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

[Vic Toews, Conservative, Provencher, MB]

moved 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.

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

Mr. Speaker, it is truly a great honour to start debate on today's legislation, the jobs and growth act, 2012, to implement key provisions of economic action plan 2012.

I am proud to be part of a Conservative government that is absolutely focused on the economy, focused on jobs and squarely focused on securing a better future for our children and our grandchildren. That is exactly what Canadians elected our government to do, as it is exactly what matters to them, especially when we are faced with a global economy that has been exceedingly volatile in recent months.

Economic action plan 2012 and the jobs and growth act, 2012, which implements it, is comprehensive and ambitious because it responds to the magnitude of the challenges that we face. In a fast-changing global economy that remains uncertain and where we face increasing competition from emerging economies such as China and India, delay is not an option in the face of needed economic reform. When promoting Canada around the world, our strong, stable government is consistently praised for its ability to enact needed economic reform and stay focused on the economy.

To completely comprehend the vital importance of our government's economic strength, look no further than the U.S. or Europe, places where narrow-minded political gridlock and instability have too often threatened or delayed vital economic and fiscal reforms. Now is not the time for political gridlock and instability. We must remain focused on the economy.

We are very proud of the steps we are taking in economic action plan 2012, and as we have said, we have absolutely nothing to hide. That is why we want an open, public and timely study.

As always, we have provided a technical briefing directly to officials for all MPs and senators, and I would like to applaud the members for Red Deer, Kamloops—Thompson—Cariboo and Brossard—La Prairie for staying to the end of the very thorough briefing, which lasted until 1:30 in the morning.

As always, we will provide detailed background notes to all MPs and senators, which are now also available online for all Canadians. As always, there will be detailed committee studies in the House and Senate. Additionally, I am proposing that along with the finance committee in the House, the government side will recommend even further study.

As with previous budget legislation under our government and as we did last spring with the special subcommittee on the first budget implementation act, we will be asking the following 10 committees to look at portions of the bill: health; transport, infrastructure and communities; aboriginal affairs and northern development; agriculture and agri-food; environment and sustainable development; fisheries and oceans; justice and human rights; public safety and national security; human resources, skills and social development and the status of persons with disabilities; and citizenship and immigration.

I will be moving a motion at finance committee to invite those other committees to provide feedback through subject matter studies should the House endorse the legislation at second reading. I really hope the opposition members will give their support at second reading if they genuinely want these committees to study the legislation, instead of just playing political games.

Returning to the debate on the jobs and growth act, Canadians watching at home will witness some very clear differences between our Conservative government and the opposition, and especially the NDP, when it comes to the priorities of Canadians and the direction of the Canadian economy.

From the opposition members, we will hear a lot of talk about process and procedure, or what some would call “inside baseball”, that appeals to a small number of Canadians, mostly located in Ottawa. They talk about process to dictate the exact length of the debate, procedure for the formatted legislation, process for a timeline for a committee study, and on and on.

This talk will be short on facts, big on exaggeration and heavy on partisan spin. In other words, it is really meaningless to the everyday lives of the vast majority of Canadians, especially those Canadians worried about the economy, worried about how global economic uncertainty will impact Canada and how their government is planning to respond.

Instead of debating the issues around the economy, the opposition members would rather debate about debate. While it is disappointing, it is just as well. On the rare occasion when the opposition, especially the NDP, finally gets around to talking about the economy, it is either to badmouth Canadian business or to complain that Canadians are not paying enough taxes.

Canadians should recognize that our Conservative government and the NDP, Liberals, Bloc and the Green Party have fundamentally different views about taxes and the economy. The NDP and its allies believe in bigger governments and higher taxes. That is why those members oppose the over 140 tax cuts we have introduced since coming to power. They opposed reducing the GST. They opposed reducing personal income taxes. They opposed lowering small business taxes. They opposed creating the tax-free savings account. The list goes on and on.

This speaks to a basic and fundamental difference between us. The NDP sees no issue with taking more of the hard-earned money of Canadian families to fund government initiatives, while our Conservative government believes that after a long hard week of work for that construction worker or dental hygienist or police officer, their paycheque is actually their paycheque and it belongs in their pockets, not in the mail to Ottawa to fund the latest NDP big government scheme.

We on this side of the House believe that Canadians pay too much tax. The latest high-tax NDP scheme, its $21 billion carbon tax, is the latest in a string of examples that would dramatically reduce the take-home pay of Canadian families.

Canadians are concerned about the NDP carbon tax proposal. In the words of respected Saskatoon StarPhoenix columnist Les MacPherson from this past March:

[The NDP leader] favours a carbon tax to put a price on so-called greenhouse gas emissions. It would amount to something like a second GST applied on fuel for transportation and heating. In terms of the costs imposed on consumers, it is not far different from [the Liberal] Green Shift plan, widely mocked as the Green Shaft and resoundingly rejected by voters in the 2008 election.

He goes on:

If Canadians four years later now are yearning for higher taxes on gasoline and heating bills, [the NDP leader] could have a winner here.

Or listen to a recent Calgary Herald editorial, which said:

A carbon tax is, quite simply, placing a price on carbon.... Call it what you will—a rose, a daisy, a levy, or a penalty—most reasonable people would call it a tax.... In other words, it’s a tax, and by any other name, the cost will be passed on to consumers.

I could go on and on with these concerns but I will not, because Canadians trust our Conservative government not to tolerate a carbon tax and they know we will vigorously oppose anyone who would try to force a tax scheme such as that onto Canadians.

They also know that our Conservative government will implement low-tax pro-growth initiatives such as economic action plan 2012 to help the economy grow in their communities and help attract jobs, just like the measures contained in today's legislation.

The jobs and growth act, 2012, implements key initiatives of the economic action plan 2012 to help the Canadian economy grow, encourage job creation and ensure Canada's long-term prosperity. This will keep the Canadian economy on the right track and guarantee its strong position.

According to the World Economic Forum, Canada has the soundest banking sector in the world. Forbes magazine says that Canada is the best place in the world in which to do business. The OECD and the IMF predict that our economy will be among the leaders in the industrialized world over the next few years. Our debt to GDP ratio remains the lowest in the G7 by far.

In Canada, approximately 820,000 jobs have been created since July 2009, which is the best job growth record in the entire G7. Furthermore, the three major credit rating agencies, Moody's, Fitch and Standard and Poor's, have reaffirmed our top credit rating.

However, we cannot rest on our laurels. There are many global challenges and uncertainties still facing our economy, especially from Europe. The international recovery is not complete and challenges remain. The global economy remains fragile, and any potential setback would have an impact on Canada. That is why we continue to focus on supporting the economy with our economic action plan 2012, which gives priority to growth.

The jobs and growth act, 2012 strengthens the economy and creates jobs by extending for one more year the hiring credit for small businesses that create jobs.

Over 530,000 employers benefited from this measure last year. The jobs and growth act, 2012 promotes interprovincial trade, improves the legislative framework governing Canada’s financial institutions, facilitates cross-border travel, removes red tape, reduces fees for Canada’s grain farmers and supports Canada’s commercial aviation sector.

The jobs and growth act, 2012 supports families and communities by improving registered disability savings plans, helping Canadians save for retirement by implementing the tax framework for pooled registered pension plans, improving the administration of the Canada pension plan and strengthening the Canadian Environmental Assessment Act.

The jobs and growth act, 2012 promotes clean energy and enhances neutrality of the tax system by expanding tax relief for investment in clean energy generation equipment and phasing out tax preferences for the mining and oil and gas sectors.

The jobs and growth act, 2012 respects taxpayers’ dollars by taking landmark action to ensure the pension plans for federal public sector employees are sustainable, financially responsible and broadly consistent with the pension products offered in the private sector, and by eliminating tax loopholes and duplication.

Without a doubt, the initiatives I highlighted here, as well as others included in the jobs and growth act, 2012, are positive steps to help Canadians and grow our economy.

In my time remaining, I would like to highlight one of these initiatives and remind Canadians exactly what the NDP and the opposition will be voting against.

This particular measure is aimed at supporting the true engine of job creation in Canada, which is our small businesses. From the local corner store, to the dry cleaner or furniture repair shop, we all know and rely upon local small business for their friendly service.

Our Conservative government firmly believes in the importance of small business. That is why, since forming government in 2006, we have taken important steps to support them: steps that the NDP, with its high-tax, big-government agenda, voted against.

For instance, in recent years we reduced the small business tax to 11%, and increased, for the first time since 1988, the lifetime capital gains exemption to $750,000, to allow capital gains and qualified small business shares to be realized tax free.

However, like all Canadian businesses, small businesses across the country have felt, and continue to feel, the trickle-down effect of the global economic turbulence.

In recognition of these challenges, economic action plan 2012 announced a temporary hiring credit for small business of up to $1,000 per employer. This credit proved wildly successful, providing important relief to small businesses by helping defray the costs of hiring new workers and allowing them to thrive while providing employment in their communities.

Amid continuing global economic uncertainty, and with the urging of small businesses across Canada, our Conservative government moved to extend the temporary hiring credit for small business in economic action plan 2012. Specifically, a credit of up to $1,000 against a small employer's increase in its 2012 EI premiums over those paid in 2011 would be provided. It is estimated that the hiring credit for small business would be available to approximately 536,000 employers whose total EI premiums were at or below $10,000 in 2011, reducing small business 2012 payroll costs by about $205 million.

As I mentioned earlier, this credit has been extremely popular with small businesses across Canada.

As the NDP is looking to vote against this credit, let me share a small sample of that feedback, to help my opposition colleagues fully understand just exactly what they are opposing.

The Yellowknife Chamber of Commerce welcomed the credit's extension, noting:

Yellowknife has a lot of small businesses and one of the most expensive features for any small business owner is labour, and if you could cut down on that cost then you've given them a chance that they can grow their business. We're well in favour of that.

Or listen to the Canadian Convenience Stores Association, which heralded the credit this way. “It helps to provide our owners with resources to keep their businesses more often and for longer hours. Convenience stores provide a unique opportunity for many new Canadians and entrepreneurs to realize their dreams of owning a business, and this credit increases opportunities for them to start employment in the convenience store industry.”

Finally, the Canadian Federation of Independent Business praised the credit as “making it easier for small business to continue to support Canada's economic recovery by creating jobs”.

While I know the NDP does not support low taxes, I must confess my disappointment at the NDP's reaction to the inclusion of this very item in the jobs and growth act, 2012. Just last week, shortly after the introduction of the bill and its provision to extend the job-creating hiring credit for small business, the NDP finance critic blasted this tax relief for small business and our government's record of supporting small business. The NDP finance critic said: “It is yet again an across-the-board cut for small business”.

As I mentioned, the hiring credit will benefit approximately 536,000 small businesses, which is why I am frankly shocked that the NDP would bemoan it, along with tax relief for small business and the Canadians they employ.

Much like the NDP plan to impose a job-killing $21 billion carbon tax scheme on small businesses, this is part and parcel of the NDP's high-tax agenda that would impose higher, crippling taxes on Canadian business and our economy.

That is the fundamental difference between our Conservative government and the NDP and their opposition allies. They have a particular view of how to manage the economy. They want to impose high taxes. They want to close our borders to trade. They want to inflate government bureaucracies. That is fundamentally and absolutely contrary to the principles of this Conservative government. I am proud to be part of a government that feels those are not values that Canadians want to see.

That is why the NDP opposes today's legislation. That is why the NDP opposes economic action plan 2012, despite whatever reasons they may use as a smokescreen to suggest otherwise.

Canadians can rest assured that our Conservative government will move ahead with today's legislation, economic action plan 2012 and our low-tax, pro-growth, job-creating agenda.

I would implore opposition members to listen to what is in the second budget implementation act, because it does exactly what I have just mentioned. It does create jobs. It does help Canadians to prosper. It does make us a better country, and it really does affect every single thing that we do to help Canadians do better.

If the NDP and the Liberal Party, along with the independents and the Green Party member, continue to say they intend to vote against this, I would ask Canadians to start asking their members of Parliament from the opposition benches why in fact they are doing so. I do not understand it. I cannot believe it. I am sure Canadians are just as shocked as I am. I would invite Canadians to write to their members of Parliament to voice their opinions.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, I congratulate the parliamentary secretary for her intensely partisan and very fictional speech. She talked about the NDP. She did not talk about the government's record.

Why? It is because we know the government's record. There have been half a million manufacturing jobs that have evaporated over the last few years on the Conservative watch; 400,000 more people are unemployed than when the Conservatives came to power. There's a 2% real reduction in wages that we have seen across Canada, from coast to coast to coast. Families are struggling more and more to make ends meet.

The International Monetary Fund this year ranked Canada 152nd in economic growth. If a team finishes 25th or 30th in a league, the coach is fired. When a team finishes 152nd, the whole team is fired, and that is just what the NDP and Canadians are going to do in 2015.

We have a budget speech for a budget that predicts a loss of 43,000 jobs. That is why the Conservatives cannot speak to their record, and that is why they cannot speak to the budget.

My simple question is, given the lamentable record of the government, given that 43,000 jobs are predicted to be lost as a result of this budget, why do the Conservatives not get back to work and redo what they have done wrong?

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, I thank my hon. colleague for the comments. I want to say first and foremost that this government is seen around the world as having one of the best reputations following—and I hope they got the memo—the global recession. That is what the NDP seems to forget. The opposition members seem to forget that there was a global recession.

As I said in my speech, which obviously my colleague was not around to listen to, and I will repeat, the World Economic Forum says that our banks are the soundest in the world. Forbes magazine ranks Canada as the best country in the world to do business. OECD and the IMF predict that our economy will be among the leaders of the industrialized world over the next two years.

The words are important: “industrialized world”. We compare to other countries who are in the industrialized world. That is why we are number one.

Let us continue. Our net debt-to-GDP ratio remains the lowest in the G7, by far. Let us not listen to the misleading comments made across the way. When it comes to job creation, we have created over 820,000 net new jobs. We have the best job growth record in the entire G7. Nothing that the NDP members can say will change that. They can be jealous all they want. We are going to continue on our job creation plans.

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

Mr. Speaker, I want to thank the hon. parliamentary secretary for her remarks. However, I think she has missed some of the most egregious parts of the bill.

I want to ask her why the government felt it was necessary to gut the 1882 Navigable Waters Protection Act, which was never mentioned in the March 2012 budget, by removing protection for navigation rights that Canadians have had for over 130 years? Why was it necessary to remove those? They have not been blocking jobs and growth in the economy. They have been ensuring that the millions of Canadian lakes and the thousands and thousands of Canadian rivers, now reduced to 62 rivers and 97 lakes, received some protection from our navigable waters constitutional jurisdiction of the federal government.

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, as my colleague pointed out, this is an act from 1882. This is an act that is supposed to concentrate on navigation and commercial shipping. Under our newest bill, we are going to change the name from Navigable Waters Protection Act to the Navigation Protection Act. Why are we doing this? It is because it was designed to protect navigation. It was designed specifically to create jobs and to help make sure that when we are regulating things, for instance, the construction of bridges, making sure shoreline construction moves ahead, that we have some measures in place to allow that to happen in a timely manner.

We have a number of other bills that cover off environmental concerns. We have a number of other bills that cover off other scenarios that have been mentioned by the opposition. However, members need to focus on what this bill is about. The intent of the bill is about navigation and commercial shipping, point final. That is what it is about. That is why we are going to focus on it.

The common law covers every single other lake and river that the hon. member is concerned about. She can rest assured that we have taken care of business. Common law is going to apply, as well as the Navigation Protection Act, so that everything is covered.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I want to thank the Parliamentary Secretary to the Minister of Finance for her fine speech introducing the implementation bill. This is the second implementation bill, and viewers at home should know that the budget is presented as a policy document and then there are two implementation bills, one in the spring and one in the fall.

Today we are starting the discussion on implementing the second half of the budget that has been passed by the House of Commons. I want to make the point that it has been passed.

One of the items in the budget that we passed in the spring, and was not in the first implementation bill but is in the second, was to deal with the small business tax credit to help small businesses employ more people to create jobs.

Why is it important for Canada to continue to support small businesses in their growth and employment?

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, my colleague's question is very important because, as I stated in my speech, small business is the motor that keeps us growing here in Canada.

We introduced the hiring tax credit in budget 2011 because we wanted to help small businesses to hire people and make their businesses grow. Over 534,000 businesses took advantage of the hiring tax credit because they wanted to grow their business, help the economy grow and ensure that Canadians enjoyed the values and freedoms that we presently enjoy.

Putting an extension on the budget 2011 proposal is important because businesses depend on it. They have said that it is popular, that they have used it to their advantage and that they would like to do more to help Canada prosper.

We believe in small business so much that we lowered the small business tax rate to 11%. Unfortunately, the opposition voted against that. However, we on this side will continue to support small business and get all of that wonderful feedback that I mentioned in my speech earlier from those small businesses.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, last Thursday, the minister suggested that this implementation bill contained no surprises. Was I ever surprised when I discovered what was in it that was not in the budget.

The Labour Code was never mentioned in the budget and yet the minister has decided to introduce in this budget implementation bill major changes to the way vacation pay is calculated in the Labour Code which would reduce the amount payable to some individuals. It is a tax.

The Navigable Waters Protection Act was never mentioned in the budget bill. The Minister of Foreign Affairs suggested that we could find it on page 282 of the budget bill. However, that is not true. It was not there.

In addition, there are tax increases in the budget bill. The government keeps saying that it is a “no-tax government” but there are tax increases. The biggest and most important one is the fact that the scientific research and experimental development tax credit would be reduced. Therefore, 25,000 businesses that rely on that tax credit would have their pockets picked to the tune of $40 million, which is absolutely not--

[The Acting Speaker, Conservative, Barry Devolin]

Order, please. The hon. parliamentary secretary.

[Shelly Glover, Conservative, Saint Boniface, MB]

Mr. Speaker, I have answered these questions from my colleagues on the other side many times. Questions such as: What page is it on in the budget?

Quite frankly, I am shocked. By now, we have given them every page through a briefing that lasted six and a half hours and they are still asking this. I will refresh their memories as to where they are.

The Navigable Waters Protection Act is on page 282. This is a DRAP measure. It is clearly indicated on page 282. I would suggest that the member actually look at the annex part of the page because that is exactly where it is.

On the Canada Labour Code, it is also a deficit reduction action plan measure that would help this government reduce costs by $5.2 billion. That is on page 270.

Once again, I would encourage the members across the way to do their homework.

On the SR&ED tax credit, I will be very clear. We have spoken with industry about clarifications to this tax credit. It is very complex and we are doing exactly what we intended to do, which is to clarify some of those measures to help these businesses ensure that they can apply successfully.

[The Acting Speaker, Conservative, Barry Devolin]

At this time it is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Kingston and the Islands, Science and Technology; the hon. member for Manicouagan, Aboriginal Affairs; the hon. member for York South—Weston, Telecommunications Industry.

Resuming debate. The hon. Leader of the Opposition.

[Thomas Mulcair, NDP, Leader of the Opposition]

Mr. Speaker, in life, as in politics, everything revolves around whether we have credibility. I will read page 282 of the budget, because that is what my colleague was referring to. So we, along with all the Canadians who are watching, will know whether page 282 of the budget mentions the Navigable Waters Protection Act.

In life, as in politics, everything revolves around whether we have credibility. The member just told us that on page 282 of the budget we would find a reference to the Navigable Waters Protection Act. I will now read page 282 of the budget. Under “Transport Portfolio”, it states:

Organizations in the Transport portfolio identified a combination of productivity-enhancing and transformative measures that change the way programs and services are delivered and support the Government's agenda of refocusing government and reducing red tape.

I ask members to retain that term because, in the Conservatives' mouths, reducing red tape is synonymous with reducing public protection. Walkerton, XL Foods and listeriosis is reducing public protection. That is a theme we will be talking a lot about this afternoon. I will continue.

Non-core activities will be reduced while maintaining capacity related to core mandates in order to protect the safety of Canadians and support economic growth.

For example, VIA Rail Canada Inc. will pursue productivity improvements such as augmenting the performance of the heating, ventilation and air conditioning systems....

Navigable Waters Protection Act? Not so far.

...on-board trains to reduce maintenance costs, reduce energy consumption, and increase passenger comfort. It will also implement automation projects such as electronic ticketing and invoicing systems.

Navigable waters? I have not heard it.

“Planned Savings--Transport Portfolio. Canadian Air Transport Security Authority--”

This is kind of interesting because this is where it starts cutting, like it cut the Canadian Food Inspection Agency, where it cut things that directly protect Canadians' health and safety. Here we have cuts ongoing of $59.7 million. We have Marine Atlantic, the Jacques Cartier and Champlain Bridges Inc. cut. The Champlain Bridge is about to fall down but it is going to cut. It goes on to mention Transport Canada and VIA Rail Canada and there is a note at the bottom of the page that states:

The Government is committed to balance air travel security expenses with Air Travellers Security Charge revenues over time. Totals may not add due to rounding.

Members may have noticed that there was no reference whatsoever in there to the Navigable Waters Protection Act. What is up?

What is up is this. On the website of the Department of Transport, under the heading Navigable Waters Protection Act, there is a summary of what that centennial legislation does. It is groundbreaking. It is a model for the world of how to protect the environment. Canada has literally millions of lakes and tens of thousands of rivers. It is constitutionally the purview, the responsibility and the obligation of the federal government, specifically in the Constitution Act, 1867, to care for navigable and floatable waters.

I have the wording straight from the website. By the way, the website was changed last night after my colleague, the member Halifax, raised it yesterday afternoon. This is pure Orwellian. The Conservatives make things disappear when it does not agree with the version they have decided to concoct and invent. It states:

The NWPA minimizes the interference of navigation on navigable waters throughout Canada. It ensures a balance between the public right to navigate and the need to build works such as bridges, dams or docks in navigable waters.

With this goal in mind, the NWPA:

prohibits the throwing or depositing of any material into navigable waters.

That stops people from polluting waters in Canada. It sounds like environmental protection to me, but obviously the member has never quite gotten around to reading the act. It is there. It is one of the statutes of Canada. It is alphanumeric. It works with the alphabet, N-22.

What is “Substantial Interference”? The application reads:

This approval process is usually longer, requiring you to complete additional steps – including advertising the proposed project to the public and undertaking an environmental assessment in accordance with the requirements under the Canadian Environmental Assessment Act (CEAA).

That is another act that the Conservatives are destroying with their budget. There is no mention, but in the budget implementation act, as they did in the spring with Bill C-38, they are destroying it again. They are removing environmental assessments in Canada. We will go from thousands of environmental assessments every year in Canada to a couple of dozen. That is because it is a preordained result. They started making the mistake in energy projects. They were no longer referring to the environmental assessment process. They were talking about the approval process. It was a slip of the tongue but it was really revealing.

The Supreme Court of Canada in the Oldman River dam case, a decision by Mr. Justice Lamer on behalf of the court, made it abundantly clear that there was no possibility of building a project like that unless the environment was respected. That was a landmark case in Canada and it was based on the Navigable Waters Protection Act. It is so incredibly mind-numbing to hear the Minister of Transport say that the Navigable Waters Protection Act has never had anything to do with the environment, it has to do with navigation. It is unbelievable. It has protected water courses throughout our history, it is a model for the world, it is being destroyed and it was never in the budget.

I listened to some of the economic theories of the government. This week, in The Hill Times, a reputable publication if there is one, the expert economist David Crane published an interesting paper entitled, “Resources are important but they're not enough”. It is worth going through the words of Mr. Crane. He stated:

The strongest economy is one that is well-diversified, both in its sources of economic growth and in its markets. Ignoring the need for a vibrant advanced manufacturing industry and high-value knowledge-based services, as well as a resource sector that upgrades it[s] output in Canada, is a recipe for disaster.

He goes on to look, chapter and verse, through all of the things that the member who just spoke bragged about as being the Conservatives' economic theory and dismantles it. He shows that, what we have been saying for years now, Canada is losing the balanced economy that we had painstakingly built up since the Second World War, we are losing an economy that had a strong and vibrant resource sector, a primary sector that includes agriculture and the fishery, but it also had a diverse and strong manufacturing sector and, of course, a service sector.

Since the Conservatives came to power, we have lost hundreds of thousands of good paying manufacturing jobs, jobs that came with enough of a salary for a family to live on and, more often than not, came with a pension. Those jobs are being replaced by part-time precarious work in the service sector and, more important, no pension. In addition to the environmental debt that we are leaving in the backpacks of future generations, the one I just described, allowing companies to use our air, soil and water as an unlimited free dumping ground, we are also leaving a social debt because when those people retire without enough to live on, who will pick up the tab? It will be the next generation. If we allow the Conservatives to continue, we will become the first generation in Canadian history to leave less to the next generation than what we ourselves received. We will not let that happen.

The last time the Conservatives took to shoving one of their omnibus bills down the throats of Canadians, it was Bill C-38 last spring.

This bill is the continuation of what the Conservatives started last spring. Once they started and we realized that dozens of different laws were going to be negatively affected, along with the rights of Canadians and future generations, members on this side of the House tried to make use of the tools at our disposal as parliamentarians. We were facing an unprecedented situation in the history of Canada's Parliament.

Having a majority is not unprecedented. In fact, majority governments were the norm until just recently. What is new is having a government that is so arrogant and so unwilling to listen to the public that it thinks it is an emperor.

It did not need anyone. It no longer needed to talk with anyone. We are here to voice the concerns of our constituents. We are here to be heard.

In response to a question, the hon. member for Saint Boniface asked us earlier if we were aware of the global recession. I would remind the member that it was her Minister of Finance who, in the middle of that global crisis in the fall of 2008, denied its existence and refused to take action. Talk about arrogance.

Their complete lack of priorities means that instead of trimming the fat from government as needed, they are hacking and slashing away with a rusty machete. They have never defined their priorities, quite simply because they are just happy to be in power. They like to be in power, but they do not like to govern. What is the difference? One is the mere fact of occupying the most seats in the House, while the other requires competence in public administration in the interest of Canadians, and not in the interest of their Conservative cronies.

They do not have any priorities. Their most recent 450-page budget bill affects 64 other bills, including 20 that were not even mentioned in last spring's budget. As we just demonstrated, the Navigable Waters Protection Act, like 19 other acts, is not even mentioned in the budget.

As I said earlier, it is a question of credibility for the government. Let us look at some of the facts. Let us look at some examples of its public administration and measure them against what should be considered public priorities.

What could be more important than protecting the health and, indeed, the lives of Canadians? If we look at the whole pyramid of public administration, it ultimately exists to provide one thing: a service to the public. What service could be more important than public protection?

What is in the budget bill is a $46.6 million cut to the Canadian Food Inspection Agency. That is in here, word for word. The Conservatives talk about things that are not in here, but I am talking about things that are in here, and this is at page 261. It is in there.

[Brad Butt, Conservative, Mississauga—Streetsville, ON]

Is there a carbon tax in there?

[Thomas Mulcair, NDP, Outremont, QC]

One of the brilliant members of the peanut gallery has just asked a question that I am pleased to respond to. His question was, is there a carbon tax in there? That is interesting, because where we will find a cap and trade system proposed is in the 2008 platform of the Conservative Party.