Mr. Speaker, thank you for the opportunity to address the House at third reading of Bill C-32, the budget 2000 implementation bill. The measures in the bill were all announced in the 2000 budget.
In this budget, the Minister of Finance reaffirmed that the government would observe its plan of sound financial management, that it would reduce taxes, and invest in abilities, knowledge and innovation. This plan will make it possible for the quality of life of Canadians and their children to be improved.
Several measures in Bill C-32 contribute to improving the quality of life for Canadians. Amendments to the Federal-Provincial Fiscal Arrangements Act, the Income Tax Act and the Canada Student Financial Assistance Act, for example, will strengthen access to post-secondary education, provide support for health care and provide more financial assistance to families with children and students. It is important that these particular measures be in place before the summer recess in order to benefit those Canadians who want and who need them.
Let me take a moment to provide the House with a brief overview of the bill. The first announcement the Minister of Finance made in the 2000 budget concerned increased funding for post-secondary education and health care, thus reaffirming the importance the government attaches to these two areas.
Bill C-32 calls for a $2.5 billion increase in Canada health and social transfer payment for health, social programs and post-secondary education. This is the fourth increase the government has made to the CHST.
The additional funds will be distributed to the provinces and territories on a per capita basis and will go into a trust fund from which they can draw funds for four years once the bill has been passed.
Combined with a value of tax transfers and this new supplement, total CHST will reach almost $31 billion in 2000-01, up from $29.4 billion in 1999-2000. Put a different way, together with the $11.5 billion investment in the 1999 budget, the cash component of the CHST will reach $15.5 billion in each of the next four years. That is a 25% increase in the CHST from the 1998-99 level.
One reason to pass the bill without delay is to ensure that this much needed money gets into the health care system quickly to help Canadians.
A second measure in the bill concerns financial assistance to students.
As hon. members are aware, the Canada student loan program has been making post-secondary education more accessible since 1964. The current agreement under which financial institutions make loans to students on behalf of the federal government will, however, come to an end on July 31, 2000.
The bill we are debating today ensures that the Canada student loans program will continue to serve students after that date. There will be money available for student borrowers after July 31 and there will be no interruption in service.
As I indicated before, it is essential that this measure be in place soon so that there is money available for students who will need loans in September.
A third measure provides increased child tax benefits and indexed GST benefits effective July 1, 2000. To assist families with the added expense of raising children, benefits under the Canada child tax benefit are being increased by $2.5 billion annually by 2004. The government's five year goal is to bring the maximum Canada child tax benefit for the first child to $2,400 and to $2,200 for the second child by 2004.
To achieve these goals, the Canada child tax benefit will be fully indexed. The base benefit and the national child benefit supplement will be increased beyond indexation. The income thresholds for the base benefit and the national child benefit supplement will be raised and the reduction rate for the base benefit will be lowered.
Middle income families will benefit substantially from these changes. For example, the CCTB benefit for a family with two children and an annual income of $60,000 will more than double, from $733 before the 2000 budget to $1,541 by the year 2004. This measure is one more reason Bill C-32 must be passed without delay. Low and middle income Canadian families are depending on the CCTB increases and indexed GST benefits in July.
Another measure in this bill also assists families.
Budget 2000 is extremely generous toward parents of newly born or newly adopted children, increasing the duration of parental leave allowed under the employment insurance program as well as the flexibility and accessibility of benefits.
The duration of parental leave, which may be used by one parent or split between the two, will be raised to 35 weeks. With 15 weeks of maternity leave and the standard two week waiting period, this brings the leave related to the arrival of a child up to one full year.
In addition, the number of insurable hours that must be worked to qualify for special benefits will be lowered to 600 hours from 700 hours. Parents will have increased flexibility to decide whether one or both parents will spend time at home with a new child, as only one waiting period per birth or adoption will be required instead of two.
Income earned while receiving parental benefits will be treated the same as for regular EI benefits and the Canada Labour Code will be amended to protect the jobs of employees in federally regulated workplaces during the extended parental leave period.
Another measure will allow Canadians to further diversify their personal retirement savings plans. The limit on foreign property that can be held in registered retirement savings plans and other deferred income plans will be increased to 25% for 2000 and to 30% for 2001.
Several bodies, including the House of Commons Standing Committee on Finance, the Senate Standing Committee on Banking, Trade and Commerce, and the Investment Funds Institute of Canada have asked that this ceiling be raised.
These increases will also apply to the Canada Pension Plan Investment Board. There is a change in Bill C-32 which directly affects the Canada pension plan. The provinces are permitted to borrow money from the CPP under terms set out in the CPP legislation. Bill C-32 responds to a request from the provinces that was agreed to by the federal-provincial ministers of finance last December as part of the CPP triennial review for a prepayment option for provincial CPP borrowings. The provinces will now be allowed to prepay their CPP obligations in advance of maturity and at no cost to the CPP plan. This will provide provinces which have fiscal surpluses with some flexibility to look for ways to reduce their debt. It also means that more funds will be transferred to the CPPIB and invested in the market at higher expected returns.
On the international front, Bill C-32 amends the Special Import Measures Act, or SIMA, to bring Canadian countervailing duty laws into line with recent changes to the WTO subsidies agreement. Certain provisions in that agreement which rendered certain foreign subsidies immune from countervailing duty action lapsed last December 31.
Bill C-32 allows for the suspension of provisions in the Special Import Measures Act that implement these non-actionable subsidy provisions into Canadian law.
These amendments will ensure that we are not treating our trading partners more favourably than they are treating us in countervailing duty investigations.
The two remaining measures in the bill concern first nations taxation and an amendment to the Excise Tax Act. Thirteen first nations will be allowed to levy a direct 7% GST-style sales tax on fuel, alcohol and tobacco products sold on reserve. The Canada Customs and Revenue Agency will collect the sales taxes and the federal government will vacate the GST room where the first nation tax applies. First nations which wish to follow suit in the future can be granted authorization through an order in council instead of a legislative amendment.
Finally, this bill addresses the issue of tax evasion. The Minister of National Revenue will be able to apply ex parte, in other words, without notice, for judicial authorization to proceed with assessment and collection action in instances where revenues may be at risk if GST and harmonized sales tax registrants are allowed their usual remittance period. Until now the Minister of National Revenue has been powerless to proceed with assessment and collection action before the tax came due.
In short, the measures included in this bill are non contentious and, because of three initiatives in particular, this bill should be passed quickly.
It is essential that the CHST supplement be invested in the health network as quickly as possible. It is essential that the student loans program be in place by September. Finally, it is essential that the child tax benefits be increased and that the indexed GST benefits be available by the end of June.
If these three measures are not enacted before the summer recess Canadians will suffer. While the remaining measures are not facing a similar timeframe, they are nonetheless important for millions of Canadians and for the efficient operation of government.
I strongly recommend that all hon. members give their support to this bill.