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(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;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

[Jeff Watson, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, I thank the parliamentary secretary for his intervention.

Obviously, we know, those of us who come from farming districts, and I come from one of the better known ones in this country, that the average age of farmers is significantly high. Drawing in young farmers, that succession planning from one generation to the next, becomes important.

I wonder if the member would comment on the capital gains exemption we put in place in this bill and why the opposition should support that if it wants to support farmers.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Mr. Speaker, again, I mentioned that we are increasing the lifetime capital gains exemption to $1 million for farmers.

Often, given the costs of farming and land in the Fraser Valley, it is necessary for the farm to be passed down to the next generation for that next generation to get a start. They are the backbone of our economy. We are pleased to support them, and that is why I am so pleased to support this budget.

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

Mr. Speaker, I rise today to speak to another massive bill. Yet again we are under time allocation, even though there are still so many things to say about this budget.

Today I will focus on one aspect that is important to me, which is that this budget undermines our public finances. I will explain why, but first let me set the stage. The budget announces a surplus of $1.4 billion. This, after seven consecutive years of deficits. Those years were responsible for 25% of the Government of Canada's debt.

There are some measures in the budget that are not bad. In fact, the Conservatives took the NDP's idea to reduce the tax rate for small businesses, and we can only applaud them for borrowing our strategy, since small businesses are job creators.

However, we also have to consider the current financial circumstances. The price of oil has dropped quite a bit. This represents a loss of $5 billion for the federal government. In spite of this, the Conservatives still managed to give gifts to specific groups, for example, by nearly doubling the TFSA limit and bringing in income splitting. The government loves to give us examples of the people who could benefit from these measures, people who are not necessarily well-off. However, we all know that the vast majority of those who will benefit are wealthy.

There are some real consequences associated with TFSAs and income splitting. At a time when public finances are far from healthy, the government is forfeiting billions of dollars in revenue that could have helped it get our fiscal house in order. However, we have to wonder whether this government even wants to get our fiscal house in order. I am not sure.

Let us look at how they managed to achieve a surplus. People need to remember a few things. For instance, 20,000 federal public servants have been laid off in the last few years. Let us not forget that. The result of that, of course, is a reduction in the quality of service. The contingency fund has been slashed from $3 billion to $1 billion. Let us not forget the appropriation of the employment insurance surplus and the sale of the GM shares, on which the government lost $600 million. Obviously, that does not factor into a budget. The Conservatives also want to save $900 million on the sick leave system used by their public servants. I think the current surplus is extremely fragile. It is fragile because, out of everything I just listed, the government used $7 billion in non-recurrent revenues to achieve a surplus of $1.4 billion. This is problematic.

The Conservative government's objective is quite clear. The credit cards are maxed out. It decided to cut its revenues, to offer gifts, not to pay its debts and to leave the problems to the next government or the next generation, depending on how you look at it.

Now I want to talk specifically about one area where the government is counting on saving money. I am talking about the cuts to sick leave. Earning a salary and being compensated is not just about a paycheque. Of course there is the salary, but there is also overtime, group insurance, pension plans and working conditions. However, above all, in addition to vacation time, there is sick leave. When we talk about compensating employees, we are not just talking about salary. It is important to keep that in mind.

I was listening to the parliamentary secretary earlier. His speech was based on an assumption that I do not care for, and that is that unused sick leave will be used for things other than illness. Let us think about that for a moment. I do not wish this on anyone in the House, or on myself, but accidents can happen.

People can be hospitalized. In life, anything can happen to make people temporarily unable to work, and that can last longer than three, four or five days. That is life. Suggesting that people will use banked sick days for purposes other than those for which they were created is an appalling assumption for the government to make. That is a problem.

In most departments, when someone gets sick for a short time with the flu or something else, that position is not backfilled. There are no additional costs to the government in those cases.

There is also something missing from the budget: the cost of the government's proposed new system. That system has not yet been costed, but there will be a cost associated with it. How much will it cost? We do not know. How big a dent will that make in the $900 million? We do not know. I think that when the minister says it will be $900 million, he is getting ahead of himself and making negative assumptions. I would rather see good-faith negotiations between public servants and the government to determine what is fair for both sides.

Once again, this $900 million represents another one-time measure that can be added to the list of other one-time measures. Suppose this happens. I hope it does not because, in my opinion, it constitutes a breach of contract to take back what was already given under a collective agreement. However, if it does, where does that take us?

By the way, public service employees are also taxpayers. Too often people forget that. People believe that public servants are living in a bubble and that they do not pay taxes. Public servants pay taxes like everyone else. They are taxpayers like everyone else and, what is more, they provide services to Canadians. It is because of them that policies become programs, which then become public services. We must not forget that and we need to treat these people with the respect they deserve.

The government is making another cut. This time, it is going after employee compensation directly. Because of the Conservatives, public servants are becoming more discouraged. Do we really need that? Their working conditions are obviously deteriorating, but the members on the other side of the House do not seem to be too bothered by that. They are demoralizing the public service to such an extent that people are going to have to leave, because all of a sudden, their overall working conditions—or what I call their overall compensation—will no longer be competitive compared to other sectors.

What will happen then? Skilled employees will leave and the government will begin to lose its ability to operate effectively. We cannot allow this loss of competitiveness, effectiveness and professionalism to happen. In fact, what I am trying to say is that this measure might only save money on paper.

This surplus is really fragile. The government used a lot of gimmicks to get there. One of those gimmicks is going to have long-term effects on federal public servants. The government is picking on them to try to win votes, and I find that disgraceful. Based on that assumption, I do not believe that we will have a surplus of $1.4 billion as announced by the Minister of Finance.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, I certainly listened with great interest to my colleague's speech. I would like to ask him a question about a subject that he did not cover in his speech, unless I missed it.

I am referring to the measure included in the budget implementation bill that would retroactively absolve the RCMP of breaching the Access to Information Act.

What does my colleague think of this type of retroactive approach intended to absolve those who allegedly broke the law?

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

Mr. Speaker, I would like to thank my colleague for his excellent question, which is a fundamental one in a state governed by the rule of law.

We cannot retroactively endorse acts that were previously illegal. That is fundamental. We cannot play with people's lives and what they do.

Who is to say that this will not create a precedent and that a lawful act committed freely and knowingly one day could not be made unlawful the next?

We cannot play with such fundamental aspects of life in society simply because it suits us. These are dangerous precedents and I completely agree with my colleague on that.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Mr. Speaker, I thank my colleague for his speech. He has a long history of standing up for workers, which is something he has kept up here in Parliament.

I would like to talk about the omnibus nature of the bill, since my colleague touched on some very specific points in this bill, which I give him credit for, because he has developed an expertise in these areas.

However, this bill is incredibly broad and will impose some measures that should not normally be found in a budget. As the citizenship and immigration critic, I can confirm that this bill contains some measures that affect citizenship and immigration and that should be studied much more carefully, outside the context of an omnibus bill. Unfortunately, this context is exactly what will prevent us from studying these measures.

Could my colleague comment on how these measures are being brought before the House?

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

Mr. Speaker, I thank my colleague for her excellent question, which comes up every time the government introduces a massive bill.

One of our main duties here in the House is to legislate. This means that we must be capable of thoughtfully evaluating the different aspects of the laws we want to put in place.

Unfortunately, when the government introduces an omnibus bill to fix all of the problems at the same time, it is an attempt to trick us. Sometimes, it is only after one or two years that we realize that one part of the bill should have been studied more carefully.

My colleague is absolutely right when she says that everything that affects society is worthy of careful consideration, especially when the government is not only imposing a massive bill, but also a limit on debate.

This undermines our ability to produce sound legislation.

[Jeff Watson, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, I am pleased to rise today on Bill C-59, our budget implementation act for economic action plan, 2015.

The good news is that the federal government has balanced its budget and now we are helping families to balance theirs. We are doing so by introducing the family tax cut, the enhanced universal child care benefit enhancements for children under 6, and a new universal child care benefit for those between 6 and 17 years. That would help families balance their budget and get ahead.

There are a number of things I like about the budget implementation bill before us today and in the short amount of time I have, I am going to try to lay them out as quickly as I possibly can and explain why I am supporting this particular measure.

Farm succession is an important issue, drawing in the younger generation of farmers in Essex county. We do about $1 billion-plus in agricultural GDP each and every year. Extending the lifetime capital gains exemption to $1 million for owners of farm businesses, which is contained in this act, would go a long way in succession planning and drawing in our young farmers.

Yesterday, the Prime Minister was in Windsor—Essex, talking about manufacturing. There is a lot to say in Bill C-59. We would be extending the accelerated capital cost allowance out to 10 years. That would give a lot of predictability. I encourage the opposition members, who said they supported that measure, to actually stand in their place to vote for it now.

[The Speaker, Andrew Scheer]

It being 1:15 p.m., pursuant to an order made Thursday, May 14, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the second reading stage of the bill now before the House.

The question is as follows. May I dispense?

[Some hon. members]

Agreed.

No.

[The Speaker, Andrew Scheer]

[Chair read text of amendment to House]

The question is on the amendment. Is it the pleasure of the House to adopt the amendment?

[Some hon. members]

Agreed.

No.

[The Speaker, Andrew Scheer]

All those in favour of the amendment will please say yea.

[Some hon. members]

Yea.

[The Speaker, Andrew Scheer]

All those opposed will please say nay.