Bill C-43 (Historical)

Economic Action Plan 2014 Act, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures

Part 1 implements certain income tax measures proposed in the February 11, 2014 budget. Most notably, it
(a) extends the intergenerational rollover and the lifetime capital gains exemption for dispositions of property used in farming and fishing businesses;
(b) extends the tax deferral provision with respect to breeding animals to bees, and to all types of horses that are over 12 months of age, that are kept for breeding;
(c) permits income contributed to an amateur athlete trust to qualify as earned income for RRSP contribution limit purposes, with an election available to taxpayers for up to a three-year retroactive application;
(d) extends the definition “split income” to include income from a business or property that is paid or allocated to a minor child from a partnership or trust where a person related to the child is engaged in the activities of the partnership or trust to earn that income;
(e) eliminates graduated rate taxation for trusts and certain estates with an exception for cases involving testamentary trusts whose beneficiaries include individuals eligible for the Disability Tax Credit;
(f) eliminates the 60-month exemption from the non-resident trust rules;
(g) allows an individual’s estate to carry back charitable donations made as a result of the individual’s death;
(h) expands eligibility for the accelerated capital cost allowance for clean energy generation and energy conservation equipment to include water-current energy equipment and a broader range of equipment used to gasify eligible waste fuel;
(i) adjusts Canada’s foreign accrual property income rules in order to address offshore insurance swap transactions and ensure that income from the direct or indirect insurance of Canadian risks is taxed appropriately;
(j) better circumscribes the existing “investment business” definition in the foreign accrual property income regime;
(k) addresses back-to-back loan arrangements involving an intermediary; and
(l) extends the existing tax credit for interest paid on student loans to interest paid on a Canada Apprentice Loan.
Part 1 also implements other selected income tax measures. Most notably, it
(a) alleviates the tax cost to Canadian-based banks of using excess liquidity of their foreign affiliates in their Canadian operations;
(b) ensures that certain securities transactions undertaken in the course of a bank’s business of facilitating trades for arm’s length customers are not inappropriately caught by the base erosion rules;
(c) modernizes the life insurance policy exemption test;
(d) amends the foreign affiliate rules to ensure they apply appropriately to structures that include partnerships and makes generally relieving changes to certain of the base erosion rules to ensure they do not apply in unintended circumstances;
(e) amends the rules for determining the residence of international shipping corporations;
(f) provides for the appropriate taxation of taxpayers that invest in Australian trusts;
(g) amends the foreign affiliate dumping rules to ensure the rules apply in appropriate circumstances and, if applicable, provide appropriate results;
(h) excludes from the definition “non-qualifying country” in the foreign affiliate rules those countries or other jurisdictions for which the Convention on Mutual Administrative Assistance in Tax Matters is in force and effect;
(i) avoids unintended tax consequences with respect to the British Overseas Territory of the British Virgin Islands;
(j) simplifies the rules for the Canadian Film or Video Production Tax Credit regime;
(k) amends the trust loss restriction event rules to provide relief for investment trusts that meet specific conditions; and
(l) increases the maximum amount that may be claimed under the Children Fitness Tax Credit and makes the credit refundable starting in 2015.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures by
(a) ensuring that pooled registered pension plans are subject to similar GST/HST treatment as registered pension plans;
(b) implementing real property technical amendments that provide for the consistent treatment of different types of housing and ensure that the special valuation rule for subsidized housing works properly with the GST/HST place of supply rules and in the context of a GST/HST rate change;
(c) clarifying the application of GST/HST public service body rebates in relation to non-profit organizations that operate certain health care facilities; and
(d) relieving the GST/HST on services of refining precious metals supplied to a non-resident person that is not registered for GST/HST purposes.
Part 3 amends the Excise Act, 2001 to provide a refund of the inventory tax, introduced in the February 11, 2014 budget, on cigarettes that are destroyed or re-worked, in line with the refund of the excise duty that exists for tobacco products that are destroyed or re-worked.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Industrial Design Act to make that Act consistent with the Geneva (1999) Act of the Hague Agreement Concerning the International Registration of Industrial Designs and to give the Governor in Council the authority to make regulations for carrying it into effect. The amendments include provisions relating to the contents of an application for the registration of a design, requests for priority, and the term of an exclusive right for a design.
It also amends the Patent Act to, among other things, make that Act consistent with the provisions of the Patent Law Treaty. The amendments include reducing the requirements for obtaining a filing date in relation to an application for a patent, requiring that an applicant be notified of a missed due date before an application is deemed to be abandoned, and providing that a patent may not be invalidated for non-compliance with certain requirements relating to the application on the basis of which the patent was granted.
Division 2 of Part 4 amends the Aeronautics Act to authorize the Minister of Transport to make an order, and the Governor in Council to make regulations, that prohibit the development or expansion of or any change to the operation of an aerodrome. It also amends the Act to authorize the Governor in Council to make regulations in respect of consultations by the proponents and operators of aerodromes.
Division 3 of Part 4 enacts the Canadian High Arctic Research Station Act, which establishes a new federal research organization that is to be responsible for advancing knowledge of the Canadian Arctic through scientific investigation and technology, promoting the development and dissemination of knowledge of the other circumpolar regions, strengthening Canada’s leadership on Arctic issues and ensuring a research presence in the Canadian Arctic. It also repeals the Canadian Polar Commission Act and makes consequential amendments to other Acts.
Division 4 of Part 4 amends section 207 of the Criminal Code to permit charitable or religious organizations to carry out, with the use of a computer, certain operations relating to a provincially-licensed lottery scheme.
Division 5 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to adjust the national standard for eligibility for social assistance to provide that no minimum period of residence is to be required for Canadian citizens, for permanent residents, for victims of human trafficking who hold a temporary resident permit or for protected persons.
Division 6 of Part 4 amends the Radiocommunication Act to:
(a) introduce an administrative monetary penalty regime;
(b) explicitly prohibit jammers, subject to exemptions provided by the Minister of Industry;
(c) provide for the enforcement of rules, standards and procedures established for competitive bidding systems for radio authorizations;
(d) modernize wording relating to the powers of inspectors and the requirements to obtain warrants;
(e) authorize inspectors to request information in writing and to seize non-compliant devices; and
(f) authorize the Minister of Industry to share information with domestic and foreign bodies for the purpose of regulating radiocommunication.
Division 7 of Part 4 amends the Revolving Funds Act to correct an error in the heading before section 4 by replacing the reference to the Minister of Foreign Affairs with a reference to the Minister of Citizenship and Immigration. The amendment is deemed to have come into force on July 2, 2013.
Division 8 of Part 4 amends the Royal Canadian Mint Act to eliminate the anticipation of profit by the Royal Canadian Mint with respect to the provision of goods and services to the Government of Canada.
Division 9 of Part 4 amends the Investment Canada Act to require foreign investors to provide notification whenever they acquire a Canadian business through the realization of security on a loan or other financial assistance, unless another Act applies. It also allows public disclosure of certain information related to the national security review process and makes related amendments to another Act.
Division 10 of Part 4 amends the Broadcasting Act to prohibit a person who carries on a broadcasting undertaking from charging a subscriber for providing the subscriber with a paper bill.
Division 11 of Part 4 amends the Telecommunications Act to provide the Canadian Radio-television and Telecommunications Commission (CRTC) with the authority to impose certain conditions concerning the offering and provision of services on providers of telecommunications services that are not telecommunications carriers, to prohibit providers of telecommunications services from charging subscribers for the provision of paper bills, to allow for sharing of information between the CRTC and the Competition Bureau, to provide the CRTC with the authority to impose administrative monetary penalties for violations of the Telecommunications Act, CRTC decisions and regulations, to provide the Minister of Industry with the authority to establish a registration system and update other processes relating to telecommunications apparatus in order to assess conformity with technical requirements, and to update inspection powers for ensuring compliance with that Act.
Division 12 of Part 4 amends the Business Development Bank of Canada Act to clarify the financial and management services that the Business Development Bank of Canada is authorized to provide, including financial services in respect of enterprises operating outside Canada. It also makes some changes to the governance provisions of that Act.
Division 13 of Part 4 amends the Northwest Territories Act — enacted by section 2 of chapter 2 of the Statutes of Canada, 2014 — to provide that, if the election period for the first general election under that Act would overlap with the election period for a federal general election, then the maximum duration of the first Legislative Assembly of the Northwest Territories under that Act may be extended until five years from the date fixed for the return of the writs at the last general election under the former Northwest Territories Act (chapter N-27 of the Revised Statutes of Canada).
Division 14 of Part 4 amends the Employment Insurance Act to allow for the refund of a portion of employer premiums paid by small businesses in 2015 and 2016. An employer is eligible for that refund if its premium is $15,000 or less for the year in question.
It also amends that Act to exclude from reconsideration under section 112 of that Act decisions of the Canada Employment Insurance Commission made under the Employment Insurance Regulations respecting the writing off of penalties owing, amounts payable or interest accrued on any penalties owing or amounts payable.
Division 15 of Part 4 amends the Canada-Chile Free Trade Agreement Implementation Act in order to implement amendments to the dispute resolution mechanism of the Canada-Chile Free Trade Agreement.
Division 16 of Part 4 amends the Canada Marine Act to provide for the power to make regulations with respect to undertakings that are situated in a port. It also authorizes those regulations to incorporate by reference documents, including the laws of a province. Finally, it authorizes port authorities to acquire federal real property or federal immovables and to lease or license any real property or immovable other than federal real property or federal immovables.
Division 17 of Part 4 amends the DNA Identification Act to, among other things,
(a) create new indices in the national DNA data bank that will contain DNA profiles from missing persons, from their relatives and from human remains to assist law enforcement agencies, as well as coroners, medical examiners and persons or organizations with similar duties or functions, to find missing persons and identify human remains;
(b) create a new index that will contain DNA profiles from victims of designated offences to assist law enforcement agencies in identifying persons alleged to have committed designated offences;
(c) create a new index that will contain DNA profiles derived from bodily substances that are voluntarily submitted by individuals to assist in either the investigations of missing persons or designated offences;
(d) establish criteria for adding and retaining DNA profiles in, and removing them from, the new indices, and transferring profiles between indices;
(e) specify which DNA profiles in the existing and new indices will be compared with each other;
(f) specify the purposes for which the Commissioner of the RCMP may communicate the results of comparisons of DNA profiles and the purposes for which that information may be subsequently communicated; and
(g) specify the uses to which the results of comparisons of DNA profiles may be put.
It also makes consequential amendments to the Access to Information Act and the Public Servants Disclosure Protection Act.
Division 18 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to provide that certain foreign entities that are engaged in the money-services business are included in the definition “foreign entity”.
Division 19 of Part 4 amends the Department of Employment and Social Development Act to eliminate the limit on the number of full-time and part-time members of the Social Security Tribunal.
Division 20 of Part 4 amends the Public Health Agency of Canada Act to create a new position of President as deputy head of the Public Health Agency of Canada, thereby separating the responsibilities of the Chief Public Health Officer from those of the deputy head of the Agency.
Division 21 of Part 4 amends the Economic Action Plan 2013 Act, No. 2 in order to provide that certain provisions of Division 8 of Part 3 of that Act apply to any corporation resulting from an amalgamation referred to in that Division, and to provide that certain provisions of the Blue Water Bridge Authority Act continue to apply to the Blue Water Bridge Authority after its continuance.
Division 22 of Part 4 amends several Acts to discontinue supervision of provincial central cooperative credit societies by the Office of the Superintendent of Financial Institutions, to eliminate tools for federal intervention in relation to those centrals and to provincial local cooperative credit societies, and to facilitate the entry of provincial cooperative credit societies into the federal credit union system by simplifying the process for continuation and amalgamation that applies to them.
Division 23 of Part 4 amends the Financial Administration Act to authorize Her Majesty in right of Canada to neither pay nor collect low-value amounts, except amounts owed by Crown corporations to persons other than Her Majesty in right of Canada, amounts payable to Crown corporations by such persons, amounts payable under the Air Travellers Security Charge Act, the Excise Act, 2001, the Excise Tax Act, the Income Tax Act or the Softwood Lumber Products Export Charge Act, 2006, and amounts related to the public debt or to interest on the public debt. It also provides Treasury Board with the authority to make regulations to set a low-value threshold, to specify circumstances for the accumulation of amounts and to exclude amounts, as well as regulations generally respecting the operation of the authority to neither pay nor collect low-value amounts.
Division 24 of Part 4 amends the Immigration and Refugee Protection Act to, among other things,
(a) replace references to an opinion provided by the Department of Employment and Social Development, with respect to an application for a work permit, with references to an “assessment”;
(b) authorize the Minister of Citizenship and Immigration or the Minister of Employment and Social Development to publish on a list the name and address of an employer who, among other things, has been convicted of certain offences; and
(c) authorize the Governor in Council to make regulations
(i) regarding the publication and removal of the names and addresses of employers,
(ii) regarding the power to require documents from any individual or entity for inspection in order to verify compliance with regulatory conditions,
(iii) requiring an employer to provide prescribed information in relation to a foreign national’s authorization to work in Canada for the employer,
(iv) governing fees to be paid for rights and privileges in relation to an assessment provided by the Department of Employment and Social Development with respect to an application for a work permit,
(v) governing fees to be paid in respect of the compliance regime that applies to employers in relation to their employment of certain foreign nationals,
(vi) regarding the collection, retention, use, disclosure and disposal of Social Insurance Numbers, and
(vii) regarding the disclosure of information for the purposes of cooperation between the Government of Canada and the government of a province.
Division 25 of Part 4 amends the Judges Act and the Federal Courts Act to implement the Government’s Response to the Report of the Special Advisor on Federal Court Prothonotaries’ Compensation with respect to the salary and benefits of the prothonotaries of the Federal Court.
Division 26 of Part 4 amends the Canadian Payments Act to make changes to the governance structure of the Canadian Payments Association and to add new obligations in respect of accountability, including by
(a) changing the composition of the Board of the Directors of the Association and the procedures for selecting the directors of the Board;
(b) establishing a Member Advisory Council;
(c) expanding the power of the Minister of Finance to issue directives to the Association; and
(d) adding new obligations in respect of the preparation of annual reports and corporate plans.
Division 27 of Part 4 amends the Payment Clearing and Settlement Act to expand and enhance the oversight powers of the Bank of Canada with respect to systems for the clearing and settlement of payment obligations and other financial transactions, so that the Bank is better able to identify risks related to financial market infrastructure and to respond in a timely and proactive manner. It also makes minor consequential amendments to other Acts.
Division 28 of Part 4 enacts the Extractive Sector Transparency Measures Act in order to impose the following obligations on entities that are engaged in the commercial development of oil, gas or minerals for the purpose of implementing Canada’s international commitments in the fight against corruption:
(a) the obligation to report to the responsible Minister certain payments made to payees; and
(b) the obligation to make reported information accessible to the public.
For the purpose of verifying compliance, the Act provides for an inspection regime and gives a power to the responsible Minister to require an entity to provide certain information. Finally, the Act provides for certain offences relating to the obligations under the Act.
Division 29 of Part 4 amends the Jobs and Economic Growth Act to provide that Canadian Nuclear Laboratories Ltd. (CNL) is an agent of Her Majesty in right of Canada, effective as of the date of CNL’s incorporation, and to provide that CNL will cease to be an agent on the day on which Atomic Energy of Canada Limited disposes of CNL’s shares. The Division also amends that Act to provide that the Public Service Superannuation Act will apply for a transitional period of three years to persons who are employees of CNL on that day.
Division 30 of Part 4 repeals a provision of the Economic Action Plan 2013 Act, No. 2 that amended a provision of the Public Service Labour Relations Act. It also amends provisions of the Economic Action Plan 2013 Act, No. 2 that amended the Public Service Employment Act in respect of the staffing complaint process.
It also makes a technical correction to a coordinating amendment in the Economic Action Plan 2013 Act, No. 2.
Division 31 of Part 4 transfers the pensionable service that is to the credit of certain Royal Canadian Mounted Police pension contributors under the Royal Canadian Mounted Police Superannuation Act to the Public Service Superannuation Act and deems those contributors to be Group 1 contributors under the Public Service Superannuation Act. It also amends the Royal Canadian Mounted Police Superannuation Act to repeal provisions relating to members of the Royal Canadian Mounted Police not holding a rank.

Economic Action Plan 2014 Act, No. 2

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I am pleased to ask my Conservative colleague a question.

The Conservatives have been talking about income splitting for months now. They put the measure in this year's budget, even though the former finance minister said that he did not support such a measure because it did not benefit a majority of the population.

Could my colleague explain why the Conservatives came up with a measure that benefits only about 15% of the population?

What is the point of a tax measure that benefits only a small minority of Canadians?

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Mr. Speaker, the member knows, and we all know, that the former of minister of finance said nothing of the kind. What he actually said is that he wanted income splitting, if we were to bring it in, to benefit more families.

With the changes to the income splitting regime that we will be introducing, there would be more Canadian families who benefit from that, and they would be middle-income and low-income Canadian families, precisely the people we are attempting to target.

I can tell members for a fact that, in my personal belief, our former minister of finance, who was a great minister of finance—arguably one of the best ministers of finance this country ever had—would have supported this legislation.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, we know that this is another massive omnibus bill. It is almost 500 pages and 400 clauses and, again, is going in many different directions, so there is much that we could focus on in this bill that is very problematic.

However, one of the things that I want to single out is the clauses that deny access to social assistance for refugee claimants.

It is really perplexing that the Conservatives have, in effect, taken a private member's bill that came under a lot of fire in the media and now put it in this omnibus bill, which would allow the provinces to impose residency requirements for people without permanent status. This is something that would really hurt refugee claimants; certainly, in my community where we do have a lot of refugee claimants who are on very low income.

I want the member to really be transparent and tell us why the government made the decision to take a private member's bill that was getting a lot of criticism and try to hide it in an omnibus bill?

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Mr. Speaker, you would know and the hon. member would know that her question first is wrong, second is disingenuous, and third misrepresents the facts.

Let me explain how this works. According to the requirements that are now in place, the provinces and territories have no choice but to provide social assistance to failed refugee claimants whether they want to or not. If they chose not to supply the social assistance payments, they would have that money clawed back from their social transfers.

What would happen here is that for the first time, the provinces would be responsible for and capable of supplying social assistance if they cared to. If they were to decide that a failed refugee claimant should leave the country, they could actually hold back that social assistance payment.

The point to make here is that no legitimate refugees or claimants would lose their assistance. Only failed refugee claimants who have already gone through the system and have then been denied refugee status would not be provided with social assistance. That would only be the case if the province or territory decided to deny it. Ultimately, the provinces and territories would be responsible for making that decision, and in this case they would not have any of their social transfer clawed back because of it.

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

Mr. Speaker, I am very pleased to speak once again on this budget implementation bill, Bill C-43, on behalf of my city, Toronto, and on behalf of my community, the riding of Parkdale—High Park.

As we meet here in Ottawa, the city that I come from has been under considerable pressure for some time. It is a wonderful city. It is the biggest city in the country. It is one of the most multicultural cities in the world. It has so many strengths that it is just a wonderful place to live. However, I have to say that there are a great many challenges in our city that require action from the federal government. It is everything from the crushing lack of affordable housing to the gridlock in our city streets because of the lack of federal dollars coming in to boost our transit infrastructure.

I was born and raised in the city of Toronto and I remember it having, at one point, one of the best transportation systems in North America, if not the world. It had a great subway system, as well as streetcars and buses. While the population has grown in leaps and bounds and the city is much more sprawling geographically, the transportation system has not grown equally. As a result, public transit is a huge problem no matter where a person lives. A person living in a suburb of the city cannot get from one northern part of the city to another northern part without hours of waiting and sitting on buses, because the subway system has not kept pace. A person living in the centre of the city, where I live, often sees one subway car or streetcar after another go by because they are jam-packed. That is because the population has grown so much in the city, and the transit system has not kept pace. Transit is a huge issue.

I have to say that housing is a massive issue. I meet with people who live in public housing and Toronto Community Housing. Frankly, it would break members' hearts to see the conditions that some people live in. Seniors who worked all of their lives are living in apartments where the oven does not work, the elevator is often out of service, and there is mould on the walls. We see overcrowded apartments. I have seen families of five and six living in a bachelor apartment. We see people living in rental housing that is overpriced and often not well cared for. We have seen loopholes in the rent control system being exploited so that rents can be jacked up, and people are excluded from affordable accommodation as a result.

We have a crushing need for affordable rental housing, but we also have a great many families in the city of Toronto with mortgages. Toronto is not quite as expensive as Vancouver, but boy, it is expensive. The average three-bedroom home in the city core seems to be going for almost $1 million. We see young families with massive mortgages, and if they have a couple of kids, they are paying tens of thousands of dollars in child care fees at the same time—that is, if they can find quality child care.

We also see young people graduating from university with sometimes tens of thousands of dollars of student debt. Often they face a very bleak job market. I will talk about that more in just a minute.

There are many crushing problems, not to mention what I think is the most serious challenge globally, which is climate change. There is the pressing need for this country, which has once again just been called out by Ban Ki-moon of the UN for shirking its responsibilities, to address the pressing need of climate change. Surely to goodness we are all in this together. It is one earth. From space, it is one blue dot. Surely the countries and the leaders of the world can all agree that this is a pressing need that we need to deal with, yet the Conservative government seems to be on a one-track path, which is oil and gas.

We have these wonderful natural resources, but it is to the detriment of our investment in clean energy, energy efficiency, advanced manufacturing, and advanced innovative economic measures to get our economy moving into the 21st century. I raise these issues, but there are many other challenging issues that we face in our city and our country, and the budget implementation act before us does not address any of these issues. It does not deal with the concerns that I hear every day.

Rail safety is an example. During question period, we were debating the pressing need for better rail safety. We have hundreds and hundreds of tank cars carrying hazardous goods and who knows what is rolling through our neighbourhood. The citizens in my community not only do not have the right to know what is in those tank cars, but they also have no right to know if they are protected or if there are effective emergency measures in place. They have no right to know if their safety is being adequately protected by the experts and regulators in the government who are supposed to be doing that job. We saw at Lac-Mégantic they were not doing that job, and many people died.

The bill is yet another of these omnibus budget bills into which Conservatives love to cram all sorts of measures in a very undemocratic, unaccountable process that lacks transparency. There are many measures in the bill that were not introduced in the budget and that they do not want Canadians to even know about. They are counting on people not paying attention to them in a bill with 460 pages and 400 clauses.

However, there are a couple of things I want to highlight.

First, it is an outright attack on some of the vulnerable people in our society, refugee claimants.

There is also the implementation of a job credit that has been panned by experts. It would dip into the EI fund when, in fact, EI should be used to give unemployed workers adequate benefits so that they can keep their heads above water when they are faced with the catastrophe of losing a job. There is nothing in the bill to help the more than 300,000 unemployed Canadians or to help to replace the more than 400,000 good manufacturing jobs that have been lost.

Just today, new job numbers have come out, and in November Canada lost another 10,700 jobs. Most shockingly, 46,000 jobs were lost in the private sector. So much for being good economic managers.

Our economy is not recovering, and youth unemployment is now back up to 13%. We have over 1.2 million unemployed Canadians. What does that mean? It means that poverty is increasing.

Twenty-five years ago, we voted to eliminate child poverty. Well, guess what? One out of every five children is living in poverty in Canada today. The numbers are up from 25 years ago. Four out of ten indigenous kids are living in poverty. This is not only a tragedy for them, but a scar on Canadian society and the Canadian economy that we will have to deal with in the future.

Inequality is rising. The top 10% of Canadians have seen their net worth grow since 2005 by 42%, while those in the bottom 10% saw their net worth shrink by 150%. That is growing inequality. We are talking about joblessness and poverty, and the Conservatives are turning their backs, rewarding their friends, focusing only on the oil and gas sector, and to heck with the rest of the economy.

We are committed to a national child care program. We want to make sure that parents have a real choice in having quality, affordable, accessible child care. We want to make sure that we are defending our health care system and that we are investing in medicare, which is a program that was created and defended by the NDP. We are going to continue to defend health care. We also want to invest in transit. We want to get the job done, both on the economy and on the environment. That is what New Democrats will do in 2015.

We wish we could work with the government to get the job done now. We invite the government to join with us. We can make a difference for Canada now. We do not have to wait.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to pick up on the member's comments about the thousands of jobs that have been lost. This month, we had a net loss in excess of 10,000 jobs. We should be concerned about that.

She made reference to the government's business tax break on EI. The Liberal Party has put forward a proposal that would see employers being given a break through EI reductions for two years as an encouragement to hire. Outside stakeholders have applauded the Liberal proposal.

I know that the 2011 NDP platform stated that employers would receive a one-year rebate on employer contributions for the Canada pension plan and employment insurance premiums for each new employee hired. That is very close to exactly what the Liberal Party has put forward.

Does the member believe and support Jack Layton's plan from 2011, which has been taken in good part and expanded upon in the Liberal Party's proposal?

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

Mr. Speaker, it is flattering that the Liberal Party has been attracted to the measures the NDP is proposing. We did put forward a proposal to give a tax credit to small businesses to hire new people, especially youth. We think that is a positive measure. We would encourage the government to pick up on that.

Where we disagree with our Liberal colleagues is that we do not want to tap into the EI fund to pay employers to hire people. That is the difference. They may be trying to get to the same place, but we do not agree with how they are doing it.

The EI fund is paid for by employers and workers. Frankly, in the city of Toronto right now, only about 20% of unemployed workers are actually getting EI benefits. We want the money in the EI fund used to give unemployed workers the benefits they have paid for and are entitled to help them transition to a new job, rather than have the money given back to employers. We do not think that is a useful thing.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I must say, you look very fine in the chair. You make a very good Speaker. It is very nice to see you there.

I listened very carefully to my colleague from Parkdale—High Park. She describes so similarly what I also face in Vancouver in terms of high housing costs, transit issues, climate change, and a dense urban environment where people are really struggling to make ends meet.

One of the things that is so disappointing is that there has not been a commitment by the federal government to a national housing plan. We have seen sporadic programs that come and go. Really, when we look at the scope of what is needed for affordable housing in this country, it is huge. It is actually a very solid investment in terms of jobs in energy retrofits for homes, for example. I wonder if I could ask the member if the need for affordable housing is a critical need in her city as well.

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

Mr. Speaker, it is a pressing need. If we want to create jobs in this country, why not go to work and do an energy retrofit of all of the high-rises in cities across the country? In Toronto, we have more high-rise apartments than any other city in the country. A lot of them were built in the 1960s and 1970s. They are not very energy efficient. Imagine the jobs that could be created.

Jack Layton had a system whereby we could invest in this energy efficiency and pay for it over time from the money we saved from reduced energy costs.

I just want to say one other thing about the pressing need for housing, because it really does take the federal government's involvement. We had a horrible tragedy in our city in the last week. A young mother and her kids were killed and subsequently her husband died. It seems that she went from a shelter, where she was trying to escape violence, to a private apartment. She could not afford it. There was no transition housing. She had to go back to that dangerous situation. Now she and her kids are dead. If that is not a crying argument for housing, I do not know what is.

[Scott Armstrong, Conservative, Parliamentary Secretary to the Minister of Employment and Social Development]

Mr. Speaker, I appreciate the opportunity to speak today to Bill C-43, an act to implement the budget. As we know, the focus of our government is jobs, growth, and long-term prosperity, and there are many measures within this bill that support that focus, that priority, of the Government of Canada.

I would like to start by talking about where we were back in 2008 when the biggest recession since the Great Depression struck our nation and many nations around the world. In fact, 62 million people around the globe lost their jobs during that recession due to global economic instability. However, since then, Canada has fared far better than most countries in the world in terms of job creation and recovery. In fact, since the pit of the economic recession in July 2009, Canada has created 1.2 million net new jobs, with employment all across this country. This has allowed our government to move toward a balanced budget and deliver on many promises made in the 2011 campaign.

The federal tax burden is now at its lowest in 50 years. People are paying less in taxes than they did in part of the Diefenbaker era. Things are going well in Canada. We have more employment, more growth, and larger projected growth than any other country in the G7. The IMF and KPMG both predict that for this year and next year we are going to have very successful job growth, job creation, and overall economic growth in this country. Canada is on the verge of a great economic and prosperous time, and we are going to keep putting measures in place so the people of this country can benefit from it.

What has allowed us to do this? What has allowed Canada to do so much better than many other nations emerging from a global economic recession? I believe it was our commitment as a government to balance the books and then use surplus spending to invest in tax cuts and to support jobs and economic growth. This was a commitment we all made on this side of the House as we went door to door in the 2011 election. We committed to first balance the budget and then to reinvest in Canadians by lowering taxes, supporting young families, and reinvesting in jobs and growth.

There are some members of the House who believe balancing the budget will happen by itself and that we do not need to focus on that, but it is hugely important. The only way to balance a budget, whether it is a household budget, a municipal budget, a provincial budget, or a federal budget, is to make it is a huge priority and put a plan in place to reach that balanced budget in a targeted amount of time. That is what this government did following the 2011 election. We kept our commitment to the people of Canada by putting the economic action plan in place, with the goal of balancing the budget within the mandate of this government, which we have.

It is not easy, and it does not just happen by itself. To do it, there are really three choices a government can make to balance the budget. The first choice, and I would argue the easy way to do it, is simply to raise taxes. We have seen governments and previous administrations, both provincially and federally, try to balance budgets on the backs of Canadians by raising taxes: raising business taxes, raising income taxes, raising fees. That, I would argue, is the easy way.

We saw the NDP government in Nova Scotia try to do this a few years back. It raised taxes to try to balance the budget. This government gave the Canadian people a cut in their GST sales tax, or HST in some provinces, like mine, in Nova Scotia. When we cut the GST federally from 7% to 6% to 5%, almost every Canadian was able to benefit from that tax reduction, except in my province of Nova Scotia, where the provincial government came right in behind and almost immediately raised the sales tax by 2%.

While in New Brunswick, right next door to my riding, people were paying 13% sales tax in the combined HST, in Nova Scotia we were paying 15%. A border riding like mine saw jobs flowing across the border. Gas stations were shutting down, because between that and the increased fuel taxes in Nova Scotia, people could pay far less a litre in New Brunswick than they could in Nova Scotia. While everyone else was benefiting from this cut in the sales tax, the people in my province were not, because the provincial government decided to do that in an effort, it argued, to balance the budget, which, in fact, never really happened. That is the easy way to try to balance the budget: by simply raising taxes.

The second way a federal government can try to cut taxes is by eliminating, cutting, or reducing transfers to the provinces. Transfers to the provinces pay for education, put teachers in classrooms, pay for educational assistants for special education students, and provide other support services in every school.

Those transfers pay for our health care system so seniors across this country can enjoy the health care they deserve in an equitable health care system, from one end of the country to the other. That is why we have these transfers. It is so the provinces can deliver their constitutionally designated role of delivering effective, equitable health care from Newfoundland all the way to British Columbia and to the north. That is what Canada is all about. We are all in this together. That is why those transfers are so valuable.

The Liberal government in the nineties chose to balance the budget, coming out of an economic recession, on the backs of the provinces, on the backs of our seniors, and on the backs of our children by reducing those valuable transfers to the provinces. Significantly cutting those transfers, I believe, destabilized both the education system and the health care system in many provinces across this country. It was an effort, arguably, to balance the budget.

The third way a federal government can try to balance a budget is not by raising taxes on the people and cutting the valuable transfers to the provinces that need those dollars so desperately to deliver those effective services I talked about. The third way is to look at how the government spends money. We can look at ourselves, look across federal departments to see what we can do to save money for the Canadian taxpayer so we can get the budget balanced and start making targeted investments for the future of all Canadians.

In 2011, that is what we promised to do, and that is a promise we have kept. We have delivered on that promise, and now we have the budget balanced and are moving forward.

Every department across the board had to look at reductions. With targeted savings, usually in back-office services, making sure that we protected front-line services, particularly in the regions of this country, we were able to slowly move the budget to balance. Now, on schedule, we have a balanced budget in this country due to excellent fiscal management by the Prime Minister, former finance minister Flaherty, and the present Minister of Finance.

This government has moved Canada to a balanced budget, and that gives the government the financial flexibility to deliver the other promises we made when we all went door to door during the 2011 election. I am speaking of things like income splitting for families, the family tax cut, and an increased UCCB. Support for young families across this country is a target of this government to ensure that the future of this country is protected.

By raising the universal child care benefit, we are supporting the next generation of Canadians in getting the child care they need. We are supporting the next generation of Canadians in getting the education they need. We are now focusing on changes to our education system, changes funded by the federal government through our post-secondary support for apprenticeships, a $100-million program for interest-free loans for apprentices across this country.

Budget 2014 supports our young people and our young families and is delivered under a balanced budget format.

Now that the budget is balanced and we are moving forward and are keeping those commitments to Canadian families, what is the next step for Canada? Where can we go? The future of this country is bright. We have worked so hard to come so far from the great recession of 2008. The strong fiscal management of this government and this party, led by our Prime Minister and the Minister of Finance, will support the bright and prosperous future of this country.

I hope the opposition will stand in support of this legislation on Monday night, because it is in the best interest of Canadians from coast to coast to coast.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I heard my colleague talk about the historic health transfer to the provinces from the federal government. As the health critic for the NDP, I have to say that the only things historic about it are that, one, it was done unilaterally by the federal government; two, in the long run it would shortchange the provinces by about $36 billion, and this has been shown both by the premiers and the parliamentary budget office; and, three, it has signalled a complete disengagement by the federal government on health care.

These transfers were always a matter of negotiation. There were always agreed-to outcomes. We saw the health accord from 2004 expire this year, on March 31, and nothing has replaced it. We have a vacuum in federal leadership.

I am very proud of the work that the NDP has done to put forward a plan for renewing and strengthening our public health care system, but I see nothing from the Conservative government. In fact, I see us going backward.

I wonder if the member could comment about whether he has taken note that the provinces are very unhappy with the status of the federal government when it comes to health care.

[Scott Armstrong, Conservative, Cumberland—Colchester—Musquodoboit Valley, NS]

Mr. Speaker, what the provinces can count on is a continued increase in the amount of money they will receive from the federal government in terms of our health care transfers. In my own province of Nova Scotia, this year, for the first time, transfers from the federal government to the province eclipsed $3 billion.

Let me put that in perspective. The entire revenue of the Government of Nova Scotia is $9 billion. A full third of that comes directly to the provincial government in transfers. We have actually increased the amount of transfers in health again and again. This will continue because we are going to set a floor of an over 3% increase in transfers from the federal government to the provinces each year, and most years it is going to be far more than that. This is more of an increase in the amount of money that the federal government is transferring to the provinces than the provinces are increasing on spending in health care themselves.

If any provinces are complaining about health care transfers, they should take a look at their books. They can count on increases to health care transfers from the federal government from now in perpetuity.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, there is some truth to what the member has just said. The only thing he is really missing is that he was very critical of the Liberals during the 1990s. We also need to recognize that it was Paul Martin, the former Liberal prime minister, who actually put in the health care accord. That is the reason we are getting record highs in terms of health care transfers. It is not because of the current Conservative government.

When the member talked about the budgets and the balancing and the options, what he did not tell viewers or the House was that when the current government took office, it had a surplus budget into the billions of dollars. The government, even in a time in which there was no recession, converted that surplus into a major deficit of billions of dollars. Since then, the government has not had a balanced budget.

My question for the member is this. Will he confirm that if a balanced budget in 2015 materializes, the current government will be the first Conservative government to do that?

[Scott Armstrong, Conservative, Cumberland—Colchester—Musquodoboit Valley, NS]

Mr. Speaker, what is true is that Canada would be the first country in the G7 to emerge from the recession with a balanced budget since the great recession of 2008. That is what is true.

When the member talks about what the Liberals did under Paul Martin, he should remember that it had to be in response to what the Liberals did in the 1990s, when they decimated the health care system and the education system by slashing billions of dollars of transfers to the provinces. We all remember Rae days. We all remember hospitals being closed. We remember clinics being closed. We remember nurses being laid off and having to go to the United States.

We all remember the damage that did to our health care system, destabilizing the health care for our seniors and our young families. We did not have the infrastructure we needed to enjoy this recovery. It is only now that I believe the health care system is starting to recover, because of the support of this Minister of Finance, and this Prime Minister, and this government.

[Jeff Watson, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, obviously in Ontario, notwithstanding the fact that we have delivered $3,400 for an average family in tax savings, because the Liberal government campaigned hard for it, supported by the federal Liberal leader, the cost of electricity is going up, taxes are going up, and jobs are going down.

I wonder if the member can comment on the family tax cut and what the universal child care benefit would mean, particularly for single-parent families, for consumers, for the economy, and for jobs.