BILL C-389

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

DEFINITIONS

(a) fishing or processing or transporting fish from fishing grounds; or

(b) taking, processing or transporting marine plants.

PURPOSE

(a) through the establishment of a program whereby a maximum of 87.5% of the money borrowed by a company from financial institutions to purchase a commercial ship that will be built in a shipyard located in Canada

(i) is guaranteed by the federal government in the event of default in the repayment of the loan,

(ii) bears a rate of interest comparable to that available for loans from financial institutions to large and financially strong corporations, and

(iii) is repayable on terms comparable to those usually granted by financial institutions to large and financially strong corporations for the repayment of their loans;

(b) by amending the provisions of the Income Tax Act and the Income Tax Regulations to improve the tax treatment of lease financing for the purchase of a ship built in a Canadian shipyard; and

(c) subject to subsection (2), by amending the provisions of the Income Tax Act and the Income Tax Regulations to allow a refundable tax credit for a portion of the costs relating to the construction or refit of a commercial ship in a shipyard located in Canada or the conversion of a ship in such a shipyard

(i) to the shipowner for the construction of a Canadian ship, or

(ii) to the shipyard owner for the construction of a foreign ship.

REGULATIONS