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

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, I will make good use of whatever amount of time I have left, as the last speaker.

I am pleased to be on my feet again to address it. Many of our colleagues have spoken at length to various issues of a bill on which it is most unfortunate that again we have had to see closure; especially on things like the omnibus bills being passed, which are actually massive in volume. No matter how much work all of us do in this House, we can never get through it enough to find all of the bits and pieces in this omnibus bill that are nothing short of a bunch of poison pills that are going to have huge effects on the Canadian economy and on the Canadian people. However, the Conservatives have their majority and they are going to do with this what they do with everything else, which is to implement time allocation and drive it through in order to achieve their agenda and do what they want.

I am using my valuable time to speak to this issue, on the things I think are important to Canadians and things we should be talking about more. Issues like jobs, infrastructure, household debt, youth unemployment and government waste are too important to simply be lumped in with many non-budgetary measures such as court reform, which the government is hiding within the budget. They put things like court reform and other things that have nothing to do with a budget bill into an omnibus bill. They bury them in there with the hopes that nobody in the opposition will be able to find them because they are overwhelmed with the bill from the beginning anyway and do not have enough time. Normally we would have had several months here, and we are lucky if we have several days.

Let us talk about jobs first, and quality jobs, which are at the heart of any healthy and growing economy. Without adequate employment, Canadians cannot enjoy dignity and quality living, no matter what the GDP says. On this front, of course the government has clearly failed.

Too often, the Prime Minister has droned on about the GDP without giving consideration to the impact around the kitchen tables of the nation. He says the economy is growing, but the reality is that more and more Canadians are falling farther and farther behind. Instead, the Conservatives are repackaging existing programs, taking more money out of the economy and calling it an economic action plan. This budget clearly has no plan to help the middle class, and that is its first great failing.

In budget 2013, the Conservatives prioritize spending cuts ahead of strengthening the economy and creating Canadian jobs. Their latest round of spending cuts is going to hurt Canada's already-weakened economy. The EI premium hike in budget 2013 would again cost more jobs. Canada's job market has not recovered from the recession, no matter what this Prime Minister and the government say. It is even more difficult for young Canadians to find a job, with an employment rate that is five points worse than it was before the recession. So we risk creating a lost generation of youth, unable to move out of their parents' home, scarred with high debt and with no meaningful job experience. I guess that would make the government's failure to address youth unemployment the second greatest failing of this budget. However, it is a failing of which the full impact will not be understood fully for years, and that is an important point.

The current government has developed a habit of kicking a can down the road on key issues. Government is about leadership and making real decisions. Passing the bill to our children for our generations of mismanagement is unethical, short-sighted and just plain wrong.

Budget 2013 announcements on infrastructure, training and manufacturing are not enough to kickstart the economy. These are not new programs. The Conservatives are just using budget 2013 to rebrand programs that already exist. Again, the Conservatives are just kicking the can down the road.

Worse than all of this, the budget would fail to do anything to shore up the very foundation of the economy, middle-class workers. Canadian workers are the true fuel of the economy, and they have been ignored by the current government. Instead, the Minister of Finance has developed a habit of calling the banks and demanding that they increase mortgage prices. This may look great on paper, but it will only make it harder for middle-class families to make ends meet. Canadian housing prices are overvalued, and prices are now starting to drop. The minister is to blame with his risky mortgage scheme in budget 2006 that brought U.S.-style 40-year mortgages with zero down payment to Canada, and helped create the current housing bubble. Then the Conservatives had to change it, so now the only real growth in Canada's economy is the growth in household debt. Personal debt levels in Canada are now worse than they were in the U.S. before the U.S. housing crush.

Canadians are not wasteful mismanagers. They are not putting new TVs and fancy cars on their credit cards. They are putting food and rent on their credit cards.

The responsibility for this climate rests on the shoulders of the Conservatives. This budget's failure is not isolated to the country's workers. They have also turned their backs on seniors. Despite their billion-dollar ad campaign to the contrary, Conservatives have no plan for middle class prosperity. Instead, they repeatedly punish the middle class. Conservatives taxed income trusts, wiping out billions in retirement savings, after saying they would never touch them. They made old age security harder to get by moving it up to age 67. The Conservatives PRPP scheme is a joke. It is nothing better than just something for the banks and insurance companies. Seventy per cent of Canadians have no pension, yet Conservative incompetence is making it much harder to retire with dignity. I cannot help but wonder why the Prime Minister wants poverty to be part of middle class retirement.

The government's answer to this problem has always been trade. It has failed to note that more trade has not always been better for Canadian industry. Canadian farmers know this better than anyone. For the past 50 years, farmers have been increasing their production levels each year, only to watch their incomes fall well into negative margins.

I support trade, and so does my party. However, trade has to be on an equal and profitable footing. Trade success is more than a simple scorecard. It has to include real gains for Canadian industry and workers. Instead, the government talks big, but unlike certain goods in places like the U.S., talk is cheap. For example, the suggested Canadian retail price for an Acura, a car made in Alliston, Ontario, is $54,990, yet our U.S. friends can buy the same car for just $46,120. That is a $9,000 price differential, a price paid by Canadian families. It goes right back into the manufacturer's hands. The differential applies to every car from the Matrix to the Impala. In short, everyone has their hand in consumers' pockets and despite the government's promise to get serious about price parity, it continues to do nothing on those big issues.

Empty words will not close this gap, nor will they help middle-class families raise their families. The government has spent well over half a billion dollars on advertising, trying to buy Canadian voters with their own tax dollars. Most recently, it has spent more than $8 million to tell Canadians in rural Canada that they should not be happy with their cellphone service. Effectively, to score cheap political points, the government is using tax dollars to run ads against Canadian businesses. It calls this action on behalf of consumers.

As bad as this is, incompetent military procurement, like the $40 billion runaway F-35 costs, are draining government resources at a time when Canadians need them the most. This kind of waste is taking money from workers, students and middle class families, plain and simple.

I could go on with example after example of just how the government has failed Canadians, but time simply does not permit a full reading of the list. In short, this budget takes drastically reduced economic growth forecasts and magically turns them into increased revenue projections. The government is projecting a balanced budget by 2015, with an $800 million surplus, yet short of a math error, has no real explanation of how to attain that goal.

Mr. Speaker, thank you very much for the opportunity to conclude this debate. With great sadness, we will rise tonight and vote against Bill C-4.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, I thank my colleague for her fine comments and especially for pointing out the many good things that are in this Bill C-4 that we are talking about. I am not going to repeat them. They are almost too numerous to allow following up on all of them. However, I thank her for recognizing that.

Again, in the House we do not always get everything that we want, but she and every other member here, on all sides of the House, have a chance to debate what is in this bill. At the end of the day, with all of those good things that she herself mentioned, I look forward to her supporting the bill

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, I am very pleased to have this opportunity today to speak to Bill C-4. This is a very important piece of economic legislation that will benefit Canadians right across the country.

As many members know, since we introduced our economic action plan, Canada has recovered more than all of the output and all of the jobs lost during the recession. Employment has increased by over one million since July 2009, the strongest job growth among the G7 countries over the recovery. About 90% of all jobs created since July 2009 have been full-time positions, nearly 85% are in the private sector, and more than two-thirds are in high-wage industries. Real GDP is significantly above pre-recession levels, the best performance in the G7.

Canada has weathered the economic storm well, and the world has noticed. For example, both the IMF and the OECD expect Canada to be among the strongest growing economies in the G7 over this year and the next. This economic resilience also reflects the actions our government took before the global crisis, lowering taxes, paying down debt, reducing red tape and promoting free trade and innovation.

Of course Canada cannot rest on this record of success. Despite solid job creation since July 2009, many Canadians remain unemployed. Much of our vast potential remains unfulfilled. That is why economic action plan 2013 focuses on the drivers of growth and job creation, such as innovation, investment, skills training and communities, underpinned by our ongoing commitment to keeping taxes low and returning to balanced budgets by 2015.

Let me now provide a few details on some of the proposed measures in Bill C-4 and how they fit into the government's agenda. First, the bill proposes to increase and index the lifetime capital gains exemption, LCG, to help support small business owners, farmers and fishermen. By doing this our government is helping to increase the rewards of investing in small business and to make it easier for owners to transfer their businesses to the next generation of Canadians.

Specifically, Bill C-4 proposes to increase the LCG by $50,000 so that it will apply on up to $800,000 of capital gains realized by an individual on qualifying property, effective for the 2014 taxation year. In addition, to ensure that the real value of the LCG is not eroded over time, the bill proposes to index the $800,000 LCG limit to inflation for the first time ever. The first indexation adjustment will occur for the 2015 taxation year.

Just one example of where this is a big benefit is a land transfer from generation to generation in agriculture. Anyone in a rural riding knows that one of the obstacles young farmers have faced is being able to afford land. At the same time, their parents or grandparents, or whoever, owns that property, but they cannot just hand it over. At one time, property could be handed down from generation to generation. It is just not affordable or easy to do that today. This is a big benefit.

By providing this tax exemption on capital gains, our government is increasing the potential rewards of investing in small business, farming and fishing, and helping these entrepreneurs better ensure their financial security for retirement. Indeed, the Canadian Federation of Agriculture noted the positive impact this will have on small business owners and farmers, saying that they were:

...pleased to see the increase of $50,000 to the Lifetime Capital Gains Exemption—an important tool for helping farmers manage the tax burden associated with the transfer of farm assets. ...the resulting positive change is that it will be indexed with inflation, allowing the exemption to keep up with increasing real costs.

That was from a March 21, 2013, press release.

The second proposal I want to highlight in the bill is the extension and expansion of the temporary hiring credit for small business for 2013. In recognition of the challenges faced by small businesses across the country, budget 2011 announced a temporary hiring credit for small business of up to $1,000 per employer.

This credit provided support to small businesses by helping defray the cost of hiring new workers so that they could better take advantage of emerging economic opportunities. Indeed, the hiring credit was so successful that it was extended for one year in 2012.

While the Canadian economy is improving, the global economy remains fragile. In order to support job creation, today's legislation would amend the Employment Insurance Act to expand the hiring credit for small businesses and extend it to 2013.

As a result, an employer whose employment insurance premiums were $15,000 or less in 2012, an amount increased from the $10,000 used in the 2011 and 2012 hiring credit for small businesses, would be refunded the increase in its 2013 premiums over those paid in 2012 to a maximum of $1,000. It is estimated that 560,000 small businesses would benefit from this measure, saving them $225 million in 2013.

The hiring credit is so popular and effective that small business owners were asking for its extension. Our government listened, and as soon as the budget was introduced, small business owners were happy.

According to Dan Kelly, the president of the Canadian Federation of Independent Business:

Overall, this is a good budget for small business. Minister Flaherty has done a solid job by remaining on course to eliminate the deficit while announcing some important measures for Canada's entrepreneurs.

He added:

We're particularly pleased the government publicly acknowledged taking some of these measures—such as the expansion of the EI hiring credit—at the recommendation of CFIB's 109,000 members.

Another measure in Bill C-4 that I would like to highlight is the phasing out of the tax credit for federal labour-sponsored venture capital corporations, or LSVCCs.

This tax credit was introduced in the 1980s when access to venture capital for small and medium-sized businesses was limited. However, the economic environment and the structure of the venture capital market have changed significantly since that time.

Independent experts who have studied the federal labour-sponsored venture capital corporations program have concluded that this tax credit is an ineffective means of stimulating a healthy venture capital sector and represents a poor use of government resources. Even the Organisation for Economic Co-operation and Development, the OECD, has recommended that the tax credit be eliminated in order to enhance innovation outcomes in Canada, and the OECD is not alone. Here is what respected economist Jack Mintz had to say in a National Post article on March 15, 2012:

These credits have not only been ineffective in generating more venture capital, but they have also helped finance poor projects that should have never been funded in the first place.

Our government understands that Canada's long-term economic competitiveness in the emerging knowledge economy needs to be driven by globally competitive high-growth businesses that innovate and create high-quality jobs. This is why the phase-out of the LSVCC tax credit aligns with the increase in venture capital investments resulting from the implementation of our government's venture capital action plan.

Indeed, as part of this plan, economic action plan 2013 announced $60 million over five years to help outstanding and high-potential incubator and accelerator organizations expand their services to worthy entrepreneurs. These organizations bring entrepreneurs together and provide them with hands-on mentorship by successful innovators and access to specialized business services to develop their ideas and grow their businesses and the jobs of tomorrow.

This is only the most recent step in our venture capital action plan, a $400 million strategy to increase private sector venture capital investments in Canada.

I wish I could continue to speak about the many positive measures in Bill C-4, but unfortunately I am running out of time.

In closing, I would like to emphasize that Canadians have every reason to be confident. Our government is doing what it is necessary to bolster growth by maintaining a sound fiscal position. By achieving a return to balanced budgets in 2015, we will help keep taxes low, encourage investment, and ensure sustainable social programs for future generations. This is what Bill C-4 is all about.

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

Mr. Speaker, over eight months ago, I rose in the House to talk about the Conservatives' 2013-14 budget. I shared my concerns about the issues close to my heart, such as housing and homelessness, not only in my capacity as official opposition housing critic, but also as a champion of social justice.

Today I want to talk about those who have been forgotten by this government and I also want to point out some of the injustices created by Bill C-4, the budget implementation bill.

It is no secret that housing and homelessness in Canada are not—and unfortunately probably never will be—priorities for this government. However, at some point the Conservatives will have to open their eyes.

The $1.7-billion budget for social housing administered by the Canada Mortgage and Housing Corporation is dwindling every year, as long-term operating agreements with social housing providers come to an end. Unfortunately, the government is presenting this as savings, but at the expense of whom?

I have criticized this situation many times in this House. After the throne speech, I rose three times to ask a question of a member opposite who had just read out the government's talking points. You could have heard a pin drop in the House. He had no idea how to answer.

I understand that he cannot know every single detail about everything the government does. However, we are talking about $1.7 billion and thousands of people who could end up on the street once these agreements expire. I think that is enough to sound the alarm on the other side and for them to care a little about what is going on.

If we listened to the ministers and backbenchers—and even the ministers opposite sometimes—without really thinking about it we could perhaps believe that this “government has invested more than any government in Canadian history” in any area. I will repeat this, because it needs to sink in on other side of the House: the last time a government invested new money in social housing, it was Jack Layton who worked hard to get it out of Paul Martin's Liberals, and the Conservatives voted against that money.

Members of the House will have an opportunity to ponder the housing situation in Canada when they debate my motion M-450, which I tabled in the House last June. It asks the government, in accordance with Canada’s obligations under the International Covenant on Economic, Social and Cultural Rights and the Universal Declaration of Human Rights, to work with the provinces, territories, municipalities and community partners to maintain and expand the federal investment in social housing, which would include renewal of the federal long-term social housing operating agreements in order to continue rent subsidies and provide the necessary funding for residential building renovation.

I would like to reassure my colleagues opposite. They will certainly have all the information needed to understand how important this matter is. In the meantime, they can always go to my website, where they will find all the information they need in order finally to grasp the subject, and where they can also sign my petition. There is social housing across the country, from coast to coast, including their own constituencies.

Whatever form the renewal of these agreements takes, whether by maintaining at least the status quo or by negotiating a transfer to the provinces and territories, what is certain is that this amount of $1.7 billion must be preserved for social housing, period, paragraph.

What is most distressing in the current situation, however, are those cases in which people living in social housing where the agreement has run out or is about to expire are no longer able to pay their rent, because under the agreement, their social housing provider was able to pay them a rent subsidy. They will have difficulty in finding such a subsidy elsewhere, because the total envelope administered by CMHC for social housing is constantly shrinking. To put it plainly, people and families are literally being put out on the street.

How does this government respond? It cuts $15.8 million from the annual budget to deal with homelessness. They put people on the street, and they reduce the funding to deal with homelessness.

In the same breath, they are changing the structure of the Homelessness Partnering Strategy in such a way that a large portion of the budget will be allocated to projects that take a Housing First approach. I suppose everyone understands that I am not against housing.

The Housing First approach does have some advantages. One of the problems, however, is that since the last budget, practitioners involved in dealing with homelessness, those who work on a day-to-day basis with the people affected, are no longer allowed to decide what the priorities are in this area. Homelessness is not just a housing problem.

Another problem is that the reduction in the total budget, combined with the new Housing First approach, will have the effect of reducing considerably the services currently available to the homeless.

Only today, on Parliament Hill, the largest gathering of Quebec groups working to combat homelessness, the Réseau SOLIDARITÉ itinérance du Québec (RSIQ), appeared before Parliament. It came to denounce the government’s new approach to the homeless, particularly with respect to the services currently available to them, which could soon disappear, if the government does not allow those best placed—those working in the field—to decide their own priorities in dealing with homelessness.

That is how things have been done for years. Yet someone, somewhere in Employment and Social Development Canada had a brainwave when they read the report on the At Home/Chez soi project, which incidentally produced good results. This person said that they were now going to change everything.

Money was already tight in the budget to deal with homelessness. If they wanted to do some good, they should have preserved at least the current HPS budget by indexing it, of course, as well as approving permanent funding for the Housing First approach.

The omnibus bill is not merely silent on housing and homelessness. As has now become customary, the Conservatives will also be using this legislative tool to amend or repeal more than 70 laws that are not necessarily budget-related.

Among other things, if this bill is passed, it will also withdraw powers from occupational health and safety officers and place them almost exclusively in the hands of the Minister, and directly challenge the rights of workers to refuse to work in unsafe conditions.

In both situations, I believe we have a major problem. The only question that comes to my mind is the following: why do we really want to compel people to work in unsafe conditions?

By adding the adjective “imminent” to the word “danger”, that is exactly what we are doing. It will henceforth be more difficult for a worker under federal jurisdiction to refuse to work in dangerous conditions. The danger will now have to be imminent. It will no longer be sufficient, therefore, to work in an environment where a large rock is suspended overhead; it will really have to be on the point of falling on you before you can claim dangerous working conditions and refuse to work.

They are playing with people’s lives. The current provisions are already sufficiently restrictive to prevent abuse. On top of all that, all the powers of occupational health and safety officers are to be concentrated in the hands of the minister, and the process is going to be politicized.

What message is being sent to employers? That occupational health and safety are no longer important? Will the minister herself be asked to inspect workplaces to ensure that conditions are not likely to impair workers’ health or safety?

What they are trying to do by means of this bill is a serious backward step with respect to the protections that have been put in place to safeguard the lives and health of people who spend a large part of their time in the workplace.

People go to work to make a life for themselves, not to lose it.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, it is an honour to speak on behalf of my constituents from Surrey North. I have patiently been trying to listen to the gibberish that has been coming from the government benches. I think that the members are allergic to facts, so I will try to focus on some of the facts that have been misrepresented on the government's side. I will be speaking to a number of issues during my time.

I, too, had a chance to speak at the second reading of Bill C-4, and I was hoping that some of the discussion that took place in the House and in committee would be taken into account by the Conservatives to perhaps make some amendments to the bill. Unfortunately, as usual, they have failed to do that.

After the summer and the prorogation of Parliament, the Conservatives were going to hit the reset button, restart their engines and work for Canadians. Unfortunately, during the month that was lost in the summer prorogation, I do not think the Conservatives learned anything or listened to Canadians. It is unfortunate.

I think they never actually got outside of the Ottawa bubble to talk to the people in their constituencies or talk to people with real issues and real problems. I think the Conservatives never left Ottawa, because we started from the same place where we left off in June. Basically, the government has lost track of Canadian priorities.

I will tell the House what the Canadian priorities are. Canadian priorities are jobs. They want jobs for our youth, our young people who are unemployed. We have a really high unemployment rate for our young people. They want training for our young people. The Conservatives talk about hiring tax credits of $1,000, and we say let us increase it to $2,000 for small businesses so that we can get young people trained and hired by small businesses.

Conservatives will talk about how small businesses are the economic engine of the economy. I agree with them, but what have they done? They have done nothing at all. They have failed to deliver on what they are saying in the House over and over again. I have seen it over and over again.

Let us talk about other Canadian priorities. They are focused on high debt ratio for our households. That is a huge issue. Last week, I had a chance to talk with the representatives of FCM. I had a number of mayors and councillors from British Columbia come to visit me. Guess what their priorities were? Their number one priority was the housing crunch that is coming in this country. Yet in this bill here, we do not see it. The Conservatives are not addressing it.

Their number two priority was money for the infrastructure that has basically been neglected by the government over the years. Infrastructure money has not been given to municipalities, so that we can have flourishing businesses, transportation to move our goods, and people on these infrastructure projects that are creating well-paying local jobs. That is not in this bill.

The FCM representatives are local people and councillors from my municipality. They are people from Vancouver and throughout British Columbia. Their third priority was rail safety. That is not being addressed by the Conservative government.

Again, I am guessing that the Conservatives never left the bubble. It is time they went back to their constituencies and talked to real people.

Real people are talking to me. I have talked to hundreds of people, and they are very concerned. They are concerned about the changes that are in this bill, particularly the safety of workers that is being denigrated in this bill. I have had a number of constituents talk to me personally, and they have emailed me too. I will quote from an email I received from one of my constituents. This is the last lines of the email:

These amendments will turn back the clock on worker health and safety and endanger lives. I strongly urge you, as my MP, to oppose these amendments, and to insist these provisions be removed from Bill C-4. These proposed changes will inevitably lead to a higher number of deaths and injuries of Canadian workers.

Guess who said that. It is a person from my constituency. I have a list of names: Narinder Gill, Paul Belanger, Shelby Carpenter, Emily Stonehouse, Gursharan Shergill, Sharanjit Grewal, Kal Atwal, Lisa Klynstra, Lawrence Cameron, and Kim Buss. There are many more emails and names of real people on the ground who are concerned about the health and safety of Canadian workers, yet the government is not addressing the issues.

I constantly hear the Conservatives talk about how they are good managers of the economy, how well they are doing, and how they are lowering taxes. During the last six or seven years, guess how much debt they have put on Canadians. It is $100 billion. I will use their analogy. That is $12,000 of extra debt for every family of four. That is their record. That is the load they are leaving for our future generation. I have two kids. They are burdening my kids and every Canadian family's kids.

Let us talk about trade. When they became the government, we had a trade surplus of $26 billion. Guess what the trade surplus is now. Actually, it is not a surplus now; it is a deficit of $62 billion. They talk about how they are going to expand trade and reach new markets, yet the record of the current government is that we have gone from a trade surplus of $26 billion to a trade deficit of $62 billion.

There was a trade committee meeting this morning. We had a representative from the Canadian Council of Chief Executives appear. I asked her if tariffs on goods coming into Canada are a tax, and she said absolutely. The tariffs on goods coming into this country are a tax on Canadian families.

The government has taken 70 countries out of a tax bracket for certain goods. That means that goods coming from those countries will now have a tariff, which, in turn, is basically a tax on Canadians. I am talking about everyday goods families use, such as clothing and spices. My family uses lots of spices. Those are consumer goods. The Conservatives talk about their consumer agenda. Their actual agenda is an additional tax, through tariffs, on Canadian families. That is their true record.

There are many other issues they had a chance to address in Bill C-4. They had a chance to create real jobs, help young families, and help working class families, yet they have failed to deliver over and over.

They had a chance to recalibrate over the summer, yet they have not listened to Canadians at all. We thought they would learn from their previous mistakes with regard to omnibus bills, yet when they returned to the House, they brought forward another omnibus bill. This is not a 200-page bill. This is a 300-page bill, and it addresses 70 different pieces of legislation. They need to break the bill up so that we can have a true picture of how it would affect Canadian families and businesses.

The Conservatives say one thing in the House and do exactly the opposite. I think the Conservatives are allergic to facts and research. The fact is that they have a terrible record on economics. They have a terrible record with regard to the deficit; they have had a $100 billion deficit in the time they have been in government. They have a terrible record on trade. They are not listening to Canadian families. They are not working for Canadians. They need to put the interests of Canadian families first and create jobs, which they have failed to do.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, it is my pleasure to speak again to Bill C-4. I had the opportunity to speak to it at second reading before it went to committee.

I am happy to talk to my friend from the Liberal Party and ensure that he understands what is in Bill C-4.

What I found funny this week when I was listening was that I was speaker 69 last time and I think the speaker before me wanted to go to the vote on it, and I know we are relatively close to that again this time.

We have had a large number of speakers to the bill. It was funny that we were hearing from the opposition that we were not given enough time to speak on the bill. Then this week, I hear from a number of opposition members that we keep repeating ourselves. We keep repeating ourselves because there is only so much in this bill and everybody understands what is in it. One either agrees or disagrees with it. It is not that complicated.

The opposition says that it is an omnibus bill. Yes, it is a couple of hundred pages: 100 in French, 100 in English. Can they read that? I am not sure. I know I can and I am pretty sure my opposition members can read that much.

Anyway, I want to talk about the areas in Bill C-4, which is the implementation bill of the budget and other measures. People seem to miss the title of the bill, which does say “other measures”. Therefore, it was not just what was in the budget in the spring, but other measures that this government thought were important to bring forward and to get through the House, and I will talk a little about that.

I want to talk about the things that directly affect my riding.

The first thing I want to speak about is the lifetime capital gains exemption basically for small business. The largest employer in my riding has about 600 employees. The municipality, in fact, has about that many employees, or a bit less. The vast majority of employers in my riding are small and medium-sized businesses.

These businesses are often individually owned businesses or group owned. Very few are traded on the stock market, but there are some there, such as financial offices of different organizations in terms of credit. We have components of different larger organizations, but the vast majority are medium-sized businesses owned by small groups of individuals or individuals themselves.

Through this bill, we would increase the capital gains. Business owners could save based on the amount they could retain after they sell their business or pass it on. Small and medium-sized businesses are often passed on to family members. The sale of a business would allow for money to be left in the pockets of the entrepreneurs. They created the jobs and economic activity in my riding and have earned the right to retain earnings. It is their retirement often.

Not all businesses in my riding own their buildings or real estate, for example. Therefore, the retained earnings they would get and the savings they would make on the change to the capital gains exemption would be significant to them, to their families and to their retirement.

We often hear concern about turning a business over, whatever that business might be, because of the cost of capital gains and what would be left in one's pocket after the taxes were paid. This measure would allow for a little more to stay in an owner's pocket, which I think is very important.

The next thing I want to talk about is the accelerated capital cost allowance for clean energy generation equipment.

We have the ACCA on a number of items across the country. It is part of the accounting packages that we allow for accelerated capital cost allowance. Basically, it would allow a company to write-off capital expenditures much faster than it would have been able to under normal charts in terms of expected lifespan. It is an accounting piece that would allow companies to invest in equipment and realize profits from that equipment in a much quicker manner. I am very supportive of that.

Part of it is that we have included clean energy generation and clean energy equipment that did not qualify previously for the accelerated capital cost allowance, and this does that. For companies in my riding, if they are not directly involved in the clean energy generation business but are suppliers of those businesses—for example, parts for equipment they may buy—it makes a significant difference to those small and medium-sized businesses being able to take advantage of that ACCA.

I would now like to talk about the hiring credit for small business. In budget 2011, we brought forward the $1,000 per employee small business hiring credit, and we are continuing that process through Bill C-4. This would allow those small and medium-sized businesses in my riding an opportunity to grow, to provide economic growth not just for Burlington but for Ontario and for Canada.

Growth comes in a number of ways, through sales and so on, and if businesses continue to grow, they often need more people. We want to encourage employment through Bill C-4, through our whole budget, our economic action plan, and this mechanism helps encourage employment, particularly for young people in my riding of Burlington. It is a relatively expensive place to live, and we are having an issue with young people who have grown up and gone to high school in Burlington, have gone away for post-secondary education either at McMaster next door in Hamilton, in the area or across the country, and are having a hard time finding positions to come home to in Burlington. The mayor and the city council have looked at this. The small business hiring credit would assist small businesses in my riding to hire young people and help them get started in their careers after their education.

We are doing what we can federally, as is the municipality through a number of programs, to encourage local employment for young people, particularly ones who have a connection with our community and have added to its quality of life.

The other couple of areas I would speak to are on the other categories in the bill. I am fortunate enough to be the chair of the justice committee, which I will talk about last; but first, I have also been fortunate to be assigned to the citizenship and immigration committee, which is a new experience for me. I had not been on that committee before, and this fall I was asked to sit on the committee. I have enjoyed my time there. Part of the discussion we have been having was with Bill C-4. As members know, there were a number of areas under the “other” category, and the finance committee sent those parts of Bill C-4 to those committees for further study.

At the citizenship and immigration committee, we had the opportunity to talk about two things that are in Bill C-4. One is the passport issue. I think we have done the appropriate thing. People who come into my office to talk to me about passports are somewhat surprised, and even I was surprised, that passports were under Foreign Affairs. In actual fact, we are moving it over to Citizenship and Immigration, where it is more appropriate for it to be managed, and that would make for a better system.

My final point is that the Supreme Court Act was also submitted in Bill C-4 and was referred to my committee. We had excellent committee meetings on this issue. We talked about what we are doing, moving forward, in being able to appoint individuals to the Supreme Court. It was an excellent discussion. We had a number of meetings with a variety of different witnesses, suggested mostly by the opposition, so we were able to deal with that issue and send it back to finance. I think it was the appropriate thing to do.

I am happy to answer any questions that may come my way.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to thank my colleague for her excellent question, because that is a very big concern.

In fact, I will focus on a very specific aspect that Bill C-4 will change. Right from the very first day that we studied this bill, an army of public servants were able to answer our countless questions, actually only a fraction of the countless questions we had.

I would like to cite a very specific example because I want to focus on the measures that will affect the public service. The new arbitration, the new powers assumed by the minister will affect other sectors of activity. With regard to the definition of essential services, the official who answered my questions did confirm that no category of workers, no public servant could be automatically excluded from being providers of an essential service. If the minister ever abused his power, litigation would be the only recourse. Therefore, this is a means of bringing the courts into labour relations. This is a very serious mistake because we should always encourage negotiation. That will absolutely not be the case with this bill, and it is setting the stage for a generalized deterioration of the climate in which working conditions are negotiated for workers in general.

I again thank my colleague for her question.

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

Mr. Speaker, my colleague started to talk about what the bill does to workers' rights. We know that some elements of Bill C-4 will violate workers' rights. There have been other bills, such as Bill C-377, which forced unions to disclose their financial information to the general public, even though this information is already provided to their members. Bill C-525 goes even further with respect to the right to organize.

Is my colleague concerned about this trend? The Conservatives are trying to weaken workers' groups and groups that advocate for workers' rights, the rights of average Canadians, of those who work hard every day. At the same time, they are giving rights and powers to the minister. Does the member share my concern?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would not describe the speech I am going to give on Bill C-4 as being really pleasant. Indeed, I participated in the study of this budget bill as a member of the Standing Committee on Finance.

Of course, the fact that this is essentially an omnibus bill already shows a total lack of respect for Canadians, as well as our witnesses. These witnesses were rushed and lined up on the benches of the committee room to testify to their concerns about this bill, in a very short period of time. Obviously, this also shows a blatant lack of respect for our institutions.

The Conservative government has no qualms about introducing a whole series of measures in one catch-all bill. Many of these measures have nothing to do with the budget, while others deserve serious and thorough consideration as part of separate bills in other committees.

I am therefore condemning this umpteenth disrespectful act from this government. This is something quite serious. It basically undermines public confidence and it undermines the functioning of our institutions, making them dysfunctional. The responsibility for this act and its burden fall squarely on the shoulders of this Conservative government.

We have already had to swallow this kind of bitter medicine. It is familiar to us and we try to object. Obviously, we work primarily based on facts instead of working to win at all costs, as the Conservatives do.

To top it all, the member for North Vancouver moved a motion that upon reading is so ridiculous that it would be funny if not for its tragic consequences. Basically, my colleague's motion ensured that the day for the clause-by-clause consideration of the omnibus bill, which included a total of 472 items, ended at midnight, that all items not voted on that day were deemed passed, and, furthermore, that all non-voted amendments, that is, our honest and fair proposals, the kind of proposals that deserved to be carefully considered, were deemed rejected.

Let me tell it like it is. It is not enough that the government has a majority and can abuse it utterly shamelessly. It wants a double lock on power. In other words, it is doing everything it can to make its position unassailable at the expense of our institutions and Canadians. It is even laughing at our witnesses.

The New Democratic Party tabled its amendments at 9 a.m. on Tuesday, November 26. There was a meeting of the Standing Committee on Finance that same day from 11 a.m. to 2 p.m. The committee met for three hours, during which it heard from about a dozen witnesses in two groups of six or so.

Everything happened so fast. We could not really dig into the issue, and the witnesses were unable to truly explain their positions. That was all after the NDP tabled its suggestions.

That is unspeakable behaviour on the part of the government. The government cannot give us a single reasonable argument. It cannot even say that there is any sense of urgency. I should point out that, unfortunately, we lost a month of work in the House because of prorogation. The government has no valid reason for acting that way except for its intrinsic cowardice.

The Conservatives want to win at any price and are abusing their majority in the extreme. That majority is shrinking as they lose players—we will talk more about that later. We can all watch closely as the Conservatives self-destruct and wait for the day when the government loses its majority.

I would like to comment on the omnibus nature of this bill. As a member of the official opposition, I think it is terrible. The government does not care that my colleagues and I object. That seems to be par for the course. That is unacceptable on the part of the government, but it is to be expected.

It does not make any sense for the government to turn a deaf ear to the opinions of experienced and attentive observers who also disagree with the completely unacceptable omnibus nature of the government's budget implementation bills.

In a relatively long article, after talking about how the bill makes a mockery of the confidence convention and how it fails to respect our institutions, columnist Andrew Coyne said that all we know is whether MPs voted for or against the omnibus bill as a whole. MPs cannot make a distinction between or express their views on specific parts of the bill that should have been bills in their own right.

He added that there is no common thread that runs between them, no overarching principle; they represent not a single act of policy, but a sort of compulsory buffet. He finds it alarming that Parliament is being obliged to rubber-stamp the government’s whole legislative agenda at one go.

In my opinion, Mr. Coyne is a credible individual whose opinion counts. When he goes that far in talking about the government, we should take notice. The only government members who are present are barely listening. It is rather unfortunate.

Since I have only a minute left, I would like to quickly talk about a concern I have that is related to my role as the member for Beauport—Limoilou and thus the beautiful Quebec City.

TeraXion is expanding and over 90% of its sales are made internationally. With regard to venture capital for labour-sponsored funds, Alain-Jacques Simard, CEO of TeraXion said:

[For TeraXion,] the Fonds [de solidarité FTQ] was a kind of catalyst, and since January 2010...we have...doubled our sales.

For the benefit of the House, I would like to point out that during the most recent Gala des Mercuriades in Montreal, in 2013, TeraXion was given the award for export and development of international markets.

Given that Canada is losing its ability to export and many of its companies are disappearing, it is extremely worrisome that the government is working against our exporters.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, I am pleased to rise today to speak to Bill C-4, a second budget implementation act.

Unfortunately, I only have 10 minutes to talk about the wonderful things that are contained within Bill C-4 and about all of the wonderful things we have done as a government to not only make our economy one of the strongest performing economies in the world, certainly, within the G7, creating over one million net new jobs since the depths of the recession, but also about some issues that are more close to home, rather than the big macro issues, and some of those are in the riding of York Centre.

I am privileged and honoured to represent the wonderful people of the riding of York Centre. Many of the people who reside in York Centre are new to Canada. They come from every country around the world. We have the largest number, for example, of Russian-speaking people of any riding in the country; the third-largest number of Filipinos; and the fastest-growing Latino population. These people are coming to Canada for hope and opportunity. They are coming for the opportunity that our government has created for them.

We have created economic conditions that people can take advantage of. They can create businesses. They can be employed in jobs.

My father came from Europe after the war. He was the only survivor from his family. When I was growing up, I remember peeking out the curtains, waiting for my dad to come home every night and watching him haul himself out of the car and just really dragging his knuckles across the driveway. I really wanted to play with him. I wanted him to help me with my homework. I remember how dead tired he was. He, nevertheless, took the time to help me with my homework, to engage with me, to read to me.

I do a lot of community outreach, as I am sure many of the members do in this chamber. When I go around my riding of York Centre to canvass door to door and go to community events, I see so many people who are new to this country of Canada and who are new to the riding of York Centre. They are trying to be the best Canadians they possibly can because they have come to this country for a variety of reasons, certainly to seek opportunity but also to escape persecution and racism. They are coming here not so much for themselves but more for their kids. When I see them with their kids and with their families so engaged, I remember when I was growing up, feeling exactly the same way. I know how these new immigrants to York Centre are feeling because I see a lot of me in them.

It is wonderful to know that we have a government that is coming to the aid and having the backs of Canadians so that we have fostered an economy whereby we have job creation and we have an environment where small businesses can flourish.

Just to get down to some specifics, Canada is recognized by a number of international organizations, from the OECD to the IMF, as having the strongest economic fundamentals in place. We have these fundamentals in place because we have a plan.

When I am back in the riding, I go to a lot of schools, junior highs and high schools. I ask the kids what their plans are for the future. Everyone has a plan of some sort. Either they are going to go into public service, go into business, seek a job in IT, and so on, but everyone has a plan.

Our plan, since 2006, has been based on job creation and balancing the budgets in a way that would not require us to raise taxes. In fact, we are lowering taxes. What we have done, for example, for the average Canadian family of four, is lowered taxes by $3,200, on average. That is a lot of money for people.

For businesses, we have extended the hiring tax credit. This is going to help 565,000 small businesses in the country, so they can go out and hire more people. This will save businesses hundreds of millions of dollars so they can invest more in their business rather than giving it to the government. Now they can create jobs for people who need them. We know that we have a shortage of skilled labour in this country. People are out, seeking jobs.

Is our job complete? We created over a million net new jobs since the depth of the recession, but is our job complete? No, and it will not be complete until every Canadian who wants a job is able to have a job. That is when we know our job will be complete.

Back in 2006, we inherited an economy that was doing well. Rather than continue to spend and raise taxes, as previous governments had done, and balance our budget on the backs on the most vulnerable Canadians, as the Liberals did in the mid-nineties by cutting social transfers, by cutting the Canada health transfer, we paid down debt. We paid about $38 billion in debt, from 2006 to 2008.

As a result, we had some manoeuvrability, a cushion that we were able to use so we could inject more money into the economy when the recession hit in 2008.

We invested millions of dollars into the economy. These projects that we invested in were shovel-ready. This must be a record for government, getting that money out the door as quickly as possible and getting the projects under way. I think every project that started as a result of the economic stimulus package in 2008, 2009, and 2010 is complete. I would think that is some kind of record in Canadian history.

Our job is not finished, and our government remains focused on what matters most to Canadians. What matters most to Canadians is jobs, growth, and long-term prosperity. It is not increasing taxes. It is not engaging in wild, hare-brained spending schemes, as the NDP is proposing, or legalizing marijuana, as the Liberals are proposing. We have a thorough economic plan, and it has been in place since 2006.

Our low-tax agenda has served us well. Canadians are happy to know that they are paying less tax today. Lowering the GST, for example, was a commitment we made in the election campaign; we have lowered it from 7% to 6% to 5%. That puts more money back in the pockets of Canadians where it belongs. Canadians take that money and spend it, and when they spend it, it creates jobs and economic activity. That is a good thing.

We are not proposing a $21-billion carbon tax that would increase the cost of everything, as the NDP is. We are heading into the Christmas season now, and we would be paying more for toys for our kids if we had a $21-billion carbon tax. That is not acceptable. It is unacceptable to Canadians and unacceptable to us in the government.

Another thing our government has been focused on is a very aggressive trade agenda. Since we took government in 2006, we have negotiated six additional free trade agreements. So far we have 16 trade agreements and foreign investment promotion agreements. This is a record.

We have just concluded agreement on CETA, the comprehensive economic and trade agreement with the European Union. This will create thousands of new jobs. It will create employment and economic activity. It will create all kinds of activity for Canadians to find more jobs. It will open up markets in Europe. Half a billion people in Europe will now be able to access the Canadian market, and Canadian manufacturers and sellers will be able to sell their products within the European Union. This is really a good thing.

We hear from the opposition members how anti-trade they are. This is unacceptable, because trade means jobs. We know that and Canadians know that. Canadians sent us here to get a job done. They gave us a majority in 2011 based on an economic platform we put forward to them. They approved of it. They sent us here to get the job done.

As a result of our economic action plan, we have the strongest economic fundamentals of any country around the world. Our debt to GDP ratio, for example, is 35%. We have committed to getting that down to 25% by 2021, as we stated in Los Cabos at the G20.

When I go back to my riding, I see new immigrants who are working extremely hard. Many who have been in Canada for a few years are now starting their own businesses. I see that in a variety of communities, particularly in the Russian and Filipino communities. They are starting their own small businesses and they are starting to hire people. This is a wonderful thing to see. This is why they came to Canada: so they can send their kids to school and to university. It is so they can become professionals, doctors, lawyers, and members of Parliament, or perhaps one day even a prime minister of Russian-speaking descent, or of Filipino descent, or of Latino descent. That would be wonderful to see.

In conclusion, our economy policy is envied around the world. Our economic performance is a model, thanks to our wonderful Minister of Finance, who has been recognized as the world's best finance minister.

Let me conclude by saying that I hope everybody in the House will support Bill C-4 to keep our economy number one in the world.

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I would point the hon. member to the many initiatives that the Minister of State for Social Development and the Minister of Employment and Social Development have announced over recent months with respect to affordable housing. Some of those investments and announcements were announced in my riding of Richmond Hill.

Let me say this. It is not just us, the Conservatives, who are saying that Canada is on the right track. If we look at the International Monetary Fund and the Organisation for Economic Co-operation and Development, they are saying that Canada will continue to be a leader in job creation and a leader in the economy among the G7 countries moving forward in the ensuing years.

We all have to work together. Once again, I would urge the hon. member, his colleagues and all members of the House to support Bill C-4 so that we can get on and get the job done for Canadians.

[Costas Menegakis, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, I am pleased to rise today on behalf of my hard-working Richmond Hill constituents to speak on the second economic action plan 2013 implementation bill, or Bill C-4, as we all know it.

Before I begin my comments, I would like to reflect on some of the positive results we have already achieved with our economic action plan. Many of these successes are included in my recent Richmond Hill report, which will soon be circulating throughout my riding. It notes that over one million more Canadians are employed today than at the top of the recession in 2009. It points out that Canada has the best job creation record and the lowest debt level of all G7 industrialized countries. It notes that Standard and Poor's has again confirmed our AAA rating while highlighting our stable, incredible policy-making and highly resilient economy as factors behind this achievement.

The report also informs Richmond Hill residents that, as confirmed in the government's annual financial report, our country is on track to return to balanced budgets. By eliminating wasteful spending and ineffective government programs, we have enabled the deficit to fall by $7.4 billion from the year before. We remain on target to balance the budget in 2015, and a surplus of $3.7 billion is expected in the year 2015-16.

Best of all, we have done this without raising taxes or cutting transfer payments to our provinces and territories. In fact, we have done the complete opposite. We have nearly doubled transfers and have cut taxes over 160 times.

These actions have led to a federal tax burden on the average family that is $3,220 less than when our Conservative government took office. It also means that government revenue as a percentage of gross domestic product is at its lowest level in over 50 years. It is a record that is once again the best by far among G7 countries. My constituents are pleased that our efficient and effective government is putting money back into their pockets, exactly where it belongs.

I mention these things, because this track record of success becomes the backdrop to our actions going forward. Our plan is clearly working, and the implementation measures contained in Bill C-4 would build on these achievements.

For example, Bill C-4 corrects many of the tax avoidance activities that have crept into our system. It proposes measures to reduce international tax evasion, aggressive tax avoidance and tax planning, and tax loopholes and to clarify the tax rules. It proposes stiff new monetary penalties and criminal offences for persons who evade taxes by using electronic suppression of sales, or ESS, software to falsify sales records. It also provides penalties for persons found to manufacture, develop, sell, process for sale, or offer for sale ESS software.

Tax evasion and avoidance entails a real fiscal cost to governments and taxpayers. It is unfair to businesses and unfair to individuals who play by the rules. Our government will not tolerate tax cheats. Canadians want integrity in the tax system, and the proposals in Bill C-4 would deter this type of activity.

I am also pleased to highlight some of the additional job-creating measures in Bill C-4 that the good people in my riding of Richmond Hill, such as the Richmond Hill Chamber of Commerce, are very pleased about. For example, the Employment Insurance Act would be amended to allow the employment insurance premium rate to be frozen at 2013 levels for the years 2014, 2015, and 2016. This one measure would save Canadian businesses over $660 million in 2014 alone.

Going forward, it would ensure that EI premiums were no higher than they needed to be to pay for the EI program. Rates would be set according to a seven-year break-even rate-setting mechanism. This would ensure that EI premiums were set no higher than necessary over that seven-year period.

By enacting these changes, we are promoting stability and predictability for employers and employees.

We believe that small businesses are the engine of job creation in Canada. In budget 2011, to help stabilize that sector and recognize the challenges they face, we instituted a temporary hiring credit for small businesses of up to $1,000 per employer. The credit provided needed relief for small businesses by helping to defray the costs of hiring new workers. It was so successful in contributing toward job creation and retention that it was extended in 2012 and today I am pleased to say, as we all know, that budget 2013 will once again extend and expand the hiring credit for small businesses to 2014.

Bill C-4 proposes the technical requirements to make this into law. It would also enhance the credit by increasing the overall threshold from $10,000 to $15,000. An employer whose premiums were $15,000 or less in 2012 will be refunded the increase in their 2013 premiums over those paid in 2012, to a maximum of $1,000. This job-creating measure would save an estimated 560,000 small businesses in our country $225 million in 2013, which, in turn, can be reinvested in their firms.

Bill C-4 also proposes measures to eliminate the inefficient and ineffective tax subsidy in labour-sponsored venture capital corporations. Experts such as the OECD have told us that these vehicles have distorted the market for venture capital, lowered the average quality of deals and limited the supply of equity to non-traditional industries and newer companies. We heard that advice and we acted. Labour-sponsored venture capital corporations will be phased out and replaced with a new venture capital program that will do more to create jobs and economic growth in Canada. The phase-out leaves the credit at 15% when claimed for a taxation year ending before 2015, reduces it to 10% for the year 2015, to 5% in 2016, and fully eliminates it in 2017.

To further encourage businesses to invest in clean energy generation and in energy-efficient equipment, Bill C-4 proposes to expand the classification of clean energy generation equipment eligible for the accelerated capital cost allowance rate of 50%. I know many businesses in my riding will benefit from this expanded classification and this, combined with all the job-creating measures in economic action plan 2013, will help create jobs and economic growth in the great town of Richmond Hill.

As I mentioned earlier, Canada has experienced solid job creation since the implementation of our economic action plan. Today, in addition to having the lowest unemployment rate since 2008, the Canadian labour market is also experiencing a high labour-force participation rate. This means that a high proportion of the population aged 15 years and over in Canada are either working or actively seeking work. This is an indication that the unemployed are seeking work and finding it. In contrast, the United States' participation rate has declined sharply and now stands at its lowest level in more than 35 years.

In Canada, this has caused some imbalances between unemployment and job vacancies. Some Canadian firms are experiencing difficulty in hiring, including the skilled trades in sectors such as mining, oil and gas extraction, and construction. Employers are also having difficulty hiring highly skilled professionals in science-based occupations, such as engineers and architects. On the other hand, some Canadians are unemployed because they do not have the right skills for available jobs in expanding sectors and regions.

Budget 2013 takes several steps to solve this dilemma. It announced that the government will transform skills training in Canada through the introduction of the Canada job grant as part of the renewal of the labour market agreements in 2014-15. Another key step is found in Bill C-4, which through changes to the Immigration and Refugee Protection Act, would allow for the creation of a new and innovative expression of interest, or EOI, immigration management system.

I would like to conclude by saying that I could elaborate at length on the many benefits to Canadians contained in Bill C-4. I urge my colleagues on both sides of the House to support the swift passage of Bill C-4 so that Canadians may begin to reap the many benefits that it contains.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Mr. Speaker, I am pleased to take part in the debate on Bill C-4 today.

On November 7, I was at a book launch of the Right Hon. Joe Clark, the book entitled How We Lead: Canada in a Century of Change. Incidentally, I recommend reading it. That evening I met Larry Rousseau who is the Regional Executive Vice President of the Public Service Alliance of Canada.

We exchanged comments about this bill. I mentioned that Bill C-4 was explosive. It was a play on words and I am happy to see that he agreed and he picked that expression up because he used it in a text that he had published in The Huffington Post on November 23, but he also used it in a number of meetings the following week.

He told me on the Wednesday following, November 13, that he and the Public Service Alliance of Canada would be organizing a series of meetings to brief public servants in this town about the impact of Bill C-4 and that they would invite all the MPs from the area on this side of the river and the Outaouais to attend these meetings.

I attended the four meetings that were held on that Wednesday, where hundreds of public servants came to express their real concerns with the bill, which is now before us, and the contents of this omnibus legislation, specifically in terms of its far-reaching changes to the legislation that governs the federal public service and also workers that fall under federal jurisdiction through the Canada Labour Code.

The bill essentially does blow up a number of public service rights that have been acquired over the past half century, starting in the sixties when the prime minister at the time, Mr. Pearson, granted the federal public servants the lawful right to strike within “un cadre législatif très utile”. They are almost going to lose that.

In a very summary manner, I will say what Bill C-4 would do to this.

First, it would give the government the ability to define essential services in a way that was not done before. Before that, there was a mechanism where both parties, the employer and the employees, could present their arguments and the body that rendered the decision was respected. However, now this law essentially gives that authority entirely to the government.

Unions will no longer have the right to arbitration, yet it is a very important tool that has often been used to settle disputes. Now arbitration will not be an option unless 80% of the members do a job that is considered essential.

Once again, the government is giving itself the right to very easily control a union's ability to use arbitration. It is taking away the essential right to a negotiation tool that works well when the parties cannot come to an agreement.

Even if unions manage to win the right to arbitration, the government has also changed the conditions that arbitrators can use. They can only refer to the government's financial situation or recruitment and retention issues in the public service.

Everything else that could be considered before will now be taken away, including the responsibility of arbitrators to evaluate—as part of a broader, Canadian context—the situation of public servants involved in the negotiations before them. That, too, will be eliminated.

These arbitration boards will no longer be independent. Basically, they will have to report to the government. In addition, the definition of danger is changing, which will affect 200,000 public servants and 800,000 other employees in Canada.

The minister or one of his delegates will be responsible for defining danger. Those are the major changes that have been made, but there are others as well. They will set us back 50 years. Gone is the tremendous progress made regarding the rights of unionized workers in Canada's public service and the workers governed by the Canada Labour Code.

Next June, the five largest federal public service unions will see their agreement expire. What I believe is happening is that the government is outrageously and outlandishly tilting the playing field in its favour so that it can come to these negotiations and essentially adopt a take it or leave it attitude.

We have seen the government do that before. It was with the provinces on the health accord. I was party to that accord in 2004. We negotiated and signed a health accord for 10 years. As we heard today during question period, it is coming to term next year. The Government of Canada, through the Minister of Finance, has basically said that this is it; take it or leave it. It is not a healthy position in terms of relationships.

In terms of the federal government, we need a healthy relationship with our employees, and it would be very seriously affected by the provisions in Bill C-4. What are some of the consequences? We are looking at further erosion, certainly, of the rights and the morale of our public servants. We are also looking at affecting the delivery of services to the Canadian public. There is also a longer-term impact, which concerns a topic we have been bringing to the fore on a regular basis.

The initiatives in this bill will weaken unions. That is contrary to the common good and not in the public interest.

Let us not forget that, from 1950 to the 1980s, there was a phenomenon known as the Great Compression. During those years, the income gap shrank thanks in large part to unions. In 1951, 28.4% of Canadian workers were unionized. That rose to 40% in the 1980s, reaching 41.8% in 1984.

Since then, numbers have fallen and now stand at around 30%. Coincidentally, the wage and income gap within the Canadian population has grown.

We know that the middle class is now earning 5% less, while income levels of the super rich have risen astronomically.

I am sure my colleagues will love the title of this 2009 book by Paul Krugman, The Conscience of a Liberal. Paul Krugman is an economist and Nobel Prize winner, so we have to be careful how we attack him here. I will quote a passage in that book.

I quote:

“Everything we know about unions says that their new power [after World War II] was a major factor in the creation of a middle-class society.

First, unions raise average wages for their membership; they also, indirectly and to a lesser extent, raise wages for similar workers, even if they aren't represented by unions, as nonunionized employers try to diminish the appeal of union drives to their workers. As a result unions tend to reduce the gap in earnings between blue-collar workers and higher-paid occupations, such as managers.

Second, unions tend to narrow income gaps among blue-collar workers, by negotiating bigger wage increases for their worst-paid members than for their best-paid members. And nonunion employers, seeking to forestall union organizers, tend to echo this effect.

In other words, the known effects of unions on wages are exactly what we see in the Great Compression: a rise in the wages of blue-collar workers compared with managers and professionals, and a narrowing of wage differentials among blue-collar workers themselves.

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

Report Stage

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

Mr. Speaker, since this may be the last chance I have to speak to this bill, because of time allocation, I want to correct a few things that the member for Yellowhead said. I cannot find any reference to any study anywhere that says Canada is the best country in the world in which to do business. The World Bank lists Canada as number 17 on the list of best countries in which to do business, with Singapore at the top. The most recent OECD report from November 2013 says, “The pause in the economic recovery since early 2012 has continued...”.

I want to thank the member for Kootenay—Columbia for bringing to light this very important part of Bill C-4 that should never have been in an omnibus budget bill. The Dominion Coal Blocks lands and the incredibly important ecological significance of the Flathead Valley, its potential as a national park and its connection to Waterton Glacier International Peace Park all require separate study by a committee to ensure that those ecological values are protected.

However, I thank the member. It is in his riding. He has spoken forcefully about the need to have ecological protection built into the disposition of these lands. I would ask if he would not consider a conservation covenant to run with those lands to ensure they are protected.