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

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, it is always an honour to rise in the House on behalf of my constituents from Surrey North. Today I will speak to Bill C-43, the budget implementation act.

Given the track record of the Conservatives, it is no surprise to me that they again have moved time allocation on this bill. I am lucky enough to get a chance to speak on behalf of my constituents, however, I know many members from the NDP and Liberal side, and maybe the Conservative side, will not get the opportunity to represent their constituents.

There is no possible way that a 460-page bill, which contains more than 400 clauses, could be adequately studied, analyzed and debated under this type of time restriction. Is that a surprise? Well, I am not surprised at all. Under the government, omnibus bills that amend dozens of acts at a time and pushed through the House under time allocation are unfortunately becoming the norm. It is unfortunate that the government insists on following this anti-democratic process time and time again. However, after three and a half years, I have recognized that the Conservative government is not planning on changing its ways any time soon.

There is a laundry list of things in the bill before us. It talks about temporary foreign workers, pay-to-pay fees, airports, the Canadian Polar Commission and the EI job credit. The Conservatives are also beating up on refugees in the bill.

However, I want to talk about what is important to my constituents. When I go back to Surrey, I like talking to people and finding out what their issues are, but none of those issues have been addressed in the bill.

I often say when we are on the Hill, that Ottawa is like a little bubble. We need to get outside of the Hill and hear what Canadians want. However, I get the feeling that the Conservatives are still living in that bubble, because what Canadians are saying is not being addressed in the House by the government.

I come from Surrey North, which is a dynamic, vibrant and fast-growing city in the Lower Mainland of British Columbia. I am extremely proud to represent a portion of such a diverse and interesting city. However, Surrey is facing many pressures and challenges that require action and assistance from the federal government to solve.

Surrey's challenges range from a lack of affordable housing, aging infrastructure, inadequate public transit and serious issues around crime and poverty. Federal funding and support is sorely needed to make inroads to address these challenges in my city.

I continue to hear from my constituents on the problem of public transit in Surrey, and I have to agree. Surrey is the second largest city in British Columbia, soon to be the largest city in the upcoming years. It is growing at a rate of about 12,000 to 13,000 new residents annually. As one of the fastest-growing cities in Canada, and the fastest-growing city in metropolitan Vancouver, there is a clear need for infrastructure funding to support this growth. Public transportation is increasingly a problem for a such a fast-growing city. Although the population of Surrey continues to grow at an astounding rate, public transportation has not kept pace.

The SkyTrain is Surrey's most efficient public transit connection to other cities in the Lower Mainland, such as New Westminster, Burnaby and Vancouver. However, SkyTrain service in Surrey has not been expanded since 1994 when three new stations were put in—all in my riding—but nothing has been done since then.

Twenty years later, the face of Surrey has changed dramatically, and it is well past the time that the federal government commit to funding critical infrastructure, such as the expansion of public transit in Surrey. Residents in my community of Surrey North will tell members that the public transit system in Surrey is inadequate, and I hear that quite often. There are long wait times and convoluted routes to get from one point in the city to another.

The city of Surrey is currently working to secure funding for a light rail transit network that will connect different town centres in the city as well as connect Surrey to cities in our area, such as Langley. This is an important step forward for our city and a very important investment that is critical to ensuring Surrey remains a livable and connected city.

It disappoints me greatly to see that the budget does not allocate funding to important projects that are critical to continued growth and development of major cities, such as Surrey. Other cities across the country are facing similar pressures with regard to public transit. We hear from the FCM on a regular basis about the lack of funding for transit infrastructure development for the cities across this nation.

Just last week, my colleague, the member for Parkdale—High Park, pointed out the issues that Toronto had experienced with the transit system not keeping pace with the population growth. This is not an isolated issue. Investment in infrastructure is necessary to ensure that our cities continue to be some of the best and most livable in the world.

In terms of infrastructure, public transit is not the only issue facing my community of Surrey North. As I have mentioned many times in the House, the aging Pattullo Bridge is a major concern to my constituents. I have been very vocal in requesting that the federal government step in and play a role in regional infrastructure planning and development. The 76-year-old Pattullo Bridge, which was built for a 50-year lifespan, now poses a significant safety concern.

The Golden Ears Bridge and the Port Mann Bridge, which both feed either directly or indirectly into Surrey North, are the only toll bridges in western Canada and the only toll bridges coming into my riding.

Many Surrey residents continue to commute across the Fraser River to go to work. The future of the Pattullo Bridge will have a significant impact on the residents of Surrey, especially on the residents of Surrey North, as it is the last non-toll bridge that feeds directly into our city.

I have been anxiously waiting for the federal government to commit to participating in infrastructure planning and development in the south Fraser River region. However, this budget proves that this is not a priority for the government.

Municipalities receive only 8% of the tax revenue, but are responsible for 60% of the development. This equation does not add up, and it is clear that the federal government has a responsibility to allocate funding to regional development and infrastructure in a reasonable manner that creates sustainable and livable cities.

This is not being done right now. It is not being addressed in this budget at all.

Finally, I hear concerns about crime in my community very frequently. Residents are concerned about the impact that crime is having on our community and what is being done to reduce the amount of crime.

Frankly, the tough-on-crime government has done nothing to help people in Surrey North. Instead, we have seen funding for policing downloaded to municipalities. Practical and cost-effective solutions such as prevention programs are not being utilized to reduce crime. For example, research shows that community-based programs focused on gang intervention, after-school mentoring and after-school recreation are promising at preventing crime.

Programs like this are practical, cost-effective and contribute to community building, as well as to the goal of reducing crime. My motion on youth gang prevention takes a similar approach by calling on the government to provide stable, long-term funding for youth gang crime prevention and intervention programs.

However, once again, I see no funding allocated to these types of common sense prevention programs that could help reduce the amount of crime in riding of Surrey North and communities across the country.

This approach of the Conservative government is very problematic. I am not surprised in the least that the budget is out of touch with the needs of everyday Canadians. This budget is an opportunity to truly address the needs of Canadians, however, the government has again failed Canadians.

I want to take this opportunity to wish all Canadians right across our country a very merry Christmas and a happy new year, and be safe.

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

Mr. Speaker, I listened diligently to my colleague across the way. It almost seems as if the New Democrats are a little confused as to their story. The opposition cannot seem to get its story straight. First, New Democrats accuse us of not consulting, then, when we do consult with the very association that represents small businesses, they refuse to listen.

Could the member opposite stand and agree with the Canadian Federation of Independent Business, which was consulted, that increased payroll taxes are not in the best interest of Canadian small businesses?

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I was a small businessman before I became a member of Parliament, and I know the very issues that concern small businesses. It looks like the Conservatives never get outside the Ottawa bubble. This demonstrates their Ottawa bubble.

I will tell members what small businesses want. They want the Visa and MasterCard fees to be lowered. They are being gouged by those corporations. They want bank fees lowered for Interac and all of that. They want small business taxes reduced, and that is what New Democrats will bring to Ottawa in 2015 when we form the government.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to pick up on the member's comments regarding infrastructure. This has been a significant issue. At a time when the government should be investing in infrastructure, there has been a significant cut in actual infrastructure expenditures this year. It has been in excess of 85%.

My question for the member is just to reaffirm that investing in infrastructure makes good economic sense and that the government is not spending and allowing for infrastructure growth to take place in this fiscal year. Conservatives might talk about a huge commitment to infrastructure, but that is well into the future. The money being spent and released is actually down by more than 85%. I would ask him to comment on that.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I would have to agree with the member for Winnipeg North that the government talks about infrastructure and does not deliver. It has not delivered. Equally, the Liberals also talk about infrastructure funding but actually never deliver.

I have talked to many members in my community in the city of Surrey, to councillors in the city of Vancouver, and to the FCM. Across this country, there is a lack of funding for cities to improve infrastructure, whether it is building roads, improving transit, or other needs that are being downloaded to the municipalities. I can assure everyone that New Democrats will deliver in 2015 for cities and provinces across this country.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I want to reiterate the fact that there are over 460 pages in this budget bill, with over 400 clauses, and there have been time limits on it as well. There are things New Democrats agree with and things we do not agree with, and that is why we cannot support this bill. If the Conservatives were willing to split the bill, we would be glad to discuss it in a little more detail.

There was a question across the way about small businesses. We know that the government is not connected to this. Maybe the member would like to comment on this specific quote. It was said by Mike Moffatt, of the Ivey Business School at the University of Western Ontario. He stated:

...the proposed “Small Business Job Credit” has major structural flaws that, in many cases, give firms an incentive to fire workers and cut salaries....

The way this proposed system is designed is that the maximum benefit a company can receive from firing a worker and going under the $15,000 threshold far exceeds the maximum benefit a small business can receive from hiring an additional worker:...

I am wondering if the member could comment on that.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I would agree with that quote. In fact, this is a wrongheaded approach. In the last federal election, we said that the only way to generate jobs is by supporting local small businesses, and that is what we will do. That is what generates jobs in this economy. The Conservatives have failed to do that.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, before I begin my remarks, I would like to note that I will be splitting my time with my colleague and friend, the Chief Government Whip.

Since taking office in 2006, our Conservative government has been focused on what matters most to Canadians, and that is jobs, growth, and long-term prosperity.

We are on track to achieve balance by 2015, because we have been prudent. We cannot afford to risk the future of our country by engaging in reckless spending schemes and wild tax hikes. We will not lose focus.

Coming into government in 2006, the first thing our government did was fulfill some of our major campaign commitments. We cut the GST, created the universal child care benefit for families with children, and paid down the debt. In fact, we paid down about $38 billion worth of federal debt, which put us in good stead when bad economic times hit in the last quarter of 2008. This latter decision proved to be one of the best decisions our government made, as we would find out later.

Our government also created our economic roadmap, advantage Canada. It was an economic plan designed to position Canada for future prosperity. The basic principles of advantage Canada remain as relevant today as when our government created it back in 2006: no reckless spending, and lower taxes.

When Bear Stearns and Lehman Brothers collapsed in 2008, subprime mortgages in the United States caused a ripple effect through global economies and credit markets. Well, extraordinary times required extraordinary measures, and our government stepped up. When the dust began to settle, Canada was not only the last G7 country into the recession but the first G7 country out of the recession. Why? It was because our economic action plan worked. By paying down debt at the outset, we had more flexibility to take the necessary measures we did.

As a result of our economic performance, Canada has developed a great brand around the world. In fact, Tom Donohue, president of the United States Chamber of Commerce, has said about our government's achievements: “The great Canadian miracle is something we should follow.”

Notwithstanding the creation of 1.2 million net new jobs since the end of the recession, Bloomberg stating that Canada is the best place in the world to set up business, and our consistent AAA credit rating, we are not out of the woods yet. The Canadian economy still faces potential challenges from abroad. We must continue to take action where and when necessary. We must solidify our gains and take action now to mitigate against any potential dark economic clouds that may drift in from elsewhere.

Although the World Bank has ranked Canada's banking and financial sector as the world's best for six years in a row, our government has continuously been on the forefront to strengthen and bolster our financial sector so that it will remain number one.

As I noted, since the start of the global economic financial crisis, our government has implemented a number of measures to maintain Canada's financial sector's advantage and to reinforce stability for the sector. I want to highlight two of them contained within Bill C-43 that will continue to build on our strong foundation of stability within our financial system.

First are proposed changes to the Payment Clearing and Settlement Act. Second are proposed changes to the Canadian Payments Act. Both are key to maintaining Canada in the forefront of financial sector stability, otherwise known as the Canada brand.

The Payment Clearing and Settlement Act provides the Bank of Canada with the legislative authority and power to oversee clearing and settlement systems, also called financial market infrastructures, or FMIs, that may be operated in such a manner as to pose systematic risk to the Canadian financial system. Systematic risk arises when the inability of one participant to meet its obligations to the financial market infrastructure could cause other participants to be unable to meet their obligations.

The Payment Clearing and Settlement Act is the federal government's recognition of the essential role of major FMIs in the Canadian economy and the importance of regulatory oversight of these FMIs. The Payment Clearing and Settlement Act provides the Bank of Canada with two main oversight responsibilities: first, designating FMIs that have the potential to pose systematic risk as subject to bank oversight; and second, overseeing designated FMIs to ensure that they are adequately controlling systematic risk.

The amendments to the Payment Clearing and Settlement Act would expand and enhance the Bank of Canada's oversight of financial market infrastructures to ensure that risks to financial market infrastructures can be identified and addressed in a proactive and timely manner. These amendments would address the gaps in oversight identified in our government's review of the system undertaken in 2012. Addressing these gaps and the oversight of major clearing systems are critical to the efficient functioning of the Canadian financial system and the economy.

What are the gaps these changes seek to address? Under the current regime, the Bank of Canada's oversight is limited to clearing and settlement systems that pose systemic risk. It does not extend to non-systemically important systems for which a failure can have a serious impact on the economy and on general confidence in the payment system.

In addition, some of the regulatory tools currently available to the Bank of Canada are insufficient for addressing certain types of risk in clearing and settlement systems. These proposed amendments would broaden the scope of oversight to prominent payment systems and would enhance some of the tools available to the Bank of Canada to respond to these risks. The proposed changes would also expand the definition of “systemic risk” to capture disruptive effects, not just on financial institutions but on financial markets and their participants. The changes would also better align the definition with international standards.

How would the changes impact the industry? In fulfilling its oversight role, the Bank of Canada uses a co-operative approach to ensure that owners and operators of clearing settlement systems are adequately controlling risk. The changes would ensure that the Bank of Canada would be able to backstop this co-operative approach should it need to respond to risks in clearing and settlement systems. These changes would allow the Bank of Canada to respond to potential risks in a more timely and proactive manner.

The second set of amendments would be to the Canadian Payments Act.

The Canadian Payments Association owns and operates national payments and clearing systems. These systems are used by financial institutions to transfer money among themselves. Types of payments cleared and settled through the CPA system include payroll, debit transactions, and wire payments.

Everyone is in agreement that the CPA is a capable owner and operator of these systems. These amendments would improve the CPA's governance by, first, introducing greater independent decision-making to its board of directors by establishing a majority independent board, led by an independent chair; second, improving the CPA's accountability to government and the public by requiring the CPA to submit a corporate plan and to publish an annual report; and third, expanding the power of the Minister of Finance to issue directives to the CPA. These measures would ensure that the CPA system was operated for the benefit of Canadian consumers, businesses, and the economy. They would also support competition and innovation in the payments industry.

Canadians make roughly 25 billion payments, worth more than $44 trillion, each year. The payments system is vital to consumers and to the continued strength of the Canadian economy. Advances in information and communications technology are changing the way Canadians pay for goods and services.

While payments systems are evolving, they must always be safe and sound so that Canadians can have confidence in them. That is why we are seeking these changes. I look forward to the support of all members of this House for these amendments and for Bill C-43.

The House resumed consideration of the motion that Bill C-43, A Second Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, be read the third time and passed, and of the amendment.

[John Duncan, Conservative, Minister of State and Chief Government Whip]

Mr. Speaker, I rise to express my support for the budget implementation act and to particularly highlight the fact that it moves the DNA missing persons index one step closer to reality.

I cannot imagine anything as heartbreaking as having a family member, particularly a child, go missing. That nightmare became a reality more than 20 years ago for Judy Peterson. Her daughter Lindsey disappeared on August 2, 1993, on her way to meet friends in Courtenay in the Comox Valley in British Columbia. Judy's life has never been the same.

For the parents of a missing child, the search never ends. Even when every lead has been followed and every tool has been used, there remains a determination and a hope, even when it is also tinged with fear. This was Judy's experience, and she pursued every avenue to try to bring certainty. Once inside the system, Judy realized that there were potentially useful tools that remained completely unavailable. She learned that, although DNA could be used for criminal justice purposes, it could not be used to compare missing persons to existing indices.

Canada had innovative, effective DNA technology, but it was simply not available to missing persons investigators. She also discovered that even in cases where unidentified human remains were found that the police wanted to check, there was no pre-existing database that could be used for missing persons. That meant that the family had to be contacted, permission sought, and samples taken each and every time. Members can imagine the toll this would take, as people would have to relive their loss, wonder about the outcome, and be left in turmoil when, once again, they are left with no certainty.

Even worse than getting these calls is not getting them. Without a national data bank, it is much more difficult to draw links between crime scenes and missing persons. Even where provinces have good cross-checking systems in place, these do not extend across provincial borders. Judy knew that this system did not serve either investigators or the families of missing persons. She knew that it could be better, that it had to be better. What followed was years of tireless advocacy for the creation of a national DNA-based missing persons index.

I first met Judy Peterson in August of 2013 in Comox in my riding when I attended the teddy bear picnic, which was sponsored by Judy and the Missing Children Society of Canada. This event was held to mark the passing of 20 years since Lindsey's disappearance. Judy Peterson moved away from the Comox Valley to Sidney near Victoria, and she had been campaigning for most of the intervening years without our paths ever crossing. When we finally did meet, I was completely touched by her story. I made a promise to Judy that day that I would fully commit to advocate for a missing persons DNA database. I knew that Judy was her own best spokesperson, so I did everything I could to open doors for her. I am happy to say that my cabinet colleagues were as touched by her story and her passion for change as I was. We were all genuinely moved by what we heard, and we agreed that the missing persons DNA database is an essential measure.

There were a number of pieces that had to fall into place, and the first was securing funding for the changes. Therefore, in his speech to the House on the introduction of budget 2014, then finance minister Jim Flaherty highlighted our government's commitment to create a DNA-based missing persons index. Judy Peterson was in the gallery that day, and seeing her there as Jim mentioned her by name and acknowledged all of the work she had done was the most memorable and emotional moment of my 20 years in Ottawa.

The 2014 economic action plan committed $8.1 million over five years and $1.3 million ongoing to fund a DNA-based missing persons index.

Jim Flaherty has such a great legacy of public service, and I see this initiative as part of that great legacy. His commitment to doing the right thing will help many families who are going through one of the most painful things a family can go through, the disappearance of a loved one.

Making the missing persons index a reality takes more than just money. The budget implementation bill we are debating today includes the legislative changes that are necessary to follow through on our commitments in the economic action plan, including the DNA-based missing persons index.

Specifically, it would amend the DNA Identification Act to establish a new humanitarian application to support investigations of missing persons and unidentified human remains and would allow the creation of new DNA-based indices. For this I am grateful to my colleagues, the Minister of Public Safety and Emergency Preparedness and the Minister of Justice, who have both worked to create the necessary changes.

I would also like to acknowledge the work of the member for Saanich—Gulf Islands, who has worked closely with Judy. The Green Party leader provided meaningful personal support to Judy and has been supportive of my actions as well. I know that, like me, every contributor to this process has been moved by Judy's story and motivated to help her and families like hers.

I am proud to stand here today to speak on behalf of the budget implementation act and what it means for families who are suffering. I am proud of the actions our government has taken to create a justice system that is sensitive to the needs of victims and that improves safety and security for all Canadians.

Our government is taking common sense steps to support economic growth, while continuing to support Canadian families and communities. We are continuing to build on our record of strong and consistent fiscal management. We have made the tough decisions that need to be made to return the budget to balance, while continuing to increase transfers to provinces, invest in infrastructure and skills training, and keep taxes low. It has not always been easy, but our work is paying off. We are almost there.

The global economy is still fragile, and as recent events confirmed, the world can be an uncertain place. However, we are meeting these challenges and continuing to provide steady leadership in difficult times.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I certainly appreciate the work the member has been doing in advocating for this missing persons DNA database, but I think, when we look at the amount of information that the Conservatives are putting in budget bills, we have to question why they are putting certain information in there when they could actually be debated in a better venue and get the proper support that they need.

Just to this point, because his speech was quite emotional with respect to the DNA database, but what about the missing and murdered indigenous women of this country? We still have so much work to do.

I am just wondering, because 1,181 cases of missing and murdered women have been reported between 1980 and 2012. Of these, 225 cases remain. When we look at the ongoing call, I am wondering why he will not support a national inquiry into the missing and murdered indigenous women.

[John Duncan, Conservative, Vancouver Island North, BC]

Mr. Speaker, I read two questions into the statement from the member.

First, the budget implementation act is a necessary bill to bring portions of the budget to life that require statutory enabling legislation. When I talked with various people, including other members of Parliament who wished to promote the DNA missing persons index, across parties we saw the budget implementation act as a way to get it done. After 20 years, was this not a very good idea? Therefore, I do not take any criticism that this is an inappropriate vehicle for making this budgetary commitment a reality.

In terms of the missing and murdered aboriginal women, the database would actually help improve the solve rate. It would help investigations immensely, and it is one more thing that we in government are doing to make sure we are able to solve cases like this.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I thank my hon. colleague for his clearly heartfelt comments about the DNA database for missing persons.

One of the very few advantages of debating an omnibus bill is that we in the opposition can ask almost any question. In fact, I am sure I could ask a question about kitchen sinks, because there is probably something about kitchen sinks in the omnibus bill.

However, I would like to talk about income splitting. Clearly, the experts have said the $50,000 transfer on income splitting is only going to benefit about 15% of Canadians, experts including the late Jim Flaherty, who said the same thing. The government was clearly aware of this, so it surrounded it with other tax benefits for children.

My question for my hon. colleague is this. Does he think it is fair to be giving $2 billion to 15% of the population?

[The Acting Speaker, Barry Devolin]

The Chair is not certain whether there is a reference to the kitchen sink in the budget implementation bill. I am also not sure that this measure was in the budget implementation, but we will go to the Chief Government Whip for a response.

[John Duncan, Conservative, Vancouver Island North, BC]

Mr. Speaker, I know the Liberals have an issue with income splitting. I asked the question the other day of one of the Liberal members after his speech, as to why the Liberals, as government, would choose to reverse income splitting for seniors, which has been widely popular. I know they are trying to avoid talking about income splitting for seniors, which has been in place for quite some time. However, if they are coherent and consistent, then they would reverse that as well as the family income splitting.