Mr. Speaker, I will be sharing my time with the member for Nipissing—Timiskaming.
I am privileged to rise today to speak to the second budget implementation act, 2014. I would like to share with the House some of the important measures contained in the legislation that stem from budget 2014 and other important actions of our government.
In the 2011 election campaign, our government made a number of promises to the Canadian people that we said we would bring in once the budget was balanced. We are well on our way to fulfilling our promises. One of the first promises we are fulfilling is the doubling of the children's fitness tax credit from $500 to $1,000 and making it refundable.
It is well known that regular exercise is essential to the successful development of children. It is a great way to get them started on a lifetime of healthy, active living. That is why our Conservative government introduced the children's fitness tax credit in the first place. This measure makes it affordable for Canadian families to register their kids in fitness activities. This tax credit currently benefits approximately 1.4 million Canadian families by providing them with much-needed tax relief.
With the doubling of this tax credit to $1,000 and making it refundable, it would become even more beneficial to low-income families. These enhancements to the children's fitness tax credit would help bring further tax relief to about 850,000 families that enrol their children in sports or other fitness activities. As a government, we have been strongly committed to making life more affordable for hard-working Canadian families, and doubling the children's fitness tax credit and making it refundable does exactly that.
Our government has also committed to supporting job creation and economic growth in Canada's economy. We recognize that the most important driver of Canada's economic growth and success is the private sector, small businesses and entrepreneurs. These companies and individuals are the ones driving our economy forward, putting in long hours, and hiring our friends and neighbours.
According to the Business Development Bank, small and medium-sized enterprises make up 99.8% of all Canadian companies. It is because small businesses are so important that our government has introduced the small business job credit. The aim of this measure is to help small businesses save money and therefore have more resources to hire more workers. The small business job credit would apply to employment insurance premiums paid by small businesses in 2015-16.
The credit will be calculated as the difference between the premiums paid at the legislated rate of $1.88 per $100 of insurable earnings in each of those years. Since employers pay 1.4 times the legislated rate, this reduction in the legislated rate is equivalent to a reduction of about 39¢ per $100 in insurable earnings. That is in EI premiums paid by small employers. The 39¢ premium reduction would apply in addition to the premium reduction related to the Québec Parental Insurance Plan. Any firm that pays employee EI premiums equal to or less than $15,000 in 2015 or 2016 will be eligible for the credit in those years.
As an example, a small business employing 14 employees each earning $40,000 would ordinarily pay about $14,740 in EI premiums in 2015. However, since the total EI premiums paid by the employer are less than $15,000, it would be eligible under the small business job credit for a refund of about $2,200. That is the difference between the employer premiums paid at the legislated rate versus the premiums calculated under the reduced small business rate.
Businesses will not have to apply. The small business job credit will be automatically administered by the Canada Revenue Agency, which will determine eligibility and calculate the amount of the credit. Once calculated, the credit will be applied against any outstanding debt and then the remaining amount, if any, will be refunded to the small business. We expect this measure to save small employers more than $550 million in 2015-16. This is just another way that our government is helping foster the conditions for private sector jobs and growth in the Canadian economy, which is the foundation of our long-term prosperity.
The budget implementation act would also take action to help amateur athletes and students, and I want to highlight those measures briefly as well.
First, for amateur athletes, the budget implementation act would permit income contributed to an amateur athlete trust to qualify as income earned for RRSP contribution limits. This is another important way we can help encourage and fund our young athletes on their journeys in their respective sports.
The budget implementation act would also extend the tax credit for interest paid on government-sponsored student loans to interest paid on a Canada apprentice loan. This is also vital in encouraging young Canadians to consider the trades as they prepare to enter the workforce or prepare for their post-secondary education. It is well known that there is a shortage of skilled tradespeople in the country and this is another important step in encouraging young Canadians to consider a career in that field.
I would like to turn to a subject that is close to my heart. Anyone who has spent time with me knows my passion for caring for men and women in uniform, and for continuing that care once these individuals are out of uniform and become part of Canada's veteran community.
With so many young veterans now, our care for them must change, it has changed, and it continues to change and improve.
One of the primary goals of the government and of the Department of Veterans Affairs is care for our veterans, helping them transition to a new career and establish a new life with as much independence as possible. This includes helping the seriously ill and injured veterans have their house renovated to accommodate diverse needs, such as wheelchair access and things like that, as well as providing up to $75,800 in career retraining funding for either the injured forces member or their spouse.
The aim of that fund is to get veterans of the Canadian Armed Forces working again in meaningful and gainful employment. We want them to use their trade, leadership and people management skills in the public or private sector where they can be put to good use.
For our part, our government is taking action to ensure that veterans are welcomed and hired into the public service in a way that recognizes the service they have already given to the country.
Each year, approximately 7,600 Canadian Armed Forces personnel leave the service, including about 1,000 individuals who leave for medical reasons beyond their control. Finding meaningful employment for them is a very important factor in them making the successful transition to civilian life.
In recognition of their service to Canada, budget 2013 promised to enhance employment opportunities in the federal public service for medically released Canadian Armed Forces personnel by creating a statutory hiring priority in the Public Service Employment Act for forces members who were medically released for service related reasons and by extending the duration of priority entitlements from two to five years for all medically released Canadian Armed Forces personnel.
Our government also proposed, in budget 2014, to amend the Public Service Employment Act to give preference to eligible veterans in external public service job competitions and to allow Canadian Armed Forces personnel with at least three years of military service to participate in internal public service job competitions.
To that end, our government has tabled Bill C-27, the veterans hiring act. That bill would build upon our previous commitments and previous legislative, giving honourably released forces members better access to job openings in the federal public sector. This is all part of our efforts to ensure there are more opportunities for Canada's veterans to build meaningful second careers as they transition from military to civilian life.
As part of this effort, veterans and Canadian Armed Forces personnel with a minimum of three years service would be allowed to participate in advertized internal hiring processes for a period expiring five years after their release date.
This measure would be in addition to a previous announcement by our government that eligible veterans whose military service was cut short by a career-ending illness or injury suffered in the line of duty would be given statutory priority access to job opportunities in the federal public service.
The duration of priority access for all medically released personnel would also be extended from two years to five years.
These are clearly all initiatives designed to help our veterans achieve “re-establishment in civil life”. That short quote comes from the list of responsibilities that the Minister of Veterans Affairs, and therefore the Government of Canada, is charged with in relation to Canada's veterans. These priority hiring measures are simply another way that our government is trying to help our veterans successfully re-establish themselves in civilian life.
This is the key concept in the overall philosophy of service to veterans by the Department of Veterans Affairs
The aim of veterans programs is not lifelong financial dependence, unless that is the only option. The aim of the programs is to give the veteran every support possible to help those who cannot or do not wish to continue to serve in the military the tools they need to succeed in carving out a good future on their own terms. It is a goal I know all members of the House and all Canadians share.
The measures from the budget implementation act that I have highlighted today are ones I believe are in the best interests of all Canadians, whether they be children, amateur athletes, working moms and dads or veterans.
Where government can help Canadians, we want it to help and be as effective as possible. Where it is simply in the way of ordinary Canadians achieving their best possible quality of life, we want government out of the way.
The bill would help us improve that balance. That is why I am pleased to speak to it and support it.
