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

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

Mr. Speaker, I thank my Liberal colleague for that question, and he is quite right. I did not have enough time to address all the problems in the bill, but certainly the collapsing of these two bodies dealing with the Arctic is problematic.

The Conservative government has a history of muzzling scientists and not allowing independent thought and independent action by government scientists. There is real concern, given the rapid environmental and development changes that are taking place in the Arctic.

Will there really be independence for scientists? Will we get the information we need to make proper decisions? Because of the centralization of power in the hands of ministers that the government is well known for, there are real concerns, which I think may well be justified.

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

Mr. Speaker, I appreciate the member's framing of what is in the bill. She mentioned a few items that are supportable, like the DNA database for missing and murdered people and a couple of smaller items, such as cracking down on pay to pay, but not all pay to pay, because the banks are let off the hook yet again.

There are a number of things in the bill that are just outright bad ideas, such as the employment insurance scheme, which is going to cost more than half a billion dollars to create so few jobs. It is more than half a million dollars per job. This is an outrageous offence to those who pay into the employment insurance program, which is every working Canadian and employer.

My question for my colleague is on the third phase of things that were not in the budget, the opportunities missed. Manufacturing is of great concern to those living in Toronto and southwestern and southeastern Ontario, who have suffered such great damage over the last number of years. She mentioned 400,000 lost manufacturing jobs, almost 700,000 lost in a decade. This is a failed opportunity to bring forward some kind of comprehensive strategy.

People are looking for proposals. What kind of ideas do we need to see that would help those value-added jobs, good-paying jobs, that have helped Canadian families for so many generations?

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

Mr. Speaker, I thank my colleague from Skeena—Bulkley Valley for his pertinent question, because we see across the country far too many of what I would call precarious jobs: part-time jobs, temporary jobs, low-wage jobs, and jobs with no benefits. There is no hope associated with those jobs. I think of young people coming into the job market today who are sometimes carrying thousands of dollars of debt. They cannot afford to get a home or start a family, because they cannot get a decent job.

In most developed countries, governments prize their manufacturing sector. They defend it and fight for it. They work hard to make sure they have those jobs, because they are high tech jobs, value-added jobs. It is where they get the great spinoffs. For example, in the auto industry, there are seven jobs for every auto assembly job.

Under the Conservative government and the previous Liberal government our country has fallen from one of the top four auto-producing countries to number 10. Australia lost its auto industry altogether.

We do not see any plan. There is no auto strategy. There is no manufacturing strategy. We do not see anything except giving more money back to companies and hoping they have a nice day.

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, it is a pleasure to rise in the House today to speak in support of the budget implementation act and to talk about our economic action plan 2014.

I am eager to support the budget implementation act today because it is an example of the commitment and focus we have had on the budget benchmarks and priorities that our government set earlier this year.

Those priorities include returning to a balanced budget in 2015, creating jobs, economic growth, supporting small and medium-sized businesses, and ensuring that hard-working Canadian families have more of their own dollars in their pockets. In fact, the government's commitment to tax relief meant savings of about $3,400 for a typical Canadian family of four in 2014.

We reduced the GST from 7% to 5%. We introduced income splitting for seniors, tax-free savings accounts, and expanded on successful programs, such as the child fitness tax credit and the universal child care benefit.

However, what is most exciting about our government's economic action plan is that we are able to offer these critical programs that Canadians have said they want and support, but at the same time pay down our debt, balance our budget, and make unprecedented investment into infrastructure and small business.

We have been blessed as a result of the decisions that our government has made, and as a result Canada is the envy of the world. We have one of the strongest job growth rates of any G7 country, with nearly 1.2 million net new jobs since the end of the recession in 2009. In fact, Bloomberg ranked Canada as one of the best places to do business in the world, and both the International Monetary Fund and the Organisation for Economic Co-operation and Development are projecting that Canada will have among the most dynamic growth of any country in the G7 over the years to come.

This success does not just happen. It takes hard work, leadership, sound financial planning, and, perhaps most importantly, decisive and timely decision-making.

We have shown good financial planning and we have shown good leadership. We reduced the small business tax rate from 12% to 11%, and we lowered the general business tax rate from 21% to 15%. We have expanded our global markets by reaching crucial free trade agreements with the European Union, as well as the Canada free trade agreement with Korea, which was just given third reading on Wednesday.

The budget implementation act will continue to build on the successes that our government has achieved through our economic action plan, and that is important. The global economy remains fragile. We are not immune to the economic challenges around the globe and outside of our borders. Therefore, it is imperative that we continue to focus on building a strong, vibrant, and robust economy here in Canada.

A healthy economy starts at home. I am proud to stand in support of the bill today because I know it would benefit the families, the small businesses, and the communities in my southern Alberta riding of Macleod.

Alberta is built on dynamic entrepreneurs, farmers, ranchers, and business owners, who are willing to take risks to find success. We understand that we must support the economic engine that is driving our country right now. To do this, we must continue to support small business, the economic backbone of our country.

Our government is supporting small businesses through programs such as the recently introduced small business tax credit, which I believe is a vital piece of the legislation we are talking about today. The credit would lower small business payroll taxes by 15% over the next two years. That would be a savings of approximately $550 million for small businesses over the span of that two years. This initiative has been called a big win for small business by groups across the country, including the Canadian Federation of Independent Business.

The introduction of this tax credit will build upon our government's strong support of small businesses since 2006. For example, we froze EI premiums to provide certainty and flexibility for small businesses. We have cut red tape by eliminating 800,000 payroll deduction remittances to the CRA each year for more than 50,000 small businesses. The results are clear: a typical small business in Canada is seeing savings of about $28,000 a year. In total, since 2006, small businesses have seen their taxes reduced by 34%. That is substantial

Fittingly we celebrated small business week earlier this month, and, in speaking with business owners in my riding, their message was clear: we must continue to reduce their tax load and the red tape and bureaucracy that they face. It is important to do so because it shows our support for small business. The better off that our small businesses are, the better off the Canadian economy is as well.

A healthy economy is vital, but so too are healthy communities. Time and time again, studies have shown that being active improves focus in the classroom, reduces crime, and aids in the development of vital social skills for the children in our communities. Sports contribute to healthy communities, and I believe being active should be a habit that is encouraged for all of us here today, but particularly children.

Knowing this, our government introduced the children's fitness tax credit in budget 2006, which provided a non-refundable tax credit of up to $500 for children under 16 years of age to register in sports and activities. I distinctly remember when this program was introduced and how important it was to my family. As a father of three, I know how expensive it is to pay for registration fees in hockey, volleyball, and dance, and to purchase equipment. I know how difficult it is on families to afford to keep their kids healthy and active. This tax credit provided a financial means to ensure that all of my children could participate in the activities they love. I want to ensure that other Canadian families share the same benefit that my wife and I enjoyed when our children were younger.

Therefore, I was pleased when the Prime Minister not only committed to continue this program, but announced that our government is doubling the children's fitness tax credit from $500 to $1,000 and making it refundable. That means it will increase the benefits for low-income families who want to access this tax credit. This will help children across Canada to lead healthy and active lifestyles, and teach them the life skills that will not only benefit them and their families, but will also be of long-term benefit to the communities in which they live.

My colleagues in the House today understand the devastation that my riding in southern Alberta went through in June 2013. Albertans are resilient. We will come back stronger than ever. However, it is critical that we protect these communities long term, to ensure that we never have to go through a disaster of that magnitude again. Therefore, I was extremely pleased to see that the economic action plan included $200 million over the next five years to establish a national disaster mitigation program, as well as $40 million over that five years for disaster mitigation in first nations communities. This was one of the worst disasters in Canadian history. There were hundreds of people who lost their homes, and key infrastructure was destroyed when the waters overwhelmed our communities in southern Alberta.

The $200-million natural disaster mitigation program will provide vital funding to help these communities prepare for national disasters, prepare emergency readiness plans, and invest in innovative technology and infrastructure to protect these communities. It will give the residents of southern Alberta a renewed confidence, and will certainly play a key role in the recovery process.

This program will not only help Albertans, as these dollars will also be available across the country. I know my colleagues from Manitoba and Quebec have faced similar flooding issues over the years and need our support as well. The mitigation funding is a critical investment from our federal government and will protect communities and infrastructure across Canada.

Macleod has a rich agricultural history, and the family farm continues to be a backbone in my riding as well as many others across Canada. The economic action plan includes a number of measures to support Canada's farmers, including an extension of the tax deferral program for livestock producers when they undergo drought or overland flooding. We have always offered farmers a tax deferral for up to 12 months if they have to liquidate their herds. However, rather than having to pay it off as income tax, they will have the cash on hand so they can purchase replacement stock, which is vital to the health of family farms.

In rural Alberta, access to high-speed Internet can be a challenge. If we want our small business owners, farmers, ranchers, and rural communities to succeed, they must be able to market their goods and services worldwide and online. Therefore, the connecting Canadians program, which commits more than $300 million to expanding broadband Internet services in rural communities across Canada, is a vital infrastructure initiative. This will provide residents in southwest Alberta with the keys to the global marketplace and will re-energize these economies and innovative communities, which are eager to expand their horizons.

The initiatives that this government has implemented in this budget will ensure Canada's economy remains vibrant and robust at a time of global uncertainty. I encourage all members of this House to support the budget implementation act.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, in some ways, I appreciated my Conservative colleague's speech. I would like to ask him a very simple question, since he brought up the children's fitness tax credit. I encourage the idea of children participating in sports. I have children, and I am very happy that they can play sports. However, it needs to be made clear that this is a non-refundable tax credit. It will help only the families who already have the means to sign their children up for sports.

I would like to know what his party or the member himself is proposing for people who do not earn enough money to pay taxes and therefore do not have access to this non-refundable tax credit. It is available only to some Canadians. However, for all the other families that would like to see their children do sports—

[Pierre Poilievre]

It is refundable now.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Why, hello, sir.

Mr. Speaker, since it is a non-refundable tax credit, how will it help families? I would like to hear his thoughts.

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, I appreciate my colleague's question, but obviously he has not read the economic action plan or the budget implementation act that we are talking about today. The new children's fitness tax credit is refundable. It is $1,000, and low-income families are able to access that tax credit. It is refundable, and that is why I support this so passionately.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, because we are debating an omnibus bill in which there are things that are not related to the budget, I have to ask the following question.

Budget 2014 says there would be some legislation to implement certain treaties, and in particular there is a piece that amends the Industrial Design Act. There is a part of this legislation we are debating today that says with respect to the Industrial Design Act,“A design is registerable if ... the design is not contrary to public morality or order.”

My question for the member is, are we implementing a treaty here, or is the government trying to say something about public morality and order?

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, I appreciate the question from my hon. colleague. I think he understands that this budget implementation act will focus on the economy, promote jobs, and be there to help young families and families across the country.

If he reads that, he will see that in there.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, this week we learned the sad fact that 20% of children in Canada live below the poverty line.

I looked closely, but I did not see anything in this budget that will change that. The government supposedly has billions of dollars to give and is handing it to the rich, so why did it not simply raise the tax-exempt threshold for low-income individuals?

It is a very simple solution. That is all the government had to do to drastically reduce the number of poor children. Why did it not do that?

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, if the hon. member has an opportunity to look through the budget implementation act that we are talking about today, and the economic action plan, there are a number of programs and initiatives in there to help low-income families, to ensure they have the means and capabilities to pay their bills, and to ensure their children have the necessities of life, whether we are talking about increasing flexibility and access to employment insurance, providing more health care products and services, or expanding tax relief under the municipal expense tax credit.

There are a lot of opportunities and options in this budget, and I think it is worthwhile for my neighbour to stand up and support this bill. It will support Canadian families, and that is what we are here to do today.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is a pleasure to rise today to share a few thoughts and express some concerns I have with regard to the general direction the Conservative government is taking Canada. I have a number of concerns.

First, when I listen to many Conservatives speak about the budget, I cannot help but notice that they talk a lot about the economic action plan. Whenever I hear the economic action plan being referred to, the first thing I think of are the hundred of millions of tax dollars being used to advertise the so-called action plan. If we look at the baseline numbers of the government's economic track record, nothing could be further from the truth of an economic action plan.

One thought I would like to share with members is the fact that the government spends a great deal of tax dollars trying to convince Canadians that it is doing a good job. I suggest that money could be far better utilized in supporting a wide spectrum of programs that are of critical importance.

I want to talk about the government's resistance to good ideas.

Back in September, the Conservatives came up with the small business job credit idea to try to get small businesses to hire more people. The government talked about the potential of how it might be able to generate 10,000-plus jobs at a significant cost. The leader of the Liberal Party made an announcement about the EI premium exemptions for new hires. This program would create tenfold the types of jobs the government's initiative hoped to create. In fact, the government initiative, in a bizarre way, would be a disincentive for small businesses to hire and might ultimately lead to some small businesses having to let employees go.

The Conservative plan was questionable at best, but that is not the case with regard to what the leader of Liberal Party was espousing, a plan that would have the potential to generate tens of thousands of jobs all across our land. It would take advantage of the greatest potential for growth in Canada, and that is small business.

We have emphasized how important it is that government policy start focusing more on the middle class. The middle class has not done well under the Conservative government over the last half dozen years. We are trying to get the government to recognize that fact, to start making policy decisions that are going to allow the middle class to do better, to prosper and have more hope going into the future.

The Liberal Party is committed to acting on this. We believe in the middle class and if we want the Canadian economy to do well, we have to start to focus more attention on that. That is one of the reasons we shared ideas with the government and encouraged it to adopt the EI premium exemption for all new hires that small businesses and others would engage in. Ultimately, it would lead to a great deal more jobs being created.

The Liberal Party has talked a great deal about the importance of infrastructure. The government says that it is investing record amounts in infrastructure. When it says that, what it is really saying to Canadians is that it has a plan where it will spend billions of dollars in infrastructure, but what it does not to Canadians is that plan does not kick in until two or three years from now. The infrastructure is needed today, but that does not necessarily fit the political agenda.

Come springtime, the Prime Minister wants to say that the Conservatives will spend $100 million here, $50 million there on infrastructure. He want to make these commitments in the 2015-16 budget, as opposed to doing it when it is really necessary. It should have been brought into this budget.

We have municipal elections. Toronto has talked about the importance of infrastructure dollars and how badly it is needed. The successful mayoral candidate in Winnipeg, Mr. Bowman, has said that infrastructure is the number one issue. We need infrastructure dollars.

However, instead of trying to deal with the issue that Canadians need addressed, not only in this budget but even in the previous budgets, the Prime Minister 's objective is to put a hold on projects, not spend money and wait until the election year before committing to spend this money.

If we can learn anything by previous expenditure promises by the government, all we need is to reflect upon the current budget. We have passed budgets that have allowed the government to deliver on projects, but it does not spend the money, so the money lapses. On the one hand, the government gets to say that it will spend millions of dollars on this or that, but when it comes down to the actual reporting, we find out that it has not spent that money.

Infrastructure is important because it generates opportunities, such as opportunities for businesses to look at and expand upon exportation, which generates literally thousands of jobs. It contributes to valuable GDP increases, such as dealing with the real issues of potholes in the streets. These are the types of things which we believe are important, and the government has missed the mark by not investing in Canada today.

I talk a lot about health care. I know my constituents of Winnipeg North. I often canvas their opinions through petitions and questionnaires. They have emphasized how important health care is to our country. They want strong federal leadership.

We saw that when Jean Chrétien got rid of the tax point shift in the favour of direct cash, which saved indefinite financial contributions going from Ottawa to the provinces. The provinces need the cash to sustain their health care systems, but they want us to do more than that. They want to see a stronger leadership role coming from Ottawa. Paul Martin brought in the health accord 10 years ago. That accord expired this year.

Every time the Minister of Health and the government talk about record dollars going into health care, it has absolutely nothing to do with them. It is 100% because of Paul Martin and the health care accord that was signed 10 years ago. The Minister of Health has done nothing to protect health care going forward. Canadians are concerned about that.

I challenge the Minister of Health. Where is the new health care accord? Where is the federal commitment going toward health care?

The government has been found wanting on the important issues, whether it is the infrastructure, or health care or the unemployed. We challenge the government to step up to the plate and start to address the needs of Canadians.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, that was interesting at the least. It is important to understand that infrastructure generates economic activity and that is exactly why, since forming government in 2006, this government has invested more money in infrastructure spending than any other government in the history of our country. We are proud of that, and we understand the value of investing in infrastructure. That is why we are committed to investing even more.

However, we will not invest this money on the Liberal schedule, because they have shown very clearly in the past that they do not have a schedule that makes sense. We will be investing it on our schedule because it does make sense and it is going to go directly to infrastructure that is badly needed in our country. We understand that, and we are going to do it.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member says the Conservatives are not going to invest it on the Liberal schedule. The Liberal schedule is the Canadian schedule, and that is when the need is there. The need is there today. That is not the Liberal schedule, that is the reality.

The government should have been investing in infrastructure today. The Conservatives actually cut back 90% in terms of expenditures going into infrastructure for this year. That is, as the member has pointed out, because they want to base their expenditures on the Conservative schedule. The Conservative schedule deals strictly with political re-election in 2015. That is their schedule. We are suggesting they have missed the mark.

When he talks about the economic activity, we talk about the freer trade agreements signed with Korea, the European Union and so forth. If we had a better, healthier infrastructure, we would even be able to do that much more in terms of exportation.

Why do we have to wait for the election year for that to take place? Cities are demanding and need the infrastructure dollars today. They do not have to wait until the next federal election. The Conservative Party has the wrong agenda. The Liberal Party is challenging the Conservatives to do what Canadians want, and they want the money now.