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(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;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

Report Stage

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I would like to thank my hon. colleague from Beauport—Limoilou, who is doing excellent work on environmental concerns at the Port of Québec. I am very proud because we cannot move the economy into the future in any old way.

There has to be a vision for sustainable development. I am so proud to be a member of the New Democratic Party, whose leader is the author of Quebec's Sustainable Development Act. He knows exactly what it means to move the economy forward while respecting the environment and the social concerns of workers and people.

When the people of Drummond hear about sustainable development and support for SMEs, they are truly happy because they know that is the way of the future. They know that 80% of new jobs are created by SMEs and that we need to give SMEs the opportunity to grow.

That is why we have a plan that will not only let SMEs grow and develop, but will help them to create jobs and hire people.

We also want to take back the $1.3 billion in subsidies to oil and gas companies. It is shameful that this money is used for that when it should be used to create the sustainable economies of the future.

We must not pass problems on to our grandchildren or, as the Minister of Finance said, pass the problems on to the Prime Minister's grandchildren. That makes no sense.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, we have kept our promise to Canadians, and the budget is balanced. Some underestimate the discipline involved. It was widely reported that there were some in the House that believed budgets magically balanced themselves. However, nothing could be further from the truth.

Let me state for the record and the benefit of all members that magic cannot be counted on to balance the budget, and Hogwarts is not the London School of Economics. Our budget is balanced due to the fiscal responsibility of our government, not by waiving the magic wand. While the Liberals and the NDP are making billions of dollars in new political promises, I encourage both of those parties to dust off their calculators as their numbers do not add up. In fact, their budgetary plans have more holes in them than Swiss cheese.

Balanced budgets are the only way to ensure long-term prosperity in our economy. It allows for further tax relief for hard-working families and for our seniors. It bolsters our top credit rating, supports lower interest payments and protects health care transfers to the provinces. We cannot borrow our way to prosperity, no matter what some of our opposition colleagues might say. Now is not the time to spend money we do not have, which, if done, would only lead to massive deficits and larger debt payments.

For generations, Westman families have understood the path to prosperity and that we must not compromise tomorrow by spending recklessly today or pile on debt that we cannot afford. Rather, we must invest sensibly for a financially secure future.

My approach of standing up for hard-working taxpayers has been clear and consistent: take as little as possible and give back as much as we can. That is why I am pleased to stand and voice my support for this budget implementation act, as federal taxes are now the lowest they have been in 50 years. Countless seniors from my constituency of Brandon—Souris, and from across the country, have been taken off the tax rolls completely. Benefits are going directly to families, and we have reduced numerous taxes rather than funding an over-burgeoning and inefficient bureaucracy that can help few.

I also support this budget implementation act and budget 2015 because our Conservative government is supporting the good people of Manitoba like never before. Since 2006, under the leadership of our Prime Minister, health care transfers have risen by 57%. Unlike the previous Liberal government that drastically cut and slashed vital health care funding to Manitoba and other provinces to balance its federal budget, we took a much different approach. In fact, federal support has never been higher.

I am also pleased that the new building Canada plan is making critical infrastructure investments to grow Westman's economy, such as tripling the size of Manitoba's regional airport terminal at McGill Field, expanding the town of Deloraine's water treatment plant, and ensuring more homes and farms have access to clean drinking water in the rural municipality of Elton.

I would be remiss not to point out that the opposition voted against the funding of all these projects. The people of Westman are not pleased that every time the NDP and the Liberals have a chance to stand up for Brandon—Souris, they have sat on their hands. While the Liberals like to crow about infrastructure funding, they forget that their record of investing in Manitoba is abysmal. We only have to look at their lackluster infrastructure record of only investing $370 million in Manitoba over 12 years. In comparison, our Conservative government has already invested $1.2 billion into Manitoba's infrastructure, and we are well on our way to investing another $1.2 billion in the coming years.

Since the first day I had the honour of being elected as the member for Brandon—Souris in Parliament, I have reached out and consulted widely with local residents on ways we can continue to grow our economy and enhance our quality of life. I would like to briefly touch on the new measures contained in budget 2015 that support our seniors, reduce taxes for small business owners, and assist Westman farmers under initiatives that will close the skills gap and lead to the creation of new high-paying jobs.

Budget 2015 builds on our record of supporting seniors whose efforts have helped to make Canada the strong and prosperous country that it is today. We will reduce the minimum withdrawals for registered retirement income funds that will allow seniors to preserve more of their retirement savings to better support their current income needs.

Budget 2015 also introduces a new home accessibility tax credit for seniors and persons with disabilities to help with the costs of renovating their home so they can remain safe, secure and accessible.

There has been much hoopla from the opposition, which has something against Canadians putting more of their hard-earned money into a tax-free savings account. Without a doubt, the TFSA is the most important tax saving vehicle since the introduction of RRSPs. Providing Canadians a further incentive to save and invest is not only sound economic policy, it encourages future growth. The TFSA provides the flexibility of such things as saving for a new home and paying for their children's education. It is there for those who have an unexpected expense and need to quickly draw on their investments.

While our Conservative government will enhance the TFSA, the Liberals want to claw back this enhancement and, in turn, force Canadians into a mandated and compulsory increase in the CPP rather than trust Canadians to make investment decisions with their own money.

It should be noted for the record that regardless of what the Liberals may say about the tax-free savings account, 60% of those who have opened a TFSA make under $60,000 and close to half of those people with TFSAs are seniors. I can think of no greater example that highlights the difference between our government's economic agenda and the Liberal plan to force Canadians into larger, forced, mandatory CPP contributions.

While our plan allows Canadians the option of where they want to invest their money, the Liberal plan says that it knows what is best for them and while it is at it, it will take thousands of dollars out of the pockets of their employers as well.

Speaking of job creators, budget 2015 will help Westman's small business grow and create jobs. While we have already reduced the small business tax rate to 11% and increased the amount of income eligible from $300,000 to $500,000, this budget will further reduce the small business tax rate to 9%. This is in addition to the small business job credit that is providing relief for EI premiums.

As well, many Westman farmers will welcome the increase in the lifetime capital gains exemption to $1 million, which will allow them to retain more of their capital for retirement.

While our government's approach is to allow small businesses to keep more of their money to reinvest and hire even more employees, all of our hard work could be reversed if the Liberal CPP tax hike took effect.

Make no mistake, the Liberal, job-killing plan will hurt Westman's small business owners. While our government is investing in skills training and education for future growth, the Liberal tax plan will dampen the confidence of the private sector. Many in the House have raised the issue of the skills gap and how it affects their local economy. In many Westman communities, small business owners are having a hard time filling job openings.

The skills gap is an impediment and barrier not only to our local economy, but also to the national economy. That is why I am pleased our budget financially supports harmonizing apprenticeship training and certification requirements to targeted Red Seal trades.

I am also pleased that our government has made historic investments in apprenticeship training. We have supported post-secondary institutions, such as the Assiniboine Community College, so it can provide the skills and knowledge to meet local demands. Through programs such as the apprenticeship incentive and completion grants, we are providing young people with necessary financial assistance to finish their training. In addition to these, the tradesperson tool deduction and apprenticeship job creation tax credit and the Canada job grant are having a real world effect on our economy.

While there are those who have voted against some or all of these measures in the past, I encourage all colleagues in the House to support this legislation in front of us today. We cannot grow the Canadian economy if our workforce does not have the skills to fulfill the jobs of tomorrow.

I ask all of my colleagues, particularly those in the opposition, to join our government and stand up in favour of this budget implementation act. I ask that they stand up for hard-working taxpayers, seniors, students and for the long-term prosperity of our country. As I have said repeatedly, we must all work together to build a stronger Canada than we inherited, and this budget implementation act would do just that.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I listened carefully to the member's speech and I was truly astonished by what I heard.

We know full well that the provinces will not be receiving $36 billion in health transfers. We also know that the government took $2 billion from the employment insurance fund, money that employers and employees paid out of their own pockets. Finally, we also know that a $3 billion reserve has disappeared because the government wanted to balance the budget. As for the TFSA, which is a disaster, the banks are even charging fees if people make several deposits or withdrawals in the same month.

Can the member elaborate on these points?

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, I am very pleased to speak to those points and I thank my colleague for those comments.

We have balanced the budget, and that is a key for the economy in Canada. It gives our industries and our families confidence in being able to invest in their own livelihoods and in their own businesses, and that makes a stronger country.

We have put forward a plan that is balanced, but also a plan that is fiscally responsible. Unlike the high tax increase programs of the NDP and the Liberals, programs that have not proven to be funded out yet, we have put forth a plan that is funded and certainly will help families in the future.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate a number of the comments from the member, even though I do not necessarily agree with them all.

I have an issue about which the Liberal Party has been talking a great deal, and that is in regard to Canada's safety net, our national pension programs. We disagree with the government 's plan to increase the age of retirement, or OAS, from 65 to 67. A Liberal government would reverse that decision.

We have real concern about the CPP approach. The Prime Minister has refused to meet with the premiers, refused to recognize this is a valuable program that Canadians believe in and that they want the federal government to show some stronger leadership on the issue.

Can the member explain to the House and to viewers why it is that the current Prime Minister, who at one time suggested abolishing the CPP, that there was no need for a CPP, does not support the CPP? A vast majority of Canadians support it.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, the premise of the question is wrong. The Canada pension plan is there, it is viable and we are offering a voluntary mechanism for citizens in Canada to contribute to more on a voluntary basis.

Unlike the Kathleen Wynne program that the Liberals have put forward in regard to a forced mandatory inclusion of CPP contributions that would end up costing not just $1,000, for an individual who is making $60,000, but also $1,000 for the employer as well.

This plan has been well planned out in our Conservative announcements. I just have to say that the member's question is very well received, but I am surprised that he is the one who asked it, given the fact that the Liberals have a shortfall in the funding of that program.

[Steven Fletcher, Conservative, Charleswood—St. James—Assiniboia, MB]

Mr. Speaker, the hon. member for Brandon—Souris is a very experienced public servant in legislature, and now a fantastic MP. I found it very interesting that the incredible statistic that the Brandon Airport Terminal has tripled in size due to federal investments. That is simply outstanding and indicative of the booming economy of the area.

I wonder if the member could tell us more specific examples of federal investment in his riding. There is a reason I ask this question. In today's Brandon Sun, the member was criticized for making too many announcements, for having been too available to constituents and for having been around the entire constituency.

I wonder if the member could react to this criticism.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, I thank my colleague for Charleswood—St. James—Assiniboia for the excellent work he has done and he is so well respected across the country, never mind just in his constituency.

I thank him for the question regarding the expansion of the Brandon Airport. One of the reasons it was needed was because of the growing economy in our region that my colleague has referred to. We have had flood mitigation needs in the last few years from the excessive moisture we have had, so we have projects to enhance the dikes in the city of Brandon. Melita and Souris have been done, Wawanesa has been finished. There is small one in Reston and there is more to come.

In regard to being criticized for working too hard, I take that with a grain of salt. I would far sooner be criticized for doing too much than doing too little.

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

Mr. Speaker, unfortunately, I did not get the opportunity to ask my colleague from Brandon—Souris a question. I wanted to ask him about the budget that was tabled by the Minister of Finance a few weeks ago. I wanted to show him chart 2.16, which compares Canada's unemployment rate to that of the United States. I wanted to help him escape from his fantasy world. He thinks that balancing the budget will solve all our problems. Unfortunately, that is not necessarily true, unless there is some sort of secret I am not in on.

The unemployment rate in the United States dropped from 10% in 2009, at the height of the economic crisis, to just 5.5% in January 2015. Meanwhile, in Canada, the unemployment rate went from about 8.7% to 6.8%. We all know that for years, the Unites States has been dealing with recurring deficits that it is quite unable to get out of and that it has a higher accumulated public debt than Canada. The government needs to back up its claim that a balanced budget will solve all our problems. We know what happens when a government gets bogged down in ideology. It is very difficult to reason, see clearly and put things in perspective.

That said, the government has imposed the 100th gag order, the 100th time allocation motion. When I was elected on May 2, 2011, I never could have imagined that I would see 100 gag orders, 100 refusals to give a voice to millions of Canadians across the country. A gag order is one thing, and it has been used for a number of different bills, real bills that addressed specific problems or specific topics. However, ironically, the 100th one is being used for an omnibus bill, yet one more hodgepodge of legislative measures that amend a huge variety of laws, including the Immigration and Refugee Protection Act, the Patent Act and even the act pertaining to the federal public service. This is the same kind of nonsense we have been seeing all along, and it unfortunately prevents us from seriously studying the legislative measures that are being imposed, not proposed, by the government. That is the reality.

This is the sign of a worn-out government: it is still imposing its will despite its growing list of failures and the opposition of a huge majority of the people on issues as significant as the anti-terrorism bill, Bill C-51. Unfortunately, the bill was passed by the Conservative majority, which, just like the government, is running away and trying to escape its own corruption under the vigilant eye of the Auditor General. The real pity is that the government is missing yet another opportunity to work with the opposition parties and the other parties represented in the House.

At least there is one good thing about the Minister of Finance's budget: it includes some NDP measures. We see it as “friendly theft”. We are not going to complain about them stealing our good ideas. The really funny thing, though, is that the Conservatives do not want to give the NDP any credit. Everyone knows what I am talking about. I am talking about the measures for small businesses: lowering the tax rate from 11% to 9% and the accelerated capital cost allowance.

Those are obvious ways to help small businesses, which often operate on very tight budgets. Sometimes their budgets are so tight that the owners cannot even pay themselves a salary.

It is a great privilege for me, as a member of Parliament, to meet so many business owners in my riding. Furthermore, Beauport—Limoilou is a riding that is home to many small businesses made up of just a few employees who are valiantly supported by the business owners. Those individuals have so much faith that they often work very long hours in conditions that are much worse than those of their employees. Every bit of help is important.

It is too bad, because those are the kinds of measures we could have supported wholeheartedly. However, instead of playing fair and having the courage to debate and discuss only the budget by introducing a coherent budget implementation bill that allows for a full debate, the Conservatives buried everything in this unpalatable jumble of an omnibus bill, which includes things that have nothing to do with the budget.

My colleagues have talked about that. Unfortunately, too few of my colleagues from all political parties will be able to speak to this omnibus bill. It is important to do so, because this bill will drastically change many aspects of our society, including good faith negotiations, which have been completely scrapped at the stroke of a pen, or respect for foreign visitors, who will be subjected to biometric screening. That last measure should have been the subject of a full debate to determine what limits should have been applied. Instead, the government prefers to short-circuit the debate. It is going to rush this through and we will have to live with the consequences. Judges are going to have to do the work of parliamentarians, once again, by perhaps striking down some of the abusive provisions that do not comply with our basic laws.

I think it is very important to go over the sorry record of nine very long years. It has been nine and a half years, actually, since the Conservative Party came to power. It was my first campaign, in 2006, one January 23. In 2006, as I said, the employment rate was 62.8% in the Canadian workforce. Last year, that rate fell to 61.4%, and I can assure the House that it has continued to drop given the turmoil caused by the drop in the price of oil. Given that the government increased development of our natural resources, especially oil and gas, we have reached a level of dependence that is forcing us to deal with a much harsher reality than we would have liked.

TD Bank's former chief economist, Craig Alexander, testified at the Standing Committee on Finance a few times and talked about this. His contribution is highly valued. He said that in the long term we need to build a knowledge economy that is globally competitive, productive and innovative and does not depend on speculation or fluctuating commodity prices.

For a government that ignored knowledge, innovation and the vibrancy of a talented pool of young people in favour of the massive export of raw, unprocessed resources, the judgment is particularly harsh. As Mr. Alexander said, the priority should have been the other way around, but the Conservatives forced us down a road that seems to be a dead end, and we do not know the way out yet.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to ask the member about health care, which we know is of great concern to all Canadians. The government lost the opportunity back in 2014 to achieve another health care accord. In 2004, Prime Minister Paul Martin, at the time, recognized the importance of working with the provinces in order to deliver a service which was of critical importance to all Canadians. We believe and trust that health care will not only be here for us today but also into the future.

When we look at today's budget implementation bill, one thing that is really lacking is any sense of commitment toward health care going into the future. This is something that I suspect would disappoint many Canadians. I am wondering if the member might want to provide his thoughts on the lost opportunity of not having a long-term health care accord with the premiers and that the Prime Minister should have done something a couple of years back.

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

Mr. Speaker, Lester B. Pearson's government listened to the NDP, but those days are long gone.

The provinces adopted Paul Martin's famous accord with a gun to their heads, an old Liberal practice that goes back to the days of Pierre Elliott Trudeau and the rounds of negotiations with the provinces in the early 1970s and 1980s. This is the last chapter in the saga of this famous accord; the government is drastically reducing the health transfers to the provinces.

The initial accord guaranteed that the federal government would pay 50% of provincial health care costs. It was a very clear and very simple accord, and this new program was the envy of the world. The Liberals began dismantling it and the Conservatives continued the job.

My dear colleague cannot be proud of the 20 years spent tearing apart the fabric of this country.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, unfortunately the Conservative government raided the employment insurance fund to balance the budget. The budget contains some good measures, such as cutting the tax rate for SMEs from 11% to 9%, which is an NDP idea. However, it also contains bad measures, bad initiatives and bad programs.

I am going to ask a question about unemployment. Given that there are 1,310,000 unemployed workers in Canada, what would an NDP government have done better in terms of creating jobs and ensuring that people can earn a higher salary and improve their quality of life, and also to help unemployed workers who have lost their jobs?

We see that the Conservatives prefer, unfortunately, to restrict access to employment insurance and then raid the fund. Some might even talk about theft. However, I will not do so in the House because that would be unparliamentary language.

What does my NDP colleague think about that?

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

Mr. Speaker, I would like to thank my colleague from Chicoutimi—Le Fjord, who has witnessed first-hand the impact that the dismantling of the employment insurance program has had. The people in his region have been particularly affected by this.

The fact that the government is using the employment insurance surplus to balance the budget is likely not the most shocking aspect of this budget. It is actually a hidden deficit. What is more, we are strongly opposed to two measures: the increased TFSA contribution limit and income splitting. Basically, were it not for these two measures, the government would have a surplus without having to resort to such manipulation.

The other really shocking aspect of the budget is that the government is actually hampering job creation and interfering with job mobility and economic activity by limiting access to employment insurance. I have provided statistics on the employment rate to prove it. This has forced millions of people across the country to put up with jobs that make them unhappy, jobs where they have no hope of getting ahead and jobs that do not meet their needs. This leaves the door wide open to abuse and often results in extremely unfortunate consequences.

At the same time, it is rather ironic to see the government implementing employment insurance measures to allow people who are sick to receive benefits for a longer period of time, but that may be the result of accumulated problems with and failures of the basic employment insurance program.

[Kellie Leitch, Conservative, Minister of Labour and Minister of Status of Women]

Mr. Speaker, it is my pleasure to rise in the House today to support the budget implementation act.

As Minister of Labour and Minister of Status of Women, I am proud that our budget will improve health and safety in the workplace, strengthen protections for interns and provide added support for employees who are caring for their gravely ill family members.

The Government of Canada understands very well that a safe, fair and productive workplace is an important part of creating jobs, stimulating growth and ensuring long-term prosperity. That has always been a priority.

We know that a strong and healthy economy relies on a workforce that is also strong and healthy.

That workforce includes interns. Internships have generated significant debate and discussion over the past year, and for good reason. Internships play an essential role when it comes to providing Canadians with opportunities to gain skills and experience that they need to join and succeed in the workforce.

Whether paid or unpaid, internships are an important way to improve employment prospects. In fact, a November 2014 survey by the Association of Universities and Colleges found that four out of five employers say that internships provide students added value as well as for their companies. They bring new talent into their organizations and the benefits go both ways.

Internships give students an opportunity to acquire the skills they need to participate in the workforce. It is estimated that there are currently hundreds of thousands of interns in workplaces across Canada.

Many of them are working toward degrees or diplomas through secondary or post-secondary educational institutions, or through vocational schools, but not all of them. There are also recent graduates, new Canadians, people pursuing career changes and those looking to return to the workforce after a period absence, among others, who are also engaging in internships.

Internships make it possible to acquire valuable knowledge and experience. However, it is also important for interns, regardless of pay, to be protected by the Canadian Labour Code.

Members may remember Andy Ferguson, a young student who died in November 2011 after an overnight shift at an Alberta radio station where he had been an intern. His brother believes he fell asleep at the wheel after working 16 hours in a 24-hour period. Since Andy passed away, his family has been pushing for labour protection for interns. When the budget was introduced, Matthew Ferguson, his brother, responded by saying, “I didn't expect it at this scale, or this quickly, but it's still very exciting that it has come out today”.

This clearly shows that the government took the necessary measures to ensure that interns are properly protected. Occupational health and safety are extremely important. We take our mandate very seriously.

The budget implementation act would amend the Canada Labour Code to ensure that all interns under federal jurisdiction, regardless of pay, would receive occupational health and safety protection. This would include the right to refuse dangerous work.

The code would also be amended to clarify the circumstances when unpaid internships could be offered. In addition, the code would be amended to allow labour standards protection to apply and to be adapted to unpaid interns. That way we would ensure that all interns are protected appropriately in the workplace without discouraging employers from offering unpaid internships should they wish to do so.

As we heard in committee from Mr. John Farrell, the executive director of the Federally Regulated Employers - Transportation and Communications Group, interns are not employees, but they have the right to be treated fairly and an appropriate balance is required.

Our government listened to what Canadians had to say about this and we acted quickly. Our government is also concerned about job security for employees who have to stop working to take care of a sick loved one and about the income assistance they receive.

Our government will also be introducing an extension to the compassionate care benefits under the federal employment insurance program. We will be investing up to $37 million annually to extend the duration of compassionate care benefits, from the current six weeks to six months.

We are also extending the time period within which claimants can receive those benefits, from 26 weeks to 52 weeks. In addition, we are amending the Canada Labour Code to ensure that employees in federally regulated workplaces have their jobs protected when they access these increased benefits. We expect these changes to come into force in January 2016.

We heard from Canadians that the existing program parameters did not reflect the financial hardship and emotional stress that people providing end of life care often face. I can say from first-hand experience, working with individuals within my own riding, and I am sure other members have experienced the same, that the issue of making sure individuals can be with their loved one at the most valuable time they can be when they require them, especially at an end of life experience, and that having this extension of compassionate care leave from six weeks to six months is being viewed extremely well.

That is why the government will support Canadian workers during the most difficult times of their lives. That is why these changes are so important.

Ensuring that Canadians are well protected and can pursue their own personal economic prosperity is something that our government is determined to do.

This bill would put our budget measures into action. It would strengthen workplace protections for interns and ensure job security for employees who are caring for their loved ones.

Budget 2015 is proof of our commitment to create a strong and healthy workforce that will, in turn, create a strong and healthy economy.

Budget 2015 is good for all Canadians. I would urge hon. members in the House to vote in favour of the bill and give their support to a stronger workforce and a stronger economy.

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I congratulate the member for her speech. It is quite clear that her background is in health care. She put particular emphasis on benefits for people who take care of their loved ones and on the occupational health and safety of interns.

I have two questions. Why did the government cut $36 billion in health transfers to the provinces?

My second question has to do with interns. Why did the government not agree to the NDP's proposal to require that interns be paid?