The legislation could also spark another high-stakes political showdown, with opposition parties vowing to fight it as they did with Bill C-38, should the government look to once again stuff it full of controversial changes.
Finance Minister Jim Flaherty has already promised the second bill coming in the fall will have "quite a bit" in it and that "it will be another serious bill."
"The fall bill will include outstanding legislative items from Economic Action Plan 2012," Mary Ann Dewey-Plante, Flaherty's press secretary, said Wednesday in an email.
A number of items mentioned in the March fiscal blueprint never made it into the first budget legislation, so they're expected to be included in the second bill.
The federal budget proposed changes to the public service pension plan that would, over time, force federal workers to increase their contributions to 50 per cent and equal those of the employer. Currently, employees pay about 40 per cent of the total cost and the government covers approximately 60 per cent.
Moreover, the Conservative government is also proposing to increase the normal age of retirement for new federal workers to 65 from the current 60, beginning in 2013, which would affect a number of benefits for civil servants.
Yet, despite the announced changes to public service pensions, the only mention in the budget about the lucrative pension plan for MPs and senators is that "adjustments" will take effect in the next Parliament.
Members of Parliament are eligible to collect full pension benefits at age 55, if they sit in the House of Commons for six years or longer. Qualified MPs currently serving will be eligible to collect an average pension of nearly $55,000 a year in 2015, according to a recent report from the Canadian Taxpayers Federation.
The spending watchdog says citizens cough up about $23 for every dollar MPs and senators contribute to the "gold-plated" parliamentary pension plan.
The budget also highlighted the government's corporate asset management review, noting there are "a number of potential outcomes from this process that may be adopted . . . and even possibly divestment."
The federal government has already been considering privatizing some of Via Rail's longer and most scenic routes. The Crown corporation passenger rail service announced Wednesday approximately 200 layoffs and reduced schedules due to budget cuts.
Emboldened opposition parties say they're willing to adopt the same tactics on the second bill as they used on C-38 — including introducing hundreds of amendments and subsequent votes in the Commons if necessary — in hopes of sending a message to the government and Canadians.
"We hope they put a little water in their wine," NDP House leader Nathan Cullen said Wednesday. "We now know the tools available. We'll only get better at it. We're absolutely ready for the fight again."
Cullen believes the Conservatives overstepped their bounds on C-38 by including hundreds of changes into one sweeping piece of legislation. He said he'll be "taken aback" if the government tries the same tactics once more.
Fall budget implementation bills traditionally include a number of tax measures and this year is expected to be no different, with a series of relatively minor corporate and personal tax changes announced in the fiscal blueprint.
Yet, it's another major tax program of sorts — equalization — that is beginning to draw a lot of attention.
The rules governing Canada's equalization program are up for renewal in 2014. Much like the Conservative government did last winter in announcing a new health accord (which was set to expire in 2014), some observers believe the Tories could — with little notice — announce changes to the equalization program.
The government noted in the budget that federal and provincial officials are completing a review of the technical aspects of equalization.
The Harper government announced in December 2011 that equalization will continue to grow in line with GDP, and federal officials insisted Wednesday that any looming changes to the program from the federal-provincial review will be purely technical adjustments, although they wouldn't elaborate further.
The program, which is funded through general tax revenue collected from all Canadians, transfers dollars to poorer provinces so they can offer reasonably comparable programs and services to those in the wealthier provinces.
Six "have-not" provinces are splitting $15.4 billion in equalization payments in 2012-13: Ontario, Quebec, Manitoba, New Brunswick, Nova Scotia and Prince Edward Island.
Liberal House leader Marc Garneau said his party has certainly heard rumblings the government could be prepared to make changes to an equalization program that some provinces regularly complain about.
Garneau said it's difficult to know what the fall bill will contain, but he argued Canadians were paying attention to the months-long political battle over C-38, which showed their fight was worth the effort.
The Grits will tap exactly the same strategy if they encounter another large bill with controversial changes, he said.
"We did some harm to the government. People have been awakened," he said. "It was an effective strategy."
Original Article
Source: ottawa citizen
Author: Jason Fekete
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