OTTAWA, June 10 /CNW Telbec/ - The Honourable Jim Flaherty, Minister of
Finance, today welcomed the passage of Bill C-50 by the House of Commons. The
legislation will implement key measures from Budget 2008, such as the Tax Free
Savings Account, initiatives to modernize Canada's immigration system,
increase funding for more front line police officers and public transit across
Canada, and increase support for post-secondary students.
"In a time of economic uncertainty, our government is providing
responsible leadership by focussing on our priorities, cutting taxes, and
investing in people, knowledge and communities," said Minister Flaherty. "Bill
C-50 is a balanced, focused, and prudent bill that will strengthen our
economic fundamentals and better position Canada to compete in the highly
competitive global economy."
The key measures in Bill C-50 will:
- Allow Canadians to invest up to $5,000 a year in a new Tax-Free Savings
Account starting in 2009. Investment income earned within the account,
including capital gains, will not be taxed and withdrawals will be tax-
- Modernize the immigration system with a $22-million investment over two
years, growing to $37 million per year by 2012-13, including
legislation to speed up the processing of permanent resident
applications, ensuring shorter wait times and making Canada's
immigration system more competitive.
- Provide $400 million to provinces and territories to recruit 2,500 new
front-line police officers.
- Invest $500 million in 2007-08 through provinces and territories, for
public transit infrastructure.
- Support Canadian students with a $350-million investment in 2009-10,
rising to $430 million by 2012-13, in a new consolidated Canada Student
Grant Program that will reach 245,000 college and undergraduate
students per year when it takes effect in the fall of 2009.
- Commit an additional $123 million over four years starting in 2009-10
to streamline and modernize the Canada Student Loans Program including
expanding online services to enable students to manage their student
loan accounts online.
- Improve the management and governance of the Employment Insurance (EI)
program through the creation of the Canada Employment Insurance
Financing Board, an independent Crown corporation with a legislated
structure which ensures that EI premiums are dedicated exclusively to
the EI program.
- Benefit small and medium-sized businesses by improving the scientific
research and experimental development tax incentive program.
- Invest $60 million per year to ensure that low-income seniors who work
can realize greater benefits from their earnings through an increase in
the Guaranteed Income Supplement earnings exemption.
- Support people in need with $110 million to the Mental Health
Commission of Canada to support innovative projects to help Canadians
facing mental-health and homelessness.
- Build on Canada's knowledge and people advantage in genomics with an
additional $140 million for Genome Canada.
Minister Flaherty highlighted that this year alone the federal government
is injecting $21 billion of stimulus into the Canadian economy as a result of
all its tax measures.
"This is an important piece of legislation that will benefit Canadians in
a number of ways," said Minister Flaherty. "I encourage all Senators to take
the steps necessary to ensure Bill C-50 gets a speedy passage through the
For further information:
For further information: Chisholm Pothier, Press Secretary, Office of
the Minister of Finance, (613) 996-7861; David Gamble, Media Relations,
Department of Finance, (613) 996-8080; www.fin.gc.ca; If you would like to
receive automatic e-mail notification of all news releases, please visit the
Department of Finance website at www.fin.gc.ca/scripts/register_e.asp