Debates of May 28th, 2013

Second Reading

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, I appreciate this opportunity to speak to Bill C-49, a bill which would create the new Canadian museum of history.

The road to Canada's 150th birthday offers Canadians from coast to coast to coast an opportunity to celebrate our history and the achievements that define who we are as Canadians. This government is determined to make the most of these opportunities to celebrate our history, and our national museums play a key role in that undertaking.

Museums are considered by the public to be highly trustworthy sources of information about history and can provide valuable learning opportunities for Canadians. However, our museums are also major economic drivers, attracting tens of thousands of tourists in all regions and in both large and small communities, contributing to the $78-billion tourism industry. A single blockbuster exhibition can generate more than $30 million in incremental tourism revenues for the surrounding region.

This government has created two new national museums in the past four years, both outside of the national capital region. They are the Canadian Museum for Human Rights, in Winnipeg, and the Canadian Museum of Immigration at Pier 21, in Halifax. This has marked the first time in 40 years that a new national museum was created and the first time that a national museum had been located outside the national capital region.

Mr. Speaker, I apologize. I was to have mentioned that I am splitting my time with the member for Oakville.

Our government believes in our national museums, and we recognize the tremendous value that they hold for all Canadians. As we approach Canada's 150th birthday, it is an unprecedented opportunity to celebrate our history and those achievements that define who we are as Canadians. Mark O'Neill, president of the Canadian Museum of Civilization Corporation said “The Canadian Museum of History will inspire...a greater understanding” of our Canadian identity. “Canadians, as well as visitors from around the world”, will gain “a deeper appreciation of Canada's unique and fascinating national journey”.

However, while our national institutions do magnificent work as guardians of our heritage, not one is dedicated to telling the full narrative of our nation's history. That is the reason my colleague, the Minister of Canadian Heritage and Official Languages, announced that the Government of Canada would establish the Canadian museum of history, a national museum that would provide Canadians with an opportunity to learn about and appreciate the richness of Canadian history.

For Canada, 2012 was an eventful year. We celebrated the 95th anniversary of the Battle of Vimy Ridge, the bicentennial of the War of 1812, and her Majesty the Queen's Diamond Jubilee. This year, we will celebrate the 100th anniversary of the Canadian Arctic Expedition. In 2014, we will commemorate the 100th anniversary of the First World War.

I know the opposition members are asking why this government feels it is important to focus the interest of Canadians on our collective history. In 2017, this country will celebrate its 150th birthday. In the lead-up to that celebration, it is important that Canadians know about, appreciate, and celebrate the wealth of our collective history. The statistics are concerning. Only four Canadian provinces, Ontario, Quebec, Manitoba and Nova Scotia, require a credit in Canadian history to be mandatory for graduation. There are 82% of young Canadians surveyed who could not pass a basic Canadian history exam. This is not acceptable.

Let us begin the celebration of the 150th birthday of our country by reminding the citizens of this great nation of the events, people and achievements that make this country unique. Let us remind Canadians and the world that the following are all Canadian inventions: the telephone, Alexander Graham Bell; the electron microscope, James Hillier and Albert Prebus; the snowblower, Arthur Sicard; the snowmobile, Armand Bombardier; the Canadarm, Spar Aerospace; and insulin, Frederick Banting and Charles Best.

Let us inform Canadians in the world about the Hudson's Bay Company, the Bluenose, the Empress of Ireland, the Franklin Expedition and the Canadian Arctic Expedition. Let us celebrate the Battle of Vimy Ridge; the Falcon of Malta, Buzz Beurling; and World War I flying aces Billy Bishop and Billy Barker. Let us reflect on the accomplishments of pianist Glenn Gould; poet Pauline Johnson; Mary Two-Axe Earley, who fought to have her aboriginal rights restored; and John Peters Humphrey, who wrote the original draft of the Universal Declaration of Human Rights.

Let us remember that this land has been continuously occupied for more than 10,000 years. Head-Smashed-In Buffalo Jump, in Alberta, a World Heritage site, was being used while the pyramids were still under construction. Anthony Island, another World Heritage site, was first inhabited thousands of years ago. L'Anse aux Meadows, in Newfoundland, contains the ruins of a north settlement dating from the 11th century. Ours is not a short history.

It is perhaps time that we paused to reflect on what has made this country what it is today. The Canadian Museum of Civilization sought the opinions of Canadians, both online and in nine cities across the country, on the personalities, events and milestones that truly tell the Canadian story. The fact that close to 20,000 Canadians responded speaks to the importance of this new museum.

The Canadian museum of history will provide the public with the opportunity to appreciate how Canada's identity has been shaped over the course of our history. Canadians deserve a national museum that tells our stories and presents our country's treasures to the world.

In conclusion, I hope that as many Canadians as possible will take the opportunity to celebrate Canada's 150th birthday in 2017, in the freshly renovated exhibition halls of the new Canadian museum of history, a museum that highlights the national achievements and accomplishments that have shaped this great nation.

Let me again quote Mr. O'Neill, who said, “There has been no place that Canadians can point to and say this is where we can go to discover who we are as Canadians. This is a place where we can see how we, as Canadians, got to where we are now. Starting today, Canada will have a place like that”.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I will be brief. I want to thank my colleague for pointing out that the first national museum ever built outside the national capital region is the Canadian Museum for Human Rights, in my riding . I also want to recognize and pay tribute to those who raised funds to bring that about. MPs would be interested to note that the Museum of Natural History and the people of Winnipeg have raised more money for that museum than all the other museums in Canadian history combined. Approximately $150 million of private money has gone into that museum.

When there was a 10% cost overrun, we were told to have a tag sale and raise some more money. When there was a 100% cost overrun at the Museum of Natural History in Ottawa, the federal government simply wrote a cheque totalling hundreds of millions of dollars.

My question is simple. Why is there a double standard for these museums outside of the national capital region? Second, how much money in total are they spending to renovate the Museum of Civilization? Why has the construction started before they even have the enabling legislation passed?

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, first let me thank hon. colleague. True to his point, the Canadian Museum for Human Rights in Winnipeg is a great example and testament to this great nation and what we as a country have done successfully. I applaud all of those who contributed to make that museum the success that it is today. It is an opportunity for people from around the world to come and see what is truly remarkable about our nation.

I have a couple of quick comments and then I will be done. The amount spent to date is $1 million. That amount was applied to all of the work that was done in preparation to determine the future of what Canadians from coast to coast to coast want to see.

[The Acting Speaker, Conservative, Bruce Stanton]

Should he wish it, the hon. member for Don Valley West will have three minutes remaining in the time for questions and comments when the House next resumes debate on this question.

It being 5:31 p.m., the House will proceed to the consideration of private members' business as listed on today's order paper.

The House resumed from March 19 consideration of the motion that Bill C-458, An Act respecting a National Charities Week and to amend the Income Tax Act (charitable and other gifts), be read the second time and referred to a committee.

National Charities Week

[Jonathan Genest-Jourdain, NDP, Manicouagan, QC]

Mr. Speaker, I would like to begin my speech on the bill regarding a National Charities Week by showing how the government has gradually transferred many of its fundamental responsibilities to the private sector.

Over the years, during my brief experience in the House, I have noticed the government's trend of transferring responsibilities, as well as withdrawing and, at the very least, attempting to distance itself from its obligations to provide services to Canadians.

Strange as it may seem, the government is attempting to transfer its own responsibilities to paragovernmental bodies that are not accountable to Canadians. I will provide evidence of this in my speech. The House will therefore be in a position to draw its own conclusions.

Although we cannot but welcome efforts to increase charitable donations, we must carefully look at the impact of the proposed measures on federal revenues, on the total amount of donations and on their distribution, in light of the current political situation.

Based on my experience as deputy aboriginal affairs critic, I have noticed that the government blindly delegates the implementation parameters for public policy measures. Once again this morning, when I attended the meeting of the Standing Committee on Aboriginal Affairs and Northern Development, members were dealing with the issue of safe drinking water on first nations reserves.

The evidence provided by the witnesses who had been invited to appear this morning reflected the government’s barely concealed desire to transfer its obligations to agencies and bodies that are rarely accountable to the general public, even though band councils are accountable to members of the first nations.

In this case, the Canadian government is trying to transfer its own obligations to band councils, by virtue of the fiduciary relationship that the Crown has with first nations. Moreover, it is doing so without necessarily transferring the budget envelope that should go along with it.

This kind of reasoning is applicable in many other areas, not just aboriginal affairs. Over the years, we have seen the Conservatives simply trying to shift that weight and pass it on to others. Certain highly controversial issues can often be seen in a positive light by some. Ultimately, they are covered by the media and taken up by international bodies.

In this case, we are talking about safe drinking water, but in terms of charities, we are talking about the delivery of services to Canadians. This puts the government in a more or less favourable light. That is why the government is distancing itself, or at least why there is a very clear desire to do so in this case.

In this speech, I will give concrete examples that support this position and that show how the government’s desire and these distancing measures we see day after day are detrimental. I cannot speak to the past but, over the two years that I have been here, I have observed the government’s gradual withdrawal. This will have a negative impact on all Canadians.

Considering the unstable economic situation in Canada, it is important to condemn the government’s gradual withdrawal from the provision of services to Canadians. The government needs to maintain social programs and make further investments in them to reduce the visible strain on the charitable sector and prevent essential government services from being replaced by charities.

This is especially true because charities, just like first nations, do not necessarily have the budget envelope to provide services to the public. They are not always accountable; this depends on how closely they are tied to government bodies. Some charitable organizations are simply not accountable. How convenient for them.

Finally, the government has divested itself of highly controversial areas. It can simply say that it is no longer responsible for these areas, since another organization has taken charge of the whole thing.

I would now like to delve into my own personal experience. I often discuss issues at the empirical level and today will be no different.

Coming back to my own practice, as a lawyer working for legal aid and also as a private counsel, when I opened my own office in August or September 2010, I occasionally worked on a voluntary basis, in order to increase the glamour and build a reputation as an ethical lawyer. In legal parlance, the Latin term pro bono is used for this. The Barreau du Québec and the other bar associations just about everywhere in the country strongly urge their members to work pro bono, that is, to work on a voluntary basis.

When I worked on criminal cases, or even more obviously, when I provided services to clients with mental health needs, it sometimes happened that the clients were not eligible for legal aid for financial or other reasons.

In some cases, the process was already under way, and as the case progressed I realized that legal aid had refused its assistance. I was still responsible for these cases. I simply decided to continue providing my services to the client. I did not do it in order to gain some financial reward or for a mercenary purpose, but because my help was needed. In addition, no other lawyer would have taken on these cases free of charge. So I provided these services for no personal benefit.

I would like to come back to one point regarding charities. When you work on a voluntary basis or pro bono, disinterest must always be kept in mind. You do not do the work with profit in mind. The primary reason for working on a voluntary basis or pro bono is to ensure that everyone benefits from one’s services and skills.

In my own case, this was quite beneficial, because my reputation grew, and I like to think this was one of the inducements or at least one of the elements that led to my election in 2011. People were already aware of my pro bono work and the fact that I provided services free of charge for people who were poor and vulnerable.

To come back to this notion of disinterest, some lawyers who call themselves “first nation specialists” often lurk around band councils with the idea of making a profit. Some lawyers will say that they are doing pro bono work on a case. Strangely enough, these are the same people who will demand $100,000 per month from Indian bands. This is not really what pro bono means. I would like to make an aside to discuss another Latin expression: obiter dictum. This means that I am saying something in passing.

In summary, when you perform work on a pro bono basis, you have to keep in mind that there will be no payment for the work. I would like to send this message to my friends the first nation specialists.

Finally, it is important to point out that the best approach to the matter under consideration is to implement a comprehensive, consistent, long-term charity policy. Beyond the ostentatious aspect of the issue, it may be worthwhile to assess the entire matter in light of the Conservatives’ double-talk.

Beneath a facade of magnanimity and compassion, supported by expensive marketing hype, the actual implementation of their policies means gaps in funding and targeted attacks on agencies that hold positions that clash with government policy.

This can be seen in bodies other than charitable organizations. The government looks down on some agencies, bodies and band councils and even certain clans that are moderately favourable or freethinking, that are able to express their own position. Strangely, they can also experience a gap in funding, and the government speaks contemptuously about them.

I will repeat my own words. At a meeting with first nations that was meant to be historic, some groups ended up on the sidewalk and were treated as undesirables. In that case and in the case of certain charitable organizations, there has been some cherry picking over the years. Some organizations have had their funding cut because they were not conspicuously favourable to the ideas expressed or at least because they took positions that came into conflict with the ideology of this government.

Clearly, in 2013, the Conservatives have a poor idea of freedom of expression and freethinkers.

I submit this respectfully.

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

Mr. Speaker, as I rise today to speak to Bill C-458, the national charities week act, I want to refer to what my colleague from Bonavista—Gander—Grand Falls—Windsor noted during the first hour of the debate. As he stated in his remarks in this House, the Liberal Party of Canada will be supporting the bill.

We are all proud of the outstanding work done by Canada's charities.

However, I would like to reiterate the two main concerns my colleague previously raised. As the House heard, Bill C-458 would amend the Income Tax Act by allowing taxpayers to deduct donations made within 60 days of the end of the taxation year from that year's taxable income.

During the study by the Standing Committee on Finance of tax incentives for charitable donations, Adam Aptowitzer noted that there is no economic modelling on the issue of tax deadlines, which means that while there is no modelling to support keeping the current deadline, there is also none to encourage moving it to the end of February.

Before making this change, Parliament needs to know all of the facts.

First, we need to hear from stakeholders about the impact these changes would have on fundraising strategies. The current tax deadline coincides with December holidays, which are the basis of major fundraising campaigns for many Canadian charities.

It costs money to raise money. We should be asking if it makes sense to encourage another series of campaigns at the end of February, a time more associated with paying down debt and making RRSP contributions than charitable giving. We need to hear the broader not-for-profit sector's views on whether this would be a useful or productive change.

Second, my colleague from Bonavista—Gander—Grand Falls—Windsor, that extraordinary, exceptional member of Parliament, rightly pointed out that we have no estimate of the impact Bill C-458 might have on federal revenues. Donation tax credits for individuals cost the treasury about $2.4 billion per year. If more Canadians claim donor tax credits, these costs will grow. Of course, we would hope that the increase would be offset by an attendant increase in charitable donations, but again, we have not seen the data on this point.

That is why Bill C-458 needs to be studied in more detail in committee.

To give a reasonable and responsible verdict on this legislation, parliamentarians need to know the costs involved, and they need to know the potential positive impact on increased charitable giving.

It is a timely moment to talk about the state of charitable giving in Canada. As the finance committee's recent report showed, government funding to the charitable sector has declined, and charities rely increasingly on private donations. While Canadians give time and money generously, the number of Canadians claiming the charitable donation tax credit has been stable since 1990, while the number of individual taxpayers has grown by over seven million.

We need to ask ourselves what we can do to help charities expand and strengthen their donor base.

The Liberal Party is encouraging the government to take meaningful action to promote the charitable sector. We believe that two measures in particular would have a definite impact.

First, we urge the government to establish a stretch tax credit for charitable donations. Second, we recommend extending the capital gains tax exemption to include gifts of private company shares and real estate.

A stretch tax credit rewards donors who increase the amount they give to charity by stretching the tax credit on the difference.

In their brief to the finance committee on this subject, Imagine Canada outlined the benefits. They said that a stretch tax credit would “challenge more Canadians to give and to give more”.

Another goal is to “strengthen and revitalize the donor base for many years to come”.

They said it would “benefit the broadest number of taxpayers; support the broadest number of charities and communities”.

Finally, the measures should “entail minimal impact on the federal Treasury in proportion to the benefits gained”.

This is an innovative reform with support from Canadians as well as many Canadian charities.

On the subject of reform, many in this House would know Donald Johnson as one of Canada's leading philanthropists and a tireless advocate of tax reform in the charitable sector. D.K. Johnson has worked for well over a decade advancing the cause of the charitable sector in Canada. In 2011, he told the finance committee that there was a strong case to be made for eliminating the capital gains tax on gifts of private company shares and real estate.

The economy remains weak. Charities need more resources, because more people need help, and since those resources would need to come from private donations, the government ought to do everything it can to encourage giving. According to D.K. Johnson's testimony, this tax change would cost the treasury between $50 million and $65 million but would result in $200 million in new donations. That is the sort of dramatic result Canadian charities need and could benefit from.

The finance committee's report recommended that the government “explore the feasibility and cost of adopting a stretch tax credit” and of cutting the capital gains tax on donations of certain assets. These measures ought to be prioritized by the government.

Canada's charities deserve real support, because they make a real difference in people's lives. I would like to highlight a couple of examples from my riding. The Mermaid Theatre in Windsor, Nova Scotia does incredible work with young people and for young people. Their youth theatre project, which has been running for more than 20 years, gives teenagers a chance to explore tough questions and create innovative theatre, building confidence and performance skills.

Another great example is Camp Brigadoon on Aylesford Lake in my riding, which is a place for children with chronic illnesses, conditions and special needs. These kids face tremendous challenges, but with the help of staff and volunteers, they make friends and explore beautiful Lake Aylesford and the Annapolis Valley. They have fun. They get to enjoy the fun and the opportunity to go to a summer camp that children who are not burdened by chronic health issues often take for granted. For many of these children and their families, summer camp was something that was simply inaccessible for a child with a chronic illness. Camp Brigadoon is an example of the kind of non-profit organization that makes a real difference in people's lives.

Another example is the Alzheimer Society. The work the Alzheimer Society does is really important to families like mine. My mother has Alzheimer's. I know the work the Alzheimer Society does.

There is the Dalhousie Medical Research Foundation and the incredible work they are doing on brain health and on issues of dementia and Alzheimer's. Tax changes for charitable giving would help attract more money to the Dalhousie Medical Research Foundation and help potentially find a cure in the future for some of these brain health issues. In the interim, it could help people and their families living with these brain health issues deal with the issues and have a higher quality of life.

These are examples of the invaluable work that exemplifies the dedication and generosity of Canadian charities, the important work they are doing and the difference they are making in communities and for Canadian families. We are all proud of Canada's charities. We want to see them grow and prosper.

My Liberal colleagues will be supporting this bill.

That said, there are far more concrete steps this House can and ought to take to foster the long-term sustainability of Canada's donor base. I encourage the government to give them serious attention.

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, I am pleased to rise today to speak to Bill C-458.

Before I begin, I want to thank the member for Kitchener—Waterloo for his tireless work on behalf of his constituents since his arrival in Parliament in 2008. The member has done considerable work as the vice-chair of the government operations and estimates committee and as a member of the industry, science and technology committee. He is one of the hardest working MPs that I have come to know. He has demonstrated commitment through a lifetime of volunteer work, having sat out a year of his schooling to volunteer with aboriginal communities in northwest Ontario and abroad in India. In more recent years, he has worked hard on behalf of the United Way. The hard work has won the member praise from across the aisle as a respected advocate for charities across the country.

In addition, I would like to take a moment to recognize that member's outstanding parliamentary record as a champion of the charitable sector. The Globe and Mail recently noted, “as a backbench MP, [the member for Kitchener--Waterloo] has carved out a niche of expertise and influence on the charities file”.

In 2010, he sponsored Motion No. 559, which called for the Standing Committee on Finance to study tax incentives for charitable donations, which was passed by the House with unanimous consent. This motion played a crucial role in the development of economic action plan 2013 and, as a result, the committee heard important evidence demonstrating the need for the government to foster and promote a culture of giving.

Most important, the committee learned that tax incentives had a crucial role to play in increasing the number of new donors. That is why in economic action plan 2013 the government has introduced the first-time donor's super credit. Thanks to the hard work of the member for Kitchener—Waterloo, our government continues to build on a strong record of support for the charitable sector.

The first-time donor's super credit would significantly enhance the attractiveness of donating to a charity for young Canadians who would be in a position to make donations for the very first time and would have an immediate impact in supporting the charitable sector.

The Bank of Montreal surveyed 1,000 people about the first-time donor's super credit, and roughly half of those between the ages of 18 and 34 said that they would contribute more to charities because of this special tax break. Overall, the survey found that 70% supported the first-time donor's super credit.

Not only that, but charities across the country have welcomed this new credit. Katharine Schmidt from Food Banks Canada had this to say:

The super credit will provide an enticing opportunity for more Canadians to donate to their local food bank if they haven't already done so. Food banks across the country continue to struggle to raise enough money to keep their doors open. We believe this credit is a step in the right direction to provide food banks with a new tool with which to seek out new donors.

Furthermore, the new super credit would be a valuable tool for the arts. Camilla Holland, the advocacy chair for the Professional Association of Canadian Theatres lauded the government on its commitment to work with the charitable sector in providing charitable giving incentives. Miss Holland said that the new super credit was “welcome strides towards growing donors and levels of giving for... theatre companies of all sizes”.

This super credit would also help the health care sector raise funds for research and innovation. I would note that the Canadian Multiple Sclerosis Society had this to say about the super credit:

We are also very pleased to see the commitment to strengthen the capacity of the Canadian charitable sector...I'd like to provide a few illustrations of how these measures will help the MS Society of Canada and the people we serve....We are also encouraged by the recognition in Economic Action Plan 2013 to foster and promote a culture of giving in Canada. The introduction of a new, temporary First-Time Donor's Super Credit for first-time claimants of the Charitable Donations Tax Credit will encourage all young Canadians to donate to charity.

However, more broadly, the introduction of the first-time donor's super credit will achieve its intended purpose by helping charitable organizations raise considerable amounts of funds from new donors.

Marcel Lauzière, president and CEO of Imagine Canada, had the following to say about the government's new super credit:

Imagine Canada...is very pleased that today's federal budget includes a First-Time Donor's Super Credit to encourage more Canadians to give to charity, and a commitment by the federal government to work with the charitable sector and with Imagine Canada to encourage more donations by a greater number of Canadians....The Super Credit will help us make real progress...generating up to $110 million a year from new donors for causes that Canadians hold dear. This is a significant investment in our communities at a time of ongoing restraint....We are pleased at the government's commitment to work with Imagine Canada and the charitable sector to encourage more Canadians to give more.

This super credit would supplement the existing charitable donations tax credit with an additional 25% tax credit for a first time donor on up to $1,000 of donations. Overall, this incentive would expand and rejuvenate the charitable sector's donor base and would provide an estimated $25 million in annual tax relief.

Since 2006, our Conservative government has lowered taxes on Canadians more than 150 times, including lowering the GST from 7% to 5%. In doing so, we have reduced the overall federal tax burden on Canadians to the lowest point in over 50 years. We have also introduced the tax-free savings account to help Canadians save more of their hard-earned money. On this side of the House, we understand that lowering taxes leaves more money in the pockets of Canadians, giving them greater flexibility to donate to charity.

Our government wholeheartedly supports the intent of Bill C-458 and I applaud the noble efforts my hon. colleague has made to aid charities in their important work. Indeed, this bill has the potential to encourage young Canadians on a path of sustained charitable donations throughout their lives. A strong culture of charitable donations empowers these organizations to make an even bigger impact in communities across the country.

Our government is committed to returning to balanced budgets before the next election and we will do so by building on the solid foundations of our economic action plan, which has served Canadians well.

With respect to Bill C-458, we encourage all members to support the referral of the bill to committee where it can be further examined.

In closing, I would like to quote a recent Waterloo Region Record editorial, which praised the legislation before us today. It noted:

[The member for Kitchener Waterloo's] bill strikes us as a non-partisan, common sense proposal that deserves support across the political spectrum. It should be passed.

I wholeheartedly agree with that sentiment and thank the member for Kitchener—Waterloo for his work. I encourage all members to vote to give the bill the hearing it so rightly deserves.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-458, An Act respecting a National Charities Week and to amend the Income Tax Act (charitable and other gifts).

The New Democrats will support this bill at second reading. It provides for two main measures. First of all, it amends the Income Tax Act to provide that charitable gifts, made within 60 days after the end of a taxation year are eligible for a tax credit for that taxation year. Second, it establishes a National Charities Week, which would be the last week of February.

We therefore support this bill at second reading so that it can go to the committee stage. Since I sit on the Standing Committee on Environment and Sustainable Development, I am well aware that the New Democrats do very serious work in committee. We work very hard. I have also sat as a substitute on several other House committees, and I can state that the New Democrats' work is exemplary. They do very serious work, analyze bills, listen to witnesses, take their recommendations seriously and insist that they be included in reports, unlike the Conservatives, who already have their minds made up and very often do not listen to the experts and scientists.

It is also important that the Standing Committee on Finance study this bill so that the committee can get a clearer idea of the actual cost of this measure. We must ensure that this measure is an adequate response to the difficulties charities currently face.

I would also like to talk about certain organizations in the riding of Drummond. For example, organizations benefiting from the Homelessness Partnering Strategy, the HPS, came to see me before the budget was tabled last year. The organizations affected include Ensoleilvent, Refuge La Piaule, Maison Habit-Action, Tablée populaire, Comptoir alimentaire and Carrefour d'entraide. These are all charitable organizations that assist the homeless and the poor in my riding.

These organizations are unfortunately being abandoned by the Conservative government. Their budgets have not even been indexed for several years now, perhaps more than five. Year after year, although demand is increasing in Drummond and elsewhere in Quebec and Canada, the funding allocated to the HPS is not even indexed. Although the Conservative government has fortunately renewed the program, allocated funding is inadequate. The government also wants to interfere in the way the organizations want to manage their money. We wanted complete freedom in this area so that the organizations, which know people's needs, could take the most appropriate action. We wanted funding to be allocated in a general way, but that is unfortunately not the case.

As my hon. colleague from Manicouagan noted in his excellent speech, the Conservative government is currently withdrawing from charities, which can no longer rely on recurring funding. They cannot count on stable funding with which to provide appropriate assistance. Furthermore, they are now accountable to the federal government.

On the contrary, with the Conservative government’s gradual and clear withdrawal, these organizations are increasingly being left to fend for themselves, so to speak. They must solicit businesses and generous donors more often for funding. At times, they are forced to adopt an approach that may not always be the most appropriate one, with questionable or dubious results.

A very large company that may not necessarily be bad but that may have other interests could in some way influence charitable organizations into doing what it wants them to do. Sometimes their actions may be questionable. That is why it is important for the federal government to ensure an adequate level of funding for agencies like the ones I mentioned, so that they may provide adequate support to members of the public.

Unfortunately, as we saw once again with the renewal of funding for the HPS, the government has failed on this score. This is a failure on the part of the Conservative government. While it did renew HPS funding, unfortunately it stripped the HPS of its general character, something that agencies in Drummond had asked it not to do. Funding amounts were not indexed, as had been requested. In a few years’ time, the process will have to be repeated.

I want to mention the excellent work the member for Hochelaga is doing in support of social housing. I want to thank her for her hard work. We can all be proud of our social housing critic. She is doing an excellent job and we are seeing the fruits of her labour. We are continuing our hard work in this area, because we are not getting a lot of support from those across the way.

I would like to mention the fine work being done by all of the charitable organizations across Canada fighting against social inequality. They provide support for our fellow Canadians during difficult times and make a truly essential contribution.

As I pointed out earlier, the NDP and the majority of Canadians believe that it is important not to relieve the government of its responsibilities. Our social policies must also reflect the actions of charitable organizations. We must support these agencies in a more tangible way.

Government cuts to grants to NGOs working in the area of international citizenship adversely affect all agencies.

The facts show that we have reason to be leery of the Conservative government’s approach. It seems to want to leave the charitable sector to fend for itself. As I said earlier, this is a dangerous approach.

Canadians want a responsible government that shoulders its responsibilities. They do not want a government that sloughs off its basic responsibilities onto the private sector, with all the risks that may entail. Once again, I refer to the excellent speech by the hon. member for Manicouagan, who explained these points so well.

In short, I will say that the NDP supports the charitable sector. We want a comprehensive, coherent, long-term policy. We must include the charitable sector when we create social policies, and charitable organizations should not be required to manage our social programs. The government must remain the master planner. It must retain the responsibility. The Conservative government must maintain the social programs and invest in them in order to avoid an explosion in demand in the charitable sector.

I would like to point out that other organizations have suffered funding cuts. Earlier, I talked a lot about HPS and the initiative to end homelessness, but then there are Rights and Democracy, Alternatives, Kairos, and Development and Peace. All these charitable organizations work independently and accountably.

Unfortunately, the Conservative government has not supported them; on the contrary, it has made cuts, which is really deplorable. We are in favour of charitable donations, but the government must also face up to its responsibilities. Unfortunately, the Conservative government has not done so. The NDP will do it in 2015—the public can rest assured.

[Shelly Glover, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I am absolutely thrilled to be standing here today because I truly believe in Bill C-458. This is an important proposal before us today. It is intended to help Canadians across the country when they are involved in charities. We truly do have a commitment to help donors and ensure that they get the benefits that have been put forward by this government.

What would this proposal do?

This proposal would establish the last seven days of February each year as national charities week, and it would extend the deadline for individuals claiming charitable gifts for tax purposes from December 31 of a taxation year to 60 days after that day to match the deadline for contributions to registered retirement savings plans.

It is my sincere hope that members on both sides will set aside all of their talking points and listen to what is being said here. There is a member here in this House who has worked extremely hard on this bill, and I would hope that members, particularly from the NDP, will listen to the benefits the bill would provide to charities and donors.

Let me begin by saying that my hon. colleague for Kitchener—Waterloo has spent an awful lot of tireless effort advocating for charities and charitable organizations throughout his time here in Parliament. I have worked alongside this member and I am so proud to see the work that he has done.

He is in the House right now, and he is a humble fellow. However, I want to take this opportunity to thank him, not only on behalf of the government but on behalf of all Canadians, because they have seen his tireless efforts and appreciate everything that he does and continues to do so that charities can benefit from the best that we have here in Parliament. In fact, he is one of the best that I have the pleasure to work with.

The member also put forward another motion, Motion No. 559, which called for the Standing Committee on Finance to study tax incentives for charitable donations. That motion was supported, thankfully, by all parties in the House. As a member of the finance committee, I am pleased to report that after extensive consultations, we have presented the government with a comprehensive report that we can all be proud of.

To the member's credit, the recommendations of that report are clearly reflected in the most recent budget economic action plan 2013 in the form of an important initiative that I will speak about at great length later on.

With respect to the member's current bill, let me quote a recent editorial in the National Post praising the legislation before us today, noting that:

Too often of late, private members' bills have served explicitly partisan ends. [The member for Kitchener—Waterloo's] Bill C-458, however, seeks to improve the lot of needy citizens simply by adjusting a bureaucratic formality. This is the sort of effort we'd like to see more of in Parliament....

First, I would like to tell the House that the Conservative government proudly salutes the volunteers who contribute to charities established to improve the quality of life of people who need help.

Volunteers are remarkable, altruistic Canadians who have an impact on people's lives, and who do so without any hope of reward. They give of their time and energy because they are concerned for the less fortunate.

Canadians should be proud to know that Canada is one of the countries with the most charities and non-profit organizations.

According to estimates, there are more than 160,000 charities and non-profit organizations, and their goal is to help solve our country's greatest social problems.

In addition, ordinary Canadians know very well that the charitable sector plays an essential role in society and provides invaluable services to the most vulnerable individuals, thanks to generous financial support for their important work.

According to Statistics Canada, more than 5.7 million Canadians made donations totalling nearly $8.5 billion to registered charities in 2011. They also receive assistance through the tax system in the form of a personal tax credit and a corporate tax deduction for charitable donations.

In fact, federal government tax assistance for charitable donations exceeded $2.9 billion in 2012. Canadian tax incentives for charitable donations are among the most generous in the world.

Our Conservative government fully supports the charitable sector. In fact, we have taken numerous steps to enhance support for such organizations since 2006, including exempting donations of publicly listed securities to charities from capital gains tax, reforming the disbursement quota rules for charities, reducing their administrative complexity to better able charities to focus their time and resources on charitable activities, introducing integrity measures to combat fraud and abuse in the charitable sector and, lastly, enhancing public transparency and accountability to ensure that charities devote their resources to charitable and not political activities.

As I mentioned at the beginning of my speech, following the finance committee's report on charitable donation tax incentives, a direct response to another initiative by the member for Kitchener—Waterloo, economic action plan 2013 proposes a new temporary first-time donor super credit, designed to encourage new donors to give to charity. The FDSC, which is the first time donor super credit, will increase the value of the federal charitable donations tax credit by 25 percentage points if neither the taxpayer nor his or her spouse has claimed the credit since 2007.

The FDSC will apply on up to $1,000 in cash donations claimed in any one taxation year from 2013 to 2017. This new credit would significantly enhance the attractiveness of donating to a charity for young Canadians who are in a position to make donations for the first time. Helping to rejuvenate and expand the charitable sector's donor base will have an immediate impact in supporting the sector. This is great news.

It is clear that our government and the member for Kitchener—Waterloo are hard at work to ensure that charities have the help they need to do what they do best. Let me take a moment to remind my hon. colleagues of the member's outstanding reputation in this regard.

Imagine Canada, the leading umbrella organization representing Canadian charities, has praised his willingness to consult with charities on new ideas, stating:

[The member for Kitchener—Waterloo] has been and continues to be a real champion for the charitable sector. He demonstrates a sound understanding of the issues we’re facing.

I am sure my colleagues on both sides of the House would agree with that assessment and will join our Conservative government in sending this bill to the finance committee for the hearing it so richly deserves. Let the champion, the member for Kitchener—Waterloo, present this bill so that we can further assist charities across the country to ensure that their good work is being done.

Lastly, I want to say why it is important to support this proposal at second reading so that it can be studied in greater detail.

We realize the bill’s aims are clear and noble. By supporting it at second reading, we can conduct a thorough examination, reflecting contributions by parliamentarians, charities and other stakeholders, and thus report on the status of some important issues. For example, if the deadline is changed from December 31 to March 1, how much will donations increase, and what is the estimated cost of this measure?

The study of Bill C-458 will also be an opportunity for charities to indicate whether they are concerned about the reduced time limit for issuing tax receipts to last-minute donors. Charities currently have approximately six to eight weeks after the end of the year to issue receipts to donors. It is quite logical to believe that, if the time limit for making charitable donations is extended by two months, the organizations will have to make administrative adjustments to reflect the new deadline.

In saying all of that, I look forward to and count on the support of the members on both sides of the House so we can get this bill to the finance committee to do the important study that is required. We want to hear from charities and organizations that have no other interest except helping those who are most vulnerable. Let us give them a chance to speak, and we will do what we can to ensure that they have the assistance of this government, as we have demonstrated in the past, so they can benefit from the generosity of Canadians.

[The Acting Speaker, Conservative, Bruce Stanton]

Resuming debate.

I invite the hon. member for Kitchener—Waterloo for his five-minute right of reply.

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

Mr. Speaker, I am very pleased to rise in the House once again to speak to my private member's bill, Bill C-458. I would like to begin by thanking all of my colleagues in this place who have spoken to the issue of my bill, and who have also spoken about the importance of the charitable sector in Canada.

As members know, my bill proposes to extend the deadline for charitable donations by 60 days, so that eligible donations made up until March 1 may be claimed in the previous calendar year. In addition, it would establish the last seven days of February as National Charities Week in Canada.

Canadians are among the most generous people in the world. When I look around my community of Kitchener—Waterloo, I see numerous events that provide support for worthwhile causes. I know that this is happening in communities across the country. For example, just this past weekend, I attended the annual Great Strides walk that raises funds for cystic fibrosis research. Hundreds of people participated in this event and almost $200,000 was raised that will support the great work of Cystic Fibrosis Canada and help find a cure for this disease. I might add that the walk that was held in Kitchener—Waterloo raised the second-highest amount in the country, and we are very proud of that.

Not only do Canadians strongly support their local charities, but as global citizens we also recognize our responsibilities internationally. Earlier this month, I had the privilege to travel to Africa with the Governor General. Everywhere we went we saw the impact of Canada's contributions to improve the lives of people in the developing world. I can say that we are well regarded for our international aid efforts and that is thanks, in part, to the generosity of individual Canadians.

In the four and a half years that I have been a member of Parliament, I have had the opportunity to present two items of private members' business. I have chosen to focus on supporting the charitable sector because I believe the sector is a foundation of a strong society. There are two aspects to creating positive change that will benefit the charitable sector. The first is to raise awareness. As Canadians, we need to be more aware of the work that is being done on the front lines in our communities, and consider how we can further support these important efforts. The second aspect is to take action. As members of Parliament, we come here to try to make a difference, and I think we are making good progress with regard to charitable organizations.

I was very proud that our government introduced the first-time donors super credit in our last budget, which would boost the charitable tax credit by 25% for new donors. This was a response to the recommendations of the finance committee following a study that was instigated by my private member's motion, Motion No. 559. Building on this momentum, I am pleased to now have the opportunity to advance this particular initiative.

There are a number of reasons that I believe Bill C-458 would lead to increased support for charities. It would move decisions on charitable giving away from the hectic holiday season. It would raise awareness of the tax benefits of charitable donations and encourage people to consider giving as part of their tax and financial planning. It would create a second season of giving, which would be further underscored by National Charities Week at the end of February. I believe that by combining an awareness campaign with a tangible measure that would motivate increased giving, Bill C-458 would benefit our charitable sector.

I was pleased during the first hour of debate, and it appears the second hour as well today, to hear support for Bill C-458 from all sides of this House. I believe my colleagues recognize the potential benefits of extending the deadline and would like to see this bill examined further in committee to discuss the merits and to get direct input from the charitable sector. I thank the House for the opportunity to bring forward Bill C-458. I encourage all members to support my bill as we work together for the greater good to strive to make a difference in the lives of the constituents we serve.

[The Acting Speaker, Conservative, Bruce Stanton]

The question is on the motion.

Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Conservative, Bruce Stanton]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Acting Speaker, Conservative, Bruce Stanton]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Acting Speaker, Conservative, Bruce Stanton]

In my opinion the yeas have it.

And five or more members having risen:

Pursuant to an order made on Wednesday, May 22, the division stands deferred until Wednesday, May 29, at the expiry of the time provided for oral questions.

The House resumed consideration of the motion that Bill C-48, an act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation, be read the third time and passed.

Technical Tax Amendments Act, 2012

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, it is my pleasure to speak to Bill C-48 and participate in this debate.

While this legislation is indeed a technical bill, as its name suggests, it is nevertheless important. The bill before us today has been over a decade in the making and represents over 10 years of miscellaneous tax announcements.

While Canadians have been repeatedly and broadly consulted on these measures, because they have not yet been formally enacted by Parliament, the tax system has become overwhelmingly backlogged. Previous attempts to pass technical tax legislation by governments of all stripes have been unsuccessful for a variety of reasons. Not only have governments attempted to address this backlog, the Auditor General has identified it as a matter of significant concern as far back as 2009.

All members can agree the time has come to formally legislate these technical amendments into our tax system. We all know that a sound tax system is one of the cornerstones of a strong economy and a strong economy is a top priority for our Conservative government. Through Canada's economic action plan, we are helping to ensure that all entrepreneurs and businesses have the opportunity to succeed in the global economy and continue to create jobs. That means keeping taxes low and the tax system predictable, as we are doing through today's legislation.

It also means we should have a tax system that is simple and fair for all. Indeed, our government is firmly and strongly aware of the importance of tax fairness, truly a concept that all members should understand and support. It is a basic principle that our government is committed to upholding, something that everyone, especially members, needs to remember if they try to skip out on their own taxes.

I will address that and other important tax issues in my time today as I discuss Bill C-48 in great detail. As members know, this technical bill would amend the Income Tax Act, the Excise Tax Act and other related legislation to simplify the tax system and make it more predictable, while also closing tax loopholes and creating a stronger and fairer tax system for all Canadians.

I should note that this bill and its measures were previously released for a repeated public consultation before its introduction in late 2012. To highlight the importance of that consultation, especially with tax professionals, the Office of the Auditor General at a recent meeting of the finance committee stated:

It was certainly part of our recommendation that the draft legislation be released for comment so that practitioners could provide input. That's an important part of the process. This means that before it actually gets tabled in the House, it's had input and it's not going to be a surprise to the practitioners. If there are any glitches, they can be straightened out.

As members can see, the proposals in this bill reflect the feedback our government has received from all Canadians, especially those tax professionals. Indeed, Bill C-48 has received its due diligence and our Conservative government is ready to move forward with ensuring tax fairness for all Canadians.

I should note that even the all-party finance committee endorsed this bill, without amendment, after a very detailed study. Witness after witness spoke in favour of the bill. This is what some of those witnesses had to say.

I will first quote from Gabe Hayos, Vice-President of Taxation, Canadian Institute of Chartered Accountants, who stated:

We support Bill C-48. The CICA understands how important it is for taxpayers to have greater certainty and a clearer understanding of Canada's federal income tax system.... Bill C-48 helps improve clarity and certainty, and it mitigates the negative effects of uncertainty identified by the Auditor General.

Second, Larry Chapman, executive director and chief executive officer of the Canadian Tax Foundation said at committee:

Bill C-48, the Technical Tax Amendments Act, 2012...represents 10 years of repairs and maintenance in updating the Income Tax Act and the Excise Tax Act. Its passage is important to all Canadians. You heard that in the earlier presentation. I want to emphasize it again. Its passage is very important to all Canadians....Delays in the passage of tax legislation leave taxpayers and their advisers in a no man's land of uncertainty. My message for the Standing Committee on Finance is that you should encourage passage of this legislation...

Paul Hickey, a tax partner of KPMG, added in his testimony at committee:

[I] ask Parliament to act decisively and to pass Bill C-48 to essentially clean the slate of this old pending legislation and to finally bring the Income Tax Act up to date. Taxpayers could then move on and focus on running their business, and the CRA could carry on administering and collecting tax in a more stable system.

Finally, we heard from Carole Presseault, vice-president of government and regulatory affairs, Certified General Accountants Association of Canada, who said at committee:

—I wish to say that we support the tabling of the bill and that we encourage you to move swiftly to pass this important piece of legislation. The bill deals with a massive backlog of unlegislated tax measures. Its passage would, in our opinion, bring greater clarity to the tax system and strengthen the integrity of our laws.

That is just a very small sampling of the support that the committee heard for the bill.

Let me highlight a number of points in the bill. I will do my best to recap it succinctly and as briefly as possible, especially in light of its technical nature.

Part 1 of the bill proposes enhancements to the Income Tax Act to better target and simplify rules relating to the non-residents trust, taking into account comments received during public conversation.

Parts 2 and 3 relate to the taxation of Canadian multinational corporations in respect to their foreign affiliates, the result of which would be a more fair and equitable international tax system.

Part 4 deals with ensuring that the tax rules work well under both common and civil law, while part 5 would close tax loopholes and create greater fairness for taxpayers.

This part of the bill would implement a number of integrity tax measures that were first publicly released in 2010, on which we have consulted extensively since then.

These particular measures would close loopholes relating to specific leasing of properties and ensure that conversion of specific investments flow-through trusts and partnerships into corporations would be subject to rules similar to those governing transactions between corporations.

It would deal with schemes designed to artificially increase foreign tax credits in order to reduce taxes. In fact, it would prevent that from happening.

Finally, it would implement a regime for information reporting on tax avoidance and of transactions.

As an overall package of items, these key initiatives would help crack down on tax avoidance and ensure that every Canadian paid their fair share of tax.

At the same time, part 5 also includes a number of very technical changes essentially designed to ensure that the income tax system functions in accordance to policy that it is intended to operate under.

Most of these technical changes would address issues identified by everyday Canadian taxpayers working through the application of the income tax rules in their own personal or working studies.

Part 5 would also implement an income tax amendment relating to the enactment of the Fairness of Self-Employment Act. It would provide a tax credit in respect of employment insurance premiums paid by self-employed individuals, a change that this government has made.

Part 6 of the bill would implement the technical amendments to the GST and HST, including relieving the GST and HST on the administrative services of collecting and distributing the levy on blank media imposed under the Copyright Act, which we updated.

Part 7 would amend the Federal-Provincial Fiscal Arrangements Act and the First Nations Goods and Services Tax Act to provide for technical changes concerning tax administration agreements.

Finally, Part 8 consists of coordinating amendments that would ensure that the tax amendments in this legislation interact properly with other legislation.

While these measures may seem technical, they are crucial to the fair and efficient functioning of our tax system and they have been consulted on a repeated basis. Now is the time to pass the bill.

Tax professional Carole Presseault again, who was one of the many expert witnesses who appeared before finance committee to speak to the importance of the bill and its passage, said:

—this bill needs to get passed. My concern doesn't result in the study of this bill. This bill has been studied; it's been consulted. My colleagues here, the witnesses, have also expressed that it's been extensively studied. Stakeholders have had an opportunity over the last decade to comment on the various provisions of this bill, and, yes, please, what's required is for it to be passed expeditiously.

Tax fairness and a competitive tax system are important to this government. As taxpayers, we are all forced to give up a part of our hard-earned income to fund government programs like health care, policing and other services for Canadians. We do so willingly and honestly and under the understanding that everyone is paying their fair share. Canadians who play by the rules do not like tax cheats and neither does this Conservative government. That is exactly why today's legislation would help fight tax cheats.

To quote noted tax practitioner Greg Boehmer of Ernst & Young, who also appeared in front of finance committee:

It's very clear that this legislation is aimed at fairness, that it does close a number of loopholes, and that it does broaden the base in certain circumstances.

Additionally, as part of our government's broader efforts to keep taxes low for Canadian families and ensure integrity in our tax system, economic action plan 2013 included a number of measures to close tax loopholes, address aggressive tax planning, clarify tax rules and reduce international tax evasion and aggressive tax avoidance.

As everyone knows, our government is very committed to closing tax loopholes that allowed a select few businesses and individuals to avoid paying their fair share. Ensuring that everyone pays their fair share also helps to keep taxes low for Canadian families and businesses, thereby improving incentives to work, save and invest in Canada.

Since 2006, as has been said before, our Conservative government has introduced a whopping 75-plus measures to improve the integrity of the tax system. Bill C-48 would work in partnership with other governments, improving efforts to promote tax fairness, a fact which did not go unnoticed during finance committee's careful consideration of this legislation.

When it comes to our Conservative government's priorities, the witnesses were absolutely correct. However, in addition to ensuring its integrity and fairness, our government remains dedicated to ensuring the tax system remains competitive so we can attract vital new business investment to Canada and to grow the economy and create jobs.

Lower Canadian taxes are critical in supporting economic growth by enabling Canadian business to invest more of their revenues back into their operations and into their workers. These businesses invest in machinery, equipment, information technology and other physical capital that are components of an improving Canadian productivity.

Taken as a whole, there is no question that our government's actions have made a noticeable difference. Canada now has the lowest overall tax rate on a new business investment in the G7, a policy proven to increase productivity and to contribute to a higher standard of living for all of us.

In conclusion, our government strongly believes that Canadians deserve lower taxes, not just a select few. That is why, since coming into office in 2006, Canadians from every walk of life are benefiting from the tax relief introduced by our government, such as the lowering of the GST and the landmark TFSA.

I would like to add that I have a 22-year-old daughter who is just starting out in the world. One of her questions to me recently was whether she should invest in a TFSA and whether that would that help her in the long run.

Our message is getting out there. I did not give her that message. She came to me about it. There are opportunities and the need for Canadians to invest and save.

Also, one million low-income Canadians have been removed from our tax rolls. This is a fact.

Our strong record of tax relief is saving the typical Canadian family of four more than $3,200 each year.

Also, our government has shut down tax loopholes in the system in order to stop people avoiding to pay their fair share of tax. Ensuring tax fairness is just another way that our Conservative government will keep taxes low for Canadians and their families. I am proud that the bill before us today will help us go even further in meeting that objective.

I encourage all my colleagues to vote in favour of tax fairness and to support this important legislation here this evening.

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, my question is on tax fairness and equity in the system.

There is something missing in the bill, and would be some method of determining the inflation rate within the north for the northern residents tax deduction.

In 2007, after constant lobbying on my part and on the part of the Canadian Chamber of Commerce and the territorial governments, which were asking for a 50% increase in this northern residents tax deduction that had not been changed since 1989, the government gave us 10%.

Over the last six years, that 10% has been taken up by inflation. We are back to square one. We have not had the increases that would make the system fairer.

Why did the Conservative government not put something into this legislation that would identify an inflation increase to the northern residents tax deduction, something that is absolutely required in the north? We are losing workers. The cost of living has gone up so high in the north that people are not staying there anymore. They are flying in and out to their jobs. What has happened in northern Canada in terms of the cost of living is a disgrace.

Why did the Conservative government ignore the important requirements of tax equity and fairness for northern people?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I appreciate the passion the hon. member across has for his constituency. He is from the north. However, I do have to bring him back to the purpose of this bill we are debating this evening.

His question was with regard to a policy issue in the tax system. However, the bill we are dealing with today, Bill C-48, deals with legislation that has already been passed, that has had regulations and some changes to the Tax Act, or a number of other acts such as the Excise Tax Act. The purpose of the bill is to catch up on the tax changes that happened to the Tax Act. There is a legislative requirement that the House pass those minor changes to bring them into law.

The fact is that the CRA puts a note out with respect to the changes that are made. They go into effect virtually immediately and the industry, mostly the tax professionals, accepts those as being in place. However, this bill would actually put them into law.

It has been 10 years, and that is a long time. I do agree with the auditor's report that we need to be doing these minor catch-up tax amendments more often than every decade.

However, the question he asked has absolutely nothing to do with the bill.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, the member for Burlington gave a fine speech. He is also a legendary member of the finance committee, and I have the privilege of serving on the finance committee as well. We have studied the bill at length.

It is somewhat puzzling. This is something that I understand has been in the works since 2003 or possibly even longer. I understand, too, that this legislation has been given to us by the bureaucrats, those people who try to correct the tax law. As it states, these problems have cropped up through the years. These are things with which nobody disagrees. The tax lawyers, the people who make money on preparing people's taxes, said that they needed clarity, that they needed the bill to pass.

Why did it take so long to get this bill passed?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, it is not just this bill; it is a number of bills that this government has faced.

We came to office as the Conservative government with a plan to take action and do things for Canadians: to move the economy, to create jobs. In its foresight, the public decided we would have a minority government for a number of years, which made it difficult to get things done and move things forward.

Now that we have a majority government, we are able to move quickly, efficiently and effectively to put things in place that Canadians need to move forward, to create jobs, create work, create wealth and improve the quality of life we have here as Canadians.