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

[Peter Van Loan, Conservative, York—Simcoe, ON]

moved 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.

[Andrew Saxton, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I am thankful for this opportunity to present Bill C-43 at third reading. This important bill implements key initiatives from economic action plan 2014.

This year's budget has further illustrated the responsible leadership of our government. It is a budget that builds on our strengths and continues to implement the government's plan for jobs and growth. Our efforts to support jobs and growth are underpinned by our plan to return to balanced budgets in 2015. This commitment to fiscal responsibility has helped to ensure that Canada maintains its hard-earned international economic fiscal advantage, which will help foster a growing, healthy economy that creates stable, well-paying jobs for all Canadians.

Indeed, our government's plan to return to balanced budgets is not an end in itself, but a means to increase Canada's economic potential, improve employment opportunities for Canadians, and raise our standard of living. It is for this reason that we made returning to balanced budgets the cornerstone of our economic action plan. To that end, economic action plan 2014 continues to focus on creating jobs, growth, and long-term prosperity: long-lasting prosperity, the kind that our children can rely on and that future generations can appreciate.

However, I must remind members that the global economic situation remains fragile and that difficulties beyond our borders may affect Canada.

Thus, it is truly important for our Conservative government to implement its economic action plan, which will create jobs and stimulate economic growth.

Bill C-43 does not deviate from these objectives. It supports jobs and growth, helps families, strengthens communities and continues to improve the fairness and integrity of the tax system.

I would like to highlight today some of the key budget measures in Bill C-43 and thereby demonstrate how this government is demonstrating strong and responsible leadership with this major legislative measure.

First, let me touch on some ways our government is making our tax system simpler and fairer. This includes closing tax loopholes and strengthening tax enforcement to ensure all Canadians pay their fair share. Since 2006, our government has taken significant steps to establish our country as a global clean energy leader, including through regulatory actions, investments in technology and innovation, and broad-based incentives. The government has also supported these sectors through the tax system by expanding eligibility for the accelerated CCA for clean energy generation equipment.

In 2013, we encouraged businesses to invest in new clean energy technologies by expanding the types of organic waste that can be used in qualifying biogas production equipment and the range of qualifying equipment that can be used to treat gases from waste. Today's legislation would build on that success by expanding eligibility for the accelerated capital cost allowance, CCA, for clean energy generation equipment to include water current energy equipment and a broader range of equipment used to gasify eligible waste.

However, that is not all. Today's legislation also focuses on connecting Canadians with available jobs by helping them to acquire the skills that will get them hired and will help get them better-paying jobs.

In Canada, apprentices in skilled trades do most of their learning during on-the-job paid employment and are required to participate in technical training for short periods ranging from six to eight weeks each year. Apprentices can face significant costs to complete these periods of technical training required by their program, including educational fees, tools and equipment, and forgone wages.

That is why, in order to help connect Canadians with available jobs, we created the Canada apprentice loan. This initiative will help apprentices in Red Seal trades by providing them with access to over $100 million in interest-free loans each year to complete their training.

More specifically, Bill C-43 amends the Income Tax Act to extend the existing tax credit for interest paid on student loans—a non-refundable tax credit for interest on loans paid under the Canada student loans program and similar provincial programs—to interest paid on a Canada apprentice loan.

By helping Canadians get the skills they need to find a new job or a better job, we are investing directly and effectively in this country's greatest asset—our people, who are supporting the economy in general.

Another way we are proposing to improve our system of taxation is by updating the Income Tax Act and the Excise Tax Act. Earlier this year, the government released for public comment draft legislative proposals relating to technical changes to the Income Tax Act, the Excise Tax Act, and related regulations.

Following this public consultation, Bill C-43 includes amendments to relieve the goods and services tax or harmonized sales tax on services of refining precious metals supplied to a non-resident person who is not registered for GST/HST purposes and to implement 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.

We will continue to build on our government's stellar track record of improving the fairness and integrity of Canada's tax system, and as is evident from some of these measures, Bill C-43 does exactly that.

There is so much more to this bill than simply tax measures. This bill implements many positive budget measures that I would like to address now, and at the same time I would like to highlight some of the misinformation that the opposition would have Canadians believe.

Bill C-43 proposes to establish the governance structure for a new world-class science and technology research facility that would serve as a hub for Canadian and international Arctic research. The Canadian High Arctic Research Station, also known as CHARS, will not only strengthen Canada's position as a world leader in cutting-edge research in the Arctic but will also support the local economy in the region by creating jobs.

The opposition consistently accuses our government of a lack of consultation and an aversion to science. This research station will provide a very clear example of our government's commitment to exercising stewardship over Canada's Arctic lands and bringing together industry, academia, aboriginal governments, and international stakeholders to co-operatively leverage their expertise, experience, and resources.

It is also important to note that our government engaged widely on all phases of this project, and there is overwhelming support behind it. I could not be more proud of the action our government is taking in this bill, which will cement Canada as a global leader on Arctic issues and scientific research.

If the opposition had its way, it would also attempt to convince the public that our government is taking social assistance away from those who genuinely need it. This could not be further from the truth. Let me clear: that is categorically false.

Bill C-43 would simply give the option to the provinces and territories to establish minimum periods of residence to qualify for social assistance. The specifics of this option would be up to the provinces and territories. Subsequently the provinces and territories would be accountable to taxpayers, who believe that refugees, specifically bogus asylum claimants, should not have access to better health care than Canadians.

By making these changes, our government would ensure that our immigration system would be protected from those who are seeking to take advantage of taxpayer-funded health care, welfare, and other social benefits. We have had numerous examples of these over the last number of years.

Let me spell it out for the opposition one more time. Our government is committed to helping all newcomers, including genuine refugees, integrate into Canadian society and fully contribute to our community and our economy. Those in genuine need will continue to receive Canada's protection more quickly.

Another key measure of this bill supports job creation and grows Canada's economy. I am talking about our government's small business job credit. This measure would lower EI payroll taxes by 15% and save small businesses over $550 million over two years. This is real money we would be giving back to small businesses, to job creators. It is money they would use to help defray the costs of hiring new workers and to take advantage of emerging economic opportunities, thus supporting growth and job creation.

These are small businesses all across the country, some in my own riding of North Vancouver, all of which have frequently told us that the number one job killer is higher payroll taxes. We listened to the voice of small business, the business experts who actually understand what this measure will do for job creation.

Dan Kelly, the President of the Canadian Federation of Independent Business, called the small business job credit “a big, big deal for small business. It's good news for people looking for jobs....”

Of course, we can expect the opposition members to continue attacking job creators with massive tax hikes, such as a $20 billion carbon tax, and foolishly ignoring what small business is saying about this measure. They will argue that their ideas of an expanded CPP and a 45-day work year that would cost Canadian taxpayers $4 billion and thousands of jobs alone are the best options for job creation. If we ask any small business if they would prefer increased payroll taxes, the divide is clear.

We will not apologize for listening to small business concerns. On the other hand, our government will continue to lower payroll taxes for 90% of businesses and support some of Canada's most important job creators. Over 780,000 small businesses will benefit from this program.

This legislation will also help consumers. For instance, our government has a strong record of supporting consumers in the telecommunications industry. Since the last wireless spectrum auction in 2008, prices for wireless services have decreased by nearly 20% and jobs in the wireless industry have increased by 25%.

The legislation before us today builds on this record by prohibiting wireless service providers from charging their customers for paper billing, thereby fulfilling a commitment we made in the 2013 Speech from the Throne to put an end to this pay-to-pay practice.

Furthermore, the bill includes changes to simplify the certification process for telecommunications equipment used by consumers and businesses.

Finally, I want to touch on a set of measures that I believe are critical in strengthening Canada's financial sector.

Credit unions play an important role in our communities and in our economy. Across our country, credit unions and caisse populaires work hard to serve their members in the best way possible. Measures in Bill C-43 support a vibrant and robust credit union system here in Canada.

Specifically, our government is moving forward to clarify federal regulation of provincial credit unions and support those that want to become federally regulated. Some of these initiatives include access by provincial credit union centrals to federal intervention tools, such as lending by the Canada Deposit Insurance Corporation; ceasing supervision of provincial credit union centrals by the Office of the Superintendent of Financial Institutions; and making changes to the federal credit union framework to promote continued growth and competitiveness of credit unions that want to offer services on a national scale by streamlining the federal amalgamation process from multiple steps into just one.

We understand there is some interest, so as we build on these measures, we will continue to consult with provinces and industry to ensure the federal regime for credit unions is as clear and simple as possible.

Twenty minutes allows me to touch on only a very small portion of the positive measures included in Bill C-43. Some of the other measures contained in the bill include doubling the children's fitness tax credit to $1,000 and making it refundable. This is a way to put money back into the pockets of Canadian families, allowing families to save on putting their children into sports or after-school activities.

The bill also proposes to strengthen Canada's intellectual property regime to improve conditions for business investment and access into international markets while reducing costs and red tape. It also introduces new reporting standards to meet Canada's 2013 G8 commitment to increase transparency for entities operating in the extractive sector. It would create new indices in the national DNA data bank that would contain DNA profiles for missing persons, allowing families of victims to have better tools available to get closure.

Let me remind members that since the global recession, Canada has created nearly 1.2 million net new jobs. This is one of the strongest job creation records in the G7. Both the International Monetary Fund and the OECD still expect Canada to be among the strongest growing economies in the G7 over this year and next. The Canadian middle class is now among the richest in the developed world, ahead of our neighbours to the south for the first time ever. Just recently, we saw the International Labour Organization say in its global wage report that pay gains here in Canada are the second best in the G20. This is great news for Canadians.

These results do not happen by sitting idly and hoping for budgets to balance themselves, nor do they happen without a steadfast commitment to a proven plan for job creation and high growth. In this respect, Bill C-43 delivers a comprehensive and forward-looking agenda that will continue putting Canadians to work and building a strong economic future.

I urge all members of the House to pass this good bill.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I thank the Parliamentary Secretary to the Minister of Finance for his speech. I also want to congratulate him because I think that is one of the few speeches we will hear from the Conservative benches that is mainly on the content of Bill C-43.

We noted both at second reading and at report stage of this bill that most of the members prefer to talk about anything but the content.

I very much enjoy sitting on the Standing Committee on Finance with the Parliamentary Secretary to the Minister of Finance because we have some interesting debates there. We also have a chance to talk about the various aspects of the bill, and we supported certain aspects because we considered them to be good measures. Nonetheless, if we look at the bill as a whole, there are still a number of aspects that are extremely problematic.

One of the most controversial aspects of Bill C-43 is the premium holiday that is being given to small business through the employment insurance fund, a holiday that comes with no guarantee of creating jobs.

The only testimony we heard about this came from the Parliamentary Budget Officer, who talked about the creation of 800 jobs. The only organization that denounces these numbers and claims that this measure will create more jobs is the one that will benefit from this measure. What is more, the government included this measure in the bill without any impact analysis by the Department of Finance.

How can the parliamentary secretary justify the fact that the government does not properly analyze the impact of these measures?

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, my colleague also sits on the finance committee and knows as well as I do that we heard from countless witnesses. We debated the bill at committee, and in fact several different committees had an opportunity to discuss this bill and debate it at length. We have debated it in the House of Commons and are doing so again today.

The member referred specifically to the small business job credit. Our government is very proud of this. It would give back to small businesses the money they were paying into the EI fund. It would give them an opportunity to reinvest those funds, to create more jobs for Canadians, to reinvest in their businesses, to reinvest in equipment to make their businesses more productive and more efficient. It is a great opportunity for small businesses, which happen to be some of the biggest job creators in this country. This credit would give them more opportunities to create new jobs and to enhance their businesses as well.

I just wish that the NDP would get onboard and support this good measure, which is being supported by many groups. It is expected that thousands of jobs will be created as a result of this small business job credit.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, whether it is from the Prime Minister's Office or the Conservatives generally, spin is out there. The Conservative spin is that we are going to have a balanced budget in 2015-16, which happens to be an election year.

I wonder if the member would acknowledge that when the Conservatives took power they were handed a multi-billion dollar surplus from Paul Martin. Prior to the recession the Conservatives turned that budget surplus into a billion dollar plus deficit and now, going into an election year, they are talking about balanced budgets.

Could the member explain to me why a Conservative government has really not been able to balance budgets in any sort of a consistent fashion? As they pointed out, they even turned a surplus into a deficit prior to the recession.

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, that is an interesting question coming from a member of a party whose leader thinks that budgets balance themselves. It is also interesting coming from a member of a party that balanced its budgets on the backs of the provinces and the territories by cutting health care spending, cutting education spending, and cutting spending on individuals and transfers. The Liberal Party raided the EI fund of $60 billion when it was in power. That party balanced its budgets by raiding funds and cutting transfers. That is not what we are doing.

We have increased transfers to the provinces and territories by over 50% since coming to power. In the first two years we were in government we paid down the national debt by over $39 billion. We did all of that while lowering taxes for Canadian families. Average Canadian families now have over $4,000 extra in their pockets at the end of each year because of the tax relief we have given them. We are proud of that.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, I have to laugh at the last question of the hon. member. I understand that he has not been here that long, but he was here in 2008.

I would like to give a little history lesson before I ask my question.

In 2008-09 Canada suffered through a horrendous recession. Some would call it a depression. Canada is the only country in the G8 that has moved out of a deficit situation. We were able to do that and manage the economy to the degree where today we are looking at a surplus position in our budget rather than a deficit.

Could the parliamentary secretary tell us what difference that is going to make and what the government can do for families in general? Could he elaborate on that and tell the House why it is so important?

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, my colleague is absolutely right. When the world entered a global economic recession, the greatest recession since the Great Depression, our Conservative government was ready to take action. That is what it did through the economic action plan.

We invested in our economy and created thousands of jobs. We created brand new infrastructure that will benefit Canadians for generations to come. As a result of that, Canada today is a model for the rest of the world.

I have travelled to other places in the world and am frequently asked how Canada did it. How did we manage to come through this great recession in such good shape, relatively unscathed in comparison with our neighbours and trading partners? It is because we took firm action as soon as the recession started.

Since forming government, we have had the strongest economic growth of any country in the G7. We have created almost 1.2 million net new jobs since the recession. The G20 growth strategy initiative paves the way for 2% GDP growth, or $2 trillion, over 5 years. The IMF and OECD both project that Canada will have among the strongest growth rates in the G7 in the years ahead.

As a result of that, we have been able to help Canadian families by increasing child care benefits and putting more money back into the pockets of Canadian families.

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

Mr. Speaker, we are currently at third reading stage of a budget that we will have only one day to debate. I find that very unfortunate.

Once again, we will be unable to look at the impact the measures contained in this omnibus bill will have because too many of those measures have nothing to do with the actual budget. We have learned from that in the past.

What does the parliamentary secretary think about introducing measures in a budget that have nothing to do with the actual budget and that the provinces did not ask for? I am thinking in particular about how the government wants to take social assistance away from some types of refugees.

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, I remind my colleague that legitimate refugees would be looked after in the same manner they have always been. Canada is an extremely generous and thoughtful country, and it will continue to be generous and thoughtful.

However, we do not want people taking advantage of Canada's generosity. That is why, for bogus claimants, people who are coming here simply to take advantage of our system, provinces and territories would have the option of not giving them services as they see fit.

I would like to remind the member opposite of the good things in Bill C-43 that he should be supporting, like the government prohibiting fees for receipt of paper bills, eliminating pay-to-pay billing; supporting charities, and allowing them to use modern electronic tools to eliminate red tape; creating the DNA-based missing persons index; strengthening Canada's intellectual property regime by cutting red tape and creating efficiencies for small businesses; amendments that would increase the capabilities of social security tribunals in the face of an increasing workload; and establishing a new federal research organization that would strengthen Canada's leadership in the Arctic.

I do not have time to mention all of the great things in this particular bill, but I encourage the member opposite to vote for it and for Canadian families.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-43 at third reading. This is the second budget implementation bill.

I am pleased to rise given that I will be one of the few members of the House who will have the opportunity to speak to this bill at third reading because, as my colleague from Louis-Hébert mentioned, the government has limited debate to just one day. We have just one day to debate a massive budget bill that is 460 pages long and contains 401 clauses. It amends dozens of laws by creating, amending or eliminating legislation. We had very little time to examine this bill in committee given the scope of the measures it proposes. The process was seriously flawed in this case. Not only was the bill much too long to examine in two weeks—that is how long we had to examine it in committee—but there was also not enough time for the committees to which we referred certain sections to do their job properly. I would like to remind hon. members that the only authority these committees had was to hear from witnesses and make recommendations to the finance committee, which did not hear from those witnesses. This process is completely inadequate. Anyone who believes in parliamentary democracy cannot claim that this process is adequate for good governance.

As we have seen with all of the government's previous budget bills, as a result of mismanagement we end up with all kinds of flaws, errors, omissions and mistakes in these bills that must then be fixed in subsequent budget bills. That is not an effective way to govern.

Some elements in this bill show that the government refuses to abide by the principles of good governance.

One of these elements—which is something I just asked the parliamentary secretary about—is probably one of the most costly measures in the bill. This measure gives business that pay less than $15,000 in EI premiums a tax credit, without any conditions, to supposedly create jobs. That money is taken from the EI fund, which, as we know, is projecting a surplus in the coming years. That surplus would already be spent. This measure is estimated to cost more than a half-million dollars—around $550 million.

We would expect to see some guarantee of job creation if the government is forgoing $550 million in revenue from the EI fund. However, that is not the case. The only independent analysis we have had is from the Parliamentary Budget Officer, who estimated that this measure would create 800 jobs. Just 800 jobs. The only organization that appeared before the committee and contradicted the Parliamentary Budget Officer's figures was the organization whose members will benefit the most from this measure. It was the organization that promoted this measure and it was this organization's study on which the government based its decision.

When a measure costs more than half a billion dollars, one would expect the Department of Finance to conduct an independent analysis to estimate how a break from paying premiums would affect job creation. However, the Minister of Finance himself came to committee and told us that the Department of Finance had not conducted any studies, and that the only analysis that he relied on had actually been conducted by the Canadian Federation of Independent Business. The organization does a good job representing its members and determining what government benefits and measures will help them. That is what it does. That is why the government should rely on an independent analysis before adopting this type of measure. The government should not be sub-contracting the finance department's work—which is essentially what happened—and entrusting it to an outside organization that will first and foremost make sure that its members will benefit. This is one of the measures that clearly demonstrates that this government is completely off track when it comes to good governance. I must say that I have rarely seen another government use such a misguided and erratic approach to the economy.

There is no doubt that we are in pre-election mode, because most of the measures in the bill do nothing to stimulate economic growth and job creation, except for the measures we intend to support. In a 460-page bill, we are bound to find some measures we agree with, measures that support economic growth and job creation. However, many of these measures do not do that. Those measures should be studied separately in their own bill, but the government will hear nothing of it.

Even when it comes to measures that actually are related to taxation and the economy, the government has clearly shown that none of the measures, including the tax credit I just talked about, were analyzed by the Department of Finance. They were not analyzed by the Department of Finance or by independent parties, whose analysis the government ignored.

The government is so proud of its move to double the child fitness tax credit. The goal might be laudable, but the measure will be extremely expensive. According to estimates, this will result in more than twice as much lost revenue, and that the money will be given to parents of children who participate in physical activities.

Once again, the goal is laudable, but is the tax credit the right way to achieve that goal? Was an impact assessment done? In committee, one tax expert told us that the tax credit would not achieve—or would go only a short way toward achieving—the government's goal, which is to increase children's physical activity, and that this is not the right approach to take.

The questions that the Conservative members asked at the Standing Committee on Finance had more to do with anecdotes. They said that some of their constituents benefited from the credit and were happy about it. Fiscal analysis of how effective a tax credit is has to be done independently by the government and must be based on fiscal analysis of the numbers, not anecdotes. Governing on the basis of anecdotes is a bad idea. That is an irresponsible way to do it.

Another aspect that justifies our position at third reading of Bill C-43 is the government's lack of prior consultation on a number of measures. As I said, there are 401 clauses. The fourth part of the bill is on measures that have nothing to do with tax measures. This is one of the largest parts of the bill and it deals with a variety of topics that often have nothing to do with the budget or the economy in general. We might expect the government to at least do its homework and consult industry stakeholders, whose opinion should count to ensure that these measures are effective.

What is more, the division on changes to the Aeronautics Act seeks to centralize the powers of the department and the minister with regard to the expansion of and changes to airports. This could increase the risk of eliminating local consultation in cases of controversial proposals because these provisions give the minister discretionary power. We can see this in the case of the Toronto Island airport expansion.

Was the Canadian Airports Council consulted on this measure? No. Was the Canadian Federal Pilots Association consulted on this measure? No. How can the government propose measures like these without doing its homework? Is this the only proposed measure in Bill C-43 where the Conservatives failed in their responsibilities to Canadians? No. I could go on, in part 4 alone.

For example, the bill changes the rules that apply to co-operative credit societies without understanding the full repercussions. Again, was the Credit Union Central of Canada, the agency that represents credit unions, consulted? Was the Fédération des caisses Desjardins consulted? No. How can the government introduce such measures, which will have significant impacts on various industries?

How can the Conservatives claim they are doing due diligence in this process when they have not even bothered to ensure that there are no flaws in these measures or that they will have no adverse effects?

We do agree with some measures, but they have been watered down. They do not fully honour the Conservatives' commitments, including ending pay-to-pay practices, which is when consumers have to pay a fee to receive a paper copy of their bill. This legislation proposes eliminating these fees in the telecommunications sector. That is great.

We on this side of the House have been calling for an end to these pay-to-pay fees for years now. We have come back to this point again and again. I therefore want to ask the government why it chose to stop there, when it promised to eliminate those fees in the banking industry too. The government did not follow through on its commitment. The banking industry must have better lobbyists than the telecom industry. We know that this government does not necessarily have the best relationship with the telecom industry. That is the only reason I can think of to explain this decision. Once again, this is another half measure for consumers, when the government should be going all the way in meeting consumers' demands.

None of the measures the government has proposed, not only in Bill C-43, but also in all of its economic policies, have any real direction. The government has no policy framework to give its efforts some direction so that they do not end up wasted or focused on vote-chasing, as is quite clear in Bill C-43 and as I am sure we will see in the pre-budget consultation report. This is a real piecemeal approach.

This government does not have a proper industrial policy. However, in part 4 of the bill, the government has included measures that water down the Investment Canada Act and make it easier for foreign interests to acquire companies. There were not really any consultations about this measure. The Investment Canada Act needs much more transparency and much more specific guidelines, so that foreign investors have little or no chance of seeing arbitrary or unjustified decisions. The government must be much more predictable for these investors, which is very important if we want to attract foreign interests.

There is no comprehensive health policy or strategy. The government could show leadership. Naturally, we recognize that health is a provincial jurisdiction. However, that does not prevent the government from working with the provinces, taking a leadership role and ensuring that we have a pan-Canadian health policy that the provinces and territories support. However, the government is making unilateral changes, and our fear is that this bill is specifically trying to politicize the Public Health Agency of Canada.

There is no credible policy on the part of the government to ensure retirement security. However, there are amendments that create other investment vehicles without improving income security. Furthermore, the government does not have a coherent energy policy. Despite that, changes are being made to the law on marine transport. Changes are being made to tax rules with respect to the right to organize and the environment in order to allow the oil and gas sector and extractive companies to apply the same rules in Canada as in developing countries. They are actually being allowed to comply with laws that are much less rigorous than what we have here.

Although we could play a role in developing and implementing coherent policies in the countries with which we do business, the government is going in the opposite direction. It is extremely frustrating to come back to the House for third reading with very little time to debate this bill, as was the case in committee.

That was definitely the case at the Standing Committee on Finance. However, other committees, although they had no real power, tried their best to invite witnesses who could speak to those far-reaching bills that should have been split into multiple bills.

This is extremely frustrating because it clearly shows that this country is moving in the wrong direction. The majority of the government members will give their speeches, at least those who will have the opportunity, and will sing the praises of their economic policies.

When the parliamentary secretary answered a question about this government's performance, in 2008 in particular, when the recession hit, he said that the government was a leader in terms of what governments were doing around the world to mitigate the effects of the economic crisis.

However, that is not what the Conservatives did. During the 2008 election, they denied that there was an economic crisis on the horizon. I remember quite well that the Prime Minister played down the looming economic crisis, but we saw how bad it was. On national television, he simply said that it was a good time to buy stocks and invest in the stock market. How completely irresponsible.

We have called on this government to invest specifically in infrastructure, in the sectors where private enterprise could no longer or would no longer invest because of the current economic situation, in order to make up for the gap left by the private sector, which should be investing and ensuring a thriving economy. The government had to play its role, in large part thanks to the opposition. Boasting about taking the lead on this and acting alone is completely irresponsible. That interpretation is a complete misrepresentation of what we are dealing with.

We are not out of the woods yet. We need concrete measures from this government that are not just intended to win votes, but rather are focused on what they claim is their slogan: job creation and growth. That is not what we see in this bill.

That is why we have no choice but to oppose it. Before doing that, I would like to move the following motion:

I move, seconded by the hon. member for Compton—Stanstead:

That the motion be amended by deleting all the words after the word “That” and substituting the following:

“this House decline to give third reading to Bill C-43, A Second Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures, because it:

(a) amends dozens of unrelated Acts without adequate parliamentary debate and oversight;

(b) does not take measures to create jobs and address slow economic growth;

(c) seeks to restrict access to social assistance for refugee claimants, even though there is no financial need and there has been no request from the provinces for such a measure;

(d) makes amendments to patent legislation that could lead to costly legal action against the government;

(e) introduces a tax credit whose effects have not been analyzed by the government and that will significantly diminish the employment insurance fund; and

(f) breaks the government's promises to protect small businesses from merchant fees and to ban banks from charging pay-to-pay fees.”.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I would like to thank my colleague for his speech.

I listened to the Parliamentary Secretary to the Minister of Finance and my colleague, and I would like to point out that we are talking about a worrisome number of subjects that have nothing to do with the budgetary process.

It is also extremely worrisome to hear the parliamentary secretary talking about DNA databases in a debate about a budget implementation bill, regardless of what we think about that issue. It is rather worrisome. Every time we have had to deal with this process since we were elected in 2011, the government has always done the same thing.

As a member of the Standing Committee on Finance, my colleague understands just how important it is for the various witnesses who appear to submit their briefs and talk about their needs.

Does my colleague agree that this type of catch-all bill is insulting to people who take the budgetary process seriously?

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I would like to thank my colleague from Chambly—Borduas for his question, which is very relevant despite the fact that it is a bit repetitive. We ask this same question every time we discuss a budget implementation bill.

The creation of a DNA data bank is important. We support it in principle. However, it has an impact on other things, such as privacy. It is therefore important to properly consider the proposal.

The Standing Committee on Public Safety and National Security did its work on this file. However, it would be a good idea for other sections to also conduct an in-depth analysis of this issue.

When I have the opportunity to do so at other stages of the process, I often ask members questions, particularly Conservative members who give speeches about aspects of this bill. I find it interesting that the Conservative members never answer my questions because they do not really know what impact the measures will have. I am thinking, for example, of the measure that changes the electoral process in the Northwest Territories.

Although this is an important issue, it should be examined independently, not included in an omnibus bill like this one, where it will be extremely difficult to properly analyze the consequences.

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

Mr. Speaker, I thank my colleague. His speech was not just good, it was excellent. Not often do we hear an economic speech in this House that is so on the ball, so well written and so well structured, and I sincerely thank him for that.

He underscored this government's incompetence when it comes to proposing tax measures. He focused on the fact that there was no impact analysis of the tax measures, which I find very worrisome.

Aside from the absolutely horrible and ineffective EI measures, what measures does my colleague think are completely amateurish and appear to have been introduced simply because the Conservatives thought it was a good idea?

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I thank my colleague from Louis-Hébert.

I appreciate getting questions from members. However, I find it ironic that the Conservatives remain seated and would not dare challenge what I said in my speech. I am sure they do not agree with me on everything, but they would rather remain seated. I imagine they will feed us the same old lines, hoping to convince Canadians that their process and their budget bill are credible. However, that is not the case.

Their incompetence is evident in all of the measures they have brought in. For example, I mentioned the tax credit, which they call a job creation tax credit, but which is nothing but an EI premium holiday. These measures have not been properly analyzed by the Department of Finance, although it is their job to do so.

The minister himself confirmed that the department had not done an analysis, but he did not seem bothered by that. Government officials also confirmed this.

If the Conservatives managed a private company the way they are managing government money—and taxpayers are trusting them to manage it properly—the private company would not last long. The Conservatives do not appear to follow the principles of good governance or the basic principles of administration, although this is something one would expect, especially from a G7 country.