As Mr. Fitzpatrick suggested, it appears to us that the real purpose of this bill is to reduce the amount of source deductions that are required by the teams--i.e., it is recognized that these players will not be taxable on this income in any event, because they don't make enough money. They don't make more than, for instance, the basic personal amount, and this is really only in respect of cash allowances that they receive, for which they are not required to keep any receipts. The amounts are not substantial, but under the employment insurance legislation, the teams, if it is a cash allowance, are required to withhold, starting from the first dollar that they pay. Because this bill will make those allowances non-taxable, there is a consequential effect as a result of the Employment Insurance Act, which says that the amount, since it is not taxable under the Income Tax Act, will not be subject to withholding. This is all really so that the teams can get a de facto exemption from the employment insurance legislation.
It may be more appropriate for the government to consider this initiative in the context of the employment insurance legislation and not in the context of the income tax legislation.
Mr. Fitzpatrick is going to speak about Canada Pension. I will just mention that with Canada Pension there is a tolerance level; I think the first $3,500 is exempt.