FINA Committee Meeting

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MINUTES OF PROCEEDINGS

Meeting No. 72

Tuesday, March 20, 2007

The Standing Committee on Finance met in a televised session at 11:06 a.m. this day, in Room 237-C, Centre Block, the Chair, Brian Pallister, presiding.

Members of the Committee present: Dean Del Mastro, Rick Dykstra, Hon. John McCallum, Hon. John McKay, Massimo Pacetti, Brian Pallister, Pierre A. Paquette, Thierry St-Cyr, Hon. Robert Thibault and Mike Wallace.

Acting Members present: Robert Carrier for Pierre A. Paquette, Patricia Davidson for Dean Del Mastro, Brian Masse for Judy Wasylycia-Leis, Gary Merasty for Hon. John McCallum, Denise Savoie for Judy Wasylycia-Leis and Merv Tweed for Diane Ablonczy.

In attendance: Library of Parliament: Alexandre Laurin, Analyst . House of Commons: Marc Toupin, Legislative Clerk.

Witnesses: House of Commons: Hon. Dan McTeague, Pickering—Scarborough East; Jeff Watson, Essex. Canadian Association of Retired Persons: William Gleberzon, Associate Executive Director. Canadians Asking for Social Security Equality : Bill Trasher, Spokesperson. Department of Finance: Andrew Auerbach, Tax Policy Officer, Corporate and International Tax, Tax Legislation Division, Tax Policy Branch; Yves Gingras, Chief, Employment and Education, Personal Income Tax Division, Tax Policy Branch; Glen Bradburry, Executive Assistant, Honourable Dan McTeague.

Pursuant to the Order of Reference of Wednesday, November 8, 2006, the Committee resumed consideration of Bill C-253, An Act to amend the Income Tax Act (deductibility of RESP contributions).

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

The Chair called Clause 1.

Clause 1 carried.

On Clause 2,

Thierry St-Cyr moved, — That Bill C-253, in Clause 2, be amended

(a) by replacing lines 10 to 28 on page 1 and lines 1 to 30 on page 2 with the following:

“2. (1) The definition “RESP annual limit” in subsection 146.1(1) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(d) for 2006, $5,000, and

(e) for 2007 and subsequent years, the total of the RESP annual limit for the preceding taxation year and the product obtained when the RESP annual limit is multiplied by the average percentage change in the Consumer Price Index for the year in question, published by Statistics Canada under the authority of the Statistics Act;”

(b) by replacing lines 1 to 13 on page 3 with the following:

“(a) the total of all contributions made by the taxpayer into a registered education savings plan in the taxation year; and

(b) the RESP annual limit for the taxation year.”

Debate arose thereon.

At 12:05 p.m., the Chair ruled that the time the Committee had set aside to consider Bill C-253 in this meeting had expired.

Whereupon, John McKay appealed the decision of the Chair. The question: "Shall the decision of the Chair be sustained?" was put and the decision was overturned, by a show of hands: YEAS: 5; NAYS: 6.

After debate, the question was put on the amendment of Thierry St-Cyr and it was agreed to, by a show of hands: YEAS: 7; NAYS: 4.

Clause 2, as amended, carried on division.

After debate, Clause 3 was negatived.

The Title carried on division.

The Bill, as amended, carried on the following recorded division: YEAS: Robert Carrier, John McKay, Gary Merasty, Massimo Pacetti, Thierry St-Cyr, Robert Thibault — 6; NAYS: Dean Del Mastro, Rick Dykstra, Denise Savoie, Merv Tweed, Mike Wallace — 5.

ORDERED, — That the Chair report the Bill, as amended, to the House.

ORDERED, — That Bill C-253, as amended, be reprinted for the use of the House at report stage.

The witnesses made statements and answered questions.

Pursuant to the Order of Reference of Monday, December 4, 2006, the Committee commenced consideration of Bill C-305, An Act to amend the Income Tax Act (exemption from taxation of 50% of United States social security payments to Canadian residents).

The witnesses made statements and answered questions.

At 1:07 p.m., the Committee adjourned to the call of the Chair.

Elizabeth B. Kingston
Clerk of the Committee

2007/03/21 3:57 p.m.