22 changes in the budget bill fine print

Finance Minister Jim Flaherty told the House of Commons last ThursdayMPs would know what was in the Harper government'ssecond omnibus budget implementation billif onlythey hadread the budget last March.

It's true that Flaherty'smedia event on the day the bill was tableddid feature the extension of asmall business-friendly hiring tax creditthat washeavilymarketed around last spring's budget. A dozen ormore other tax changesare also featured in the first section of C-45.

Althoughit hasmore pages than the firstomnibus budget bill last spring, some of the changes this time are more technical and incremental.

Nevertheless, there's afair bit for MPs to review, includingthings they weren'texpecting inside the Tories' second doorstopper.

Here'smore about what's inthe fine print:

Public service pension changes

On Friday, the Harper government sought and receivedunanimous consent to split C-45, hiving off the section of the bill that dealt with MP pension reformsand passing those clauses unanimously in a new bill, C-46.

But the public sector pension changes first revealed in last March's federal budget remain part of C-45.

Federal public servants hired after Jan. 1, 2013 will become eligible for their pensions later (age 65 instead of 60) andwill have to contribute more to theirplans with changesphased inover the next five years: eventually, the employer (taxpayers) and employees will split the costs 50-50.

Three differentActs thatcover the federal public service, the RCMP and the Canadian Forces pension plans are all changing. However,it's not known whether they're all changing on the same timeline, or to the same extent.

For theCanadian Forces pension plan, thedefence department says the changes "are currently under consideration with Treasury Board" and "the intent is to increase the rates towards a 50-50 cost sharing model."

But because the changes to the military's pensionplan are still "under consideration," defence spokesperson writes, "it would be inappropriate to speculate on precise ratios at this time."

Anotherofficial suggested costs for the military's plan may not be shared in an even 50-50 split.Nevertheless, the rank and file of the Canadian Forces will see their pension contributions increase over a five-year period, like those for other federal civil servants.

It's unclear whether Canadian Forces members will also become eligible for their pensions at a later age. One official suggested the age of retirement changes in the other plans do not affect military pensions.

3 more environmental measures

The first omnibus budget legislation last spring madesubstantial environmental changes. There's nothing quite that broad this time, but the Harper government is again using omnibus legislation for environmental measures that wouldn't normally be expected in a budget bill.

• Navigation Protection Act:The former Navigable Waters Protection Act changes more than just its name, asmajor pipeline and interprovincial power line projects become exemptfrom earlier requirements that would have forced proponents to prove they wouldn't damage or destroy navigable waterways in Canada. Aschedule attached to the omnibus billprovides a list of federally-protected waters.Lakes or rivers not on this list are no longer protected by this Act.
• Fisheries Act: The second omnibus budget bill actually amends thefirst omnibus budget bill's changes to the Fisheries Act. Among the changes this time: a redefinition of the term "Aboriginal fishery," one of three types of fisheries (along with commercial and recreational) that mustexist for a particular waterwayto be subject to fisheries protections. The fisheries department saysitwas necessary to adjust the definition to make it consistent with one used in land claim agreements. C-45 also changes the administration of the Environmental Damages Fund, which collects fines for Fisheries Act violations. In the future, the money will be spent to"further enhance the conservation and protection of Canada's fisheries resources."
• Environmental Assessment Act: The March federal budget alsooverhauled the environmental assessment process, and details were found in the first omnibus bill. The second bill tweaks things further with "technical amendments," including amending a "transitional provision" to make the new rules apply todesignated projectsthat would have requiredan environmental assessmentunder the old rules.

Cut: one Crown corporation, one agency and one board

C-45 continues the process of downsizing the federal government and eliminating bodies no longer deemed useful by the government. In each of these cases, authority that previously rested with independent bodies will move to a specific cabinet minister:

• Canada Employment Insurance Financing Board: A Crown corporation run by a seven-member board establishedby the Conservatives only four years agothatsets EI premium ratesand supervises EI funds is being eliminated. An "interim" means of setting premiums willreplace it. The change is part of the Harper government'soverall transfer ofcontrol over EI to cabinet.
• Hazardous Materials Information Review Commission:The arms-lengthagency responsible for scientific regulations around what substances aredeemedhazardous will be eliminated and its authoritytransferred to the health minister. The commission alsoconvenes independent, tripartite boards to evaluate the scientific evidence presentedin appeals of these regulatory decisions.
• Merchant Seamen Compensation Board:The three-person board that hears and decides benefit claims for merchant seamen injured or disabled on the job who are not covered by provincial workers' compensation benefits willsee its authority transferred to the labour minister.

Pay raises for judges

The Judges Act sets the remunerationfor Canadian judges, including those on the Supreme Court, Federal Court, Federal Court of Appeal and provincial and territorial Superior Courts. Salaries in the Act have not been amended since 2006, however they have been revised upward for each year since.

Judicial salaries are automatically adjusted every April1based on Statistics Canada's measurement of the yearly percentage change in average wages and salaries across the country.

Bill C-45 enshrines in legislation salary increases that are24 per cent higher than what judgesreceived in 2006.

The new salaries, effective April 1, 2012, following recommendations from the (independent) Office of the Commissioner for Federal Judicial Affairs Canada:

• Chief Justice of Canada:$370,300 (in 2006 was $298,500).
• OtherSupreme Court Justices: $342,800 (was $276,400).
• Chief Justices of the Federal Court andFederal Court of Appeal: $315,900(was $254,600).
• Otherjudges onFederal Court and Federal Court of Appeal: $288,100 (was $232,300).
• other salaries for the Tax Court of Canada, and each province's Court of Appeal and Superior Courtalso increase by the same proportion.

There is no longer a direct link between judicial salaries and those of MPsand Senators.

Indian Act changes

In addition to changing the definition of "Aboriginal fishery" in the Fisheries Act (above), there are changes to the Indian Act itself, designed to make it faster and easier for First Nations to "take advantage of economic opportunities," according to a government official.

The amendments would allow First Nations communitiesto lease designated reserve lands based on amajority of votesfrom those in attendance at a meeting orin a referendum, instead of waiting for a majority vote from all eligible voters. The onus would be on the First Nation membersto turn out if they wanted to have a say.

The aboriginal affairs minister would be given the authority to call a band meeting or referendum for the purpose of considering a surrender of the band's territory. The minister could also accept or refuse the land designation after receiving a resolution from the band council.

Windsor's bridge-building

Last June in Windsor, Prime Minister Stephen Harper announce the federal government's support forthe construction of anew bridge across the Detroit River. Fears remain that regulatory concerns or lawsuits frombridge opponentscouldblockor delay its construction.

The government is usingC-45 to enact a Bridge to Strengthen Trade Act to facilitate its speedy progress: changing somelegislationand exempting this bridge from other Acts which would have otherwise applied, including the Environmental Assessment Act, Fisheries Act, Navigable Waters Protection Act (which is being amended too, see above), and the Species at RiskAct.

More 'freedom' for grain farmers

The last review of the Canada Grain Act was in the 1990s.The grain industryfelt regulationswere not keeping up withhow farmers and grain companiesdo business. C-45amends theGrain Act in several ways:

• ending "inward inspection," the practice of inspecting every railcar of grainas it's unloaded, even though grain is often shipped from an elevator to a terminal both owned by the same company. Canadian Grain Commission inspectors and grain company staff will no longer duplicate their efforts by inspecting the same shipments.
• allowing different types of security to be usedfor shipments,rather than being limited to the single option of bonding.
• simplifying the classification of grain terminals.
• allowing third parties to weigh and inspect grain and providing recourse if this is not done properly.
• repealing grain appeal tribunals.
• giving the Canadian Grains Commission more power to regulate the industry.

Following the end of the Canadian Wheat Board's sales monopoly this year, the Commission will start to imposecost recovery fees on grain farmersnext fall to pay for the new services it provides. Some of these above changes are intended to reduce the Commission's operating costs in advance of the calculation of the new fees.

Even finer, fine print

There are many more changes in C-45, including:

• Immigration and Refugee Protection Act amendments,to prepare for changes in electronic travel authorization in accordance with the Canada-U.S. "perimeter plan"on cross-border traffic and trade.
• Canada Mortgage and Housing Corporation Act amendments to remove the age limit for people from outside the federal public service being appointed or continuing as president or director of CMHC.
• Canada Shipping Act regulatory changes,including allowing third parties acting on the transport minister's behalf to set their own fees for services.
• Bretton Woods and Related Agreements Actupdates to reflect recent International Monetary Fund reforms.
• Measures to implementthe Harper government's newly-passedPooled Registered Pension Plans.
• Measures to implement new pension income-splitting arrangements.
• New rules for the financial services sector for the administration of the GST/HST.
• New tax-sharing arrangements with the provinces and territories for specified investment flow-through (SIFT) entities and employee profit sharing plans (EPSPs.)
• Amendments to allow public sector investment pools to invest in federally-regulated financial institutions.
• Canada Pension Planamendments based on its most recent triennial review, giving more authority to the Review Tribunal and Pension Appeals Board.
• Changes to Registered Disability Savings Plans and the taxation of employee health benefits and profit-sharing plans