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MINUTES OF PROCEEDINGS
 
Meeting No. 68
 
Tuesday, June 7, 2005
 

The Standing Committee on Finance met at 3:37 p.m. this day, in Room 237-C Centre Block, the Chair, Massimo Pacetti, presiding.

 

Members of the Committee present: Rona Ambrose, Don H. Bell, Guy Côté, Charles Hubbard, Yvan Loubier, Hon. John McKay, Hon. Maria Minna, Massimo Pacetti, Brian Pallister, Charlie Penson, Monte Solberg and Judy Wasylycia-Leis.

 

Acting Members present: Françoise Boivin for Don H. Bell and Bob Mills for Brian Pallister.

 

In attendance: Library of Parliament: June Dewetering, Principal; Alexandre Laurin, Analyst.

 

Appearing: Hon. John McKay, Parliamentary Secretary to the Minister of Finance.

 

Witnesses: Department of Finance: Peter DeVries, General Director, Deputy Minister's Office; Len Farber, General Director, Tax Policy Branch; Susan Margles, Director, Economic Development and Corporate Finance. Department of the Environment: Mike Beale, Acting Director General, Economic and Regulatory Affairs Directorate, Policy Integration.

 
Pursuant to the Order of Reference of Thursday, May 19, 2005, the Committee commenced consideration of Bill C-43, An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005.
 

The Hon. John McKay, Peter Devries, Len Farber, Susan Margles and Mike Beale answered questions.

 

The Committee resumed its clause-by-clause study of the Bill.

 

By unanimous consent, Clauses 2 to 4 inclusive carried.

 
Monte Solberg moved, — That Bill C-43, in Clause 5, be amended by replacing lines 1 to 14 on page 3 with the following:

“(b) for the 2007 taxation year, to be replaced by the amount that is the total of

(i) an amount that results in a reduction in personal income tax for all taxpayers, based on tax returns filed for the 2006 taxation year, that is equal to the difference between the amount that would, but for the amount that yields the reduction, be the annual surplus as provided in the Public Accounts for the fiscal year 2005-2006 prepared in accordance with sections 63 and 64 of the Financial Administration Act and $3 billion,

(ii) $100, and

(iii) the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (a);

(c) for the 2008 taxation year, to be replaced by the amount that is the total of

(i) an amount that results in a reduction in personal income tax for all taxpayers, based on tax returns filed for the 2007 taxation year, that is equal to the difference between the amount that would, but for the amount that yields the reduction, be the annual surplus as provided in the Public Accounts for the fiscal year 2006-2007 prepared in accordance with sections 63 and 64 of the Financial Administration Act and $3 billion,

(ii) $400, and

(iii) the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (b);”

 

The question was put on the amendment of Monte Solberg and it was negatived, by a show of hands: YEAS: 4; NAYS: 7.

 

Clause 5 carried.

 

Clauses 6 to 8 inclusive carried severally.

 
John McKay moved, — That Bill C-43, in Clause 9, be amended by replacing lines 2 to 8 on page 7 with the following:

“for a taxation year is

(a) if the taxable capital employed in Canada of the corporation for the taxation year is equal to or less than $50,000,000 , that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year; and

(b) if paragraph (a) does not apply, the percentage determined by the formula

A + B[(C - $50,000,000)/$25,000,000]

where

A is that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,

B is that proportion of 4% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year; and

C is the lesser of $75,000,000 and the taxable capital employed in Canada of the corporation for the taxation year.

(3) For the purpose of subsection (2), the taxable capital employed in Canada of a corporation for a particular taxation year is

(a) if the corporation is associated with one or more other corporations in the particular taxation year, the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation, or of such an associated corporation, for its last taxation year that ended in the calendar year preceding the calendar year in which the particular taxation year ends; and

(b) if the corporation is not associated with one or more other corporations in the particular taxation year, the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation for the particular taxation year.”

 

After debate, the question was put on the amendment of John McKay and it was negatived, by a show of hands: YEAS: 5; NAYS: 6.

 

Clause 9 carried by a show of hands: YEAS: 6; NAYS: 5.

 

By unanimous consent, Clauses 10 to 29 inclusive carried.

 

On Clause 29.1,

Yvan Loubier moved, — That Bill C-43 be amended by adding before line 14 on page 31 the following new clause:

29.1 Subparagraphs 24.4(1)(a)(iii) to (v) of the Act are replaced by the following:

(iii) $10.292 billion for the fiscal year beginning on April 1, 2005,

(iv) $12.734 billion for the fiscal year beginning on April 1, 2006, and

(v) $16.383 billion for the fiscal year beginning on April 1, 2007; and”

 

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on page 655 of House of Commons Procedure and Practice.

 

On Clause 30,

Yvan Loubier moved, — That Bill C-43, in Clause 30, be amended by replacing lines 1 to 3 on page 32 with the following:

“learning and child care”

 

After debate, the question was put on the amendment of Yvan Loubier and it was negatived, by a show of hands: YEAS: 3; NAYS: 6.

 

On Clause 30,

Yvan Loubier moved, — That Bill C-43, in Clause 30, be amended by adding after line 3 on page 32 the following:

“(1.1) The Minister shall provide full financial compensation, unconditionally, to any province whose government has already established a day care network or has notified the Minister of Social Development that it intends to establish, develop or improve a day care network in the province.”

 

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on page 655 of House of Commons Procedure and Practice.

 

Clause 30 carried on division.

 

Clause 31 carried on division.

 

On Clause 32,

Monte Solberg moved, — That Bill C-43, in Clause 32, be amended by replacing line 7 on page 33 with the following:

trust indenture establishing the trust and shall be the same for every territory.

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived, by a show of hands: YEAS: 4; NAYS: 7.

 

Clause 32 carried on division.

 

By unanimous consent, Clauses 33 to 58 inclusive carried.

 

On Clause 59,

Monte Solberg moved, — That Bill C-43, in Clause 59, be amended by adding after line 34 on page 42 the following:

(3) The sums referred to in subsections (1) and (2) may be paid and applied only if there is an agreement between the Minister of the Environment or the Minister of Natural Resources, as the case may be, and the Federation of Canadian Municipalities requiring the Federation to apply half of those sums for the clean-up of abandoned or idle lands, known as brownfields, where environmental contamination is known or suspected and where there is an active economic potential for redevelopment.

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived, by a show of hands: YEAS: 4; NAYS: 7.

 

By unanimous consent, Clauses 59 to 84 inclusive carried on division.

 

On Clause 85,

John McKay moved, — That Bill C-43, in Clause 85, be amended by replacing, in the English version, line 12 on page 53 with the following:

“conditions approved by the Treasury”

 

After debate, the question was put on the amendment of John McKay and it was agreed to on division.

 

By unanimous consent, Clause 85 was allowed to stand.

 
John McKay moved, — That Bill C-43, in Clause 86, be amended by

(a) replacing lines 23 to 27 on page 53 with the following:

“86. (1) The Minister of State (Infrastructure and Communities) shall not make a payment to a province, territory or first nation under section 85 unless the Government of Canada has entered into an agreement with”

(b) adding after line 29 on page 53 the following:

(2) The Minister of State (Infrastructure and Communities) may, at the request of a provincial or territorial government, make payments under section 85 directly to a municipality, a municipal association or a provincial, territorial or municipal entity.

 

After debate, the question was put on the amendment of John McKay and it was agreed to on division.

 

On Clause 86,

Yvan Loubier moved, — That Bill C-43, in Clause 86, be amended by replacing line 29 on page 53 with the following:

nation, while fully respecting the exclusive jurisdiction of the provinces. For greater certainty, no bilateral agreement shall affect the legitimate right of a province, territory or first nation to fully administer and dispose of the use and allocation of the payments made by the Minister under section 85. The Minister shall not impose any national standard or any requirement for accountability to the Government of Canada without the explicit agreement of the recipient province, territory or first nation.

 

The Chair ruled the proposed amendment inadmissible because it was beyond the scope of the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

Clause 86, as amended, carried on division.

 

By unanimous consent, the Committee reverted to Clause 85 previously stood.

 

Clause 85 carried on division.

 
John McKay moved, — That Bill C-43, in Clause 87, be amended by replacing, in the French version, line 10 on page 60 with the following:

“ject Royalty Agreement conclu le 1er”

 

After debate, the question was put on the amendment of John McKay and it was agreed to on division.

 
John McKay moved, — That Bill C-43, in Clause 87, be amended by replacing, in the French version, line 14 on page 60 with the following:

“Neuve-et-Labrador la somme de deux milliards“

 

After debate, the question was put on the amendment of John McKay and it was agreed to on division.

 

On Clause 87,

John McKay moved, — That Bill C-43, in Clause 87, be amended by replacing, in the French version, line 19 on page 62 with the following:

“ges après-emploi, de même qu’aux frais”

 

After debate, the question was put on the amendment of John McKay and it was agreed to on division.

 

Clause 87 carried on the following recorded division: YEAS: Rona Ambrose, Don H. Bell, Charles Hubbard, John McKay, Maria Minna, Brian Pallister, Charlie Penson, Monte Solberg — 8; NAYS: Guy Côté, Yvan Loubier — 2.

 

Clause 88 carried on division.

 

On Clause 89,

Yvan Loubier moved, — That Bill C-43, in Clause 89, be amended by adding after line 15 on page 66 the following:

2.1 For greater certainty, nothing in this Act limits or affects, expressly or implicitly, the power of a province to provide incentives for the reduction or removal of greenhouse gases through the acquisition, on behalf of the province, before or after they are created, of eligible credits created as a result of the reduction or removal of those gases by any means established by the province.”

 

After debate, the question was put on the amendment of Yvan Loubier and it was agreed to.

 

On Clause 89,

Monte Solberg moved, — That Bill C-43, in Clause 89, be amended by replacing lines 11 and 12 on page 67 with the following:

“make orders under section 3 and the power to”

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived.

 

On Clause 89,

Monte Solberg moved, — That Bill C-43, in Clause 89, be amended by replacing line 18 on page 67 with the following:

“domestic credits created as a result of the reduction or”

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived.

 

On Clause 89,

Monte Solberg moved, — That Bill C-43, in Clause 89, be amended by adding after line 19 on page 68 the following:

“(3.1) The Minister shall publish the advice given under subsection (2) within five days after receiving it from the advisory board.”

 

John McKay moved, — That the motion be amended by replacing the words “5” with the word “30”.

 

After debate, the question was put on the motion, as amended, and it was agreed to.

 

After debate, the question was put on the amendment of Monte Solberg, as amended, and it was agreed to.

 

On Clause 89,

Monte Solberg moved, — That Bill C-43, in Clause 89, be amended by adding after line 7 on page 69 the following:

“(2) Despite subsection (1), the Agency may not acquire eligible Kyoto units.”

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived.

 

On Clause 89,

Monte Solberg moved, — That Bill C-43, in Clause 89, be amended by deleting lines 23 to 30 on page 69.

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived.

 

On Clause 89,

Yvan Loubier moved, — That Bill C-43, in Clause 89, be amended by adding after line 40 on page 71 the following:

“TRANSFER TO A PROVINCE

25.1 The Government of Canada shall transfer without condition to a province, within thirty days after receiving a request from the province to do so, an amount determined by multiplying the amount provided to the Agency by the quotient obtained by dividing the population of the province by the total population of all provinces. Once the request has been received, this Act no longer applies to the province that has sent it.”

 

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on page 655 of House of Commons Procedure and Practice.

 

Clause 89, as amended, carried on division.

 

Clause 90 carried on the following recorded division: YEAS: Rona Ambrose, Don H. Bell, Charles Hubbard, John McKay, Maria Minna, Brian Pallister, Charlie Penson, Monte Solberg, Judy Wasylycia-Leis — 9; NAYS: Guy Côté, Yvan Loubier — 2.

 

By unanimous consent, Clauses 91 to 97 inclusive carried on division.

 

On Clause 98,

Monte Solberg moved, — That Bill C-43, in Clause 98, be amended by replacing line 2 on page 76 with the following:

“solidated Revenue Fund, after consulting with the standing committee of the House of Commons that normally considers matters related to the environment, make grants or con-”

 

After debate, the question was put on the amendment of Monte Solberg and it was negatived.

 

On Clause 98,

Monte Solberg moved, — That Bill C-43, in Clause 98, be amended by adding after line 13 on page 76 the following:

“(d) any recommendations made by the standing committee of the House of Commons that normally considers matters related to the environment.”

 

After debate, the question was put on the amendment of Monte Solberg and it was agreed to.

 

On Clause 98,

Monte Solberg moved, — That Bill C-43, in Clause 98, be amended by replacing line 29 on page 76 with the following:

“paragraphs 6(2)(a) to (d).”

 

After debate, the question was put on the amendment of Monte Solberg and it was agreed to.

 

On Clause 98,

Monte Solberg moved, — That Bill C-43, in Clause 98, be amended by adding after line 29 on page 76 the following:

“(2.1) The Minister shall publish the advice given under subsection (2) within five days after receiving it from the advisory board.”

 

John McKay moved, — That the motion be amended by replacing the word “5” with the word “30”.

 

After debate, the question was put on the motion and it was agreed to.

 

After debate, the question was put on the amendment of Monte Solberg, as amended, and it was agreed to.

 

On Clause 98,

Monte Solberg moved, — That Bill C-43, in Clause 98, be amended by replacing line 1 on page 78 with the following:

“(5) The maximum”

 

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on page 655 of House of Commons Procedure and Practice.

 

On Clause 98,

Monte Solberg moved, — That Bill C-43, in Clause 98, be amended by replacing lines 6 and 7 on page 78 with the following:

“be used by an eligible contributor and that eligible”

 

The question was put on the amendment of Monte Solberg and it was negatived.

 

The Chair ruled the proposed amendment inadmissible because it was contrary to the principle of the Bill, as provided on page 654 of House of Commons Procedure and Practice.

 

Clause 98 was negatived on the following recorded division: YEAS: Don H. Bell, John McKay, Maria Minna, Judy Wasylycia-Leis — 4; NAYS: Rona Ambrose, Guy Côté, Yvan Loubier, Brian Pallister, Charlie Penson, Monte Solberg — 6.

 

The Vote on Clause 98 applied to Clauses 99 and 100.

 

At 5:28 p.m., the Committee adjourned to the call of the Chair.

 



Richard Dupuis
Clerk of the Committee

 
 
2005/06/15 2:57 p.m.