tubes, G-P Flakeboard, it is absolutely imperative that the corporate tax rate stays where it is. This is a globally competitive economy. We need to compete and we have a government that understands that.

[Yvonne Jones, Liberal, Labrador, NL]

Mr. Speaker, I am honoured to stand in the House to speak to the debate that is ongoing here and to talk about my riding and the economy in that part of our country.

First of all, I want to thank the people of Labrador for electing me as their member of Parliament and for allowing me the great privilege of representing them in the House of Commons of Canada. I also want to acknowledge and thank my colleagues within the Liberal Party and our leader of the Liberal Party for having such a dynamic vision for Canada, for being part of a team that is out there promoting the Liberal values and morals that are the foundation of our country.

I live in a very beautiful and vast region of this country. Even to this day, very few people know of its beauty and the value of its place in our country. It is known as “the land God gave to Cain”, which was coined by an explorer, Jacques Cartier, in 1534. It is a land known for its rugged beauty and distinct culture and as the resource energy house of the province of Newfoundland and Labrador. It is a vast landscape that has spiritual beliefs steeped very deep within its roots, and these roots are far-reaching and wide.

Let me give that statement a bit of context as I tell members about Labrador. Labrador's land mass is roughly 300,000 square kilometres. To look at it another way, we could fit the entire provinces of New Brunswick, Nova Scotia, Prince Edward Island, and the island of Newfoundland within Labrador's borders. This is a good reason so many people call Labrador “the big land”. I do not have to tell my colleagues what it is like trying to travel through my riding when I have to cover that kind of distance over so many different communities, some that are completely isolated, others that are connected by road.

For thousands of years, the indigenous people, including the Innu and the Inuit, harvested the land and the sea for the sustenance and longevity of their communities without much involvement or interference from anyone, including governments. However, as time passed, and through the late 1700s and early 1800s, trading with European companies increased. We have heard a lot of talk about trade with Europe in recent days.

Even back in the 1800s, trading with European companies was starting to increase. More and more, the English and the French began to settle in Labrador, as well as missionaries, including the Church of England, the Methodists, the Moravians, and the Roman Catholics. All of those faiths shared a belief with the indigenous people. To this day, the Moravian and the Roman Catholic churches remain an important piece of modern-day aboriginal culture in many parts of my riding.

Labrador's history is indeed rich and indeed has been very challenging over the years. Labrador was under Quebec jurisdiction between 1774 and 1809, when it was returned to Newfoundland. Quebec disputed the decision until 1927, which is actually just less 100 years ago. It was the British Privy Council at that time that defined the western boundary of Labrador and deemed Labrador to be under the jurisdiction of Newfoundland. There was no vote. There was no referendum. In fact, at no time in our history did anyone ever ask the people of Labrador what they wanted.

That is how the evolution of the great riding I represent came to be today. The political drama of who was to own Labrador did not end there, however. In 1932, the then bankrupt Dominion of Newfoundland was embroiled in a political vote and scandal that saw the resignation of its prime minister, Sir Richard Squires, and the attempted sale of Labrador back to Canada. The deal to sell the big land fell through, and once again, without any input from Labradorians, Labrador was given back to Newfoundland.

As part of the youngest province in our great country, our history's future began to speed up with the onset of World War II. The Canadian Forces base in Goose Bay, now forever known as 5 Wing Goose Bay, was built in 1941. It was used by the United States and Canada during the war that saw thousands of military personnel change the landscape and identity of Labrador forever.

Central Labrador is now the hub of that region. It is where south meets north and west connects east. Labrador is home to roughly 30,000 people, with approximately two-thirds of them living in western and central Labrador. Western Labrador is where some of the largest and richest iron ore deposits in our country are. In fact, it has some of the largest deposits of iron ore in North America.

The natural resources available in Labrador have caught the world by storm. At no other time in history has there been so much international attention and interest in the region, from iron ore to nickel to hydro-electric power, not to mention the natural gas and oil that is being discovered off the Labrador coast. All of this development and exploration has had many effects on Labrador and on Labradorians, some of them positive and some of them negative.

What this progression has done for our province on the world stage is have a direct and undeniable effect not only in world markets but on the future of our aboriginal people.

Labrador is home to three distinct aboriginal cultures. This adds to the colourful tapestry of our history and our lineage. As I alluded to earlier, for thousands of years, the Inuit and Innu travelled throughout Labrador, hunting and fishing and later trading with Europe.

Today the indigenous people have made many positive strides in self-governance and preservation and promotion of their own culture. In 2005, the Labrador Inuit Association, the political advocacy group that represents the Inuit in Labrador transitioned to self-government with the formation of the Nunatsiavut government.

Now under the leadership of their president, Sarah Leo, the Nunatsiavut government has direct control over Labrador Inuit lands and has regional governance over five communities in northern Labrador. In fact, the impact of the Inuit in Labrador is far-reaching. In southern Labrador, there is evidence of Inuit settlements and documentation of English and French traders working with and engaging in social activities with the Inuit people.

Today, the NunatuKavut community council, which is led by former member of Parliament, Todd Russell, represents some 6,000 southern Labrador Inuit and continues to press the provincial and federal governments for their own land claims, self-government, and recognition. I will push for them, as well, under Canada's aboriginal self-governance model, because they deserve to be represented as part of the aboriginal Inuit population of Labrador.

We reference Canada as a multicultural country. Labrador being one of the most unique regions of this nation could be considered a multicultural body in its own right. Like the Inuit and Innu of Labrador, we have a deep spiritual and strong practical connection to the land and to the sea. The Innu first nations people, numbering over 2,200, are formally represented by the Innu Nation. They live mainly in two communities in Labrador: Sheshatshiu in central Labrador and Natuashish in the north coast of Labrador.

Since the formation of the Innu Nation, the Innu people have benefited greatly from many natural resource developments in the region, and like the NunatuKavut, the Innu Nation has land claim agreements and impact benefit agreements with both the provincial and federal governments.

The aboriginal peoples, along with the white settlers, who date back nearly 400 years in that area, and the Basque whalers who came from Spain over 1,500 years ago, are the people who chose Labrador as their home. They have all gifted us with their knowledge and colourful history and have shown Labrador respect, demanding only the best from those who govern and real attention from those who choose to be the decision-makers in their land.

This last year, Red Bay, which was the home of the early Basque settlers who came from the old country, was designated a world UNESCO district. I want to congratulate all those involved in making this happen for the community of Red Bay. It puts Labrador on the map of the world so that many people may learn who we really are, not just as Labradorians and Newfoundlanders but as Canadians.

Labrador is also home to Torngat Mountains National Park, which lies in the sacred lands of the Inuit and borders Ungava Bay in the north. I have had the opportunity to hike and camp in the Torngat Mountains. I have witnessed the melting of the glaciers and have seen first-hand the impact of modern-day industry on our environment. Those who defy that such things are happening are living in a land that will continue to suffer because of their attitude.

In my treks through the Torngat Mountains, I have had the opportunity to learn the trails of the early Inuit who crossed over from Labrador to Quebec, and yes, I have been to the highest peak in Labrador. The view from there is breathtaking, as it is from all across our country.

Today we are focused on two other famous Canadian landmarks that lie in the heart of my riding of Labrador: the Mealy Mountain national park, which is currently in the planning and implementation phases at Parks Canada; and Battle Harbour, the 17th century fishing village that represents our fishing industry and trade with Portugal, Spain, and France as well as the link for the Newfoundland floater fishery for more than 200 years.

Battle Harbour is currently designated a national historic site, yet it is run by a non-profit board that finds it difficult to continue without core funding. This historic piece of Canada is at risk without the financial support and recognition of Heritage Canada and the Canadian government.

We are a country that takes pride in who we are and in our history. Therefore, we should always make way to ensure that it is preserved and continues to tell the story of a great nation.

As rural Canadians and distinct aboriginal cultures, our challenges as a society are compounded. We have some of the largest developments and exports of minerals, such as iron ore, nickel, and copper, and the largest energy development project in history, on the Churchill River, with another development ongoing that will add 850 megawatts of clean energy to Canada's energy warehouse. We have a fishery with export and harvesting partnerships that we share with the Arctic and other foreign jurisdictions.

We have a tiny population of 30,000 people over 300,000 square miles, but we employ at least 3,000 or more people, other Canadians who fly in and out of Labrador, on a daily basis. We are very proud of our industrial record and of what we are able to contribute to this country from such a small group of people in a corner of rural Canada.

We are Labrador's resources. We are the second largest contributor to the GDP of Newfoundland and Labrador, next to oil and gas, but we lag far behind the rest of the province and country in infrastructure. I ask you why. How could a land of such abundance be lacking in so many ways?

In the 21st century, Labrador is only now being connected by highway. While the northern portion is not yet built and the southern portion is bad, gravel-top road, the Canadian government today that governs this country has not seen its way to designate the Trans-Labrador Highway as part of our Trans-Canada Highway system. This in itself shows the real disregard for our people who live in a rural and northern society of our country.

We are one of the most industrialized regions, contributing millions in tax dollars to the country. We have the largest exports of iron ore of anywhere in North America, yet we do not have cellphone coverage in most of our communities. We do not have broadband or even Internet access. Companies say that this is an investment for governments, for there is no return for them as a private company to build the infrastructure in these northern areas.

The government opposite talks about a break on roaming fees, which is all good, but what about those who have no place to roam in the digital age? What about all of those communities in the rural and northern areas that cannot connect? As Canadians, if we cannot connect, we cannot be full players in the 21st century in this country.

Earlier in my speech, I talked about 5 Wing Goose Bay, the Canadian military base in Labrador whose assets and geographic position make it the primary location for search and rescue and training for the north, including the Arctic regions. This base, 5 Wing Goose Bay, is a valuable Canadian asset that, if mandated appropriately, could be one of the major response bases for training the military and our Canadian Rangers and for search and rescue operations. It could be the staging area to launch our jurisdictional claims to sovereignty in the Arctic. I am asking the government opposite to stop using this military base as election bait and start using it to create real opportunities for the Canadians in this country.

The government opposite has been clouding 5 Wing Goose Bay with false promises, promising the moon but delivering darkness. Show people real respect, I say to the government opposite. Follow through on commitments. Start investing and measuring up to the expectations that it has left with people. They are people who work hard on the ground in the country every day.

I will not relent on this issue because I know the potential is there. If only the naysayers within government would remove their blinders and see the real opportunity that comes with a gift such as 5 Wing Goose Bay.

I could go on extensively on many of these issues. As the House knows, I have spent my life in Labrador. I am the proud daughter of a fisherman and of a mother who crafts from seal skin in a very elegant way. I am the granddaughter of an Inuit woman, and I know the significance of being in a culture that is dependent on the land and the sea for survival. I represent people who are strong supporters of this country and who have contributed so much in building the country we know today. We are northerners. We are rural people. We deserve the same benefits in this country as all other people.

I will work hard to ensure that the economy of these regions is recognized by the government opposite and ensure that these people get the investments they so deserve.

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, I would like to congratulate my colleague for her speech. I am guessing this is her maiden speech in the House, so I congratulate her on that.

I wish her all the best of luck in convincing the rest of her Liberal colleagues and former Liberal senator Mac Harb on the value of the seal hunt. I wish her well with that. We are pretty solid on this side of the House insofar as supporting rural economies and ensuring we respect those traditions.

The member for Kings—Hants cannot contain himself, so I will ask a question for the member about the member for Kings—Hants, who might be a bit worried about his position as the finance critic, given the great comments from his party's candidate in Toronto Centre if she should ever get elected. This is Chrystia Freeland speaking in the presence of a leader of the Liberal Party, the member for Kings—Hants. Here is what she had to say on jobs:

It is increasingly the case that your job prospects are correlated not with how hard you work, not with how well you did at school, but with the job that your father had.

I find those comments a bit ironic and, frankly, moronic. I just wonder if the new member for the Liberal Party would agree with that sound economic policy from the Liberals' star candidate.

[Yvonne Jones, Liberal, Labrador, NL]

Mr. Speaker, first I am going to say that we take the equality of opportunity very seriously on this side of the House. My colleague, the member for Kings—Hants, has been one of the few people who have stood up in this Parliament on a regular basis talking about what is happening clearly with young Canadians and how they have borne the brunt of the recession that we have experienced in this country. He has talked about the youth unemployment rate. He has talked about the need to reach out and extend more resources to young people all across the country. He has done a marvellous job, and we commend him for that.

On the seal hunt, I want to say this, and I want to ensure it is noted on the record. My father went to the ice. My brothers still go to the ice to hunt seal. My mother has sewn sealskin until her fingers have been sore. To this day she makes a living from making this product. I cannot determine what the views of individual members of Parliament are in this House of Commons or in the Senate. I cannot determine how other Canadians will reflect upon this industry. However, I will tell members that it is a part of who I am, and it is a part I am proud to say I belong to. We continue to promote this industry, we continue to hunt, we continue to use the product and we do so in a very humane way. It is a part of who we are, and we make no apologies for that.

[Jack Harris, NDP, St. John's East, NL]

Mr. Speaker, I too would like to congratulate the member for Labrador on her speech. I have a history with the hon. member. In fact, she and I visited southern Labrador many years ago when we were both in the Newfoundland and Labrador legislature. She sat as an independent at that time, and I do not think I need to tell hon. members here today that she will be as feisty a member in this House as she was in the Newfoundland and Labrador legislature for 16 years. I congratulate her on her maiden speech, that being the conventional name for this, although it is probably a little inappropriate given the member's political experience.

I was in southern Labrador recently during a provincial byelection, and I can agree with the hon. member about the road conditions and about the lack of cellphone coverage. Never mind roaming fees or fees of any kind, residents of southern Labrador, and other parts of Labrador as well, just cannot communicate in a modern way, and I know these improvements have to be made and I know the member will continue to fight for them.

I want to talk about search and rescue in Goose Bay in particular. We all know about the tragedy of last year. Is the hon. member aware that the search and rescue mandate of the squadron in Goose Bay was in fact downgraded? Instead of having, as it had before, a secondary SAR responsibility, when the report came out after the tragedy of last year, the military spokesperson said it had no role in search and rescue other than any other military aircraft anywhere. Is the member aware that this downgrade has taken place? What is she prepared to do to help fight to restore that?

[Yvonne Jones, Liberal, Labrador, NL]

Mr. Speaker, my colleague is absolutely right. My first election in politics was as an independent member in the Newfoundland and Labrador legislature in 1996, and he was at that time the leader of the New Democratic Party in Newfoundland and Labrador, and we actually shared a wing of offices. We got to discuss many issues back in those days.

I am aware of what has been happening with regard to the search and rescue operations in Labrador. It is really unfortunate that it took the loss of life of a 14-year-old Inuit boy from the small town of Makkovik, for people to start looking at where search and rescue is in this country and how we have not been able to fulfill the expectation or even meet the basic safety requirements to ensure people that comfort in many parts of the country, especially in northern regions of the country.

When that happened, people in Labrador, in Newfoundland, all over the country and in this legislature asked the government opposite to do an inquiry into the death of Burton Winters to see what went wrong. Where did the protocols go wrong? Why was the response system of search and rescue not adequate to respond at that time? Where do we need to make improvements?

We never did get the inquiry. We never did get the investigation. Instead, a government minister, who is no longer in this legislature, flew into Labrador and made an announcement that a third helicopter would be added to provide those services in Labrador. We found out a few months later that at the base in Goose Bay there was no longer a requirement to respond to those search and rescue calls. What was the point of adding the helicopter?

If there is a supplementary question, I will explain the rest of the answer in more detail.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I ask if the member would continue on in her response. This is a supplementary question to her to finish her answer.