Budget Implementation Act, 2018, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 implements certain income tax and related measures by
(a) introducing rules intended to provide greater certainty with respect to various tax consequences arising from certain foreign divisive reorganizations;
(b) ensuring that the existing cross-border anti-surplus stripping rule cannot be circumvented through transactions involving the use of partnerships or trusts;
(c) introducing rules to prevent misuse of the foreign accrual property income regime through the use of tracking interests involving foreign affiliates;
(d) ensuring consistency between the trading or dealing in indebtedness rules and the investment business rules within the foreign accrual property income regime;
(e) ensuring that the at-risk rules apply appropriately at each level of a tiered partnership structure;
(f) providing that the Minister of Public Safety and Emergency Preparedness can determine international operational missions for the purpose of the deduction available for income earned by members of the Canadian Forces or police officers on such missions;
(g) amending the synthetic equity arrangement rules and securities lending arrangement rules to prevent the artificial generation of losses through the use of equity-based financial instruments;
(h) ensuring that social assistance payments under certain programs do not preclude individuals from receiving the Canada Child Benefit;
(i) ensuring that an individual who is eligible to receive the Canada Workers Benefit can receive the benefit without having to claim it;
(j) introducing a refundable tax credit for the purposes of the climate action incentive;
(k) providing allocation rules for losses applied against Part IV taxes;
(l) preventing the creation of artificial losses on shares held as mark-to-market property by financial institutions;
(m) revising the rules relating to the non-partisan political activities of charities;
(n) ensuring that a taxpayer is subject to a three-year extended reassessment period in respect of any income, loss or other amount arising in connection with a foreign affiliate of the taxpayer;
(o) providing the Canada Revenue Agency with an extended reassessment period of an additional three years, to the extent that the reassessment relates to the adjustment of a loss carryback for transactions involving a taxpayer and non-resident non-arm’s length persons;
(p) extending the reassessment period of a taxpayer by the period of time during which a requirement for information or compliance order is contested;
(q) requiring that information returns in respect of a taxpayer’s foreign affiliates be filed within 10 months after the end of the taxpayer’s taxation year;
(r) enabling the disclosure of taxpayer and other confidential tax information to Canada’s bilateral mutual legal assistance treaty partners for the purposes of non-tax criminal investigations and prosecutions of certain serious crimes; and
(s) providing a deduction for employee contributions to the enhanced portion of the Quebec Pension Plan.
Part 1 also amends the Mutual Legal Assistance in Criminal Matters Act to, among other things, define the term “agreement” as applying, among other things, to tax information exchange agreements and tax treaties to which Canada is a party, and provide for orders to produce financial information for the purposes of investigation and prosecution of certain offences set out in subsection 462.‍48(1.‍1) of the Criminal Code. The enactment also amends paragraph 462.‍48(2)‍(c) of the Criminal Code to provide that information may also be gathered under Part IX of the Excise Tax Act and under the Excise Act, 2001.
Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) replacing the requirement that GST/HST be collected on a sale of carbon emission allowances with a requirement that the purchaser self-assess that GST/HST;
(b) extending the assessment period for group registered education savings plan trusts that make a special relieving election in respect of their past HST liability;
(c)  introducing GST/HST rules in respect of investment limited partnerships;
(d) clarifying the intended tax policy of excluding books that are sold by a public service body from the GST/HST rebate for printed books;
(e) introducing amendments similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested; and
(f)  introducing amendments similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes.
Part 3 implements certain excise measures by
(a) broadening the refund regime in respect of excise tax on diesel fuel to allow a vendor to apply for a refund where a purchaser will use excise tax-paid diesel fuel to generate electricity, if certain conditions are met;
(b) introducing an anti-avoidance excise measure relating to the taxation of cannabis in respect of the rules establishing the value of a cannabis product on which an ad valorem duty is calculated;
(c)  introducing amendments to the Air Travellers Security Charge Act and the Excise Act, 2001 that are similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested;
(d) introducing amendments to the Excise Act, 2001 that are similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes; and
(e) making housekeeping amendments to the Excise Act, 2001 in order to ensure consistency between the English and French version of the legislation.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Customs Tariff in order to simplify it and reduce the administrative burden for Canadian businesses and the Government of Canada by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also clarify existing tariff provisions and make other technical amendments.
Division 2 of Part 4 amends the Canada Pension Plan to modify the calculation of the amount to be attributed for a year in which a contributor is a family allowance recipient and their first or second additional contributory period begins or ends.
Subdivision A of Division 3 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things,
(a) establish thresholds below which the acquisition of control of certain entities, or the acquisition or increase of a substantial investment in them, does not require the approval of the Superintendent of Financial Institutions;
(b) allow financial institutions to invest in the Canadian business growth fund; and
(c) ensure that customers can provide consent electronically to receive electronic documents.
It also corrects a reference to the Insurance Companies Act in the Budget Implementation Act, 2018, No. 1.
Subdivision B of Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,
(a) make technical amendments to clarify the method of calculating insured deposits, to remove outdated references, to repeal certain provisions not yet in force and to clarify that withdrawals made following the amalgamation of two or more member institutions or the continuance as a federal credit union will be considered to be made from pre-existing deposits and that the separation of accounts following the amalgamation is limited to a period of two years;
(b) exclude amounts borrowed by the Canada Deposit Insurance Corporation under paragraph 60.‍2(2)‍(c) of the Financial Administration Act from the calculation of the Corporation’s total principal indebtedness; and
(c) clarify that the liquidator of a member institution of the Canada Deposit Insurance Corporation must not apply the law of set-off or compensation to a claim related to insured deposits.
It also repeals two sections of the Financial System Review Act.
Subdivision C of Division 3 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, clarify that providing legally privileged information to the Superintendent of Financial Institutions does not constitute a waiver of the privilege.
Division 4 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to remove the right of persons to decide not to proceed further with importing or exporting currency or monetary instruments that are required to be reported.
Division 5 of Part 4 amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act to, among other things, allow for the application, within the offshore area, of the provincial greenhouse gas pricing regime and to confer powers and impose duties and functions on the Canada–Newfoundland and Labrador Offshore Petroleum Board for the application of that regime. It also amends the Greenhouse Gas Pollution Pricing Act to provide that the provincial regime does not apply if the offshore area is mentioned in Part 2 of Schedule 1 to that Act. Finally, it amends the Offshore Health and Safety Act to postpone the repeal of certain regulations.
Division 6 of Part 4 amends the Canada Business Corporations Act to set out criteria for identifying individuals with significant control over a corporation. The Division also sets out a requirement for a corporation that meets certain criteria to keep a register of individuals with significant control and requirements respecting the information to be recorded in it. Finally, the Division includes applicable offences and punishments.
Subdivision A of Division 7 of Part 4 amends the Patent Act in order to
(a) provide a regulation-making authority for the establishment of requirements for written demands relating to patents;
(b) specify that an act committed for the purpose of experimentation relating to the subject matter of a patent is not an infringement of the patent and that licencing commitments that bind the owner of a standard-essential patent or the holder of a certificate of supplementary protection that sets out such a patent bind any subsequent owners or holders;
(c) expand the rights of a person in respect of a claim in a patent who meets the requirements to be considered a prior user;
(d) ensure that patent prosecution histories may be admissible into evidence for certain purposes;
(e) clarify when a late fee must be paid in respect of divisional applications as well as when the confidentiality period begins in the case where a request for priority is deemed never to have been made.
Subdivision B of Division 7 of Part 4 amends the Trade-marks Act to, among other things,
(a) add bad faith as a ground of opposition to the registration of a trade-mark and for the invalidation of a trade-mark registration;
(b) prevent the owner of a registered trade-mark from obtaining relief for acts done contrary to section 19, 20 or 22 of that Act during the first three years after the trade-mark is registered unless the trade-mark was in use in Canada during that period or special circumstances exist that excuse the absence of use;
(c) clarify that the prohibitions in subparagraph 9(1)‍(n)‍(iii) and section 11 of that Act do not apply with respect to a badge, crest, emblem or mark that was the subject of a public notice of adoption and use as an official mark if the entity that made the request for the public notice is not a public authority or no longer exists; and
(d) modernize the conduct of various proceedings before the Registrar of Trade-marks, including by providing the Registrar with additional powers in such proceedings.
It also makes certain housekeeping amendments to provisions of the Trade-marks Act that are enacted by the Economic Action Plan 2014 Act, No. 1 and the Combating Counterfeit Products Act.
Subdivision C of Division 7 of Part 4 amends the Copyright Act in order to specify that certain information is not permitted to be included within a notice under the notice and notice regime and to provide for a regulation-making power to prohibit further types of information from being included within such a notice.
Subdivision D of Division 7 of Part 4 enacts the College of Patent Agents and Trade-mark Agents Act. That Act establishes the College of Patent Agents and Trade-mark Agents, which is to be responsible for the regulation of patent agents and trade-mark agents in the public interest. That Act, among other things,
(a) requires that individuals obtain a licence in order to act as patent agents or trade-mark agents and that licensees comply with a code of professional conduct;
(b) authorizes the College’s Investigations Committee to receive complaints and conduct investigations into whether a licensee has committed professional misconduct or was incompetent;
(c) authorizes the College’s Discipline Committee to impose disciplinary measures if it decides that a licensee has committed professional misconduct or was incompetent; and
(d) creates new offences of claiming to be a patent agent or trade-mark agent and unauthorized representation before the Patent Office or the Office of the Registrar of Trade-marks.
That Subdivision also makes consequential amendments to certain Acts.
Subdivision E of Division 7 of Part 4 amends the Bankruptcy and Insolvency Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of in an insolvency proceeding or when the agreement relating to such property rights is disclaimed or resiliated in such a proceeding. It also amends the Companies’ Creditors Arrangement Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of.
Subdivision F of Division 7 of Part 4 amends the Access to Information Act and the Privacy Act to provide that the head of a government institution may refuse to disclose, under either of those Acts, information that is subject to the privilege set out in section 16.‍1 of the Patent Act or section 51.‍13 of the Trade-marks Act. It makes a related amendment to the Pest Control Products Act.
Subdivision G of Division 7 of Part 4 amends the National Research Council Act to clarify that the National Research Council of Canada has the authority to dispose of all forms of intellectual property that it develops, including future rights to such property and to provide the Council with the authority to dispose of real, personal, movable and immovable property, complementing the current provision in the Act that allows it to acquire such property.
Subdivision H of Division 7 of Part 4 amends the Copyright Act in order to modernize the legislative framework relating to the Copyright Board so as to improve the timeliness and clarity of its proceedings and decision-making processes. More specifically, it repeals spent provisions and
(a) codifies the Board’s mandate and establishes decision-making criteria;
(b) establishes new timelines in respect of Board matters, including earlier filing dates for proposed tariffs and longer effective periods for approved tariffs, and empowers the Governor in Council to make additional timelines by regulation;
(c) formalizes case management of Board proceedings;
(d) reduces the number of matters that must be considered by the Board;
(e) streamlines procedural steps across different tariff contexts, maintaining differences between them only where necessary;
(f) amends relevant enforcement provisions, including the availability of statutory damages for certain parties in respect of Board-set royalty rates and enforcement of Board-set terms and conditions; and
(g) modernizes existing language and structure for greater clarity and consistency.
Division 8 of Part 4 amends the Employment Insurance Act to, among other things, increase the maximum number of weeks for which parental benefits may be paid if these benefits are divided between claimants. It also amends the Canada Labour Code to, among other things, increase the aggregate amount of leave that may be taken by employees under sections 206.‍1 and 206.‍2 if that leave is divided between employees.
Division 9 of Part 4 enacts the Canadian Gender Budgeting Act in order to state the Government’s policy of promoting gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. It also establishes related reporting requirements.
Division 10 of Part 4 amends the Bank Act to strengthen provisions that apply to a bank or an authorized foreign bank in relation to the protection of customers and the public. It implements enhancements in the areas of corporate governance, responsible business conduct, disclosure and transparency, and redress. It also amends the Financial Consumer Agency of Canada Act to strengthen the mandate of the Financial Consumer Agency of Canada and grant additional powers to that Agency.
Division 11 of Part 4 amends the First Nations Land Management Act to give effect to amendments to the Framework Agreement on First Nation Land Management respecting, among other things, procedures for obtaining community approval of a land code, the lands to which a land code may apply, the addition of lands to First Nation land by order of the Minister and the transfer of capital moneys.
Division 12 of Part 4 amends the First Nations Fiscal Management Act to, among other things,
(a) enable more Aboriginal organizations and First Nations to benefit from the provisions of the Act in order to strengthen their financial management systems and give them access to long-term financing;
(b) address certain administrative issues identified by the bodies established under the Act; and
(c) provide another option for First Nations to access moneys held by Her Majesty for their use and benefit.
Division 13 of Part 4 amends the Export and Import Permits Act to give the Minister of Foreign Affairs the authority to issue an import allocation for goods that are included on the Import Control List under subsection 5(6) of that Act.
Division 14 of Part 4 enacts the Pay Equity Act to establish a proactive process for the achievement of pay equity by the redressing of the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes. The new Act requires federal public and private sector employers that have 10 or more employees to establish and maintain a pay equity plan within set time frames so as to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed is of equal value. The new Act provides for the powers, duties and functions of a Pay Equity Commissioner, which include facilitating the resolution of disputes, conducting compliance audits and investigating disputes, objections and complaints, as well as making orders and imposing administrative monetary penalties for violations of that Act. The new Act also requires the Pay Equity Commissioner to report annually to Parliament on the administration and enforcement of the new Act.
Division 14 also amends the Parliamentary Employment and Staff Relations Act to provide for the application of the Pay Equity Act to parliamentary employers with certain adaptations and without limiting the powers, privileges and immunities of the Senate, the House of Commons and the members of those Houses.
It also makes the Minister of Labour responsible for the administration of the Federal Contractors Program for Pay Equity.
Finally, it makes related and consequential amendments to certain Acts and repeals the section of the Budget Implementation Act, 2009 that enacts the Public Sector Equitable Compensation Act.
Subdivision A of Division 15 of Part 4 amends the Canada Labour Code to, among other things,
(a) provide five days of paid leave for victims of family violence, a personal leave of five days with three paid days, an unpaid leave for court or jury duty and a fourth week of annual vacation with pay for employees who have completed at least 10 consecutive years of employment;
(b) eliminate minimum length of service requirements for leaves and general holiday pay and reduce the length of service requirement for three weeks of vacation with pay;
(c) prohibit differences in rate of wages based on the employment status of employees;
(d) address continuity of employment issues when a work, undertaking or business becomes federally regulated or in cases of contract retendering; and
(e) update group and individual termination provisions by increasing the minimum notice of termination.
Subdivision B of Division 15 of Part 4 amends the Canada Labour Code to allow the Minister of Labour to designate a Head of Compliance and Enforcement who will exercise most of the powers and perform most of the duties and functions that are related to the administration and enforcement of Parts II, III and IV of the Code.
Division 16 of Part 4 amends the Wage Earner Protection Program Act to, among other things, increase the maximum amount that may be paid to an individual under the Act, expand the definition of eligible wages, expand the conditions under which a payment may be made under the Act and create additional requirements related to Her Majesty in right of Canada’s right of subrogation in respect of payments made under the Act.
Division 17 of Part 4 amends the Bretton Woods and Related Agreements Act, the European Bank for Reconstruction and Development Agreement Act and the Official Development Assistance Accountability Act to harmonize the periods within which the reports under those Acts must be laid before Parliament in order to better communicate Canada’s international development efforts. It also repeals the definition of “official development assistance” in the Official Development Assistance Accountability Act and confers the power to define this expression by regulation.
Division 17 also enacts the International Financial Assistance Act, which provides the Minister of Foreign Affairs and the Minister for International Development with powers, duties and functions to support the delivery of a sovereign loans program, an international assistance innovation program and a federal international assistance program that promotes the mitigation of or adaptation to climate change through repayable contributions.
Division 18 of Part 4 enacts the Department for Women and Gender Equality Act which, among other things, establishes the Department for Women and Gender Equality to assist the Minister responsible for that department in exercising or performing the Minister’s powers, duties and functions that extend to and include all matters relating to women and gender equality, including the advancement of equality in respect of sex, sexual orientation, or gender identity or expression and the promotion of a greater understanding of the intersection of sex and gender with other identity factors. It also contains transitional provisions. Finally, Division 18 makes consequential amendments to other Acts.
Division 19 of Part 4 enacts the Addition of Lands to Reserves and Reserve Creation Act which authorizes a Minister, designated by the Governor in Council, to set apart lands as reserves for the use and benefit of First Nations. The Division also repeals Part 2 of the Manitoba Claim Settlements Implementation Act and the Claim Settlements (Alberta and Saskatchewan) Implementation Act.
Division 20 of Part 4 amends section 715.‍42 of the Criminal Code to require the publication of any decision not to publish a remediation agreement or order related to that agreement and of any decision related to the review of such a decision, to specify that the court may make the first decision subject to a condition, including one related to the duration of non-publication, and to allow anyone to request a review of that decision.
Division 21 of Part 4 enacts the Poverty Reduction Act, which sets out two targets for poverty reduction in Canada.
Division 22 of Part 4 amends the Canada Shipping Act, 2001 to, among other things,
(a) authorize the Governor in Council to make regulations respecting the protection of the marine environment from the impacts of navigation and shipping activities;
(b) authorize the Minister of Transport to
(i) make an interim order to mitigate risks to marine safety or to the marine environment, and
(ii) exempt any person or vessel from the application of any provision of that Act or the regulations if doing so would allow the undertaking of research and development that may enhance marine safety or environmental protection;
(c) increase the maximum amount of an administrative penalty that the Governor in Council may fix by regulation;
(d) authorize the Minister of Fisheries and Oceans, pollution response officers and accompanying persons to enter private property in the case of a discharge of oil from a vessel or oil handling facility; and
(e) double the administration monetary penalties for certain violations.
Division 23 of Part 4 amends the Marine Liability Act to modernize the Ship-source Oil Pollution Fund, including, among other things,
(a) removing the Fund’s per-occurrence limit of liability;
(b) in the event that the Fund is depleted, authorizing the temporary transfer to the Fund of funds from the Consolidated Revenue Fund;
(c) modernizing the Fund’s levy so that the Fund is replenished by receivers and exporters of oil;
(d) ensuring that the Fund’s liability for claims for economic losses caused by oil pollution aligns with international conventions;
(e) providing that the Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of preventive measures when the occurrence for which those costs and expenses were incurred has not yet created a grave and imminent threat of causing oil pollution damage;
(f) authorizing the provision of up-front emergency funding out of the Fund to the Minister of Fisheries and Oceans for significant oil pollution incidents;
(g) creating an expedited, simplified process for small claims to the Fund; and
(h) providing for administrative monetary penalties for contraventions of specified or designated provisions under that Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 3, 2018 Passed 3rd reading and adoption of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Dec. 3, 2018 Passed 3rd reading and adoption of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Dec. 3, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (recommittal to a committee)
Nov. 27, 2018 Passed Concurrence at report stage of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Passed Time allocation for Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 6, 2018 Passed 2nd reading of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 6, 2018 Passed 2nd reading of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 6, 2018 Failed 2nd reading of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (reasoned amendment)
Nov. 6, 2018 Passed Time allocation for Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:20 p.m.
See context

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, it is an honour to rise today to speak to Bill C-86, the budget implementation act. I feel fortunate that I will get to speak on this bill, but because of time allocation on this bill and multiple others by the government, many of my colleagues are not going to have the opportunity to debate it. I feel fortunate that I at least get to debate the bill and question the government.

It has been pointed out many times that the government made numerous promises in its election campaign that it has no intention of upholding. When I make a promise, I vow to uphold it, but the government seems to have no respect for that whatsoever or for Canadian citizens, which I find simply abhorrent.

Liberals promised not to introduce omnibus bills and yet we have a budget implementation act of over 800 pages, almost 900 pages, in fact. Just the summary of this bill is over 12 pages long. It is a massive bill that deserves full debate in the House, but with time allocation being applied, we will not get that opportunity. I have spoken with my colleagues who wanted parts of this bill taken out and debated separately in committee, but those requests were denied by the Liberals at committee. It is a shame that we cannot properly debate a bill that is so important to every Canadian.

I will go back to the election promises that the government made back in 2015. Liberals claim to have been elected on a mandate of what they said they would do for the Canadian public and a big part of it was to keep the deficit below $10 billion per year. That is a promise broken. Another part of the 2015 election campaign was that deficits would decrease annually as Liberals moved through their mandate. That is a promise broken. Liberals promised to reach a balanced budget by 2019. That is a promise broken. They promised to be open and transparent in their government. We have seen multiple times how that promise has been broken and we have another example of it again today with time allocation being applied to debate on this bill so that we cannot fully expose this bill for what it is to the Canadian public.

When I return to my riding of North Okanagan—Shuswap, increasingly people approach me and ask what we can do to stop this out-of-control spending by the government and the debt that it is passing on to future generations. That truly concerns me. There are a lot of young entrepreneurs in my riding looking to a brighter future, but we see what the government is doing with these continual deficits of nearly $20 billion year after year. Most people cannot visualize what that $20 billion would look like in a project in the town or community they live in or a project at home.

That $20 billion does not translate easily to individuals, but it creates an approximate $600 debt load per person. The government puts every man, woman, child, infant and senior in Canada further in debt by almost $600 every year. In three years, that is $1,800 for every man, woman and child. Imagine what it will cost a family of four people. It is unbelievable when people hear what this really means for families and individuals. When we work into that the percentage of Canadians who are full time in the workforce, it is probably about 25% of Canadians. Therefore, one in four Canadians is paying back the incredible debt that the government is building up.

In 2019, we are working towards electing a Conservative government, led by our leader. We are looking forward to bringing reality back to finances in Canada, so that we can provide hope and prosperity, and a future for those young Canadians.

The only way we are going to be able to do that is to try to keep them out of this incredible debt that the government keeps piling on. I cannot imagine. I have a daughter and son-in-law who have established themselves, but I cannot imagine having teenagers or young children right now and having to tell them that, with the government, they are going to be another $500 or $600 per year further in debt every time the government passes a budget. That is very troubling to me. I cannot imagine passing on that information on the doorstep.

That is what I am hearing from people when I am back home. They do not want that debt passed on to their children. Time and time again, people are asking, “How can we stop this?”

Another of the factors that have popped up in this bill and that have been pointed out is the increase in the debt servicing costs of government. It will not matter whether it is a Liberal, Conservative, coalition or minority government. It will not matter; the increased debt servicing costs could grow by up to 60% under the current government's plan. That is incomprehensible. It will mean that we could end up paying more in debt servicing per year than our current health care transfers to the provinces.

What it means is that what the government is creating in deficits and debt load to future governments is going to be taking away from something else that we should be able to pay for in the future. Whether that is housing, health care or business investment, all of those things are going to be impacted by the debt load that is currently being passed on by the government.

Getting back to some more of the promises that were made by the government and have now been broken, it promised to reduce business taxes. It has done that in some ways, but in other ways it has reached into the back pockets of business people and taken more out than it has actually put in. It did that earlier this year with the implementation of the deferred income taxes.

The government increased taxes on passive income investments. It will be up to 73% that individuals will have to pay on those passive investments. That is absolutely killing corporate investment in avenues other than their core business. Many people who had surplus income in their primary business decided to purchase rental properties, whether it was detached homes or small apartment buildings and so on. They would invest their extra income in purchasing those rental properties to create lower-income rental opportunities for individuals in the community who could not afford to purchase their own home.

I have had those individuals approach me time and time again over the summer and since, and they say they are no longer going to do that. There is no point in investing in a secondary business other than their primary investment. It is no longer feasible because of what the government is doing.

I know my time is running down, so I will try to wrap up. With over 800 pages in this bill, it is really difficult to fit in much detail about the individual pieces in a 10-minute presentation. Again, I want to stress the fact that the government has moved time allocation on the bill which, for most of our members, will remove the opportunity to speak on this bill. Again, it is deplorable that the government keeps doing this. I cannot comprehend how we are going to get past this.

We need to work together, as government and as opposition, on what is good for Canadians, but the government is making it almost impossible. I will wrap up with that statement.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:05 p.m.
See context

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Mr. Speaker, I am pleased to speak today in support of Bill C-86.

For people watching at home, some of what we are discussing today may sound familiar. That is because we heard about these programs earlier this year when the Minister of Finance presented the 2018 budget on February 27.

Budgets, by their nature, are aspirational, forward-looking documents. They are an expression of what we, as a government, are planning to do.

In order to achieve the objectives which we have set out for ourselves in the budget, we must make new laws or make changes to existing laws. To do that, we must pass legislation.

The aspirations in this year's budget took nearly 400 pages to express. If the budget took nearly 400 printed pages to express, the laws needed to implement the plan have to be written. That generally involves multiples of 400 pages and then those laws have to be presented and debated in the House of Commons, be examined by a committee or committees, be passed by the House, then sent to the Senate, debated and reviewed by a Senate committee, passed by the Senate and then sent to the Governor General for royal assent. All that takes a lot of time.

Therefore, we divide the budget plan into those items that need to get passed right away. Soon after the budget is presented, we deal with those items with a first piece of legislation. Then later we deal with the more forward-looking plans in the budget and we create a second piece of legislation to implement the remainder of the budget plan.

Today we are discussing that second piece of legislation to implement the 2018 budget. One of the aspirations expressed in budget 2018 was that we should address the gender wage gap by making progress toward equal pay for equal work. The issue arises because, as the budget said:

In Canada today, women earn 31 per cent less than men do....the median income for women is $28,120, compared with $40,890 for men....As the largest employer in the country, many have called on the federal government to lead by example—and that is what the Government will do.

The bill we are debating today introduces proactive pay equity legislation for workers in the federal government and in federally regulated sectors. Equal pay for work of equal value is the smart thing to do. We are very proud to be moving forward with proactive pay equity legislation. It is a key way in which our government is delivering on its commitment to gender equality.

Bill C-86 proposed to enact the pay equity act to establish a proactive process for the achievement of pay equity by the redressing of the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes. The new act would require federal public and private sector employers that would have 10 or more employees to establish and maintain a pay equity plan, with set time frames, to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed would be of equal value.

The new act would provide for the powers, duties and functions of a pay equity commissioner, which would include facilitating the resolution of disputes, conducting compliance audits and investigating disputes, objections and complaints, as well as making orders and imposing administrative monetary penalties for violations of that act. The new act would also requires the pay equity commissioner to report annually to Parliament on the administration and enforcement of the new act.

Bill C-86 would also amend the Parliamentary Employment and Staff Relations Act to provide for the application of the pay equity act to parliamentary employers. It would also make the Minister of Labour responsible for the administration of the federal contractors program for pay equity.

On modernizing the federal labour standards, the amendments to the Canada Labour Code that Bill C-86 would make are:

(a) provide five days of paid leave for victims of family violence, a personal leave of five days with three paid days, an unpaid leave for court or jury duty and a fourth week of annual vacation with pay for employees who have completed at least 10 consecutive years of employment; (b) eliminate minimum length of service requirements for leaves and general holiday pay and reduce the length of service requirement for three weeks of vacation with pay; (c) prohibit differences in rate of wages based on the employment status of employees...(e) update group and individual termination provisions by increasing the minimum notice of termination.

Bill C-86 would also amend the Wage Earner Protection Program Act to:

...among other things, increase the maximum amount that may be paid to an individual under the act, increase the maximum amount that may be paid to an individual under the Act, expand the definition of eligible wages, expand the conditions under which a payment may be made under the Act.

It is interesting to note that while the Liberal federal government is enhancing labour standards for workers, the Conservative provincial government in Ontario is in the process of diminishing labour standards. We would think that the first rule of government would be like that of the medical profession: First do not harm.

I share the disappointment of some members of the House that we were not able to take a further step forward by protecting worker pensions in the event of insolvency of employers. Bill C-86 would make amendments to Canada's insolvency legislation and would improve the Wage Earner Protection Program Act. However, it does not address the issue, which is essentially of deferred wages remaining unpaid. The pension of workers need protection from employers' bankruptcy by giving pension funds priority in employer bankruptcies. I hope we can move forward to correct this problem in the not too distant future.

I also want to talk about our record of our government and what we have done for middle-class Canadians.

The investments made from our government in middle-class Canadians consist of $40 billion in a national housing strategy. This is much-needed and will help Canadians have a decent home to live and raise their families. We have also increased the Canada child benefit, which will be indexed as of this year. An average family will receive $2,000 more in its pocket to help with the high cost of raising its children. We have lifted hundreds of thousands of children out of poverty.

With respect to jobs, we have created over 500,000 new jobs since 2015. We have had the lowest unemployment rate in 40 years. The unemployment rate nationally is around 5.8% to 6%. In Waterloo Region, at the end of October, that unemployment rate was at 5.2%.

We have also announced federal funding for a high-tech company in my riding, North Inc., which is making high-tech Focals, eyeglasses. This has increased jobs in my region. It has added 230 good well-paying jobs in the high-tech sector.

As well, and not in terms of the budget, in my committee of citizenship and immigration, we brought in the global skills strategy to bring in high-tech workers to our region to ensure we closed the gaps in the high-tech sector.

In infrastructure spending, we have added historic spending of $120 billion in infrastructure projects. In my region alone, I have announced $97 million for a highway expansion, going from six lanes to 10 lanes, so we can get our products to market faster and can have faster commutes to and from the GTA from our region.

Also, we have lowered taxes for the middle class, from 22% down to 20.5%. We have also lowered taxes on businesses, from 11% to 9% in 2019.

These are some of the things our government has laid out and it is our record since we formed government. This is why I am supporting this budget.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / noon
See context

NDP

Robert Aubin NDP Trois-Rivières, QC

Madam Speaker, I listened closely to my colleague's comments. I really appreciated the parallel he drew at the beginning of his remarks between the current Liberal government and the previous Conservative government and their approach to doing things.

I wonder if he could expand on that because on reading Bill C-86, I am having a hard time differentiating between the Conservatives and the Liberals. Employment insurance has been overlooked, the fight against tax evasion and tax havens has been abandoned. The hon. member talked about Netflix and web giants. All these questions that we have been asking since our cohort was elected in 2011 have not been getting answered, not by the Conservatives or the Liberals.

Is it six of one and half a dozen of the other with these two parties?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 11:35 a.m.
See context

Liberal

Celina Caesar-Chavannes Liberal Whitby, ON

Madam Speaker, it gives me great pleasure to talk to Bill C-86. Since we came into government, we have really focused on the middle class and those working hard to join it. This legislation would help us to continue along that trajectory, continue to make Canada one of the fastest growing economies in the G7 and continue to help ensure that Canadian companies are able to create good middle-class jobs. In fact, they have been able to create over half a million jobs. Our government created the conditions with investments to ensure that these companies and Canadians would be able to grow and prosper. It has done so through our trade and other investments in education and skills training, and will continue along that path.

However, I want to focus my comments today on three specific points that I will ground within the sustainable development goals. Earlier this year, I was with the Minister of Families, Children and Social Development in New York to present our voluntary statement to the United Nations on the sustainable development goals. Canada has a role to play to ensure that we reach those 169 targets and 17 goals by 2030. We are well on track to do that. We have been doing it from day one.

I am going to focus on particular components of the sustainable development goals emphasized through this budget. The first is goal 5, one that is really important to my heart. It has to do with gender and ensuring that we have gender equality in our country. As we are in the midst of 16 days of activism against gender-based violence, I want to ensure that my actions matter. Speaking to this particular legislation, Bill C-86, allows me to do that.

What we have in front of us are a number of different initiatives that would help to ensure we have gender equality in Canada. Our government has legislated gender budgeting, made Status of Women a full department and enacted proactive pay equity legislation.

With regard to Status of Women becoming a full department, the future department of women and gender equality, it is nice to have the word “wage” included in the title when we are introducing proactive pay legislation. When we think about the fact that indigenous women, women of colour, women with disabilities, religious individuals, people with different sexual orientations and women who are too old or too young face disproportionate negative impacts and barriers in their workplaces and communities, it is important that we be sensitive. When we are enacting legislation, it is also important to look at how our legislation impacts individuals differently. By legislating gender budgeting and ensuring increased participation of women, especially the ones who are most vulnerable, we are working toward supporting women and girls and reducing the gender wage gap. We are making sure that our country is prosperous for everyone.

The current gap of around 20¢ per dollar of earnings between what men and women make grows proportionately bigger when we think about some of these vulnerable communities or look at intersectionality. When there are different intersecting identities, we see that the gap between men and women gets larger, so ensuring that our country is prosperous for everyone is really important.

As I mentioned, having a full department dedicated to the status of women, the women and gender equality department, is really important. It will have an expanded mandate for gender equality, including sexual orientation, gender identity and expression, and for the promotion of a greater understanding of gender diversity, often through what is known as a gender-based analysis plus.

We need to ensure that we have the capacity to leverage movements like #MeToo and Time’s Up and ensure that every woman in this country feels that she has a place and is valued and respected. The initiatives we have taken so far with regard to gender will ensure that this happens.

Continuing with my theme of the sustainable development goals, goal 8 speaks to decent work and economic growth; goal 9, industry, innovation and infrastructure; goal 10, reducing inequalities; goal 11, sustainable cities and communities; and goal 16, peace, justice and strong institutions. To tie up all of those goals is really the work that we are doing with stakeholders in the charitable sector.

I worked in research before I came into politics. I owned a research management company, but I worked with organizations like Neurological Health Charities Canada, the Alzheimer Society of Canada, Parkinson Canada, Epilepsy Durham and many organizations in my riding like Sunrise Youth Group in Whitby or the Charles H. Best Diabetes Centre, of which Kenadie, a sixth grade student, is a very strong champion. She came to see me in Ottawa last year.

These charitable organizations are the foundation on which our middle class rests. They are the ones that do a lot of hard work to ensure that we are able to continue to function as a society. For example, the Sunrise Youth Group supports adult individuals with developmental handicaps so that their parents can go to work. This is what our charitable sector does and it really is a strong part of our society.

In strengthening that role of our charitable sector, we are ensuring that charities are able to do the work they want to do on behalf of Canadians. We are removing the limits to their political activities, allowing charities to participate fully in policy development. They could provide feedback on legislation and legislative proposals. We are providing a permanent advisory committee on the charitable sector.

The charitable sector is one of the sectors that contribute to our economy. It can generate up to $2 billion in economic activity and create as many as 100,000 jobs. The charitable sector is growing, is vital, and innovative. It does a lot with very little and we need to support it. Our government will be providing supports and resources of up to $750 million over the next 10 years to support and establish a social finance fund. When we look to our charitable organizations to provide support for our families, we need to support them. That is what we are doing here in this budget implementation act.

The last things I want to speak to are goal 1, no poverty; goal 2, zero hunger; and goal 3, good health and well-being. When we look at reducing poverty and ensuring that people have the capacity to live a full life and contribute to our economy, we need to look holistically at the social determinants of health to ensure that we help create the conditions that allow Canadians to live their best lives possible. With our poverty reduction strategy, programs like the Canada child benefit, our national housing strategy, enhancing seniors benefits, the Canada workers benefit, we have lifted 650,000 Canadians out of poverty, including 300,000 children.

We are developing our first national poverty reduction strategy and establishing for the first time ever an official poverty alliance. We are looking holistically at ensuring that Canadians of all stripes will be able to have a good quality of life. Since October 2015, we have hit the ground running to ensure that this happens in a comprehensive, holistic way. Not only are we going to be able to achieve our sustainable development goals and the agenda 2030, but we are doing it here in Canada. We are taking leadership by ensuring that everyone has a fair chance to succeed.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 11:30 a.m.
See context

Liberal

Celina Caesar-Chavannes Liberal Whitby, ON

Madam Speaker, in his support of Bill C-86, my hon. colleague talked about IP and IP strategy. As a member of the industry committee, I can attest that it really is important to understand that a comprehensive IP strategy helps businesses not just to protect their IP on the home front, but to grow and succeed and then be able to export to international markets.

I am wondering if my hon. colleague can also talk about what he is hearing from small businesses in his riding about this strategy, its comprehensiveness, the fact that it would include education and the ability to grow and prosper, and how it has impacted businesses in his riding.

The House resumed from November 26 consideration of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, as reported (with amendments) from the committee, and of the motions in Group No. 1.

Bill C-86—Time Allocation MotionBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 10:25 a.m.
See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, as the debate right now is on the issue of time allocation and not on the substance of Bill C-86, I want to once again make it clear that the use of time allocation as a routine proceeding is completely unacceptable. I ask the hon. minister to reconsider.

In the substance of her remarks in answer to a question, she said that this legislation and the government's actions would protect Canadians for generations to come. I would have to correct her. As it now stands, we have not protected the next generation much less generations to come.

I urge the minister to read the IPCC report on what we must do to reduce emissions, so we can hold to 1.5°C and no more.

Bill C-86—Time Allocation MotionBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 10:05 a.m.
See context

Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

moved:

That, in relation to Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, not more than one further sitting day shall be allotted to the consideration of the report stage of the said bill and not more than one sitting day shall be allotted to the consideration of the third reading stage of the said bill; and

That fifteen minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at the third reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the bill then under consideration shall be put forthwith and successively without further debate or amendment.

November 27th, 2018 / 8:10 a.m.
See context

Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Thank you very much. I appreciate your answer on that. I would like to follow up with you on another question, since you did raise the oceans protection plan. We had this question for your ADM, who appeared before our committee on Bill C-86.

We understood that the legislative consultations for the oceans protection plan concluded on Friday, October 26. Bill C-86 was tabled on Monday, October 29. Look, as good as the lawyers are within Transport Canada and at the justice department, no one really believes that they could actually get these clauses drafted and get them to the printer in two days. In fact, the shipping community was very surprised to see these clauses included in Bill C-86.

Minister, when did you decide to include these substantial changes in the BIA, and why did Transport Canada's website continue to suggest that these consultations were still ongoing?

November 27th, 2018 / 8:10 a.m.
See context

Liberal

Marc Garneau Liberal Notre-Dame-de-Grâce—Westmount, QC

I thank my colleague for the question.

Of course, the parts in Bill C-86 that she is referring to have to do with modifications that we will be making to the Canada Shipping Act of 2001 and the Marine Liability Act. These were referenced specifically in the budgets of 2017 and 2018 in the context of the oceans protection plan, which is a very important government initiative.

Canada relies on safe and clean coasts and waters for trade, economic growth and quality of life. We also recognize that our oceans hold a special place in the traditions and culture of Canadians, notably indigenous communities. We are taking decisive, concrete action to ensure that our oceans will continue to be enjoyed by all Canadians today and for generations to come.

To support safe and environmentally responsible shipping, divisions 22 and 23 of Bill C-86 propose legislative amendments to enhance marine environmental protection and strengthen marine safety. That is the purpose of those two.

November 27th, 2018 / 8:10 a.m.
See context

Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Thank you very much, Madam Chair.

I want to thank you, Minister Garneau, for joining us today for 90 minutes. We're very pleased to be able to ask many questions. We look forward to your answers. I also want to welcome the departmental officials you've brought with you. There's quite a team here today. I do appreciate the fact that they've taken the time to join us this morning.

I know that we are studying the supplementary estimates and government spending, but I would like to ask some questions around a bill that we studied recently. It was referred to us by the finance committee. It was part of the budget implementation act, Bill C-86.

There were a couple of divisions in the budget implementation act that I think come directly from Transport Canada. They were buried within this budget implementation act between pages 589 and 649, in divisions 22 and 23. They contain substantial changes to the Canada Shipping Act and the Marine Liability Act.

One of the witnesses appearing before the committee for the Chamber of Shipping noted that clause 692 of this bill appears to be another mechanism with which to implement a moratorium on specific commodities through regulation and interim order, not legislation as the government has already done through Bill C-48. The witness noted that this contradicts what should be the government's objective in providing a predictable supply chain.

Quite honestly, Minister, there is no question in my mind that the inclusion of this clause in Bill C-86 will have a further chilling effect on Canada's oil and gas industry. My question for you this morning is, can you assure Canadians that this will not be yet another measure to undermine Canada's oil and gas sector?

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 6:15 p.m.
See context

Conservative

Ted Falk Conservative Provencher, MB

Madam Speaker, it is a pleasure to rise in the House today to speak to Bill C-86, the budget implementation act no. 2.

The Liberal government is attempting to ram a budget through the House that paints a rosy picture of our national finances. It insists on spending massive amounts of money and promising to increase taxes through its new tax on everything, the carbon tax. In fact, the leader of the official opposition hit the nail on the head when he said of this Liberal government, “Never has a government spent so much and achieved so little.” It is true.

Despite the promises of the Minister of Finance and the Prime Minister, all is not well in Canada, certainly not for the people of Oshawa. For over 100 years, Oshawa and General Motors have had a partnership. Now the Oshawa plant is going to be shut down. This is a tremendous blow to the people of Oshawa and Canadian manufacturing in general.

Before going any further, let me express my concern for the people of Oshawa. I cannot imagine what far too many Canadians in Oshawa are experiencing today. My sincere condolences go out to all of those who are going to be negatively affected and will lose their jobs. This is terrible news, and it comes just before Christmas.

The GM plant is important not only to families in Oshawa but to families across Ontario and Canada. The Oshawa plant is closing, and the Liberals have nothing to show for it. Their high taxes and lack of regulatory clarity are forcing businesses all over the country to stop investing or to just plain leave Canada. They have no way of backstopping anything except through more debt. It is important to run a surplus during good economic times so that when the bad times come, there is money to be spent, and as they say, money to be invested. Running deficits during good times means there will be less when the bad times come.

For the people in Oshawa, times are hard. The only way the Liberal government can help them is through more debt. This is debt that Oshawans and all Canadians will have to pay through increased taxes down the road. All Canadians will have to pay through increased taxes down the road, as will the folks in Oshawa, but if there are no jobs, there will be no extra money to pay extra taxes. This is precisely the situation the Liberal government is creating in Canada.

The U.S. administration has cut taxes for businesses, and this has caused many businesses to choose to relocate to the United States. The finance minister and the Liberal government declined to match any of those tax cuts. Consequently, many businesses are choosing to invest in the United States as opposed to Canada. The tax cuts and the corresponding lack of action by the Liberal government may have played a role in the closing of the Oshawa plant by General Motors.

Manufacturing across Canada is concerned, particularly about the issue of tariffs on aluminum and steel. Despite significant concessions to the U.S. in the recent NAFTA negotiations, now called the USMCA, the Liberal government was not able to get the Trump administration to lift the tariffs on steel and aluminum. This is costing manufacturers and industry dearly.

In my riding, my constituent Marilyn N. is a small business owner. She imports aluminum-based products from the United States, and because of the tariffs and the retaliatory tariffs we have put on, she has indicated to me that if these tariffs are not lifted, she may be forced to lay off workers, as her costs are not sustainable in the long term.

Many business owners across Canada can relate to her story, but Liberal failures are not limited to manufacturing. The Prime Minister and his Liberal government have failed with our natural resources as well. Their failures have resulted in the loss of thousands of jobs and over $100 billion of investment in our energy sector.

Energy east, Pacific Northwest LNG, northern gateway, Aurora LNG, and Grassy Point LNG are all examples of the government's inability to deliver on developing and getting to market our natural resources. The Trans Mountain crisis has made things even worse. The taxpayer is on the hook for $4.5 billion for a pipeline that may never be built. Under the previous Conservative government, four pipelines were built. This included the Enbridge Alberta Clipper, the Trans Canada Keystone, the Kinder Morgan Anchor Loop, and the Enbridge Line 9B reversal.

As soon as the Liberals took office, the Prime Minister and his government started their reckless spending and arbitrary regulatory changes. This caused business investment to plummet and confidence in Canada to decline. Even the Montreal Economic Institute said, “People are giving up on Canada as a safe place to invest in natural resources...It’s seen as a very hostile environment now.”

It is quite clear that the Liberal government has failed in encouraging foreign investment in Canada. Our country has so much to offer and the Liberal government is throwing away potential investment opportunities because of its failures. In fact, though the economy has grown, very little has been the government's doing. Growth was driven by oil and gas markets, a strong housing market and consumer spending. Consumers were able to spend because interest rates were low. The Liberal government has had very little to do with any of that. It has not helped and in many cases it has hindered growth areas in our country.

When it comes to oil, the Liberal government, under the current Prime Minister, has been an absolute failure. When he formed government in 2015, he did so with three large pipelines ready to be delivered. Two of those pipelines abandoned Canada due to the regulatory environment created by the Liberal government. The third was bought by Canadian citizens, through no choice of their own, for $4.5 billion for a pipeline that was worth just over a billion dollars and a potential of building and constructing a new pipeline for another $3.5 billion. That was basically goodwill, and now that goodwill does not look like it is going to be worth very much.

The Prime Minister has failed to realize that oil and gas is not an unfortunate part of Canada; it is a vital component of Canada and our economy. It is important to the people of Alberta and all Canadians who depend upon government services, which are possible because of oil royalties.

When the Prime Minister said that he wanted to phase out the oil sands, I think he meant it. The cost to Canadians has yet to be fully accounted for, but already it is hurting our country. His reckless commitment to dismantling the oil and gas sector, an essential of Canada's economy, will undoubtedly lower our growth potential.

In addition, his inability to build a pipeline to tidewater means that our oil is largely captive to the American market, where it is bought for considerably less than it would be worth on the world market. Less money in the provincial and federal coffers means that without spending cuts, the governments must either raise taxes or borrow more money.

If governments borrow more money, interest rates will go up. Higher interest rates will affect consumer confidence. Less consumer confidence means less willingness to undertake large expenses. Housing will suddenly be less sought after as Canadians are forced to pay more interest. They will borrow less money. Suddenly, the three main drivers of growth in Canada, oil and gas, housing and consumer spending, are no longer the powerful drivers that they once were.

Due to high levels of government debt and historically low interest rates, the federal government will have very few tools left to deal with any upcoming crisis. This is not a healthy place for a government to be in. Nor is it good place for our country. The next crisis to befall Canada is going to be dangerous.

The Liberal government loves to talk about the debt-to-GDP ratio. That sounds good. However, it is only one tool and if we consider the implications, it is not reassuring at all. In fact, it could be bad and very bad for Canada. This way of accounting is only positive if the economy grows. It is based on economic growth. If the government continues to spend money, but the economy starts to slow, then we are in a bad situation and that debt-to GDP ratio quickly gets skewed.

Debt consists of principal, which is the amount borrowed, and interest, which is the amount paid to service the debt. If interest rates go up, we are paying more for the money that we have borrowed. Debt is a reasonable option if it allows for long-term gain. However, the Liberal government has borrowed money with reckless abandon and very little of it has gone to any kinds of projects with long-term sustainable benefit to Canadians.

Spending on infrastructure has not materialized. Of the $180 billion that the government committed to infrastructure spending, only 6% or just under $10 billion of that has actually been spent and invested in Canada. That would be a real investment, spending money on infrastructure, but the government has not allowed it to happen.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 6:10 p.m.
See context

Conservative

Randy Hoback Conservative Prince Albert, SK

Madam Speaker, this last weekend, I went back to Prince Albert, where they had their Santa Claus parade. It was very interesting, watching all the kids chase the candy and stuff. They were happy, but looking at their parents, looking at their eyes when I drove by, I could see the uneasiness.

Bourgault Industries just laid off 8% of its workforce, and that is on top of what happened at Bombardier, and that is one top of what has happened in Oshawa. This is heading into Christmas. These families are going toward Christmas not knowing what their future holds. There is nothing in Bill C-86 that gives them comfort. There is nothing at all.

When will the member go to the minister and the Prime Minister and stand up for these families, these families that do not have a nice Christmas coming? They do not know where their future lies. They have been shut down, whether they are in the forestry sector, the manufacturing sector or the gas sector. When will the member tell them to get their heads out of their asses and do something for these families?

The House resumed consideration of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

The House resumed consideration of Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.