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(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;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

[Paulina Ayala, NDP, Honoré-Mercier, QC]

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

There is one thing I am very worried about. When we talk about budget measures, we are talking about economic measures to make the country's economy work. However, when the government introduces yet another omnibus bill, it includes important measures that have nothing to do with the budget.

My question for my colleague is this: as a legislator, does she not feel that democracy is undermined every time there is an omnibus bill and the House passes legislative measures that have nothing to do with the budget? Then the government asks why we did not support those measures.

I certainly find that this shows a lack of respect for our work as legislators.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, like any household, the federal government puts forward a comprehensive budget. When a household puts forward a budget, it is not just about the money that it is putting in and the money going out; it is also about the goals and the aspirations and the priorities as a family.

This budget does exactly that. It is looking at universal child care benefits and it is looking at extending the compassionate care leave. It is examining what our goals are as a government and how we are going to spend our money. To be quite frank, it is more than a line of revenue in, revenue out, and normal costs. It is an aspirational document and a critical document. It is a road map for the government's plans.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, if we were to canvass Canadians at any given point in time in the last number of years, we would always find that health care was one of the top three or four issues. That has been fairly consistent for years.

In recognition of just how important health care is to Canadians, it is very important for the government to reflect those priorities. However, what we have not seen the government do is work with the different entities, particularly our provinces, to come up with a more comprehensive health care policy, to use the member's words. The government has fallen short in working with our premiers. We see that in how the Prime Minister has not met with the premiers and has never put health care on the agenda of a first ministers conference.

I wonder if the member can indicate to the House whether her government believes that it can provide the quality health care that Canadians want to see when the Prime Minister is unwilling to meet with the premiers to talk about one of the most important issues in Canada.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, with all due respect, that was a bit of an absurd comment. If he has been paying attention, he knows that the Minister of Health has been meeting with her colleagues regularly. They are moving forward on a number of initiatives that are important to Canadians.

As I outlined in my speech, the provinces have an important role in the delivery of health care, but what the federal government is really focusing on is research, innovation, information, technology, and providing that umbrella of important support. The needs in a province like Newfoundland and Labrador are very different from the needs in a province like British Columbia, and those are very different from the needs in downtown Toronto.

Acknowledging the differences of our provinces and working in a respectful way is the only route forward, and it is important to do so.

[Bernard Trottier, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie]

Mr. Speaker, my colleague commented in her speech about the gap between the annual increase in the Canada health transfer of 6% a year and what the provinces are actually spending.

Her province of B.C. is an example. I just checked the report from the Canadian Institute for Health Information entitled “National Health Expenditure Trends, 1975 to 2014”, which says that B.C. only increased its health care spending by 3.2% in 2011, 4.2% in 2012, 2% in 2013, and only 1.8% in 2014. There is a similar trend in Ontario over that same time frame. It was 2.5% in 2011, 1.9% in 2012, 1.6% in 2013, and 1.6% in 2014.

Given all of the funds that we are providing through the Canada health transfer, why are the provinces not necessarily spending those funds on health care?

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I want to reiterate that the transfers in 2014-15 are $32.1 billion and are going to go up to $40.9 billion in 2019-20.

As my colleague has indicated, the provinces were on an escalator that in a short time was going to be consuming over half of their budgets, and they recognized that they had to do something. They recognized that they had to focus on innovation and all the other areas I have talked about. What we have done as a federal government is committed in a way that gives them confidence about what their transfers are going to be.

I have to point out that unlike the Liberal government, which actually balanced its budget in the 1990s on the backs of the provinces' transfer payments, we are back to a balanced budget and yet have committed to unprecedented increases in transfer payments.

[The Acting Speaker, Bruce Stanton]

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Thunder Bay—Superior North, The Environment; the hon. member for Ahuntsic, Employment.

Resuming debate, the hon. member for Mississauga—Streetsville.

[Brad Butt, Conservative, Mississauga—Streetsville, ON]

Mr. Speaker, it gives me pleasure today to rise in the House to speak at third reading stage of Bill C-59, economic action plan 2015 act, No. 1.

At the outset, I would like to congratulate the Minister of Finance, the hon. member for Eglinton—Lawrence, on his first budget, a very comprehensive budget, one that I am very proud to be a member of a team and a government to support in the House. I wish him well for many more balanced and successful budgets in the future.

This bill would legislate key elements of economic action plan 2015, which include measures to support jobs and growth, help communities prosper and ensure the security of Canadians. The bill also includes the measures that were contained in Bill C-57, the support for families act, and Bill C-58, the support for veterans and their families act.

However, perhaps the most significant part of the bill is that it would return Canada to a balanced budget and would enshrine in law balanced budget legislation reflecting our government's responsible fiscal management policy, which is creating jobs and putting more money back in the pockets of Canadians. A balanced budget allows the Government of Canada to cut taxes further for Canadian families, individuals and businesses.

My riding of Mississauga—Streetsville has the second highest number of families with children living at home in all of Canada. That is why our government's family tax cut and benefits plan really hits home in my community.

Our government will increase the universal child care benefit for children 6 and under to $160 per month, and extend the benefit for children aged 7 to 17 by $60 per month. This initiative puts thousands of dollars a year back into the pockets of families in my riding, and allows parents to make their choices for their children on how that money will be spent. It is important to note that the increase to the UCCB is retroactive to January 1, 2015 and that the new benefit will start to flow for families this July.

Further, our government is instituting a family income-splitting program that would allow a higher income spouse to, in effect, transfer $50,000 of taxable income to a spouse in a lower tax bracket, effective for the 2014 tax year. Some families would save as much as $2,000 a year in total family tax paid, yet another example of how we are putting more money back into the pockets of hard-working Canadian families.

Economic action plan 2015 would also increases the child care expense deduction dollar limits by $1,000, effective for the 2015 tax year. The maximum amounts that can be claimed will increase to $8,000 from $7,000 for children under age 7, to $5,000 from $4,000 for children aged 7 to 16, and up to $11,000 from $10,000 for children who are eligible for the disability tax credit.

Millions of Canadians have taken advantage of the very popular tax-free savings account. TFSAs are an excellent way for Canadians to save tax free and have that money available in the future for their personal needs. Many Canadians have maxed out at the old $5,500 a year limit, and many would contribute more if allowed. I am very pleased to report that economic action plan 2015 would raise the maximum contribution limit to $10,000, effective in 2015 and subsequent years.

Bill C-59 would also reduce the minimum withdrawal factors for registered retirement income funds to permit seniors to preserve more of their retirement savings to better support their retirement income needs.

The bill would also create the home accessibility tax credit to assist seniors and disabled Canadians offset renovation costs to make their homes safer and more accessible so they could live independently and remain in their homes.

Mississauga—Streetsville is home to many seniors who tell me they want to age gracefully in place, remain in their cherished home as long as possible and be able to make modifications to improve their living conditions. The home accessibility tax credit is welcome news in my community.

Branch 139 of the Royal Canadian Legion is located in the village of Streetsville. I am a member and I visit the legion regularly to support its initiatives. I have met with veterans there and I was honoured to present World War II “V” pins to dozens of these brave Canadians. That is why I am pleased economic action plan 2015 would ensure that veterans and their families receive the support they need by providing a new retirement income security benefit to moderately and severely disabled veterans. It would expand access to the permanent impairment allowance for disabled veterans and would create a new tax-free family caregiver relief benefit to recognize the very important role of caregivers.

This government values and supports the brave women and men who have served in our Canadian Forces and we will ensure that our veterans get the full support they need and deserve.

During pre-budget consultations and meetings, I had the opportunity to meet with groups like ALS Society of Canada, the MS Society of Canada and others about the compassionate care benefit provided under the employment insurance system.

Bill C-59 would extend compassionate care benefits from the current six weeks of coverage to six months to better support Canadians caring for gravely ill and dying family members. This change would benefit thousands of families across Canada when they need the financial and emotional support the most.

The bill would also implement very important measures for supporting jobs and growth. Our government would reduce the small business tax rate to 9% by 2019, lowering taxes for job-creating small businesses and their owners by $2.7 billion between now and 2019-20. This is very good news for members of the Streetsville Business Improvement Association and other companies operating in Mississauga—Streetsville. Predictable lower taxes each and every year is an important signal to the small business community.

Recently, I have had the opportunity to announce several investments in Mississauga, through the Federal Economic Development Corporation of Southern Ontario. These strategic investments assist leading edge companies grow and expand, create new high-wage jobs, and contribute to research and innovation.

Economic action plan 2015 would see the budget deficit reduced from $55.6 billion during the height of the recession and now with a $1.4 billion projected surplus. All Canadians should be thanked and should be proud for their hard work and their support of this government as we return Canada to balanced budgets.

I ask all members of the House to carefully read Bill C-59 and the important initiatives contained within it, and to rise to support the bill so we can continue to ensure Canada is strong, proud and free.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, we are here to discuss the budget, Bill C-59. However, like other budget bills. this is more like a telephone directory for many of our towns and cities across the country because it has so much other stuff buried within it that has very little to do with the budget.

How can my colleague justify putting in the budget bill legislation that would retroactively change an existing law and justify the shredding of the long gun registry data?

[Brad Butt, Conservative, Mississauga—Streetsville, ON]

Mr. Speaker, Parliament has been very clear on the long gun registry. The majority of the members of this Parliament voted to scrap the long gun registry.

When a registry is scrapped, it means we get rid of the documents. The RCMP was acting on the instruction of the democratically elected members of Parliament who decided to end the long gun registry and ensure the documents associated with that registry were eliminated. The RCMP is doing its job.

We are ensuring, through one section of this bill, that the appropriate legal protection is in it as we move forward. The RCMP is absolutely acting on the will of Parliament.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, during the debate of the budget implementation bill, we hear a lot about the bigger picture issues, whether it is health care, the idea of balanced budgets, infrastructure, tax fairness and so on.

What is important is that we do not forget our communities, the communities we represent and for which we advocate. I think of Winnipeg North, Maples, Tyndall Park and Garden Grove. I have canvassed opinions throughout the constituency, as I am sure many members have. In particular, I have canvassed opinions from the residents of Scotia Street regarding housing programs, the Red River and more.

Constituents are concerned that the government addresses all issues in an appropriate fashion. When I think of those community-type issues, a number of thoughts come to mind.

Could the member give us some specific or general thoughts on issues such as protecting our waters? Lake Winnipeg is a huge concern in the province of Manitoba. Our river system is another huge concern for all residents of Manitoba, particularly for people living in the city of Winnipeg. Does the member believe the government is doing enough to deal with the smaller but very important issues that Canadians face every day?

[Brad Butt, Conservative, Mississauga—Streetsville, ON]

Mr. Speaker, I have been a very proud member of this government for the past four years.

I am proud of the major initiatives we have brought forward, not just on major national and international issues, but major investments that we have made in local communities, whether it be infrastructure, water treatment or the renewal of the affordable housing agreements with the provinces to invest in affordable housing that is needed across the country, an issue I have been extremely involved in since I was elected to this place. We have done a tremendous amount.

One of the most important initiatives for municipalities was making the gas tax transfer permanent and adjusting it for the rate of inflation. Municipalities are a true partner, a true player now in getting direct federal government funding to municipalities to assist them with their challenges around infrastructure, transit and transportation issues.

I am proud of those initiatives. There is more to do, but we have done a lot.

[The Acting Speaker, Bruce Stanton]

We have time for a brief question and answer.

The hon. member for Saint-Lambert.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, as usual, the government, and therefore my colleague, are boasting about introducing a bill that will be extremely beneficial for all Canadians.

Needless to say, the Conservative government is once again sacrificing middle-class families who can no longer make ends meet. It is imposing income splitting and increasing the contribution limit for tax-free savings accounts. However, these measures will only help the rich and will waste billions of dollars,

How can he justify the fact that middle-class families are being sacrificed once again?

[Brad Butt, Conservative, Mississauga—Streetsville, ON]

Mr. Speaker, the member has it completely wrong. I have talked to families about income splitting. The families that benefit the most are moderate and low-income families in my riding. The families benefiting from the increase in the universal child care benefit are middle and low-income families in my community.

Most of the people contributing to a TFSA earn less than $60,000 a year. The New Democrats think those people are wealthy, but they are not. Those are middle-income Canadians who are being encouraged to save for their future through the TFSAs.

This is a middle-class budget. This speaks to those families all across Canada, encourages them to save, supports their children and lowers their taxes. They should be supporting this budget.