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(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;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

Privacy Protection

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, today, with Bill C-59, the Conservatives want to collect biometric data on visitors with visas from over 151 countries.

The Privacy Commissioner was very clear about this. When the government collects that much information, special precautions are required to protect privacy and prevent the theft of personal information, especially considering the Conservatives' record on this, which is downright disastrous.

Will the Conservatives come up with additional measures to protect privacy?

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

On the issue of unpaid interns, again we're pleased to see some movement on this. The leader of the Liberal Party, the member for Papineau, conducted a round table with stakeholders on this sometime ago, and we've been recommending action be taken by the federal government in federally regulated industries. But this government has acknowledged that this section of Bill C-59 is based on the rules of the Government of Ontario.

Last year, the Ontario Ministry of Labour undertook a proactive enforcement, laid some rules surrounding unpaid interns. They found that 42% of businesses with interns were breaking the law. The federal labour program doesn't appear to have enough resources to conduct a similar blitz. The number of full-time equivalents or staff in the labour standards division has fallen from 183 in 2013 and 2014, to 126 in 2015-16. That's a 31% cut in staff in this division in just two years. Will the labour program receive any additional resources to help enforce the new rules?

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

I have to listen to your talking points. At least I wrote mine.

But with one child, earning $30,000 per year, they'll actually get $533 tax-free every month. Under the Conservatives and Bill C-59—

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

Mr. Chair, Liberals oppose this division, because we have presented a better plan for Canadian families, the Liberal Canada child benefit. The Liberal plan will actually provide Canadian families with one bigger and fairer tax-free monthly cheque to help families with the high cost of raising their children. Under the Liberal plan, a typical two-parent family with two kids, earning $90,000 per year, will get $490 tax-free every month. Under the Conservatives and Bill C-59, that same family receives only around $275 per month after tax. Compared with the Conservative plan, the Liberal plan will provide that family with an additional $2,500 more help, tax-free, every year.

Now, with the Liberal plan, a typical one-parent family with a child—

[The Chair, Conservative, James Rajotte]

I call this meeting to order. This is meeting number 87 of the Standing Committee on Finance. Orders of the day are pursuant to the order of reference of Monday, May 25, 2015. We are doing clause-by-clause of Bill C-59, an act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures.

Colleagues, we will obviously go through clause by clause. We will have different officials, depending on which part of the bill we are dealing with. I want to welcome the officials here for part 1.

As you know, a motion was adopted that guides the committee on how long to speak. The three political parties on the committee have five minutes per clause, but as you know, as chair I can grant a little more time if we speak a little longer for certain items and then group other clauses together. Some parties have helpfully indicated which ones they wish to speak to as a priority. I appreciate that very much.

For clause-by-clause consideration pursuant to Standing Order 75(1), consideration of clause 1, the short title, is postponed. The chair will therefore call clause 2 dealing with part 1, amendments to the Income Tax Act and related legislation.

I do not have any amendments for clauses 2 to 28, and I understand that I can group clauses 2 to 10 together.

Mr. Brison.

Criminal Code

[Andrew Cash, NDP, Davenport, ON]

Mr. Speaker, following the overwhelming support that my motion received to ban unfair pay-to-pay bank fees, I would like to seek unanimous consent for the following motion. I move that it be an instruction to the Standing Committee on Finance that it have the power to expand the scope of Bill C-59, an act to implement certain provisions of the budget tabled in Parliament on April 21, 2015, and other measures, in order to protect consumers by banning all pay-to-pay practices by banks operating in Canada.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Ms. Tremblay, I am going to ask another question.

As Mr. Lee said, the sick leave provisions were negotiated between the unions and the government, and both parties accepted these provisions. I think that Ms. Daviau, and probably Ms. Benson as well, talked about the possible unconstitutionality of this provision in Bill C-59. If this provision were adopted, what would be the direct consequences? Since this provision may be unconstitutional, what steps will be taken after the passage of this bill?

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

I understand that.

I want to point out, however, that your testimony, even though it is interesting and informative, does not really have any impact on the legislative changes that are being proposed here. Indeed, the principle of these changes is a retroactive amendment to an act while a legal proceeding has already been undertaken. Consequently, even though your testimony is interesting—and I am sure it will be heard and listened to—it is not really relevant to what is being proposed in Bill C-59.

I would like to go back to Ms. Tremblay and Ms. Daviau. Can you tell us more about the $900 million? According to what the government is saying, it is introducing savings via this budget, and these will contribute to its much-vaunted balanced budget.

Could you tell us in a more detailed way how this $900 million constitutes, according to you, only ostensible, fictitious, savings?

We are going to begin with Ms. Daviau and then go to Ms. Tremblay.

[D/Commr Peter Henschel, Deputy Commissioner, Specialized Policing Services, Royal Canadian Mounted Police]

Thank you, Mr. Chair.

Thank you for the opportunity to appear before the committee as you consider division 18 of Bill C-59. I am Deputy Commissioner Peter Henschel, and I am responsible for the RCMP's Specialized Policing Services, which includes the Canadian Firearms Program.

I am here today with Ms. Rennie Marcoux, Chief Strategic Policy and Planning Officer and responsible for the RCMP's Access to Information and Privacy Branch.

The Information Commissioner's investigation into an access to information request for the long-gun registry has been the subject of considerable contention. We would like to take this opportunity to clarify misconceptions of how the RCMP handled this request, as well as the destruction of the non-restricted firearms registration records, otherwise known as the long-gun registry.

In particular, we would like to emphasize that the RCMP takes our obligations under the Access to Information Act seriously. As we will outline, the RCMP worked with the Information Commissioner to respond to the complaint in question while also fulfilling our obligations under the Ending the Long-Gun Registry Act.

To begin I should highlight that what was referred to as the “registry” was not a document stand-alone system, or simple electronic record, but rather a compilation of certain information contained in the Canadian firearms information system. This database is constantly being updated. On a monthly basis there are an estimated 50,000 new or amended records added to the database. A copy of the registry could not be printed, copied, or deleted with the push of a single button. The Firearms Act and associated regulations define the type of information required for the registration of a firearm, such as the make, model, manufacturer, registration date, province, and postal code. In total 27 fields in the Canadian firearms information system relate to the registration of the firearms, or the registry, of which 15 include personal information such as a person's name and address.

Since 2006 the RCMP has responded to over two dozen access to information requests for the long-gun registry. These requests were met by providing the 12 relevant and releasable fields of data. Aside from the request under investigation, the RCMP has never received a complaint on the content of our responses.

I would like to now focus on the destruction of the registration records. Contrary to what has been reported, the RCMP did not—and I will repeat—did not destroy any registration data before the coming into force of the Ending the Long-Gun Registry Act on April 5, 2012. Consistent with the government-approved implementation plan, the RCMP destroyed the records between October 26, 2012, and October 31, 2012, with the exception of the Quebec records, which were maintained pending the outcome of a Supreme Court decision.

When that decision was rendered on March 27, 2015, the RCMP deleted the remaining Quebec records from the Canadian firearms information system between April 10 to April 12, 2015, again consistent with the government-approved implementation plan. I should note here that the destruction process was subject to an audit that was externally verified for the October 2012 destruction. The same process is under way to verify the destruction of the Quebec data. So with these clarifications, I will just turn to my colleague to address the findings of the Information Commissioner.

[The Chair, Conservative, James Rajotte]

I call order meeting number 86 of the Standing Committee on Finance.

Pursuant to the order of reference of Monday, May 25, 2015, we are continuing our study of Bill C-59, an act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures.

We want to thank our witnesses for being with us here this morning. First of all, we have with us Professor Ian Lee from Carleton University. We also have with us the Canadian Association of Professional Employees and its president, Madam Emmanuelle Tremblay; the Intellectual Property Institute of Canada and its past president, Mr. Jeffrey Astle; the Professional Institute of the Public Service of Canada, Debi Daviau, the president; the Public Service Alliance of Canada and its national president, Ms. Robyn Benson; the Royal Canadian Mounted Police and Rennie Marcoux, chief strategic policy and planning officer, and the deputy commissioner for specialized policing services, Mr. Peter Henschel.

Thanks to all of you for being with us here this morning. You will have five minutes maximum for your opening statements.

We'll begin with Professor Lee, please.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Adler.

Minister, I want to thank you and your officials for appearing before us for our study of Bill C-59. We appreciate your comments very much.

Thank you, colleagues. We will see you on Thursday.

The meeting is adjourned.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Small businesses are a cornerstone of our economy. They create jobs that support families and our communities, and that's why our budget introduces measures to allow small businesses to grow and create jobs. It's no wonder the Canadian Federation of Independent Business has applauded this measure and gave the budget an A.

The bill would reduce the small business tax rate to 9% by 2019. Using the example of a small business with a taxable income of $500,000, this tax cut and all the tax relief our government has provided since 2006 would result in a nearly 50% decrease in federal taxes, the biggest tax cut in 25 years. This is money small businesses can use to reinvest in the economy and create jobs.

But it goes further. Bill C-59 would amend the Canada small business financing program to allow more small businesses to apply for financing, and allow larger loans to be made available. It would also increase the lifetime capital gains exemption for farmers and fishermen to allow farm and fishing business owners to better ensure their financial security for retirement, by allowing them to keep more after-tax dollars in their pockets following the disposition of their property.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Bill C-59 amends the Canada Labour Code to ensure that interns under federal jurisdiction, regardless of pay, receive occupational health and safety protections. Our government knows that internships can provide important work experience and lead to jobs.

The proposed amendments will also establish two circumstances in which unpaid internships can be offered and provide a coherent set of labour standards to be set out in regulations that will apply to interns who meet either of these circumstance. The first circumstance would be if the internship is formally part of a program approved by a recognized secondary or post-secondary educational institution or vocational school. The second circumstance would be if the internship meets all six specific criteria.

It's important to note that these labour standards regulations will reflect the unique situation of unpaid internships and were developed in consultation with stakeholders. At a minimum, it's expected that they will ensure that unpaid interns receive maximum-hours-of-work protections, as well as unpaid bereavement leave and unpaid sick leave, and are protected from sexual harassment. Our budget focuses on protecting interns and ensuring that internships lead to jobs, which is another way that we're creating job growth and lowering taxes for hard-working Canadians.

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Also, I know that Bill C-59 has done much to strengthen financing for developing countries and our support for them. Could you speak to the further support and financing we're offering for developing countries as well, sir?

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Thank you very much, Mr. Chair.

Thank you so much, Minister, and your officials, for joining us at the finance committee today. It's very much appreciated.

I have to say that I think you were a little modest in recapping. Not only have you balanced the budget, sir, in the context of taxes being at their lowest point in 50 years with over 180 tax reductions, but you've also done it in the context of dropping oil prices. You forgot to mention that you've done it while increasing transfers to the provinces and territories consistently since this government took over. I think it's a remarkable accomplishment.

Specifically, I'd love to hear you speak briefly about how Bill C-59 not only will help the first nations improve first nations services, and services offered to them, but also will improve the First Nations Fiscal Management Act.