15 ways to use a 450-page federal budget bill
The government's omnibus budget bill goes far beyond typical tax and spending measures
By Meagan Fitzpatrick, CBC News
Posted: May 23, 2012 5:10 AM ET
Last Updated: May 23, 2012 1:49 PM ET
The Conservatives' spring budget made headlines two months ago with plans to save billions by cutting public sector jobs, speed up major industrial projects by streamlining environmental reviews and kill the penny.
But details of those and many other changes are still trickling out as Parliament picks apart the legislation meant to implement the budget's promises.
Bill C-38 goes beyond tax and monetary measures to make major changes in dozens of policy areas, including the environment, natural resources and human resources. It seeks to amend or create dozens of laws, while repealling others entirely, and has been called an omnibus bill as a result.
The opposition is incensed with the size and scope of the bill. The NDP tried — unsuccessfully — to negotiate with the government to split it into smaller bills.
Finance Minister Jim Flaherty says it's big because it was a big budget and the measures are needed to create jobs and grow the economy.
The opposition parties say they shouldn't be asked to vote on legislation that lacks specifics and grants cabinet the power to make regulatory changes.
Bill C-38 has passed second reading and is now being studied by several Senate committees and the House of Commons finance committee, while a finance subcommittee is set to study the environmental review changes.
Here's a look at some of the measures in the bill's 400-plus pages. It's not an exhaustive list, so be warned: there will be another budget bill in the fall.
The government wants a "one project, one review" environmental assessment system, so it is repealing the Canadian Environmental Assessment Act and replacing it with the Canadian Environmental Assessment Act, 2012. It allows the federal government to designate an assessment to another jurisdiction, such as a province, and for another jurisdiction's assessment to substitute for a federal one. It sets out time limits for the completion of reviews and the minister will have the power to shut down a review panel if he thinks it won’t finish on time.
E-I, E-I – oh? 'Suitable work?'
Employment insurance claimants are required to demonstrate they are actively seeking "suitable work" in order to receive payments. C-38 removes definitions of "suitable work" from the Employment Insurance Act and gives the federal cabinet the power to create new regulations about what constitutes suitable work and reasonable efforts to find work. The budget bill gives no details about what the new criteria will be. It also makes changes to how payments are calculated, to pay claimants based on their "best 14 weeks" of employment.
Lighter load for the auditor general
Auditor General Michael Ferguson will no longer be required to annually audit several agencies, including the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Northern Pipeline Agency and the Canadian Polar Commission. The agencies must submit annual financial reports to the minister instead. Finance Minister Jim Flaherty says this move was made at the request of the auditor general.Auditor General Michael Ferguson will have a lighter load once the budget bill passes because it removes the requirement for him to audit certain government agencies and councils. (Sean Kilpatrick/Canadian Press)
Charity rule changes
C-38 proposes amendments to the Income Tax Act's rules around political activities of charities. Charities aren't supposed to spend more than 10 per cent of their budgets on political advocacy. Under C-38, donating to a charity could be considered a political activity if the donation can "reasonably be considered" to be for the sole purpose of supporting political activities. So, if one charity gives money to another charity for political purposes, it would count toward the donor's 10 per cent limit, not just the recipient's total. It also gives the minister of national revenue the power to withhold tax receipts from a charity or association if it devotes resources to political activities in excess of the limits.
Backlogged immigration applications eliminated
Among the amendments to the Immigration and Refugee Protection Act is a move to wipe out a backlog of 280,000 applications under the Federal Skilled Worker Program. Applications made before 2008 would be deleted and the application fee refunded.
Legislation currently protects fish habitats that are defined as "spawning grounds and nursery, rearing, food supply and migration areas on which fish depend directly or indirectly in order to carry out their life processes." Bill C-38 would instead protect fish based on their use: bodies of water that support commercial, recreational and aboriginal fisheries or fish that support such fisheries. It rewrites the Fisheries Act's rules against work that can cause the destruction of a fish habitat. The bill also would allow the federal government to transfer Fisheries Act responsibilities to a province with equivalent laws.
Mini tax breaks
There is some good tax news in the budget bill. It expands the list of goods and services free of GST and HST, adding some prescription drugs and more medical devices to currently exempt items like false teeth and hearing aids. The bill would also allow literacy organizations to claim a GST rebate or the federal component of HST paid on books they give away for free.
The GG gets a raise and a tax return
The bill increases Gov. Gen. David Johnston's salary from $137,500 to $270,602 starting on Jan.1, 2013 — but he's no longer exempt from paying income tax. His salary was hiked to offset the taxman's bite.Gov. Gen. David Johnston is getting a raise in the budget implementation bill, but he's no longer off the hook with the Canada Revenue Agency and will have to start paying income tax. (Fred Chartrand/Canadian Press)
A new cross-border law
The budget bill creates a new law to implement the Framework Agreement on Integrated Cross-Border Law Enforcement Operations that was signed between Canada and the United States in 2009. It applies to joint operations between authorities in both countries on the seas.
Bye-bye at the spy agency
The budget bill scraps the office of the inspector general at the Canadian Security Intelligence Service. The office is meant to be the public safety minister's eyes and ears overseeing CSIS. It also makes other changes on how CSIS reports to the minister.
Bill C-38 shuts down several government-funded groups and agencies, including the National Council of Welfare, the Public Appointments Commission, Rights and Democracy, the National Roundtable on the Environment and the Economy, the Canadian Artists and Producers Professional Relations Tribunal and Assisted Human Reproduction Canada.
It creates a new Social Security Tribunal to hear appeals of decisions made on Old Age Security, employment insurance and other benefit programs, and creates the new Shared Services Canada Department.
Not a penny moreThe government announced in the March budget that the penny will no longer be made and the last ones were produced in early May. Don't fear, however, the budget implementation bill will allow you to keep using the ones stored in your piggy banks as legal tender. (John Woods/Canadian Press)
The government is phasing out the penny but is changing the law so pennies can still be used as legal tender even though they are being removed from circulation. The current law says a coin that's been "called in" is not legal tender.
See ya SIN cards
The government wants to phase out the plastic card that displays your social insurance number, and Bill C-38 makes the necessary changes to existing laws so it is no longer required. Canadians will still have SINs, they just won't be carried on a plastic card.
Older Age Security
The age of eligibility for OAS will rise gradually to 67 from 65 starting in 2023. C-38 lays out a complicated chart showing how that change will be phased in.
- For The Record: Federal Court ruling on robocalls and electoral fraud by Kady O'Malley May. 23, 2013 9:16 PM Read the full decision here.
Top News Headlines
- Toronto Mayor Rob Ford fires chief of staff
- A week after bombshell allegations that Toronto Mayor Rob ford was videotaped smoking crack, the mayor's chief of staff was fired and Ford is continuing to stonewall reporters. more »
- Federal Court won't remove MPs over robocall allegations
- The Federal Court says it won't throw six MPs out of their seats over allegations of widespread vote suppression through automated robocalls in the 2011 federal election. more »
- Alleged Ford crack video seller not responding to calls
- The journalist who broke the story alleging Toronto Mayor Rob Ford was recorded on video smoking crack cocaine says he may never be able to get his hands on the evidence. more »
- 2nd suspect in Tim Bosma murder case to plead not guilty
- The lawyer for Mark Smich says the Oakville, Ont., resident will plead not guilty to first-degree murder in the death of Tim Bosma, the Hamilton man who disappeared earlier this month after taking two men on a test drive of his truck. more »
Latest Politics News Headlines
- Duffy says he wants to give Canadians 'the whole story'
- Senator Mike Duffy says he wants a "full and open" inquiry so Canadians can get all the facts about the scandal that has rocked the Senate and the Prime Minister's Office and that he has no plans to resign. more »
- PMO refutes claim of no new appointments until Senate reform
- A senior Conservative MP said Thursday that the prime minister will not be appointing senators until there is "substantial reform" to the Senate — but a spokesman for Stephen Harper swiftly contradicted the claim, saying the preference remains appointing elected senators. more »
- Duffy expense claims reveal more about campaign travel
- Election spending records show additional days Senator Mike Duffy spent on the campaign trail in the 2011 election, including days he told the Senate he was on business, and days on which Deloitte auditors couldn't track him. more »
- 'Mistaken' Duffy asked Senate committee how much he owed
- Letters between Senator Mike Duffy and Senator David Tkachuk, head of the committee looking into his expenses, reveal that Duffy was at times an active participant in the committee's investigation. more »
- Questions mount for Harper and chief of staff Nigel Wright in Senate scandal May. 18, 2013 1:15 PM This week on The House, with Senators Wallin and Duffy now out of the Conservative caucus, we get reaction from NDP Ethics critic Charlie Angus. We also hear directly from Senator Patrick Brazeau who says the Conservatives have thrown him under the bus. Plus we speak with B.C. Premier Christy Clark after her stunning victory.
- Toronto Mayor Rob Ford fires chief of staff
- 2nd suspect in Tim Bosma murder case to plead not guilty
- 2 more arrests linked to hacking death of British soldier
- Duffy says he wants to give Canadians 'full story'
- Vancouver man abandons Porsche on B.C. ferry
- Chained-teen's mom wants man who pleaded guilty 'to suffer'
- B.C. teen saves pet dog in 'terrifying' cougar attack
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Montreal boil-water advisory to end no earlier than 10 p.m.