Bill C-38 (Historical)

Jobs, Growth and Long-term Prosperity Act

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

Part 1 of this enactment implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) expands the list of eligible expenses under the Medical Expense Tax Credit to include blood coagulation monitors and their disposable peripherals;
(b) introduces a temporary measure to allow certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract;
(c) extends, for one year, the temporary Mineral Exploration Tax Credit for flow-through share investors;
(d) allows corporations to make split and late eligible dividend designations;
(e) makes the salary of the Governor General taxable and adjusts that salary;
(f) allows a designated partner of a partnership to provide a waiver on behalf of all partners to extend the time limit for issuing a determination in respect of the partnership;
(g) amends the penalty applicable to promoters of charitable donation tax shelters who file false registration information or who fail to register a tax shelter prior to selling interests in the tax shelter;
(h) introduces a new penalty applicable to tax shelter promoters who fail to respond to a demand to file an information return or who file an information return that contains false or misleading sales information;
(i) limits the period for which a tax shelter identification number is valid to one calendar year;
(j) modifies the rules for registering certain foreign charitable organizations as qualified donees;
(k) amends the rules for determining the extent to which a charity has engaged in political activities; and
(l) provides the Minister of National Revenue with the authority to suspend the privileges, with respect to issuing tax receipts, of a registered charity or a registered Canadian amateur athletic association if the charity or association fails to report information that is required to be filed annually in an information return or devotes resources to political activities in excess of the limits set out in the Income Tax Act.
Part 1 also implements other selected income tax measures and related measures. Most notably, it
(a) amends the Income Tax Act consequential on the implementation of the Marketing Freedom for Grain Farmers Act, including the extension of the tax deferral allowed to farmers in a designated area who produce listed grains and receive deferred cash purchase tickets to all Canadian farmers who produce listed grains and receive deferred cash purchase tickets;
(b) provides authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return; and
(c) introduces a requirement for commercial tax preparers to file income tax returns electronically.
Part 2 amends the Excise Tax Act to implement certain excise tax and goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 29, 2012 Budget. It expands the list of GST/HST zero-rated medical and assistive devices as well as the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases. It also exempts certain pharmacists’ professional services from the GST/HST, other than prescription drug dispensing services that are already zero-rated. It further allows certain literacy organizations to claim a rebate of the GST and the federal component of the HST paid on the acquisition of books to be given away for free by those organizations. It also implements legislative requirements relating to the Government of British Columbia’s decision to exit the harmonized sales tax framework. Additional amendments to that Act and related regulations in respect of foreign-based rental vehicles temporarily imported by Canadian residents provide, in certain circumstances, relief from the GST/HST, the Green Levy on fuel-inefficient vehicles and the automobile air conditioner tax. This Part further amends that Act to ensure that changes to the standardized fuel consumption test method used for the EnerGuide, as announced on February 17, 2012 by the Minister of Natural Resources, do not affect the application of the Green Levy.
Finally, Part 2 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to provide authority for the Canada Revenue Agency to issue via online notice or regular mail demands to file a return.
Part 3 contains certain measures related to responsible resource development.
Division 1 of Part 3 enacts the Canadian Environmental Assessment Act, 2012, which establishes a new federal environmental assessment regime. Assessments are conducted in relation to projects, designated by regulations or by the Minister of the Environment, to determine whether they are likely to cause significant adverse environmental effects that fall within the legislative authority of Parliament, or that are directly linked or necessarily incidental to a federal authority’s exercise of a power or performance of a duty or function that is required for the carrying out of the project.
The Canadian Environmental Assessment Agency, the Canadian Nuclear Safety Commission, the National Energy Board or a review panel established by the Minister are to conduct assessments within applicable time limits. At the end of an assessment, a decision statement is to be issued to the project proponent who is required to comply with the conditions set out in it.
The enactment provides for cooperation between the federal government and other jurisdictions by enabling the delegation of an environmental assessment, the substitution of the process of another jurisdiction for an environmental assessment under the Act and the exclusion of a project from the application of the Act when there is an equivalent assessment by another jurisdiction. The enactment requires that there be opportunities for public participation during an environmental assessment, that participant funding programs and a public registry be established, and that there be follow-up programs in relation to all environmental assessments. It also provides for powers of inspection and fines.
Finally, the enactment specifies that federal authorities are not to take certain measures regarding the carrying out of projects on federal lands or outside Canada unless they determine that those projects are not likely to cause significant adverse environmental effects.
This Division also makes related amendments to the Environmental Violations Administrative Monetary Penalties Act and consequential amendments to other Acts, and repeals the Canadian Environmental Assessment Act.
Division 2 of Part 3 amends the National Energy Board Act to allow the Governor in Council to make the decision about the issuance of certificates for major pipelines. It amends the Act to establish time limits for regulatory reviews under the Act and to enhance the powers of the National Energy Board Chairperson and the Minister responsible for the Act to ensure that those reviews are conducted in a timely manner. It also amends the Act to permit the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters and it establishes an administrative monetary penalty system.
Division 3 of Part 3 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to exercise federal jurisdiction over navigation in respect of pipelines and power lines that cross navigable waters.
Division 4 of Part 3 amends the Nuclear Safety and Control Act to extend the maximum allowable term of temporary members of the Canadian Nuclear Safety Commission from six months to three years. It is also amended to allow for a licence to be transferred with the consent of that Commission and it puts in place an administrative monetary penalty system.
Division 5 of Part 3 amends the Fisheries Act to focus that Act on the protection of fish that support commercial, recreational or Aboriginal fisheries and to more effectively manage those activities that pose the greatest threats to these fisheries. The amendments provide additional clarity for the authorization of serious harm to fish and of deposits of deleterious substances. The amendments allow the Minister to enter into agreements with provinces and with other bodies, provide for the control and management of aquatic invasive species, clarify and expand the powers of inspectors, and permit the Governor in Council to designate another Minister as the Minister responsible for the administration and enforcement of subsections 36(3) to (6) of the Fisheries Act for the purposes of, and in relation to, subject matters set out by order.
Division 6 of Part 3 amends the Canadian Environmental Protection Act, 1999 to provide the Minister of the Environment with the authority to renew disposal at sea permits in prescribed circumstances. It is also amended to change the publication requirements for disposal at sea permits and to provide authority to make regulations respecting time limits for their issuance and renewal.
Division 7 of Part 3 amends the Species at Risk Act to allow for the issuance of authorizations with a longer term, to clarify the authority to renew the authorizations and to make compliance with conditions of permits enforceable. The Act is also amended to provide authority to make regulations respecting time limits for the issuance and renewal of permits under the Act. Furthermore, section 77 is amended to ensure that the National Energy Board will be able to issue a certificate when required to do so by the Governor in Council under subsection 54(1) of the National Energy Board Act.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends a number of Acts to eliminate the requirement for the Auditor General of Canada to undertake annual financial audits of certain entities and to assess the performance reports of two agencies. This Division also eliminates other related obligations.
Division 2 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Cooperative Credit Associations Act to prohibit the issuance of life annuity-like products.
Division 3 of Part 4 provides that PPP Canada Inc. is an agent of Her Majesty for purposes limited to its mandated activities at the federal level, including the provision of advice to federal departments and Crown corporations on public-private partnership projects.
Division 4 of Part 4 amends the Northwest Territories Act, the Nunavut Act and the Yukon Act to provide the authority for the Governor in Council to set, on the recommendation of the Minister of Finance, the maximum amount of territorial borrowings and to make regulations in relation to those maximum amounts, including what constitutes borrowing, the relevant entities and the valuation of the borrowings.
Division 5 of Part 4 amends the Financial Administration Act to modify, for parent Crown corporations, the period to which their quarterly financial reports relate, so that it is aligned with their financial year, and to include in the place of certain annual tabling requirements related to the business and activities of parent Crown corporations a requirement to make public consolidated quarterly reports on their business and activities. It also amends the Alternative Fuels Act and the Public Service Employment Act to eliminate certain reporting requirements.
Division 6 of Part 4 amends the Department of Human Resources and Skills Development Act to establish the Social Security Tribunal and to add provisions authorizing the electronic administration or enforcement of programs, legislation, activities or policies. It also amends the Canada Pension Plan, the Old Age Security Act and the Employment Insurance Act so that appeals from decisions made under those Acts will be heard by the Social Security Tribunal. Finally, it provides for transitional provisions and makes consequential amendments to other Acts.
Division 7 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the protection of personal information obtained in the course of administering or enforcing the Canada Pension Plan and the Old Age Security Act and repeals provisions in the Canada Pension Plan and the Old Age Security Act that are substantially the same as those that are added to the Human Resources and Skills Development Act.
Division 8 of Part 4 amends the Department of Human Resources and Skills Development Act to add provisions relating to the social insurance registers and Social Insurance Numbers. It also amends the Canada Pension Plan in relation to Social Insurance Numbers and the Employment Insurance Act to repeal certain provisions relating to the social insurance registers and Social Insurance Numbers and to maintain the power to charge the costs of those registers to the Employment Insurance Operating Account.
Division 9 of Part 4 amends the Parks Canada Agency Act to provide that the Agency may enter into agreements with other ministers or bodies to assist in the administration and enforcement of legislation in places outside national parks, national historic sites, national marine conservation areas and other protected heritage areas if considerations of geography make it impractical for the other minister or body to administer and enforce that legislation in those places. It also amends that Act to provide that the Chief Executive Officer is to report to the Minister of the Environment under section 31 of that Act every five years. It amends that Act to remove the requirements for annual corporate plans, annual reports and annual audits, and amends that Act, the Canada National Parks Act and the Canada National Marine Conservation Areas Act to provide that that Minister is to review management plans for national parks, national historic sites, national marine conservation areas and other protected heritage areas at least every 10 years and is to have any amendments to a plan tabled in Parliament.
Division 10 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act in order to allow public sector investment pools that satisfy certain criteria, including pursuing commercial objectives, to directly invest in a Canadian financial institution, subject to approval by the Minister of Finance.
Division 11 of Part 4 amends the National Housing Act, the Canada Mortgage and Housing Corporation Act and the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act to enhance the governance and oversight framework of the Canada Mortgage and Housing Corporation.
This Division also amends the National Housing Act to establish a registry for institutions that issue covered bonds and for covered bond programs and to provide for the protection of covered bond contracts and covered bond collateral in the event of an issuer’s bankruptcy or insolvency. It also makes amendments to the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to prohibit institutions from issuing covered bonds except within the framework established under the National Housing Act. Finally, it includes a coordinating amendment to the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act.
Division 12 of Part 4 implements the Framework Agreement on Integrated Cross-Border Maritime Law Enforcement Operations between the Government of Canada and the Government of the United States of America signed on May 26, 2009.
Division 13 of Part 4 amends the Bretton Woods and Related Agreements Act to reflect an increase in Canada’s quota subscription, as related to the ratification of the 2010 Quota and Governance reform resolution of the Board of Governors of the International Monetary Fund, and to align the timing of the annual report under that Act to correspond to that of the annual report under the Official Development Assistance Accountability Act.
Division 14 of Part 4 amends the Canada Health Act so that members of the Royal Canadian Mounted Police are included in the definition of “insured person”.
Division 15 of Part 4 amends the Canadian Security Intelligence Service Act to
(a) remove the office of the Inspector General;
(b) require the Security Intelligence Review Committee to submit to the Minister of Public Safety and Emergency Preparedness a certificate on the Director of the Canadian Security Intelligence Service’s annual report; and
(c) increase the information on the Service’s activities to be provided by that Committee to that Minister.
Division 16 of Part 4 amends the Currency Act to clarify certain provisions that relate to the calling in and the redemption of coins.
Division 17 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act in order to implement the total transfer protection for the 2012-2013 fiscal year and to give effect to certain elements of major transfer renewal that were announced by the Minister of Finance on December 19, 2011. It also makes certain administrative amendments to that Act and to the Canada Health Act.
Division 18 of Part 4 amends the Fisheries Act to authorize the Minister of Fisheries and Oceans to allocate fish for the purpose of financing scientific and fisheries management activities in the context of joint project agreements.
Division 19 of Part 4 amends the Food and Drugs Act to give the Minister of Health the power to establish a list that sets out prescription drugs or classes of prescription drugs and to provide that the list may be incorporated by reference. It also gives the Minister the power to issue marketing authorizations that exempt a food, or an advertisement with respect to a food, from certain provisions of the Act. The division also provides that a regulation with respect to a food and a marketing authorization may incorporate by reference any document. It also makes consequential amendments to other Acts.
Division 20 of Part 4 amends the Government Employees Compensation Act to allow prescribed entities to be subrogated to the rights of employees to make claims against third parties.
Division 21 of Part 4 amends the International Development Research Centre Act to reduce the maximum number of governors of the Centre to 14, and to consequently change other rules about the number of governors.
Division 22 of Part 4 amends Part I of the Canada Labour Code to require the parties to a collective agreement to file a copy of it with the Minister of Labour, subject to the regulations, as a condition for it to come into force. It amends Part III of that Act to require employers that provide benefits to their employees under long-term disability plans to insure those plans, subject to certain exceptions. The Division also amends that Part to create an offence and to increase maximum fines for offences under that Part.
Division 23 of Part 4 repeals the Fair Wages and Hours of Labour Act.
Division 24 of Part 4 amends the Old Age Security Act to provide the Minister of Human Resources and Skills Development with the authority to waive the requirement for an application for Old Age Security benefits for many eligible seniors, to gradually increase the age of eligibility for the Old Age Security Pension, the Guaranteed Income Supplement, the Allowance and the Allowance for the Survivor and to allow individuals to voluntarily defer their Old Age Security Pension up to five years past the age of eligibility, in exchange for a higher, actuarially adjusted, pension.
Division 25 of Part 4 dissolves the Public Appointments Commission and its secretariat.
Division 26 of Part 4 amends the Seeds Act to give the President of the Canadian Food Inspection Agency the power to issue licences to persons authorizing them to perform activities related to controlling or assuring the quality of seeds or seed crops.
Division 27 of Part 4 amends the Statutory Instruments Act to remove the distribution requirements for the Canada Gazette.
Division 28 of Part 4 amends the Investment Canada Act in order to authorize the Minister of Industry to communicate or disclose certain information relating to investments and to accept security in order to promote compliance with undertakings.
Division 29 of Part 4 amends the Customs Act to allow the Minister of Public Safety and Emergency Preparedness to designate a portion of a roadway or other access way that leads to a customs office and that is used by persons arriving in Canada and by persons travelling within Canada as a mixed-traffic corridor. All persons who are travelling in a mixed-traffic corridor must present themselves to a border services officer and state whether they are arriving from a location outside or within Canada.
Division 30 of Part 4 gives retroactive effect to subsections 39(2) and (3) of the Pension Benefits Standards Act, 1985.
Division 31 of Part 4 amends the Railway Safety Act to limit the apportionment of costs to a road authority when a grant has been made under section 12 of that Act.
Division 32 of Part 4 amends the Canadian International Trade Tribunal Act to replace the two Vice-chairperson positions with two permanent member positions.
Division 33 of Part 4 repeals the International Centre for Human Rights and Democratic Development Act and authorizes the closing out of the affairs of the Centre established by that Act.
Division 34 of Part 4 amends the Health of Animals Act to allow the Minister of Agriculture and Agri-Food to declare certain areas to be control zones in respect of a disease or toxic substance. The enactment also grants the Minister certain powers, including the power to make regulations prohibiting the movement of persons, animals or things in the control zones for the purpose of eliminating a disease or toxic substance or controlling its spread and the power to impose conditions on the movement of animals or things in those zones.
Division 35 of Part 4 amends the Canada School of Public Service Act to abolish the Board of Governors of the Canada School of Public Service and to place certain responsibilities on the Minister designated for the purposes of the Act and on the President of the School.
Division 36 of Part 4 amends the Bank Act by adding a preamble to it.
Division 37 of Part 4 amends the Corrections and Conditional Release Act to eliminate the requirement of a hearing for certain reviews.
Division 38 of Part 4 amends the Coasting Trade Act to add seismic activities to the list of exceptions to the prohibition against foreign ships and non-duty paid ships engaging in the coasting trade.
Division 39 of Part 4 amends the Status of the Artist Act to dissolve the Canadian Artists and Producers Professional Relations Tribunal and transfer its powers and duties to the Canada Industrial Relations Board.
Division 40 of Part 4 amends the National Round Table on the Environment and the Economy Act to give the Round Table the power to sell or otherwise dispose of its assets and satisfy its debts and liabilities and to give the Minister of the Environment the power to direct the Round Table in respect of the exercise of some of its powers. The Division provides for the repeal of the Act and makes consequential amendments to other acts.
Division 41 of Part 4 amends the Telecommunications Act to change the rules relating to foreign ownership of Canadian carriers eligible to operate as telecommunications common carriers and to permit the recovery of costs associated with the administration and enforcement of the national do not call list.
Division 42 of Part 4 amends the Employment Equity Act to remove the requirements that are specific to the Federal Contractors Program for Employment Equity.
Division 43 of Part 4 amends the Employment Insurance Act to permit a person’s benefits to be determined by reference to their highest earnings in a given number of weeks, to permit regulations to be made respecting what constitutes suitable employment, to remove the requirement that a consent to deduction be in writing, to provide a limitation period within which certain repayments of overpayments need to be deducted and paid and to clarify the provisions respecting the refund of premiums to self-employed persons. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including requiring that the rate be set on a seven-year break-even basis once the Employment Insurance Operating Account returns to balance. The Division makes consequential amendments to the Canada Employment Insurance Financing Board Act.
Division 44 of Part 4 amends the Customs Tariff to make certain imported fuels duty-free and to increase the travellers’ exemption thresholds.
Division 45 of Part 4 amends the Canada Marine Act to require provisions of a port authority’s letters patent relating to limits on the authority’s power to borrow money to be recommended by the Minister of Transport and the Minister of Finance before they are approved by the Governor in Council.
Division 46 of Part 4 amends the First Nations Land Management Act to implement changes made to the Framework Agreement on First Nation Land Management, including changes relating to the description of land that is to be subject to a land code, and to provide for the coming into force of land codes and the development by First Nations of environmental protection regimes.
Division 47 of Part 4 amends the Canada Travelling Exhibitions Indemnification Act to increase the maximum indemnity in respect of individual travelling exhibitions, as well as the maximum indemnity in respect of all travelling exhibitions.
Division 48 of Part 4 amends the Canadian Air Transport Security Authority Act to provide that the chief executive officer of the Authority is appointed by the Governor in Council and that an employee may not replace the chief executive officer for more than 90 days without the Governor in Council’s approval.
Division 49 of Part 4 amends the First Nations Fiscal and Statistical Management Act to repeal provisions related to the First Nations Statistical Institute and amends that Act and other Acts to remove any reference to that Institute. It authorizes the Minister of Indian Affairs and Northern Development to close out the Institute’s affairs.
Division 50 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to provide for the payment or reimbursement of fees for career transition services for veterans or their survivors.
Division 51 of Part 4 amends the Department of Human Resources and Skills Development Act to add powers, duties and functions that are substantially the same as those conferred by the Department of Social Development Act. It repeals the Department of Social Development Act and, in doing so, eliminates the National Council of Welfare.
Division 52 of Part 4 amends the Wage Earner Protection Program Act in order to correct the English version of the definition “eligible wages”.
Division 53 of Part 4 repeals the Kyoto Protocol Implementation Act.
Division 54 of Part 4 amends the Immigration and Refugee Protection Act and the Budget Implementation Act, 2008 to provide for the termination of certain applications for permanent residence that were made before February 27, 2008. This Division also amends the Immigration and Refugee Protection Act to, among other things, authorize the Minister of Citizenship and Immigration to give instructions establishing and governing classes of permanent residents as part of the economic class and to provide that the User Fees Act does not apply in respect of fees set by those instructions. Furthermore, this Division amends the Immigration and Refugee Protection Act to allow for the retrospective application of certain regulations and certain instructions given by the Minister, if those regulations and instructions so provide, and to authorize regulations to be made respecting requirements imposed on employers in relation to authorizations to work in Canada.
Division 55 of Part 4 enacts the Shared Services Canada Act to establish Shared Services Canada to provide certain administrative services specified by the Governor in Council. The Act provides for the Governor in Council to designate a minister to preside over Shared Services Canada.
Division 56 of Part 4 amends the Assisted Human Reproduction Act to respond to the Supreme Court of Canada decision in Reference re Assisted Human Reproduction Act that was rendered in 2010, including by repealing the provisions that were found to be unconstitutional and abolishing the Assisted Human Reproduction Agency of Canada.

Jobs, Growth and Long-term Prosperity Act

[Francine Raynault, NDP, Joliette, QC]

Mr. Speaker, I thank the member for her remarks.

There is one thing I would like to know regarding the environment. Why does a third of Bill C-38 focus on environmental deregulation?

[Wai Young, Conservative, Vancouver South, BC]

Mr. Speaker, the bill does not provide for deregulation. It provides for a modernization of existing regulations. The bill provides a process. People will know the consistent, ongoing process for getting through the system.

The bill also provides more environmental protections as well as more checks and balances.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, my hon. colleague talked about tax cuts and lower taxes. It seems to me that the Conservatives believe that almost every problem can be solved with lower taxes.

Canadian mining companies up north want to hire some local skilled labour and even train the local folks to take the skilled jobs, but they cannot do it because not enough people finish secondary school. No amount of tax cuts will allow young people to get the skills and education they need to get good jobs. There is a problem. This is an example of where we cannot simply lower taxes and fix a problem.

We need to help young people get the skills and education they need so they can get good jobs and good wages. They then can pay taxes and lower the tax burden for everybody else. I do not think the Conservatives ever think about future tax burdens.

[Wai Young, Conservative, Vancouver South, BC]

Mr. Speaker, I disagree with the hon. member on the opposite side. This government has lowered taxes for the average Canadian to the tune of $1,000 per family. That will put more money in their pockets for the additional credits they can do in arts and other areas.

At the same time, we have also increased transfer payments to the provinces. This is a consistent formula that the provinces can depend on and it provides an excellent framework for educational institutions, health sectors, et cetera to plan on.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, the theme of the budget is about creating jobs, wealth and opportunity for all Canadians. Could the member tell us why we need to implement these changes now, so that we can provide a future for our young people?

[Wai Young, Conservative, Vancouver South, BC]

Mr. Speaker, in the fragile global economy, our country needs to look toward Asia-Pacific countries to expand our markets. In doing so, there will be some historic changes in how the world's economy will be restructured.

It is so important for us to invest in skills training, education, entrepreneurship and innovation, so we can then direct these areas of the different sectors in Canada to work toward expanding our trade for a stronger economy in the future.

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

Mr. Speaker, my hon. friend claims the bill would strengthen the environment. I would like her to find a single section in the bill that could be considered strengthening the environment. All I find is gutting.

[Wai Young, Conservative, Vancouver South, BC]

Mr. Speaker, I already noted in my speech that we are going to be increasing environmental protection by checking on pipelines not only 100 times but 150 times. We are also going to double the number of inspections from three to six. These are tangible, precise and specific safety features. We are also demanding the use of double-hulled oil tankers down the coast.

These are specific safety features in the bill that would strengthen environmental protection.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Mr. Speaker, I thank my colleague from Vancouver South for splitting her time with me. It is a pleasure to rise in the House today to speak in favour of our government's economic action plan. Allow me to start by quoting just one of the many positive assessments of our recent budget.

David Frum of the National Post wrote that under this Prime Minister, “...Canada can fairly claim to be the best-governed country among advanced democracies in the world” and that the recent “federal budget locks up Canada’s lead”. He explained that the world's major economies share a common economic problem. How do we nurture a fragile economic recovery while returning to a balanced budget?

In the United Kingdom we see the danger of moving too quickly: the economic recovery falters. In the United States we see the danger of moving too slowly: dangerous debt levels and the loss of the country's AAA credit rating. Canada has the pace just right. We are on track to balance the budget in the medium term. The Canadian economy continues to grow. In fact, Canada's economy has expanded in nine out of the last ten quarters. Since July 2009, the Canadian economy has created nearly 700,000 net new jobs, the strongest job growth record in the G7.

Contrary to the assertions by the members opposite, these employment gains have been in high quality jobs, with 90% in full-time positions, and over three-quarters in high-wage industries and in the private sector. For the first time in more than three decades Canada's unemployment rate is well below that of the United States.

Among major industrialized countries Canada has an enviable economic record. The world has taken notice. The World Economic Forum has ranked Canada's banking system as the soundest in the world for the fourth consecutive year. Forbes magazine ranked Canada number one in the world for business to grow and create jobs. Our economy outperforms our major trading partners. Canada is well ahead of other G7 countries in returning to balanced budgets. The International Monetary Fund projects that by 2016, Canada's total debt-to-GDP ratio will remain at about one-third of the G7 average and more than 20 percentage points below that of Germany, the G7 country with the next lowest ratio.

This afternoon I will speak to three reasons why I believe MPs should support our economic action plan.

First, the economic action plan continues our focus on creating jobs, growth and long-term prosperity for all Canadians.

Second, our action plan will ensure Canada's social programs are sustainable in the long term so that they will be there for future generations when we need them.

Third, we will return Canada to balanced budgets by achieving fair, balanced and moderate savings.

Our action plan proposes a number of measures to create jobs and opportunities for Canadians. I will focus on one measure, our responsible resource development initiative. Here are some important facts. In 2010, natural resource sectors employed over 760,000 workers. In the next 10 years, new investments of more than $500 billion are planned across Canada. The problem is that those who wish to invest in our country have been facing an increasingly complicated and cumbersome set of rules that add costs, delay projects and kill jobs.

In my home province of British Columbia, in the government's 2010 Speech from the Throne, it was noted that some $3 billion in provincially approved projects were “stranded in the mire of federal process and delay.” The B.C. Minister of Finance, Kevin Falcon said, “We have many projects on the table today that are in the billions of dollars that could have important ramifications for jobs and employment and revenues.”

There are numerous examples of economic opportunities missed and jobs lost due to needless bureaucratic duplication and red tape. I will provide one such example. There is a proposal to develop a 396 megawatt offshore wind energy project in Haida Gwaii in British Columbia. The proponent estimates that the project would have a capital investment of $1.6 billion and would create up to 200 construction jobs. The federal decision to approve the process came 16 months after the provincial decision.

Our action plan 2012 proposes to remove these impediments that are unnecessarily delaying responsible resource development and costing Canadians jobs.

The Conservative government would focus on four major areas to streamline the review process for major economic projects. We would make the review process for major projects more predictable and timely, we would reduce duplication and regulatory burden, we would strengthen environmental protection, which is very important to note, and in British Columbia, as across the rest of the country, it is very important that we would enhance our consultation with first nations people.

As has already been established, Canada's financial situation, compared to other advanced democracies in the world, is enviable. Our government is not content to rest on our laurels and ignore the challenges that will face Canada in the coming decades. Our action plan is proposing necessary changes to our retirement system to ensure that it will be there for all Canadians.

Here is the challenge that we will be facing in the not too distant future. In the 1970s, there were seven workers for every one person over the age of 65 collecting old age security. Today, there are four workers for every senior collecting OAS, and in 20 years the number will be only two. In addition, in 1970 life expectancy was age 69 for men and 76 for women. Today it is 79 for men and 83 for women. At the same time, Canada's birth rate is falling. Given these demographic changes and realities, the cost of the old age security system will grow from $38 billion in 2011 to $108 billion in 2030. This program is funded out of general revenue every year and this increase is simply unsustainable.

Our action plan 2012 would put the OAS program on a sustainable path by proposing legislation to raise the age of eligibility for OAS and GIS benefits gradually. The phase-in period would begin in April 2023 and it would not be fully implemented until January 2029. Let me be very clear. These proposals would not impact those currently collecting benefits or those nearing retirement. An 11-year notification period followed by a six-year phase-in period would ensure that individuals have significant advance notification to plan their retirement and make necessary adjustments.

At least 34 other countries are increasing the age of eligibility for their programs. They all realize that they need to ensure the sustainability of those programs for future generations. Our actions would ensure that OAS remains strong and is there for future generations when they need it and is available for all seniors today who are currently receiving the benefits.

Finally, our action plan 2012 would keep Canada on track to a balanced budget over the medium term. We would not raise taxes. Doing so kills jobs. We would not cut transfers to individuals, nor would we cut transfers to other levels of government for health care, education and social services, as was done by previous governments. Our government would return to balanced budgets while continuing sustainable increases in transfers for health, education and social programs. Federal transfers to my home province of British Columbia would total over $5.6 billion in 2012-13. This represents a 23% increase, over $1 billion more, than the province received from the former Liberal government.

Canada is a very blessed country. Due to the leadership of our Prime Minister and the Minister of Finance, our country has avoided the worst of the global economic storm and is on a sound financial footing. The measures I have discussed today—responsible resource development, long-term sustainability of our social programs and modest cost savings to return to a balanced budget—are part of our action plan that will create jobs, economic growth and prosperity for all Canadians.

I would ask all hon. members to join with our government and support economic action plan 2012.

[Jean-François Larose, NDP, Repentigny, QC]

Mr. Speaker, regarding the environment, several times today in the House, I have heard that certain organizations are to be targeted because they are a thorn in the side of the multinationals and the oil companies.

I have trouble with this concept. I would go so far as to subscribe to a conspiracy theory because I find this strange. I think that the members across the way think that way. However, as far as I know, the organizations are made up of Canadian citizens, volunteers, people involved in our communities who see the impact of the decisions made by multinationals. The multinationals and oil companies, on the other hand, are made up of people from abroad, and the majority of these companies do not necessarily care about our future.

I am trying to find a balance. I get the impression that the government tends to forget that the social contract for the power that it holds comes from Canadians. Why attack the Canadians who are identifying these problems? They are the ones we should be listening to, not the multinationals.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Mr. Speaker, what we are doing is standing up for Canadian citizens and for Canadian jobs, 760,000 jobs in the natural resources sector.

We know the NDP members oppose any development of the oil sands and have called for a moratorium on the development. They oppose any hydrocarbon, fossil fuel development at all. So it is no surprise that they are also opposing the Canadian jobs that result from these projects.

We have seen that they oppose Keystone XL which created over 140,000 jobs. They opposed the northern gateway pipeline, right off the top. They are also opposing the private sector unions which are clearly onside with natural resources development, and have said they support our regulatory reform because they know that these projects give good jobs and good benefits to Canadians. That is why we will continue with our responsible resource development plan.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Mr. Speaker, I am not quite sure if I got this right from the member. He mentioned British Columbia getting more in transfers from this government than the preceding government. I think that is based on a formula which is called equalization and has been in existence for quite some time.

As a matter of fact, Newfoundland and Labrador, where I come from, is actually getting less money. No, let me correct that, we are actually getting no money from the federal government. That is because of the resources that are off Newfoundland and Labrador's coasts and because of what we have done. I would go back to the fight, what happened between Danny Williams and the Prime Minister.

I want to ask the member about one thing. He keeps talking about skills and development. Small towns across this country just lost the community access program which delivers high-speed Internet for the smallest communities. It is an issue of poverty. People making below the median income of $30,000 cannot afford these large bills for high-speed Internet. The local library decided to provide that service for all citizens, and now it is gone. It is a little disingenuous for a member from rural Canada to be talking about the fact that they are losing this essential service.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Mr. Speaker, the hon. member's question was all over the map, from British Columbia to Newfoundland. I will try to focus on equalization and transfers to the provinces.

I do not know the hon. member's electoral history or if he was here during the time when the Liberal government cut $25 billion in transfers in health and social transfers to the provinces. Certainly, we did fix the equalization program to ensure that it was fair for all Canadians.

I also have no problem discussing the small-town impacts of our bill. I toured a local production facility, Britco in Agassiz, British Columbia. It produces housing units for natural resource development projects. The company sees a direct link between our plan to have regulatory reform and its business model. It has increased the number of its good, high-paying, high-skilled jobs, because of our program to ensure that we have responsible resource development.

I will continue to support the budget, as people in small-town Canada do.

[Irwin Cotler, Liberal, Mount Royal, QC]

Mr. Speaker, I am pleased to rise to address Bill C-38 on behalf of my constituents in Mount Royal.

While my constituents might understandably assume that the bill relates to the budget, in fact this 400-plus-page omnibus bill actually has very little to do with the budget. Many of the proposals therein have particularly deleterious consequences for the environment. Accordingly, I will be splitting my time with our environment critic, the hon. member for Etobicoke North.

A related problem is that while this budget implementation bill is supposed to flow from the budget speech, which itself is not only a financial statement but a statement of values and a reflection of priorities, this budget, in its reflection of priorities, does not note or even utter the words “social justice”. It does not note or even speak of “fairness” or “equality”. It does not note or even reference the Charter whose 30th anniversary we celebrate this year, nor does it reference or note anywhere the word “humanitarian”.

While the budget speech did outline certain measures that we see legislated in Bill C-38, this budget implementation omnibus bill goes above and beyond anything we have seen and beyond any of the enabling authority of the budget itself.

In its 400-plus pages, there are amendments to more than 60 statutes. It covers everything from fisheries to nuclear safety, from territorial borrowing limits to air transport. It is an enormous hodgepodge, bundling together legislation not unlike Bill C-10 that does not allow for the necessary differentiated parliamentary discussion and debate, let alone the necessary oversight of the legislation. It imbues the executive with arbitrary authority to the exclusion of Parliament, thereby serving as a standing abuse to the canons of good governance, transparency and accountability. Indeed, this alone should be cause for its defeat.

As Andrew Coyne has put it, and I quote, “The scale and scope is on a level not previously seen, or tolerated”. He notes that this bill makes “a mockery of the confidence convention” and that there is no “common thread” or “overarching principle” between the legislative items therein, let alone its standing contempt for Parliament in matters of process and procedure.

Moreover, and again on the crucial issues of parliamentary process and procedure, which are principled concerns, while the bundling together of disparate pieces of omnibus legislation as a confidence bill is problematic enough on its own, this bill is slated to go to the finance committee in its entirety. Accordingly, the review of the environmental regulations therein, which overhaul, weaken and undermine the Canadian Environmental Assessment Act and environmental protection as a whole, will thus not be reviewed by the Standing Committee on Environment and Sustainable Development, where it belongs. The provisions that abolish the First Nations Statistical Institute and make changes to the First Nations Land Management Act will not be the subject of examination and study by the Standing Committee on Aboriginal Affairs and Northern Development, where it belongs. I can go on with numerous examples in this regard.

If circumventing proper and thorough parliamentary review in committee was not enough, the government, as we saw earlier, has invoked time allocation to limit the amount of time and discussion on this bill.

I am not suggesting that invoking time allocation, as the government has done again and again, or the use of an omnibus vehicle, as has occurred with Bill C-10, are against the legislative rules. What I am suggesting, as have many commentators, is that its use here and now on this particular omnibus bill is unnecessary, prejudicial, suprisingly undemocratic, in effect, unparliamentary and otherwise unsubstantiated and unwarranted.

Surely if Parliament had to debate something like going to war, it would be easy to see why we might time-allocate to ensure we get to the most pressing debate first, or if there were court decisions that affected many statutes, we might easily welcome an omnibus bill that would make the same change to many statues. What is so disconcerting with Bill C-38 is that the government need not be in a rush. There is no coherent or compelling theme to the omnibus proposals contained in the bill.

The opposition is not opposed to some of what is in Bill C-38. For example, the proposed changes to the custom and tariff rules sound reasonable. What we are opposed to is the take it or leave it, one size fits all omnibus approach to legislating that does not allow the necessary differentiated and deliberative oversight or review, or review by the particular and appropriate parliamentary committees. The government and the opposition can co-operate if the government would simply respect the opposition and be responsive in debate.

Again, I will remind my colleague that the government assumes that its legislation in every instance is perfect and, in so doing, believes there are no amendments that need even be tendered let alone adopted. This occurred in the case of Bill C-10 when, in response to amendments I introduced at the time, the government summarily rejected them because they came from the opposition, it seemed. It reintroduced the amendments on its own, a matter that could have been avoided, as the Speaker then noted in terms of the procedural complications that then ensued. Moreover, while I will be voting against this bill in large part because of the way it was introduced and how it is being pushed through Parliament, in terms of matters of process and its abuse, I will use my remaining time to outline some of my objections to the substance of the bill. Regrettably, time is limited and I therefore cannot address every flaw of this legislation.

First, Bill C-38 marginalizes low-income seniors by increasing the qualifying age for OAS from 65 to 67. While the government claims this change is necessary, and it did so just now in debate, for the sustainability of OAS, this contradicts Canada's chief actuarial officer and the PBO, who agree that the change is unsound and unnecessary as the current situation and system is sufficiently sustainable.

Second, the government proposes to close the files of federal skilled workers who applied prior to 2008, without any chance on their part to review or appeal this decision. It is not surprising that some have announced plans to take the government to court over this as a matter of fundamental fairness and due process. Indeed, all who apply to Canada should have their applications judged on their merits, not an arbitrary deadline set by the minister and applied in a retroactive fashion.

Third, cuts are being made to various food inspection agencies. These agencies keep Canadians safe and secure while ensuring the food chain is not contaminated. The government has yet to explain how these cuts would not prejudice the health and safety of Canadians or how food safety would be maintained in the absence of complete and adequate funding.

Fourth, the true nature of public service cuts in this bill still remains unknown. The Canadian Centre for Policy Alternatives estimates that in addition to the 19,200 positions being eliminated in budget 2012, there will be a further 6,300 jobs cut as a result of the government's previous strategic reviews that have yet to be implemented, and a further 9,000 cuts as a result of the government's budget operating freeze. That would create a total of 34,500 federal public service job cuts associated with this budget cycle alone. As well, the Parliamentary Budget Officer agrees that the government's figure of 19,200 public service jobs being cut does not represent the full number. He said, “...additional job losses will be required. ...we're actually talking about cuts on top of cuts”.

I raise this in particular to note that we are being asked to rubber-stamp the government's agenda without the necessary information, in a manner that precludes the necessary oversight and review and when it is clear that there are inconsistencies with what the government is saying and what independent experts assert. Parliamentarians must be afforded the facts and figures upon which they are being forced to pronounce, as was the case in Bill C-10. We did not receive it then and we are not receiving it now. This, in effect, amounts to a kind of standing contempt of Parliament.

Fifth, and my colleague from Etobicoke North will speak further to this in a moment, this bill rewrites Canada's laws on environmental assessment and repeals the Kyoto Protocol Implementation Act, weakening our environmental regulations but with consequences far beyond this.

In an email just this morning, a constituent wrote this. Considering that when environmental damage is caused, it has a domino effect on our food and water and thus affects Canadians' health and livelihood, these issues are actually also human rights issues. We have the right to safe clean water, safe accessible food and the myriad of other essential benefits we get from a properly functioning ecosystem.

Sixth, we have the elimination of a series of libraries and archives throughout different departments as part of the latest budget cuts, including the Canadian Council of Archives, which may close as soon as this Friday. This would affect historians, researchers, the media, Parliament and the public who deserve to have information preserved in addition to access to this information.

While I do not have time to elaborate on what this bill includes, I will close with a note about what is not in this bill. This bill does not address that which must be addressed. First and foremost is job creation, not just loss of jobs. Nor does it address the issues that matter most to my constituents in terms of social justice, access to justice and the promotion and protection of fundamental rights and freedoms.

Accordingly, and with this I close, whether it is marginalizing low-income seniors by increasing the qualifying age for OAS or cutting funds to regional development programs that create jobs or not announcing any new funding for affordable housing when the existing program funds are set to expire soon, this budget is simply wrong-headed, misguided, prejudicial and disconnected from the needs of Canadians and from my constituents.

In short, Bill C-38 marks a sad chapter in Canadian parliamentary history.

[Francine Raynault, NDP, Joliette, QC]

Mr. Speaker, I thank my colleague for his remarks. There is a lot of talk about the environment, which is a hot button issue.

We know that the Liberals signed and ratified the Kyoto protocol. But why did the Liberal Party not do anything to reduce greenhouse gas emissions?