Bill C-52 (Historical)

Budget Implementation Act, 2007

An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007

Part 1 implements income tax measures proposed or referenced in Budget 2007 to
(a) introduce a tax on distributions from certain publicly traded income trusts and limited partnerships, effective beginning with the 2007 taxation year;
(b) reduce the general corporate income tax rate by one half of a percentage point, effective January 1, 2011;
(c) increase the age credit amount by $1,000 from $4,066 to $5,066, effective January 1, 2006;
(d) permit income splitting for pensioners, effective beginning in 2007;
(e) introduce a new child tax credit of $2,000 multiplied by the appropriate percentage for a taxation year, effective beginning in 2007;
(f) increase the spousal and other amounts to equal the basic personal amount, effective beginning in 2007;
(g) increase the age limit for maturing registered retirement savings plans, registered pension plans and deferred profit sharing plans to 71 years of age, effective beginning in 2007;
(h) expand the types of investments eligible for registered retirement savings plans and other deferred income plans, effective March 19, 2007; and
(i) increase the contribution limits for registered education savings plans and expand eligible payments for part-time studies, effective beginning in 2007.
Part 1 also amends the Canada Education Savings Act to increase the maximum annual grant payable on contributions made to a registered education savings plan after 2006.
Part 2 amends the Excise Tax Act to clarify the legislative authority that allows the Canada Revenue Agency to pay refunds of excise tax directly to end-users, where fuel subject to excise has been used in tax-exempt circumstances. It also amends that Act to repeal the excise tax on heavy vehicles and to implement the Green Levy on vehicles with fuel consumption of 13 litres or more per 100 kilometres. It also provides an authority for the Canada Revenue Agency to pay a refund of the Green Levy for vans equipped for wheelchair access.
Part 3 implements goods and services tax/harmonized sales tax (GST/HST) measures proposed or referenced in Budget 2007. It amends the Excise Tax Act to exempt midwifery services from the GST/HST and to zero-rate certain supplies of intangible personal property made to non-GST/HST registered non-residents. It also amends that Act to repeal the GST/HST Visitor Rebate Program and to implement a new Foreign Convention and Tour Incentive Program, which provides rebates of tax in respect of certain property and services used in the course of conventions held in Canada and the accommodation portion of tour packages for non-residents, and establishes new information requirements in the case where rebates are credited by the vendor.
Part 4 implements other measures relating to taxation. It amends the Customs Tariff to increase the duty-free exemption for returning Canadian residents, from $200 to $400, for absences from Canada of not less than 48 hours. It amends the Federal-Provincial Fiscal Arrangements Act to clarify that when a federal corporation listed in Schedule I to that Act pays provincial taxes or fees, wholly-owned subsidiaries of that corporation also pay provincial taxes or fees. It also authorizes the Minister of Finance to make payments totaling $400 million out of the Consolidated Revenue Fund to the Province of Ontario to assist the province in the transition to a single corporate tax administration. This last measure is consequential to the October 6, 2006 Canada-Ontario Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax.
Part 5 enacts the Tax-back Guarantee Act, which legislates the Government’s commitment to dedicate all effective interest savings from federal debt reduction each year to ongoing personal income tax reductions. That Part also commits the Minister of Finance to report publicly at least once a year on personal income tax relief provided under the Guarantee to Canadians.
Part 6 amends the Federal-Provincial Fiscal Arrangements Act to set out the amounts of the fiscal equalization payments to the provinces and the territorial formula financing payments to the territories for the fiscal year beginning on April 1, 2007 and to provide for the method by which those amounts will be calculated for subsequent fiscal years. It also authorizes certain deductions from those amounts that would otherwise be payable under that Act. In addition, it makes consequential amendments to other Acts.
Part 6 also amends that Act to provide increased funding for the Canada Social Transfer beginning on April 1, 2007, and to provide for the method by which the Canada Social Transfer and the Canada Health Transfer amounts will be calculated for subsequent fiscal years, including per capita cash allocations. It also provides for transition protection.
Part 7 amends the Financial Administration Act to modernize Crown borrowing authorities.
Part 8 amends the Canada Mortgage and Housing Corporation Act to permit the Minister of Finance to lend money to the Canada Mortgage and Housing Corporation.
Part 9 amends the Bankruptcy and Insolvency Act, the Canada Deposit Insurance Corporation Act, the Companies’ Creditors Arrangement Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act to allow the Governor in Council to prescribe the meaning of “eligible financial contract”. Those Acts are also amended to provide that, after an insolvency event occurs, a party to an eligible financial contract can deal with supporting collateral in accordance with the terms of the contract despite any stay of proceedings or court order to the contrary. This Part also includes amendments to the Bankruptcy and Insolvency Act and the Winding-up and Restructuring Act to provide that collateral transactions executed in accordance with the terms of an eligible financial contract are not void only because they occurred in the prescribed pre-insolvency or winding-up period.
Part 10 authorizes payments to provinces and territories.
Part 11 authorizes payments to certain entities.
Part 12 extends the sunset provisions of financial institutions statutes by six months from April 24, 2007 to October 24, 2007.
Part 13 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with the power to authorize another minister, to whom he or she has delegated powers under that Act, to subdelegate those powers to the chief executive of the relevant department. That Act is also amended with respect to the application of section 9 to certain departments.
Part 14 amends the Financial Consumer Agency of Canada Act to allow the Minister of Finance to provide funding to the Agency for activities related to financial education.

Report stage

[Rick Dykstra, Conservative, St. Catharines, ON]

Mr. Speaker, I appreciate the perspectives of the member for Dartmouth—Cole Harbour and respect his work, but I have difficulty trying to understand his view on the budget.

He picked on one program within the budget, upon which changes were said to come from the very beginning. It was a new program that needed to be implemented based on getting rid of the situation where MPs were signing off. We would turn it into a system that was fair and equitable, a system that would be reviewed after it started, and it was.

He asked a question in the House as to why that association had not received funding. He stood in the House today and acknowledged that it did receive funding. Congratulations, the organization deserved and received the funding it should have.

The one thing he did not talk about, and the member for Saint John did not speak about beforehand, was the $1.4 billion under new equalization for New Brunswick, the $1.3 billion for equalization for Nova Scotia, the $512 million under the Canada health transfer for New Brunswick and the $639 million to Nova Scotia for health care transfers. Talk about the big impact this budget will have on provinces that for years cried to the former government for help and what did it say? Nothing. Newfoundland and Labrador had to lower the flag in order to get attention.

Why will the member not acknowledge the good, the intent and the funding that will help his province? Why he will not support the budget?

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I am tempted to ask if hogwash is a parliamentary term. Maybe it was not until the Conservative government came in and it became accepted.

The member talked about the organization that eventually received funding. If I could find it, I could read the email in which it thanks me for the funding it received. I raised the issue. Is that how it is supposed to work?

Are organizations supposed to go cap in hand? Should the Autism Society of Nova Scotia beg for support from the government and only get it because the government was shamed into doing it? Surely, my colleague, the member for St. Catharines does not think that makes sense.

Everyone in Nova Scotia, except a couple of old fashioned Conservatives, knows it got rooked in the federal budget. We got slaughtered in the federal budget. The Atlantic accord was not just money. The Atlantic accord was the future of Nova Scotia. It was the future of young Nova Scotians. It was callously pushed aside and cast aside by the Minister of Finance. The government is trying to fix it up now and perhaps trade off something else.

All the Conservatives have to do is honour the Atlantic accord as they said they would when the Liberals brought it in.

[The Deputy Speaker, Bill Blaikie]

Is the House ready for the question?

[Some hon. members]

Question.

[The Deputy Speaker, Bill Blaikie]

The question is on Motion No. 5. A vote on this motion also applies to Motions Nos. 6 to 9. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Deputy Speaker, Bill Blaikie]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Deputy Speaker, Bill Blaikie]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Deputy Speaker, Bill Blaikie]

In my opinion the yeas have it.

And five or more members having risen:

Call in the members.

And the bells having rung:

There has been a request that the vote on Motion No. 5 be deferred until the end of government orders tomorrow.

The House resumed from June 4 consideration of Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Budget Implementation Act, 2007

[The Acting Speaker, Andrew Scheer]

It being 5:30 p.m., the House will now proceed to the taking of the deferred recorded division--

[Jim Karygiannis, Liberal, Scarborough—Agincourt, ON]

Mr. Speaker, I have a point of order.

[The Acting Speaker, Andrew Scheer]

We are going to move on to the deferred recorded division and if the member for Scarborough—Agincourt has a point of order dealing with Bill C-45--