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(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;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.

Economic Action Plan 2015 Act, No. 1

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, it is my pleasure to rise and speak for a few moments on Bill C-59. Let me indicate that I will be sharing my time with the wonderful, hard-working member of Parliament for Beauport—Limoilou. I am pleased to have that opportunity.

Bill C-59 is a bill that I cannot accept. I will be opposing Bill C-59 for a number of reasons, not the least of which is that it will implement the unfair tax scheme that the government introduced in its budget to transfer money to the wealthiest 15% of Canadians in the country. I refer, of course, to income splitting and increasing the TFSA.

A number of my colleagues have been talking about these issues in some detail. Since we only have ten minutes, I want to talk a little bit today about a couple of issues that I found particularly noteworthy and that would have an impact on people in my constituency. I will set it up as the good, the bad, and the missing. I will proceed to explain why.

Let me first of all say that the practice of omnibus bills that was introduced by the Liberals has really been put on steroids by the Conservatives. This bill is over 150 pages long. It deals with more than 270 clauses. It would amend dozens of acts, many of which are not within 100 miles of the budget. This kind of bill undermines the ability of MPs to do what it is that we were sent here to do, which is to scrutinize legislation.

Let me talk for a moment about something that I think is good in this bill. A couple of days ago it was called Bill C-58.

The government put Bill C-58, dealing with veterans, directly into this bill, and I will speak to that in a second. I supported Bill C-58, as it was known, because it would have improved the transition process for Canadian Forces members and veterans moving into civilian life. It would have established the retirement income security benefit to provide eligible veterans and survivors with a continued financial benefit after the age of 65 years. It would have established 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 were service-related, regardless of whether they result in permanent disability. It would have established 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.

I mention this in particular because my colleague and neighbouring MP, the member for Sackville—Eastern Shore, has been fighting tirelessly on behalf of veterans and spoke the other day in support of these changes for veterans. The Minister of Veterans Affairs actually accused that member of trying to hold up these changes and delay the implementation of Bill C-58. That is why he stuck it into the middle of this omnibus bill.

What is interesting, though, as has been explained by the member for Sackville—Eastern Shore, is that if the Conservatives had left Bill C-58 as a stand-alone piece of legislation, it would have been in committee today. It would have been dealt with, it would have been reported back by the end of this month, and it would have been ready to be put into law by the end of May or the early part of June.

However, as a result of sticking it into this omnibus bill, it is going to be at least the end of June before this legislation will be completed. In other words, belying his words, the minister is himself intentionally delaying these provisions, and that is something I am completely opposed to. I must say I expected better from the minister than misrepresenting the position of my colleague, an articulate and hard-working advocate on behalf of veterans.

I also want to commend the government for agreeing with a position that the New Democratic Party has taken for many years, something proposed in its platform of 2011, which was to extend the compassionate care benefits for Canadians caring for loved ones. In our 2011 budget proposal, New Democrats talked about moving that out to six months. It is extremely important.

That was in the NDP platform in 2011, before the government introduced changes that denied eligibility to Canadians and placed constraints on which Canadians would be eligible for this benefit. While New Democrats agree with extending it, we face the same problem that exists with the EI benefit program in its entirety, and that is access.

Let me refer to a couple of points that were made by a representative from the Canadian Alliance of United Seniors on this particular issue. He stated:

Extending this program is a good idea, but there still are some major problems with this initiative. The first problem is the fact that the measure can be used only for caring for a terminally ill person dying within six months. This is not good enough as many persons, who are very ill, are not diagnosed as terminally ill in this short time frame, but could still use important care. As well, many persons who are the potential caregivers are not working or are self-employed, and thus will not have access to any funds through this program. So while a good improvement, this program needs more work, because as the population ages....

While there may be a slight increase in costs if we were to deal with the access issues, it is certainly a much more effective way of providing care than the options.

I also want to say that I have talked to constituents who have made representations to me on behalf of ALS Canada and would like to be included in this benefit through a change in the wording to include those who are in “significant need of caregiving because of terminal illness”. It is too bad that was not part of this change.

Among the things that were particularly noteworthy on the negative side is what the government has done with respect to public sector sick leave. The government is overriding its own recently redrafted Public Service Labour Relations Act and allowing Treasury Board to arbitrarily set sick leave and disability plans for employees in the federal public service. This is an affront to the ongoing collective bargaining process. It is completely wrong and it is utterly disrespectful to the whole process of collective bargaining.

I have already spoken about my concern with the government raiding the EI fund once again, just as the Liberals did, to the benefit of the wealthy few. I am also disappointed that the government did not come up with a plan for providing affordable daycare spaces, as New Democrats proposed, at $15 a day. The bill would implement the enhanced universal child care benefit. We have committed to keeping it, but we also think that affordable quality daycare spaces are necessary.

Some of the things my constituents would like to see include: develop a comprehensive strategy to deal with persistent structural youth and underemployment; immediately reverse the federal government plan to raise the retirement age for old age security and guaranteed income supplement to 67; fix the Veterans Affairs by reopening those closed offices; and start to listen to Canadians and show them some respect.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Mr. Speaker, I also want to rise today to debate a particular section of Bill C-59, section 20, which deals with the sick leave and disability programs that the government wishes to impose upon the federal public service. This is nothing new.

Here is a passage from the October 2013 throne speech, in which the federal government announced, and I quote:

It will reform disability and sick-day entitlements and work with employees to get them back to work as soon as possible.

That almost implies that employees are absent not because they are sick, but because they can take sick leave. Before talking about Bill C-59, I would like to talk about a bill that was passed not long after the 2013 Speech from the Throne, and that is Bill C-4.

Bill C-4, which I had called at the time a rather explosive bill, indeed, exploded the relationship between our federal public service and the Government of Canada, in a number of ways. It changed legislation that governed the federal public service and, also, the workers who fell under the jurisdiction of the Government of Canada, through the Canada Labour Code, in a number of ways. I will mention three.

The government gave itself the ability to define “essential services” in a way that had not existed before. It was, before the adoption of Bill C-4, a mechanism where both parties, the employer and the employees, could present their arguments and the body that rendered the decision was a rather respected one. However, this law now, essentially, gives the authority entirely to the government.

The other thing is that the unions will no longer have the right to arbitration, which was a very important tool that has been used repeatedly over the past decades. However, now, arbitration would be an option only if 80% of the members do a job that is considered essential. The government has given itself the right to very easily control the union's ability to use arbitration by taking away the essential right to the renegotiation tool that works well when the parties cannot come to an agreement.

If the unions manage to win the right to an arbitration, the government had also changed the conditions that arbitrators can use. They can only refer to the government's financial situation or recruitment and retention issues in the public service, nothing else. That was not the case before.

Finally, the arbitration boards will no longer be independent. Basically, they report to the government.

In addition, there is another matter that I should mention. The definition of “danger” is changing, which would affect not only the 200,000-plus core public servants, but also the 800,000 other employees in Canada who fall under the Canada Labour Code, and the minister, or one of his delegates, is now responsible for defining “danger”. That sets us back at least 50 years. Given the tremendous progress we have made, regarding the rights of unionized workers in our country, I believe, now, that the public service and the workers governed by the Canada Labour Code are less well-served.

Back, now, to Bill C-59.

I wrote a blog on October 15, 2014, and I will quote it now.

[The President of the Treasury Board] has now proposed replacing the current system of banked sick leave with a new short-term disability plan and has warned that annual sick leave may be limited to five days a year [he has now offered six], which is a draconian cut from the 15 days currently allowed through negotiated collective agreements. Paid sick leave is not a perk that can be given or taken away at the discretion of the employer, but a contractual benefit of employment negotiated over time and representing, along with salary and other forms of leave, the mutually agreed worth of the work provided by employees.

A Treasury Board report has warned of a heavy fiscal liability that the government’s obligation to provide sick leave apparently represents, but the report is mistaken or misleading in several respects. To start with, a theoretical liability is meaningless when a great number of public servants do not use all their sick leave entitlements. Furthermore, the Parliamentary Budget Officer (PBO) has noted that the so-called liability includes work-related injuries and unpaid sick leave which are not relevant to the current discussion and negotiation. The PBO has also argued that the incremental costs of paid sick leave are minimal when departments do not backfill sick employees, which is the case with most departments and agencies. Finally, numbers are skewed when individual sick leave days are placed in the same basket as the forced draining of an employee’s banked sick leave immediately prior to long term disability.

The current system serves an important purpose: workers should not be going to work sick as this would impede their own recovery and may put co-workers—or the public—at risk of illness as well. We should be promoting healthy workplaces.

Let us hope that this situation will be resolved by good faith negotiation and not by another piece of legislation embedded in yet another omnibus bill.

That is the end of my blog entry from October 2014. Unfortunately, that is exactly where we are now. Bill C-59 basically contains a measure giving the President of the Treasury Board the power to do whatever he wants, regardless of existing laws.

This morning we saw a headline in the Ottawa Citizen that made mention of the fact that the President of the Treasury Board is pressuring unions for a sick leave deal by the fall. In Bill C-4, the government established and tilted in its favour the capacity to negotiate, or dictate really, to the public servants of our country. Now, in Bill C-59, we are seeing a provision that would give the President of the Treasury Board the ability to dictate, when he wants, measures that have not been negotiated and that I do not believe would result in agreement. In the budget that was adopted in this House, the government and one of the ministers said that it is cast in stone, is expecting to recover $900 million worth of benefits this year from the sick leave program that our public servants benefit from. Therefore, as far as I am concerned, we have a situation here that is not appropriate.

We should also note some numbers. Of the core public service staff, 25% have fewer than 10 days of banked sick leave, and 60% do not have enough banked days to bridge the gap to disability. Federal public servants currently have 15 days per year and can carry unused days over, which the government wants to stop, however the banked days are forfeited upon retirement. If there is abuse or if conditions need to be changed, five of the largest unions have been negotiating with Treasury Board since last June, apparently there are now 18, and have indicated a willingness to correct measures that may not be as solid as they should be. However, for the government to dictate that we will go from 15 to 6 days, non-accumulative, is not appropriate. That would create a situation in our public service that would not favour the service to the public.

In the past we have had a very solid relationship with our federal public service. Starting in the 60s when the prime minister at the time, Mr. Pearson, recognized the right to strike, and until 1984, 41% of our employees in Canada were unionized. That has now dropped back. In that period of time we had a great compression of the inequalities among the salaries of people. Since then it has been increasing. That is a serious difficulty that not just I but the World Economic Forum has identified as the world's single largest problem. The way we are dealing with our federal public service will not help solve that at all. It is a sad way for us to go, and I would hope that we would consider going in another direction rather than in this one.

[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.

[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.

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.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, we have no shortage of very important work to attend to.

This afternoon and tomorrow we will continue debating Bill C-59, economic action plan 2015 act, no. 1, to implement important measures from the spring's budget, such as the family tax cut, enhancements to the universal child care benefit and a reduction to the small business income tax.

The parties across the way have made no secret of their opposition to the excellent tax reduction measures we have proposed, and this week the hon. member for Papineau explained why. As he told the House on Tuesday, “benefiting every single family is not...fair”. Well, that is consistent with his approach to fiscal policy, that budgets balance themselves.

However, our budget implementation bill will deliver those benefits to every family, because that is the fair Canadian thing to do.

After our constituency week, on Monday, May 25, we will debate Bill S-6, the Yukon and Nunavut regulatory improvement act at report stage. This bill will improve opportunities for economic development north of 60.

After question period that same day, we will take up Bill C-42, the common sense firearms licensing act at report stage, and hopefully third reading. Unnecessary, cumbersome red tape facing law-abiding gun owners across Canada will be reduced, thanks to this legislation.

Also, pursuant to Standing Order 81(4)(a), I am appointing that day, Monday, May 25, as the day for consideration, in a committee of the whole, of all votes in the main estimates, for 2015-16, related to finance.

Tuesday, May 26, will be the fifth allotted day. We will debate a Liberal proposal. I expect the Liberal leader will explain why helping every family is not fair.

We will return to the third reading debate on Bill C-52, the Safe and Accountable Rail Act, on Wednesday, May 27, when I am hopeful that it will pass.

The following day, we will continue the third reading debate on Bill S-3, the Port State Measures Agreement Implementation Act. In debate last week, the hon. member for Charlesbourg—Haute-Saint-Charles said, “Soon, we will pass this bill”. I look forward to her NDP colleagues proving the hon. member right.

Later that Thursday, we will start the report stage for Bill S-7, the Zero Tolerance for Barbaric Cultural Practices Act, which will re-affirm this Parliament’s ongoing efforts to end violence against women and girls.

Second Reading

[Philip Toone, NDP, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, I am very pleased to rise and offer my thoughts on Bill C-59, the budget implementation bill.

Once again, I have a number of reservations about this budget. Sadly, we on this side of the House cannot support it. Once again, the Conservatives have slipped several measures into this budget in order to justify their lament that the opposition does not support certain measures.

For example, we would like to support the measures to assist veterans, but the Conservatives have slipped them into a mammoth budget implementation bill.

At 150 pages, it is shorter than some, like BillC-38, which had hundreds of pages. When the Conservatives were in opposition, they denounced mammoth bills, even if they had only a few dozen pages. Today we are looking at a 150-page bill.

This is stopping us from holding a full debate on the provisions of the bill. This was the case with Bill C-38 and Bill C-45, and now it is the case with Bill C-59. The opposition members, like the government members, who should be keeping an eye on their own government, are simply not able to do so with the means available to them.

I would like to point out that the Conservatives have imposed time allocation for the 96th time, limiting the time available to debate a bill as important as the budget. This makes no sense. The NDP would have liked to support certain measures in the bill, because they are ideas put forward originally by the NDP that the government decided to borrow. For this, I congratulate the government.

For instance, the tax rate on small and medium-sized businesses will go from 11% to 9%. The change will be made over five years, because the Conservatives have decided to spread the measure over a number of years, but it will be quite helpful to SMEs, which are the ones creating jobs in Canada. This measure deserves our support, but unfortunately, the Conservatives have combined measures that we can support with ones that we simply cannot support.

Moreover, the budget contains no measures regarding the Transport Canada wharfs. The Conservatives were very happy to spend time in eastern Canada recently, to underline their $33 million investment in the Transport Canada port divestiture program.

Unfortunately, this is the same $33 million that was announced last year, and $9 million of it has already been spent. There is only $24 million left to be shared among the 50 wharfs that the government is proposing to transfer. Two of the Transport Canada wharfs are in my riding, and just these two would exceed the amount of money that remains for the 50 wharfs across Canada that the government would like to transfer.

When the government says it is helping people, what does that mean in concrete terms? We cannot accept their offer, because it is just too little.

Recently, I heard a Conservative MP saying that the Conservatives had introduced one of the largest infrastructure programs in Canada’s history. However, this money will be spent in the future. They have announced amounts of money that the budget does not cover at all, and they are trying to make us believe that with a budget of $54 billion over 10 years they are going to spend the largest amount of money in Canada’s history on infrastructure.

Unfortunately, the facts tell quite a different story. Last year, the government spent only $250 million of the $54 billion. Its assistance to municipalities and organizations to implement infrastructure programs was extremely discreet.

It is disgraceful that the government is congratulating itself about money it has never spent and that it is trying to make people believe that it is carrying out this program, even though it is a phantom program, since we are unable to find this money.

Furthermore, this budget does not help the regions, and in fact the opposite is true.

The Conservatives say that they have balanced the budget, but once again, they have done so using both the contingency fund and the employment insurance fund.

This year, the government is planning to filch $1.7 billion from the employment insurance fund to balance its budget. It likes to brag about its $1.8 billion surplus, but it is pretty clear where that money came from. The government is even planning to help itself to $17 billion from the employment insurance fund over five years. It is quickly catching up to the Liberals' record. They too bragged about balancing a budget, and they too did so at workers' expense. Since the Chrétien government's reform, the government has taken $57 billion from the employment insurance fund. The Liberals swiped $50 billion, the Conservatives $7 billion. Now they are planning to snatch another $17 billion from the fund.

They say they are going to balance the budget, but they are doing so at the expense of the poorest, the neediest. Seasonal workers and workers who lose their jobs will pay the price. Roughly four out of 10 workers are not even entitled to employment insurance benefits even though they all contribute to the fund. Those people will never see a penny. The government is busy taking money from the insurance fund and, instead of giving it to the people who contribute, funnelling it into programs that will benefit Canada's wealthiest people.

With regard to the Conservatives' proposed income splitting, the Parliamentary Budget Officer clearly said that only 15% of Canadians will benefit, and most of them are among the wealthiest people in this country.

The wealthiest people do not need more help. There are some Canadians who are unemployed and others who are facing job losses. Today, 1,700 employees of Bombardier, a pillar of Canadian industry, are unemployed. They are facing an employment insurance fund that has been pillaged repeatedly by the government. There is no more room to manoeuvre.

When the government says that it has balanced the budget, it means that we are at the point where the government has squeezed programs so much that there is no more room to manoeuvre. Someone who has lost a job or works part time will find it very difficult to make ends meet.

Today's budget is simply not going to help the poor, and that includes measures like income splitting and tax-free savings accounts, or TFSAs. The tax-free savings account limit is being raised to $10,000. In my riding, I can tell you that the number of people who can take advantage of that and put $10,000 into a tax-free savings account is very small. What is more, that money will then not be spent in the riding; it will sit in a savings account.

We need programs that put money in people's pockets and encourage people to have a greater impact on their local economy. Those are the kinds of programs that will help grow the economy. We need to help small and medium-sized businesses, because they create jobs, and that is what will help create wealth. What matters to the NDP is putting money into the pockets of people who really need it, rather than giving more to rich.

I am very disappointed in this budget, which once again gives priority to people who will perhaps vote for the Conservatives in the upcoming election. Unfortunately, the people who are being ignored by this government and who will not get the help they need from this budget are precisely those who are currently unemployed or otherwise struggling. The budget contains very little for those individuals.

However, the budget does include something that I think is good for retirees regarding registered retirement income funds. Now people will have the choice to put off withdrawing from their RRIFs a little longer. This will help people who are retired. However, let us not forget that those who do not have the means to put enough money in an RRSP will have to wait until they are 67 before they can get old age security. They will pay dearly for not having enough money in an RRSP. This was done without warning and without consultation. The government simply imposed this.

These people did not have enough time to adjust their budget and now have a major deficit for their retirement years. This budget will do nothing to help them.

We absolutely need to have a budget that will help the less fortunate. The government has a role to play as an advocate for the people who are most in need. The government should help those in need, but unfortunately the budget before us does not do that.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, I am very glad that my colleague asked me that question because it proves my point.

Without necessarily getting into the wording of the title of the bill, which, again, is “An Act to implement certain provisions of the budget and other measures”, this is a typical example of something that falls under “other measures”.

Whether we are talking about security here or the issues I mentioned in the divisions I deemed important, such as abolishing the long gun registry and the amnesty given to actions that can be perceived as crime or obstruction, these aspects should be part of a separate bill so that the right committee can study all the pertinent repercussions.

As far as the issue of copyright and registration is concerned, my colleague and Canadian Heritage critic often talks to me rather passionately about how all these rights can be reconciled. It is not easy. If we make the companies happy, then the creators are not necessarily happy.

Did this not merit a respectful amount of time for consideration, either at the Standing Committee on Finance or at the Standing Committee on Canadian Heritage, where this issue will likely end up and where we will not even have the right to make amendments? That is the problem with Bill C-59.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, first, and it really is a first, I will be sharing my time with the hon. member for Portneuf—Jacques-Cartier. This is not the first time I have shared my time, but it is the first time I have remembered to mention it. I therefore have the honour of sharing my time with this excellent member.

I quite liked the speech by the hon. member who spoke before me. He is also the chair of the Standing Committee on Justice and Human Rights. I felt like telling him that it is not that we always want to spend more money. We want to spend Canadians' money on Canadians, whereas the Conservatives do not mind if that money is spent on a corporation.

It is all a question of nuance, and that is the big problem with Bill C-59, An Act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures.

In the House, we are facing a time allocation motion—the 96th—which prevents members from across the country from speaking to such an important issue as the budget implementation bill. This bill is over 180 pages long and affects many laws. I especially want to talk in the House about other measures contained in controversial Bill C-59.

Since I do not believe that we will have the time to debate the bill at length, I will talk about three divisions that are of particular interest to me. I am referring to division 10, which concerns the parliamentary protective service, division 18 on the abolition of the long gun registry, and division 20, which deals with sick leave and disability programs. I will start with the last one I mentioned, namely, the division on sick leave and disability programs.

Since this bill was introduced, and even before that—the budget gave us a taste of what was to come—we have had the clear and distinct impression that the Government of Canada was set on what it was going to do, even though, over the years, it had made a commitment to its employees across the country who serve Canadians. I am a labour lawyer. We know how negotiations work. You give and you take. That is what negotiating is. In the end, you come to an agreement. Each party compromises in order to reach an agreement or a collective agreement. That is what happened in negotiations in previous years.

Now, with the stroke of a pen, the Conservatives have decided to take back what they had given to people, who for their part had also given up something in return. Thus, the government won concessions on some things over the years by giving these much talked-about sick benefits and a certain disability plan, that it is now taking back. That is not very democratic.

In my humble opinion, this could definitely be challenged in court and it is certainly not a way to treat those who are working here among the lawmakers in Parliament and delivering services to all Canadians. Make no mistake: this is a blatant lack of respect. When I hear the minister and the President of the Treasury Board saying that over 200 negotiation meetings have already been held, I think to myself that the Conservatives are very good at throwing all sorts of figures around, whenever and however they want, because they lump in pretty much anything and everything. They certainly did not hold intelligent and productive negotiations in good faith on this issue.

What is worse, this is like me saying to someone that I am going to negotiate with him, but then I just go ahead and do whatever I want, even if he does not in any way support my decision. That basically means that there will be no negotiation. That is what this provision of division 20 of Bill C-59 boils down to.

I can say that the NDP is strongly opposed to that way of doing things. If the Conservative government believes that the government negotiators were not able to negotiate the right things over the years, then it needs to do something about that. That is the government's decision. However, it should not take away from people the things that belong to them, and it should not be spreading false information. For example, it should not be saying that all federal government employees abuse the system and their sick leave. I think that is insulting to dedicated employees who work tirelessly to serve the public.

If the government wants to defend an argument, there are many ways of doing so other than spouting such nonsense. The employees who work for us should at least have our respect. This is certainly not a very respectful way of doing things. To all those who have written me to ask what our position is, I can tell them that the NDP's position is clear: the NDP does not support the government's position on this at all. We are going to vote against this measure and we are certainly going to clean up the mess. Heaven knows that there will be plenty of cleanup to do after the October 19 election.

I will now move on to the issue with division 18, which I find most worrisome. When we were debating the time allocation motion, the Minister of Finance answered a question regarding the division on ending the long gun registry. His response concerned me. Let us not kid ourselves. All of the members will hear about the letter from the Privacy Commissioner, Ms. Legault, who wrote to the Speaker of the House. She informed him of some facts that I find extremely worrisome. In short, she said that illegal acts were allegedly committed and documents were apparently destroyed, even though they should not have been destroyed and their destruction was not legal in any way. She even informed the Attorney General of Canada that the RCMP had committed this offence. Our RCMP. I get worried when these allegations come from an officer of Parliament as important as the Privacy Commissioner. Once again, we see a pattern. Just a few sentences in a budget implementation bill and the RCMP is absolved of everything it did illegally without legal authorization. That is absolutely despicable. This government claims to be a law and order government, but only when it sees fit. That is extremely worrisome.

The Minister of Finance gave a big, beautiful, super-intelligent response, saying that this was a promise the government had made in the 2011 election campaign. I listened carefully, because even though I do not necessarily share the government's views on the long gun registry, I can still admit that the Conservatives did promise to put an end to the long gun registry. I congratulate them for following through on their promise. I do not agree, but they did make that promise. However, in their election campaign they never talked about destroying data, nor did they talk about absolving those who may have been involved in the obstruction of justice or committed other offences. They certainly never talked about that.

I invite my colleagues, who have to deal with this issue with very little time, to pay particular attention to that. That is the problem with the government's approach, when it goes ahead with an omnibus bill that changes everything under the sun, even things that do not necessarily have anything to do with its main objective. I do not have high hopes in that regard.

As a final point, I would like to say a few words about division 10, which has to do with the parliamentary protective service. I encourage my colleagues to read that section. It reiterates the importance of our role as parliamentarians and outlines how that protection will be carried out. The RCMP is going to take over this task, under the authority of the Speaker of the Senate and the Speaker of the House. The bill reiterates the principle that the work of parliamentarians must never be obstructed. Once again, I feel as though I am reading one thing, but living another.

My colleague from Toronto—Danforth argued this point in the question of privilege he raised, which was recognized by the Chair but reversed by the government. I heard my colleague from Rimouski-Neigette—Témiscouata—Les Basques say that it was perhaps the last time we would have a chance to speak in the House on a budget bill. The Conservatives managed to balance the budget on the backs of just about everyone. This government has been the most undemocratic government I have seen in my life, throughout all the years that I spent following politics, as both a politician and a regular citizen.

I hope I got everyone's attention so that they will go read these three divisions. Public servants need not worry. The NDP understands them, appreciates their work, and will be there to repair the damage.

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

Mr. Speaker, I am pleased to be able to ask my colleague a question after his speech on the Conservatives' new-found passion for balanced budgets in 2015.

In Bill C-59, they have introduced a balanced budget act to require the government to balance the budget under certain circumstances.

Is my colleague prepared to make this measure retroactive, so that it applies to the Conservatives' last seven deficit budgets? Five of them would not have been accepted, according to the circumstances outlined in the budget implementation bill that allow a government to incur a deficit.

Would my colleague be prepared to make this proposal retroactive, so that cabinet ministers would have to pay out of their own pockets for all the Conservatives' deficit budgets that did not comply with the bill they are introducing today?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I know that members hoped I would get re-elected for another 40 years, but I do not think that is going to happen.

I appreciate the fact that this government, through this budget bill, has recognized the importance of retirement savings and that it is our constituents' money. They have not paid taxes on it, because they use the system we put in place as a government to encourage people to save for their future. However, we now have recognized that they will need that money for a longer period of time.

Let us be honest, the government of the day will get its taxes. The plan for RRSPs is that when earnings are higher, money is put away and one would receive a reduction on taxes at that time, but when one takes that money out, one would pay taxes on it then. We would expect to be earning less when we take the money out and therefore the tax rate should be slightly less. However, what was happening in Burlington, and I believe across the country as we heard from the MP from West Vancouver, because the marketplace was not performing as well in terms of the stock market, people were taking their money out of RRIFs and actually losing money. they were unable to get the return on that money that they could have if they had left it there. They lost money in their income funds, and then we were forcing them to take that money out, which became a double-edged sword. We have recognized that and have made some significant changes to the registered retirement income fund, which is great for savings for seniors across this country.

Therefore, I am very proud to be supporting Bill C-59 and we look forward to having the bill passed and in place for this fiscal year.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I want to thank my colleague from the riding of Oakville for sharing his time with me today. I am very honoured to stand to speak to Bill C-59.

I have made an attempt to speak to all of the budget bills that have come before us, whether at the time the policy is introduced or during the implementation bills. There are normally two. One is in the spring, after the budget has been presented in the House, to implement what is in the budget, and other measures. There is also, normally, an implementation bill in the fall, which I know will not happen this year because we will be out on the hustings, asking people to support us.

It is my pleasure to be here, particularly this year. Over the last number of years, I have been advocating with our finance minister and finance officials for changes to the RRIFs in terms of the minimum withdrawal. I did not come up with that on my own. I want to thank the over 40 individuals who came to my office over the last year or so to talk about the issue of the level of required withdrawals they had to make from their RRIFs. This is not an organized lobby. They are individuals and their families affected by the existing rules.

I also want to thank the member for West Vancouver—Sunshine Coast—Sea to Sky Country, who heard the same thing. We were very active with our colleagues on this side of the House on this issue, encouraging them to speak to the finance minister and financial officials about the possibility of looking at the withdrawal rate on RRIFs.

I was very excited to see that in this budget we have actually moved on it. Under the current system, the minimum withdrawal is 7.38%, and that will go down to 5.28%. Why is that important? Why did those 40 people come to see me, and what does it mean to them?

We have a couple of programs for retirement savings. We have the RRSP and RPP to encourage individuals to save for their retirement. Part of that encouragement is to give them tax relief for the amount of money they put away for their retirement.

A few years ago, the program required people to move that money from an RRSP, or the other savings program, into a registered retirement income fund. I believe the age for that was 68 or 69, but we moved it to 71, knowing that people had some more time and did not need the money that early. The fact is that people are living much longer than when this program was introduced decades ago. People need their retirement money to last longer. They need to be able to stretch it out to meet the needs they will have if they make into their 90s. Many of my constituents are making it into their 90s.

In my riding alone, the senior cohort is not only growing, it is actually the majority. That is over 55; it is not everyone over 71, However, that cohort is growing and moving forward and we need to be there now, making the changes now, so they can take advantage of it.

There is an excellent chart in the budget, which I would like to read into the record. Regarding the changes that we would make to RRIFs, or registered retirement income funds, let us look at the difference that it would make to an individual. Let us make the assumption, as the budget does, that it is $100,000. An 2% inflation rate is built into that, and the return on investment in their income fund is at 5%. Some will do better, some will do a little worse, but this is our chart.

At age 71, one would have $100,000. At age 80, under the existing rules, one would have $64,000 left, but under the new rules of this budget implementation legislation, it would be $77,000, a difference of 20%. This is a significant difference that those individuals could hold on to for the retirement funds that they need for basic living. Under the current rules, at age 85, it would be $47,000, which would go to $62,000. Many of my constituents are living into their nineties these days. At age 90, under the current rules, it would be $30,000. Under the new rules, it would be $44,000, and so on and so forth. It caps at $20,000 at 94 years of age.

This is important because people are getting older in all ridings in the country, not just mine. We expect individuals to save for their retirement. The other option is to look to governments to support everything, but it cannot afford it. The government will not have the tax base to support the growing bubble of retirees who are coming with the baby boom. We have tools for saving, whether that be the tax-free savings account, as previously mentioned, or the registered retirement savings plan, which encourage people to save for their retirement so they will have less reliance on government to support them.

However, what was happening in my riding, because of the minimum, at 7.38%; because of good planning, good strategy and my constituents working hard, understanding their future and saving money; they were being required to take money out, reducing the cash flow that they would need in the years to come.

In the past, we would think that someone 71 years old would have another decade and a half left here. However, people are living longer. Last year I lost a grandmother at 97 years old. I have a grandmother still with me who is 97 years old. I have had two grandfathers aged 89. I have known four great-grandparents. People are living longer, but I will let members know that it does not mean that I will be in this seat for another 40 years.

The House resumed from May 13 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.

Bill C-59—Time Allocation Motion

[Joe Oliver, Conservative, Minister of Finance]

Mr. Speaker, Bill C-59 is in line with our government's plan for low taxes and a balanced budget to promote employment, growth and security. The budget implementation bill contains measures that were announced in economic action plan 2015. Many of these measures are tax-related, but they all achieve one main goal: Canada's long-term prosperity.

It is common practice, even for Liberal governments, to include various measures in a budget. That is nothing new or out of the ordinary.

As to the question about veterans, our Conservative government places the highest priority on making sure that veterans and their families have the support and the services that they need when they need them. Our government made significant progress in key areas, such as long-term financial security, increased family support and removing barriers of eligibility for certain financial benefits.

Canadian Armed Forces veterans who are moderately to seriously disabled as a result of their service will soon have additional benefits after age 65 and new money to support family caregivers. In addition, those from the Canadian reserve forces will receive fair financial benefits from VAC.

These new initiatives are evidence of our government's commitment to ensuring that Canadian veterans and their families are treated with care, compassion and respect.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, this is another sad day. This is the 96th time this government has invoked closure or time allocation in this Parliament. No other government has done that. Canada has never had a government that has abused time allocation and closure as much as this one has. This is a sign of arrogance and incompetence because many of the bills that the government has introduced in the House of Commons have been rejected by the courts. They reject the legislation because the government does not really double-check its bills as much as it needs to.

Sadly, this is the 96th time in this Parliament, which is the worst record of all time. It is three times worse than any other previous government for bringing in closure and time allocation.

The government is going to say that it is trying to do this for our veterans. We will recall that after years of neglect of our nation's veterans and years of just refusing, cutting back on services and treating our nation's veterans with disdain, the Conservatives finally introduced a bill that would help to improve the situation. That is Bill C-58, which has sat on the order paper all week. For days, the NDP has been standing up and asking for unanimous consent to get Bill C-58 for veterans into committee so that veterans can start getting the relief that is called for. Instead, the government is saying that it is going to make them wait even longer with Bill C-59.

The question is very simple. Why are the Conservatives playing so many games with veterans? Why do they not heed the message from Alberta and, instead of showing such arrogance and incompetence, why do they not work with the opposition parties so that they can get good legislation that is not rejected by the courts?