Bill C-59 (Historical)

Economic Action Plan 2015 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures

Part 1 implements income tax measures and related measures proposed or referenced in the April 21, 2015 budget. In particular, it
(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;
(b) ensures that amounts received on account of the new critical injury benefit and the new family caregiver relief benefit under the Canadian Forces Members and Veterans Re-establishment and Compensation Act are exempt from income tax;
(c) decreases the small business tax rate and makes consequential adjustments to the dividend gross-up factor and dividend tax credit;
(d) increases the lifetime capital gains exemption to $1 million for qualified farm and fishing properties;
(e) introduces the home accessibility tax credit;
(f) extends, for one year, the mineral exploration tax credit for flow-through share investors;
(g) extends, for five years, the tax deferral regime that applies to patronage dividends paid to members by an eligible agricultural cooperative in the form of eligible shares;
(h) extends until the end of 2018 the temporary measure that allows certain family members to open a registered disability savings plan for an adult individual who might not be able to enter into a contract;
(i) permits certain foreign charitable foundations to be registered as qualified donees;
(j) increases the annual contribution limit for tax-free savings accounts to $10,000;
(k) creates a new quarterly remitter category for certain small new employers; and
(l) provides an accelerated capital cost allowance for investment in machinery and equipment used in manufacturing and processing.
Part 2 implements various measures for families.
Division 1 of Part 2 implements the income tax measures announced on October 30, 2014. It amends the Income Tax Act to increase the maximum annual amounts deductible for child care expenses, to repeal the child tax credit and to introduce the family tax cut credit that is modified to include transferred education-related amounts in the calculation of that credit as announced in the April 21, 2015 budget.
Division 2 of Part 2 amends the Universal Child Care Benefit Act to, effective January 1, 2015, enhance the universal child care benefit by providing $160 per month for children under six years of age and by providing a new benefit of $60 per month for children six years of age or older but under 18 years of age.
It also amends the Children’s Special Allowances Act to, effective January 1, 2015, increase the special allowance supplement for children under six years of age from $100 to $160 per month and introduce a special allowance supplement in the amount of $60 per month for children six years of age or older but under 18 years of age.
Part 3 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 3 enacts the Federal Balanced Budget Act. That Act provides for certain measures that are to apply in the case of a projected or recorded deficit. It also provides for the appearance of the Minister of Finance before a House of Commons committee to explain the reasons for the deficit and present a plan for a return to balanced budgets.
Division 2 of Part 3 enacts the Prevention of Terrorist Travel Act in order to establish a mechanism to protect information in respect of judicial proceedings in relation to decisions made by the designated minister under the Canadian Passport Order to prevent the commission of a terrorism offence or for the purposes of the national security of Canada or a foreign country or state. It also makes a related amendment to the Canada Evidence Act.
Division 3 of Part 3 amends the Industrial Design Act, the Patent Act and the Trade-marks Act to, among other things, provide for extensions of time limits in unforeseen circumstances and provide the authority to make regulations respecting the correction of obvious errors. It also amends the Patent Act and the Trade-marks Act to protect communications between patent or trade-mark agents and their clients in the same way as communications that are subject to solicitor-client privilege.
Division 4 of Part 3 amends the Canada Labour Code to increase the maximum amount of compassionate care leave to 28 weeks and to extend to 52 weeks the period within which that leave may be taken. It also amends the Employment Insurance Act to, among other things, increase to 26 the maximum number of weeks of compassionate care benefits and to extend to 52 weeks the period within which those benefits may be paid.
Division 5 of Part 3 amends the Copyright Act to extend the term of copyright protection for a published sound recording and a performer’s performance fixed in a published sound recording from 50 years to 70 years after publication. However, the term is capped at 100 years after the first fixation of, respectively, the sound recording or the performer’s performance in a sound recording.
Division 6 of Part 3 amends the Export Development Act to add a development finance function to the current mandate of Export Development Canada (EDC), which will enable EDC to provide development financing and other forms of development support in a manner consistent with Canada’s international development priorities. The amendments also provide that the Minister for International Trade is to consult the Minister for International Development on matters related to EDC’s development finance function.
Division 7 of Part 3 amends the Canada Labour Code in order to, among other things, provide that Parts II and III of that Act apply to persons who are not employees but who perform for employers activities whose primary purpose is to enable those persons to acquire knowledge or experience, set out circumstances in which Part III of that Act does not apply to those persons and provide for regulations to be made to apply and adapt any provision of that Part to them.
Division 8 of Part 3 amends the Members of Parliament Retiring Allowances Act to, among other things, provide that the Chief Actuary is not permitted to distinguish between members of either House of Parliament when fixing contribution rates under that Act.
Division 9 of Part 3 amends the National Energy Board Act to extend the maximum duration of licences for the exportation of natural gas that are issued under that Act.
Division 10 of Part 3 amends the Parliament of Canada Act to establish an office to be called the Parliamentary Protective Service, which is to be responsible for all matters with respect to physical security throughout the parliamentary precinct and Parliament Hill and is to be under the responsibility of the Speaker of the Senate and the Speaker of the House of Commons. The Division provides that the Speakers of the two Houses of Parliament and the Minister of Public Safety and Emergency Preparedness must enter into an arrangement to have the Royal Canadian Mounted Police provide physical security services throughout that precinct and Parliament Hill. It also makes consequential amendments to other Acts.
Division 11 of Part 3 amends the definition “insured participant” in the Employment Insurance Act to extend eligibility for assistance under employment benefits under Part II of that Act, while providing that the definition as it reads before that Division comes into force may continue to apply for the purposes of an agreement with a government under section 63 of that Act that is entered into after that Division comes into force. It also contains transitional provisions and makes consequential amendments.
Division 12 of Part 3 amends the Canada Small Business Financing Act to modify the definition “small business” in order to increase the maximum amount of estimated gross annual revenue referred to in that definition. It also amends provisions of that Act that relate to eligibility criteria for borrowers for the purpose of financing the purchase or improvement of real property or immovables, in order to increase the maximum outstanding loan amount.
Division 13 of Part 3 amends the Personal Information Protection and Electronic Documents Act to extend the application of that Act to organizations set out in Schedule 4 in respect of personal information described in that Schedule.
Division 14 of Part 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to require the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to provincial securities regulators in certain circumstances.
Division 15 of Part 3 amends the Immigration and Refugee Protection Act to
(a) clarify and expand the application of certain provisions requiring the collection of biometric information so that those requirements apply not only to applications for a temporary resident visa, work permit or study permit but may also apply to other types of applications, claims and requests made under that Act that are specified in the regulations; and
(b) authorize the Minister of Citizenship and Immigration and the Minister of Public Safety and Emergency Preparedness to administer that Act using electronic means, including by allowing the making of an automated decision and by requiring the making of an application, request or claim, the submitting of documents or the providing of information, using electronic means.
Division 16 of Part 3 amends the First Nations Fiscal Management Act to accelerate and streamline participation in the scheme established under that Act, reduce the regulatory burden on participating first nations and strengthen the confidence of capital markets and investors in respect of that scheme.
Division 17 of Part 3 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to
(a) add a purpose statement to that Act;
(b) improve the transition process of Canadian Forces members and veterans to civilian life by allowing the Minister of Veterans Affairs to make decisions in respect of applications made by those members for services, assistance and compensation under that Act before their release from the Canadian Forces and to provide members and veterans with information and guidance before and after their release;
(c) establish the retirement income security benefit to provide eligible veterans and survivors with a continued financial benefit after the age of 65 years;
(d) establish the critical injury benefit to provide eligible Canadian Forces members and veterans with lump-sum compensation for severe, sudden and traumatic injuries or acute diseases that are service related, regardless of whether they result in permanent disability; and
(e) establish the family caregiver relief benefit to provide eligible veterans who require a high level of ongoing care from an informal caregiver with an annual grant to recognize that caregiver’s support.
The Division also amends the Veterans Review and Appeal Board Act as a consequence of the establishment of the critical injury benefit.
Division 18 of Part 3 amends the Ending the Long-gun Registry Act to, among other things, provide that the Access to Information Act and the Privacy Act do not apply with respect to records and copies of records that are to be destroyed in accordance with the Ending the Long-gun Registry Act. The non-application of the Access to Information Act and the Privacy Act is retroactive to October 25, 2011, the day on which the Ending the Long-gun Registry Act was introduced into Parliament.
Division 19 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to modernize, clarify and enhance the protection of prescribed supervisory information that relates to federally regulated financial institutions.
Division 20 of Part 3 authorizes the Treasury Board to establish and modify, despite the Public Service Labour Relations Act, terms and conditions of employment related to the sick leave of employees who are employed in the core public administration.
It also authorizes the Treasury Board to establish and modify, despite that Act, a short-term disability program, and it requires the Treasury Board to establish a committee to make joint recommendations regarding any modifications to that program.
Finally, it authorizes the Treasury Board to modify, despite that Act, the existing public service long-term disability programs in respect of the period during which employees are not entitled to receive benefits.

Second Reading

[The Acting Speaker, Conservative, Bruce Stanton]

The hon. member for Gaspésie—Îles-de-la-Madeleine will have five minutes for questions and comments when the House resumes debate on this motion.

The House resumed consideration of the motion that Bill C-59, An Act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures, be read the second time and referred to a committee, and of the amendment.

Economic Action Plan 2015 Act, No. 1

[Costas Menegakis, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, before I begin my speech, I would like to say that I will be splitting my time today with my colleague, the hard-working member for Red Deer.

I am very pleased today to rise and be given this opportunity to speak to the economic action plan 2015 act, no. 1.

As we all know in this House, the economic action plan is an important blueprint that would deliver more tax relief to individuals and small businesses; invest in communities; fund research, innovation, and skills training; help our most vulnerable; and maintain Canada's future as a world economic leader. It delivers on the priorities of Canadians, including my constituents in the great riding of Richmond Hill and throughout York Region, the region that I live in, and I am pleased today to highlight a few of the very important measures in the economic action plan 2015 act, no. 1, that would benefit all Canadians.

The first section I would like to speak about today deals with infrastructure.

Infrastructure is a major priority for residents of Richmond Hill and York Region, and indeed across the country. We know that our ability to compete in the global economy depends in part on the reliability of quality public infrastructure. That is why our government spearheaded the largest long-term federal commitment toward infrastructure in Canada's history, the new Building Canada fund. This plan would dedicate a historic $53 billion over the next 10 years for infrastructure. In fact, the annual federal support for infrastructure has increased from some $571 million in 2004 to an estimated $4.85 billion in 2015. That is a 750% increase. This is a very significant investment, and it is precisely why Canada has led the entire G7 in public investment growth over the last decade.

In Richmond Hill, we see the results of our infrastructure investments in every corner of the municipality. They include recreational facilities such as the Oak Ridges Community Centre, a new community centre funded in part from federal money coming through the gas tax fund. About $2.4 million went into this state-of-the-art facility, which is serving Oak Ridges, a growing community in York Region and a key component of the great town of Richmond Hill. There is the Elvis Stojko Arena, to which hundreds of families, if not thousands, bring their children to participate in skating activities. They come not only from Richmond Hill but from the entire York Region area.

We also have Viva and rapid transit buses, and there is a new transit facility in Richmond Hills' Headford Business Park. Federal dollars have helped build the infrastructure my residents have come to depend on every single day.

I need to highlight that York Region is growing in leaps and bounds. It is a region that today numbers more than 1.2 million people. In fact, a lot has been said by members in the House about the fact that this year is an election year and that we will return to find 338 seats in this place. Three of the new seats created in this country are in York Region. It is growing in leaps and bounds, and our government is doing a lot for the families that call York Region their home. That includes great towns like Aurora, Richmond Hill, the city of Markham, the city of Vaughan, and the town of Stouffville. We are doing many things and we are planning to do still more.

Economic action plan 2015 would build on this funding by providing $750 million over two years and $1 billion each year thereafter for a dedicated public transit fund. We are also investing $5.8 billion over six years to build and renew federal infrastructure assets, including Canadian Armed Forces facilities and on-reserve schools. All of these investments will ensure that Richmond Hill, York Region, Ontario, and all of the provinces and territories across Canada will continue to benefit from world-class infrastructure.

The second area I want to touch upon has to do with the folks who have put their lives on the line for the rights and privileges that so many of us take for granted: freedom, democracy, human rights, and the rule of law. I am speaking, of course, about our veterans.

We owe a great deal to our veterans and their families. As a proud member of the Royal Canadian Legion Branch 375 in Richmond Hill and as a frequent visitor to Branch 385 in Aurora, I know our government is working hard to deliver the services and benefits they deserve. That is why I am proud to tell our Legions in York Region that economic action plan 2015 includes many improvements for veterans, such as enhanced benefits for severely disabled and part-time reserve force veterans and increased support for family caregivers. It includes a new critical injury benefit to compensate eligible Canadian Armed Forces members and veterans for the immediate consequences of very severe and traumatic injuries sustained in the line of duty.

We also propose to expand life benefits to veterans to compensate for the loss of employment potential and career advancement opportunities caused by disabilities suffered while serving in the Canadian Armed Forces. Economic action plan 2015 would improve the ratio of case managers and veterans to 30 to 1 so that veterans would receive the level of individualized care they need and deserve.

Our government will continue to stand up for veterans and provide them and their families the much-needed services and assistance they need. Now that they have completed their service to our country, it is time for us to provide the services to them that they deserve.

I want to speak a little about expanding new markets.

International trade and investment are vital to the continued growth of the Canadian economy and the prosperity of people and businesses across Canada. Access to foreign markets and the reduction of trade barriers are essential to helping Canadian exporters grow. That is why we have worked hard since taking office in 2006 to conclude free trade agreements with 38 countries, bringing Canada's total to 43. Before our Conservative government and the leadership of our Prime Minister, there were only five. Now there are 43 trade agreements with countries around the world.

The Canada-European Union comprehensive economic and trade agreement, for example, would provide preferred access to the world's largest and most lucrative market of more than 500 million consumers in 28 countries. It would provide access to a market of $17 trillion, adding $12 billion to Canada's GDP and potentially creating 80,000 additional Canadian jobs. In fact, because of our government's determined actions, Canada has preferential access to more than half of the world's markets.

To assist Canadian companies to take advantage of these new global opportunities, economic action plan 2015 would provide $152 million in trade promotion investments. This money would be used to create a new export market development program and support Canadian firms with on-the-ground intelligence and practical advice on foreign markets. These investments would help the businesses in my riding and businesses across the country take advantage of these new and exciting trade opportunities.

We know that a safe and clean environment supports a high quality of life and contributes to a strong economy. That is why our government has taken significant action to protect the environment. Specific proposals include $75 million for the Species at Risk Act, $2 million to protect salmon habitat, $30 million to extend the recreational fisheries conservation program, $34 million to support weather warning services in the Arctic, $491.8 million to assess and manage risks to human health, and so forth.

The Oak Ridges Moraine is an ecologically significant land form that runs through 32 municipalities, including Aurora, Oak Ridges and Richmond Hill, and nine conservation authorities. Often referred to as the “rain barrel of southern Ontario”, it forms the headwaters of 65 streams, and directly and indirectly delivers clean drinking water to millions of people.

I could go on and on about the many measures in the budget pertaining to our environment and the measures to enhance our national security, but in the interests of time I would be pleased to field questions from the hon. members here.

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

Mr. Speaker, here he is, trying to say that this would be the best budget ever. Well, let us be very clear: over and over again, we have seen the government put through omnibus budgets containing items that do not even belong in a budget bill.

I am from Ontario and I can say that what we see for Ontario in this budget once again demonstrates that the Conservatives just do not understand the priorities of Ontario. Hundreds of thousands of good manufacturing jobs have disappeared. During question period we indicated how many more have disappeared under the current government's watch, yet the Conservatives have offered the barest minimum of support for manufacturing and have failed to build a balanced economy.

We heard the Conservatives saying during question period that they are the protectors of jobs and job creators. If that is the case, why are we losing so many jobs in Canada under their watch?

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, the hon. member was not listening to the answers in question period. If she had been, she would have heard that we have created over 1.2 million jobs since the depth of the global economic downturn. I might add that 80% of those jobs are full time, of which two-thirds are in high-wage sectors.

Like her, I am also a member of Parliament from Ontario. In fact, there are 76 Conservative members of Parliament from Ontario. We are here and we are fighting hard for our constituents every single day.

I want to bring to the member's attention page 379 of the budget document that every member of Parliament was given the day the hon. Minister of Finance presented it to the House. If the member looked there, she would see the four major transfers to the provinces. This is a key point for my hon. colleague from Ontario opposite. The transfers will amount to almost $68 billion in 2015-16. In fact, I will inform the hon. member that the federal transfers to the Province of Ontario have increased from $10.8 billion in 2006, when the Conservative Party took over as government of this country, to over $20 billion this year.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, this Conservative budget will go down in history as one of those budgets that truly favours Canada's wealthy, at a great cost to the middle class of Canada and those aspiring to become a part of Canada's middle class.

The best example that comes to mind offhand has to be income splitting. Less than 15% of Canada's population would benefit from it, and that 15% are Canada's wealthiest.

Let us contrast that to the Liberal plan, which proposes a 7% tax cut across the board for Canada's middle class. We would argue that even the wealthiest Canadians recognize that at times we need to assist our middle class by giving them a tax break. A healthy middle class means a strong, healthy economy. Would the member not agree?

[Costas Menegakis, Conservative, Richmond Hill, ON]

Mr. Speaker, I will not contrast a balanced budget that is delivering to every single family in this country from coast to coast to coast with a Liberal plan that is not balanced and not costed and has a $3 billion hole in it. It is a wishy little pre-election document that the Liberals are promising people over just a couple of months. They have had four years to talk in this House about the things that could be done. Now they have brought out a plan that is not balanced and they expect us to contrast it with something that has delivered proven results for Canadians.

I would say this to the member. This budget will go down in history, but it will go down in history for helping families and communities prosper. We propose to increase the tax-free savings account annual contribution to $10,000, and 11 million Canadians have already availed themselves of this important program.

I also want to mention family support. The member spoke about income splitting, which would help families in which one parent is not earning as much money as the other. They can save up to $2,000 on their taxes. Every single family with children will benefit—not some, as would happen under the Liberals' convoluted plan. Every family with children under the age of six would receive $1,920 per year, and every family with children between the ages of six to 17 would receive $720.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, I rise today to outline some of the reasons I will be supporting our government's budget and its budget implementation bill, Bill C-59.

Before I go into the details about the new investments and the tax relief the budget proposes and how Bill C-59 would make this happen, I want to stress how important it is that our government has had all of these significant achievements while balancing the budget. An election promise made is an election promise kept.

As a result of our government's fiscal management, our country emerged from the recession faster and stronger than virtually any other advanced economy. When the recession ended, we charted a course to a balanced budget, but not by following the Liberal approach to budget management of making drastic, sudden cuts to social and health care transfers, or by raising taxes. Instead, we did the opposite, increasing provincial transfers to record levels to help the provinces get their fiscal houses in order and lowering taxes to put money back into the pockets of families and small businesses.

To the first point, Alberta alone would receive $5.5 billion in transfers this year, which would be an increase of 145% over those of the previous Liberal government.

We then focused on controlling operating expenses for federal departments by reviewing all spending to make government operations more efficient. Using this approach, since the height of the great recession the deficit has been reduced from $55.6 billion to a surplus of $1.4 billion for 2015-16.

Due to the growth in Canada's economy and the elimination of the deficit, our total government net debt burden is the lowest of any G7 nation and among the lowest of the advanced G20 countries.

As a result of our efforts, our government has been able to cut taxes 180 times, resulting in our country's lowest tax burden since the 1950s.

To ensure that Canada keeps its fiscal house in order, economic action plan 2015 includes a number of important measures to help Canada stay on the right track, most notably through balanced budget legislation.

Part 3, on page 38 of Bill C-59, presents the framework for this balanced budget legislation by mandating that should Canada again enter into deficit, the finance minister would be required to testify before the House of Commons Committee on Finance within 30 days and present a plan, with concrete timelines, to return to balanced budgets.

Moreover, should the deficit be due to a recession or other extraordinary circumstances, operating spending would be frozen, as would the salaries of cabinet ministers and deputy ministers government-wide.

If, on the other hand, the deficit was due to mismanagement, operating budgets would be frozen automatically, and the salaries of cabinet ministers and deputy ministers alike would be reduced by 5%.

This approach would ensure that increases in spending that might be required to respond to a recession, war, or some natural disaster would be temporary, targeted, and timely.

In central Alberta, one of the key pillars of our local economy is agriculture. This budget, like previous ones, would continue to support agriculture and farmers in our great region and throughout all of Canada.

Agriculture is truly the backbone of our nation. As a farmer, I understand the difficulties individuals in the agriculture sector face. Economic action plan 2015 would embrace the economic importance of agriculture by increasing the lifetime capital gains exemption to $1 million for farmers and fishermen, allowing them to keep more of their lifelong earnings for retirement.

Additionally, this budget would provide funding to the Agriculture and Agri-Food Canada Market Access Secretariat, allowing the agriculture sector to take advantage of new free trade deals to expand and diversify into new markets.

The economic action plan of 2015 would build upon previous support for farmers and agriculture, including over $3 billion in investment, including provincial and territorial contributions, toward innovation, competitiveness, and market development for Canada's agricultural sector under Growing Forward 2.

We have also fully delivered on our government's commitment to marketing freedom by increasing marketing choice for western Canadian grain farmers by facilitating the commercialization of the Canadian Wheat Board, which will ensure a strong and competitive grain handling and shipping network across Canada.

Another major issue that is quite close to my heart is, of course, our government's support for seniors. Through this budget, our government has proposed a number of changes to help make seniors' lives better and to help them stay in their homes longer.

Having just a small amount of time, I can only focus on a few of the many policy initiatives our government has proposed. The first I would like to speak to is the increase in the tax-free savings account.

Seniors have embraced the tax-free savings account for their saving needs. This budget, through the BIA, proposes to increase the annual contribution limit to $10,000. This, coupled with changes to RRSP withdrawal amounts, would provide seniors with even greater opportunities to manage their life savings.

As of the end of 2013, nearly 11 million individuals had opened TFSAs, and the total value of assets held in TFSAs was nearly $120 billion. While the opposition continues to spread misinformation that the TFSA accounts are only for the rich, the facts cannot be overlooked. In the income category of $20,000 to $25,000, over 124,000 Canadians maxed out their limit. Of those who have maxed out their TFSAs, 60% earn less than $60,000. Some 856,000 Canadians aged 65 and over have maxed out their contributions, and another 1.3 million 55 and older have done the same. Close to 2. 7 million seniors had TFSAs by the end of 2013, and 60% of seniors who had TFSAs earned less than $40,000.

I think this is clear proof of how tax-free savings accounts are beneficial for all Canadians and are especially embraced by seniors and middle- to low-income individuals.

The second major policy change to support seniors I want to focus on is one that would help seniors stay in their homes longer. This is important and much needed, because as seniors age, their homes become increasingly less accessible, and they are often forced to move into more accessible housing, such as retirement and nursing homes. This can be incredibly difficult and stressful.

Our government recognizes the challenges seniors face in remaining mobile and independent and as a result has introduced a new home accessibility tax credit. This proposed tax credit would be for home improvements that would allow a senior or a person eligible for a disability tax credit to be more mobile, safe, and functional within his or her own home. This 15% non-refundable income tax credit would apply to up to $10,000 in eligible home renovation expenditures, providing up to $1,500 in tax relief. Through the home accessibility tax credit, Canadian seniors would be able to stay in their homes longer, I cannot stress enough how important that is.

The last initiative I want to talk about is the extension of the employment insurance compassionate care benefit from six weeks to six months. This is important to all Canadians, because from time to time, a large number of Canadians are forced to leave their jobs to take care of their loved ones. This can put a huge financial stress on families. Our government has recognized this problem, and through economic action plan 2015, an allocation of up to $37 million has been made annually to extend employment insurance compassionate care benefits. This would help reduce the stress at a very stressful time and help families help themselves.

In summary, it is clear that our government's economic action plan of 2015 and this budget implementation act, which sets the framework for legislative change, would be beneficial for all Canadians.

Our expanded limit for tax-free savings accounts of $10,000 would allow hard-working Canadians to save more.

Farmers throughout Canada would continue to benefit from our aggressive trade policy, which has opened up new markets that will help grow our agriculture sector and our economy as a whole. The increase in the lifetime capital gains exemption would give farmers and fisherman more money they can use for retirement.

Through our balanced budget legislation, future generations would not live in fear of being saddled with irresponsible spending and mountains of debt.

All in all, this entire budget is something to be proud of, and I encourage members of the opposition to join me in supporting it.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my colleague for his speech.

I am always surprised to hear members on the government side brag about so-called family measures. I would like to draw my colleague's attention to two regular columnists for Les Affaires, a very reputable business newspaper in Quebec. These columnists are both tax experts. Dany Provost's editorial was called “Conservative budget: nothing impressive”. He warned families that there were pitfalls associated with the new universal child care benefit, the UCCB. He told people not to spend the cheque coming in July on their summer vacation since they will have to pay a big chunk come tax time next year. Josée Jeffrey, a tax expert and financial auditor, said that the UCCB was all smoke and mirrors. I would like to know whether my colleague agrees with the opinions of these financial planning and tax experts.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, I certainly do not agree with their comments. Of course, I do not mean the opposition's comments particularly but the comments of the person the member was quoting. I have heard it mentioned by the Liberals that if we give people money, they are going to spend it on popcorn and beer. I have heard that, but I have not seen that from any credible source anywhere else.

It is rather important that people recognize some of the help that is going to be there for Canadians and certainly for families with children. One of the things we continue to hear, which I do not think people recognize, is that increasing the child care expense deduction dollar limit would allow more money to come into a family unit. If it was increased by $1,000 for every child, which is part of the budget implementation act, it would also help on the other side. The concept is that those who have less money would be taxed less, so there will be more dollars in their pockets.

I have trust in Canadians to handle their funds.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, maybe I could give the member a clear example of why the Conservative budget is unfair in its taxation policy.

Let us use the tax-free savings account as the example. Of people who make between $20,000 and $40,000 a year, between 5% and 6% would actually max out the benefits of that tax break. For people making over $200,000 a year, it would be well over 30% and would probably closer to about 36%. What they are doing is providing a tax break that the wealthiest in Canada are going to be able to take advantage of. Not very many of the constituents I represent have an extra $10,000 kicking around the house that they can invest in a TFSA. That is where Canadians sense that the government of Canada is not being fair.

I am wondering if the member can explain to my constituents and Canadians why he believes that what I just said is wrong, because it is true.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, with all due respect to the member opposite, it is not true.

Those who do not have a lot money also do not have a lot of opportunities or a lot of instruments for saving. This is one they can look at and deal with. We can see that it happens. When seniors are being forced to take money out of other various financial instruments, they want some place to put it. They are not necessarily going to be spending it all at that point, so they need to have that type of flexibility. It is important to recognize that.

All one has to do is go through the numbers. I went through that. I said that of the total number of people who have maxed out their TFSAs, 60% earned less than $60,000. That is $5,500 per year they have been putting in maxing out their TFSAs. There are lots of other opportunities for investments for some of his friends, I guess, who are in that $200,000-plus club, but they will not be using a TFSA as their main instrument for investment.

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs and Consular]

Mr. Speaker, many of us have come here on a commitment of fiscal management and we want to see government balance its books. It is important to us that the amount of income coming to the government is what it spends. I just want to take a minute and ask this for the member for Red Deer.

The member had outlined that our government achieved a balanced budget using a very different method from the one the previous Liberal government used. I wonder if he could explain a bit further what he meant by that.

In light of the comments of the Liberal member opposite here, I think the Liberals really have a hard time accepting the fact that they should allow Canadians to save their own money and spend their own money. They seem to want to claw that back from them. Does the member know anything about Liberal clawbacks and their trying to claw money back from Canadians?

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, sadly I know a lot of that, after having been a hospital board member and chairman for a number of years, back in the 1990s when the money was ripped out of the provincial coffers for social programs, as well as for health care. It was masterfully done, though, because if we ever listen to anybody at this point in time, they will say, “Remember how Ralph Klein destroyed the health care in Alberta”. It is not true. The dollars were taken away from the province by the Liberal government, and this is an issue that can never be let go.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, I rise to speak to Bill C-59 today, the Conservatives' latest omnibus budget bill.

Bill C-59 comes from an old tired government that has completely lost touch with Canadians.

It is clear that today, as I share my time with the member for Ottawa—Vanier, we both agree that the government has to do more to create jobs and growth.

This morning we received yet another reminder of that. Thousands of workers—in fact, 1,500—at Bombardier in Montreal and Toronto are to be let go. This is not an isolated incident. It is part of a long-term trend of stagnant economic growth and a flatlined labour market.

In fact, we have 169,000 fewer jobs for young Canadians today than in 2008. We have twice the number of long-term unemployed in Canada, the people who are unemployed for over a year. In fact, in my riding and part of the riding next door, Kings County, Hants County, and Annapolis County, in that Stats Canada catchment area, unemployment has gone from 4.8% in 2008 to 11.6% today. There are 10,000 fewer jobs in Kings County, Hants County, and Annapolis County than in 2008.

Too many Canadians have been laid off or face having to replace full-time work with part-time jobs. This legislation does next to nothing to help those Canadians. Canada needs a government with a plan to help create jobs and growth. The Canadian economy has not just stalled; it is in reverse. According to Stats Canada, our economy has actually been shrinking in 2015.

Unfortunately, this legislation does not have a plan for jobs and growth and does not do anything to strengthen Canada's struggling middle class. Instead, the Conservatives have bundled together a large number of unrelated measures that simply do not belong in a budget bill. I would like to give a few examples.

Bill C-59 makes retroactive changes to exempt long gun registry data from Canada's information and privacy laws. That seems like an odd provision in a budget bill. What is more worrisome is that this morning the Information Commissioner revealed the real reason behind this, that she has recommended laying charges against the RCMP, almost two months ago, for withholding and destroying data in the gun registry.

Apparently the RCMP jumped the gun and destroyed the data while legislation to repeal the registry was still before Parliament. That shows a shocking disregard for Parliament, but it is also against the law.

How did the Conservative government react? Richard Nixon would have been proud of the Prime Minister. Instead of listening to the Information Commissioner and laying charges, the Conservatives decided to retroactively rewrite the law. They are using Bill C-59 to go back in time and to make legal what was illegal. In the words of the Information Commissioner, Bill C-59 “sets a perilous precedent against Canadians' quasi-constitutional right to know”.

Bill C-59 also includes other measures that have no business being in a budget bill. It introduces new rules on the use of secret evidence in court as well as the use of biometric information in immigration applications. It establishes the parliamentary protective service and new security force on Parliament Hill. It makes piecemeal changes to the Copyright Act. None of these items belong in a budget bill. None of them have to do with the fiscal framework of the country.

The Conservatives have bundled them together in a single bill in order to limit scrutiny and ram these measures through Parliament in a matter of weeks. The process is sloppy. It leads to mistakes, and inevitably with the government, it will use another omnibus bill to correct the errors from the last omnibus bill. It is a never-ending cycle of Conservative incompetence and disrespect for Parliament.

One example is in the area of income splitting. Bill C-59 includes the Conservatives' fourth attempt at passing the correct income-splitting rules. Canadians already know that this income-splitting scheme is unnecessarily complex. Now we have to follow an 85-step process just to apply.

Now it turns out that the process is so confusing that even the tax experts writing the rules got them wrong the first three times they came to Parliament. On Monday night, a finance official admitted that there is an error in the income-splitting rules.

The Conservatives made a mistake that is shortchanging some families by as much as $750 on their 2014 tax return. It is affecting Canadian families that qualify for both income splitting and the tuition, education, and textbook tax credits.

This error was in the ways and means motion that the House of Commons passed last November. It was there again in the ways and means motion that the House passed on March 25. It showed up a third time in Bill C-57.

This budget bill represents the Conservative government's fourth attempt to get it right. This is the Conservatives' flagship policy. Income splitting is not just unnecessarily complex; it is also unfair, unreliable, and bad for growth. It is unfair because it excludes 85% of Canadian households from any benefit whatsoever. It does nothing to help some of Canada's most vulnerable parents, single parents, or low-income families.

The Parliamentary Budget Officer issued a report showing that high-income families are far more likely to qualify for income-splitting benefits. In fact, families in the top quintile of income are the most likely to qualify. The PBO's report also shows that the average benefits under income splitting rise with family income. Families earning at least $180,000 per year get the highest average benefit. Yet these are exactly the people who need the help the least.

Income splitting is also unreliable. Just because people qualify for it one year does not mean they will benefit the next. The benefit can vanish whenever circumstances change. For example, a family can become disqualified when primary earners lose their job or see their pay drop.

Finally, the PBO has shown that it would actually weaken Canada's economic growth rather than strengthen it. The PBO estimates that income splitting will lead to the equivalent of 7,000 fewer full-time jobs in the Canadian economy.

The Liberals, and the Liberal Party of Canada, have a plan that is fair, simple, and good for the economy. We would replace the Conservatives' income-splitting scheme and a complex array of benefits with a single tax-free monthly cheque that is easier to receive and means more money in the pockets of low- and middle-income families.

Under the Liberal plan for fairness, a typical two-parent family with two children, earning $90,000 per year would receive $490 every month, tax free. That is $2,500 more per year than under the current Conservative plan. A Liberal government would also make the tax system fairer and cut the middle class tax rate by 7%. That is a $3 billion tax cut for those who need it the most.

We would ask the wealthiest Canadians to help, to pay a little more so the middle class can pay less. Canada's middle-class families are tapped out. They are struggling to make ends meet. They have not had a pay raise or a real tax cut to benefit their families in a long time.

Fairness means giving more to the middle class and those working hard to join it. The Conservatives, on the other hand, are only helping those who need the help the least.

Canadians now have two fundamentally different choices. The Conservatives offer tax breaks to the wealthy. We, as Liberals, believe in a country that works for everyone. We believe we can do more for those who need it the most by doing a little less for those who do not need the help.

The Conservatives are out of touch with the challenges faced by middle-class families. They are out of ideas on how to strengthen the economy. Canadians know it is time for change. It is time for a Liberal government with a plan for fairness for Canada's middle class. We will present to Canadians a plan for jobs and growth, investing in infrastructure, investing in people and skills for the jobs of today and the jobs of tomorrow.

Our priority is clear, we must strengthen those at the heart of our economy, middle-class Canadians who have not had a decent raise in 30 years. We cannot have a sustained long-term economic recovery without a strong middle class.

Liberals will continue to present solutions to grow our economy and to help Canada's struggling middle class. We will give Canadians a real choice for hope for a better future and a plan to actually lead us to that future in October when Canadians have an opportunity to choose a better government.