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An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay)

This bill is from the 40th Parliament, 3rd session, which ended in March 2011.

Sponsor

John Rafferty  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Third reading (House), as of March 9, 2011
(This bill did not become law.)

Summary

This is from the published bill.

This enactment amends the Bankruptcy and Insolvency Act to ensure that the claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a person is secured as of the date of the bankruptcy or receivership by security on the person's current assets.

Similar bills

C-338 (41st Parliament, 2nd session) An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay)
C-338 (41st Parliament, 1st session) An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay)

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-501s:

C-501 (2014) Law National Hunting, Trapping and Fishing Heritage Day Act
C-501 (2013) National Hunting, Trapping and Fishing Heritage Day Act
C-501 (2008) Mathieu Da Costa Day Act
C-501 (2004) An Act to amend the Bank Act (branch closures)

Votes

March 9, 2011 Passed That Bill C-501, An Act to amend the Bankruptcy and Insolvency Act and other Acts (pension protection), as amended, be concurred in at report stage.
May 26, 2010 Passed That the Bill be now read a second time and referred to the Standing Committee on Industry, Science and Technology.

Royal Recommendation—Bill C-501Points of OrderOral Questions

May 11th, 2010 / 3:10 p.m.


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Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, I rise on a point of order with respect to Bill C-501, An Act to amend the Bankruptcy and Insolvency Act and other Acts (pension protection).

Without commenting on the merits of the bill, I submit that its provisions to require the Minister of Labour to appoint an adjudicator to hear and adjudicate claims would require new government spending and therefore would require a royal recommendation.

Page 834 of the second edition of House of Commons Procedure and Practice states:

—a royal recommendation is required not only in the case where money is being appropriated, but also in the case where the authorization to spend for a specific purpose is significantly altered.

Bill C-501 would amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act so that the unfunded pension plan liabilities would be accorded the status of secured debts in the event of bankruptcy.

The bill would also amend the Canada Business Corporations Act to provide for a procedure by which former employees of a bankrupt corporation who were owed amounts by the corporation could proceed with claims against its directors. That procedure is set out in clause 6, which would require the Minister of Labour to appoint an adjudicator to hear and adjudicate claims and would set out the powers and functions of the proposed adjudicator. Section 23 of the Interpretation Act makes it clear that the power to appoint also includes the power to pay.

The requirement for a royal recommendation for a new officer of the Crown is made clear in the Speaker's ruling of November 9, 1978, which states, “If this bill is to impose a new duty on the officers of the Crown, these objectives will necessitate expenditures of a nature which would require the financial initiative of the Crown”.

On September 19, 2006, in the case of Bill C-293, An Act respecting the provision of official development assistance abroad, the Speaker ruled on the need for a royal recommendation for the creation of an advisory committee that:

—the establishment of the advisory committee for international development cooperation provided for in clause 6 clearly would require the expenditure of public funds...

On February 11, 2008, in the case of Bill C-474 provisions, for the appointment of representatives for an advisory council, the Speaker ruled that this required a royal recommendation:

Clause 7 of the bill provides for the governor in council to appoint 25 representatives to the advisory council....As the provision in Bill C-474 is such that the governor in council could choose to pay a salary to these representatives, this involves an appropriation of a part of the public revenue and should be accompanied by a royal recommendation.

These precedents also apply to Bill C-501. As I have mentioned, the bill's proposal to appoint an adjudicator would increase government spending for a new purpose and therefore must be accompanied by a royal recommendation.

Jobs and Economic Growth ActGovernment Orders

April 13th, 2010 / 11:55 a.m.


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NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Madam Speaker, as the member knows, I am not part of that committee and not privy to things that are said in camera. I am not really sure what is going on there.

However, I remind the member that one of the reasons we are in the House is to listen to our constituents and to represent them to the best of our ability. I continue to do that as do all members of the NDP.

Sometimes things are very clear in terms of how our constituents would like us to vote, or in terms of things that we would like to speak on, like my pension bill, Bill C-501. My constituents would like to see that bill go through for the benefit of all Canadians.

I would like to think we are all here for that reason.

Jobs and Economic Growth ActGovernment Orders

April 13th, 2010 / 11:40 a.m.


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NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Madam Speaker, I am pleased to speak to Bill C-9, the budget implementation act. I would like to spend my time talking about some of the things that are in the bill but also about some of the things that are not in the bill and things that should be discussed.

I certainly appreciate the comments of my colleague across the way and thank her very much for those comments.

Let me talk about a couple of things that are in the budget that will create hardships not just for people in Thunder Bay—Rainy River in northwestern Ontario, but right across northern Ontario and other regions across the country. There is the increase of 50% in security fees in the airline tax. That is one of those hidden things that people will be hit with. There is the HST on financial services. We have talked about some of the problems with that before. Another is employment insurance.

Employment insurance is of particular interest to our party, to me and to our member from New Brunswick who is the critic in that area. The budget implementation bill empties the employment insurance account which held a surplus of roughly $57 billion. That was money paid by workers and employers which had built up over many years. The bill empties that account once and for all.

People talk about the budget being a budget that says nothing. There are a number of things in it that we need to be aware of.

There is very little said about pensions. I suspect that the Minister of Finance who is now going across the country will be getting an earful about pensions. We know where pensions need to go in this country. We are really in the dark ages as far as pensions are concerned. The NDP has a plan and we put it forward. The Minister of Finance is aware of what we are talking about regarding reforming the pension system.

I will make a quick plug for Bill C-501 which will be coming up for debate next month. It is a bill that moves workers' pensions from unsecured into secured status. It is a very simple, straightforward bill. I am hoping that everyone in the House will support it, including my colleagues from Saskatchewan and other places whom we try to co-operate with as much as possible. I am sure we will find some common ground on Bill C-501 and will be able to push it through very quickly to protect workers.

Imagine a country where workers and employers who paid into pension funds actually get the money back in the case of bankruptcy. That is what the bill would do. I certainly hope that members will support it.

I do not want to be completely negative when I talk about the budget. The budget extends the mineral exploration tax credit for another year, which is good. I am glad that the government has done that. The government is at least taking a couple of steps forward to fight contraband cigarettes with a new stamping regime which is a good thing. The budget also enacts certain payments to some charities, for example the Canadian Youth Business Foundation, the Rick Hansen Foundation and others. That is also a good thing.

Let me move from examining the propaganda in the budget speech to the nuts and bolts of Bill C-9. We see that the Conservative government continues to sell out our long-term interest for questionable short-term gains.

I was not surprised to see many items in Bill C-9, the HST payment to McGuinty's Liberals for example, a freeze on MPs' salaries and office budgets and huge corporate tax cuts. These were all expected.

Buried deep in the 904 pages of legal jargon that is Bill C-9 there are also provisions that eliminate the need for environmental assessments for stimulus projects, enable the sale of crown assets like Atomic Energy of Canada Limited, and increase the export tariff penalty for Canadian forestry producers.

Given that we are blessed with a beautiful and relatively pristine natural environment in northwestern Ontario, I am very concerned that environmental assessments will no longer need to be completed before infrastructure stimulus projects get under way.

While the Canadian economy is in desperate need of public investment, northwestern Ontario is in desperate need of new roads and highways right through the region. I would rather have a month or two delay on these projects so as to ensure that they comply with existing environmental regulations and do not have negative long-term effects on our natural environment, which many families in our region depend upon for their economic well-being.

Just as it does not make sense to cancel environmental assessments in the name of short-term economic stimulus, it also makes little sense to sell off profitable crown corporations and crown assets when we are facing many years of large fiscal deficits.

In the case of AECL, Bill C-9 lays the groundwork for the selling off of particular assets or of the company as a whole, even though the company is one of the world's largest producers of nuclear technology and brings in millions of dollars each year through the sale and licensing of its cutting-edge technology. Would it not make more sense to halt the $100 million ad campaign the Conservatives are using to promote their budget? Imagine $100 million being spent on ads to promote themselves; the Conservatives are using that to promote their budget supposedly.

How about reducing the $60 billion in corporate tax cuts before selling off a proven long-term money maker? The answer is obvious but the government has never shown an ability to look beyond the next poll when it comes to its decision making.

Perhaps the most troubling detail contained in the fine print of Bill C-9 is the acceptance and enforcement of the London Court of International Arbitration ruling that Canadian forest companies owe $68 million to their U.S. counterparts, $68.26 million to be exact, due to an unintentional violation of the softwood lumber agreement. In fact, the unintentional violation is the government's fault. To comply with this ruling, the Conservative government included a provision in Bill C-9 that increases the export tariff on softwood lumber products from Ontario, Quebec, Manitoba and Saskatchewan by 10% immediately.

When one subtracts the paltry $25 million in new forest sector investment that is also contained in the budget, Canada's forestry sector will actually be forced to pay out $43 million in new taxes and tariffs this year just as it begins to emerge from a catastrophic decade-long downturn. It makes no sense. At the very least, since the tribunal has already ruled, the government should be on the hook, not forest companies that are struggling to manage and are just starting to see the light at the end of the tunnel.

It is a horrible situation in Bill C-9, eliminating the need for environmental assessments on infrastructure projects and selling off profitable assets while running massive long-term deficits.

I talked about AECL. Also contained in Bill C-9 is the beginning, the thin edge of the wedge, in starting to dismantle Canada Post. Think of all the fine public sector workers who have good jobs, work hard, are paid well and have pensions at the end of their time. There is nothing wrong with people working hard, getting paid well, raising their families and having a little pension when they get to the end of their working lives. There is nothing wrong with that, but the government is making it more and more difficult for people in Canada to do that.

Surely Bill C-9 will go down as one of the most shortsighted and misguided budget documents ever before the House of Commons. Should the Liberals and Conservatives band together to pass this bill, as they did with the HST, then both parties must share the blame for the substantial damage that it is likely to cause to the long-term economic and environmental interests in our region.

PensionsStatements by Members

March 30th, 2010 / 2:10 p.m.


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NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, today I announced the tabling of Bill C-501 which will put pension plans at the front of the line when a company enters bankruptcy protection or undertakes restructuring.

Workers at AbitibiBowater and other forestry companies across Canada have waited too long for the government to assist their struggling sector or failing that, at least protect their pensions.

Now, we know the Conservative government can move quickly when it chooses to do so. After all, it banded together with the Liberal caucus in December to pass its federal HST bill, Bill C-62, in just four days.

I hope all members of this place will recognize the urgency of securing the pensions of hard-working Canadians and will commit to not just supporting, but fast-tracking the passage of Bill C-501 in the interests of all our constituents.

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, Nortel workers now have a gun to their heads. A judge ruled the February deal on extending health and disability benefits could not be approved because a clause would allow pensioners to argue for a higher priority if the government changed bankruptcy laws.

Nearly 20,000 pensioners have three days to decide whether to accept the deal without the protection of future legislative changes or lose everything.

Will the minister act immediately and use the NDP bill, Bill C-501, to change these unjust bankruptcy laws now?