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 have the honour to speak on behalf of the people of Sherbrooke, the beautiful riding that I have proudly represented for three years, with respect to Bill C-43, the second budget implementation act. It is another omnibus bill, and it is not called that for nothing, as it contains 460 pages and 400 clauses. I will therefore not be able to address every measure and its effect on the economy.

What is deplorable is that the measures sometimes have nothing to do with the economy. Everyone is in agreement on that point. Even the minister agrees that most of his budget implementation bill has nothing to do with the budget. I do not know why these measures were included in a budget implementation bill. There are several possible theories, but the most likely is that the Conservatives are looking to hide things.

When something is hidden among 460 other clauses, it becomes difficult for the average Canadian who obtains information through the media and the Debates of the House of Commons to know everything that is in the bill.

Therefore, although we openly support some of the measures, we are opposed to the bill as a whole, since the majority of the measures are detrimental and the bill is not the right way to go. We are also opposed to the way it was drafted. It is a repeat of many previous budget implementation bills. We have grown accustomed to Conservative government omnibus bills that contain numerous items. It is difficult to summarize them in 10 minutes, as I will attempt to do.

I wanted to mention the problems caused by this process that we have seen in the past and we still see today. I hope that they will have ended by the next parliamentary session, when we come back in the winter of 2015.

This bill is proof that the Conservatives could not care less about Parliament and parliamentarians' input in the legislative process. The Conservative government is using its majority to enact things without consulting Parliament properly. There is a pretense of discussions on amendments in committee, but we know very well that the only goal of the majority Conservative government is to enact as many things as quickly as possible, without debate, by limiting parliamentarians' input in bills as much as possible.

Since these are occasionally technical bills, the expertise on each side of the House of Commons could offer improvements, because the bills introduced by the government are rarely perfect. We could seek a consensus. However, we are not accustomed to a consensus with the Conservatives. That is not the way they govern our country, unfortunately, even if it could be much more effective and beneficial and increase Canadians' confidence in our institutions.

What is the Conservatives’ economic record since taking office? I will try to dispel the myth that the Conservatives have been trying to make us believe in for years. They claim to be building a strong economy, but evidence suggests otherwise.

Today, our trade deficit has reached more than $60 billion. This is a negative trade balance of more than $60 billion. However, when the Conservatives came to power, the trade surplus was $26 billion. Currently, the trade deficit is over $60 billion.

I am particularly concerned about the issue of youth unemployment, which is currently at 13.4%, more than double the average national rate. Something is obviously happening in this area, and measures must be taken to try and solve the problem. Clearly, the Conservatives have not addressed this problem in the budget.

There are currently 300,000 additional unemployed Canadians; 375,000 jobs were lost in the manufacturing sector. This was a very active and vibrant sector in Sherbrooke and in the Eastern Townships. However, unfortunately, it has suffered the effects of Conservative mismanagement: 375,000 manufacturing jobs have been lost. This sector offers high-paying jobs and good working conditions. The lack of leadership from the current government on the employment file has likely caused great difficulties and serious challenges for the sector.

It should be noted that the sector faces serious challenges. Unfortunately, the Conservative government has only proposed small measures and is not providing the much-needed help the sector needs. We all agree that, because of today's globalization, our manufacturing sector is in direct competition with emerging countries that have very different conditions within their domestic market, which means that our businesses are competing with businesses from those countries.

Currently, it is important to support these businesses, and to support them in terms of innovation, as innovation plays a key role in helping the manufacturing sector and enabling it to remain competitive with businesses from emerging countries. This means that unique and highly innovative technologies are required to make it possible to compete with these countries, and to create quality jobs with quality work conditions. This is something that is very important for the riding of Sherbrooke.

There are other things about the budget that I want to mention. I will try to sum up and let the people of Sherbrooke know what is in it.

There are changes affecting access to social assistance for refugee claimants. That is an important issue for Sherbrooke. I am very involved in several organizations that support and help newcomers to Canada and refugees. A significant proportion of the immigrant and refugee population is in Sherbrooke. Every year, over half of all newcomers are refugees.

That means they come from troubled countries. Sometimes, these people are escaping dangerous situations in their home countries, even threats to their lives. These people seek refuge in Canada. There is a reason it is called refugee status. Unfortunately, the Conservatives are attacking our refugees, and not for the first time. I think that is utterly deplorable. Many of these people are among society's most vulnerable. We should be doing more to support these people when they come to Canada, to help them manage and to provide financial help.

However, this bill includes a measure that was proposed by a Conservative backbencher: allowing the provinces to impose residency requirements on individuals with no permanent status and to deny basic social assistance to refugee claimants and people who do not have permanent resident status in Canada. This means that if a refugee comes to Sherbrooke, the provincial government could, based on certain criteria, deny that person access to social assistance.

Basically, people might come here without a penny to their names and have to adapt to life in Canada. They might come here in the winter. Just this week, newcomers arrived from Africa. This is their first time in a country as cold as Canada.

It was 10 degrees below zero, and they had nothing. It is very important to support them. Conflicts are ravaging their home countries. We must absolutely help them when they arrive in Canada and not abandon them, as the Conservative government has done time and time again, and as it is doing once again with Bill C-43.

My time is up, so I would be pleased to answer any questions my colleagues might have.

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I was particularly moved by the colleague's comments about refugees. I have been involved with refugees in my riding for a long time, and the Conservatives are trying to somehow cast aspersions on those who are seeking a safe place for their families when they come to Canada.

Has the member had the same problem, and not just the attempt by the Conservatives to deny access to social assistance? My riding has lost a lot of the training programs that were directed at refugees because of the federal government's insistence on cutbacks in these areas and underspending its budgets. Therefore, more and more people who have arrived here and are trying to get themselves established are having trouble getting access to the language and skills training courses they need to become productive members of Canadian society, which of course is their goal.

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

Mr. Speaker, I thank my colleague for his intervention and his comments. That is indeed a common problem in many areas and many ridings. In my own riding of Sherbrooke, the Conservatives have made cuts that have affected many areas. A number of organizations that support refugees and receive funding from many sources have criticized the fact that the federal government eliminated more and more programs, even though they are essential and have proven to be effective. Those projects have unfortunately not been able to continue.

In my riding, the Conservatives have managed to affect immigrants in many other ways. Citizenship and Immigration Canada closed its Sherbrooke office completely and without any explanation. For some time after that, people had to travel to Montreal to take their citizenship test. We are talking about people who often did not have the means to travel to Montreal and stay there for a couple of days. Then they had to go back later in order to swear an oath. That was the case for two years. This situation is starting to change and a few citizenship ceremonies have taken place in Sherbrooke this year.

These numerous examples demonstrate how little support the Conservatives have been giving to immigrants—and they give even less to refugees. It is unfortunate. I hope that in 2015, we will have a government that makes this a priority immediately, in October 2015.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, unfortunately we have far too short a day, just one day, to debate this bill. I am nonetheless very proud of the official opposition members, especially the hon. member for Rimouski-Neigette—Témiscouata—Les Basques, who told us that no analysis had been done of the fiscal consequences of this bill. There is also the hon. member for Pontiac, who asked who this budget is for, and the hon. member for Sherbrooke, who targeted some measures. That is what it takes to draft a coherent and effective budget. Unfortunately, that does not seem to be what we are getting with the bill before us.

My question for my colleague from Sherbrooke is quite simple: what is missing from this budget? What would he have liked to see for his riding and what issues would he have liked this budget to address?

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

Mr. Speaker, that is a very good question. The preamble is on point, but I will not speak to it because there is not enough time. I will, however, answer my colleague's specific question about what could have been in the budget.

First, the budget should have included tax incentives. I am talking about innovation in the manufacturing sector. For Sherbrooke, this is a very important component that should have been included in the budget. There should have been significant measures to help our manufacturing sector.

I was also interested in the measures having to do with airports, even though they are not necessarily budget-related. The Conservatives decided to change the airports system, but they failed to account for the Canadian Air Transport Security Authority designations. However, the Minister of Transport was supposed to be working on this for the past two years. Two years ago she opened the door to the City of Sherbrooke to work on a mechanism to allow non-designated airports to have security staff. However, we have seen nothing in two years and there is nothing in this budget.

Why make a change that affects airports and leave Sherbrooke, its airport and its requests out of it? That is too bad.

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, I will be sharing my time with the Parliamentary Secretary to the Minister of Industry.

I thank the House for this opportunity to discuss Bill C-43. The bill would implement important measures announced in economic action plan 2014. The measures in the bill would make a real difference in the lives of hard-working Canadians.

Life for all Canadians has never been better. We are blessed to live in the greatest country on earth, the economic envy of the post-recession world. However, we must also remain where we came from. We can never forget the great recession, the worst economic downturn since the Great Depression, the downturn that erased $10 trillion in global market value and eradicated 62 million jobs. The great recession taught us one lesson: we can never take our affluence for granted. We must constantly and relentlessly take action to create jobs, growth, and long-term prosperity, and that is exactly what our government is doing through Canada's economic action plan. We have recovered all the jobs lost during the recession, but far more than that, we have created more than 1.2 million net new jobs since the depth of the downturn. These are overwhelmingly full-time, high-paying private sector jobs. More than that even, more Canadians are working now than at any other time in our history.

All Canadians are wealthier for their work. A recent New York Times analysis found that after-tax, middle-class incomes in Canada, substantially behind in 2000, now appear to be higher than in the United States. In fact, the Canadian middle class is among the richest in the developed world.

Yet despite our success, we cannot afford to be complacent. Canada refuses to be mediocre. That is why our measures take action across the economy. There are many measures contained in Bill C-43, but unfortunately I cannot touch on all of them. Today I would like to highlight measures to create jobs and growth and support hard-working Canadian families.

Let me begin with creating jobs. Central to our efforts in this regard is making sure Canadians have the skills they need to get hired. In Canada, apprentices in skill trades do most of their learning during on-the-job paid employment and participate in technical training for periods ranging from six to eight weeks each year. They face a challenge. There can be serious costs to complete the technical training required by their programs. That can include fees, tool and equipment costs, and living expenses. That is why we introduced the Canada apprenticeship loan in the first budget bill. This initiative will help apprentices get registered in Red Seal trades by providing access to over $100 million in interest-free loans each year to complete their training.

The parameters of Canada's apprentice loan program are similar to those of the Canada student loan program. That is why we believe that both programs would benefit from the same tax treatment. Bill C-43 proposes that the Income Tax Act be amended to extend the existing student loan interest credit—a non-refundable tax credit available for interest payments on loans approved under the Canada student loan program and similar provincial programs—to interest paid on the Canada apprentice loan. We are proud to help Canadians gain the skills they need for the jobs they want.

To create even more good, paying jobs, Bill C-43 takes action to lower taxes for small businesses. Small businesses and the entrepreneurs who power them are the lifeblood of our economy. Under our government, Canada is open for business, and in 2013 leapt from sixth to second place in the Bloomberg rankings for the most attractive destination for business. According to KPMG, Canada's total business tax costs are the lowest in the G7, 46% lower than those in the United States. We will not rest on our laurels. Those hard-working entrepreneurs deserve more money in their pockets, money they can use to expand their businesses and create more jobs.

That is why today's legislation includes the new small business job credit. This new credit would effectively lower small business' employment insurance premiums from the current rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016. Any firm that pays employers' EI premiums equal to or less than $15,000 in those years, would be eligible for the rebate. That means 90% of the employers making EI contributions in Canada, or about 780,000 in each year, would directly benefit from the credit. There is even better news for business owners. This credit would require no new paperwork. The Canada Revenue Agency would automatically calculate it on a business' return.

Overall, our small business job credit would reduce the EI premiums paid by small businesses by nearly 15%. We expect to save businesses over half a billion dollars over the next two years.

This job credit represents yet more action for our government to lower taxes for Canadians. Today, the overall tax burden is at its lowest level in over 50 years. An average family of four now pays $3,400 less in taxes as a result of actions taken by our government.

That figure does not even include our latest measures to cut taxes for hard-working Canadian families, and our strong action stands in stark contrast to the Liberals and the NDP. Unlike them, we will not raise taxes for Canadian families, drive the country into deeper deficit, and pile on debt.

There is a simple difference between our Conservative government and the opposition. They want more money in the pockets of Ottawa bureaucrats and less in the pockets of hard-working families. They need to raise taxes to pay for their reckless schemes, and that is not our Conservative approach. We believe in stronger families, more money in the pockets of those who care most about their kids, which is their moms and dads.

This past October we offered hard-working families even more tax relief, tax relief that would help literally every family with children in Canada. We increased and expanded the universal child care benefit, introduced the family tax cut, and raised the child care deduction expense limits. Before that in October, we announced our intention to double the children's fitness tax credit and make it refundable.

Bill C-43 confirms that our government would double the maximum amount of expenses that may be claimed under the credit from its current limit to$1,000 for the 2014 tax year and subsequent years. Parents would be able to take advantage of the new $1,000 maximum limit in the spring of 2015 when they file their tax returns for 2014. Making the credit refundable would increase the benefits to low-income families claiming the credit for 2015 and subsequent years.

This represents even more action by our government to cut taxes for low-income Canadians. In fact, since 2006, we have taken more than a million low-income Canadians off the tax roll entirely.

Let me conclude as I began. We live in fragile economic times. Canadians expect our government not to sit on its laurels. They expect us to take action, to create jobs, growth, and long-term prosperity, not just for this generation but for our children and grandchildren. That is its top priority. Bill C-43 would do precisely that. It would deliver the actions Canadians expect from us and ensure that Canada continues to be the envy of the post-recession world.

As such, I would like to ask all hon. members to support the implementation of this important legislation.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I found it interesting that the member made reference to how important it is that we create jobs, and yet it was not that long ago when the leader of the Liberal Party, on behalf of the Liberal Party, talked about something that would have done just that, and that was the EI premium break for new hires in Canada.

Independents outside of this realm and apolitical types of organizations, came forward and said that the Liberal idea would create literally tens of thousands of jobs and all regions of this country would benefit.

We compare that or contrast that to the Conservative government EI plan, which in a bizarre way, could potentially even have had people losing their jobs.

If the member is right in his assertion that the government is concerned about creating jobs, why then did it not adopt the Liberal plan that would have created tens of thousands of jobs for our middle class in every region of our country? Why did the Conservatives oppose that plan? It was all about creating jobs, and he just finished talking about how he thinks it is important to create jobs.

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, I am not sure which fantasy world my colleague is working from, but the Liberals' plan would definitely not create the jobs that we would provide here. The jobs are created by small businesses, the hundreds of thousands of small businesses that actually employ real people and create the jobs. Our way of reducing the costs of that by $0.5 billion is a real incentive for small businesses to create those jobs for the long term.

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I thank the hon. member for his comments, but I was particularly interested when he talked about the government's commitment to create jobs. I just wondered whether or not he really agrees with the Parliamentary Budget Officer, because the Parliamentary Budget Officer has told us that the EI job credit would cost $0.5 billion and create only 800 jobs. That means it would cost something around $550,000 per job created. When the member is talking about the government's ability to create jobs, does he think this is really good value for money for taxpayers?

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, I do not think any government creates the jobs. It is those to whom we give the tax rebates who actually create the jobs. These are the small business owners who work so hard. They are entrepreneurs who make their ideas come to reality, take them to market, and create the businesses that actually create the jobs. By doing what we are doing, we will actually be doing that and creating many more jobs than this particular statement.

[Dan Harris, NDP, Scarborough Southwest, ON]

Mr. Speaker, I have a fairly simple question, because the issue of pay-to-pay has certainly come up. The New Democrats have been pushing for the elimination of pay-to-pay for years, so this is actually one small element that we like.

However, the Conservatives have gone and given the banks an exemption to this policy, and they have not explained yet why. I wonder if the member would perhaps be able to explain why the Conservatives decided to give the banks a free ride with respect to the ability to charge people to receive paper bills.

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, the banking system is sound. That is why banks are able to function as they do. They do a great service for all of us, including not just at the personal level but for small businesses, et cetera, and will continue to do that. The telecom industry is quite different from the banking system. Telecom companies are actually providing a service that they are already charging for in terms of paper billing, and it is just a way of increasing their profit margin on the backs of all of us individuals.

[Mike Lake, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, I am pleased to rise today to speak to Bill C-43 and the benefits it would have for Canadian consumers and businesses.

Our government has taken decisive action on putting Canadian consumers first. We have cut taxes nearly 180 times, which is saving Canadian families nearly $3,400 per year on average. Our government has also committed to making it easier for small and medium-size businesses to invest, innovate, grow and create jobs. We are keeping taxes low, freezing EI rates for next year, cutting red tape and returning to balanced budgets. Canada is one of the most tax-competitive countries and has the best job creation among the G7, and we will continue down that path.

Budget 2014 continued with these commitments, including consumer-focused measures to ensure that Canadian families would get value for their hard-earned dollars and measures that would help small and medium-size businesses to thrive.

Specifically, economic action plan 2014 committed to introduce administrative monetary penalties for the violation of rules in the telecommunications sector; eliminated the practice of pay-to-pay billing so Canadian consumers would not have to pay extra to receive paper bills; clarified the prohibitions against violating Industry Canada's spectrum auction rules to ensure fair and competitive bidding that would achieve the greatest benefit for Canadians; modernized Canada's intellectual property framework to better align it with international practices and reduced the burden for Canadian businesses; and continued to ensure that Canadian businesses and investors would have the market access they needed to succeed in the global economy.

I would like to take a few moments to explain these important initiatives and the benefits they will have for Canadian consumers and small businesses.

Our government is committed to ensuring that companies in the telecom sector play by the rules. That is why we are introducing new enforcement measures that will increase consumer protection in this sector. Bill C-43 would amend the Telecommunications Act and the Radiocommunication Act to provide the CRTC and the industry minister with the authority to impose administrative monetary penalties on companies and individuals that would violate the rules. Companies would face penalties of up to $10 million and up to $15 million for subsequent violations. These new measures would provide Canadian regulators with the needed tools to ensure companies would comply with the rules. They would protect Canadian consumers and support a competitive marketplace by promoting regulatory compliance and providing for appropriate remedies should violations occur.

Canadian consumers have been clear that they expect lower prices and better services from telecommunications providers. That is why our government committed to ending unfair pay-to-pay billing practices, putting the interests of Canadian consumers first.

More and more Canadians are finding a new charge appearing on their monthly bills, including their wireless bill. This fee is charged to those who receive their bill by mail. Increasingly, many Canadians are being charged for this new fee by companies from which they have been receiving service for decades.

In August, the Public Interest Advocacy Centre published a report in which it estimated that Canadians paid between $495 million and $734 million annually in fees for monthly paper bills and statements in the banking and communications services industries.

We believe Canadians should not have to pay more to receive a paper copy of their telephone or wireless bill. As such, economic action plan 2014 commits to ending this unfair practice. Bill C-43 would end these pay-to-pay billing practices by adding an explicit provision to the Telecommunications Act that would prohibit any person who provided telecommunications services from charging a subscriber for a paper bill. Any company that broke the rules would face penalties of up to $15 million.

Canadians have also been clear that they want their government to take action to ensure the provision of more choice, lower prices and better service in Canada's wireless sector. I am proud to note that our government has consistently introduced measures to support a healthy, robust and competitive wireless industry.

For instance, we implemented a use it or lose it policy to ensure that wireless companies that did not use their spectrum licences would lose them. We have been taking important steps to increase the amount of wireless spectrum available to provide Canadians with the access they need on the devices they choose.

In January, the government unveiled details of the 2,500 megahertz auction, which would benefit Canadians in urban and rural areas. In February, we announced the results of the 700 megahertz auction, the most successful auction of spectrum in Canadian history, generating roughly $5.3 billion in revenue for taxpayers and putting high-quality spectrum in the hands of at least four wireless providers in each region of Canada.

Bill C-43 would further ensure that spectrum auctions would be conducted in a fair and transparent manner, in accordance with rules of conduct, to the benefit of all Canadians. In particular, the bill would amend the Radiocommunication Act to require that any person who would be subject to the spectrum auction rules must comply with those rules or risk the imposition of an administrative monetary penalty of up to $15 million.

These measures would increase regulatory compliance in the wireless sector and ensure that Canadian consumers would benefit from better service.

Our government also understands that reducing red tape for small and medium-sized businesses is central to Canada's economic growth. In budget 2014, our government committed to modernizing Canada's intellectual property framework by ratifying five international treaties. Earlier this year, our government passed the first three of the treaties relating to trademarks, the Madrid protocol, the Singapore treaty, and the Nice agreement.

Bill C-43 proposes amendments to the Patent Act and the industrial design act to ratify and accede to the remaining two treaties, the patent law treaty and the Geneva act of the Hague agreement.

Overall, the amendments in Bill C-43 would harmonize Canada's intellectual property regime with international practices, standardizing and simplifying administrative processes to lower costs and reduce red tape for small businesses. In particular, these amendments would allow a company to file for industrial design protection in multiple countries through one single application, filed in one language and for one fee. The resulting administrative and financial savings to Canadian businesses would be very significant.

The amendments would also harmonize administrative aspects of Canada's patent regime with international standards. This would result in a simpler application process and reduce the risk of errors.

Modernizing Canada's intellectual property regime and bringing it in line with international standards will continue the work to foster an environment in which businesses can grow and succeed in the global economy. These measures will increase Canada's openness to trade and investment and further reduce barriers to the international flow of goods and services.

Our government is also committed to making it easier for small and medium-sized businesses to invest, innovate, grow and create jobs. Bill C-43 contains updates to the Business Development Bank of Canada, which will help small and medium-sized businesses grow and succeed in an increasingly competitive and global environment.

Amendments to the Business Development Bank of Canada would help provide even more flexibility to SMEs that wish to grow beyond our borders. Changes would also establish a wider variety of consulting services for SMEs to access and help the BDC better leverage partnerships with third party organizations to improve its reach into the business community.

The BDC is the only bank in Canada solely dedicated to entrepreneurs and the legislative amendments in Bill C-43 would allow the BDC to expand its support for SMEs.

In conclusion, Bill C-43 proposes amendments that fulfill a number of the government's commitments to a stronger and more prosperous Canada. These initiatives, along with the other measures contained in the bill, will have significant benefits for Canadian consumers, families and small businesses.

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I would like to ask this member the same question I previously asked the member for Don Valley East

When the Conservatives talked about enabling small businesses to create jobs, they came up with the EI job credit that the Parliamentary Budget Officer said would cost half a billion dollars and create only 800 jobs. That means the government is putting out money to small businesses at a rate of $550,000 per job created.

Does he really think this is good value for money for taxpayers? Why was this program not run by the Department of Finance or the Department of Employment and Social Development and instead was allowed to be written by a lobbyist?

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Mr. Speaker, I find it interesting that the hon. member would ask a question regarding EI. I wonder if the hon. member has done any research into the NDP plan to introduce a 45-day work year, supported by the Liberal Party. It would increase costs dramatically for Canadian businesses and Canadian employees.

Our government has taken measures over the years that have resulted in an increase of 1.2 million net new jobs in the country, the vast majority of which are full time and in the private sector. The hon. member's party has voted against those measures every step of the way.