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.

Motions in Amendment

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

Mr. Speaker, I listened very carefully to the speech given by the member for Nanaimo—Alberni. He talked about many things in his speech, and he overlooked some other things.

One of the things that interests me the most in Bill C-4 is the issue of phasing out the tax credit for labour-sponsored venture capital funds, which, as we know, are extremely important in Quebec. There is about $10 billion in capital, and nearly 70% of that capital is invested in Quebec and outside Quebec.

This makes Quebec a leader in the area of venture capital, not only in Canada, but internationally. In terms of economic importance, Quebec ranks third among all OECD members. Furthermore, it invests nearly three times as much venture capital as the Canadian average, and more than four times the Ontario average.

At present, 160,000 jobs are supported by the capital provided by labour-sponsored funds. The phasing-out of this tax credit could kill about 20,000 of those jobs. The government claims to support economic growth and job creation, but this measure will be extremely harmful to Quebec.

What does the member think of that? I would like to hear his comments on the phasing-out of this tax credit.

Furthermore, why does the government insist on continuing in this direction, without any proof, when Canada really needs venture capital and private equity funds want to continue benefiting from the support of the Fonds de solidarité and Fondaction?

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

Mr. Speaker, it is a great pleasure to stand today on behalf of the residents of Nanaimo—Alberni and enter the debate on extremely important federal legislation.

Bill C-4 is an act to implement measures contained in budget 2013. It is the second such bill therefore we could refer to it as BIA 2, the budget implementation act 2. Budget 2013 continues our government's drive toward creating jobs and promoting economic growth in a highly competitive world. It also continues our steadfast drive toward returning to fiscal balance by 2015. Why this bill is relevant and how it is managed is extremely important to the lives of each and every Canadian.

First, let me remind those watching the debate that Canada was slammed by an economic tsunami in 2008, one that was not of our making, but one that crashed across our borders. It started south of our border with a subprime mortgage meltdown. As the credit crisis and housing defaults put financial institutes in peril, the U.S.A. and other nations backstopped the banks to prevent panic south of the border. They spent billions of public dollars in bailout money to institutions like Freddie Mac and Fannie Mae.

Businesses had trouble maintaining cash flow and major industries, like the auto sector, danced along the edge of insolvency. It quickly spread around the globe. Many nations were faced with huge financial commitments to stabilize their financial institutions and prevent wholesale collapse.

As the world economy spun, our government had to act fast to keep Canadians employed and provide incentives and retraining programs. Part of the economic action plan was targeted short-term spending on infrastructure, investments that would generate economic activity, keep people employed and improve the quality of life in communities across Canada.

Our plan worked. In fact, it worked so well that since the depths of the recession in July 2009, we have generated nearly a million new jobs, more than 80% of those in the private sector. We have been driving toward balanced budgets year by year with targeted measures to keep our economy moving forward. Canada has the best job creation record in the G7, the most stable banking sector and the lowest debt to GDP ratio.

Why is this important? It is important because debt is strangling economic opportunity and competitiveness in many nations. The commitment of this government and the Prime Minister is that we will bring Canada back to balanced budgets and we will do it without raising taxes and without slashing transfers to the provinces for services upon which Canadians depend.

I am pleased to report that we are on track to do exactly that. Our Minister of Finance recently reported that we would achieve this objective not only on time, but ahead of time. We will, barring world circumstances beyond our sight or control, achieve that objective and a healthy surplus by the fiscal year 2015.

Budget 2013 and Bill C-4 continue to drive toward balanced budgets. There are provisions that impact British Columbia in a significant way, such as $92 million for innovation in the forest sector. These funds will help our forest industry continue the transformation to compete in new global realities.

Budget 2013 includes measures to protect the iconic west coast Pacific salmon. In fact, the entire Pacific salmon stamp, collected from recreational fishers on the coast, is valued at just over $6. For years, $1 from that stamp used to go to the PSF, the Pacific Salmon Foundation. Now the entire value of that stamp, which would be a value of about $1.2 million, will go to the Pacific Salmon Foundation and into projects that restore salmon habitat. In partnership with local environmental groups, we have salmon enhancement societies and streamkeepers, which share great interest in bringing them back stream by stream, which is the model of the Pacific Salmon Foundation.

In addition, this budget brought in the recreational fisheries conservation partnership program. That is a further $10 million over two years to help activist groups, like the ones I mentioned, advance causes that help restore fisheries habitat, improve the riparian zones and remove obstacles that prevent fish from getting up to their spawning grounds.

This is like one project that was announced in my riding. A major highway culvert was eroded and it was restored so the fish could get past that obstacle and up to the spawning grounds. These projects, collectively, have a huge impact on helping our great iconic salmon resource on the west coast.

The funds dramatically increase the reach of our premier salmon habitat restoration institute on the coast. Doing so allows mother nature to do her thing. As we remove obstacles and improve the riparian zones and spawning grounds, it helps mother nature help the salmon do what they do best, which is to reproduce successfully and create opportunities commercially, for first nations through their food cultural ceremonial programs and recreational anglers. One of the reasons many people move to British Columbia and coastal B.C. is to take part in a tremendous fishing opportunity.

Since 2006, our economic action plan has cut taxes in over 150 different measures to make our economy more productive. As a result, the average Canadian family is saving about $3,200 each and every year in reduced federal taxes. That means more money to meet family needs and address priorities of their own choosing. On this side of the House, we think that is a good idea. It allows Canadians to manage their own money, invest in priorities that strengthen their families, help their children participate in activities that are meaningful to them and ensure the needs of their families are met.

Bill C-4 continues our drive to job creation and economic stimulus. I would like to refer to a few of these measures.

I will talk about renewing the hiring tax credit for small business and other measures, such as closing tax loopholes to ensure tax fairness. The one I mentioned earlier was the accelerated capital cost allowance in a question for the member opposite, a measure that would allow manufacturers to invest in equipment upgrades. There are other measures like extending the lifetime capital gains exemption to increase the rewards for investing in small business in Canada and closing tax loopholes to protect the inherent integrity and fairness of our tax system.

The number one priority of our government is creating jobs. The hiring tax credit recognizes the important role of small business in sustaining Canadian communities. Economic action plan 2013 proposes to extend and expand the temporary hiring credit for small businesses. The measure provides up to a $1,000 credit against an increase in EI premiums for businesses. Small businesses are the engines of job creation. This measure was first introduced in budget 2011. It helps defray the costs of taking on a new employee and permits local employers to take advantage of emerging economic opportunities. It is estimated some 560,000 small businesses could potentially benefit from this measure, saving them an estimated $225 million in federal taxes in 2013.

With regard to tax fairness, since 2006, including measures in the 2013 economic action plan, the government has introduced more than 75 measures to improve the integrity of our tax system. One example in budget 2013 is to close tax loopholes that permit certain individuals and/or institutions to avoid tax. Included are stiff penalties to curb a disturbing new trend, which is the electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion.

Specifically, the following administrative money penalties and criminal offences apply. For using electronic suppression of sales software, there is an administrative monetary penalty of $5,000 for the first infraction and up to $50,000 on subsequent infractions. For possession and acquisition, there are even higher penalties for the manufacture, development, sale and possession. There are also criminal offences for those involved in this type of tax avoidance. Those measures are broadly supported by business and job creators across Canada. If I had time, I would quote the Canadian Institute of Chartered Accountants, which issued a statement commenting on closing the tax loopholes and tax fairness measures in the budget. It concluded by saying that it supported efforts to maintain the integrity of our tax system.

The tax relief for new manufacturing and equipment is a very important measure, and there are many other measures in this budget that are important for advancing our economy and bringing us back to balanced budgets. I hope all the members opposite will join with us in passing these measures to keep Canada moving in the right direction.

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

Mr. Speaker, I listened to the member's speech with much interest, and I would like to acknowledge that he is our longest serving member of Parliament. I know he has the interest of his home province at heart.

However, the tone of the hon. member's speech was very negative. He pointed out a lot of complaints and faults in his speech, but I am wondering whether he would support the hiring tax credit for small business that is in Bill C-4 and that would be important for small businesses in the province of Quebec.

How about electronic applications for students, access to Canada student loans for the students in Quebec who access this program? It would speed that process up for them and help them to get loans to advance their education.

What about the accelerated capital cost allowance for manufacturers? The manufacturing sector is important in Quebec.

Does the hon. member support these measures that are in Bill C-4? With regard to our move to balance the budget, does he agree that it is an important ideal to move Canada towards balanced budgets?

[Louis Plamondon, Bloc, Bas-Richelieu—Nicolet—Bécancour, QC]

Mr. Speaker, today, we are talking about deleting provisions of Bill C-4 at report stage. The Conservative government wants to hastily pass this bill without conducting any real impact studies.

The Conservatives claim that this bill focuses exclusively on the economy, but that is far from true. Bill C-4 will affect a host of different areas. Some of the changes set out in the bill will mainly affect Quebec, its regions, its entrepreneurs and its businesses.

For example, Bill C-4 will eliminate the federal tax credit on labour-sponsored venture capital corporations, which are more commonly referred to as workers' funds. Over 80% of these funds are found in Quebec. The main ones are the Fonds de solidarité FTQ and the Fondaction CSN.

This will therefore have a direct impact on Quebec's economy and particularly that of its regions. These funds are quite prevalent in Quebec and they have helped to create and maintain tens of thousands of jobs, strengthen communities and breathe life into the economy where regular instruments, such as bank loans, were unable to play that role. It is therefore extremely important that the federal government reconsider this decision.

Another point of contention is that this mammoth bill affects the appointment of Supreme Court justices. Recently, a judge was appointed who was not on the list submitted by the Government of Quebec. What is more, he did not even meet the criteria set out in legislation. The Supreme Court has to include three justices from Quebec for a reason. Quebec's civil law is quite different from Canadian law, and the justices who sit on the highest court must be able to rely on sufficient expertise so that they can rule on complex civil law issues.

In addition, in the many existing legal cases between Ottawa and Quebec, it is only natural that Quebec should be able to rely on three justices who are attuned to the province's unique characteristics. Justice Nadon decided to step aside temporarily because his appointment is being challenged. The federal government decided to refer Justice Nadon's case to the Supreme Court. Now, the Supreme Court will be both judge and judged in this case. Not wanting to be defeated in this dispute, the federal government is trying to use Bill C-4 to amend the Supreme Court Act to make Justice Nadon's appointment legal, after the fact.

For the Bloc Québécois, the amendments in Bill C-4 pertaining to the amount of time the person nominated must have spent as a member of the Quebec bar are nothing less than an admission of the problems that tainted the appointment of Justice Nadon. His appointment, we should point out, was unfortunately endorsed by the Conservatives as well as the Liberals and the NDP, who included Justice Nadon on their list of top three candidates. Once again, the Bloc Québécois was the only party to oppose this appointment.

Instead of changing the legislation to try to save face, the federal government must acknowledge that it must choose Supreme Court justices who represent Quebec from the list submitted by the Quebec government, as has always been the case.

Another point of contention is that this bill will eliminate the Canada Employment Insurance Financing Board. It has become clear that the Conservatives, like the Liberals before them, have no problem using employment insurance for political purposes and taking the employment insurance fund surpluses.

The board was established to ensure that employment insurance premiums are used only for the employment insurance program. When we read this description, we can better understand why the Conservatives want to abolish a body that was opposed to their helping themselves to the surplus, as they are currently doing. This year alone, $2 billion will be taken from the employment insurance account. That is, of course, a hidden tax.

We also do not agree on the major changes to labour laws included in the bill.

During the recent labour disputes at Air Canada and CP, the Conservatives showed that they were allergic to any form of job action taken by employees. The mere possibility of a strike worries them so much that they have to pass special legislation to prevent them.

What is more, Air Canada is now very quietly transferring specialized, well-paid jobs to Toronto without the federal government lifting a finger to intervene.

What is truly shocking is that all the federalist parties in the House are just sitting back and letting Air Canada get away with skirting the law and transforming its offices in Montreal into post office boxes.

I keep bringing up this issue, because in the Air Canada privatization contract it was agreed that any jobs in maintenance and at headquarters would remain in Montreal. However, jobs are currently slipping away to Toronto and every member in the House of Commons is remaining silent, except for the Bloc members.

I am calling on all NDP, Conservative and Liberal members in Quebec. We should stand together to prevent the injustice that is the transfer of high-paying jobs to Ontario. Furthermore, this transfer is completely at odds with the contract Air Canada signed when it was privatized. I am making an appeal. I hope that all members from Quebec break their silence about this.

With Bill C-4, the Conservatives are now making major changes to the way in which services are deemed essential because they want to pre-empt any possibility of job action by employees.

From now on, the Conservatives are giving the employer the exclusive right to determine whether a service is essential and to set the number of positions needed to provide that service.

Previously, the essential services designation was agreed upon by the union and the employer. This provided for a level playing field. These are major changes because they affect the fundamental balance that must be in place between employers and employees.

Even worse is the fact that Bill C-4 politicizes the occupational health and safety process. Indeed, Bill C-4 gives the minister the power to issue directives to employers and to make certain decisions that were previously made by health and safety officers.

It goes even further by changing the concept of “danger” in the Canada Labour Code and, as a consequence, exposing employees to higher levels of risk.

As I just explained, the Bloc Québécois has proposed the removal of the clauses pertaining to labour-sponsored funds, employment insurance—including the Employment Insurance Commission—the Canada Labour Code and the Supreme Court.

These issues should be addressed in separate bills and not in an omnibus bill. That is why we proposed that these clauses be removed.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I was not sure if my hon. colleague had given the member for Parkdale—High Park a promotion or demotion by making her leader of the Green Party.

However, on this particular debate, the Green Party and the NDP are on the same page. We completely lament the fact that this is an omnibus bill once again, with multiple sections that were very much deserving of a full parliamentary review and full and proper hearings in committee.

I want to begin my analysis of Bill C-4 in presenting the various amendments I have made for deletions with two fairly brief points to the substance of the abuse of Parliament that omnibus budget bills represent.

We have heard it said by Conservative members in their talking points that this is nothing new. In every debate we have on budget omnibus bills, we are told this is normal. However, although I have only been a member of Parliament since 2011, I have been around a long time, and I know that we have never had budget omnibus bills of the staggering length of these bills until the current administration. It is only under the current Prime Minister that we have seen an omnibus budget bill top 200 pages.

Between 1994 and 2005, there were occasions of omnibus budget bills, and they were averaging 73 pages. The first big whopper of an omnibus budget bill occurred under the current Prime Minister in 2009. The 2010 budget omnibus bill was almost 900 pages.

Then, by 2012, the Conservatives started a new process. Ironically, my very first question in the House once I was elected was on the 2011 budget. I asked the Minister of Finance if he was planning the abuse of process constituted by an omnibus budget bill. He said he was not. Well, 2011 was indeed the last year in which we did not see omnibus budget bills. By 2012, the Conservative administration had started this new practice of putting forward two omnibus budget bills. It now refers to it as a tradition, almost like having Easter in the spring and Christmas in December. It is a tradition, apparently, that we are now going to see a 300- to 400-page spring omnibus budget bill, followed by 200-, 300-, or 400-page fall omnibus budget bill. The government has done this now for 2012 and 2013.

What this does is make a mockery of Parliament. I cannot put it more strongly than that. The idea that we would have disparate, unconnected bills, many of them never mentioned in the budget, that do substantial damage—this one in particular to labour relations, previous ones to environmental concerns—is an offence to Parliament. There is no excuse for it.

Second, I know there has been a lot of public interest in the fate of members of Parliament like myself and my party. I quite clearly represent a party with fewer than 12 MPs; I represent a party with one MP. However, I am a party in the House. So are my colleagues in the Bloc Québécois, and so are four independent members of Parliament. We were treated differently, since there were multiple motions carried through multiple committees to require that substantive amendments be submitted at committee, where we are not members and do not have equal and full rights of participation.

I will set that aside for now. That is why all of my amendments presented today are deletions. I did have substantive amendments I would have liked to present at report stage. I had 26 substantive amendments that I did present to the finance committee, and they went through a very quick ritual slaughter. I would have liked for the people of Canada to know about those amendments. I would have liked to have brought them forward at report stage.

Before I move to the specific parts of the bill that Canadians need to know about, I want to make an overarching comment.

As the only member of Parliament for the Green Party, one of the great advantages of having to watch everything while also doing due diligence on behalf of my constituents is that I am able to see everything in a comprehensive overview, not just in silos. There are themes here. There are disparate bills, but the manoeuvres are the same. The manoeuvres go in the direction of increasing ministerial discretion, reducing objective criteria, removing boards and agencies that have independent expertise, and putting bills forward instead to systems of political whim.

That certainly was the case in budget omnibus Bill C-38 and Bill C-45. They reduced criteria, letting the minister of environment or the minister of natural resources make decisions without guidance.

In this particular omnibus budget bill, we see it happening quite a lot again. I will mention just a few of the areas.

Under the Canada Labour Code changes, which my friend from the official opposition already referred to, the changes go in the direction of removing health and safety officers and leaving decisions about health and safety up to the minister.

The same kinds of changes have happened in immigration. In Bill C-4, we see substantial changes in part 3, division 16, to the expression of interest system, basically for immigrants who are coming by way of economic advantage. The decision-making would now increasingly be by ministerial discretion.

Another area where we see ministerial discretion replacing an objective system is in division 14, in which we would repeal the Mackenzie Gas Project Impacts Act and replace it with a very similar Mackenzie gas project impacts funds act. In this change the one big difference between the two acts would be to replace an objective corporation, a regional organization that would make decisions about where the funds go, entirely with ministerial discretion.

My friend and colleague from the NDP, the member for Western Arctic, had this to say about it, because he has a lot of expertise in this area. He said:

There was an independent body set up by the Conservative government through an act of Parliament to manage this money and ensure that it was managed in a correct and careful fashion, following the procedures that had been set up and the planning that had taken place in these communities over a period of two years, from 2006 to 2008.

Then I have another excerpt from his quote:

What we have now is a move to a system that would have a Conservative minister handing out cheques for particular projects as he or she deems appropriate.

Before diving into the specifics of Bill C-4, I wanted to raise into higher profile a consistent ideological theme: moving more and more decision-making in our system of government, which is a parliamentary democracy, away from Parliament, and at the same time moving decision-making of ministers into more and more discretion with less and less guidance.

Those of us who have practised law at any time know that administrative law provides a certain amount of accountability whereby a minister has to follow certain prescribed considerations or in fact delegates authority to expert boards. Less and less will we see this. More and more will we see ministerial discretion. As well, we know that ministers do not really exercise discretion, not in this administration. They do what they are told by the people at PMO, who I think one Conservative described brilliantly as a series of Stepford wives who insist on certain decisions being made a certain way.

To raise my concerns in brief, this bill would do serious damage to the health and safety provisions of the Canada Labour Code. It would change the definition of danger and the ability to refuse dangerous work. It would remove the health and safety officers.

As well, a different section of this bill would change the Public Service Labour Relations Act, again for more ministerial discretion about which aspects of public service work would be considered to be essential and therefore not open to the usual recourse that trade unions have in negotiations.

We see changes to the Immigration Act to increase ministerial discretion. I would like to cite concerns from the Canadian Bar Association on the immigration law section. They wrote to the committee:

The CBA Section has concerns about the limited consultation on this important change to Canadian immigration law and policy. Bill C-4 would substantially change the way in which economic immigrants are selected to come to Canada. The Bill would remove these changes from Parliamentary scrutiny and approval and give what appears to be unilateral authority to the Minister of Citizenship and Immigration to change selection rules and procedures.

Another section of the bill that has gotten very limited public attention is the section that appears in part 3, division 7, which is in aid of getting rid of our deficit by selling off assets. This is the sale of 20,000 hectares described as the Dominion Coal Blocks land.

My amendments at committee, had they been approved, would have provided some conservation protection. These lands are among the most ecologically significant in Canada. They are the blocks in the Flathead Valley and Elk Valley. They are an integral part of what is called the Crown of the Continent, right near the Waterton-Glacier International Peace Park, which is an international peace park on both sides of the border.

The Flathead has been protected by the strange reality of its ownership by the federal government over these years, but it is now to be sold for coal mining. We need to ensure that careful concern is applied to the conveyance of these lands and to ensure that we do not contaminate adjacent park areas. This is a concern already expressed by the United Nations.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, let me thank my colleague from Rimouski-Neigette—Témiscouata—Les Basques for seconding all of these changes.

Let us let Canadians know what all these amendments are in aid of. We are now debating Bill C-4, a second act to implement certain provisions of the budget, except that we are dealing with another attempt by the Conservatives to pull the wool over the eyes of Canadians. We want to slow the process down so that Canadians are not blindsided again with this omnibus legislation.

This is the fourth omnibus budget bill the government has brought in. Bill C-4 amends over 70 different pieces of legislation in over 300 pages. It follows on the heels of previous omnibus budget Bills C-38, C-45, and C-60. The bill contains entirely new laws: the Mackenzie gas project impacts fund act and the public service labour relations and employment board act. There are brand new acts within the bill.

Like its predecessor omnibus budget bills, this bill contains a wide variety of measures, many of which are not even in the budget and do not have any relationship to the budget. They are changes such as gutting health and safety protections for federal jurisdiction workers; cuts to reductions at the Veterans Review and Appeal Board; repealing the Canada Employment Insurance Financing Board; and changes to how we select Supreme Court judges.

These are not budget items, yet they are crammed into an omnibus bill, within a very short timeframe, to evade the scrutiny of Parliament. Canadians will not really have a full appreciation of the changes being made. It negates the opportunity of parliamentarians to hear a full range of witnesses, to engage in thorough examination, discussion, and debate about a bill, and to then propose reasoned amendments for improvements that would help make these laws better.

As we have seen in the past, because of the short timeframe, bills have been rushed through Parliament and passed, and then the government has had to go back and correct them after the fact because of mistakes it had made.

With this bill, as with all the other omnibus bills, Conservatives accepted not one amendment. They would not change even one comma. No one else has any good ideas. They would change nothing. In our discussions at committee, there were several amendments proposed. The NDP proposed 24. Other opposition parties proposed amendments. Not one change was accepted, as in the previous omnibus budget bills.

There was a time limit imposed on our study at committee. We had only two days of witnesses, including an hour with the minister, and there was a deadline of midnight. Everything we had not voted on in the bill was deemed passed, and if it was an amendment, it was deemed rejected. That certainly did not allow us much latitude for making changes or even for trying to slow down the parliamentary process and review.

Canadians are offended by this. We have heard from many Canadians who are getting the message about the lack of democracy in these omnibus budget bills. However, we also heard expert testimony.

The Canadian Bar Association testified at our committee during the two days of study. It said that “eschewing consultation and employing omnibus bills diminish the quality of our laws and the democratic process. We urge you to reconsider these practices”.

We completely agree.

We heard a variety of witnesses oppose the process of omnibus budget bills. The Canadian Taxpayers Federation agreed with us that this is a bad way to bring in legislation.

What it does is attach unpopular measures to popular measures and does not allow the separation of issues so that there can be good and thorough debate. It prevents separate votes on issues by lumping them all together. Obviously, it is less transparent and fundamentally less democratic. We believe that this evasion of parliamentary scrutiny is not worthy of the House.

Let me deal with the notion that this bill is in any way aiding the priorities of Canadians in terms of creating jobs and a stronger economy. In this bill, the Conservatives have failed to put forward significant job creation measures at a time when we are seeing stagnating incomes, stagnating wages, insecurity in the workplace, job insecurity, and all-time high household debt. This is at a time when we have a current account trade deficit of over $60 billion, which is a record for our country.

We believe that what the Conservative government ought to do is deal with the real challenges the economy is facing. Let me quote a couple of sources. The Conservatives may feel that they know better, but let us hear what the International Monetary Fund had to say:

...the IMF no longer views Canada as the growth engine of the G7 economies. While bettering the European members, Canadian growth is projected to play second fiddle to the U.S. in 2012, 2013 and 2014. Growth in “other advanced countries” not in the G7 club, such as the Scandinavian nations and Australia and New Zealand, are also projected to outperform Canada. Going forward, it predicts the Canadian economy will continue to be held back by high household debt levels and a cooling housing market.

That is the International Monetary Fund.

Business columnist David Olive wrote:

We know from the recent American and British experience with austerity chic that you cannot cut your way to prosperity. Indeed, sucking demand, or cash, out of an economy with cutbacks to government spending—including essential services and infrastructure upgrading—merely adds to the jobless lines and cuts household incomes. That, in turn, drives up social-spending costs related to mounting unemployment.

Clearly, the Conservative government is failing on the economy.

Let us hear from Paul Wells, from Maclean's, in his recent article, “Stephen Harper and the knowledge economy: perfect strangers”. He wrote:

...by the broadest measure of expenditure on research and development, Canada has fallen from 16th out of 41 comparable countries [since] the year Stephen Harper became prime minister...

The Conservative government is failing on so many counts to do the job on the economy, yet it has an omnibus budget bill that would cram in over 60 amendments to the Canada Labour Code. Anyone working anywhere in the federal jurisdiction, not just for the federal government but perhaps in the transportation sector, banking, telecommunications, interprovincial trucking, rail, ships, trains, or airlines, would be affected by this.

It would strip the powers of health and safety inspectors. They could inspect a workplace with a phone call. However, it would not be a qualified inspector; it would just be someone the minister appointed, who would not even have to be qualified.

There are so many regressive changes in this bill that attack the basic rights of people in the workplace. It is a colossal step backward. All Canadian workers should be very concerned about this legislation. It is a colossal step backward for Canadians.

New Democrats will not support the Conservatives' attempt to evade scrutiny by Parliament and Canadians. We oppose this budget and its implementation bills, unless it is revised to reflect the real priorities of Canadian families: creating quality, well-paid jobs; ensuring retirement security; fostering opportunities for young people; and making life for families more affordable.

I see that my time is up. I thank the House for the opportunity, and I welcome questions from my parliamentary colleagues.

Speaker's Ruling

[The Deputy Speaker, NDP, Joe Comartin]

There are 284 motions in amendment standing on the notice paper for the report stage of Bill C-4.

Motions Nos. 1 to 284 will be grouped for debate and voted upon according to the voting pattern available at the table.

I will now put Motions Nos. 1 to 284 to the House.

(The House resumed at 12 noon)

The House proceeded to the consideration of Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, as reported (without amendment) from the committee.

Business of the House

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

Mr. Speaker, I appreciate the comments from the opposition House leader with regard to the difficulties and uncertainty of scheduling when we are not using the scheduling devices that are available to us under the Standing Orders. I am certain that he will find that he is able to cope with that, but perhaps I will take his advice and his concern about the lack of proper scheduling here under consideration and see if there is an opportunity to please him by once again returning to it.

Before I turn to the business of the House for the week ahead, let me congratulate those who won Monday's by-elections and will soon be joining us as members. Once returning officers have done their part of the job, which gives them the title upon the return of the writs of election, and after the new MPs have taken the oath, we will have their introductions here in this chamber, which will be a very special memory for them and for all of us.

Since this will probably be the last opportunity to use their names in the House, I will say that we on the Conservative benches are especially looking forward to welcoming Ted Falk and Larry Maguire. Larry proved to be an outstanding campaigner when it really counted. He overcame what expert pollsters said was a 29-point deficit in just 24 hours to win Brandon—Souris. This abrupt collapse of Liberal support must be troubling to the Liberal leader.

This afternoon, we will return to the second reading debate on Bill C-13, the Protecting Canadians from Online Crime Act, and, again, tomorrow. If we have extra time, we will take up Bill C-12, the Drug-free Prisons Act, at second reading.

Bill C-13 will, as we heard from the Attorney General yesterday, ensure children are better protected against bullying, including cyberbullying, by making the distribution of intimate images without the consent of the person depicted a criminal offence.

Following on this morning’s report from the chair of the hard-working, productive and orderly Standing Committee on Finance, we will consider Bill C-4, the Economic Action Plan 2013 Act, No. 2, at report stage, and hopefully third reading, on Monday and Tuesday.

This bill would provide support for job creators, for example, by extending and expanding the hiring credit for small businesses; and it would also close tax loopholes, combat tax evasion and respect taxpayer dollars. Overall, it is an important part of our government's ongoing agenda to place, as our top priorities, economic growth, job creation and long-term prosperity; indeed, they are priorities for most Canadians. I also will set aside Friday of next week for this important economic bill, if we need a third day to pass it.

Next Wednesday and Thursday, we will debate a bill to implement the devolution agreement reached with the Northwest Territories, for which the House adopted a ways and means motion this morning. If we can pass that bill at second reading before the end of Thursday, we would then return to the debates on Bill C-11, the priority hiring for injured veterans act, and Bill C-3, the safeguarding Canada's seas and skies act.

To help with the committees' forward planning, Monday, December 9, shall be the fifth and final allotted day of the autumn.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, it has been remarkable that we have gone almost two weeks without a time allocation motion coming from the government. Should I not mention that? I do have some caution in this celebration. It is some small progress made by the government that it has not brought in the guillotine on debate, has not shut down Parliament for almost 14 days.

I should probably stop myself here, because Bill C-4 on the budget returned from committee this morning, so something tells me that I will not be able to congratulate them for making it three weeks.

How much debate is the government House leader going to allow on third reading and report stage before he cuts off debate, and when can the opposition expect to have the final supply day designation?

It is worth mentioning that Bill C-4 could touch on many important things for the visiting dignitaries from the Federation of Canadian Municipalities, who are here all of this week lobbying the government to actually do something about affordable housing. Here is an opportunity in a bill such as Bill C-4 for the government to finally act and create those affordable housing units for Canadians.

We have met with the mayor of Nelson and committee members from Vancouver and across Canada. They have told us time and time again that the government has not shown up to this particular debate and that it is not helping the Canadians who need that help.

When will we see the bill? When will we see the final opposition day?

Hopefully we can make it all the way to the holiday season, celebrating the fact that the government has been unable and unwilling, finally, to shut down debate in Canada's Parliament. What a truly great gift that would be for all Canadians.

Finance

[James Rajotte, Conservative, Edmonton—Leduc, AB]

Mr. Speaker, I have the honour to present, in both official languages, the first report of the Standing Committee on Finance concerning Bill C-4, A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures.

The committee has studied the bill and has decided to report the bill back to the House without amendment.

[Françoise Boivin, NDP, Gatineau, QC]

Thank you, Mr. Chair.

I would first like to give notice of a motion, in light of what happened last week when, after the minister's presentation about the Supreme Court, we ended up sitting in camera to talk about the recommendations dealing with our part of Bill C-4. The notice of motion, which will be subsequently debated, reads as follows:

That the Committee may meet in camera only for the purpose of discussing: a. wages, salaries and other employee benefits; b. contracts and contract negotiations; c. labour relations and personnel matters; d. a draft report; e. briefings concerning national security; and That all votes taken in camera be recorded in the Minutes of Proceedings, including how each member voted when recorded votes are requested.

I will now turn to the minister.

When you read the article in The Globe and Mail this morning, you must have been happy to see that the Privacy Commissioner seemed to support Bill C-13. Clearly, it is not enough to read the title only. At any rate, this is what she said in the article:

She said the latest version appears to be an improvement and she doesn’t fault the government for linking lawful access and cyberbullying.

I would like to say that no one is blaming the government for linking the two. Mr. Minister, the issue that was raised yesterday is that one of the parts brings parliamentarians together whereas the other part has not yet been seriously studied in committee. That is why I am telling you once again that it is important to spend the required time on studying that part. The term “lawful access“ used in this article has to do with the tools that police officers have.

Also, you must not put words in the mouth of the Privacy Commissioner. In fact, she is right in saying that a more in-depth study might reveal something else. You are not going to claim this morning that she gave you carte blanche to do whatever you want.

That said, I am very interested in the victims bill of rights, an issue you have been talking about for a long time. The same goes for your predecessors, the Prime Minister and almost everyone in the Conservative cabinet. You talked about it earlier.

Making big media announcements on some issues is one of your government’s strengths. Sometimes, I would prefer it if you gave that money to the victims.

Has your department already started to think about the funds you are going to spend on advertising? Are you going to come back and ask us for additional funding for your department to promote your victims bill of rights all over the place? By the way, I really look forward to reading it.

[Scott Brison, Liberal, Kings—Hants, NS]

I want to thank Ms. Nash for her intervention, which also sums up, I think, the way we feel on this.

Of all the provisions in Bill C-4, those that really are most farcical are the amendments to the Supreme Court Act and the process for nomination of Supreme Court judges. I can tell you that at some point in this place, members of Parliament of all parties will be, I believe, compelled to consider the importance of committees, the independence of committees, and the appropriateness of legislation considered by committees. It's a question not only of independence of committees but also of respect for Parliament and respect for the committee process and resources.

At some point, perhaps not in this Parliament but maybe in the next, I think as parliamentarians we're going to have to have a discussion about how we can both strengthen the resources and independence of committees and truly engage them. If you go back to the Mulroney government when Don Blenkarn was chairman of finance committee, that committee regularly attained unanimous reports of the committee. It took on the government of the day and it disagreed with the government.

We ought to see committees actually taking on government policy and approaches at some point. This is serious stuff. We have a responsibility whether we're in government or in opposition as individual members of Parliament to hold government to account. We're not doing that. In the recent byelections when we campaigned, we heard people's concerns about this. It's easy to assume that the public doesn't care and to play to that apathy or to assume that apathy, but I actually believe that in the four byelections it's one of the reasons we saw support for our party go up 17% and support for the Conservatives drop 11%. I don't know why the NDP support dropped. That's another issue.

The point is that at some point maybe we should have informal discussions among us across party lines about how we can strengthen our roles as parliamentarians and strengthen the roles of committee. We should look at what is done in other parliaments and even at the U.K. model where committees are much more independent. Otherwise at some point we're going to look back at our time here. We don't want to look back with regret because we did not take seriously the institution to which we were elected and the institution for which we have a responsibility. I think this is really very serious and at some point not doing more as individual members of Parliament to fight this becomes untenable. It's just fundamentally wrong.

As a committee we do not have the expertise or resources to be dealing with a lot of these issues. It's not a joke. This is very serious. I'm not feigning concern about this. I am genuinely concerned not just as a parliamentarian but as a citizen about what's going on here. I implore members of the governing party to understand that this is a grave situation which they are complicit in and contributing to.

It's going to be awfully hard to explain to active, engaged citizens what we're doing here.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Chair, it ought to be clear why we've proposed this amendment. It's because the government bungled the Supreme Court appointment, which some journalists have called a spectacular mess.

We're not blaming the nominee, Justice Marc Nadon, for anything. The blame lies squarely with the justice minister and the Prime Minister, for going ahead with an appointment when there was clearly risk of litigation, and there was a question of whether Justice Nadon met the specific rules regarding who can assume a seat on the Supreme Court from Quebec.

The justice minister himself hinted the statute needed to be changed over the summer, and in the fall he released a legal opinion that the government had sought to defend the choice of nominee. The problem is that an opinion, even from a great jurist, does not make one immune from a lawsuit. The minister took the risk of making the appointment. The lawsuit challenging the government's interpretation of the law was filed, and since then the court has been sitting with eight justices and Quebec is under-represented in the nation's highest court.

Through the back door, and with Bill C-4, the government is attempting to retroactively rewrite its appointment law, while at the same time it's asking the court to interpret the law by means of a reference. The problem is that it's not even rewriting its own appointment law well, and that's where this amendment comes in. The government's rewrite is to say that the members of a bar with 10 years of standing at a bar at any time are eligible for nomination to the court. Our amendment would make it that they would have to be in good standing, and that the 10 years would have to be consecutive.

At committee we heard from Professor Adam Dodek of the University of Ottawa. He and others were asked if these changes were good ideas, and they agreed that we should want bar members in good standing only to be eligible, and it would make sense that their 10 years of membership in any bar be consecutive.

Frankly, we're trying to be constructive and help the government to deal with this issue. It's awkward, because it ought not to be before this committee and we are trying to be constructive. My colleagues, Sean Casey and Irwin Cotler, a former minister of justice during better times, have been extremely helpful and constructive on this, and it is in the interest of good government that we are proposing it.

[The Chair, Conservative, James Rajotte]

That is some wonderful foreshadowing on your part, Monsieur Plamondon, because the ruling of the chair is dealing with both BQ-4 and BQ-5, as both of these amendments deal with the deletion of clauses.

BQ-4 states:That Bill C-4 be amended by deleting clause 471.

BQ-5 states:That Bill C-4 be amended by deleting clause 472.

Because they are deletion of clauses at committee stage, the chair is going to rule both of these amendments as inadmissible.

Therefore, we shall move to amendment L-8.

Mr. Brison, please.