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

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I am not sure that I would go that far. This is a deliberate strategy by the government to minimize the role of members in the House.

It is obvious that, since 2006, there has been a growing tendency, on the part of this government, to reduce the powers of MPs—whether they are in government or in opposition—and to provide fewer opportunities for them to fulfill their role and do what they were sent to Ottawa by their constituents to do.

I find that extremely sad. It is an erosion of the democratic process and our parliamentary system. Members of all parties should be worried, but the government members do not seem to want to talk about it.

We will therefore continue to raise these types of issues because they are important. We must talk about how we address these issues, because they concern all Canadians, just as we must deal with the substance of what is introduced.

[Bruce Hyer, Independent, Thunder Bay—Superior North, ON]

Mr. Speaker, I very much enjoyed the speech by the member. It was thoughtful and diverse. He touched on a lot of things and I agree with him.

However, as an easterner and a Quebecker who pays a lot of money for expensive Venezuelan and Arabian home heating oil and gasoline, I was surprised that he talked about diversifying the economy without mentioning building a pipeline to bring bitumen to eastern Canada to be refined here to lower our costs and, perhaps most important of all, to provide energy security for Canada instead of exporting more than we import. I wonder if he has any thoughts about that.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, that is the kind of issue that we must be allowed to debate.

As the member mentioned, Quebec imports its refined oil from several countries. Quebec's largest supply of oil comes from the North Sea. However, we import oil from a number of other countries that are not necessarily stable, or where stability has been compromised to a great extent. That is why we have to look at all options.

We are very dependent on fossil fuels, including petroleum. We have to look at other solutions and other options. However, our dependency will not disappear overnight. We must examine a west-to-east pipeline.

[Kellie Leitch, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, I am pleased to rise today to speak to Bill C-45, the jobs and growth act 2012.

I will be sharing my time with my colleague from the riding of Fort McMurray—Athabasca.

The bill is a continuation of our government's steady focus on the Canadian economy. It is what Canadians want and it is what they expect.

In March the Minister of Finance introduced our government's pragmatic and prudent vision for the future of Canadians, one that looked forward to not only the next few years, but also the next generation.

Since 2006, our government has worked to build a strong economic foundation for Canadians. While the effects of the economic downturn of 2008 were felt in homes and businesses across the country, it was through the steady, constant leadership of the Prime Minister and the Minister of Finance, as well as our Conservative government, that ensured the Canadian economy emerged from the recession well ahead of every major developed economy in the world.

We have delivered for Canadians. Our strong record speaks for itself: the creation of 820,000 net new jobs since July 2009; a 3.9% increase in year-over-year growth in manufacturing output; a reduction of personal income taxes and cuts to the GST; income splitting for seniors' pensions; the creation of a landmark tax-free savings account; and lower taxes on Canadian businesses, with Canada having the lowest tax rate on new business investment among major advanced economies.

Our banking system is regarded as the most stable in the world. The OECD and the IMF predict Canada's economy to be one of the international leaders over the next coming years.

Therefore, when we sift through the partisan rhetoric and the inaccurate facts and figures thrown about by my opposition colleagues, our government's record on the economy is laid to bare.

Ours is a low tax-plan that would help create jobs, while the NDP pushes high taxes that would kill jobs and growth.

Ours is a plan that would promote clean energy and enhance the neutrality of the tax system, while the NDP's massive carbon tax would not only take $21 billion out of the pockets of hard-working Canadians, it would also cripple Canadian businesses and kill Canadian jobs.

We are also extending the popular hiring credit for small business, which benefited nearly 534,000 employers last year. In my riding of Simcoe—Grey, business owners from Alliston to Collingwood spoke to me about how this measure provided needed relief to small businesses by helping defray the costs of hiring new workers and allowing them to take advantage of emerging opportunities.

My first job was as a small business owner. I ran a moving company to get through university. I took my inspiration and direction from my father, a construction company owner: hard work, dedication to employees and a commitment to service.

Like my father, Simcoe—Grey small business owners, like Fred Hamilton in Glen Huron, do not want handouts or government telling them how they should be running their businesses. All they want is a fair shot, an equal playing field and a government that gets out of their way, or at least works with them as opposed to against them.

Small businesses are the backbone of the Canadian economy. As Winston Churchill wisely said:

This is no country of vast spaces and simple forms of mass production...it is by the many thousands of small individual enterprises and activities that the margin by which alone we can maintain ourselves has been procured.

The hiring credit for small businesses does just that. It supports all those small businesses, like the Home Hardware run by Todd Young in Wasaga Beach in my riding. A huge benefit of this program is the tax credit is actually automatically applied. Business owners need not waste their time filling in forms. We have cut red tape as well as deliver a tangible benefit for Canadian businesses.

I am now pleased to speak about the amendments our government proposes to part III of the Canada Labour Code under this legislation.

As members will see, the proposed amendments will not represent significant changes to either employer or employee rights or obligations under part III of Canada's Labour Code. These changes will be part of an overall effort to reduce red tape, cut the cost of government and make our programs and services more responsive to the needs of Canadians.

Part III of Canada's Labour Code establishes minimum working conditions for employees in federally-regulated industries, such as banking, telecommunications and cross-border transportation.

Part III covers hours of work, general holidays, annual vacations and statutory leaves.

Part III also has provisions to help employees recover unpaid wages and get recourse in case they are unjustly dismissed.

The second budget implementation act 2012 contains a number of amendments aimed at making it easier for employers to comply with part III requirements. These proposed amendments will streamline processes, reduce the costs of administering the Labour Code and facilitate the resolution of complaints. We will all benefit from this: workers, employers, and taxpayers.

First, we will be simplifying the calculation for holiday pay for employees from the nine annual paid general holidays provided for in the code. The current method of calculating general holiday pay is highly complex and difficult to apply. Different formulae have to be used, depending upon whether an employee is paid on a monthly, weekly or hourly basis.

In addition, the current eligibility requirements also exclude many employees, for example, part-time workers, from entitlements to holiday pay. The amendments we are proposing will make things simpler so that employers will find it easier to make the necessary calculations for employees' pay and will also make more employees eligible to qualify for these benefits. For regular employees, little will change. General holiday pay will be one-twentieth of total wages, not counting overtime earned in the four week period preceding the week of a general holiday.

For example, Paul, a regular employee working full-time as a manager for a shipping company and earning $1,000 a week would be entitled to $200 in general holiday pay for Thanksgiving.

For employees on commission whose earnings fluctuate, the formula would be one-sixtieth of total wages, not counting overtime, over the preceding 12 weeks. Therefore, Julie, who works as a sales representative on commission and earns a total of $12,000 of the 12 week period before Thanksgiving, would also be eligible for $200 in general holiday pay.

The proposed amendments will also simplify eligibility of requirements for general holiday pay.

It will still be necessary to have 30 days of employment with the employer, but employees will no longer be required to have earned wages for 15 of the 30 days preceding the holiday. This will be beneficial for part-time employees.

We are setting a clear 30-day deadline for employers to pay any vacation pay owed to an employee once his or her employment ends. This will serve to clarify employers' wage payment obligations under the code.

Currently, any person affected by a payment order or anyone who has been notified that his or her complaint is unfounded can appeal the decision. Appeals are heard and adjudicated by external referees appointed by the minister on a case-by-case basis.

Through these amendments, we are establishing an administrative mechanism to review inspectors' payment orders and their decisions to reject a complaint. The internal review will be conducted by the labour program officials and will confirm, amend or rescind inspectors' decisions. This will create a win-win proposition.

The new administrative review process is intended to lead to a quicker and more cost-effective resolution of complaints, while remaining fair for employers and employees.

As members can see, these proposed changes to part III of the code are mainly administrative in nature. Some of them simply formalize existing policy directives.

I should also mention that these proposed amendments will establish provisions in the Canada Labour Code that are similar to existing provincial legislation.

Finally, we are also proposing amendments to the Merchant Seamen Compensation Act to eliminate the Merchant Seamen Compensation Board. While these amendments will streamline the administration of the act, benefits to affected seamen will not be altered.

The board currently consists of three part-time members who adjudicate claims and determine benefits. The Merchant Seamen Act applies to only five shipping operators. Most of these seamen have eligibility coverage under provincial jurisdiction. In a typical year only one claim is made.

Given the very small workload, there is no good reason for the board to be retained and have yet another unnecessary administrative layer. Therefore, under the current legislation, we will remove the Merchant Seamen Compensation Board and provide that authority to the Minister of Labour.

Many of these changes we have proposed to part III of the Canada Labour Code were recommended by the Federal Labour Standards Review Commission, also known as the Arthurs Commission, in a 2006 report. Overall, these changes will not significantly alter the balance of rights or obligations of employees and employers under the Canada Labour Code. I think both employers and employees will benefit from these amendments, which will reduce the administrative burden and hopefully will result in a quick resolution of complaints.

Bill C-45, the economic action plan 2012, would provide my constituents in Simcoe—Grey a plan for jobs and growth, something that all Canadians want. Our government is responding to that by having an action plan in place.

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

Mr. Speaker, I want to bring up a point.

My hon. colleague across the way talked about tax cuts and so on. On January 1, employment insurance premiums will go up for small businesses. I understand that there is a hiring tax credit, but it only covers half of the increase in the EI premiums.

Would my hon. colleague support the idea of doubling that hiring tax credit so she would not have to vote in favour of a tax hike for small businesses.

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, the employment insurance is dealt with in a separate envelope. Premiums meet the requirements. We are trying to stimulate small businesses and give them an opportunity to bring on more individuals and create jobs. That is something the opposition seems to be unable to do.

Those members voted against initiative after initiative, whether that be the targeted initiative for older workers or apprentice grant opportunities. The opposition members like to vote against job creation. We are about job creation and the hiring credit for small businesses is all about that.

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

Mr. Speaker, I appreciate the opportunity to have a bit of back and forth.

On another issue, if oil and gas companies around the world want to make their operations healthier, safer, more sustainable and more environmentally friendly, where do they go for the technology to do that? They go to Canada. However, oil and gas technology companies will be hit by the removal of the eligibility of capital expenditures from the scientific research and experimental development credit. Why is my hon. colleague's government in favour of a tax hike on oil and gas technology companies?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, as I said in my remarks, this government has been focused on reducing taxes. Whether that be personal income taxes, a reduction of the GST or a reduction for small businesses, that is what we have been focused on.

Every time we bring forward a reduction in taxes, the opposition members vote against that. Their track record is very clear: they want increased taxes or at least not a cut. We are very focused on ensuring we are cutting taxes so Canadian businesses and individuals can be successful. We are creating jobs and growing the economy by doing that. I know my constituents in Simcoe—Grey support exactly what we are doing in this budget. I encourage the opposition to support the budget so we can create jobs, not only in my riding but also in Kingston.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Mr. Speaker, I enjoyed the member's speech very much and the concentration on productivity, the economy and on jobs of course.

However, could she comment somewhat about what the Liberal Party did in the 1990s in clawing back $25 billion from social transfers to the provinces that hampered our schools, our medical system, et cetera? Could she comment on whether that is this government's agenda, whether we will claw back $25 billion in social services to the provinces?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, I am a health care professional and I worked in the hospitals in Ontario when the cuts took place by the Liberal government. There was a huge decrease in our capacity to take care of patients. What this government has done is set an escalator of 6% over the next number of years and then to match GDP so it never drops below 4%. That is going to make a huge difference to people providing care in hospitals in Ontario and across the country. Unlike what the Liberals did, when we had to struggle for operating room time and to ensure we could take care of patients, this government is protecting patient care and I am delighted to be a part of it.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I would remind members that this is another massive omnibus bill that amends many acts. Furthermore, the government has moved a time allocation motion in an attempt to speed up debate, which does not enable us to thoroughly debate this bill.

My question has to do with the fact that this bill will weaken environmental protections and cut funding for research and development. Could my colleague comment on that?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, I find it interesting that the New Democrats like to talk about how we deal with items when all they want to do is destroy jobs and the economy. Whether it be the NDP carbon tax of $21 billion, which individuals will not be able to afford to pay for that research or afford to run their companies, we are very focused. When it comes to the environment, whether it be the $1.1 billion for the eco-energy tax home retrofit or the billion dollar priorities on green energy generation, this government is focused not only on the environment but on creating jobs and ensuring Canadians have a great quality of life.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Mr. Speaker, I thought the points made by the member who just spoke were very well made. In fact, it is very important to see as a macro vision what we are doing as a government and how we are concentrating on jobs, the economy and the strength of the Canadian economy in the future, which of course is very important to Canadians and most important when we do not have it.

I would like to talk a bit about the future goals of the budget bill and what I see as our overreaching goals. That, of course, is to make sure we have better safety and security, more efficiency, the removal of red tape and, ultimately, a better quality of life. That is what this is all about and why I am in this place, to make a better quality of life for the people in my constituency of Fort McMurray—Athabasca and every part of this great country.

Since the Conservative government has promoted Canada's economic action plan, we have seen tremendous growth and development in this country, even while the rest of the world is suffering from an economic decline and people are wondering how they are going to build jobs in the future. Our country is doing tremendously well, and the people of Canada are doing very well overall. There are pockets of unemployment, of course, and we are addressing that with some changes through our economic action plan, as the member said earlier, in employment earnings legislation specifically, and I believe those changes will be efficient enough to move forward with our economy, because that is ultimately what it is about.

Speaking of records, our economy has expanded in nine out of the last ten quarters. That is right; it is very unusual in today's economic climate, but out of the last ten quarters, nine of them have seen economic growth and expansion. As well, 810,000 net jobs have been created since June of 2009. That is no small feat, especially given the size of our economy and workforce. That is a tremendous thing to brag about. The rest of the economies in the world, the G7 and the G20 all recognize that Canada is the leader as far as jobs and growth go and are envious of our position.

Our nation also holds the strongest fiscal position in the G7. We hear that all the time, but it is the truth and something to be proud of and brag about, because we are in such great condition today compared to most of the world. We do not sit on our laurels, though, and we feel we must continue to secure more jobs and have more growth and long-term prosperity because, as I said, that is what Canadians expect of their federal government and that is what we are going to deliver.

With that, we will specifically focus on supporting entrepreneurs, on innovation and research, and on business investment, strategically encouraging businesses and private enterprises to invest the money they have stockpiled during this recession and hire more workers. That is why things like the small business hiring credit and other initiatives from our government are so popular in the small business community. Businesses know, when we put forward a plan like this tax credit, we will follow through with legislation, unlike what happened in previous Liberal governments, especially regarding climate change and other environmental initiatives. The Liberals talked about it but never acted on it.

That is the difference with this government. The Conservative Party puts forward policies based on its economic platform. People can find it on the website, conservative.ca. We have clearly indicated all the initiatives we are going to have over time, that we are going to concentrate on jobs and growth for the economy, remove red tape and get rid of duplication of services so that Canadians know that, when they contact their federal government, they are going to get good service in a reasonable amount of time and just and satisfactory decisions. Clearly, that is what interests me.

Efficient productivity is vital for this country. Productivity moves up and down, and we can make changes today that we will not see on the productivity index for some period of time. I think, bluntly, that the changes we have made over the last six years are tremendous and we will see positive repercussions on the productivity of our nation for decades as a result. We are going to see an increase in manufacturing jobs, a stronger, more robust economy for manufacturers, and workers who are employed and feel job security, instead of what happened over the past decade or two, such as the insecurity of auto workers' jobs, in particular.

I have friends who work in the auto sector. For years and years they wondered whether they were going to have a job in two or three months. We are going to add substance, long-term planning and predictability for companies and corporations such as the auto sector, so they know they will not have to worry about bailouts, that they will have a good, robust agenda for trade and workers and that their jobs will be good for many centuries to come.

Since 2006, our government has also moved forward in the most aggressive manner on lowering corporate taxes to the lowest level of any industrialized nation, 15%. Even the President of the United States recognized this. The challenger to the President of the United States recognized what Canada has done with the economy, how robust our economy is, because we have lowered taxes for corporations.

Even though we have lowered our corporate taxes to 15%, corporate revenues have actually risen to the highest record ever. It is obvious that this strategy by the Conservative government and this Prime Minister is working, is effective and is working well for Canadians. Canadians can count on their federal government to continue that.

We have also provided $500 million to support venture capitalist activities. This is important, because during times of economic slowdown everyone holds onto their wallet tightly and they are not prepared to invest or take risks. As a government, we have to help them move forward on some of these ventures to make sure the economy keeps going, to make sure jobs keep growing and there are new jobs.

We have also extended the domestic powers of Export Development Canada to continue to provide financial support for both manufacturers and exporters, because if we do not trade with the world we are going to lose; our competition is the rest of the world. We need to make sure we open those markets. Unlike what the NDP has been doing for years, and that is working against any trade objective with any country around the world, we are going to move forward aggressively, as we have done and will continue to do, and sign agreements with other trading nations to bring the rule of law, to bring human rights and the acknowledgement of what Canadians hold dear, but also to create jobs right here at home. We are going to continue to do that.

The $14 million to expand the industrial research and development internship program is very important for our future. Of course, so is the $110 million to the industrial research assistance program in support of manufacturers and exporters.

In terms of the environment, I want to talk about a lot of things. There is not enough time obviously for me today, but the environment is very important to me and I see some of the initiatives we have moved forward with as a government, especially in northern Alberta. We have moved forward with initiatives in co-operation and partnership with the Province of Alberta to have cleaner air monitoring services, to make sure the air that my constituents and my family breathe is cleaner at all times. It is the same for water. I applaud those two initiatives by the federal government. My constituents applaud the Prime Minister for those particular initiatives, because we want to make sure we have significant funding strategies in place to keep the health and welfare of Canadians as our predominant concern.

We have also had other initiatives, and I am going to mention some of the success stories: the ecoenergy for homes program; over $140 million toward creating a national urban park in Rouge Valley, Ontario. That park is one of the largest in North America as far as urban parks go. It is a great success story for our government as well, because we do not want to industrialize every part of the country; we do not even want to industrialize most of it. We want to make sure that in urban areas there are places for people to enjoy and have a good quality of life, as we do in rural Canada.

There is $71 million in funding upgrades to the Mayo B hydro facility in the Yukon. This is a transmission line that will increase clean energy and reduce greenhouse gases from energy production by 50%. It took a $71 million investment by the federal government with about an eight-year payback. Those are good business strategic investments by the government for a return on investment for taxpayers that is reasonable and very good.

We also invested heavily in green energy generation, carbon transmission infrastructure, clean energy research and regulatory activities to address climate change. These are only a few provisions.

I want to talk about the navigable waters changes and how important those are, but I see I do not have a lot of time for that. The changes we are making to the navigable waters will protect navigation. That is what it is for and that is important. I am a canoeist. I spend a lot of time outdoors, and I want to make sure this government protects my right and that of other Canadians and future generations to continue to be able to navigate.

Other pieces of legislation, such as the Marine Transportation Security Act, the Fisheries Act and the Canadian Environmental Assessment Act, should deal with the environment and with fish. Let navigation deal with the navigation and let those acts deal with what is important for them. If we streamline those things, we can make sure Canadians get the proper return on investment for their tax dollars and we eliminate the need for duplication and bureaucracy that does not accomplish anything. That is what it is about for our government, building jobs, having productivity and efficiency to ultimately give us all a better quality of life.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Mr. Speaker, I will be sharing my time with the member for Châteauguay—Saint-Constant.

There are many things wrong with the bill, but first and foremost, Bill C-45 is another omnibus bill that conspires to ram a wide range of unrelated legislation through Parliament. Despite claims from the Minister of Finance, much of this legislation is not included in the budget from earlier this year. The problem with an omnibus bill is that it does not allow MPs to properly study, understand and review the legislation. The very purpose of Parliament and the reason we are here as MPs is to review legislation and improve the laws governing our country. This omnibus bill is a flagrant attempt to prevent MPs from doing their jobs. This is an obvious disservice to the Canadians who elected us to represent them.

Due to the size of Bill C-45, I do not have time to outline all the issues I have with it, so I will restrict my focus to only three sections of the bill.

First, I want to talk about the sections that relate to pooled registered pension plans, or PRPPs. New Democrats have been very clear that we need pension reform. However, the PRPPs are not the solution. Canadians do not have extra money for investing. As it stands now, Canadians are not investing in RRSPs. PRPPs are just another scheme that will have little pickup. Why on earth does the government think people will start investing in PRPPs? If they do not have the money, they cannot invest. Those who do invest in PRPPs will find much of their investment siphoned off by banks and institutions through management fees. PRPPs are another scheme that will add to bank profits, with a poor benefit for individual Canadians.

Seniors represent one of the fastest growing populations in Canada today. The number of seniors in Canada is projected to increase from 4.2 million right now to 9.8 million by 2036. With so many more seniors retiring in the years to come, we need to have the social safety net in place now to avoid dramatic increases in the rate of poverty among those seniors in future. We need real pension reform and not a savings scheme that is dependent on the ups and downs of the stock market. Recent bad experiences in the markets remind Canadians how ineffective that kind of saving is. Too many saw their savings crumble away as the markets took a nosedive. This is not how savings for retirement should be organized.

For employees, a PRPP is like a defined contribution or group RRSP. It is a savings vehicle, limited by RRSP limits and regulations, purported to allow workers to save for retirement, but it does not guarantee retirement security. PRPPs are managed by the financial industry, the same crew receiving huge corporate tax breaks from the Conservatives. The PRPP is not a defined benefit plan. It does not provide a secure retirement income with a set replacement rate of pre-retirement income. It is not fully transferrable. It is not indexed to inflation and therefore will not increase with the increasing cost of living.

It is noteworthy that employers, not employees, will decide the contribution levels, and it will not be mandatory for employers to contribute or match workers' contributions to PRPPs. Without employers contributing, it is not really a pension plan. In fact, employers who do not help their employees save for retirement could end up with a competitive advantage over employers who do.

The best option for Canadians is to double the CPP/QPP. We could do that for the cost to an employee of a couple of dollars a week. This is the best option for Canadians, as the money invested would not be going toward big bank profits but would go into the retirees' pockets when they retire.

I want to highlight one more thing about the PRPP section of the bill. It is long and complicated. It needs to be studied on its own as a separate bill. By slapping this into the omnibus budget bill, we cannot do our due diligence as MPs. We cannot give it the proper critical scrutiny it needs. To be frank, we know the PRPP legislation has passed and is going ahead. Consequently, we do need to make changes in tax legislation.

However, there is no reason for this piece to be in the budget bill. This should be a separate bill that could be scrutinized to ensure that no mistakes are made. It is the reasonable and logical thing to do.

The second section of the bill that I want to talk about today is the portion on public sector pensions. Bill C-45 sets out to increase public sector employee contributions to 50% regardless of the date of hiring; to increase the age of retirement from 60 to 65 for all employees hired after January 1, 2013; to eliminate the ability for public servants to take early retirement without penalty after 30 years of continuous service; and it only allows employees hired after January 1, 2013 to be eligible for early retirement after 30 years of service if they are 60 or older. It is also noteworthy that employees who are 55 or older with 25 or more years of service are eligible for a reduced pension.

New Democrats are concerned that this legislation is creating a two-tiered work force in which younger people have to work longer for the same retirement benefits as their predecessors. This appears to be part of a greater agenda by the government to force young people to pay the price for the government's tax breaks to large corporations.

The Conservatives are taking no measures to curb youth unemployment, and we know that it is the young people today whose OAS benefits will not kick in until they are aged 67. It is their retirement security that is in jeopardy. They are paying more for goods and services, making less money, and their pensions are being cut.

Here I would add that the public service has acted as a model for best practice and has had the ability to attract the best and brightest to serve this country. Public servants work to ensure that our country runs smoothly. They work to ensure that federal services are available to Canadians and that federal regulations are in place and followed. They work behind the scenes to draft and improve legislation. They do research and ever so much more. They ensure that this country runs efficiently.

This legislation will jeopardize the ability of the government to attract the best and the brightest. We cannot afford to risk losing such an integral element of government administration.

I am pleased that we were able to split off the MP portion of the bill, but I would like to note how disappointing it was that my colleagues in the other parties would have been quite happy to lump in changes to the public service pension changes despite this split. That would have left us with no opportunity to debate or address the changes to the public services portion of the bill.

The third section of the bill that I wish to discuss is the changes to the Navigable Waters Protection Act. Canadians have made it clear that they want us to take action to protect their environment and grow a sustainable economy for the future, while the Conservatives are focused on gutting environmental protection.

The changes to the Navigable Waters Protection Act are a prime example of Conservative mismanagement. The government has determined, with the exception of a list of three oceans and 97 lakes and 62 rivers, that the act will no longer automatically apply to projects affecting waterways. This will leave thousands of waterways unprotected, meaning there will fewer environmental reviews by Transport Canada. In fact, the bill would remove water protection from the name of the bill. Now it is just about navigation protection.

Of Canada's 37 designated Canadian heritage rivers, only 10 are included in the new act. One heritage river that has been left off the list is the Thames River, which runs through my community and riding in London, Ontario. The Thames is an important part of our local economy and a part of the fabric of our community, a part of its history. These changes would put our river at risk.

To conclude, the NDP will always be proud to stand up for transparency and accountability. We will always stand up for the environment and we will always stand up for retirement security and health care. In short, we will stand up for Canada.

I would like to seek unanimous consent to move the following motion. I move:

That notwithstanding any standing order or usual practice of the House, clauses 464 to 514, related to public sector pensions, be removed from Bill C-45, a second act to implement certain provisions of the budget tabled in Parliament on March 29, 2012, and other measures, and do compose Bill C-47; and that Bill C-47 be entitled an act to amend the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act,

That Bill C-47 be deemed read a first time and be printed, and that the order for second reading of the said bill provide for the referral to the Standing Committee on Government Operations and Estimates; that Bill C-45 retain the status on the order paper that it had prior to the adoption of this order; that Bill C-45 be reprinted as amended; and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing this motion to ensure that Canada's Parliament can fully scrutinize the legislation before it and to look out for Canadians.

[The Acting Speaker, Conservative, Bruce Stanton]

Does the hon. member for London—Fanshawe have the unanimous consent of the House to propose the motion?