Bill C-45 (Historical)

Jobs and Growth Act, 2012

A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures

Part 1 implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) amends the rules relating to Registered Disability Savings Plans (RDSPs) by
(i) replacing the 10-year repayment rule applying to withdrawals with a proportional repayment rule,
(ii) allowing investment income earned in a Registered Education Savings Plan (RESP) to be transferred on a tax-free basis to the RESP beneficiary’s RDSP,
(iii) extending the period that RDSPs of beneficiaries who cease to qualify for the Disability Tax Credit may remain open in certain circumstances,
(iv) amending the rules relating to maximum and minimum withdrawals, and
(v) amending certain RDSP administrative rules;
(b) includes an employer’s contributions to a group sickness or accident insurance plan in an employee’s income in certain circumstances;
(c) amends the rules applicable to retirement compensation arrangements;
(d) amends the rules applicable to Employees Profit Sharing Plans;
(e) expands the eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of bioenergy equipment;
(f) phases out the Corporate Mineral Exploration and Development Tax Credit;
(g) phases out the Atlantic Investment Tax Credit for activities related to the oil and gas and mining sectors;
(h) provides that qualified property for the purposes of the Atlantic Investment Tax Credit will include certain electricity generation equipment and clean energy generation equipment used primarily in an eligible activity;
(i) amends the Scientific Research and Experimental Development (SR&ED) investment tax credit by
(i) reducing the general SR&ED investment tax credit rate from 20% to 15%,
(ii) reducing the prescribed proxy amount, which taxpayers use to claim SR&ED overhead expenditures, from 65% to 55% of the salaries and wages of employees who are engaged in SR&ED activities,
(iii) removing the profit element from arm’s length third-party contracts for the purpose of the calculation of SR&ED tax credits, and
(iv) removing capital from the base of eligible expenditures for the purpose of the calculation of SR&ED tax incentives;
(j) introduces rules to prevent the avoidance of corporate income tax through the use of partnerships to convert income gains into capital gains;
(k) clarifies that transfer pricing secondary adjustments are treated as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act;
(l) amends the thin capitalization rules by
(i) reducing the debt-to-equity ratio from 2:1 to 1.5:1,
(ii) extending the scope of the thin capitalization rules to debts of partnerships of which a Canadian-resident corporation is a member,
(iii) treating disallowed interest expense under the thin capitalization rules as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act, and
(iv) preventing double taxation in certain circumstances when a Canadian resident corporation borrows money from its controlled foreign affiliate;
(m) imposes, in certain circumstances, withholding tax under Part XIII of the Income Tax Act when a foreign-based multinational corporation transfers a foreign affiliate to its Canadian subsidiary, while preserving the ability of the Canadian subsidiary to undertake expansion of its Canadian business; and
(n) phases out the Overseas Employment Tax Credit.
Part 1 also implements other selected income tax measures. Most notably, it introduces tax rules to accommodate Pooled Registered Pension Plans and provides that income received from a retirement compensation arrangement is eligible for pension income splitting in certain circumstances.
Part 2 amends the Excise Tax Act and the Jobs and Economic Growth Act to implement rules applicable to the financial services sector in respect of the goods and services tax and harmonized sales tax (GST/HST). They include rules that allow certain financial institutions to obtain pre-approval from the Minister of National Revenue of methods used to determine their liability in respect of the provincial component of the HST, that require certain financial institutions to have fiscal years that are calendar years, that require group registration of financial institutions in certain cases and that provide for changes to a rebate of the provincial component of the HST to certain financial institutions that render services to clients that are outside the HST provinces. This Part also confirms the authority under which certain GST/HST regulations relating to financial institutions are made.
Part 3 amends the Federal-Provincial Fiscal Arrangements Act to provide the legislative authority to share with provinces and territories taxes in respect of specified investment flow-through (SIFT) entities — trusts or partnerships — under section 122.1 and Part IX.1 of the Income Tax Act, consistent with the federal government’s proposal on the introduction of those taxes. It also provides the legislative authority to share with provinces and territories the tax on excess EPSP amounts imposed under Part XI.4 of the Income Tax Act, consistent with the measures proposed in the March 29, 2012 budget. It also allows the Minister of Finance to request from the Minister of National Revenue information that is necessary for the administration of the sharing of taxes with the provinces and territories.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Jobs and Economic Growth Act as a result of amendments introduced in the Jobs, Growth and Long-term Prosperity Act to allow certain public sector investment pools to directly invest in a federally regulated financial institution.
Division 2 of Part 4 amends the Canada Shipping Act, 2001 to permit the incorporation by reference into regulations of all Canadian modifications to an international convention or industry standard that are also incorporated by reference into the regulations, by means of a mechanism similar to that used by many other maritime nations. It also provides for third parties acting on the Minister of Transport’s behalf to set fees for certain services that they provide in accordance with an agreement with that Minister.
Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, provide for a limited, automatic stay in respect of certain eligible financial contracts when a bridge institution is established. It also amends the Payment Clearing and Settlement Act to facilitate central clearing of standardized over-the-counter derivatives.
Division 4 of Part 4 amends the Fisheries Act to amend the prohibition against obstructing the passage of fish and to provide that certain amounts are to be paid into the Environmental Damages Fund. It also amends the Jobs, Growth and Long-term Prosperity Act to amend the definition of Aboriginal fishery and another prohibition relating to the passage of fish. Finally, it provides transitional provisions relating to authorizations issued under the Fisheries Act before certain amendments to that Act come into force.
Division 5 of Part 4 enacts the Bridge To Strengthen Trade Act, which excludes the application of certain Acts to the construction of a bridge that spans the Detroit River and other works and to their initial operator. That Act also establishes ancillary measures. It also amends the International Bridges and Tunnels Act.
Division 6 of Part 4 amends Schedule I to the Bretton Woods and Related Agreements Act to reflect changes made to the Articles of Agreement of the International Monetary Fund as a result of the 2010 Quota and Governance Reforms. The amendments pertain to the rules and regulations of the Fund’s Executive Board and complete the updating of that Act to reflect those reforms.
Division 7 of Part 4 amends the Canada Pension Plan to implement the results of the 2010-12 triennial review, most notably, to clarify that contributions for certain benefits must be made during the contributory period, to clarify how certain deductions are to be determined for the purpose of calculating average monthly pensionable earnings, to determine the minimum qualifying period for certain late applicants for a disability pension and to enhance the authority of the Review Tribunal and the Pension Appeals Board. It also amends the Department of Human Resources and Skills Development Act to enhance the authority of the Social Security Tribunal.
Division 8 of Part 4 amends the Indian Act to modify the voting and approval procedures in relation to proposed land designations.
Division 9 of Part 4 amends the Judges Act to implement the Government of Canada’s response to the report of the fourth Judicial Compensation and Benefits Commission regarding salary and benefits for federally appointed judges. It also amends that Act to shorten the period in which the Government of Canada must respond to a report of the Commission.
Division 10 of Part 4 amends the Canada Labour Code to
(a) simplify the calculation of holiday pay;
(b) set out the timelines for making certain complaints under Part III of that Act and the circumstances in which an inspector may suspend or reject such complaints;
(c) set limits on the period that may be covered by payment orders; and
(d) provide for a review mechanism for payment orders and notices of unfounded complaint.
Division 11 of Part 4 amends the Merchant Seamen Compensation Act to transfer the powers and duties of the Merchant Seamen Compensation Board to the Minister of Labour and to repeal provisions that are related to the Board. It also makes consequential amendments to other Acts.
Division 12 of Part 4 amends the Customs Act to strengthen and streamline procedures related to arrivals in Canada, to clarify the obligations of owners or operators of international transport installations to maintain port of entry facilities and to allow the Minister of Public Safety and Emergency Preparedness to require prescribed information about any person who is or is expected to be on board a conveyance.
Division 13 of Part 4 amends the Hazardous Materials Information Review Act to transfer the powers and functions of the Hazardous Materials Information Review Commission to the Minister of Health and to repeal provisions of that Act that are related to the Commission. It also makes consequential amendments to other Acts.
Division 14 of Part 4 amends the Agreement on Internal Trade Implementation Act to reflect changes made to Chapter 17 of the Agreement on Internal Trade. It provides primarily for the enforceability of orders to pay tariff costs and monetary penalties made under Chapter 17. It also repeals subsection 28(3) of the Crown Liability and Proceedings Act.
Division 15 of Part 4 amends the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small businesses. An employer whose premiums were $10,000 or less in 2011 will be refunded the increase in 2012 premiums over those paid in 2011, to a maximum of $1,000.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide for an electronic travel authorization and to provide that the User Fees Act does not apply to a fee for the provision of services in relation to an application for an electronic travel authorization.
Division 17 of Part 4 amends the Canada Mortgage and Housing Corporation Act to remove the age limit for persons from outside the federal public administration being appointed or continuing as President or as a director of the Corporation.
Division 18 of Part 4 amends the Navigable Waters Protection Act to limit that Act’s application to works in certain navigable waters that are set out in its schedule. It also amends that Act so that it can be deemed to apply to certain works in other navigable waters, with the approval of the Minister of Transport. In particular, it amends that Act to provide for an assessment process for certain works and to provide that works that are assessed as likely to substantially interfere with navigation require the Minister’s approval. It also amends that Act to provide for administrative monetary penalties and additional offences. Finally, it makes consequential and related amendments to other Acts.
Division 19 of Part 4 amends the Canada Grain Act to
(a) combine terminal elevators and transfer elevators into a single class of elevators called terminal elevators;
(b) replace the requirement that the operator of a licensed terminal elevator receiving grain cause that grain to be officially weighed and officially inspected by a requirement that the operator either weigh and inspect that grain or cause that grain to be weighed and inspected by a third party;
(c) provide for recourse if an operator does not weigh or inspect the grain, or cause it to be weighed or inspected;
(d) repeal the grain appeal tribunals;
(e) repeal the requirement for weigh-overs; and
(f) provide the Canadian Grain Commission with the power to make regulations or orders with respect to weighing and inspecting grain and the security that is to be obtained and maintained by licensees.
It also amends An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to Repeal the Grain Futures Act as well as other Acts, and includes transitional provisions.
Division 20 of Part 4 amends the International Interests in Mobile Equipment (aircraft equipment) Act and other Acts to modify the manner in which certain international obligations are implemented.
Division 21 of Part 4 makes technical amendments to the Canadian Environmental Assessment Act, 2012 and amends one of its transitional provisions to make that Act applicable to designated projects, as defined in that Act, for which an environmental assessment would have been required under the former Act.
Division 22 of Part 4 provides for the temporary suspension of the Canada Employment Insurance Financing Board Act and the dissolution of the Canada Employment Insurance Financing Board. Consequently, it enacts an interim Employment Insurance premium rate-setting regime under the Employment Insurance Act and makes amendments to the Canada Employment Insurance Financing Board Act, the Department of Human Resources and Skills Development Act, the Jobs, Growth and Long-term Prosperity Act and Schedule III to the Financial Administration Act.
Division 23 of Part 4 amends the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act and makes consequential amendments to other Acts.
The Canadian Forces Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
The Public Service Superannuation Act is amended to provide that contributors pay no more than 50% of the current service cost of the pension plan. In addition, the pensionable age is raised from 60 to 65 in relation to persons who become contributors on or after January 1, 2013.
The Royal Canadian Mounted Police Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
Division 24 of Part 4 amends the Canada Revenue Agency Act to make section 112 of the Public Service Labour Relations Act applicable to the Canada Revenue Agency. That section makes entering into a collective agreement subject to the Governor in Council’s approval. The Division also amends the Canada Revenue Agency Act to require that the Agency have its negotiating mandate approved by the President of the Treasury Board and to require that it consult the President of the Treasury Board before determining certain other terms and conditions of employment for its employees.

Jobs and Growth Act, 2012

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I would like to pursue with my hon. friend the matter that I tried to pursue with the previous speech from the member from her caucus, which was to explain the constitutionality of basically the abandonment of navigation under the federal head of power in the Constitution. I hope it will not be unfair to my friend but I think she was present when we were discussing this.

Constitutional law, as I recited from Professor Peter Hogg who is the leading expert, requires that we look at the Constitution not based on what people designed things for in the 1860s but as they evolve. As Lord Sankey wrote in a decision of the high court in 1930, the BNA Act is like a tree planted in Canada that grows and evolves. That means that the meaning of “navigation” and “navigable waters” have changed since 1867. For generations, they have always included that we protect free-flowing rivers in Canada.

When the federal government, through Bill C-45, retreats from this, it would be illegal for any other level of government to step in to protect rights of navigation on waterways throughout Canada. How do we square this circle of unconstitutionality?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I am so glad to have a chance to ask the hon. member for Lethbridge a question related to the constitutionality of what the government is doing. It is particularly fascinating to hear the Conservative benches railing on socialism while they embrace communism. I find it fascinating.

Meanwhile, I have a constitutional law textbook here that points out that the idea of what the Navigable Waters Protection Act was intended to do in 1882 is entirely irrelevant and fanciful. Professor Peter Hogg writes that it is well established “that the general language used to describe the classes of subjects is not frozen in the sense in which it would have been understood in 1867”.

However, the Conservatives' approach to Bill C-45, as with Bill C-38, is to slash back the evolution of our Constitution and to insist that if it were not in the minds of people in 1882, the idea that the Navigable Waters Protection Act should protect the environment more generally is somehow erroneous.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, I listened to my colleague's comments in which he also mentioned environmental legislation. I would like to ask him a question about that with regard to Bill C-45. This is a continued theme in the current bill, as it was in Bill C-38, where there were significant cuts to the Fisheries Act and the Canadian Environmental Assessment Act.

In Bill C-45, there are changes to the Navigable Waters Protection Act. In fact, the term “water” is dropped from the title of the act. In my riding, for instance, waterways, rivers, creeks and lakes, are held in high regard and people expect them to be managed properly. This requires protective measures, like the Navigable Waters Protection Act. In fact, my riding is nestled between the world-famous Fraser River, known for its history and salmon, and Burrard Inlet in Port Moody. There are many other important waterways I could talk about, like the Coquitlam River, the Burnett River and Comeau Creek.

Does the member honestly think that the Navigable Waters Protection Act is not assisting in the protection of our great country and, in fact, is—

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I rise on a point of order. I would like to seek unanimous consent to move the following motion, and I know my colleagues will give that to me: That notwithstanding any Standing Order or usual practice of the House, clauses 308 to 314 related to changes to the Immigration and Refugee Protection Act be removed from Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures and do compose Bill C-47; that Bill C-47 be entitled “An act to amend the Immigration and Refugee Protection Act”; that Bill C-47 be deemed read a first time and be printed and that the order for the second reading of the said bill provide for the referral to the Standing Committee on Citizenship and Immigration; that Bill C-45 retain the status on the order paper that it had prior to the adoption of this order; that Bill C-45 be reprinted, as amended, and that the Law Clerk and Parliamentary Counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We propose the motion to give the Standing Committee on Citizenship and Immigration an opportunity to ensure due diligence to examine and propose amendments.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-45. I would like to open my remarks by joining those who spoke before me in saying that I do not agree with the way we are proceeding with Bill C-45, which is a mammoth omnibus bill. Call it what you will, but the fact remains that this bill is more than 400 pages long and has various parts dealing with different areas. Not only are we restricted to having only one debate, but we also have only one opportunity to vote on a massive bill containing a wide range of measures. For a party that boasted that it would be transparent and would stand up for democracy, this makes no sense. Frankly, we are wondering what has become of those lofty ideals today.

As a parliamentarian, I have to vote only once. This bill has some elements that I agree with and that I would be happy to vote in favour of. Unfortunately, it also has a number of incomplete and potentially harmful features that need major amendments or that should not be there in the first place. I am in a position where I have to vote for or against a wide range of measures and amendments. I think this way of doing things is neither transparent nor democratic.

A number of hon. members have asked us why we are complaining, because everything that is in Bill C-45 was already announced in the budget. I would like to set the record straight and say that that is not true. Not all the measures in Bill C-45 were in the budget. Let us stop lying to Canadians. That is shameful. For instance, one amendment in Bill C-45 has to do with the right of grain farmers to an appeal process. I did not find that in the main budget tabled last spring. The same goes for the Navigable Waters Protection Act.

There are things in Bill C-45 that were not clearly announced in the budget and that warrant careful consideration. Anytime we are faced with such an immense bill, there is always confusion and unexpected things.

The Liberals proposed removing the parts related to pensions from Bill C-45. If that proposal had been accepted, we would have voted in favour of the measure concerning members' pensions and the one concerning public service pensions and Canadian Forces members' pensions. With just one vote, and without any debate, we would have affected the pensions of over 450,000 Canadians.

Modifying people's pension plans without bothering to dedicate any time for consideration, debate or examination is such an insult. This shows a complete lack of respect and a negligent attitude toward democracy. The cavalier, disrespectful attitude this government is taking regarding such important issues for Canadians will undermine their confidence in our parliamentary system.

I would now like to take a closer look at one particular measure announced in Bill C-45: changing the eligibility age for public servants' retirement pensions. Anyone hired as of January 1, 2013, will receive his or her retirement pension at age 65 instead of 60. Five years is a long time; it is more than just a few weeks or a few months. This change is not really justified. The budget indicates that this measure is responsible and is important to ensuring the sustainability of the pension plan. However, those few words are by no means sufficient justification for making such a major change to the pension plan.

On what grounds is the viability of the program being determined? Perhaps there are reasonable grounds to believe the retirement age needs to be raised, but I doubt it. I will leave this open to discussion and debate. The government cannot simply declare that the viability is at risk and the age must therefore be raised; that is not enough. I want to see some figures and some studies proving that the viability is at risk at this time. I can easily draw a comparison with the changes announced to old age security.

All kinds of non-partisan expert studies show that old age security in its present form, with 65 as the age of eligibility, is sustainable in the long term. Of course we do not need complex calculations to know that costs will rise as the population ages. Old age security, a public pension program, will cost more because the proportion of seniors will be greater. Does this mean that the program is not sustainable in the long term? Not at all. Just because it will cost more does not mean that we will absolutely not be able to cover the costs. Experts' in-depth long-term analyses take into account a number of factors and unanimously confirm that old age security with 65 as the age of eligibility is a program that we can afford to keep.

On a number of occasions, the opposition has asked—as the critic for seniors, I have asked dozens of times—for the figures, studies and reports on which the government bases its claim that the viability of old age security is in jeopardy. To date, I have not seen any valid proof, or anything to justify these changes. The recent Auditor General's report clearly states that some figures and studies could have been made public to provide some indication of and information about the real reasons for changing the eligibility age for our old age security program. No figure has been published even though, in 2007, the government promised to do so and, in 2011, the Auditor General recommended that the government once again publish a report on long-term fiscal sustainability.

Furthermore, we also learned from the Auditor General's most recent report, which was released last week, that the Minister of Finance does not necessarily have all the information on the long-term impact of his decisions. He makes the decisions and then is subsequently informed by the department of the long-term impact of the decisions. Quite frankly, there is cause to be suspicious of the reasons for the changes proposed by Bill C-45 and by the Conservatives' most recent budget.

That concludes my remarks on pensions affected by Bill C-45 and the budget. I would also like to talk about another aspect related to Canadians' savings and their financial security: pooled registered pension plans.

Many experts agree that pooled registered pension plans will not enhance Canadians' financial security; rather, they will undermine it. Yes, we can do something to protect retirees' financial security. We can take meaningful steps and we can do it now if possible. The government should not introduce another savings vehicle similar to RRSPs and TFSAs. Not everyone contributes to RRSPs and TFSAs, which are savings vehicles. A whole lot of people cannot put money aside for retirement.

What are the unique advantages of a pooled registered pension plan? It will give employers the opportunity to provide a so-called pension plan—merely “so-called” because a PRPP is not a pension plan; it is a savings plan—without having to commit to anything. Employers can set up a plan that employees may contribute to if they want, which is fine, but employers do not actually have to do anything. If employers are not interested in participating, they simply do not have to. That is not a solution.

Many experts say that we have to rethink our defined benefit pension plan and that we have to protect it. That is the only thing that will put Canadians in a position to save for their retirement and allow them to count on a set amount of money when they retire. Changes are in order if we want to improve these pension plans and keep them viable. But we have to be serious about making those changes.

I could go on at length about this, but I see that my time is almost up. Nobody can cover everything in a 400-page bill in 10 minutes.

In closing, I want to say that, if the Minister of Finance thinks that austerity is prudent, he should be careful, because people must not be led to believe that the cuts he has proposed are in any way necessary. This is nothing but political rhetoric and lies, if I may say so.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Mr. Speaker, my colleague talked about job creation, which is at stake in Bill C-45. I would like to come back to that, because my colleague did not go into detail on the matter.

In the Auditor General's most recent report, we saw that the Minister of Finance's decisions were not backed by the figures in a report on long-term fiscal sustainability. In other words, the Minister of Finance is making decisions without truly knowing what impact these decisions will have on public finances over the long term, which is concerning.

I would like to know whether my colleague knows what long-term effects the elimination of tax credits for research and development will have, for example. In my riding, there is a company that just cut 300 jobs. This company was very active in research and development, which is why this question came to mind.

Does my colleague know the long-term effects of a decrease in tax credits for research and development? If so, what is he using to back his long-term predictions?

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

Mr. Speaker, it is a great privilege and a delight to speak to Bill C-45, the final implementation of the budget act, the jobs and growth act. It is titled, “jobs, growth and long-term prosperity”. The reason we chose that title is that the focus of this bill is for just that: for long-term prosperity, for jobs and for growth.

We have heard the numbers countless times. On our side of the House, we are reminded that since this government has been in office and since that horrendous crash in 2008-09 when so many jobs were wiped out, not only here in Canada but across the world, there has been an increase of 820,000 net new jobs. That is an outstanding number.

We also hear the statistics that we rank among the highest in the G8 nations, that we are in the best fiscal position and that we are among the highest in growth in G8 nations.

That does not say there is tremendous growth. We know that in the world today there has been an enormous slowdown. Yet repeatedly, for the last number of years, Canada has managed to hold a position and to build some strength in that position, as well.

We also know that when governments get it right, when governments help create healthy climates, jobs are created. That is the main focus of this government and the reason we have focused so much on those areas. We do that by, first, listening.

I have the privilege to serve on the finance committee. We are involved in budget consultations at this point. We meet every night, Monday, Tuesday, Wednesday and Thursday. We meet from 3:30 p.m. to 6:30 p.m. We ask people and groups from right across this country to come in to speak to us and to tell us what they feel this government has to do to be successful, to grow those jobs, to get those people back to work, to help young Canadians who are coming out schools, be they high schools, colleges or universities, to get jobs. We listen to these groups and these people.

We listen to industry. Again, I was fortunate, in the first four years I served in this House, to serve on the industry committee. In the industry committee, again, we invite industry; we invite labour; we invite all these groups to tell us just what we can do as a government to make things work.

It is people who create jobs. It is businesses that create jobs. Governments create healthy atmospheres.

We listen to business groups, we listen to labour and we listen to the experts. We learned great lessons from the member for Lanark—Frontenac—Lennox and Addington last Friday. He gave us a little essay in the house on Keynesian policies and how many governments today—most governments in the western world since before World War II—embarked upon that kind of plane where governments were told they need to spend to stimulate the economy. I think most of us would probably agree with that, but we have had a bit of runaway Keynesianism.

There was another school of thought at that time, the Austrian school, the Mises, that taught it is the responsibility of governments to maintain and make sure their books are in order. We did, and we do what the experts suggest we do. The first thing they tell us, repeatedly, is to get government spending under control, eliminate the deficit.

It is a fact that this government is concentrating on lowering government spending. We do not agree on both sides of the House. Often times, we hear it is the role of government to spend more, to spend our way out of a recession or that, rather than cut spending, maybe we ought to raise taxes.

We hear repeatedly, not just from businesses—obviously businesses do not want to be taxed and corporations do not want to be taxed—but we hear from the experts, the economists, that it works in reverse and ultimately when businesses and corporations are taxed, they take that cost and add it to the cost of products. Then we become uncompetitive in the world. Therefore, our goal on this side of the House is to make sure tax level does not become a burden and to make sure we do not impede growth.

One of the other things we heard repeatedly was to reduce red tape. Red tape is something that stagnates growth. It causes frustration in the marketplace. We have to eliminate those things that impede growth. I have spoken about a number of those areas, one of them being red tape. However, there are other things that governments do, oftentimes with the right intention, but we find out down the road that they cause more problems than they solve. Businesses asked that we not overburden them with taxes and regulations and that we open up the marketplace.

Canada is a trading nation. We are a nation that does a pretty good job at producing certain things. We are strong in extraction. We have a very rich resource sector. We are strong in service sectors, telecommunications and banking, and we do a good job in financing. We are able to export those to other countries. However, oftentimes there are trade barriers that pop up and make those things difficult for our companies. Therefore, our Minister of Trade has been extremely busy on a trade mission.

Let me read something he said:

In less than six years, [we have]...concluded trade agreements with nine countries: Colombia, Honduras, Jordan, Panama, Peru, and the European Free Trade Association member states of Iceland, Liechtenstein, Norway and Switzerland. Canada has also begun deepening trade and investment ties with the largest markets in the world, including the European Union, India and Japan.

The European Union has 500 million people.

Most recently, we announced in October that Canada has formally joined the trans-Pacific partnership, the TPP trade negotiations. This is a trade agreement under negotiation by 11 countries, which now include Canada and Mexico. The other members include Australia, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam.

Canadians can see that we are opening up these opportunities. This gives our companies, our people, an opportunity.

The Speaker is telling me I am running out of time, so I am going to talk about what is really near and dear to me, and that is the bridge to strengthening trade act. We have inserted a provision in the omnibus bill that allows for a bridge across to the United States in my neck of the woods, Chatham-Kent—Essex. Why this is so important is that we are a trading nation. The town of Leamington, which is part of my riding, has an enormous greenhouse industry. Two hundred trucks leave Leamington greenhouses bound for the U.S. every day. More than 70% of the greenhouse industry goes to the United States. There are 223 greenhouse operations in Ontario, and Leamington is home to the largest concentration of greenhouses. There are over 1,500 acres under cover. They tell me that one acre is equal to ten times the production on normal land. It is imperative that those goods get across to the United States. We need that crossing. Therefore, we have put a provision in the budget that would allow for its speedy construction.

I was also very privileged to be able to announce the gateway, the section of HIghway 401 to the bridge. Last year in August the government announced we would spend $1 billion. A very important part of the budget is the trade issue. It is very important in my riding.

I encourage the opposition to look at those great benefits, not only for the country but for areas like Chatham-Kent—Essex, where it is so important that we continue this trade.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, what is proposed in Bill C-45 will create a two-tier system for pension plans, which is obviously going to affect young people significantly. There are also all sorts of measures that will undermine the protection of the environment.

The hon. member has already mentioned that this will greatly affect her generation. As our leader often says, we are passing on a debt burden to future generations, whether in the form of environmental debt, economic debt, and so on.

Could the hon. member tell us about the problems that this could create for young people, who already do not trust politicians? How will they be affected overall?

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, I join with my colleagues in the New Democratic Party, the official opposition, to oppose yet another omnibus bill put forward by the government. It is a travesty when it comes to respecting not only the priorities of Canadians, but the kind of value that Canadians give to democracy, democratic debate and the roles of members of Parliament in the House. It is though the government had not learned from what we saw in the spring, the kind of opposition we saw from coast to coast to coast from Canadians on Bill C-38, the first omnibus bill in recent months that the government put forward.

We saw historic opposition on the kind of deregulation put forward in the environment, the damaging portions to do with pensions, specifically with respect to the OAS, the damage made by changes to employment insurance and the list goes on. Overall it was a budget bill that raised the ire of Canadians who did not send their members of Parliament, certainly the government members of Parliament in the House, to shove through legislation that would essentially decrease our standard of living. Yet, here we are again seeing the same kind of tricks being played by a government that truly is prepared to show contempt for democratic debate and the role we have been sent here to do.

I am proud to be part of the NDP, a party that not only has the word “democratic” in its name, but a party that believes debate and representing Canadians, which is what we have been sent here to do, rather than telling people stories of what they are supposedly doing in the House. The real story is one that is rather devastating.

Bill C-45 is another massive omnibus bill that makes amendments to a wide range of acts. Once again, the Conservatives are trying to ram legislation through Parliament, without allowing Canadians and members of Parliament to thoroughly examine it. The Conservatives claim that budget 2012 is about job creation, but the Parliamentary Budget Officer says that this budget will cost 43,000 Canadian jobs. That is not job creation; that is a massive bleeding of good, solid Canadian jobs that the government is enforcing through this budget bill.

The budget plans for unemployment to rise. As we know, the National Capital Region has been hit disproportionately hard given the massive cuts to the public sector. However, the region in the part of the country that I come from, Manitoba and the Prairies, has been the single most effected region, outside of the National Capital Region, when it comes to cuts to the public service, whether it is the Department of Agriculture and Agri-Food, which has been hit hard, or it is a number of other departments that have been affected. The domino effect is the lose of good, solid jobs for our communities.

While Canadians want us to take action to protect our environment and grow a sustainable economy for the future, the Conservatives are focused on gutting environmental protection regulation. We saw that in Bill C-38. We very clearly see it again in Bill C-45 through the changes to the Navigable Waters Protection Act and a massive disconnect on the part of the government.

Canadians view environmental sustainability as being key to the way we move forward. We used to be recognized as leaders and a country that sought to find a balance between economic development and environmental sustainability. Now we are seen as a global shame because of the kind of policies the Prime Minister and his government have put forward. Not only have they gone as far as failing to move forward on environmental stewardship inaction, but they have also gutted legislation that is absolutely key to ensuring that the kind of development that takes place across our country is done within parameters that support environmental sustainability.

Churchill, in northern Manitoba, is part of a province that depends a great deal on the wealth that comes from waterways, whether it is rivers or lakes. Seeing the changes in the Navigable Waters Protection Act is damaging to the kind of development that Manitobans want, one that respect waterways, first nations and communities that are on or close to the water. Unfortunately, once again, the federal government will not stand up for the province of Manitoba and the many Canadians that want economic development to be done with a sustainable lens.

The Conservatives have clearly not learned their lesson and the official opposition will not let them quietly pass their new omnibus legislation. We believe Canadians deserve better. We in the NDP will always be proud to stand up for transparency and accountability. We will always stand up for environmental protection, retirement security and health care, which were key points that were attacked in Bill C-38 and continue to be attacked in the latest reincarnation of the Conservative government's sham representation of the interests of Canadians.

Let us look at Bill C-45 more closely. A key damaging point is the area of public pensions. New Democrats are concerned by the creation of a two-tiered workforce in which younger people have to work longer for the same retirement benefits. Those younger people are from my generation, a generation of people who go into workplaces. Hopefully a number of them will be able to work in the public service supporting the kinds of services and sectors we need in our country. Unfortunately, the bar has been raised for them in many ways and they will not have access to the same quality of life as their parents. That is what it is really about. A two-tiered system means that the people of my generation will be set up to live a life with greater job insecurity and a higher cost of living knowing that their retirement benefits will have been gutted, and that is not fair.

When Conservative members go back to their ridings, how do they make this kind of two-tiered workforce palatable to the young people who live in their constituencies, the next generation of Canadians who want to contribute to society, our communities and our economy? The reality is they will be unable to make the same kinds of long-term plans that they or certainly their parents have made because the odds have been stacked against them. It is particularly shameful that the odds have been stacked against them in large part due to the government's desire to make the playing field more difficult for us.

The changes in the public service pension system come in a context where the Conservative government is failing to take action on youth unemployment and crippling student debt, while also making young people work longer before qualifying for OAS benefits. We have a good idea what the actions the government is taking today will mean in terms of a reduced ability by Canadian young people to contribute to the economy, whether it is in the tax base, or purchasing homes and taking part in the homebuyers' market or consumption in the economy, which is something in which the government seems to be interested. We are going to see a marked reduction in the ability of future generations of Canadians to contribute to the economy.

A final point that I would like to make is with respect to my particular region and the devastating impact Bill C-45 will have when it comes to the Canadian Grain Commission. I am proud to represent the community of Churchill where hard-working people have worked for the CGC for decades and have ensured that Canadian wheat is the best in the world. Unfortunately, Bill C-45 weakens the Canada Grain Act, which means we will lose inward inspections, farmers will be faced with a reduced profit margin because of the fact that we will not have rigorous inspection of the wheat we export, as well as domestic consumption, and that is not okay.

Canada is proud of the kind of wheat products we have sold around the world. This means losing solid jobs from communities like Churchill, Thunder Bay and Vancouver, and it is certainly in line with the government's failure to realize it is here to show leadership. Thankfully, we in the NDP will continue to do that and fight against Bill C-45.

The House resumed from October 26 consideration of the motion that Bill C-45, A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, be read the second time and referred to a committee.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I would like to thank the hon. member for his speech, even though I am still trying to understand some things about the bill.

The finance minister said that everything in Bill C-45 can be found in the budget.

When we received the information on this bill—and there has been a lot of publicity on this issue—we asked where in the budget the references to navigable waters could be found. We were told to refer to page 282 of the budget, which indicates that $37 million in savings have been planned at Transport Canada.

From this, we were supposed to understand what our colleague was explaining to us about all the advantages and effects of this bill. But, on the contrary, what we are seeing are the negative effects it will have on environmental protection.

Can the hon. member tell me where in the budget we can find an explanation for everything he has said about our waterways?

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

Mr. Speaker, I rise today to speak to Bill C-45, the second budget implementation act. This is yet another massive omnibus budget bill, which is 414 pages in length with 516 separate clauses amending more than 60 different laws. It is simply too big for Parliament to consider properly in just a short period of time. The Conservatives are counting on us rushing this through at record speed and they are trying to avoid real scrutiny in this Parliament.

The Conservatives are continuing their reckless abuse of power by using these huge omnibus bills and underhanded procedural manoeuvres to force unpopular policies through. They are doing this despite public outcry from coast to coast to coast. They are using this so-called budget bill to gut the Navigable Waters Protection Act, redefine aboriginal fisheries and amend the Indian Act without consulting first nation communities, despite the government's constitutional responsibility and duty to consult. They are using this so-called budget act to shield the government from lawsuits by creating loopholes in Canada's environmental laws and retroactively changing the Customs Act. They are eliminating the Hazardous Materials Information Review Commission and implementing an overhaul of the Canadian Grain Commission.

These are just a few examples of elements of the bill that are significant and have nothing to do with the fiscal policy of the government, which is actually what a budget and a budget implementation act ought to be focused on. The Conservatives are rushing through these changes so that Canadians will not realize what has happened until it is too late. They have established a pattern of overwhelming our democratic system with overloaded budget bills that have nothing or little to do with the actual budgets themselves.

Buried in these massive bills are a number of mistakes. In fact, the Conservatives are already using Bill C-45 to correct mistakes they made in Bill C-38 last spring. The mistakes range from poorly written transition provisions in the new environmental assessment law to reinserting protections in the Fisheries Act that were mistakenly or inadvertently erased, to clarifying rules for approving foreign investments in our banks. These were mistakes in Bill C-38 in the spring. They slipped through the cracks because they were in a huge omnibus bill that denied Parliament the opportunity to thoroughly study and more importantly, not just to study but ultimately to vote on these changes individually.

Now the Conservatives want to fix some of these mistakes with measures in yet another omnibus budget bill that they want to rush into law. In this budget implementation bill the Conservatives are breaking promises made in budget 2012. The Conservatives want to use Bill C-45 to take public policy decisions that are contrary to what was in the budget in 2012. It is a farce when the Conservatives say that everything in Bill C-45 can be found in the budget. The reality is that some of what is in the legislation is completely opposite to what was promised in the budget of 2012.

Page 146 of the budget states that “[O]ver the next few years, the Canada Employment Insurance Financing Board...will continue to set the rate” for EI premiums. However, Bill C-45 explicitly gets rid of the board's authority to set EI rates.

Here is another example. Page 268 of the budget keeps the Hazardous Materials Information Review Commission, but Bill C-45 actually eliminates the commission altogether. We all remember how earlier this year the Conservatives broke their promise not to cut old age security.

It is also important to realize what is not in Bill C-45. Despite the size and breadth of this omnibus budget bill and the promises it breaks, Bill C-45 is remarkable as well for what it does not address. There is nothing in the bill to address some of the most serious challenges facing Canada. Canadians have identified growing income inequality as one of the biggest challenges facing the country, but there is nothing in Bill C-45 to address growing income gaps. There is nothing in Bill C-45 to address growing gaps between the provinces.

Canada's resource-driven recovery has increased, in fact, inequality among the regions in many ways. While it is positive that we have all of these natural resources, they are largely concentrated in a couple of provinces and the gap between those provinces in a resource-driven recovery and the other provinces is growing. I will give an example.

A province like Alberta is increasing education spending dramatically and I commend it for doing that. Investing in education is a good thing. At the same time, Nova Scotia's provincial government is cutting funding for public education by 30%. Therefore, it is not just a question of income inequality, it is a question of equality of opportunity. This is where we need a robust federal government that is working with the provinces, meeting with the provinces and ensuring that we do not see today's income inequality become tomorrow's inequality of opportunity.

This growing divide between the provinces is a major issue in Canada. In the last 12 months, over 40% of Canada's new full-time jobs were in just three provinces: Alberta, Saskatchewan and Newfoundland and Labrador. These are the provinces with the greatest wealth of natural resources. It is where we can find 40% of the new jobs, but only 15% of the population. Provinces without resources are losing workers and being forced to slash funding for social programs. These are the programs that ensure equality of opportunity for the next generation.

There was a time when the Prime Minister said he would meet regularly with the premiers to discuss these types of issues. There was a time that ministers of intergovernmental affairs were senior members of the cabinet. People like the right hon. Joe Clark served as an intergovernmental affairs minister in the Mulroney government. Lucienne Robillard was a former minister in the provincial government in Quebec. The member for Saint-Laurent—Cartierville, a very senior expert on intergovernmental and constitutional affairs, was a minister of intergovernmental affairs.

Under the Conservatives, the minister of intergovernmental affairs is, effectively, a minister without portfolio. The minister of intergovernmental affairs does not have any standing in the Conservative government. That is not purely a reflection of the current minister, it is a reflection of an attitude toward the provinces that pervades the government.

The Prime Minister's refusal to meet with the premiers, his my way or the highway approach, has created a vacuum of federal leadership on these issues. Now we have a budget bill with no serious plan to work with the provinces on programs that would deal with issues such as income inequality and the growing inequality of opportunity, programs like a national early learning strategy or a national lifelong skills development strategy or federal leadership in working with the provinces to restore the honour of skilled trades, which is something that is incredibly important in Canada at a time when we have people without jobs and jobs without people.

Despite the uncertainty of the economy and the enormity of the challenges we face as a nation, there is precious little in Bill C-45 to help create jobs for today and jobs for the future. In fact, the spring budget bill actually made income inequality worse with cuts to OAS and EI. Bill C-45 would actually cut the very programs that encourage job creation and help our economy grow. It would cut SR&ED tax credits.

We have heard from industry, the science community, the biotech community and the manufacturers that the SR&ED program is important. The government would actually cut it. It would kill the corporate mineral exploration and development tax credits, which is dangerously short-sighted at a time when it is difficult for the mining and junior mining industries to raise money.

It also would kill the Atlantic investment tax credit for oil, gas and mining at a time when the Atlantic Canadian economy is still facing significant challenges. It would do nothing to address Canada's dangerously high levels of household debt. The fact is that for every $1 of annual income, Canadian families have $1.63 of household debt.

There is nothing to address these major and important issues that are actually related to the fiscal priorities of Canadians in the budget bill. Instead, the Conservatives are addressing a lot of other issues that have nothing to do with the fiscal reality of the country or the fiscal priorities of the government.

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I rise on a point of order.

I would like to seek unanimous consent to move the following motion: that notwithstanding any Standing Order or usual practice of the House, clauses 264 to 268, related to changes to the Customs Act, be removed from Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures, and do compose Bill C-47; that Bill C-47 be entitled “An Act to amend the Customs Act”; that Bill C-47 be deemed read a first time and printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Public Safety and National Security; that Bill C-45 retain the status on the order paper that it had prior to the adoption of this order; that Bill C-45 be reprinted as amended; and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing the motion in order to make sure that the government's proposal to implement electronic travel authorization gets the full consideration it should have. The government has proposed that parts of the bill go to committee but not be amended or voted upon separately. Therefore, this motion aims to correct that gap to allow for full debate and full consideration by providing a separate bill on this important matter.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I have discovered a measure in Bill C-45 that I cannot figure out with respect to how it would help jobs, growth and the economy, so perhaps the hon. member can help me.

It would create a whole new barrier to tourism in Canada. It would require an electronic verification of anyone coming from a country that does not require a visa from the Government of Canada before he or she can come for a visit. It does not include people who are claiming refugee status, nor those wanting permanent residency. Any traveller wanting to visit Canada, such as a British doctor who has always dreamed of crossing Canada by rail, would first have to clear an online questioning system and find out from the Minister of Immigration if he or she is admissible.

How does this help tourism, which includes jobs?

[Royal Galipeau, Conservative, Ottawa—Orléans, ON]

Mr. Speaker, on behalf of the good and wise people of Ottawa—Orléans, I am pleased to rise today to speak to Bill C-45, the jobs and growth act, 2012.

Since our election 2,469 days ago, this government has made job creation, growth and economic prosperity its top priorities. This is increasingly true in this 41st Parliament. Despite a weak and uncertain global economy and a sluggish recovery, 820,000 new jobs have been created in Canada since July 2009.

While the government has produced excellent results in terms of job creation and the economy, there is still much work to be done.

Bill C-45 will help us to continue the success and enable Canada to remain a global economic leader. While the government focuses on a plan to promote job creation through competitive taxes, the opposition is dreaming up schemes for higher taxation, as I mentioned in this House nine days ago. For instance, there is a carbon tax on everything, and taking $21 billion out of the pockets of hard-working Canadian taxpayers.

Speaking of lower taxes from this side, this government has offered tax relief in 140 instances since 2006, and has reduced rates for people in the lowest tax brackets in particular.

That is how you help an entire country come out of a recession. The jobs and growth act, 2012, would stimulate the Canadian economy and create even more jobs. How? By extending the hiring credit for small business for another year. Small businesses are economic drivers for Canada and also for Ottawa–Orléans. Last year, this credit helped some 534,000 Canadians.

In Orléans, businesses, such as the very meticulous Sure Print can receive a hiring credit of up to $1,000. Other measures will foster a healthy climate for job creation. They include promoting interprovincial trade, improving the legislative framework for Canada's financial institutions, facilitating cross-border travel, removing red tape and reducing fees for Canada's grain farmers and supporting the country's commercial aviation sector.

In recent months, shortly before the government released its economic action plan 2012, scaremongers tried to stir up public fears about the government’s proposed changes to Canada's pension plans.

Earlier this year, on January 9, I wrote to the Prime Minister, the Minister of Finance and the President of the Treasury Board, stating the following:

In my view, it would be fair to change the benefits offered to our public servants yet to be hired. On the other hand, it would be wrong to change the conditions of employment retroactively. It certainly would be wrong to reduce the benefits of people who are already retired.

In his reply, which is available at my constituency office, the Prime Minister made it very clear, when he wrote in his own hand:

[First name of member for Ottawa-Orléans], I agree with you. No changes can be made retroactively.

That reply shows the wisdom and statesmanship of this Prime Minister. He has kept his word. In fact, the only person who will be subject to retroactive reductions to his pension is the Prime Minister himself. This is yet another demonstration of his selflessness in the service of Canadians.

The government has taken landmark action to ensure that the pension plans for members of this House and of the other place and federal public servants are sustainable and financially responsible. These plans will be consistent with the pension products offered by other jurisdictions and will be fair relative to plans offered in the private sector.

Bill C-45 would amend the Public Service Superannuation Act so that contributors would pay no more than 50% of the current service costs of the pension plan, by 2017. In addition, as of 2015, people entering the public service and future parliamentarians would be eligible for their pension at age 65 rather than the current age of 55.

Through changes to the pension plans for federal public servants and parliamentarians, the Government of Canada estimates it will save $2.6 billion over five years. That is a significant amount.

Let us remember, like the old age security program, there will be no retroactive changes to the Public Service Superannuation Act. None.

I personally intervened and the government has listened.

The members of this House are leading by example. It is our duty to do so.

On another subject, the government is focused on the needs of families.

Bill C-45 would improve the registered disability savings plan and help some of the most vulnerable people in society. As of January 1, 2014, the income from a registered education savings plan for a child with a disability could be rolled over to a registered disability savings plan if the child has a severe and prolonged mental impairment and would likely be unable to pursue post-secondary studies. This initiative would offer more flexibility and options to families with a disabled child.

As I am sure members know, children’s health is a subject close to my heart. On September 19, I introduced Motion M-319, which the House unanimously approved. The motion encouraged the government to continue promoting healthy food choices among children as a way to address the serious issue of childhood obesity.

The economic action plan 2012 proposes measures that support M-319.

It promotes a more active lifestyle for young people by continuing to support ParticipACTION. This valuable organization works with provincial partners to provide community-based health and fitness programs.

This is just one of the many initiatives the government has introduced since 2006, such as the children's fitness tax credit and the children's arts tax credit, which I had promoted.

Seniors play an important role in the lives of families and the Orléans community. A visit to places such as the Regroupement des aînés francophones d’Orléans, the Roy G. Hobbs Seniors Centre or Royal Garden will show how much seniors have to offer.

Since 2006, the government has provided solid support to seniors through $2.5 billion in tax relief. In addition, 380,000 seniors no longer pay federal income tax. The government has also introduced pension income splitting. I worked closely with my colleagues on this issue.

The economic action plan 2012 also supports seniors through the third quarter project, an initiative program that lets employers benefit from the experience of workers aged 50 and over who want to apply their skills in the labour market. With Ottawa's relatively no unemployment rate, employers can have a tough time finding employees with the right skills. Third quarter, which has received $6 million in funding, can help companies here and across Canada find the people they need.

I see the signal that my time is running out. However, there is so much that this budget document is presenting. There are no surprises there. These are the issues that we fought the last election on. These are the issues that we voted on, hours upon hours, last June. We are getting the job done.