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

Motions in AmendmentCanada Business Corporations ActGovernment Orders

June 16th, 2023 / 10:20 a.m.
See context

Liberal

Patrick Weiler Liberal West Vancouver—Sunshine Coast—Sea to Sky Country, BC

Madam Speaker, the letter was seeking to specifically understand each jurisdiction's particular needs and any supports required to facilitate their participation in a pan-Canadian system.

During the committee hearings, requests were heard to lower the ownership threshold to disclosure from 25% to 10%. First, it is important to point out that the decision to adopt a 25% threshold was made in 2018, and it was approved by Parliament in 2019 in Bill C-86.

With that said, the government does not support lowering the ownership threshold from 25% to 10%, because doing so could introduce significant interoperability issues. The 25% threshold makes the most sense for the following reasons: It is in line with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, Canada's anti-money laundering and anti-terrorism financing legislation. It also aligns with the beneficial ownership thresholds put in place by Canadian provinces, including Quebec and British Columbia. It is also in line with the ownership threshold adopted in all major jurisdictions in the world, including the U.S., the U.K., the European Union and Japan. Finally, it is compliant with the G20 and the norms set by the G20's Financial Action Task Force.

It should be emphasized that lowering the ownership threshold is not necessary to uncover significant control. Individuals who have a right to or actually exercise significant influence or control over a company are still required to be registered, even if they own less than 25% of the shares.

To ensure the effectiveness of the new registry, it is crucial for Canada to stay in line with domestic and international norms. Otherwise, the data it collects would not be interoperable or comparable; this would create both a significant burden on businesses and a significant challenge in ensuring compliance. Lowering the ownership threshold from 25% to 10% will take us out of alignment with best practices, both domestically and internationally; therefore, it is not recommended by the government.

The lack of beneficial ownership transparency is impairing Canada's ability to combat serious financial crimes, such as fraud, money laundering and tax evasion. It also limits our capacity to enforce domestic and international sanctions and to effectively trace and freeze financial assets. Finally, it is impacting the trust of Canadians and foreign investors in our marketplace.

Our inability to quickly and quietly identify a company's beneficial owner delays criminal investigations; denies law enforcement leads to potential suspects, witnesses and evidence; and impairs the identification and seizure of suspected proceeds of crime. It also reduces the ability of private businesses to protect themselves.

It is clear that the registry proposed by this bill and the interoperability measures that form part of the regime would significantly improve Canada's ability to fight financial crime. It would help public authorities verify owners across corporate layers, help businesses better validate the identity of their trading partners and render more difficult the use of corporations for illicit activities.

Future areas that should be examined to improve our ability to ascertain the beneficial owners of assets include bringing in new requirements for foreign companies doing business in Canada to disclose their beneficial owners, as well as for the Government of Canada to play a coordinating role in assisting the provinces and territories to establish a pan-Canadian land ownership registry. This registry would be able to work in concert with the corporate beneficial ownership registry. It would dovetail the important legislative changes to improve our ability to tackle financial crime that were announced in this year's budget implementation act.

A forthcoming review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act will surely identify further measures to take. I hope all members of this House will join me in supporting this important bill's passage so that we can continue to improve our ability to protect Canada from financial crime and the illicit activities that it supports.

May 12th, 2021 / 5:10 p.m.
See context

NDP

Matthew Green NDP Hamilton Centre, ON

Mr. Chair, I have a deep amount of respect for my friend Minister Duclos, but I also have limited time, and he has an ability to really stretch, so I'm just going to bring it back to my line of questioning, if I could.

I want to shift gears a bit about the expectation for the full implementation of the Pay Equity Act. As the President of Treasury Board will know, there is a significant Black class action lawsuit that identifies as a particular point of interest and negotiation the ability for self-declaration and a call for the federal government to amend the self-declaration of “visible minority” to create a separate category for Black employees. In his remarks, my good friend Mr. Kusmierczyk talked about disaggregated data.

For the interest of a good-faith conversation around the issue, understanding that this request is coming from the Black class action, has the Treasury Board looked at this and at preliminary steps towards the ability for desegregated categories as that relates to not just Black employees but all employees, to be able to ensure that there is an accurate reflection of perhaps some of the barriers or challenges that are faced by the public sector workforce?

February 25th, 2021 / 11:40 a.m.
See context

Liberal

Salma Zahid Liberal Scarborough Centre, ON

Thank you, Chair.

I will give a big thank you to the minister and officials for appearing before the committee. Thank you for all of the work that you are doing on this important issue.

I'm really proud to be part of a government that recognizes the importance of equal pay for work of equal value.

We started this work when we came into power in 2015, whereas no work had been done by the previous government on pay equity. The colleagues from the NDP and the Conservative Party voted against Bill C-86 on pay equity back in 2018.

Thank you, Minister, for all the work that has been done in the last few years on this.

We understand that pay equity standards are not yet found in many businesses, though many are working towards that. We know that this needs to change as we work collectively towards practices that are more equitable.

Minister, can you please speak to the benefits for the employers of transitioning to meet pay equity standards? How can employers evaluate their practices and business cultures today on their path to achieving greater equity in the workplace?

February 25th, 2021 / 11 a.m.
See context

Hamilton West—Ancaster—Dundas Ontario

Liberal

Filomena Tassi LiberalMinister of Labour

Thanks, Madam Chair.

Good morning. It's fantastic to see each and every one of you. I want to begin by thanking you for the work you are doing.

I'd like to begin by acknowledging that I am participating from the traditional territory of the Haudenosaunee and Anishinabe people, within the territory covered by the Upper Canada treaties as well as the Dish With One Spoon wampum agreement.

Madam Chair and members of the committee, thank you for inviting me to appear today to speak about the progress we are making with respect to the implementation of the Pay Equity Act.

As you know, we introduced the Pay Equity Act as part of Bill C-86 in 2018.

The act represents a big step forward in our efforts to address the portion of the gender wage gap that is due to the undervaluation of women's work. Since it received royal assent in December 2018, we have been working hard to implement it.

As part of this process, we are developing the supporting regulations required to bring the act into force.

The draft pay equity regulations were pre-published in part I of the Canada Gazette in November 2020 for a 60-day comment period. The typical comment period is 30 days. The government opted to extend the comment period so that stakeholders had ample time, given the context of the COVID-19 pandemic, to review the proposed regulations and to submit their feedback.

Pay equity is a legacy we will leave to future generations. We are being very careful to get it right.

Stakeholders were keen to provide comments on the proposed regulations. In fact, we received over 30 submissions from employers, unions, advocacy groups and individuals. At this time, we are carefully considering all the comments received in order to finalize the regulations. We should be seeing the new proactive pay equity regime come into force later this year.

Once it is in force, an employer will have three years to develop a pay equity plan and determine if employees are owed pay increases. This means that pay equity plans would be in place in 2024 in workplaces that become subject to the act the day it comes into force. Employees would immediately be owed any increases in compensation at that time as well.

I understand that at first glance three years may seem like a long time; however, I want to make a couple of points on this.

First and foremost, let us note that Canada is taking a leadership role in implementing this legislation. We firmly believe that this transformational legislation is the right thing to do as well as the smart thing to do.

Second, we must appreciate that this requires employers to understand assessments and compare the value of work, which includes factors such as skills, effort, responsibility and work conditions. This cannot be done overnight. This takes time if we want to get it right.

Third, given the current circumstances that we are in the midst of a pandemic, and businesses are shifting resources and priorities to address pressing needs, a little bit more time is required for them to adapt to the new requirements. This time will enable employers to establish their plans and put in the required time to get this right and to implement pay equity properly.

Moving forward with pay equity is a key priority for the Government of Canada. Pay equity is a significant change in how people are compensated for their work, and we all know that it's long overdue. The Pay Equity Act will help reduce the gender wage gap and bring our country a step closer to gender equality. However, achieving pay equity is a complex issue, and we must take the necessary steps to get it right.

I can assure you that while Canada continues to fight the COVID-19 pandemic, pay equity is a priority and a foundation stone for building back better. We are working together to create an economy where everyone can fulfill their full potential. Workers, employers and the Canadian economy will all benefit when women are paid for the full value of their work.

It would be my pleasure to answer any questions the committee may have.

Thank you, Madam Chair.

Natural ResourcesOral Questions

June 18th, 2019 / 2:40 p.m.
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Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, the Prime Minister dismissed six premiers' calls for changes to Bill C-69 as partisan, but he also rejected requests from the Liberal premiers of Nova Scotia and Newfoundland and Labrador for offshore oil and gas. The Liberals have already killed over $100 billion in major projects, and the Bank of Canada predicts no new energy investment after 2019.

The Liberals' shipping ban bill, Bill C-48, blocks the west coast. Their poison pill in Bill C-86 would allow the same thing on every other coast. Bill C-69 would harm the whole country.

Will the Liberals kill these anti-energy bills before it is too late?

May 28th, 2019 / 10:05 a.m.
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NDP

Brian Masse NDP Windsor West, ON

Is it possible, as this particular sitting Parliament winds down, that a response to the chair about the implementation of that could be disseminated amongst members? Whenever you can, update this and send it to the chair. I'm interested. It was under Bill C-86 that the changes were enacted. The budget includes some increases. I would think that all members here might be interested in seeing how that's progressing to the Copyright Board. We're going to continue to receive a lot of advice from people who are interested in this matter.

May 16th, 2019 / 9:45 a.m.
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Liberal

Maryam Monsef Liberal Peterborough—Kawartha, ON

We get to do this work because other people fought for us, mentors who believed in us, women and men and gender-diverse peoples who have gone out of their way and experienced significant hardships so that we have the right to vote, the right to be here; so we can have choices, whether on the careers we pursue or the people we hang out with, or on when, if, and how many babies we have, and with whom. These are hard-won gains.

Especially right now, at this moment in time, we need to double down on our diligence to protect these hard-won gains. We owe it to the courageous silence-breakers who came out through the Me Too, little girls like my nieces and the little girls and the little boys in your lives and the ones questioning their gender identity right now, to keep pushing back against the push-back, and to find ways to be kinder to one another, because this work is hard, and despite our differences, we all want the same outcome. We owe it to them to make sure that, as Canadians, we continue to set a standard for equality and women's empowerment.

A point was made earlier around the transition from Status of Women to Women and Gender Equality. We worked really hard to advocate for the department to become so. I was particularly proud when Bill C-86 passed. I worked really hard on that. I reached out to many who had been working on this for years. The fact that I was able to push it through has a lot to do with the fact that I have a Prime Minister who sees the value in gender equality as the right thing to do, and as the economically advantageous thing to do. The fact that I get to do it is because I have a team around me, in this room and beyond, and colleagues who, in their communities, get that courage and that reassurance from Canadians that we need to do more—that we can't go back. We see what's happening all over the world with women's rights, and we cannot for a moment allow Canada to follow the path of places that are once again questioning the right to having a safe and legal abortion.

A lot of work has been done that we can be proud of, but there is a lot more work ahead of us.

May 16th, 2019 / 9:05 a.m.
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Liberal

Maryam Monsef Liberal Peterborough—Kawartha, ON

No, Madam Chair, the whole thing didn't dissolve and disappear into thin air. Status of Women is the foundation upon which we have built this new department.

I will add that our government was the first to put out there, in public, mandate letters. My mandate letter hasn't changed. I am still working to advance the items that you see very clearly on the Government of Canada website that I am responsible for, with the addition, as is very clearly included in Bill C-86, of the need to expand the scope to include LGBTQ2S individuals in the work we do, and to have more rights and opportunities.

This means that this new department is not going to be vulnerable to the whims and values of the sitting government of the day. It's here to stay. The work is basically the same, with the expanded mandate, so it's very clear in Bill C-86.

May 16th, 2019 / 9 a.m.
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Liberal

Maryam Monsef Liberal Peterborough—Kawartha, ON

Parliament saw the new mandate in Bill C-86. The scope of the work has expanded to go beyond equality between women and men to include equality between sexes and around sexual orientation, gender expression and gender identity.

May 16th, 2019 / 9 a.m.
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Liberal

Maryam Monsef Liberal Peterborough—Kawartha, ON

In Bill C-86, the....

Credit Card Fairness ActPrivate Members' Business

April 10th, 2019 / 6:55 p.m.
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Louis-Hébert Québec

Liberal

Joël Lightbound LiberalParliamentary Secretary to the Minister of Finance

Madam Speaker, thank you for giving me the opportunity to speak to Bill C-419, the credit card fairness act.

I also want to thank the hon. member for Lethbridge for allowing us to talk about fairness, transparency, and financial consumer protection. These files are important to our government. I am pleased to see that the hon. member shares the concerns that have been guiding our work since the beginning of our term in 2015.

Canadians know that it is not always easy to manage their relationship with their bank and other financial institutions. That is why the government ensures that year after year there are rigorous consumer protection standards in place to reassure Canadians when they make transactions and decisions on financial products and services.

Unfortunately, some of the proposals for the credit card products in Bill C-419, as presented, could harm or confuse Canadians.

As I will describe, our government has introduced a number of new consumer protection measures in the Budget Implementation Act, 2018, No. 2, or Bill C-86, to further empower and protect financial consumers of credit card products. In fact, with the new set of rules to protect Canadians when they deal with their banks, our government has put in place the most significant change since the creation of the Financial Consumer Agency of Canada in 2001.

Further, the Financial Consumer Agency Agency of Canada, or FCAC, has a number of tools available to raise awareness of credit and consumer debt issues, and is continually working to improve the financial literacy of Canadians.

However, the bill proposes that cardholders who leave as much as 5% of their balance unpaid in a month would pay reduced interest. This type of measure could encourage Canadians to carry a balance on their credit account and increase credit card indebtedness.

In contrast, existing credit card rules encourage Canadians to use credit cards responsibly. Borrowers who pay off their entire balance monthly benefit from a 21-day interest-free grace period. This incentivizes Canadians to pay their credit card bills in full without incurring interest costs.

Also, some specific measures that protect consumers are already in place in the Bank Act as they have already been introduced as part of the comprehensive package of measures included in our government's most recent Budget Implementation Act, 2018, No. 2, or Bill C-86, which received royal assent on December 13, 2018.

For example, Bill C-419 proposes to require a bank to obtain express consent from the consumer prior to increasing the credit limit on a credit card account and provide written confirmation in cases of oral consent. This requirement is already provided for in the existing protections.

Bill C-419 also proposes to require specific information disclosures in credit card advertisements, including the annual rate of interest. This is largely duplicative of the existing requirements, including the requirement to disclose in advertisements the annual rate of interest and non-interest charges.

On another front, some of the proposals could confuse or harm Canadians. They would go against the spirit of our reforms in last year's BIA to protect consumers when they deal with their banks.

Our government has taken concrete action with Bill C-86 to strengthen the rights of consumers and better address their interests when they deal with their banks.

Our government also introduced measures to improve the ability of the Financial Consumer Agency of Canada to protect consumers. This legislation received royal assent in December 2018, and included 60 new or enhanced measures to protect bank customers.

These measures include requiring banks to have policies in place to ensure that consumers receive products and services that are appropriate to their situation; requiring banks to notify consumers who might incur fees and inform them of steps they can take to avoid those fees; creating a new prohibition against presenting misleading information to consumers; and creating a new prohibition against exerting undue pressure on consumers when selling products or services.

These measures reflect best practices in the provinces and international jurisdictions, and represent the most significant change to financial consumer protection in Canada since the creation of the FCAC in 2001.

Before introducing Bill C-86, the government consulted with stakeholders, including provinces and territories, to develop these measures. I would like to spend some time on this important point.

This bill might not be well received by the provinces and territories, and especially by Quebec. Bill C-419 has not been the subject of much consultation with stakeholders, including the provincial and territorial governments. This is not what happened with Bill C-86, the budget implementation bill, which I was talking about earlier and which was the subject of extensive consultations with the provinces and territories. Consumer protection is an area in which both provincial and territorial governments and the federal government are active.

Several provinces, including Quebec, have comprehensive financial consumer protection rules. Consulting provinces and territories is crucial before introducing new measures to avoid conflict and duplication. The Government of Quebec and the National Assembly have made it very clear that any new federal rules must first be the subject of consultations in order to ensure that they respect provincial jurisdictions and will not have any unintended consequences. This is a lesson that everyone here in the House learned in the early days of this government, including the opposition. I cannot emphasize this point enough. It is very important that there be thorough consultations with the provinces before going ahead with a bill like this. In addition, major stakeholders, such as consumer groups, must be engaged in the process to ensure that there will not be any unintended consequences for consumers.

The list of measures I have described is only one part of what the government is doing to protect Canadians' interests. Let me go into more depth about other measures the government is taking.

The first is the Financial Consumer Agency of Canada's excellent work to raise awareness of credit card and consumer debt issues while also working to improve the financial literacy of Canadians.

The FCAC offers a range of online tools, educational materials and programs intended to help Canadians make informed financial decisions. It also has tools to help consumers understand how credit cards work and how to use them responsibly. For example, the FCAC offers a credit card payment calculator that lets Canadians explore different payment options and see the cost of only making minimum payments.

Beyond credit cards, our government is taking additional action to protect and empower financial consumers. We know that when Canadians have disputes with their banks, they deserve to have access to a resolution process that is fair and impartial. That is why bank consumers can take any complaints they cannot resolve with their banks to an independent body free of charge.

To ensure that the system is meeting Canadians' needs, the Financial Consumer Agency of Canada will conduct a review by June 2019 to assess the banks' complaints handling process and the effectiveness of the external complaints bodies.

In addition, to respond to the unique needs of Canada's aging population, the Financial Consumer Agency of Canada will engage with banks and seniors' groups to create a code of conduct to guide banks in their delivery of services to Canada's seniors. The Minister of Seniors will support this engagement.

Measures the government has taken recently are well-founded and will strengthen financial consumer protection. We are working with our community and industry partners, as well as the provinces and territories.

In conclusion, I would like to reiterate that the Government of Canada is absolutely dedicated to protecting consumers in their dealings with banks and to helping all Canadians achieve and maintain financial well-being by managing money and debt wisely and planning and saving for the future.

Guided by what matters most to Canadians, the government will continue to work to ensure that more Canadians are better off as we grow our economy today and over the long term. Due to the measures already contained in Bill C-86, and the other factors I have mentioned, such as appropriate and informed consultations with the provinces and territories, I recommend that my hon. colleagues oppose Bill C-419.

Second ReadingMackenzie Valley Resource Management ActGovernment Orders

April 9th, 2019 / 12:50 p.m.
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Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I am pleased to speak to Bill C-88, another Liberal anti-resource development policy that is driving investment and businesses out of Canada, costing Canadian workers their jobs, costing indigenous people jobs and undermining their aspirations, work and their hopes for self-sufficiency, and increasing poverty rates in the north and in rural and remote regions.

Like the Liberals' no more pipelines Bill C-69, their Arctic offshore drilling ban, and their oil shipping ban bills, Bill C-48 and Bill C-86, Bill C-88 would further politicize resource development by expanding the powers of the cabinet to unilaterally block economic development and would add to the mountain of red tape proponents must overcome before they can get shovels in the ground.

The bill is also a full rejection of calls from elected territorial leaders for increased control over the development of natural resources in their territories and would cede more power and control to the federal government. Bill C-88 would reverse Conservative measures to devolve power to the territories and puts new powers in the hands of the federal cabinet. The Liberals clearly believe that Ottawa knows best.

At the AME Roundup in Vancouver in January, I was in a room full of northerners who were unanimous in their opposition to the Liberal government's “one big park” agenda for the north. There were elected officials, Inuit business leaders and corporate executives with decades of experience working with first nations in resource development in the north.

In Canada, it can take 20 years to get from the discovery of a mineral deposit to a functioning mine. The challenge in the north is that most of the mines are in the final decade of production and no new mines are in the approvals process. Resource projects and communities and residents in the north have to overcome big challenges: geography, climate, distance, access to land and a lack of services and infrastructure in the many remote and rural regions in which these projects are located. The north will pay for the Liberals' mistakes with the loss of an entire generation's economic advancement as mining completely leaves the region.

The previous Conservative government rightly viewed the north as essential to Canada's sovereignty, as a key area at stake in global security and as a place of real potential for significant economic activities today and for decades to come. Conservatives know resource development is often the only source of jobs and business potential in remote and northern regions where they are already scarce.

The Liberals meanwhile are arbitrarily creating huge swaths of protected land with little consultation. The regulatory uncertainty caused by their many bills and policies is making capital harder to access. These actions are challenging meaningful engagement and relationships with first nations in the north, including the Inuit, indigenous people and Métis communities. The Liberals' top-down paternalistic actions rob northerners of opportunities and of decision-making authority and do nothing to reduce poverty in remote northern regions of Canada.

Conservatives, by contrast, have sought to devolve power over and ownership of natural resources to the territories, enabling and empowering their abilities and their authority to manage and benefit from their rich and diverse natural resource opportunities.

In 2007, Neil McCrank was commissioned to write a report on improving the regulatory and environmental assessment regimes in Canada's north. That report, “Road to Improvement”, found the regulatory process in the Northwest Territories at the time was complex, costly, unpredictable and time-consuming. The merging of the three boards into one was a key recommendation. The report said that this approach would address the complexity and the capacity issues inherent to the current model by making more efficient use of expenditures and administrative resources.

Importantly, the report also said that this was not meant to diminish or reduce the influence that aboriginal people have on resource management in the north; rather, it was meant as an attempt to allow for this influence in a practical way, while at the same time enabling responsible resource development.

The option to merge the three separate indigenous boards into the single unified board was also included as an available option in the three modern land claim agreements signed with the first nations in the Northwest Territories.

In 2013, the previous Conservative government introduced Bill C-15 to implement that approach. That bill received overwhelming support in the House. We would not know it from the heckling across the aisle, but including from the Liberal Party. The Liberals and the NDP voted for the bill at the final stage in the House of Commons, but now the Liberals have decided to reverse it, to return to the job-killing overly complex and disjointed “Ottawa knows best” approach, setting back the hopes and aspirations of northern communities that are desperate for natural resource jobs.

It is a myth that indigenous communities, particularly in the north, are opposed to natural resource development. This myth is perpetuated by the Liberal left and elected politicians even in this House of Commons. Indigenous leaders are speaking out against anti-resource activists and in favour of the many benefits and potential for their communities. Bob McLeod, premier of the Northwest Territories, said:

All too often...[indigenous people] are only valued as responsible stewards of their land if they choose not to touch it. This is eco-colonialism.

He went on to say:

...it is oppressive and irresponsible to assume that Indigenous northerners do not support resource development.

PJ Akeeagok of Qikiqtani Inuit Association said, “Absolutely we want to participate in these industries. There’s some real exciting benefits that are out there.” Lee Qammaniq, a heavy equipment operator at Baffinland's Mary River mine, says, “I'm doing it so [my son] can have a better life.”

That ideological and heavy-handed “one big park” agenda in the north is being implemented often without consulting northerners on the use of the land around them. It is threatening the way of life of many Inuit and indigenous communities.

A little farther south, Isaac Laboucan-Avirom, chief of the Woodland Cree First Nation, says:

It frustrates me, as a first nations individual, when I have to almost beg for monies when we're living in one of the most resource-rich countries in the world. Why should our people be living in third-class or second-class communities when we are surrounded by natural resources that go into paving our roads, putting in rec centres, and so on?

In northern Saskatchewan, English River chief Marie Black, speaks about mining for many across the country in her direct assessment, saying, “It is very, very important that we go ahead and work with industry. This is for jobs.”

So many indigenous leaders are speaking out. They are leading the fight, really, about the importance of resource development to their communities to meet their needs right now and for future generations. They are fighting against the layers of Liberal anti-resource development policies and laws that violate their abilities to make decisions about their resources on and around their lands and about which they were not consulted by the Liberals in the first place.

Indigenous communities support sustainable and responsible natural resources development in their territories because it offers a real path to self-sufficiency and a real opportunity for actual economic reconciliation. It damages reconciliation when politicians make promises they do not keep, set expectations and then do not deliver, or pass laws in the apparent best interests of indigenous Canadians without actually fully consulting them.

There is no stronger example of the patriarchal, patronizing and quite frankly colonial approach of the current Liberals than their treatment of first nations who want to develop, provide services, and supply and transport oil and gas. When this Liberal Prime Minister vetoed the northern gateway pipeline, he killed benefit agreements between the project and 31 first nations that were worth $2 billion. Those 31 first nations said:

We are deeply disappointed that a Prime Minister who campaigned on a promise of reconciliation with Indigenous communities would now blatantly choose to deny our 31 First Nations and Métis communities of our constitutionally protected right to economic development.

The Liberals' shipping ban, Bill C-48, is opposed by more than 30 first nations in B.C. and in Alberta because it would kill economic opportunities for their communities. Chief Isaac Laboucan-Avirom says, “What I don't understand about this tanker moratorium is that there's no other tanker moratorium on other coastlines in Canada. You have oil coming in from Saudi Arabia, up and down the St. Lawrence River right now.”

Gary Alexcee, deputy chief of Eagle Spirit Energy Holding Ltd., said:

With no consultation, the B.C. first nations groups have been cut off economically with no opportunity to even sit down with the government to further negotiate Bill C-48. If that's going to be passed, then I would say we might as well throw up our hands and let the government come and put blankets on us that are infected with smallpox so we can go away. That's what this bill means to us.

He went on to say:

Today, the way it sits, we have nothing but handouts that are not even enough to have the future growth of first nations in our communities of British Columbia.

Then, there is the targeted northern offshore drilling ban, incredibly announced in southern Canada by this Prime Minister without any real consultation with the most directly impacted indigenous communities, their elected leaders or indigenous-owned businesses.

Duane Smith, chair and CEO of the Inuvialuit Regional Corporation, says:

We are sitting on nine trillion cubic feet of gas and it doesn't make sense for the community to truck in its energy source from 2,000 kilometres away when we should be developing these.

Northwest Territories premier, Bob McLeod, said, “It feels like a step backward.” He went on:

We spent a lot of time negotiating a devolution agreement, and we thought the days were gone when we'd have unilateral decisions made about the North in some faraway place like Ottawa, and that northerners would be making the decisions about issues that affected northerners.

He confirmed that this Prime Minister only informed him about the decision two hours before he made the announcement.

Nunavut's former premier, Peter Taptuna, has said, “We have been promised by Ottawa that they would consult and make decisions based on meaningful discussion. So far that hasn't happened.”

Even Liberal Yukon Premier Sandy Silver, whose territory is not affected by the bans, sided with his northern counterparts, saying, “When you have unilateral decisions being made in any topic on considerations that affect the North, you need to have northerners in those conversations.”

There was also, of course, the announcement made in Washington, D.C. that a large portion of Canada's territories will be prohibited from development, again with minimal or no consultation with actual northerners.

The mayor of Tuktoyaktuk recently said at a House of Commons committee:

We're proud people who like to work for a living. We're not used to getting social assistance and that kind of stuff. Now we're getting tourists coming up, but that's small change compared to when you work in oil and gas and you're used to that kind of living. Our people are used to that. We're not used to selling trinkets and T-shirts and that kind of stuff.

He specifically took issue with matters addressed by the bill, saying, “the Liberals should be helping us. They shut down our offshore gasification and put a moratorium right across the whole freaking Arctic without even consulting us. They never said a word to us.”

The Liberal approach to the north is not empowering first nations. It is trapping the Inuit and indigenous people of the north in poverty by blocking their best opportunities for jobs, for government revenues and for social services to deal with all the needs that colleagues here are raising in this debate, for healthy living and to help make life more affordable.

Northerners know that Bill C-88 would add another roadblock to resource development on top of the Liberals' “no more pipelines” Bill C-69.

While co-management of the assessment process limits some of the damage of Bill C-69, this legislation would still have a significant impact on resource development in the north. Whether it is changes to the navigable waters act, falling investment dollars in natural resource projects across Canada or limited essential services, equipment and expertise to develop projects in the north, this flawed legislation would damage the north.

Dozens of indigenous communities, along with the National Coalition of Chiefs, the Indian Resource Council, the Eagle Spirit Chiefs Council, Alberta's Assembly of Treaty Chiefs and the majority of Treaty 7 first nations, as well as hundreds of indigenous companies, are joining premiers and industry leaders in opposing Bill C-69.

Experts in indigenous law and rights are clear. Bill C-69 does nothing concrete to improve indigenous consultation, either by expanding the scope of indigenous rights or by practically increasing the measures, expectations and standards for the Crown's duty to consult. In fact, it actually weakens indigenous voices in the assessment process by removing the standing test and opening up project reviews to literally anyone, anywhere, instead of focusing on input from locally impacted Canadian citizens, indigenous communities, and subject matter and technical experts.

Mark Wittrup, vice-president of environmental and regulatory affairs at Clifton Associates, has said, “The proposed [impact assessment] process will create significant delays, missed opportunities and likely impact those that need that economic development the most: northern and Indigenous communities.”

Indigenous leaders have also noticed. Roy Fox, chief of the Blood Tribe first nation and a former CEO of the Indian Resource Council, has said, “I don't have any confidence in Bill C-69. I am fearful, and I am confident, that it will keep my people in poverty.”

Stephen Buffalo, the president and CEO of the Indian Resource Council, which currently represents more than 100 indigenous oil and gas developers, has said, “Indigenous communities are on the verge of a major economic breakthrough, one that finally allows Indigenous people to share in Canada's economic prosperity. Bill C-69 will stop this progress in its tracks.”

The more than 30 first nations in the Eagle Spirit Chiefs Council say they will take the government to court over C-69, because the bill could make it “impossible to complete a project” and because the removal of the standing test could lead to foreign interests “overriding the interests of aboriginal title holders” in Canada.

Bill C-88 is yet another example of the Liberals' pattern of adding red tape and roadblocks to resource development, which is something a Conservative government will reverse to help northern indigenous communities, all northerners and all Canadians get ahead.

The future of mining in Canada is very much related to opening up the north. Conservatives know how crucial infrastructure is to this ambition, as it can cost up to six times more to explore, and two and a half times more to build mines in remote regions. The Liberal-imposed carbon tax will hike the already expensive cost of living and cost of operations in the north even higher.

The Conservative Party has long believed that this means giving northerners the autonomy to make decisions based on their priorities and to benefit from those decisions the same way the provinces do.

In natural resources, mining is one of the areas where first nations are the most active, having secured 455 agreements in the sector between 2000 and 2017, often including priority training, hiring and subcontracting commitments. In 2016, indigenous people working in the mining sector had a median income twice as high as workers in their communities overall and nearly twice as high as that of non-indigenous people as a whole.

The problem is that mines are currently in the later years of their productive life, and there are no new mines in the approvals process. By reverting to the old, convoluted impact assessment and approvals process, the Liberals are reintroducing a major barrier to proposing and then actually completing projects in the Northwest Territories. Therefore, as I said before, the north will pay for Liberal mistakes with the loss of an entire generation's economic advancement as mining completely leaves the north.

However, there is hope. Conservatives will work to cut unnecessary red tape to bring investment and jobs back to Canada, while maintaining, enhancing and protecting Canada's reputation. Our reputation is second to none as a global leader in environmental standards, performance, and community and indigenous consultation for responsible resource development.

Conservatives know the reality is that when a resource project gets shut down in Canada, the most regulated and environmentally responsible major resource producer in the world, all it means is that the money, the businesses and the jobs go to countries with lower environmental, civil and human rights protections and standards.

The world needs more Canadian resource development, not less of it. Canada can and must still protect the environment while getting to a “yes” on major projects. When approval is given, the projects must be able to get built. Instead of turning the north into one big park, the Liberals should listen to northern first nations and hear their call for empowerment to develop their natural resources in a responsible and sustainable way.

This bill represents a major regression in the ability of northerners to manage their own natural resources to the benefit of their communities and in the best interests of the entire country. This legislation is yet another example of the Liberal government believing it knows better than local communities, indigenous communities, regions and provinces, resource developers and private sector proponents.

Conservatives will work to reverse these damaging legislative changes, eliminate the roadblocks that the Liberals are putting in the path of northern resource projects and of indigenous communities, and help northern Canadians and all Canadians get ahead.

April 9th, 2019 / 12:05 p.m.
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Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Basically, what I was mentioning was that we heard the expert testimony from various people talking about precarious employment. Two things were mentioned about precarity that really seemed to strike us. One was income security, and I don't want to say “versus” job security because I think they're very similar on a spectrum. I don't think they're diametrically opposed; I think they're more intersecting somewhere in the centre.

The legislation that I'd be referring to—and this would have to come through the government—is how exactly we can make individuals who are working precariously more secure personally, whether it's financial or through health benefits or through a variety of things in the testimony we heard.

We also heard about how important some of the recent changes are that were made by the government through things like Bill C-86, which is allowing some more flexibility for workers to work and to garner leave. That would be just one example of some of the legislation that has been introduced and was talked about around the table. That's what I was referencing.

Fraud Against SeniorsPrivate Members' Business

March 18th, 2019 / 11:50 a.m.
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Liberal

Jean Yip Liberal Scarborough—Agincourt, ON

Mr. Speaker, we are all deeply concerned with the well-being and financial security of seniors. Older Canadians have made and continue to make such valuable contributions to our communities, workplaces and our families.

Seniors have been a priority for the Government of Canada and they remain a priority with good reason. Like many countries, Canada has a growing seniors population. We are seeing a huge demographic shift, which will bring many new opportunities but also challenges that we need to prepare for.

Seniors are the fastest-growing demographic group in Canada. For the first time in Canada's history, there are more Canadians aged 65 and older than there are Canadians aged 14 years and younger. It is projected that by 2030, seniors will represent nearly a quarter of the population. That is good news. It means that Canadians are living longer and that is something to celebrate. It also means that our government must continue to develop and promote important initiatives that address seniors issues and work to promote opportunities for Canadian seniors.

I welcome the motion put forth by the hon. member for Richmond Centre concerning fraudulent activities against seniors. Fraud is a serious crime that can affect all Canadians, but it is especially disheartening when seniors fall victim to this particular crime.

Each year, countless Canadians lose millions of dollars to scammers who bombard us with online mail, door-to-door and telephone scams. Scammers target people of all backgrounds, ages and income levels, including seniors. How do they do it? Fake lotteries, Internet frauds, “get rich quick” schemes and miracle health cures are some of the popular means of separating the unwary from their money. New varieties of these scams appear all the time.

Who has not received the automated phone call claiming to be from the Canada Revenue Agency and threatening people with arrest over unpaid taxes? I know that I have received many of those calls, as have many others in my riding of Scarborough—Agincourt. Hanging up is the best way to mitigate those annoying calls. Indeed, tens of thousands of Canadians have been targeted by this scam.

I can assure everyone that the government is running outreach efforts on several fronts to help Canadians protect themselves from scammers. The Canada Revenue Agency raises awareness by providing information on its fraud prevention page on Canada.ca, sharing information through news networks, posting tips on social media, distributing pamphlets by mail and working with its partners to conduct community outreach activities.

The agency regularly provides interviews and issues tax tips to the public and to stakeholders to help individuals recognize and avoid common scams. The CRA's regional offices are particularly active through media outreach and participating in local events with community associations, especially with local police forces and seniors associations.

To support these efforts, the CRA regularly updates the “Protect yourself against fraud” web page with the newest examples of fraudulent communications, tips to recognize an actual call from the agency and printable posters that can be displayed in gift card sections or at bitcoin machines, which are common methods of payment fraudsters use to collect money from their victims.

However, our efforts go well beyond that. The Canadian Anti-Fraud Centre is also playing a role in preventing fraud. It is Canada's central repository for data, intelligence and resource material as it relates to fraud. The information gathered by the Canadian Anti-Fraud Centre is primarily used to support prevention through education and awareness, disruption of criminal activities, dissemination of intelligence, support to law enforcement and strengthening partnerships between the private and public sectors with the aim of maintaining Canada's strong economic integrity.

The Competition Bureau of Canada also produces an important guide entitled “The Little Black Book of Scams”. This booklet is available to all Canadians and it outlines many of the most common types of scams and lists the contact information of fraud fighting agencies that are there to help. It also provides tips on how to stop fraudsters in their tracks.

We also have a fraud prevention forum, which is chaired by the Competition Bureau. This forum is comprised of nearly 100 public and private sector organizations that focus on fighting fraud aimed at consumers and that, of course, includes seniors.

The Financial Consumer Agency of Canada has developed a strategy entitled “Strengthening Seniors' Financial Literacy”. One of the four goals of the strategy focuses on increasing the number of tools to combat fraud and financial abuse of seniors. The agency also issues consumer alerts on fraud, scams and sales practices.

In the same vein, we are taking action to prevent and raise awareness of elder abuse, including financial abuse. We carry out these efforts through programs like the new horizons for seniors program, which provides over $35 million each year to support community-based projects that address issues such as elder abuse.

Last, I would like to mention the recently introduced legislative amendments to Bill C-86. The bill proposes to make amendments to the Financial Consumer Agency of Canada Act and the Bank Act, which will advance the rights and interests of bank consumers, including seniors, and to ensure all Canadians benefit from strong consumer protection standards in banking. It will also provide the Financial Consumer Agency of Canada with additional tools to implement supervisory best practices. This agency will engage with banks and seniors groups to create a code of conduct to guide banks in their delivery of services to Canada's seniors. The Minister of Seniors supports these engagements.

We also restored the age of eligibility for the old age security pension and the guaranteed income supplement from 67 back to 65 years old. This is keeping about 100,000 future 65 and 66 year-old vulnerable seniors from falling into poverty.

Our Canadian seniors are valued members of our society.

We are working from a number of fronts to raise awareness of fraudulent activities for all Canadians, including seniors. As I mentioned earlier, the Government of Canada is concerned with the financial security of older Canadians.

That is why we have taken steps to help more seniors get out of poverty.

We have done this by increasing the top-up of the guaranteed income supplement. This move alone is improving financial security for almost 900,000 low-income seniors and lifting thousands of seniors out of poverty. It is our duty to support and protect them, and that is exactly what we are doing.

The Government of Canada is committed to providing Canadian seniors and future retirees greater security and a better quality of life.

Fraud Against SeniorsBoard of Internal EconomyPrivate Members' Business

March 18th, 2019 / 11:25 a.m.
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Sherry Romanado Parliamentary Secretary to the Minister of Seniors, Lib.

Mr. Speaker, it is my pleasure to rise in the House today to talk about an important issue affecting seniors. I would like to thank my hon. colleague from Richmond Centre for putting forth Motion No. 203, a motion to address fraudulent scams that target Canadians for their money, including seniors.

Unfortunately, we are all too familiar with automated phone calls posing as the Canada Revenue Agency, in which the recipient is threatened with arrest for unpaid taxes. At least 60,000 Canadians have complained about being targeted by this phone scam. I have received these calls as well.

It is certainly not the only scam out there. Every year Canadians lose millions of dollars to the activities of scammers who bombard us with online, mail, door-to-door and telephone scams. I have had many conversations with seniors in my riding of Longueuil—Charles-LeMoyne who have been affected by these scams. In fact, I had this conversation with seniors in my riding this past weekend. Everyone put a hand up when asked if they had received one of those calls.

Scammers target people of all backgrounds, ages and income levels, including seniors. The Government of Canada is taking action to help Canadians protect themselves against scammers. The Canada Revenue Agency, or CRA, raises awareness by providing information on its fraud prevention web page, sharing information with news networks, posting tips on social media, distributing pamphlets by mail and working with its partners to conduct community outreach activities.

The CRA regularly provides interviews and issues tax tips to the public and to stakeholders to help individuals recognize and avoid common scams. In fact, the CRA's regional offices are very active through proactive media outreach and participation in local events with community associations, especially local police forces and seniors' associations.

To support these efforts, the CRA regularly updates the “protect yourself against fraud” web page with the newest examples of fraudulent communications, tips to recognize an actual call from the CRA and printable posters that can be displayed in gift card sections or at bitcoin machines, which are common methods of payment fraudsters use to collect money from their victims.

In addition, a comprehensive MP kit was distributed in October of last year with the view that MPs can use the CRA's communication material, in collaboration with their local community associations, to help raise awareness and protect citizens from falling victim to tax scams.

The CRA recently ran a $25,000 Facebook campaign, from mid-August to mid-September 2018. The campaign targeted seniors and new Canadians to raise awareness about email, phone and text scams. As a result, more than two million individuals visited the CRA's anti-fraud web page to learn more.

That is not all the government is doing to protect potential victims. One of the goals of the new horizons for seniors program is to tackle elder abuse and elder fraud.

The government has rolled out a number of fraud prevention initiatives. For example, there is the Fraud Prevention Forum, which is chaired by the Competition Bureau. This group of about 100 public- and private-sector organizations fights fraud aimed at consumers, including seniors.

In addition, the Financial Consumer Agency of Canada is leading a strategy called “Strengthening Seniors’ Financial Literacy”. One of the goals of the strategy is to increase tools to combat financial abuse and fraud targeting seniors. The Financial Consumer Agency of Canada also keeps Canadians informed and issues consumer alerts about fraud, scams and sales practices.

Lastly, we recently made legislative changes to Bill C-86, which would amend the Financial Consumer Agency of Canada Act and the Bank Act to strengthen the rights and interests of bank customers, including seniors, and ensure that all Canadians benefit from rigorous consumer protection standards in the banking sector.

I would like to make one thing very clear: Our government cares about seniors. We care about their health, their well-being and their financial security. The Prime Minister's decision to appoint a Minister of Seniors certainly attests to that. As Parliamentary Secretary to the Minister of Seniors, I know first-hand how critical it is to ensure financial security for our aging population and Canada's most vulnerable.

Our government has taken several important steps to make sure our seniors are protected financially. For example, through our government's commitment to income security, the poverty rate for seniors fell from 4.9% to 3.9% between 2016 and 2017. We have increased the amount of the guaranteed income supplement by up to $947 per year for the lowest-income single seniors. While some people might think that $947 more per year does not sound like much, for seniors living in poverty, that $947 makes a big difference in covering the cost of basic necessities. It can bring peace of mind.

Increasing the guaranteed income supplement improved the financial situation of almost 900,000 low-income seniors. We also lowered the age of eligibility for the old age security pension and the guaranteed income supplement from 67 to 65. This measure will prevent some 100,000 vulnerable 65- and 66-year-olds from slipping into poverty in the future.

We worked with the provinces to enhance the Canada Pension Plan and the Régime de rentes du Québec to help ensure that tomorrow's seniors can also enjoy a secure and dignified retirement.

To add to that, we are making it easier for seniors to receive their benefits by transforming the way we deliver programs and services. In short, we are creating an opportunity to complete more transactions online using the device of their choice.

For example, using a new integrated application will allow clients to apply for both the old age security pension and the guaranteed income supplement at the same time. For citizens in my riding of Longueuil—Charles-LeMoyne who may not have access to a home computer, my office helps them to apply for these benefits.

Here is another improvement we have made to the delivery of benefits: Seniors who receive their CPP benefits by direct deposit will receive their combined OAS and CPP or RRQ benefits in the same account.

We are simplifying and streamlining our services to make sure Canadian seniors get the benefits they are entitled to receive. We know that financial security is top of mind for older Canadians, and that is why we continue to put more money into their pockets.

As well, through the various outreach and awareness campaigns I mentioned, we are taking action to warn seniors about the scammers who are trying to take away their hard-earned money.

Budget 2018 included a $116-million investment to strengthen Canada's ability to fight cybercrime by creating the National Cybercrime Coordination Unit. As we can see, there is a lot of work being led and funded by our government to support seniors, and I am very proud of that, but there is more to be done. Support for Canada's most vulnerable requires a collaborative approach with our provincial, territorial and community partners.

I look forward to working with all members of the House to make sure our aging population can live safely, enjoy good health and receive the care and financial supports that they need.

I have had the great pleasure to speak with seniors in my riding of Longueuil—Charles-LeMoyne and they have been incredibly helpful in sharing their concerns, their ideas and their advice. I want to thank them for their wise counsel.

Our seniors have paved the way for us, and together, we will be there for them.

Sitting ResumedCredit Card Fairness ActPrivate Members' Business

January 29th, 2019 / 6:55 p.m.
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Liberal

Linda Lapointe Liberal Rivière-des-Mille-Îles, QC

Mr. Speaker, I am pleased to rise to speak to Bill C-419, an act to amend the Bank Act, the Trust and Loan Companies Act, the Insurance Companies Act and the Cooperative Credit Associations Act. My colleagues may not know this, but I have studied the issue of credit cards extensively. Today's subject definitely interests me.

I would like to point out that many of the measures included in the bill before us today already appear in the budget implementation act. However, since this is very serious subject, a lot of consultation with the provinces and territories is needed.

As I said, certain specific measures are already included as part of the consumer protection measures in the Bank Act, as they were introduced as part of the package of measures included in Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, which received royal assent on December 13, 2018.

For example, Bill C-419 proposes that a bank must obtain the consumer's consent before increasing the credit limit on a credit card and provide written confirmation if consent is given verbally. That is important. They must not increase the limit on a credit card without the consent of the consumer. The written consent is important, and we have already added this requirement to existing protections.

The bill also proposes to require the disclosure of specific information in credit card advertising, including annual interest rates. This requirement is a duplication of existing requirements, including the obligation to disclose the annual interest rate and other interest expenses in advertising.

I will go back to what my colleague said at the outset. This text amends the Bank Act, the Trust and Loan Companies Act, and all other legislation I mentioned earlier. When Canadians deal with their financial institutions, they want their information to be protected, the goods and services to meet the highest standards and the fees they pay to be fair. First and foremost, people must know what they are getting themselves into with their credit card.

For more than a decade, the previous Conservative government failed to make any significant changes to Canada's consumer protection standards despite the major technological changes that would have made them possible.

In the wake of an extensive review of bank sales practices and broad consultations with the provinces and territories, our government took significant measures to promote Canadians' rights and interests. That is important. We always talk about the middle class. Credit cards are a method of payment and it is important that they be subject to the same rules and that people know how to use them.

Our government's decision to implement a new set of rules to protect Canadians when they use their financial institution represents the most significant change since the creation of the Financial Consumer Agency of Canada in 2001.

Conservative MPs refused to defend Canadian consumers when they formed the government. They have no real plan to defend them now.

The bill that our colleague introduced proposes two sets of amendments to federal legislation regarding financial institutions and credit cards. The first would limit credit card interest rates for consumers by reducing the amount of interest to be paid when a borrower pays 95% of his or her outstanding balance; by applying the lowest interest rate on purchases when interest rates change during a billing cycle; and by requiring lenders to apply all payments to the portion of the balance with the highest interest rate. This is an important part of the proposal. The Banking Act already requires banks to apply payments either to the balance with the highest interest rate or to prorate it to each unpaid balance.

The second set of amendments imposes new disclosure and business practice requirements. The bill would require that lenders disclose the total of all amounts of interest paid by a borrower for the previous 12 billing cycles and that credit card advertisements clearly indicate the interest rate, fees and any applicable discounts. Other amendments would require that cardholders give their consent before their credit limit can be increased. I spoke about that earlier. It is a very important measure. There are also amendments that would require that cardholders have an electronic means to decrease the credit limit on their card if a bank provides online banking.

Our government is working hard to protect consumers. As part of our ongoing efforts to improve the consumer protection framework, our government recently completed an important review and update of the consumer protection framework under the Bank Act and the Financial Consumer Agency of Canada Act. It is important to remember that this had not been done since 2001 and that we have been working on this since we took office.

The measures to be added to the previous Bank Act will be based on the information in two reports prepared by the Financial Consumer Agency of Canada, the FCAC. The first report consisted of an exhaustive review of bank sales practices, and the second reviewed the best practices in financial consumer protection. Our government was also guided by an important study carried out by the Standing Committee on Finance on consumer protection and bank practices.

The Standing Committee on Finance works very hard. Ten parliamentarians meet at least twice a week and work on reports. These people come to an agreement before making recommendations. They meet with many witnesses. When the Standing Committee on Finance, or any House committee, prepares a report, 10 parliamentarians study everything in the report to ensure that the recommendations made to the minister will improve legislation. This is done by mutual agreement.

Consultations are also needed with the provinces and territories to update the consumer protection rules. Bill C-419 introduced by our colleague across the aisle has not been the subject of extensive consultations with stakeholders, including provincial and territorial governments. This is in contrast to what was done to prepare for the most recent measure we put in place. Consultations with the provinces and territories are essential. I cannot stress that enough. These are not things that are easily changed. Consultations, witnesses and experts are needed. It is important to ensure that everything complies with all the previous rules, as well as the laws already in force. Every possible impact of amending legislation as complex as the Bank Act must be considered, as it governs banking institutions.

December 10th, 2018 / 5:25 p.m.
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NDP

Brian Masse NDP Windsor West, ON

That's kind of the trajectory. This is what worries me right now with Bill C-86 in terms of what we've done and also the USMCA. We have three significant balls in the air all at the same time. They're all going to land, and we're going to be dealing with it at that time.

I don't have any other questions. I'm done.

Thank you, witnesses.

December 10th, 2018 / 5:25 p.m.
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Chair, Copyright Policy Committee, Intellectual Property Institute of Canada

Bob Tarantino

I don't have any response in particular to the question you pose. I just want to commend to you the submissions that IPIC did make on Bill C-86 and also the submissions that were made in 2017 on Copyright Board reform.

December 10th, 2018 / 5:20 p.m.
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NDP

Brian Masse NDP Windsor West, ON

—that they have changes to it again. It was interesting to have their presentation about that, because it's not a holistic approach, in their opinion, and it's going to create some inconsistencies.

I know that it's a lot to throw at you right here if you haven't seen it. They talked about transparency, access and efficiency as some of the common things to be fixed. Some of those things do happen in Bill C-86, but it still hasn't gone through a review.

December 10th, 2018 / 5:20 p.m.
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Partner, Cassels Brock & Blackwell LLP, As an Individual

Casey Chisick

I've expressed in another forum certain concerns about Bill C-86 that are not necessarily the same as those that were expressed by the board. I don't think Bill C-86 is perfect by any means in terms of addressing the issues with the Copyright Board, but I do think it's a good start. That's the kind of legislation that certainly should be reviewed within a relatively short time frame—probably five years is about appropriate—to make sure that it's having its intended effect.

Perhaps I should have studied the transcript of that appearance a little more closely. Do I understand correctly that the suggestion was the act itself be scrubbed and that we start afresh?

December 10th, 2018 / 5:20 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Thank you, Mr. Chair.

It's good that we're talking copyright. I feel that I've been infringed in my right to have a repair bill passed. There was a voluntary agreement instead. Bill C-273 was amending the Competition Act and the Environmental Protection Act to provide aftermarket service for vehicles, for technicians, for information technology. It's an environmental thing, but also a competition issue and so forth. It is pretty germane to today, because even the United States was allowing this under their laws in terms of gaining this information. I could get a vehicle fixed in the United States at an after-service garage, but I couldn't get it done in Windsor. We spent several years getting that amended, but I see that it's been moved towards I guess the larger picture of things, which is the ability to alter and change devices.

I do want to move on a bit with regard to the Copyright Board. I know that some of the testimony today was kind of removed from that, but what was interesting about the Copyright Board coming here was that they asked for three significant changes that weren't part of Bill C-86. One of the things—and I'm interested to hear if there would be an opinion—was that they wanted a scrub of the actual act, which hadn't been done since 1985.

Are there any thoughts on the Copyright Board's presentation and the fact that they don't feel that Bill C-86 is going to solve all the problems they have? They had three major points. One of them was on that. Also, the protection of their ability to make interim decisions and not be overturned was another thing they mentioned. I don't know if there are any thoughts on that, but that's one of the things that I thought was interesting about their presentation in front of us.

Anybody...? If nobody has anything because you're happy with the way it's going to be, then it's going to be that way. It's fine.

December 10th, 2018 / 3:30 p.m.
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Casey Chisick Partner, Cassels Brock & Blackwell LLP, As an Individual

I'm happy to be here. Thank you for inviting me back.

My name is Casey Chisick. I'm a partner at Cassels Brock in Toronto. I'm certified as a specialist in copyright law and I've been practising and teaching in that area for almost 20 years. That includes many appearances before the Copyright Board and in judicial reviews of decisions of the board, including five appeals to the Supreme Court of Canada.

In my practice, I act for a wide variety of clients, including artists, copyright collectives, music publishers, universities, film and TV producers, video game developers, broadcasters, over-the-top services and many others, but the views I express here today will be mine alone.

I want to begin by thanking and congratulating the committee for its dedication to this important task. You've heard from many different stakeholders over the course of many months, and I agree with many of their views. When I was first invited to appear last month, I planned to focus on Copyright Board reform, but that train has now left the station through Bill C-86, so I'm going to comment today a bit more broadly on other aspects of the act. I will come back to the board, though, toward the end of my remarks.

On substantive matters, I'd like to touch on five specific issues.

First, it's my view that Parliament should clarify some of the many new and expanded exceptions from copyright infringement that were introduced in the 2012 amendments. Some of those have caused confusion and have led to unnecessary litigation and unintended consequences.

For example, a 2016 decision of the Copyright Board found that backup copies of music made by commercial radio stations accounted for more than 22% of the commercial value of all of the copies that radio stations make. As a result of the expansion of the backup copies exception, the Copyright Board then proceeded to discount the stations' royalty payments by an equivalent percentage of over 22%. It took that money directly out of the pockets of creators and rights holders, even though the copies were found in that case to have very significant economic value.

In my view, that can't be the kind of balance that Parliament intended when it introduced that exception in 2012.

Second, the act should be amended to ensure that statutory safe harbours for Internet intermediaries work as intended. They need to be available only to truly passive entities, not to sites or services that play more active roles in facilitating access to infringing content. I agree that intermediaries who do nothing more than offer the means of communication or storage should not be liable for copyright infringement, but too many services that are not passive, including certain cloud services and content aggregators, are resisting payment by claiming that they fall within the same exceptions. To the extent that it's a loophole in the act, it should be closed.

Third, it's important to clarify ownership of copyright in movies and television shows, mostly because the term of copyright in those works is so uncertain under the current approach, but I disagree with the suggestion that screenwriters or directors ought to be recognized as the authors. I haven't heard any persuasive explanation from their representatives as to why that should be the case or, more importantly, what they would do with the rights they're seeking if those rights were to be granted.

In my view, given the commercial realities of the industry, which has dealt with this for years under collective agreements, a better solution would be to deem the producer to be the author, or at least the first owner of copyright, and deal with the term of copyright accordingly.

Fourth, Parliament should reconsider the reversion provisions of the Copyright Act. Currently, assignments and exclusive licences terminate automatically 25 years after an author's death, with copyright then reverting to the author's estate. That was once standard in many countries, but it's now more or less unique to Canada, and it can be quite disruptive in practice.

Imagine spending millions of dollars turning a book into a movie or building a business around a logo commissioned from a graphic designer only to wake up one day and find that you no longer have the right to use that underlying material in Canada. There are better and more effective ways to protect the interests of creators, many of whom I represent, without turning legitimate businesses upside down overnight.

Fifth, the act should provide a clear and efficient path to site blocking and website de-indexing orders on a no-fault basis to Internet intermediaries and with an appropriate eye on balance among the competing interests of the various stakeholders. Although the Supreme Court has made clear that these injunctions may be available under equitable principles, the path to obtaining them is, in my view, far too long and expensive to be helpful to most rights holders. Canada should follow the lead of many of its major trading partners, including the U.K. and Australia, by adopting a more streamlined process—one that keeps a careful eye on the balance of competing interests among the various stakeholders.

In my remaining time, I'd like to address the recent initiatives to reform the operations of the Copyright Board.

The board is vital to the creative economy. Rights holders, users and the general public all rely on it to set fair and equitable rates for the uses of protected material. For the Canadian creative market to function effectively, the board needs to do its work and render its decisions in a timely, efficient and predictable way.

I was glad to see the comprehensive reforms in Bill C-86. I'm also mindful that the bill is well on its way to becoming law, so what I say here today may not have much immediate impact. For that reason, and in the interest of time, I'll just refer you to the testimony I gave before the Senate banking committee on November 21. I'll then touch on two specific issues.

First, the introduction of mandatory rate-setting criteria, including both the public interest and what a willing buyer would pay to a willing seller, is a very positive development. Clear and explicit criteria should result in a more timely, efficient and predictable tariff process. That's important because unpredictable rates can lead to severe market disruption, especially in emerging markets, like online music.

I'm concerned that the benefits of the provision in Bill C-86 will be undermined by its language, which also empowers the board to consider “any other criterion” it deems appropriate. An open-ended approach like this will create more mandatory boxes for the parties to check, in addition to things like technological neutrality and balance, which the Supreme Court introduced in 2015, but it won't guarantee that the board won't simply discard the parties' evidence in favour of other, totally unpredictable factors. That could increase the cost of board proceedings, with no corresponding increase in efficiency or predictability.

If it's too late to delete that provision from Bill C-86, I suggest that the government move quickly to provide regulatory guidance as to how the criteria should be applied, including what to look for in the willing buyer, willing seller analysis.

Last, very briefly, I understand that some committee witnesses have suggested that rather than doing it voluntarily, as the act currently provides, collectives should be required to file their licensing agreements with the Copyright Board. I agree that having access to all relevant agreements could help the board develop a more complete portrait of the markets it regulates. That's a laudable goal.

However, there's also an important counterweight to consider: Users may be reluctant to enter into agreements with collectives if they know they're going to be filed with the Copyright Board and thus become a matter of public record. The concern would be, of course, that services in the marketplace are operating in a very competitive environment. The last thing they want to do is make the terms of their confidential agreements known to everyone, including their competitors. I can say more about this in the question and answer session to follow.

Thank you for your attention. I do look forward to your questions.

December 5th, 2018 / 4:55 p.m.
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Director General, Marketplace Framework Policy Branch, Department of Industry

Mark Schaan

We can both take that.

Yes, the legislative effort related to Bill C-86 was conceived and worked on by the Department of Canadian Heritage, the Department of Innovation, Science and Economic Development Canada, and the Copyright Board.

December 5th, 2018 / 4:55 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Thank you.

My question is for Mr. Simard. Did you consult the Copyright Board, and did they make these suggestions to your department for Bill C-86?

December 5th, 2018 / 4:50 p.m.
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Conservative

Dane Lloyd Conservative Sturgeon River—Parkland, AB

Madame Théberge, do you think we missed an opportunity? Your second recommendation was to clarify the binding nature of the board tariffs. Do you think that in Bill C-86 we missed the opportunity, and that maybe this committee could, in part of its recommendations, encourage government to further clarify the binding nature of board tariffs and licences?

December 5th, 2018 / 4:50 p.m.
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Conservative

Dane Lloyd Conservative Sturgeon River—Parkland, AB

Thank you.

Thank you to the witnesses.

Madame Théberge, you noted in your written testimony here that you're recommending we change the act to grant the board the power to issue interim decisions. To your knowledge, why wasn't this included in Bill C-86?

December 5th, 2018 / 4:45 p.m.
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Vice-Chair and Chief Executive Officer, Copyright Board

Nathalie Théberge

I'll start with a few preliminary comments, and then I'll turn to the secretary general, who is one of the key persons involved in managing the process before the board. A lot of numbers fly around the board and a lot of myths as well.

The seven years assumes no stop between the beginning and the end of the process, but in reality a process can be stop-and-go. There are moments during the process when parties come to the board and say to hold off, because they're negotiating. That adds time to the clock.

That being said, we're fully conscious that there's pressure for the board to render decisions more quickly, hence the proposals that were presented by the government in Bill C-86, which would put in regulation a specific time frame for one piece of the process, which is the piece of the process that the board controls, the rendering of decision.

Gilles, I don't know if you want to add something.

December 5th, 2018 / 4:35 p.m.
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Director General, Marketplace Framework Policy Branch, Department of Industry

Mark Schaan

Thank you, Mr. Cappuccino.

Allow me to also mention that, as committed in the government's intellectual property strategy, Bill C-86 proposes a change to the notice and notice provisions of the Copyright Act to protect consumers while ensuring that the notice and notice regime remains effective in discouraging infringement.

The proposed amendments would clarify that notices that include settlement offers or payment demands do not comply with the regime. This was an important shift, given the consensus of all parties in the copyright system, and the continued fear of consumer harm in the face of the continued use of settlement demands.

In closing, we would like to applaud the committee for the thorough review of the Copyright Act that you've conducted so far. We've particularly noted members' efforts to raise issues related to indigenous traditional knowledge throughout the exercise. Such probing and open consultations are invaluable to the development of strong public policy.

We would be pleased to answer your questions.

Thank you.

December 5th, 2018 / 4:35 p.m.
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Director, Copyright Policy, Creative Marketplace and Innovation Branch, Department of Canadian Heritage

Kahlil Cappuccino

Thanks very much, Mark.

Mr. Chair and distinguished members of the committee, as the ministers of ISED and PCH committed to in their first letter to your committee in December 2017, and pursuant to public consultations and previous studies by committees of both the House of Commons and the Senate, the government has taken comprehensive action to modernize the board.

First, budget 2018 increased by 30% the annual financial resources of the board. Second, the government appointed a new vice-chair and CEO of the board, Madame Nathalie Théberge, who is sitting with us, as well as appointing three additional members of the board. With these new appointments and additional funding, the Copyright Board is on its way and ready for modernization. Third, Bill C-86, which is now before the Senate, proposes legislative changes to the Copyright Act to modernize the framework in which the board operates.

As numerous witnesses stated to you as part of your review, more efficient and timely decision-making processes at the Copyright Board are a priority. The proposed amendments in the bill seek to revitalize the board and empower it to play its instrumental role in today's modern economy.

It would do this by introducing more predictability and clarity in board processes, codifying the board's mandate, setting clear criteria for decision-making and empowering case management. To tackle the delays directly, the proposed amendments would require tariff proposals to be filed earlier and be effective longer, and a proposed new regulatory power would enable the Governor-in-Council to establish decision-making deadlines. Finally, the proposed amendments would allow direct negotiation between more collectives and users, ensuring that the board is only adjudicating matters when needed, thus freeing resources for more complex and contested proceedings.

These reforms would eliminate barriers for businesses and services wishing to innovate or enter the Canadian market. They would also better position Canadian creators and cultural entrepreneurs to succeed so they can continue producing high-quality Canadian content. Overall, these measures would ensure that the board has the tools it needs to facilitate collective management and support a creative marketplace that is both fair and functional.

However, the changes do not address broad concerns that have been raised around the applicability and enforceability of board-set rates. Certain stakeholders asked that the government clarify when users have to pay rates set by the board and provide stronger tools for enforcement when those rates are not paid. The ministers felt that these important issues were more appropriately considered as part of the review of the Copyright Act, with the benefit of the in-depth analysis being undertaken by this committee and the Standing Committee on Canadian Heritage.

We look forward to recommendations that will help foster sustainability across all creative sectors, including the educational publishing industry.

At this point, I'd like to hand things back over to Mark to conclude.

December 5th, 2018 / 4:20 p.m.
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Nathalie Théberge Vice-Chair and Chief Executive Officer, Copyright Board

Mr. Chair and distinguished members of this committee, thank you.

My name is Nathalie Théberge. I am the new vice-chair and CEO of the Copyright Board, as of October. I will be speaking today as CEO.

As you said, Gilles McDougall, secretary general, and Sylvain Audet, general counsel, both from the board, are with me today. I would like to thank the committee for giving us the opportunity to speak on the parliamentary review of the Copyright Act.

First, I'd like to provide a reminder: The Copyright Board of Canada is an independent, quasi-judicial tribunal created under the Copyright Act. The board's role is to establish the royalties to be paid for the use of works and other subject matters protected by copyright, when the administration of these rights is entrusted to a collective society. The direct value of royalties set by the board's decisions is estimated to almost $500 million annually.

The board sits at the higher end of the independent spectrum for administrative tribunals. Its mandate is to set fair and equitable tariffs in an unbiased, impartial and unimpeded fashion. This is not an easy task, especially as information required to support the work of the board is not easily acquired. The board is on the onset of a major reform following the introduction of changes to the Copyright Act imbedded in the Budget Implementation Act, Bill C-86.

If I may, I would like to state how committed the board is towards implementing the reform proposals. Of course, the impact of these proposals will take some time to assess as there will be a transition period during which all players involved, including the board and the parties that appear before it, will need to adapt and change their practices, behaviours and, to some extent, their organizational culture.

This transition period is to be expected due to the ambitious scope of the reform proposals, but we believe that the entire Canadian intellectual property ecosystem will benefit from a more efficient pricing system under the guidance of the Copyright Board.

However, reforming the board is not a panacea for all woes affecting the ability for creators to get fairly compensated for their work and for users to have access to these works. As such, the board welcomes the opportunity to put forward a few pistes de réflexion to the committee, hoping its experience in the actual operationalization of many provisions of the Copyright Act may be useful.

Today, we would like to suggest three themes the committee may want to consider. We were very careful as to choose only issues of direct implication for the board's mandate and operations, as defined in the Copyright Act and amended through the Budget Implementation Act 2018, No. 2, currently under review by Parliament.

The first theme relates to transparency. Committee members who are familiar with the board know that our ability to render decisions that are fair and equitable and that reflect the public interest depends on our ability to understand and consider the broader marketplace. For that, you need information, including on whether other agreements covering similar uses of copyrighted material exist in a given market. This is a little bit like real estate, where to properly establish the selling price of a property you need to consider comparables, namely, the value of similar properties in the same neighbourhood, the rate of the market, etc.

Currently, filing of agreements with the board is not mandatory, which often leaves the board having to rely on an incomplete portrait of the market. We believe that the Copyright Act should provide a meaningful incentive for parties to file agreements between collectives and users. Some may argue that the board already has the authority to request from parties that they provide the board with relevant agreements. We think that legislative guidance would avoid the board having to exert pressure via subpoena to gain access to those agreements, which in turn can contribute to delays that we all want to avoid.

More broadly, we encourage the committee to consider in its report how to increase the overall transparency within the copyright ecosystem in Canada. As part of the reform, we will do our part at the board by adding to our own processes steps and practices that incentivize better sharing of information among parties and facilitate the participation of the public.

The second theme relates to access. We encourage the committee to include in its report a recommendation for a complete scrub of the act, since the last time it was done was in 1985. Successive reforms and modifications have resulted in a legislative text that is not only hard to understand but that at times appears to bear some incoherencies. In a world where creators increasingly have to manage their rights themselves, it is important that our legislative tools be written in a manner that facilitates comprehension. As such, we offer as an inspiration the Australian copyright act.

We further encourage the committee to consider modifying the publication requirements in the orphan works regime. Currently, where the owner of copyright cannot be located, the board cannot issue licences in relation to certain works, such as works that are solely available online or deposited in a museum. We believe the act should be amended to permit the board to issue a licence in those cases, with safeguards.

Finally, our third theme relates to efficiency. The board reform as proposed in Bill C-86 would go a long way in making the tariff-setting process in Canada more efficient and predictable and ultimately a better use of public resources. I believe the committee has heard the same message from various experts.

We recommend two other possible means to achieve these objectives.

First, we encourage the committee to consider changing the act to grant the board the power to issue interim decisions on its motion. Currently, the board can only do so on application from a party. This power would provide the board with an additional tool to influence the pace and dynamics of tariff-setting proceedings.

Second, we encourage the committee to explore whether the act should be modified to clarify the binding nature of board tariffs and licences. This proposal follows a relatively recent decision of the Supreme Court of Canada where the court made a statement to the effect that when the board sets royalties within licences in individual cases—the arbitration regime—such licences did not have a mandatory binding effect against users in certain circumstances. Some commentators have also expressed different views on how that statement would be applicable to the tariff context before the board.

We are aware that this is a controversial issue, but would still invite you to study it if only because parties and the board spend time, efforts and resources in seeking a decision from the board.

On that happy note, we congratulate each member of the committee for the work accomplished thus far, and thank you for your attention.

Budget Implementation Act, 2018, No. 2Government Orders

December 3rd, 2018 / 7:10 p.m.
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Liberal

The Speaker Liberal Geoff Regan

I declare the remaining elements of the bill carried.

The House has agreed to the entirety of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures at third reading stage.

(Bill read the third time and passed)

Budget Implementation Act, 2018, No. 2Government Orders

December 3rd, 2018 / 6:55 p.m.
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Liberal

The Speaker Liberal Geoff Regan

Pursuant to order made on Tuesday, November 27, 2018, the House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C-86.

The question is on the amendment. Shall I dispense?

The House resumed from November 27 consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the third time and passed, and of the amendment.

Mackenzie Valley Resource Management ActGovernment Orders

December 3rd, 2018 / 3:40 p.m.
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Conservative

Jim Eglinski Conservative Yellowhead, AB

Madam Speaker, the hon. member and I have had many discussions. I do not think we are too far off on our feelings of the north. I have a fondness for the people of the north and I do not believe that we should be plundering any part of northern Canada for its wealth. It should be left to the people of the north to look after themselves and be the stewards of the land

I object to this bill because its overtones are so similar to Bill C-48, Bill C-86 and others. As well, it takes the control away from the people. That is where my concerns come in. It takes the control away from the people and local government officials like the hon. member's brother who is a very well-known and respected person in the Northwest Territories. I feel they are a bit concerned about this bill, as I am.

Mackenzie Valley Resource Management ActGovernment Orders

December 3rd, 2018 / 3:30 p.m.
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Conservative

Jim Eglinski Conservative Yellowhead, AB

Madam Speaker, here we are again with another anti-energy policy from the current Liberal government that is driving energy investment out of Canada, costing Canadian workers their jobs and significantly increasing poverty in certain regions, especially in the north.

I am speaking to Bill C-88, because I am concerned that the changes it would make would politicize oil and gas extraction by expanding the powers of this Liberal government to block economic development. It would take local control and environmental stewardship away from the aboriginal people of the region and would inhibit local, territorial governments from doing what is best for the people of the area. I am speaking of the Mackenzie Delta.

I see that my friend across the way is smiling, because he is very proud of the region he has grown up in.

Bill C-88 is not just another Liberal anti-energy bill, like Bill C-48, Bill C-69 and Bill C-86. These bills could block all future pipelines, giving the government the authority to unilaterally shut down natural resource development. It is now systematically going after the Northwest Territories, as it has done with our western provinces.

Only a few people get to visit the Mackenzie Delta or travel the pristine waters of the Mackenzie River. Those who do find it breathtaking, due to its vast biological and ecological formations.

When Sir Alexander Mackenzie travelled the Mackenzie River in 1789, he was astonished by its sparse population and the pristine beauty of the region. As members may know, the river was named after him. That is for a few of my Liberal colleagues across the way, except for the member for the Northwest Territories.

I count myself fortunate, no, I should say I count myself blessed and lucky, to have been able to travel from the start of the Peace and Athabasca rivers, which are the headwaters of the Mackenzie River, and I have followed it as it flows, leading to the Beaufort Sea in the north. This pristine area, rich in ecological wealth, covers an area of just under two million square kilometres, and its drainage basin encompasses one-fifth of Canada. This is the second-largest river in North America, next to the Mississippi River.

Oil and gas have been part of this region since 1921. There are also mines of uranium, gold, diamond, lead and zinc in the area. During World War II, a pipeline was built from Norman Wells to Whitehorse, in Yukon. It carried crucial petroleum products needed during World War II and helped Canada and the United States build the Alaska Highway, which significantly helped Canada during the war. It is called the Canol Pipeline, and it still exists today.

At a very young age, I personally met and was inspired by one of Canada's great leaders. That was Mr. John Diefenbaker, whose statue sits at the rear of this building. He was a leader of great wisdom and vision who led our country to where it is today. I remember he once said, “I see a new Canada—a Canada of the North.” This is what he thought of and envisioned. He spoke of giving the people of northern Canada the right to develop their resources, protect their environment and maintain and develop strong economies in the region. Diefenbaker saw the need for the people of the north to do this, not the Government of Canada.

One of Canada's leading novelists of the same era, Hugh MacLennan, a Liberal visionary, noted at the time that by 2061, the Mackenzie Delta would have three million people living along the banks and shores of the river and that people's pockets would be full of money from the wealth of the region. He said there would be at least two universities built in the Mackenzie Delta area.

That Liberal's prediction was wrong, and the actions of my Liberal friends across the way from me are also wrong.

There are roughly 10,000 people living along the Mackenzie River Delta, in places like Wrigley, Tulita, Norman Wells, Fort Good Hope, Fort McPherson, Inuvik, Aklavik and Tuktoyaktuk. I have been to those communities and I know the people.

There are 68 aboriginal groups that also live in this region. I have had the pleasure and honour of gathering and socializing with them to discuss their issues. We used to gather at the Petitot River. I have been there a number of times. To me, they are the real stewards of the land, not organizations like CPAWS, the David Suzuki Foundation or others that have the ear of the environment minister. The aboriginal groups are the real Canadian environmentalists and the real stewards of the land.

Recently, Merven Gruben, the mayor of Tuktoyaktuk, testified at the committee on indigenous and northern affairs. He said that the Liberal government should be helping northern communities. Instead, it shut down the offshore gasification and put a moratorium right across the whole Arctic without even consulting communities. He also said that people in his town like to work for a living and are not used to getting social assistance. Now, all they are getting are the few tourists coming up the new highway. That makes for small change compared to when they worked in the oil and gas sector.

They are the people of the Mackenzie River Delta. Our Conservative government gave them the power to manage their resources in a true, healthy and respectful manner that only the people of the region can do. This was done through Bill C-15, which created the Northwest Territories Devolution Act of 2014.

Our former Conservative government viewed the north as a key driver of economic activity for decades to come, but this Liberal government is arbitrarily creating huge swaths of protected land with little or no consultation with aboriginal communities, while other Arctic nations are exploring possibilities within their respective areas.

Bill C-88 reveals a full rejection of calls from elected territorial leaders for the increased control of their natural resources. It consists of two parts. Part A would amend the Mackenzie Valley Resource Management Act of 1998. Part B would amend the Canada Petroleum Resources Act to allow the Governor in Council to issue orders. That scares me.

What about the provisions that were introduced by the former Conservative government within Bill C-15's Northwest Territories Devolution Act? Bill C-88 would reverse these changes, even though Liberal MPs voted in favour of Bill C-15 when it was debated in Parliament, including the Prime Minister.

Now the Liberals want to reverse the former government's proposal to consolidate the four land and water boards in the Mackenzie Valley into one. I believe this is so that they can take control. The creation of a single board was a key recommendation that would address “complexity and capacity issues by making more efficient use of expenditures and administrative resources” and would allow for administrative practices to be “understandable and consistent”. When Bill C-15 was debated in the House of Commons in 2013 and 2014, the restructured board was included in the final version of the modern land claim agreements.

The Liberals would further politicize the regulatory and environmental processes for resource extraction in Canada's north by giving cabinet sweeping powers to stop projects on the basis of “national interest”. This reveals a rejection of calls from northerners for increased control of their national resources.

The Liberal government should leave the people of northern Canada with their resources and let them be their own environmentalists and stewards of the land. They know it the best.

Consumer ProtectionOral Questions

December 3rd, 2018 / 2:55 p.m.
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Bloc

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

Mr. Speaker, Quebec is the only jurisdiction that adequately protects consumers from banks. Under Bill C-86, the Liberals seem to be protecting the banks by preventing any recourse to Quebec's Office de la protection du consommateur.

The National Assembly unanimously calls on the federal government to clarify in Bill C-86 that Quebec's legislation will continue to apply to banks.

Will the 40 federal Liberal MPs protect Quebec consumers or will they choose Bay Street and the big banks?

Consumer ProtectionOral Questions

November 30th, 2018 / noon
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Louis-Hébert Québec

Liberal

Joël Lightbound LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, as I just mentioned, we have always been committed to offering Canadian consumers as much protection as possible when it comes to their financial services, while still respecting provincial jurisdictions. That continues to be the case with Bill C-86.

Consumer ProtectionOral Questions

November 30th, 2018 / noon
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Bloc

Marilène Gill Bloc Manicouagan, QC

Mr. Speaker, this is the second time that this banker's government has tried to deprive Quebec consumers of their rights.

With Bill C-86, there is a real possibility that Quebec's Office de la protection du consommateur will no longer have any recourse against banks. That means that people who are getting gouged will no longer have any free recourse and will have to pay to take their bank and its army of lawyers to court.

When will the 40 Liberal MPs from Quebec start defending their constituents instead of being the banks' lackeys?

Consumer ProtectionOral Questions

November 30th, 2018 / 11:55 a.m.
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Bloc

Monique Pauzé Bloc Repentigny, QC

Mr. Speaker, the National Assembly just unanimously adopted a motion condemning the provisions in Bill C-86 that provide weaker consumer credit protection than Quebec laws and will cause confusion about which rules apply to certain insurance contracts.

The motion calls on the government to ensure that provisions in Bill C-86 governing these two sectors will not apply where Quebec standards are already in place.

Will the government amend Bill C-86 to clarify that Quebec laws will continue to apply in full?

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 5 p.m.
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Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Mr. Speaker, as the federal member of Parliament for Renfrew—Nipissing—Pembroke, I welcome this opportunity to inform Canadians about the deteriorating state of the nation's finances. It is clear, as evidenced by the fall economic update, just how out of touch the member for Toronto Centre as finance minister is with the concerns of ordinary, hard-working, middle-class Canadians.

A Conservative government believes in clean air, low taxes and a healthy economy. A clean environment and well-paying jobs are only possible when taxpayers are treated with respect. The out-of-control deficit policies of the Liberal Party stifle competitiveness and job-creating investment. A sustainable environment and a sustainable economy are only possible with a sustainable government.

The deficit budgets of this government are not sustainable. The government is not sustainable. We cannot spend more than we take in. This Liberal obsession with running huge budgetary deficits will only end badly. They always do.

The last time Canadians heard rhetoric about modest deficits was when the prime minister's father was on his throne. There is a reason Trudeau senior is known as the king of deficits. He started the cycle of spending more than what is collected in taxes. It was only supposed to be a temporary measure. He was the one who brought in the hated Liberal NEP, the national energy policy. Just like his father, the current Prime Minister was greeted by protesters when he visited Alberta.

The NEP was the first policy to load a carbon tax onto fossil fuels. Energy in the form of hydroelectricity was exempted from the NEP taxes that were collected to pay for Liberal bad spending. Today, the headline in the Financial Post reads “...we're facing a made-in-Canada energy crisis”. There is no doubt about it. This crisis was planned.

There is hope. At the end of senior Trudeau's reign, in the process of kicking the Liberals out of office, Canadians elected the most Conservatives to Parliament since Confederation in 1867. That led to the new Conservative government of the day starting the hard work of bringing the nation's finances back into order by balancing the current account deficit left from the previous government. That still was not enough.

Jean Chrétien, who at least understood that we could not spend more than we have forever, took the drastic measures known as the “decade of darkness”. In the process of slashing 60,000 public service jobs, programs and services were cut. Cuts in health care transfers meant hospital wait times increased. People in my riding were forced to go without a family doctor, thanks to the Liberal budget cuts. The budget was eventually balanced by the Liberals on the backs of ordinary Canadians. Deficit budgets do have consequences.

While the Conservatives took the political heat to bring in a consumption tax, the Chrétien Liberals campaigned against it before embracing it. During the Conservative government of Stephen Harper, they voted against our lowering the GST; the Liberals liked it so much as a revenue source. A carbon tax is a consumption tax.

My riding of Renfrew—Nipissing—Pembroke is home to Garrison Petawawa, which is now Canada's largest army base. Before I was elected as the local member of Parliament, the future of the base was uncertain. That changed when the Conservatives were in government. Rather than balance the budget on the backs of our soldiers, Conservatives took a balanced approach, lowering taxes to increase revenues, putting more people back to work while using any surpluses to pay down the deficit and stabilize services to Canadians. The decade of darkness of the Liberal budget cuts was particularly harsh for women and men in uniform. Running continual budget deficits does have consequences.

The decision by the Liberal Party to play politics with military procurement is similar to what is happening today with the naval frigate replacement and the jet replacement programs, which would result in the unnecessary loss of lives in Afghanistan a decade later. The decision by the Liberal Party to cancel the EH101 helicopter to replace the then 40-year-plus-old Sea King helicopter meant Canadians would be forced to travel on roads in Afghanistan mined with improvised explosive devices. Those same terrorist bomb-makers, like Omar Khadr, are rewarded with multi-million dollar payoffs while our veterans, who were injured by those bombs, wait for justice.

Without strategic lifts, soldiers died on the bomb-laden roads. It was not until the Harper Conservative government purchased new Chinook helicopters that the death count dropped. I pray for the soldiers and their families that the decision to put off buying the proper equipment for our soldiers will not result in the unnecessary loss of life again.

We owe it to our soldier to provide them with the proper equipment when we ask them to go into harm's way. Budget deficits have consequences.

The bad news contained in Bill C-86 and the budget deficit increases contained in that legislation is the Liberal policy to load today's economy with future tax increases that will burden our children.

The debt burden for our children will be our burden first, as the federal carbon tax starts in a little more than a month. Every Canadian who understands anything about running a household knows that good times do not last. Our parents and our grandparents saved during the good times because they had lived through bad times.

Why does the federal government insist on huge deficits, spending dollars we do not have, by borrowing billions of dollars? The answer is “carb-a-geddon”.

Canadians may have heard of Apocalypse Now or the term Armageddon and understand what is meant by carb-a-geddon. Carb-a-geddon, the meltdown of the Canadian economy through carbon taxation, will reveal itself as the federal government begins to collect these new consumption taxes. These taxes are set to increase automatically every year.

The finance minister was forced to admit, after he delivered his economic statement, the budget would never be balanced as long as his party held power. Secret documents prepared by the finance department confirmed the truth about carbon taxes. They hurt Canadian families. The Liberals refusal to release these documents to the Canadian public confirms they have something to hide. Carb-a-geddon is real.

The worst part about carbon taxes is that taxing carbon dioxide in Canada does not help the environment whatsoever. The environment is a cloak the government wears for every bad policy. Adopting carbon taxes in Canada actually raises global carbon emissions by offshoring economic activity from relatively environmentally-friendly places like Canada to places with lax environmental laws.

Data from the World Bank reveals that China and other developing countries produce far more carbon dioxide than do western nations. China is currently building hundreds of new coal-fired plants, which will ensure its C02 emissions continue to rise for decades to come.

Every factory like GM, pushed out of Canada because of the Liberal carbon tax, will actually increase global emissions dramatically, and this will continue to be the case for decades to come.

The lntergovernmental Panel on Climate Change (IPCC) has declared that for a carbon tax to be effective in saving the climate from its apocalyptic warming, the carbon tax would have to start at least at $135 a tonne and rise to $5,500 a tonne by 2030. The Liberals' carbon tax currently starts at $20 and rises to $50. Projections now show that Liberal commitments in 2016's Paris climate agreement will not be met unless the carbon tax is at least $200 a tonne to start.

Under the Liberals' carbon tax pricing scheme, additional taxes will be charged to fuel up our autos or heat our homes, with a charge on non-renewable fuels for fuel producers, distributors and importers. Large industrial emitters of pollution, big business, are exempted from the new carbon tax scheme.

A carbon price of 4.42¢ per litre will apply to gasoline as of April 2019 and will rise by 11¢ per litre by April 2022. While the Liberal Party intends to provide an election bribe in some form of rebate, the rebates represent about 30% of the carbon tax the federal government will collect, as far as we know today.

Pretending this new carbon tax grab has anything to do with "fighting climate change" is just a gimmick to raise taxes.

The House resumed consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures be read the third time and passed, and of the amendment.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 4:50 p.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I thank my colleague very much for doing some research for me. I, too, did some research beforehand to see if there were any. I even searched the electronic document using the French words “agriculture” and “agroalimentaire” and their corresponding English terms “agriculture” and “agri-food”, but to no avail. However, technology can sometimes let us down, and so, for the benefit of my constituents, I wanted to check to see if this important document, Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, mentioned agriculture and agri-food.

I take my NDP colleague at her word. I do not do so often, but, today, I will. I agree with her. There is absolutely nothing about agriculture and agri-food in this document. That is what I was implying with my silence. It is sometimes worth taking a moment of silence to think and reflect. I would have liked the government opposite to do just that before introducing a 854-page bill, which does not mention or have any measures for agriculture and the agri-food sector.

I will obviously be voting against this bill and I promise to do so in silence.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 4:40 p.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I will be sharing my time with the member for Renfrew—Nipissing—Pembroke. I look forward to her speech.

Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, is 854 pages long. Today we are being asked to examine it despite the fact that, several years prior to the Liberals sitting on that side of the House, they repeatedly denounced omnibus bills and budget bills that were so long. It is not easy for parliamentarians to study a bill such as this.

I am the official opposition critic for agriculture and agri-food, so I want to look at what is in Bill C-86 for agriculture and agri-food.

The House resumed consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the third time and passed, and of the amendment.

Business of the HouseOral Questions

November 29th, 2018 / 3:05 p.m.
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Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Mr. Speaker, this afternoon, pursuant to the order made Tuesday, November 27, we will debate the 66th report of the Standing Committee on Procedure and House Affairs.

We will then finish the debate on Bill C-86, the second budget implementation bill, at third reading.

Tomorrow morning, we will start the second reading debate of Bill C-87, an act respecting the reduction of poverty.

On Monday, we will commence debate at second reading stage of Bill C-88, concerning the Mackenzie Valley.

Last, next Tuesday shall be the final allotted day in the supply cycle.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 1:55 p.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, in defence of the hon. member for Kingston and the Islands raising his voice, I would say it is because he understands that the climate crisis is urgent and we need to do more.

The member put out there that Bill C-86 has targets for poverty reduction built into legislation. However, unlike the U.K. and unlike New Zealand, we do not have targets for greenhouse gas reduction and we do not have our plan in legislation. Would he agree with me that it is time we ramped up our ambition and put it into the law?

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 12:55 p.m.
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Winnipeg South Manitoba

Liberal

Terry Duguid LiberalParliamentary Secretary for Status of Women

Mr. Speaker, I welcome the opportunity to speak to Bill C-86, the budget implementation act, 2018, no. 2, and particularly to speak to division 18, which would establish the department for women and gender equality, or WAGE for short. Creating the department for women and gender equality would modernize and formalize the important roles of the Status of Women Canada agency and of its minister and provide a secure base from which to reinforce and expand the work that Status of Women Canada has been doing for decades.

Canada has had a minister responsible for status of women since 1971, but it was only under our Prime Minister that the first minister fully dedicated to status of women was appointed. Since its early days as an agency, Status of Women Canada has grown into a centre of gender expertise. It has led the way in areas such as gender-based research and gendered policy development and analysis, as well as intergovernmental coordination and international leadership on gender issues.

Through its women's program, the agency has also led the way in providing funding support for equality-seeking organizations across the country that work at increasing women's economic security and prosperity, encouraging women's leadership and democratic participation, and ending violence against women and girls.

Our government has made gender equality one of its top priorities. Transforming Status of Women Canada into a full department reflects the central importance this government places on gender equality. Gender equality, we know, is not a women's issue; it is an issue for everyone. If we get this right, we all benefit. This is not just a philosophical or theoretical observation; it is based on our actual economic performance.

Labour force participation rates of women have grown tremendously over the past few decades from just 22% in 1950 to well over 80% today. Bringing more women into the workforce has been one of the most powerful drivers of our economic growth. In fact, increasing numbers of women in the workforce over the last 40 years has accounted for approximately one-third of the per capita growth in Canada's real gross domestic product. Having more women in the workforce has not only opened up new doors of opportunities for women; it has also driven economic growth, boosted family incomes, and helped more and more families join the middle class. Canada today is a much richer, healthier and more equitable country than it was just a few decades ago.

Despite our progress, that door of opportunity is not yet fully opened. There are still too many barriers to the full participation of women. There are still too many missed opportunities caused by gender gaps in a number of different areas, including education and career options, economic participation and leadership. For example, there is still a substantial gender wage gap in this country. In Canada in 2017, for every dollar a man earned, a woman earned only 88.5¢. This does not tell the whole story because many more women than men work only part-time, largely due to the fact that many women cannot take on full-time employment because of household and family-care responsibilities.

Key sectors in our economy that represent high-quality and well-paid jobs, like the high-tech sector where women make up only a quarter of the workforce, have major labour shortages. We have heard that in the House. We are working to remove barriers to women's participation in these fields so we can fill those jobs and, in doing so, grow our economy and our middle class.

Increasing our efforts to remove barriers and enhance gender equality in this country is not just the right thing to do; it is the smart thing to do to strengthen the middle class and grow Canada's economy. In fact, RBC Economics estimates that if men and women participated equally in the workforce, Canada's GDP could be boosted by as much as 4% more over the next few years and could partially offset the expected effects of an aging population.

How do we get there from here? For one thing, we start with the basics: budgets. Budgets are about making choices on where we allocate limited resources. Putting a gender and diversity lens on budgeting gives us the ability to understand how our economic decisions affect people differently. When we know that, we can allocate government resources more equitably and more efficiently, benefiting all Canadians.

We presented our first-ever gender statement in a budget in 2017. We are now introducing a new gender results framework, which is a whole-of-government tool to measure how we are doing and to help define what is needed to achieve gender equality as we go forward.

At the same time, we recognize that gender identities are complex. Not all women experience inequality and not all men experience privilege. Binary notions of gender do not work for all Canadians. Race, class, sexuality and ability among other factors all intersect to profoundly impact how gender is experienced in daily life.

With this legislation, promoting gender equality and the advancement of women, including women with disabilities, indigenous women and women in other vulnerable areas such as newcomer and immigrant women, will continue to be the central focus of the new department for women and gender equality. However, the new department will also have an expanded mandate for gender equality, which includes sexual orientation as well as gender identity and expression in response to the unique challenges faced by members of the LGBTQ2 community.

Our government will not shy away from taking strong action on equality, from appointing the first-ever gender balanced federal cabinet, to the first federal minister fully dedicated to gender issues, to the first gender budget launching Canada's first-ever strategy to prevent and address gender-based violence and unparalleled investments in women and girls. Our government is advancing gender equality within Canada and around the world.

Our government understands that gender equality creates economic growth and with the department of women and gender equality wage, we will strengthen our capacity to advance gender equality and grow the middle class through policy, programming and support for equality seeking organizations and community partners.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 12:35 p.m.
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NDP

Karine Trudel NDP Jonquière, QC

Mr. Speaker, I listened carefully to my colleague's speech.

I would like to talk about my region of Saguenay—Lac-Saint-Jean. This week, we had a visit from a representative of the Front d'action populaire en réaménagement urbain, or FRAPRU, who came to tell us about our city's household income statistics.

I represent the riding of Jonquière. The government promised us huge investments, mainly in Saguenay—Lac-Saint-Jean. I remember the government saying in 2015 that it was going to make historic investments in infrastructure, and yet there is still an urgent need for new infrastructure. According to Statistics Canada and what FRAPRU said about my city, people are still spending a large proportion of their income on housing. The need is pretty clear.

Omnibus Bill C-86 would have been a good opportunity to allocate more resources to social housing infrastructure. The government keeps saying that it is investing in social housing. That is what the members opposite always seem to be claiming. However, it is not true. There is no money allocated for social housing until after the next election.

I would like to know what my colleague thinks about that.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 12:05 p.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, the member touched on the issue of copyright. I hope he will forgive me, because I know this is not in Bill C-86. It is a question of what we do about the Copyright Modernization Act, which was brought in under the former minister of heritage, James Moore, in the 41st Parliament.

The word “education” was put in there, and it has cost the authors, publishers and creators of this country. They have lost $30 million from poor interpretation. It was not clear when the act was put forward, and I remember telling the minister at the time that it was going to cause confusion. What has happened is that holus-bolus, entire texts are being photocopied without providing copyright, without paying for the use of that material. We are going to lose Canadian content.

I wonder if the member has any thoughts on the direction this is going in. In the short term, Canadian publishers are going to need some financial support to help make up for lost revenue from poor interpretation of an act brought in by the last Parliament.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 11:15 a.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, I am very disappointed to rise in the House to speak to Bill C-86. I think the disappointment I feel about the promise of the government in 2015 versus what it has delivered recently is felt acutely by many Canadians. Hopes were high in 2015 that things would change.

Certainly the Prime Minister, in his admittedly very effective campaign, talked about how things would change in Ottawa, how parliamentarians and Parliament would be respected and get back to doing the work we are paid to do on behalf of Canadians from coast to coast to coast after the Harper years.

In the Harper years we saw a systematic denial of the ability of parliamentarians to get amendments and legislation through and systematic dumping of two or three hundred page omnibus bills in the the House of Commons. Then there was fairly systematic recourse to the “guillotine”, as we say in parliamentary procedure, meaning that parliamentarians were not able to speak to and address their constituents' concerns on the floor of the House of Commons.

Those days seem almost quaint now. The offence we took at the Harper government's use of 200 page budget omnibus bills, the dumping of a whole range of unrelated factors into omnibus legislation and forcing it through the House of Commons in a week or two, seem almost quaint now as we come into 2018, almost 2019. I say this because of what the Liberal government has done instead of keeping its commitments to make parliamentarians get back to the work we are paid and asked to do on behalf of Canadians, to scrutinize and improve legislation, to work through and hear witnesses and make sure that everything that we pass through the House is the best possible legislation and does what it is purported to do.

Instead of putting back in place a Parliament that would function well, one where there was consultation with opposition parties, what we have seen saw from the Prime Minister has been a doubling down. I will come back to that later in my speech, because what we have seen over the last few months in particular really goes to the character of the government and the Prime Minister and finance minister.

Bill C-86 is the living embodiment of everything that has gone wrong with the government over the last three years. Despite the high promise and firm commitment by the Liberals before they came to Parliament, three years later we now see in Bill C-86 another example of how the government is no different from the government before it, but even worse in many respects. Instead of 200 or 300 page omnibus budget implementation bills that throw everything but the kitchen sink into one piece of legislation, we now have almost 900 pages, and with Bill C-86, some seven stand-alone pieces of legislation being included.

Instead of having the week or two of parliamentary scrutiny that we had under the Harper regime, which in itself was inadequate, we now have one or two days of consideration before the bulldozer is brought in and parliamentary rights and privileges are simply pushed aside. Instead of the government's being willing to accept the expert testimony of witnesses and to work with opposition parties to improve legislation, we see a government that is purporting to push legislation through that it knows is inadequate and will lead to court challenges.

That is the sad case with Bill C-86. Under the Harper regime it happened half a dozen times. The Conservative government rammed legislation through the House after a week or two of consideration, knowing that ultimately it would be decided in the courts. Half a dozen times the courts rejected the legislation because it was so shoddily made, because the government refused to hear from witnesses.

Bill C-86 has not been adopted yet, but the government is indicating, with all of its strength, that it will refuse to heed any advice or counsel that would improve this legislation in any way. The Liberals say they are just going to force it through, and we know now that women will be forced to return to the courts on the pay equity issue. It is a sad commentary that a government that knows that what it is doing is bad is relying on spin over substance. The Liberals have been saying in the House that they have brought forward pay equity legislation. The fact that it is full of flaws, the fact that witnesses identified the flaws, and the fact that the NDP systematically brought forward amendments that would fix the flaws so that we would have solid pay equity legislation are all tossed aside.

The government feels that spinning the point that it has put forward pay equity legislation will override the sad substance of what is in Bill C-86 as currently constituted. This will force women back to the courts again so that they can get the right of equal pay for work of equal value. It is incredible that a government would do that. It really beggars belief that a government that knows that what it is doing is wrong still intends to do it anyway, because its members think they can spin their way out of it.

That is why I say that C-86 is the living embodiment of the dashed illusions and dashed hopes of Canadians, who back in 2015 were quite enthusiastic about the government. They felt that the government would make a difference and that it would be a change from the Harper regime. Three years later, so many Canadians, including people in my riding who voted Liberal back in 2015 and were so enthusiastic, now only say that they might perhaps vote Liberal. The Liberals will say that in the opinion polls they are still doing well, but what they do not understand is that there is a difference in the strength of intensity of belief. The reality is that in the next few months there will be a debate on a whole range of government decisions, and the traditional Liberal sense of entitlement and arrogance that seems to have re-established itself after three brief years in power is going to encounter that reaction from Canadians.

Indeed, the living embodiment of Liberal broken promises contained within this massive budget, Bill C-86, has planted the seeds of what could well be, in the coming 11 months, a strong reaction from Canadians that the government does not deserve another mandate. We do not want to go backwards to the Harper regime years, but Canadians, and certainly my constituents, feel tired of a government that makes promises and then promptly breaks them.

The biggest flaw with Bill C-86 is what is not in it and what could have been in it. I will include within that the mini budget that we heard last week, which was so out of touch with Canadian realities. It was so out of touch with Canadians struggling with profoundly deep debt loads, the the highest debt loads in our history and the highest debt loads of families in any industrialized country on this planet. Those debt loads were prompted by government policies over the last 30 or 40 years, the refusal to provide supports for affordable housing or pharmacare, the refusal to provide supports for families.

What we saw, both in Bill C-86 and the mini budget, was a cascade of money for corporate CEOs. The government seems unable and unwilling to address any of the concerns of regular folks right across the length and breadth of this land. To do a quick accounting, in just the last few months, the cascade of money includes $4.5 billion for an old leaky pipeline, twice its asset value. Despite that, the government did not flinch at throwing $4.5 billion into that purchase. Now we are seeing the construction costs of that pipeline again going up, being anywhere between $11 billion to $15 billion, but the government is not flinching. The finance minister does not even have a firm estimate of the costs. He is going with Kinder Morgan's estimate. That is most probably another $15 billion on top of the $4.5 billion.

In the mini budget last week, we saw $14 billion being given to corporate CEOs. The Liberal members will say that it is going to revitalize the economy, but when we look at the budget documents—because that is what we do in the NDP; we read through the documents—we see what the mini budget actually aimed to do was to accelerate tax writeoffs, so it included tax gifts for CEOs for very plush private jets and stretch limousines. I questioned Finance officials about this, because I wanted to be sure I understood it. I asked if a stretch limousine was covered by this accelerated writeoff, this big tax gift given by the Liberal government. They said it was. I asked if private jets were covered. They said yes. That is another $14 billion, and I am not even talking about the over $20 billion a year that goes to overseas tax havens.

Mr. Speaker, as you will recall, the Parliamentary Budget Officer, who is a hero, along with everyone else who works in that office, struggled for three years under the Harper regime, and another three years under the Liberal regime, before he was able to get the tax data that will allow us, for the very first time next spring, to have a conclusive and comprehensive evaluation of the amount of money that the wealthiest Canadians and Canada's most profitable corporations are squirrelling away offshore.

Small business owners, trades people and single mothers are paying their taxes, and Canadians are proud to do that because it is part of the character of our country that we provide for funds in common that are then to be invested to support all of us. However, that is not the way some of Canada's wealthiest and most profitable corporations have acted. The estimates go up to $20 billion, but the PBO could well find much more than that.

Let us do a quick accounting. We have $4.5 billion, another $15 billion, and another $14 billion on top of that. That is over $20 billion, and we are well over $50 billion without even pausing to take a breath or a sip of water.

What is not in Bill C-86 and not in the mini budget? Universal single-payer pharmacare was not in it. I have mentioned this before and I will mention it again. Every day, Parliamentarians pass Jim, begging on the bridge between the Chateau Laurier and the East Block. He is begging because there is no single-payer universal pharmacare system in our country. He has to beg for $500 a month. He lives on scant savings and a little money, but he has to beg so he can get the medication that keeps him alive.

Business owners pay $6 billion a year for drug plans, and yet we know that with our universal medicare program, that is a competitive advantage. That is $3,000 per employee per year, as a result of Canadian businesses not having to pay into the medical plans that American businesses have to pay into.

Pharmacare is a win-win for everyone, and the PBO indicated that it would be. It would represent $4 billion in savings overall for Canadians. However, there is nothing in Bill C-86 and nothing in the mini budget that addresses the crucial difficulties that people like Jim are facing. If any member of Parliament from the government side in any way is skeptical, they can just go to talk to Jim. He is out there now, begging for money so he can get the medication he needs to stay alive. It is incredible that in a wealthy country like this, a country where the Liberal government has been willing to fritter away $50 billion over the last few months with no hesitation, the government is unwilling to provide support for pharmacare.

Nothing in Bill C-86 addresses the housing crisis we are living in. It is incredible what Canadians are forced to live through in this housing crisis. Every time I mention housing, the Liberals start heckling and reacting very badly, but we are talking about real Canadians who are suffering profound difficulties.

I have spoken in the House about John, a senior who has ended up homeless and is in a homeless shelter now because of the lack of affordable housing in the country. I have talked about Heather. I have talked about Raj and Wade. I can mention so many stories.

Here is another one, and this comes from last night.

I turned left as I exited the Wellington Building last night and there was a woman, who I will call Yolande, sleeping outside under the canopy at the building. Every MP who left last night would have seen her. It twisted my gut to see her there. I am a parliamentarian. Despite the fact that there are 40 New Democrats here, we have been unable to get the Liberal government to understand there is a problem.

Canadians are getting increasingly frustrated with the Liberal government's inability to recognize that we are in a profound crisis. Thousands of Canadians are sleeping on the streets in our towns and cities. People like Yolande in Ottawa are sleeping under canopies. People are sleeping downtown on top of steam vents, or in parks, or in entryways of stores that have closed for the day. They are desperately seeking shelter for the night. That should not happen in a country as wealthy as Canada, full stop. Nothing in Bill C-86 addresses the profound crisis we are living through.

Nothing in Bill C-86 addresses the profound crisis in our education system for indigenous children who are underfunded and are living in appalling conditions. They go to schools that belie belief. The average is $6,500 to $10,000 less per student per year for students in an indigenous school as opposed to kids in other schools. Nothing in Bill C-86 addresses that at all.

It is not just the Liberals approach in Bill C-86. It is not just the glaring misplaced sense of priorities. It is the fact that witnesses have said, as they did with pay equity, that the bill needs to be improved otherwise women will have to go back to court. It is a sense from the Liberal government that it will not change it, that it does not care.

That is the biggest part of my profound disappointment, after three years of the Liberal government. I have a profound of sense of disappointment in the lack of an understanding of priorities, the sense of entitlement that somehow being able to spin words and say that pay equity is in the bill is the most important thing, not whether it is done right, not whether women have to return to court. It is the Liberals overall overall sense that it is fine, because they can spin it and tell everybody that they put equity legislation through, regardless of whether women have to go back to court or not.

It is like the excise tax that was imposed on medical cannabis users. The Liberals were stunned when I started to ask questions about it. Finance ministry officials had to look into it and realized that the excise tax had been imposed on medical cannabis users, 250,000 Canadians who need medical cannabis for pain management. They are often in intense pain.

We tried to fix that last spring and the Liberals said, no. They did not care. We tried to fix it again last week in Bill C-86, and Liberal members again rejected the amendments on eliminating the excise tax on medical cannabis, as they did with every other amendment that came from the opposition. This means that medical cannabis users join other Canadians who cannot afford their medication. It is just a lack of empathy, full stop.

I understand the Prime Minister comes from a life of privilege as does the finance minister. I do not begrudge them that and I do not think any Canadian would. However, it is the lack of empathy, the lack of understanding of how their policies are making, demonstrably, the lives of so many Canadians worse that I and the rest of my party decry.

Bill C-86 could have been improved. It should have had other measures that addressed the concerns of Canadians. Because it does not, I will be voting against it.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 11:10 a.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, my colleague would be surprised to know that I do not agree with all of his speech, although I very much agree with some of what he said. However, I agree with the amendment he has brought forward.

This was discussed at committee, and like every other amendment brought forward by the opposition designed to fix some of the glaring holes, problems and mistakes in Bill C-86, it was rejected by the committee. It defies understanding why when opposition members bring forward, in good faith, amendments designed to improve legislation, the government simply, with the back of the hand, slaps all of that back. The amendment the member tabled today is very much in keeping with that. It was not supported in any way by government members.

I would like to hear the member's perspective on why government members rejected something that is clearly needed and fits with the principles and values of the vast majority of Canadians.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 10:40 a.m.
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Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Mr. Speaker, I thank the hon. member for Louis-Hébert for his intervention and speech.

Through Bill C-86, we are making ongoing investments in the economy, in middle-class Canadians and in those working hard to join them. As well, the investments in our recent 2018 fall economic statement will help businesses and individuals in his wonderful riding of Louis-Hébert. Perhaps he could he expand on that.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 10:35 a.m.
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Liberal

Joël Lightbound Liberal Louis-Hébert, QC

Mr. Speaker, it is important to remember that we debated Bill C-86 in the House for 15 hours. Four committees also studied the bill for more than 20 hours and heard from 45 witnesses.

Indeed, it has taken far too long, 42 years, to bring in proactive pay equity legislation in this country. After a decade of inaction on this file by Stephen Harper's Conservative government, I am very proud that the current government has decided to take action and inspiration from what is being done elsewhere. Quebec, for example, has proactive pay equity legislation that is working very well and served as a model for our government's bill.

I am proud that federally regulated businesses and Crown corporations will henceforth be governed by proactive pay equity legislation that reflects our government's goal of having a society that respects gender equality and allows everyone to reach their full potential.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 10:35 a.m.
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NDP

Sheila Malcolmson NDP Nanaimo—Ladysmith, BC

Mr. Speaker, here we are under time allocation, debating the budget implementation bill, Bill C-86.

We have been waiting three years in this Parliament for pay equity legislation to be tabled. Canadian women have been waiting 42 years since the first Trudeau prime minister promised to implement pay equity legislation.

Having spent three years ostensibly consulting with employers, the labour movement and the lawyers who have been litigating pay equity in the absence of federal legislation, the government finally jams it into this 800-page bill.

We thought it would really reflect the advice the consultations had gathered. Instead, under extremely tight timelines, the NGOs, the labour movement, teamsters, the Canadian Labour Congress and the Ontario Equal Pay Coalition all proposed extremely detailed amendments. They said the pay equity parts of this legislation would not work, and that women would not get equal pay.

I proposed dozens of amendments at finance committee that were written by the lawyers who have been litigating this all this time. Liberal members voted every single one of them down.

Why did the government not take the advice of the people closest to pay equity and get this right after waiting 42 years?

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 10:15 a.m.
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Louis-Hébert Québec

Liberal

Joël Lightbound LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, I am happy to have this opportunity to talk about Bill C-86.

Over the past three years, our government has been guided by the fundamental principle that real economic progress comes from carefully crafted, targeted investments in people and in communities, and not from austerity and cuts, as we saw in the previous government.

Bill C-86, also known as the budget implementation act, 2018, No. 2, or BIA, 2, is legislation that delivers the next phase of our government's commitment to invest in Canadians and build a vibrant and equitable economy that is fair to all.

Since 2015, we have already taken bold steps, and the impressive returns we are seeing on our investments in Canadians are clear evidence that our economic policies are working well and for the good of the many.

First, we started by asking the wealthiest to pay a little more, so we could lower taxes for the middle class. Today, this tax cut means that some nine million Canadians have more money in their pockets and good reasons to feel more confident about their financial situations.

We are also making significant investments in Canadian children through the new Canada child benefit, which helps Canadian families meet the high costs of raising their kids. This new benefit, or CCB, is tax free. Compared to the previous system of child benefits, the CCB is also simpler, more generous and better targeted to those who need it most. It has left nine out of 10 Canadian families better off.

In keeping with our commitment to reduce inequalities and to offer all Canadians equal opportunities to succeed, the Canada child benefit, or CCB, provides even more financial assistance to the low- and middle-income families who need it most. Roughly 65% of families receiving the maximum CCB amount are headed by single parents, of whom over 90% are single mothers.

Since July 2018, the Canada child benefit has been indexed to keep up with the cost of living. We implemented that measure two years ahead of schedule. Thanks to the middle-class tax cut and the Canada child benefit, by this time next year, a typical middle-class family of four will receive on average about $2,000 more each year. That is $2,000 more than they could expect to receive under the previous Conservative government of Stephen Harper.

For single-parent, average-income households with two children, or for families with two children where only one parent is earning an average income, the benefits are even more significant. When the tax-free Canada child benefit and other benefits are added to family income, those families pay effective personal tax rates of less than 2%, which means they keep more than 98% of what they earn.

Through these measures, more families will be able to buy things such as healthy food, warm clothes or winter boots for their growing children. On average, families who receive the Canada child benefit get $6,800 every year. The CCB has helped lift more than 520,000 people out of poverty, including nearly 300,000 children.

That is not all. Salary increases for average Canadians are currently outpacing inflation. If the current trends hold, 2018 is on track to see some of the highest salary increases since the 2008-09 recession. Generally speaking, as we look at the legislative provisions to implement the measures in budget 2018, our economy is strong, healthy, and growing.

Since 2015, we have also been looking beyond our borders in order to reach new, modern trade agreements that will create jobs and help us be more competitive around the world. The fact that Canada is the only G7 country to have trade agreements with each of the other members of the G7 is a testament to the work we have done internationally. The recently negotiated USMCA will give the international business community the confidence it needs to continue investing in Canada.

The many innovative domestic and international economic measures we have put in place mean Canada's economy is strong and growing. Our economic growth rate of 3% in 2017 was the highest in the G7, and we expect to stay among the fastest-growing economies this year and next year.

Thanks to the hard work of Canadians, the past three years have seen the creation of more than half a million new full-time jobs. These new jobs have pushed the unemployment rate to a 40-year low. For the average Canadian worker, wage growth is outpacing inflation. If current trends hold, 2018 could mark one of the strongest years of wage growth in almost a decade.

Confidence is nearing historic highs, both among consumers and business owners, and leading to business expansion and the hiring of new employees.

All hon. members know that small businesses are a key driver of Canada's economy and account for 70% of all private sector jobs. When small businesses succeed, Canada succeeds. That is why we cut the small business tax rate to 10% last January and will lower it to 9% effective January 1, 2019.

In 2019, the combined federal-provincial-territorial average income tax rate for small business will be 12.2%, by far the lowest in the G7. Several federal departments and agencies, including the Business Development Bank of Canada and Export Development Canada, are working hard to help these important job creators succeed and thrive.

This overall positive outlooks reflects Canada's many competitive strengths, including a highly-skilled labour force, preferential access to global markets and a strong research and start-up capacity in emerging fields. We know that nurturing and expanding these competitive strengths demands policies that keep the focus on people and gives every Canadian the means to contribute fully to our society and our economy.

Wage growth is outpacing inflation for the average Canadian worker, as I mentioned, and we could see that growth mark one of the strongest years of wage growth in a decade.

Overall, as we consider this legislation that would implement measures from budget 2018, it is important to note that our economy is strong, healthy and growing.

I would like to briefly describe the essential pillars of Bill C-86.

The legislation includes an important measure to further stimulate economic growth, namely the new Canada workers benefit. The Canada workers benefit is an improved version of the current working income tax benefit. It is designed to encourage people to enter and stay in the workforce.

Under the Canada workers benefit, a low-income worker earning $15,000 annually could get almost $500 more in benefits in 2019 than he or she would get this year. In addition, the Canada workers benefit's expanded eligible income range would ensure that more workers would be entitled to it.

The new CWB would also be more accessible than the benefit it replaces. The legislation includes amendments that would allow the Canada Revenue Agency to calculate the benefit amount for all eligible tax filers, even if they do not claim it. These improvements to ensure access to the new benefit could be particularly useful for people with limited mobility, those who live far from points of service and those without Internet access.

The government estimates that, as a result of these changes, an additional 300,000 low-income workers in Canada will receive the Canada workers benefit for the 2019 tax year.

This is a major step forward in reducing inequality in Canada. What is more, it is estimated that the investments in the new Canada workers benefit will help lift roughly 70,000 Canadians out of poverty.

Another important aspect is addressing gender inequality, which is a vital component of the bill. Canadian women are among the most educated in the world, but they are less likely to participate in the labour force than men and are more likely to work part-time. Canadian women are too often working in unpaid jobs, which prevents them pursuing the opportunities that would help them reach their full potential.

There is an under-representation of women in leadership positions and the vast majority of Canadian businesses are still run by men. No economy can claim to be operating at full capacity if women are not being offered the same opportunities, including at leadership levels. Gender equality benefits everyone and benefits the whole economy.

We know that the participation of women in the labour market has been one of the key drivers of our economic growth in recent decades. During the past four years, the increased number of women in the labour market accounted for about one-third of real per capita GDP growth in the country. Indeed, RBC Economics estimates that adding more women to the workforce could boost Canada's GDP by as much as 4%.

The increased presence of women on the labour market is increasing household income and making a big difference to hard-working families across the country.

We need to establish an economic climate that will give all Canadians, particularly women, the opportunity to succeed and be leaders.

That being said, the gender budgeting act, which is part of budget implementation act, 2018, no. 2, will make gender budgeting an integral and permanent part of the federal budget-making process.

The bill will also convert Status of Women Canada into a new department, the department of women and gender equality, which will be responsible for the advancement of equality in respect of sex, sexual orientation and gender identity or expression. The gender gap remains too large and the evidence shows that taking steps to reduce that gap is not just the right thing to do, but also the smart thing to do.

Finally, I would like to talk about the measures that we are taking to protect the environment, which are an essential component of Bill C-86. We believe that putting a price on pollution is the best way to reduce emissions because it will encourage businesses and households to make more environmentally friendly choices and find more innovative solutions.

It is clear to us that pollution should not be free. Canadians are aware that that is the reality and that this is the right thing to do. We can see the costs of polluting everywhere. All one has to do is watch the evening news or take a look at the paper to see that droughts, floods and forest fires are becoming regular occurrences. That is not to mention the effects of pollution on our physical and mental health.

By implementing these measures to protect our precious environment, which is under increasing threat, Canada joins 67 other jurisdictions that have already taken this important step toward reducing greenhouse gas emissions. Together, these jurisdictions represent about half of the global economy and more than a quarter of global greenhouse gas emissions.

Despite efforts in some quarters to persuade Canadians otherwise, this is not an attempt to add to federal coffers. Provincial systems will apply in the several jurisdictions that are either already implementing their own carbon pollution pricing systems that meet the federal benchmark or are on track to do so.

The federal fuel charge will apply, starting in April 2019, in Saskatchewan, Ontario, Manitoba and New Brunswick. Those governments have not developed a system to price carbon pollution that meets the federal benchmark.

In those four provinces, the federal government proposes to return the majority of direct proceeds from the fuel charge directly to individuals and families through climate action incentive payments, starting in early 2019. Every dollar will remain in the province of origin. For most households, these payments will help offset their increased costs related to pollution pricing and help them to make more energy efficient, greener choices. The remaining proceeds that are not returned directly to households will go toward providing support to sectors within these provinces that will be particularly affected.

We estimate that climate change will cost our economy $5 billion a year by 2020. If we want to reduce greenhouse gas emissions that are responsible for climate change, we have to accept the fact that polluting our environment costs us dearly and that it is very logical that polluters pay for the damage they cause.

Canadians can rest assured that they do not have to convince this government to protect the environment because we truly believe that doing nothing would be a failure to live up to our responsibility as federal legislators and would also betray current and future generations of Canadians, who have the right to a healthy, peaceful and prosperous life in a healthy environment.

Our shared quality of life and our economic prosperity are closely linked to the environment we live in. That is why it makes sense to build an economy that benefits all Canadians while protecting our environment and seeking to repair the damage we have already caused.

We want Canadians to feel confident about the future, to be better prepared for what awaits them and not to be concerned about those elements that sustain life, namely, the air we breathe and the water we drink.

The essence of this bill is that we are investing in Canadians, we are sharing the fruits of our strong economy with all Canadians, and we refuse to renege on our environmental commitments. Budget 2018 will help make a better Canada for all Canadians.

For these reasons, I am very proud to rise in the House to speak to Bill C-86, the budget implementation bill, at third reading. I think it gives Canadians measures that will grow our economy, which has always been our goal, and also protect the environment. We believe that these two things go together.

We also think that a greener economy, a green shift towards renewable energy sources and more effective environmental decisions offer some worthwhile business prospects. As has been proven many times, this is also a major market.

Furthermore, we think that putting a price on pollution is the right thing to do. As I explained in my speech, more than half of world economies have put a price on pollution. Quebec has done so since 2013, and British Columbia has for many years. These two economies within Canada are seeing impressive growth records and have had economic success. This shows that the environment and the economy can and must go together.

Furthermore, a measure like the Canada workers benefit reflects another essential pillar of our goal, as a government, to reduce inequality. For too long, under the former government, our government lacked leadership on reducing inequalities. In fact, the previous government created more inequalities than it reduced.

The measures we have implemented since taking office prove that we are different. We raised taxes on the wealthiest 1% so we could reduce taxes for nine million middle-class Canadians. The previous government sent cheques to millionaires' families, but we put a stop to that with our Canada child benefit. We decided to make that system much more progressive so we could help those who needed it most, and that move is clearly having an impact.

That is one way our government's approach differs significantly from the approach taken by the previous government. We are absolutely committed to reducing inequality and poverty in this country by means of a very ambitious strategy spearheaded by the Minister of Families, Children and Social Development.

Another way we are different is our national housing strategy. Under the former government and some of its predecessors, the federal government stepped away from playing a role in social housing, but our government launched an ambitious $40-billion strategy. That is the kind of measure Canadians wanted to see, because they want a fairer country where economic growth and prosperity benefit everyone, a country where prosperity is inclusive. I think Bill C-86, the budget implementation bill before the House today, reflects that.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 10:15 a.m.
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November 29th, 2018 / 9:55 a.m.
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Krista Wilcox Director General, Office for Disability Issues, Department of Employment and Social Development

Mr. Chair, members of the committee, good morning.

My name is Krista Wilcox. I am the director general of the Office for Disability Issues at the Department of Employment and Social Development.

Joining me are Andrew Brown, director general of Employment Insurance Policy, Skills and Employment, Kris Johnson, director general of the Canada Pension Plan Disability Directorate, and Gertrude Zagler, acting director general of Federal Programs at the Labour Program.

Let me begin by thanking the committee for the opportunity to address this very important issue. While all people with disabilities may face barriers to economic and social inclusion, people with episodic disabilities may experience specific challenges owing to the nature of their condition.

Episodic disabilities are characterized by periods of wellness and periods of illness or disability that vary in severity, length and predictability. According to the Episodic Disabilities Network, “Examples of conditions that are episodically disabling are mental illness, arthritis, HIV/AIDS, multiple sclerosis, crohns and colitis, and some forms of cancer and rare diseases”, amongst others.

While this is a useful starting point, what identifies an episodic disability is the intermittent variation in the ability to function, which can occur in individuals with a wide range of single or multiple conditions. Because episodic disabilities can be unpredictable, people with these types of conditions may face particular barriers to employment and be at risk of financial insecurity, as they may be excluded from the workforce altogether because of these barriers, even though they have skills and initiative.

The office for disability issues has worked with other levels of government and disability organizations over the past decade to further our understanding of episodic disabilities. This has been, to a considerable extent, pioneering work. There has been little by way of international resources to draw on in this area.

For example, through collaborative work under the federal, provincial and territorial social services forum, the disability advisory committee commissioned a study by the Social Research and Demonstration Corporation on the situation of people with episodic disabilities in Canada. The research included both a data analysis study, which was based primarily on the 2012 Canadian survey on disability, and a literature review.

Some key findings of the data analysis were as follows. About 4% of the working-aged population had episodic disabilities, compared with 10% with disabilities in general. About 40% of those with episodic disabilities had severe or very severe disabilities. Episodic does not mean that the disability is less significant. Having an episodic disability means having poorer employment outcomes and lower incomes.

As with disabilities generally, more women than men have episodic disabilities. The researchers found differences between women and men in a number of important respects. In particular, women with episodic disabilities were less likely to be working and more likely to have low incomes than were men with episodic disabilities. Among people with episodic disabilities who were employed, the percentages with part-time or temporary jobs were similar to those for the general population. The important difference is that fewer were employed at all.

To add to our current knowledge on the experience of people with episodic disabilities, the 2017 Canadian survey on disability is the first national survey to contain a specific module on episodic disabilities. Data around people with episodic disabilities will be available in 2019, following the release of initial results, which took place yesterday. The Government of Canada is committed to advancing the social and economic participation of Canadians with disabilities, including those with episodic disabilities.

I'll share with you information on the relevant support services and legislation provided through Employment and Social Development Canada. A cornerstone of the Government of Canada's accessibility agenda is Bill C-81, the accessible Canada act. The act would, if passed, introduce measures within federal jurisdiction to improve accessibility for all people in Canada, including those with episodic disabilities. Bill C-81 includes a specific reference to episodic disabilities in the definition of disability. It would require consideration of the particular accessibility needs of people with a variety of disabilities, including episodic disabilities, and the identification and removal of barriers and prevention of new barriers in areas of federal jurisdiction.

Bill C-81 is grounded in Canada's commitment to the United Nations Convention on the Rights of Persons with Disabilities. People with disabilities, as recognized in the convention, strongly support the principle of “nothing about us, without us”.

Accordingly, the Government of Canada conducted an extensive and groundbreaking consultation across Canada, in which people with and without disabilities participated. Bill C-81 is based on what we learned during those consultations. People with episodic disabilities and the organizations that represent them, such as the MS Society, were active participants in this process.

To further implement the convention in Canada, the Government of Canada has been working with provinces and territories towards Canada's accession to the optional protocol to the convention. The optional protocol would enable people with disabilities to bring forward complaints to the United Nations if they believe their rights have been violated and if they have exhausted domestic remedies.

While income supports for people with disabilities fall primarily within the purview of the provinces and territories, the Government of Canada provides contributory income replacement programs for those who are unable to work as a result of a disability. The Canada pension plan disability provides partial earnings replacement to Canadians between the ages of 18 and 65 who have contributed to the CPP and can no longer work on a regular basis because of a severe and prolonged disability. A benefit is also available for eligible dependent children of CPPD beneficiaries.

To qualify for CPPD, applicants must meet both contributory and medical eligibility criteria. Contributory eligibility is met when an individual has made CPP contributions in four of the last six years, or in three of the last six years for long-term contributors with at least 25 years of contributions. Medical eligibility is met when an individual has a severe and prolonged disability as defined in the CPP legislation. “Severe” means that a person is incapable of regularly “pursuing any substantially gainful occupation”. “Prolonged” means “that the disability is likely to be long continued and of indefinite duration, or is likely to result in death”.

In 2016-17, CPPD paid $4.3 billion to 335,000 disabled beneficiaries and 83,000 of their children, representing approximately 10.2% of the $42.5 billion of total CPP expenditures.

The employment insurance sickness benefit is available to eligible claimants who are unable to work because of an illness or injury. The benefit provides up to 15 weeks of partial income replacement to allow workers time to restore their health so that they can return to work. The EI sickness benefit provided $1.6 billion in support to approximately 379,000 claimants in 2016-17.

EI sickness claimants have the flexibility to use the 15 weeks of EI sickness benefits over their 52-week benefit period. For example, a person may take three weeks of sickness benefits, and then return to work if he or she is feeling well enough, knowing that 12 additional weeks remain available during the benefit period.

Earlier this year, changes were made to provide new flexibility in response to recommendations from the MS Society and other health charities. Specifically, the EI working while on claim provisions were extended to sickness and maternity claimants, providing them with more flexibility to manage their return to work and keep more of their earnings.

To complement the EI benefits, under the Canada Labour Code, employees in the federally regulated private sector are entitled to job-protected sick leave for up to 17 weeks if they have worked for at least three consecutive months with the same employer. In addition, the code was amended, through Budget Implementation Act, 2017, No. 2, to provide employees with the right to request flexible work arrangements, which could benefit an employee with an episodic disability.

Further, Bill C-86, the budget implementation act, 2018, proposes additional amendments to the code that could be beneficial in the context of episodic disabilities. This includes eliminating the three-month wait period for sick leave, so that all federally regulated employees have access to this protection regardless of how long they have worked with their employer; allowing sick leave to be used for medical appointments; introducing a new five-day personal leave, of which three days would be paid; and allowing employers to request a medical certificate only when an employee is away for three or more consecutive days.

To strengthen and grow the middle class and help Canadians find good jobs, the Government of Canada now has new workforce development agreements with most provinces and territories, and will announce details soon. The new WDAs consolidate and replace the Canada job fund agreements, the labour market agreements for persons with disabilities and the targeted initiative for older workers.

These agreements enable provinces and territories to provide assistance and skills training with the flexibility to respond to the diverse needs of their respective clients. Under the WDAs, the Government of Canada provides provinces and territories with $722 million annually as well as an additional $900 million over six years, from 2017-18 to 2022-23. The WDAs will increase support for persons with disabilities beyond what was provided through the labour market agreements for persons with disabilities. From 2017-18 to 2022-23, approximately $2.7 billion will be invested by federal, provincial and territorial governments in targeted skills training and employment supports.

Provinces and territories can continue offering programs similar to those that were offered under the previous agreements but have the flexibility to adapt these models to create new interventions, including specific interventions to support people with episodic disabilities, to meet the needs of their local labour markets. Additionally, ESDC invests approximately $40 million a year in the opportunities fund for persons with disabilities. This federal program is delivered through contribution agreements with service providers who offer a wide range of tools to help persons with disabilities, including those with episodic disabilities, to prepare for, obtain and maintain employment or self-employment.

The opportunities fund is unique, as it offers employment-focused interventions and assistance to improve employment situations for a specific component of the persons with disabilities population who have limited or no attachment to the labour market. Since 2018-19, additional funding of approximately $18 million over six years will be invested in the opportunities fund to help employers who have demonstrated commitment to hiring persons with disabilities but need support to find the right match and create workplaces that allow employees with disabilities to reach their full potential.

The Government of Canada also provides support to Canadians with disabilities to help improve their financial security through programs like the Canada disability savings program. Launched in 2008, the CDSP is a long-term savings program that helps Canadians with severe and prolonged disabilities and their families save for the future.

The Government of Canada provides grants and bonds matching investments by individuals. In recognition that disabilities may have intermittent but long-term effects, the Government of Canada introduced a new rule in 2012 extending the period that an RDSP may remain open for a beneficiary who ceases to qualify for the disability tax credit if a health professional attests that they are likely to become eligible again in the foreseeable future. This measure can assist people with episodic disabilities who may lose their DTC eligibility during periods of wellness.

ESDC also supports the disability community through funding under the social development partnerships program to help improve the social and economic inclusion of people with disabilities in our communities. SDPP is an $11-million grant and contribution program that makes investments in the not-for-profit disability organizations in Canada. The program provides operating and project funding to not-for-profit disability organizations to achieve this work.

In recent years, we have funded projects through this program. For example, the Mood Disorders Society of Canada, in partnership with the Arthritis Society, received a contribution of approximately half a million dollars for a project entitled “Work With Us” to address the complex issues that affect persons with chronic diseases, particularly depression, arthritis and chronic pain. This project uses an innovative cross-sector approach to develop and provide education and supports for persons living with depression, arthritis and chronic pain as well as for workplace colleagues, employers, unions, families and friends.

That concludes my opening remarks. I would be pleased to answer any questions you may have.

Canada's Oil and Gas SectorEmergency Debate

November 28th, 2018 / 11:35 p.m.
See context

Conservative

Michelle Rempel Conservative Calgary Nose Hill, AB

Mr. Speaker, the challenge that we face today in the energy sector is very simple. It is a question of stability and a question of certainty, both for the people who are making the investment decisions to invest in production in Canada's energy sector, and the people whom I talk to every day, who have selected me to be their voice in Ottawa. It is a question of certainty, and it is a question of stability.

The colleagues opposite who are laughing at this tonight should give their heads a shake. When people are sitting around a corporate board table and trying to determine whether or not they should spend several billion dollars on a major capital investment, they look at several determinants. They look at labour availability, political stability, market conditions, and all sorts of things. They make a determination based on a set of information available at the time, but they have to be certain that the information is right and that it is going to stay stable.

If there is no certainty in an area, workers who are trying to decide whether or not to stay in a region, or whether or not to sell their house, or what sort of purchases to make, or how to make ends meet, are going to make a decision one way or another.

The problem we have seen with the government over the last three years is the question of instability. When we started to see a shift in the supply side model of energy products in North America, as the Americans started to come on stream with more energy supply—and of course we should spend a bunch of time talking about the demand side model internationally as well—what the government should have done at that point in time, when they the Liberals came into government in 2015, was to do everything in its power to make the situation more certain and stable for the workers in Canada's energy sector so that companies could stay and prosper in Canada, and for those who seek to invest in Canada's energy sector, to do the same.

What does the government need to do to rectify the decisions it has made that have led to instability, so that we can see projects built from here on in?

First of all, the government has to scrap its carbon tax. It creates investment instability in the energy sector and is a burden on energy sector workers. There is no economic modelling to show that it will actually reduce greenhouse gas emissions, because for the most part carbon in Canada is price inelastic.

The second thing that it needs to do is to repeal its cancellation, during a major downturn in the Canadian economy, of the oil and gas exploration drilling tax credit. It needs to reverse that decision that it made.

The government needs to reverse the tanker ban that it put in place.

The government also put in place a five-year moratorium on northern oil and gas exploration, giving the territorial governments less than two hours' notice. That caused instability. It needs to reverse that decision it made.

The government also need to reverse the decisions it made around the methane regulation framework that it put in place. That is an example of the instability the government caused when it knew that the energy sector was going through a downturn.

The government needs to scrap and do everything possible to stop the passage of Bill C-69, which it has tabled. That bill creates instability. It creates a new regulator and an environmental assessment process with indeterminate timelines. If people are sitting at a corporate board table and trying to make a decision whether or not to invest, it is not about just getting to a yes, but about getting to a yes or no within a defined, clear set of timeframes. Bill C-69 completely undermines that.

Any investor who is looking at investing in Canada's energy sector looks at Bill C-69 and says, “No way.” The government put that in place in a time of economic downturn, and it needs to scrap that.

The Liberals need to scrap Bill C-48, which put in place the unilateral imposition of a ban on using B.C.'s north coast for oil and gas exports. They put that in place. They need to reverse that.

Bill C-86 gives cabinet the authority to unilaterally shut down the shipping of natural resources by water anywhere in Canada, including offshore oil and gas. That is instability that the sector looks at. They need to repeal that bill that they put in place during a major downturn in Canada's energy sector.

They need to repeal Bill C-68, because it dramatically increases the red tape on project development by adding a multi-month review under the navigable waters act for any water on a project site that is large enough to float a kayak. It adds instability. It is unnecessary red tape. They need to repeal this bill that they put in place during a major energy sector downturn.

They need to repeal Bill C-88, which politicizes oil and gas development in the Far North, by providing cabinet in Ottawa the unilateral power to shut down oil and gas development in the Far North.

As well, they need to stop the proposed fuel standards that they are proposing to unveil before Christmas that will equate to a carbon tax of $228 per tonne of fuel, which would almost certainly mean the end of the oil and gas sector.

They also need to apologize for standing here and applauding Barack Obama after doing nothing to prevent the veto or speak against the veto of the Keystone XL pipeline.

They need to apologize for the fact that they did nothing when they allowed Denis Coderre to dump millions of litres of raw sewage in Quebec and say that energy east was not in the best interest of Canada. Instead they stood up here and agreed with him. The speech by the member for Calgary Centre was such a disgrace. He said he was going to pound on the table for a pipeline. Where was he when Dennis Coderre was doing that? He got kicked out of cabinet. He was our supposed voice in cabinet for Calgary who did nothing to stop any of these bills.

They politically vetoed the northern gateway pipeline. In a political process, the government overturned a years-long regulatory review of the northern gateway pipeline that had over 200 conditions on it that was set and ready to go. That created uncertainty and instability, and politicized a system during a downturn in the energy sector.

They need to invoke section 92.10(c) of the Constitution Act to bring the Trans Mountain pipeline completely into federal jurisdiction so that B.C. cannot obstruct its building out through permitting or other mechanisms in their jurisdiction right now.

Mr. Speaker, I am sharing my time with the member for Peace River—Westlock.

They need to start building the Trans Mountain pipeline. If what the Prime Minister said is true, and it is in the best interest of this country, why are the Liberals kicking the can down through a potential spring election window? If they are serious about it they should be building it out today. There should be shovels in the ground tonight.

The last thing they need to stop doing, for the love of all that is holy, is stop abdicating the responsibility for getting these policies right. Every time, they stand up here and say that it is Stephen Harper's fault. They had three years to get these projects done. With that litany of lists that are nowhere near complete, all they have done every step of the way is add uncertainty and instability for the investors in Canada's energy sector and for the workers in my community. All the people in my riding want to do is get back to work. Everything the government has done has been to abdicate responsibility and create instability.

The last thing they need to do is the Prime Minister needs to stop going overseas and telling his true agenda to the world, which is that he wants to phase out Canada's energy sector. If I was a worker in Canada's energy sector or if I was looking to invest in this, I would be saying that is a pretty clear policy. He has backed it up with action. Every single one of these bills and actions has been anti-energy sector.

None of the Liberals can stand up in this place and say they have done anything for Canada's energy sector. However, they can tonight by undertaking to repeal all of these bills and standing up and saying that they were wrong, that this stuff was wrong, that it created instability and the death of Canada's energy sector.

We are out of time. The Liberals need to build Trans Mountain. They need to get the shovels in the ground tonight, repeal these bills, and start being serious about one of Canada's most prosperous and stable industries in this country.

Canada's Oil and Gas SectorEmergency Debate

November 28th, 2018 / 8:40 p.m.
See context

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I will be splitting my time with the member for St. Albert—Edmonton.

Canada's energy sector is in crisis. It is a national emergency that impacts all of Canada and disproportionately hurts Alberta and Albertans. The oil and gas sector has already lost more than 100,000 jobs and over $100 billion since 2015 under the Liberals. That is eight times the GDP of, and more jobs than, the entire aerospace sector and five times the GDP of, and almost as many jobs as, the entire auto sector. That would rightfully be an emergency with full attention and action from any other federal government, but the response to the devastation in Alberta, in oil and gas, and on oil and gas workers and families has been a combination of empty platitudes with hostile attacks and legislation and policy that have only made things so much worse.

The ongoing and widening price differential for Canadian oil threatens to add tens of thousands more new job losses throughout 2019. Major producers with decades of history in Alberta are cancelling expansions and curtailing production, and are at risk of going bankrupt.

As recently as 2014, nine out of 10 new full-time jobs created in Canada were created in Alberta and more than 120,000 Albertans alone are out of work today. The most that the Prime Minister and the Liberals have offered is a five-and-a-half-week extension of EI benefits two years ago, which did not initially include Edmonton Bruderheim and the industrial heartland, and a “hang in there” ever since.

However, Albertans do not want EI. They just want to work and continue to be able to make their outsized contributions in the best interests of all of Canada. ATB Financial predicts that this crisis could cause a recession in Canada. The Bank of Canada already predicts no new energy investment in Canada after 2019, which will mean less money for pensions, health care, schools, social services and all governments across the country.

Over the past decade, Western Canadian Select has sold for an average of $17 U.S. less per barrel than West Texas Intermediate. This month, the differential hit a record of around $50 U.S., close to where it remains today. That is wreaking havoc on the industry and, by extension, on the entire Canadian economy. Every day, $50 million to $100 million is lost in Canada because of this differential.

Under the Liberals, more energy investment in Canada has declined than at any other time period in more than 70 years. Capital investment in Canada is collapsing while it soars in the U.S. Energy demand and development is increasing all around the world.

At least eight major companies have sold most of their Canadian business to invest in the United States. Canadian homegrown service, supply, technology and drilling companies are going with them. Business bankruptcies in Alberta are up 27.8% between August 2017 and August 2018. Real estate vacancies and property values are dropping. It is damaging all sectors.

Even the Prime Minister in Calgary last Thursday had the gall to say, “This is very much a crisis”. However, it has been three years of a crisis for Alberta. The Prime Minister's messages to Canadians and the world and policies caused it and only make it worse. What is unconscionable is it is a direct result of federal government policies and it is within the Prime Minister and the federal government's power to fix.

The Liberals cancelled the northern gateway pipeline, which would have exported Canadian oil to Asia-Pacific. The Liberal intervention, delays and double standards imposed on the energy east pipeline proposal were designed to make its proponent abandon it, which they warned a month before that they did; yet it would have secured Canadian energy independence and exports to Europe. They have disadvantaged Canada precisely because of the decision-making of the Prime Minister, especially with regard to the U.S., which continues to not only be Canada's number one energy customer, but also Canada's number one energy competitor right now, poised to supply 80% of the world's growing oil demand in the next three years.

The Trans Mountain expansion remains stalled indefinitely because of the Liberals' failure, with no start date yet in sight for construction. The Liberals chose the longest and most complicated option, delaying it still indefinitely, even while they gave Canadian tax dollars to Kinder Morgan, which is selling out of Canada and building pipelines in the U.S., even while they give Canadian tax dollars to the Asian infrastructure bank to build pipelines in China, and even while they fund anti-energy activists and Canadian pipeline protestors with Canadian tax dollars.

That lack of pipeline capacity and the landlocking of Canadian oil is a direct result of federal government policies that have stopped those new export oil pipelines and have directly caused the price discount.

The Liberals are layering on red tape and added costs at the very worst time, destroying confidence in Canada for investment. The Liberals' job-killing carbon tax is already costing Canadian jobs and driving Canadian companies into the United States. Imagine this. Canada is the only one of the world's top 10 oil-producing countries to impose a carbon tax on itself, but Canada is the most responsible energy producer in the world, and has been for decades. It makes no sense for the Prime Minister to make it even more difficult for Canadian oil and gas workers to do their work, which they do better than any other energy industry on the planet.

The Liberals cancelled the oil and gas exploration drilling tax credit during a historic collapse in Canadian drilling and energy job losses. The PM directed a B.C. north coast crude oil tanker ban, which is actually a ban on pipelines and on the oil sands, within 27 days of forming government, with no consultation or science or evidence to support it. The Liberals imposed a moratorium on northern oil and gas exploration, giving the territories less than two hours' notice before the announcement.

Their new methane regulations could destroy heavy oil development and end refining in Canada by adding tens of billions of dollars to an industry already in crisis, not because industry does not want to meet the standards but because of technology and timeline challenges to do it within the framework the Liberals are demanding.

The Liberals' “no more pipelines” Bill C-69 would create a new regulatory and assessment process with actually no concrete timelines and with vague conditions for review. It would open more foreign intervention in Canadian resource reviews and give new powers to federal cabinet ministers to politically interfere in the project development process. Certainty for proponents under their new legislation will only be determined through regulations out until 2021, continuing the uncertainty they created at the start of 2016.

Bill C-86 would provide cabinet with the authority to unilaterally shut down the shipping of natural resources by water anywhere in Canada, including offshore oil and gas in Atlantic Canada and the north.

Bill C-69 would dramatically increase red tap on project development by adding a multi-month review under the Navigation Protection Act for any water on a project site that could float any kind of watercraft, including a ditch. That would hinder mining, oil and gas and agriculture.

Bill C-88 would provide cabinet with the unilateral power to shut down oil and gas development in the far north. It would take back delegated authority powers from the Northwest Territories.

The Liberals proposed fuel standards will be the first of their kind in the world, equating to a carbon tax of $228 per tonne of fuel, to apply to industrial facilities.

This should be a concern for every Canadian, because energy is the number one private sector investor in Canada, and it is Canada's second biggest export. Canada is home to the third-largest reserves in the world, and it is the fourth-biggest exporter of energy on the planet, with a track record of responsible energy development literally second to none.

This emergency in the Canadian energy sector and the catastrophic job losses in Alberta are rippling through all sectors across all provinces. It is a national emergency.

Let me tell the House what Nancy Southern, the CEO of ATCO, says as she considers moving assets from ATCO, one of the oldest and largest privately started businesses in Alberta. She says, “How heartbreaking it is to see our wonderful resource-laden province so constrained by regulatory policy and politics of various dispositions.”

Gwyn Morgan, the founder of Encana, the largest Canadian-based energy company, which started in Alberta, said it plainly. He said what the more than 2,000 Albertans in Calgary said to the Prime Minister when he was there last week:

The past few years have been a nightmare for the Canadian industry, where every light at the end of the tunnel has turned out to be a train driven by the Prime Minister barrelling at us from the opposite direction.

No wonder Albertans do not believe a single word the Prime Minister or the Liberals say. This is a national emergency, and the Liberals should be absolutely ashamed of themselves for putting our country in this position. I probably share this view with my colleagues.

I look forward to Albertans delivering their verdict in 2019 on exactly what they think of the Liberals' record.

November 28th, 2018 / 4:45 p.m.
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NDP

Anne Minh-Thu Quach NDP Salaberry—Suroît, QC

Thank you, Mr. Chair.

Thank you all for being here.

Some of you have mentioned the economic repercussions of extending copyright from 50 to 70 years after the death of a creator.

Do you think that Bill C-86 will make a change in terms of access to fair use?

If so, what will change? Will these changes improve fair use?

November 28th, 2018 / 3:55 p.m.
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Professor Jeremy de Beer Professor of Law, Faculty of Law, University of Ottawa, As an Individual

Thank you very much, Mr. Chair and committee members.

My name is Jeremy de Beer. I'm a law professor at the University of Ottawa and a member of the Centre for Law, Technology and Society, but I'm appearing here in my individual capacity.

I offer this committee only my own views, but based on my experience as a former legal counsel to the Copyright Board of Canada and adviser to the Copyright Board of Canada, as well as to collecting societies, user groups, government departments and international organizations. For over 15 years I've designed and taught courses on copyright, argued a dozen cases on copyright and digital policy before the Supreme Court, and published extensively in this field.

I'd like to specifically mention just two of my recent articles commissioned by the Government of Canada. One was a widely cited empirical study on the Copyright Board's tariff-setting process, which I did for the Departments of Canadian Heritage and what is now Innovation, Science and Economic Development Canada. The other was a thorough review for ISED on methods and conclusions from evidence-based policy-making. I cite these studies to emphasize that my views aren't based on the special interests of certain industries or mere speculation, but on rigorous research that I hope will help this committee make some well-informed decisions.

It’s my third appearance in about a week before a parliamentary committee. Last week my testimony to the Senate's Standing Committee on Banking, Trade, and Commerce focused on proposed reforms in Bill C-86, the budget implementation act, to the Copyright Board and the collective administration of copyright. Yesterday, I testified to the Standing Committee on Canadian Heritage for its study on remuneration models for artists and creative industries, which will feed into this committee's review of the Copyright Act.

I won't repeat that testimony, but I would like to highlight the most important points. First, as I told the banking committee, the resources and proposed reforms to the board and collecting societies are on the whole good, but there remains some important work for this committee to do on a policy level. To the heritage committee, I made the point that if artists have remuneration problems, the root cause may not be copyright at all, but rather power imbalances and unfair contracts with publishers, record labels and other intermediaries. I said that if the government wants to expand anyone’s rights, it could start by recognizing and affirming that copyright doesn't derogate from indigenous people's rights over knowledge and culture.

I think most importantly that whatever the heritage committee and this committee recommends must take account of the dramatic extension of copyright protection in Canada’s most recent trade deal with the United States and Mexico, the USMCA.

With that, let me turn to the statutory review of the Copyright Act that this committee is mandated to do. You do not have an easy task. I've seen the 100 briefs already submitted, and the list of 182, and counting, witnesses you’ve heard from. Here's what I take from all of that. It's much too soon since the last round of amendments to consider any major overhaul of Canadian copyright law. In my view, the most important recommendation this committee can make is to get off the hamster wheel of perpetual copyright reform. lt's not just pointless. It's counterproductive to reopen the act every five years, as section 92 currently requires. Just looking at the list of special interest groups coming to you cap in hand makes one’s head spin.

The act was modernized. That was the word, it was the “modernization” act in 2012. Before that there was a massive expansion of copyright in 1997, and before that in 1989. How can anyone credibly claim to have evidence on whether the last batch of reforms is working or not? How can anyone say with a straight face that the act is already out of date again? These frequent reviews aren't free. There are cash expenses, there are opportunity costs, you could be focusing on other things, and most importantly, there are big policy risks.

To be clear, I'm not suggesting that copyright is unimportant. To the contrary, it's a crucial issue. My point is that we need, and we have, technologically neutral principles, and we need the time to properly implement and interpret, in practice and by the courts, and then consider the principles before giving lobbyists another kick at the can.

When it is seen in that light, I think it becomes easier to discount a lot of the rhetoric and the recommendations around—to list just a few examples—statutory damages to coerce educational institutions into buying licences they may not need or want, website-blocking schemes or special injunctions to give copyright owners more procedural powers than other plaintiffs have, iPod or Internet taxes or other cross-subsidies, and on and on and on.

That said, there's one very recent game-changer that I think this committee should consider, and that's the dramatic expansion of copyright required by the USMCA. The USMCA will give copyright owners an additional two full decades of monopoly. Copyright in Canada will soon last for the life of an author plus 70 years. On average, if you look at life expectancy, that's 150 years—a century and a half—that we have to wait to freely build on and embellish works in the public domain.

I understand why we did that. I'm a pragmatist. If that's what it took to salvage free trade in North America, all right. However, what it means is that Canada has now aligned the term of protection of copyright with that in the United States but not the safety valves, like fair use, that are so crucial for driving innovation. Without counterbalancing measures to align Canadian and American copyright flexibilities, Canadian innovators would be at a huge disadvantage.

In light of the time, let me conclude with my general point on this. For the theory of free trade in copyright-protected works to function in practice, both the floor and the ceiling of protection have to be harmonized. We can't take just the bad of American law without taking the good, so my recommendation above all for this committee is to ensure that in any measures it takes, it consider the changes that USMCA will bring in its report.

Thank you very much.

Business of the HousePrivate Members' Business

November 27th, 2018 / 7:25 p.m.
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Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Mr. Speaker, I rise on a point of order. There have been discussions among the parties and if you seek it, I think you will find unanimous consent for the following motion:

That, notwithstanding any Standing Order or usual practice of the House: (a) any recorded division requested in relation to the third reading stage of Bill C-75, an act to amend the Criminal Code, the Youth Criminal Justice Act and other acts and to make consequential amendments to other acts, or the third reading 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, be deferred until Monday, December 3, 2018, at the ordinary hour of daily adjournment; and (b) at the expiry of the time provided for Oral Questions on Thursday, November 29, 2018, the House revert back to the rubric “Motions” for the purpose of considering a motion to concur in the 66th report of the Standing Committee on Procedure and House Affairs.

Criminal CodePrivate Members' Business

November 27th, 2018 / 7:15 p.m.
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Liberal

Bardish Chagger Liberal Waterloo, ON

Mr. Speaker, there have been discussions among the parties, and if you seek it, I think you will find unanimous consent for the following motion: That, notwithstanding any Standing Order or usual practice of the House: (a) any recorded division requested in relation to the third reading stage of Bill C-75, An Act to amend the Criminal Code, the Youth Criminal Justice Act and other Acts and to make consequential amendments to other Acts, or the third reading 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, be deferred until Monday, December 3, 2018, at the ordinary hour of daily adjournment; and (b) at the expiry of the time provided for oral questions on Thursday, November 29, 2018, the House revert back to the rubric “Motions” for the purpose of considering a motion to concur in the 66th Report of the Standing Order Committee on Procedure and House Affairs.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 5:30 p.m.
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Liberal

Eva Nassif Liberal Vimy, QC

Mr. Speaker, I am pleased to speak today on the topic of Bill C-86.

As the member for Vimy and a member of the Standing Committee on the Status of Women, I am proud of our government’s accomplishments and their impact on the lives of middle-class Canadians in my riding and across the country.

We continue to implement policies to benefit the middle class and all those who are working hard to join it. We believe in the importance of investing in all Canadians. Our economy is strong and in full expansion, and middle-class Canadians are enjoying the direct and concrete benefits of our plan’s effectiveness.

The number of employed Canadians is on the rise; the unemployment rate has reached its lowest level in 40 years; we have seen the strongest economic growth of all the G7 nations; salaries are increasing; consumer and business confidence is on the rise; and businesses are investing because they believe in our plan, which promotes sustainable growth.

A year from now in 2019, a typical middle-class family of four will be taking home $2,000 more. Thanks to the Canada child benefit, 300,000 children will be lifted out of poverty. Nine out of 10 families receive this benefit, which, in my riding alone, has helped more than 19,000 children.

Thanks to programs such as the Canada child benefit and the national housing strategy, we have improved Canadians’ living conditions. Last week marked the strategy's first anniversary. Since we took power, we have also improved seniors’ benefits by bringing the eligibility for old age security back down to age 65 and by enhancing the guaranteed income supplement. We have done all this by reducing taxes for the less fortunate and increasing them for the wealthy.

We have also invested in sustainable infrastructures and created numerous jobs. I am pleased to inform the House that, in the past 12 months alone, more than $55 million was invested in the electrification of public transit in my riding of Vimy. I am proud that the City of Laval is showing leadership in the area of sustainable infrastructure.

Moreover, to address the affordable housing crisis across Canada, we invested to help our most vulnerable families. In my riding, we invested in the first stage of the Val-Martin affordable housing project, and people are thrilled. There is still a long waiting list as 1,000 people still await affordable housing. This is a first step, and we are moving in the right direction.

Our constituents are happy because they are seeing the positive impact of our investments on their lives. Yes, we have a lot of debt, but we are investing in Canadians’ lives. Affordable housing is an issue of interest to all Canadians. There is still a lot to be done, but we are happy to continue to work to solve this problem that has been around for decades.

As a woman and a member of the Standing Committee on the Status of Women, I would like to point out that, like each year, the 16 days of activism against gender-based violence will take place from November 25 to December 10. This is an opportunity for every one of us to reaffirm our commitment to preventing and eliminating the violence suffered by almost half of all girls and young women in Canada.

These 16 days are essential because we honour the work done in the past to fight gender-based violence. We also see the importance of contributing to the fight so that we can make a difference by working together.

Our government has also advanced the cause of pay equity, since ensuring equal pay for equal work is the smart thing to do. It is a key initiative our government has taken to honour its commitment to ensuring gender equality.

We have passed legislation according to the results of gender-based analysis to make sure that every Canadian has a fair and equal change to succeed. It is not simply the right thing to do, it is the smart thing to do. Canada’s future prosperity depends on it. Our government placed gender equality at the heart of its decision-making process in order to support women, reduce the gender wage gap, promote the participation of women in the workplace, and continue to build a country and an economy that works for everyone.

We have created a whole new department: the department of women and gender equality. Our government understands that gender equality is key to economic growth. The new Status of Women department will improve our ability to advance the cause of gender equality, and grow the middle class through policies, programs and the funding of community organizations dedicated to ensuring equality.

Thanks to these laws and policies, the government will be better able to capitalize on the momentum of international movements such as #MeToo, Time’s Up and women’s marches to make major changes for the benefit of Canadians of all gender identities. Our government launched the women entrepreneurship strategy and gave it $2 billion in funding.

We also opened the country up to foreign markets and new clienteles. This is the spirit in which our government negotiated the trade agreements that will give Canadians privileged access to 1.5 billion new overseas customers.

We have made a lot of progress in three years, but there is still a lot to do. I am proud to be part of this government. I am still very proud of representing the people of Vimy, and I promise them that I will do my best, with our government, to help all of the poor and grow the economy in my riding and across the country.

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 amendments) from the committee, and of the motions in Group No. 1.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 5 p.m.
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Gary Anandasangaree Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism (Multiculturalism), Lib.

Madam Speaker, I am very glad to speak on Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

At the outset, I will take stock of where we are as a country today. Economically, this is one of the best economic times we have had in our history, with a 40-year low in our unemployment rate. Our growth in GDP is one of the top in the G7. We have an unprecedented amount of growth taking place in various sectors, particularly the high-tech sector. A complaint I often hear from employers is their inability to hire people. There is a labour shortage, as we have heard in the House a number of times, in different parts of the country, but also in the area I represent in the greater Toronto area.

Middle-class Canadians are seeing first-hand that this plan is working. They are getting $2,000 more a year compared with what they got before. Budget 2018 is a step in that plan, supporting our government's people-centred approach to ensuring that every Canadian has a real and fair chance at success.

This has been a difficult week for some of us, especially those close to the GM plant in Oshawa, and our hearts go out to all of the hard-working men and women and their families in the Oshawa region. I have constituents in my riding who depend on the plant, and all of us across all parties hurt along with the families in Durham and the general region.

The fall economic statement presented by the Minister of Finance set out some very specific targets that allow more competitiveness in the Canadian economy. This past Saturday, all of us got back to our ridings very late in the morning, but I had the pleasure of opening a new company in my riding. It is located on Thornmount Drive in Scarborough—Rouge Park. It is called Sakara Wood Inc. It manufactures wood panels. It invested in very expensive manufacturing equipment and did not know about the accelerated deduction. I was able to inform the owner of the deduction that is available. This individual, who has worked for a very long time, is going to be hiring people. I am very proud that he chose to establish his business in my riding. When these types of businesses are opening, it shows the confidence that people have in the economy right now.

It is fair to say that since we took office three years ago, we have worked on a number of important initiatives, but particularly to ensure there is gender equality in this country. That has been a cornerstone of our Prime Minister and of the mandates of many ministers. Our budgetary process goes through a gender-based lens, which oftentimes was not the case in the past. This allows the full participation of all women in the economy, which will help grow our economy in the long term.

I want to highlight some of the specific things that budget 2018 offers in this respect. Something I have heard throughout my adult life over and over again is pay equity and the challenges and failures of successive governments to fully implement it. The statistics are startling. Men and women do not make the same amount of money for work of equal value. Over time that has really limited many women from progressing in the workforce and being able to attain the same level of economic security that men have been able to attains. It affects pensions and a whole host of benefits, because oftentimes our benefits are based on earnings.

I believe that the pay equity component of this budget essentially sets us on the right path. It does recognize equal pay for work of equal value. It is a very smart thing to do. We are also very proud to move forward with this proactive legislation. It is a key way in which our government is delivering on its commitment to gender equality.

Our government will introduce proactive pay equity legislation for workers in federally regulated sectors in 2018. This is on top of a number of other initiatives, most notably the establishment of a full status of women department. This is long overdue. I recall that a number of very progressive initiatives have been undertaken by the current minister to challenge many of the barriers to women's full participation and to ensure there is a safe and secure place for women and girls, as well as for boys, as equality takes shape in the years to come.

We recognize that it does require a lot of work. The stand-alone department speaks to the importance that our government assigns this issue. This bill will allow for additional resources for the department. It will give additional funding opportunities and resources, so that the minister will be able to target very specific issues and gaps within Status of Women currently.

As I go across the country, undertaking anti-racism engagements in several cities, the issue of racialization has come up, as well as discrimination against women and intersectionalities. This points to the fact that we are going in the right direction. Certainly, there is a lot more to do, and as a government we will do it.

Another important aspect is the poverty reduction strategy. It is part of an overall strategy to allow many Canadians to get out of poverty. Poverty in 2018 should not be a reality for Canadians. As we look at different parts of the world that are impoverished and have limited economic resources and opportunities, it is a shame that in a country like Canada, which has one of the highest GDPs and best economies in the world, we have people living in poverty. However, we do.

As a government, we were successful in lifting 650,000 Canadians out of poverty, including 300,000 children. That is a very significant improvement, but, again, this is an ongoing process. It includes support for infrastructure and support for housing. As members know, for the first time in a generation, we have a national housing strategy. That, too, will assist people living under the poverty line to be able to get out of poverty altogether.

Poverty limits individual success, limits the ability of young people to attain their maximum potential, whether at school, in the workforce, or other areas of life. It is very important that as a government we are doing this, and I am very proud of it.

Once again, time appears to be running out. I look forward to questions.

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 amendments) from the committee, and of the motions in Group No. 1.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 4:45 p.m.
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Conservative

Alupa Clarke Conservative Beauport—Limoilou, QC

Madam Speaker, I would like to respond to something the member for Saanich—Gulf Islands said. She said the government always has iconic and historical engagement announcements. I have come to think that it is all the government is about. It is always historical, amazing, so great, but we have never in Canadian history seen a government spend so much money to do so little.

I am very happy to speak today in the House of Commons on behalf of the citizens of Beauport—Limoilou.

Centre Block will soon be closing for complete renovations for 10 or 15 years. I wanted to mention that. There is no cause for concern, however, because we will be moving to West Block. I will therefore be able to continue to speak on behalf of my constituents.

Today I am discussing Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

I will focus on the fact that the members of the Conservative Party are extremely disappointed with the bill. We have witnessed a string of broken promises over the past three years. It is a little ironic that the hon. member for Papineau, the current head of the Liberal government, said during the election campaign that he wanted to do something to make people less cynical of politics, to help them have more confidence in politicians, in the ability of the executive branch, the legislative branch and members of Parliament to do things that are good for Canadians and especially to respect the major promises formally made during the campaign.

A group of researchers at Laval University have created what they call the Vote Compass. It shows the number of promises kept and broken by the provincial and federal governments.

I remember that, to their chagrin, a few months before the 2015 election, the research institute had to acknowledge that 97% of all promises made by Mr. Harper during the 2011 election campaign had been kept.

The Liberal government elected in 2015 broke three major promises and is continuing to break them in the 2018 budget. These were not trifling promises. They were major promises that were to set the guidelines for how the government was to behave and for the results Canadians would see.

The Canadians we talk to are familiar with the three major promises, since I often repeat them. I have to, because this is serious.

The Liberals promised to limit themselves to minor $10-billion deficits in the first two years and a $6-billion deficit in the third year.

What did they do? The first year, they posted a deficit of $30 billion. The second year, they posted a deficit of $20 billion. This year, the deficit is $18 billion, or three times what was announced.

That is the first broken promise, and it was not just some promise that was jotted down on the back of a napkin. In any case, I hope not. In fact, I remember quite well that the promise was made from a crane in the midst of the election campaign. The member for Papineau was in Toronto, standing on a crane when he said that he would run deficits to pay for infrastructure. That is the second broken promise. He said that the $10 billion a year in deficits would be used to inject more money into infrastructure. However, of the $60 billion in deficits this government has racked up to date, only $9 billion has gone to infrastructure. That is another problem, another broken promise.

That is why I was saying earlier that we have rarely seen, in the history of Canada, a government spend so much money for so few results. This is probably the first time we have seen this sort of thing.

I will give an example. He said that he would invest $10 billion in infrastructure in 2017, but he invested only $3 billion and yet racked up a deficit of $20 billion. Where did the other $17 billion go? It was used for all sorts of different things in order to satisfy very specific interest groups who take great pleasure in and boast ad nauseam about the Liberal ideology.

The third broken promise is an extremely important and strategic one. In fact, it was so obvious that we did not even really think of it as a promise before.

All Canadian governments, in a totally responsible manner and without questioning it, traditionally endorsed this practice. If there was a deficit, the document would indicate the date by which the budget would be balanced. There was a repayment date, just as there is for anyone in Canada. When the families of Beauport—Limoilou, many of whom are watching today, want to buy a car or appliance, such as a washer or dryer, not only does the seller ask them to get a bank loan, but he also asks them to sign a paper that indicates when the debt will be repaid in full.

Thus, it is quite normal to indicate when the budget will be balanced. We have been asking that question for three years, but what is even more interesting is that the Liberals had promised that the budget would be balanced in 2019, and now there are 45 days remaining in 2018. Telling us when the budget will be balanced is the least the Liberals could do.

There are consequences to running up large deficits, however. The Liberal government has been accumulating gigantic deficits at a time when the global economy is doing rather well, although forecasts indicate that we will enter a recession in the next 12 months. Although times are tough in Alberta and Ontario, where General Motors just closed a plant, the situation is positive. There are regions in Canada that are suffering tremendously, but the global economic context is nevertheless healthy. Knock on wood, which is everywhere in the House of Commons.

The first serious mistake is to run up deficits when times are good. When the global economy is doing well and our financial institutions are making money, we have to put money aside for an emergency fund and an assistance fund, especially for the employees of General Motors who lost their jobs and for all families in the riding of my Alberta colleague who have lost their jobs in the oil sector.

We have to have an emergency fund for the next economic crisis because that is how our capitalist system works. There are ups and downs. That is human nature. It is random. Agreements are signed, things are done, progress is made, and there are ups and downs. The current positive situation has been going on for five or six years now, so we need to be prepared. That is why growing the deficit during good economic times can have very serious consequences.

I would like to talk about another serious consequence, and I am sure this will strike a chord with the people of Beauport—Limoilou who are listening to us now. Does anyone know how many billions of dollars the government spends on federal health transfers? It is $33 billion per year. To service the debt, to pay back people around the world who lend us money, we spent $37 billion last year. We spent $4 billion more on servicing our debt than on health transfers.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 4:30 p.m.
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Andy Fillmore Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism, Lib.

Madam Speaker, it is a great privilege to speak to this House about Bill C-86, which represents our government's next steps to advance the mandate given to us by Canadians.

In 2015, Canadians sent us to Ottawa on a promise to grow the economy, support Canada's middle class and most vulnerable, and build a more inclusive and prosperous nation for all Canadians. Over the last three years, our government has made great progress on this promise.

Across the country, a strong and growing middle class is driving economic growth, and creating new jobs and more opportunities for people to succeed. While there is still more work to be done to ensure that every Canadian has a fair chance at success, real progress has been made. More Canadians are working, wages are growing, and Canadians and business are confident in their future.

The Canada child benefit, CCB, is helping families with the high cost of raising children by putting more money in the pockets of nine out of 10 families, helping to lift 521,000 people, including nearly 300,000 children, out of poverty. It is a measure that is making a real difference in Halifax.

This summer, I was at Mulgrave Park in our city's north end. It is a vibrant public housing community where many families benefit from the CCB. In a conversation with the executive director of Mulgrave Park Caring and Learning Centre, Crystal John, I asked her what she had been hearing from families about how the CCB is helping them. She told me that one important way to help is by giving families the funds to purchase nutritious meals for children. We know that food is expensive and that healthy food is even more expensive. Therefore, ensuring children are well fed, receiving the nutrients they need from healthy food, with fresh fruits and vegetables, is critically important. This is the positive impact of the CCB on the ground in Halifax and across the country.

Of course, more than nine million Canadians are also benefiting from the government's middle-class tax cut. By this time next year, a typical middle-class family of four will receive on average $2,000 more each year as a result of these two measures to help with the cost of raising their children and saving for their future. This will help grow the economy for the benefit of everyone. We have also enhanced the Canada pension plan, which will provide more Canadians with a secure retirement.

We have made historic investments in infrastructure, including the national housing strategy, which is helping Canadians with a secure, safe and affordable place to call home. I will say that, as a former city planner, this is a point of great pride for me. Secure and affordable housing is fundamental to a citizen's well-being. We have taken important steps to create a strategy that is smart, focused on the vulnerable and rights-based. Now, Canada's strong fiscal position, which includes the lowest net debt-to-GDP ratio in the G7, allows the government to continue investing in the middle class and to lay a solid foundation for future generations.

In November, the Minister of Finance presented the federal government's 2018 fall economic statement, and here are some of the measures that it included.

First, the government is taking action to help Canadian businesses to compete, succeed and create good, well-paying jobs. We are introducing new tax incentives that will support business investment in Canada, including allowing businesses to immediately write off the full cost of machinery and equipment used for the manufacturing or processing of goods. We are also cutting red tape to make it easier to do business in Canada while protecting Canadians' health, safety and the environment.

The fall economic statement also makes important investments in a new social finance fund. The government recognizes that innovative approaches are needed to tackle persistent and complex social challenges that make it difficult for some Canadians to succeed and reach their full potential. To encourage and realize innovative ideas, the Government of Canada is creating a new social finance fund to allow potential investors to partner with charities, non-profit and social purpose organizations to work together to solve our country's biggest social challenges. We are also providing support to social purpose organizations to improve their ability to successfully participate in the social finance market. All told, the social finance fund is expected to help create thousands of jobs, foster economic growth and help us build a more equal and fair Canada.

In Halifax, we are so lucky to have a vibrant community of passionate people working in the social innovation field. Just last week, I had the opportunity to invite the Minister of Innovation to Halifax for a reception at Common Good Solutions, an incubator and consulting agency that helps social enterprises start and grow. Its fearless leader, David Upton, has been a strong voice for government support for social enterprises, and I have been proud to stand along with him. In speaking with him since last week, he is thrilled with what the new social finance fund will mean for this growing industry.

One more important update in the fall economic statement is support for Canadian journalism. A strong and independent news media is crucial to a well-functioning democracy. The government recognizes the vital role that journalism plays in communities across Canada and is making key investments to ensure that Canadians in underserved communities continue to have access to informed and reliable news coverage.

New measures include allowing non-profit news organizations to receive charitable donations and issue official donation receipts; introducing a new refundable tax credit that supports original news content creation, including local news; and introducing a new temporary, non-refundable tax credit for subscriptions to Canadian digital news media.

There is still more work to do but the progress we have made to date is extraordinary and we are not slowing down. We will continue to fight for Canada's middle class and vulnerable Canadians. The budget elements included in Bill C-86 will go a long way to help us realize this goal. I encourage all members to support it.

I am going to share a few more excellent points about the budget bill and I am sure that everyone in the House will be interested in hearing them.

Members have heard me say before that Nova Scotia is home to some of the brightest scientists and researchers in the world at leading research institutions like Dalhousie University, St. Mary's University, the Bedford Institution of Oceanography and the IWK, the Izaak Walton Killam Children's Hospital and more. For the last year, they have rallied around the recommendations of the Fundamental Science Review, also known as the Naylor report, which was commissioned by this government under the leadership of our Minister of Science and Sport. This report called for significant investment in investigator-led research.

Our government agreed with those calls for action, because research expands our understanding of how the world works, allowing us to address existing and emerging challenges in our region in new and effective ways.

Equally important, basic research also serves as the foundation for the knowledge-based economy. That is why budget 2018 includes the single largest investment in investigator-led fundamental research ever. That is $4 billion for fundamental science and research infrastructure and it includes a 25% increase to funding of the tri-council of NSERC, CIHR and SSHRC.

We have said it before, science is back, but more than that, with budget 2018 it is unstoppable.

The final measure I want to highlight is conservation, and this is a topic that many of my constituents in Halifax care deeply about. A whopping $1.3 billion to protect Canada's landscapes and biodiversity, including species at risk, is included in the budget. It also includes funding to protect endangered marine life such as the right whale.

These measures are joined by several others that are geared toward protecting our environment for generations to come, including funding for the implementation of Canada's pricing of pollution system.

There is $56 million to expand an existing home energy retrofit partnership with efficiency in Nova Scotia.

One of my favourite measures is making entry to Canada's national parks free for kids forever.

These are the kinds of investments that will keep Canada on a path to prosperity along with others that I mentioned in my speech today and countless additional initiatives from budget 2018 that I did not have time to address.

I hope that my colleagues from all corners of this place will agree that this plan is working for Canadians and that they will vote for this budget implementation measure to keep this spectacular momentum going.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 4 p.m.
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Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, I am pleased to have the opportunity to rise in the House to speak to Bill C-86, budget implementation act, 2018, no. 2, more specifically to modernizing federal labour standards as well as the wage earner protection program.

The Government of Canada has a mandate to modernize labour standards and adapt them to today's reality. Bill C-86 is the first step in making this modernization a reality.

I want to begin by providing a bit of context. Part III of the Canada Labour Code establishes basic working conditions in the federally-regulated private sector, such as working hours, minimum wage, statutory leave, annual leave, and various other types of leave.

They would also create a level playing field for employers by requiring all of them to meet these minimum entitlements. Many employers already go above and beyond what is in the code, but for some workers, these standards are the only protections they have.

Unfortunately, these things have remained largely unchanged since the 1960s when most Canadians had steady jobs with regular nine to five hours.

Today, many Canadians are struggling to support their families in part-time, temporary and low-wage jobs. They may work several jobs to make ends meet, face unpredictable hours and lack benefits and access to certain entitlements.

The government understands that the nature of work is changing. That is why we held extensive consultations that highlighted the need for updated federal labour standards. That is what we are doing with budget implementation act no. 2.

Our consultations made it clear that there were a number of complex issues related to federal labour standards and the changing nature of work that required more in-depth review and discussions. A modern set of federal labour standards would better protect our workers and help set the stage for good-quality jobs.

A group of experts, soon to be announced, will be looking at these issues.

Let us talk about some of the changes being introduced through Bill C-86:

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;

Many Canadians are victims of domestic violence. It takes so much courage and determination to make that decision to leave a violent situation. These individuals experience extreme stress and vulnerability. Sometimes, they just cannot go to work for a number of days, and the trouble is, they do not know what type of leave they can use to justify their absence.

This five-day period of leave will help more Canadians get out of violent situations without the risk of losing their job.

By introducing equal treatment protections, these amendments would also ensure that employees in precarious work are paid and treated fairly, and have access to the same entitlements as their full-time counterparts. As well, they would ensure that employees receive sufficient notice and compensation when their jobs are terminated, to help protect their financial security. However, change of this magnitude does not happen overnight.

That is why up to approximately $51 million over five years starting in 2019-20, and up to about $12 million ongoing will be allocated to support the implementation and enforcement of the labour standards amendments, including education and awareness, training and increased resources for proactive enforcement and timely resolution of complaints.

In addition to these changes to the code, we are also enhancing the wage earner protection program to provide more support for Canadians during difficult times when their employer is insolvent and they are owed wages. The wage earner protection program is a Government of Canada program that provides financial support for workers who are owed eligible wages when their employer files for bankruptcy or becomes subject to receivership. In short, the WEPP is there to help workers when they need it the most.

Budget 2018 announced that the government would propose legislative amendments to increase the maximum payments under the WEPP and make eligibility more equitable. As such, our government is proposing to increase the maximum payment under the WEPP from an amount equal to four weeks of maximum insurable employment insurance earnings to an amount equal to seven weeks. For 2018, this would amount to an increase of up to $3,000.

I think the members of the House would agree that this increased support is a welcome change for Canadian workers, and I am glad to say that the increase in the maximum payment would come into force on royal assent and would apply in respect of bankruptcies or receiverships that occurred on or after February 27, 2018.

Changes would also be made to program eligibility more equitable so that workers who are owed wages, vacation, severance, or termination pay when their employer files for bankruptcy or enters receivership are better supported during a difficult time.

The changes proposed today are part of our plan to modernize federal labour standards as part of Bill C-86. We are also introducing historic proactive pay equity legislation. This legislation would ensure that women and men in federally regulated industries receive equal pay for work of equal value.

We have already introduced in the Canada Labour Code the right to request flexible work arrangements, new leaves and new protections for unpaid interns. More recently, we passed Bill C-65, which addresses workplace harassment and violence. We are bringing in change that Canadians have been asking for.

We spent nearly a year consulting with Canadians, stakeholders and experts to get their perspectives on what a robust and modern set of federal leader standards should look now. Now we are taking action. We are ushering in modern and robust standards that will benefit both workers and employers.

With modern labour standards that support good-quality jobs, employees can thrive and achieve a better balance between the demands of their personal lives and the operational requirements of their jobs, which can lead to a greater sense of well-being. By the same token, they can help employers recruit and retain employees, which can lead to an increase in productivity. Employees who come to work feeling supported by their employers are able to do their best work and to innovate, which can create a better working environment and lead to long-term gains for employers.

It is a win-win for everyone.

I request the support of the House to get rid of these 1960s-era provisions that are well past their best before date. We must update our labour standards to reflect the equality and quality of Canadian jobs across the country.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 3:45 p.m.
See context

Liberal

Ali Ehsassi Liberal Willowdale, ON

Madam Speaker, I am honoured to rise in the House today to discuss Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

Bill C-86 represents our government's commitment to do more for Canadians. The bill acts as a framework to implement key measures proposed in budget 2018 that will ensure Canadian businesses remain competitive and successful, globally as well as domestically.

In 2018, our government is placing people first, by creating a competitive, sustainable and fair Canada. Throughout my speech, I will provide several examples as to how Bill C-86 would accomplish such objectives.

Last week, on November 21, the Minister of Finance addressed members of the House to unveil the 2018 fall economic statement. His statement reiterated the commitment of our government to continue investing in the middle class to ensure that our economy would remain robust and would continue to flourish for years to come. We are experiencing a strong and growing economy from coast to coast to coast.

We, on this side of the House, have always believed that investment leads to growth and growth leads to more jobs. That is why we can all be proud as we witness new jobs being created, which in turn provide new opportunities for many Canadians to succeed.

In 2017, Canada experienced the strongest economic growth among all G7 countries, accumulating 3% GDP growth. Due to the hard work of Canadians, the results continue to speak for themselves.

We are also experiencing a healthy wage growth. In fact, we are now experiencing the fastest rate of wage growth in the last eight years. With more jobs and the lowest unemployment rates reported in 40 years, consumer confidence remains strong. Our plan is to put more money in the pockets of Canadian families next year, whereby a typical Canadian family of four will be $2,000 better off.

Allow me start off with examples by citing the significance of Bill C-86 to legislating gender budgeting.

We have placed gender equity at the forefront of decision-making by introducing gender budgeting legislation. The future of Canada's economic and social prosperity depends on supporting women of all ages, reducing the gender wage gap and increasing the participation of women in the workforce.

This comes after the failure of the Harper government to recognize women as a driving force in the economy. We, on the other hand, are ensuring every Canadian has an equal and fair chance to succeed. This is not just the right thing to do, it is the smart thing to do. In fact, there are now more women employed than ever before in our long history.

Another example is the significance of Bill C-86 to the issue of pay equity. To further complement legislating GBA+ budgeting, our government aims to provide pay equity to all Canadians by implementing measures to create a more inclusive work environment. For this reason, work has already begun with key stakeholders to introduce proactive pay equity legislation.

To deliver on our commitment to gender equality, we are proud to offer equal pay for equal value of work. This has been long overdue, and we hope to set a precedent for the global community as leaders and champions of equality.

The next thing I would like to cite is the significance of Bill C-86 insofar as the new employment insurance benefits for second parents. As I have already touched on the significance of gender equality in the workplace, allow me to now emphasize our government's interest in introducing legislation to ensure that there is similarly gender equality at home. The new parental sharing benefits will provide all parents, including adoptive and same-sex parents, an opportunity to focus on sharing the responsibilities of raising their children as they see fit.

The new employment insurance benefit for second parents provides more flexibility for parents to set aside time and ensure greater success at shared parenting. Encouraging equality is the right thing to do for all Canadians.

Finally, allow me to talk about how crucial Bill C-86 is to the establishment of the department of the status of women.

Unlike the previous Conservative government, this government keenly understands that gender equality is a key factor in stimulating economic growth. Bill C-86 proposes to create the department of women and gender equality. This new department will solely focus on the status of women in Canada and strengthen our capacity to advance gender equality and stimulate the middle class through innovative policies and programs.

By preserving the department's place as a centre of gender expertise, we hope to prevent gender-based violence as well as expand the mandate for gender equality. This is inclusive of sexual orientation, gender identity and expression by promoting greater understanding.

We have come a long way by appointing the first gender-balanced federal cabinet and the first federal minister fully devoted to gender issues. We hope, and I think it would be fair to say, that we have seen that Canada is serving as an example on the world stage.

Bill C-86 signifies our government's commitment to next steps in advancing our economy by focusing on the growth of the middle class and those who are working hard to join it.

Through Bill C-86, we are taking significant action to invest in this plan. Canada's future prosperity depends on offering equal and fair chances at success.

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 amendments) from the committee, and of the motions in Group No. 1.

Budget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 1:55 p.m.
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Liberal

Celina Caesar-Chavannes Liberal Whitby, ON

Mr. Speaker, my hon. colleague spoke about leaving the country in better shape than it was when we came to government.

I would remind him that ours is one of the fastest-growing economies in the G7. We have put policies in place to ensure that we are lifting 650,000 people out of poverty, 300,000 of whom are children. Next year, a family of four will receive $2,000 more in its pocket than it is currently receiving. There have been 500,000 new jobs created by Canadian small and medium-sized businesses. In Bill C-86, we have introduced a social finance fund to help charitable organizations. We have introduced a poverty reduction strategy.

What would the member say to his constituents who are benefiting from the policies we have put in place?

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 amendments) from the committee, and of the motions in Group No. 1.

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

November 27th, 2018 / 12:50 p.m.
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NDP

Anne Minh-Thu Quach NDP Salaberry—Suroît, QC

Mr. Speaker, today we are talking about the Liberals, who are proposing a hefty 850-page bill. It is an omnibus bill. It is the largest bill ever introduced in the House of Commons. The omnibus bills that the Conservatives used to introduce were 75 pages long. Today we are seeing an 800% or even 900% increase with this 851-page bill. The Liberals were elected on a promise to be more transparent and more accountable.

Furthermore, we are debating this unusually large bill under a gag order. This morning, the Minister of Employment, Workforce Development and Labour was boasting about how she has already given opposition members 15 hours of debate.

According to my calculations, 15 hours of debate divided by 851 pages equals one minute and five seconds per page. Is it responsible to allocate so little time to debate a bill? I use the phrase “debate a bill” loosely, because only eight NDP MPs and five Conservative MPs spoke to this bill before today, if memory serves.

The Liberals say that they are more democratic, more transparent and more accountable, but I have my doubts. I think that everyone has reason to doubt the goodwill and good faith of the Liberals.

As my colleague from Jonquière said, this bill amends seven acts. The Liberals have never been able to tell us how many clauses and subclauses are in this mammoth bill. They themselves do not even know. They do not even know all the things they put in this bill. It is ridiculous to have to debate it under time allocation.

I will focus on just a few points in my speech because, unfortunately, nobody in the House can cover all the measures introduced in the nearly 900-page bill in just 10 minutes.

Women have been waiting 42 years for the Liberals to keep their promises on pay equity. Unions have been fighting Canada Post in court over that for 30 years. The government is yet again telling women they will have to wait. Pay equity legislation will come into force not in a matter of weeks or months, but in four years.

Our party has been a tireless advocate for this important issue. We have even proposed changes in the past. As we heard from my colleague from Jonquière, the NDP proposed 36 amendments. The Conservatives proposed amendments. The other parties proposed amendments. How many amendments did the Liberals accept? Not one single amendment was accepted, despite the fact that they reflected the demands of unions and the demands of various women's groups. Not one amendment was accepted to improve the bill, to give women a stronger voice. The Liberals did not agree to any of our suggestions.

Canada is facing some major challenges that require a bolder approach than the one the Liberals are using. The first initiatives requiring employers to determine how many people must receive more pay are a step in the right direction. However, what could possibly justify how long it will take to implement this? Is it acceptable that women continue to be underpaid for another four years under this government?

In 2018, women earn on average $12,700 less than men. If we multiply that by four, that means nearly $51,000 less for women. The government says it is proud to have introduced pay equity legislation. However, women will still have $51,000 less in their pockets, which is a lot.

If I had to summarize the government's action, I would have to say that it is nothing but half measures. The time it will take to implement pay equity is the biggest problem lurking behind the government's facade of good intentions, but it is not the only one. There is also the fact that budget implementation act, 2018, No. 2 does not require employers to apply pay equity to workers who were already under contract if changes are subsequently made to the contract following a call for tenders. Why? We do not know.

The bill also does not include any of the pay transparency measures that advocates have called for. Salaries cannot be compared when pay equity issues are being addressed. What is wrong with that picture? Will the pay equity commissioner have the resources needed to do his or her work properly? We do not know that either.

Speaking of half measures, why did the government not adopt the recommendations set out in the Bilson report, including the creation of a pay equity hearings tribunal? Lastly, the Liberals are once again professing to support equality while telling a segment of the population that is being treated unfairly to grin and bear it. I would like to remind the government that women represent 51% of the population.

The government made its choice. It chose not to make the investments needed to ensure that women receive equal pay, and chose instead to give big business, the richest people in the world, $14 billion in tax cuts. This measure was introduced last week in the Minister of Finance's fall economic statement. Did the rich and these big corporations really need that $14 billion this fall? I do not think so. They are getting help, yet many of them evade taxes or openly use tax havens to avoid paying taxes.

The same is true for web giants like Netflix, Apple and Facebook, which pay virtually nothing in taxes and then get tax breaks. However, they use our services and are quite happy to hire highly skilled workers from Quebec and Canada. The Liberals claim that our SMEs are important and that they want to support buying local, but they support the web giants that do not need to worry about all of the taxes imposed on our SMEs under Canadian law.

How much of this money will go to rural areas? We have no idea. The government is allocating billions of dollars for businesses to buy new equipment and innovate, but how can we innovate when our rural areas do not even have access to high-speed Internet or a 3G or LTE cellular network?

The Auditor General criticized the government for its lack of judgment in managing public money allocated to the connect to innovate program. Some municipalities in my riding are turned down for this program or CRTC funds for ridiculous reasons, such as the fact that there is already a home with high-speed Internet within a 25-kilometre radius. This is happening in Saint-Louis-de-Gonzague, and all the areas served by Coop CSUR in the Soulanges area are under the same restriction. Do we really want a double standard for our rural and urban areas?

On another subject, how will the poverty reduction strategy be funded? Apparently, it will be made up of existing programs without any additional money. I think the Liberals are just thumbing their noses at us. They have targets, but no plan. That seems to be a theme with this government, because it does not have a plan for the environment either. The Liberals got themselves elected in 2015 by saying, “We have a plan, we have a plan, we have a plan”. Today, there is no plan, there is no plan, there is no plan. I think I will use that in an ad.

Are they going to help the most vulnerable citizens access health care services more easily? No. There is no plan for pharmacare either, even though we know that we could save $3 billion a year according to conservative estimates. We could make a lot of investments in health care with that money.

What other measures does the bill include to drastically reduce our CO2 and methane emissions starting this year? None. Is the government planning to help rural areas go green, develop public transit, make their homes more energy efficient, or use solar and wind power? No.

Is the government going to implement restrictions to help big corporations reduce their greenhouse gas emissions? No, of course there is no plan to do that. Will the federal government finally have a costed plan for reducing its own greenhouse gas emissions? No, it has no plan for that either.

It has been pointed out that many citizen movements have been launched. In Quebec, artists, scientists, economists and citizens have signed A Pact for the Transition. Millennials have been criticized for not being more involved in all kinds of things, but yesterday, young people who realized that the government is not doing anything for the environment took action, and a youth environmental group called ENvironnement JEUnesse brought suit against the federal government for failing to take action on the environment.

I have to stop now because I am out of time, but that shows just how important the environment is to people 35 and under and how absurd it was for the government to spend $4.5 billion of taxpayers' money on a pipeline.

That move was not a plan or investment for keeping our planet healthy for current and future generations. It is shameful.

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

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

Bill C-86—Notice of time allocation motionBudget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 5:40 p.m.
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Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Madam Speaker, an agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the report stage and third reading 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.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at those stages.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 5:25 p.m.
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NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, I am very pleased to speak to Bill C-86 today on behalf of the people of Sherbrooke, who elected me to represent them here in the House.

Today, I have to say that this is a big disappointment. I am also speaking in my capacity as deputy finance critic for my party, the NDP. As deputy critic, I am very disappointed in the Liberal government for picking up the Conservative government's nasty habit of introducing unprecedentedly long budget implementation bills. With every bill, it seems the government hopes to beat the record set by the previous budget implementation bill. The Liberals seem to be competing with the Conservatives to see who can draft the longest bill. This 850-page bill breaks the records for both number of pages and number of clauses in a budget implementation bill.

I feel like I am repeating myself, because last Friday, I spoke about Canada Post and the fact that I was surprised by the Liberals' actions in view of what they said when they sat in this corner of the House. I am also surprised to see the Liberals introducing omnibus bills. When they were the third party, they openly criticized the length of omnibus bills at every opportunity, both here in the House and in committee when we were called on to do an in-depth study of bills.

Today, I am surprised to see the Liberals once again doing the exact opposite of what they said when they sat in this corner of the House and introducing an 850-page omnibus bill. Liberal members who were here at that time and who are still here today seem to have completely forgotten about their displeasure with this type of government action. Today, they seem quite at ease with a process that allows a bill like Bill C-86 to be rushed through. When the bill was introduced in the House, the Standing Committee on Finance was asked to begin studying it even before it passed second reading. When the committee is asked to study the 850-page Bill C-86 in advance, the result of a vote in the House is a foregone conclusion. We were asked to complete our study in two or three weeks.

First we had to read the bill, to see what was in it. How can we do our jobs properly as parliamentarians if we do not have time to read the content of the bill? Then we had to call witnesses to also come and give their input on the bill. They faced the same challenge. I know from experience that many witnesses are caught off guard by such massive bills, and they were called to appear with just a few days of notice, perhaps a week or a week and a half, when they were being asked to comment on a bill as huge as this one. On that note, I have to say how surprised I am to see the Liberals using the same tactics to expedite the process in the House, not giving parliamentarians enough time to study bills properly.

We have clearly seen this in some situations in the past. Some bills have contained errors that had to be corrected later on. Those errors could have been avoided if the proper process had been followed in the first place. In the case of Bill C-86, I feel compelled to point out the Liberals' inconsistency, since they used to criticize omnibus bills, but they are doing exactly the same thing today.

Fortunately, there is some good news for Canadians in this bill. We have to acknowledge that and give credit where credit is due. There are a few good measures in this bill, but sadly, they do not go far enough. That is what we heard from witnesses during the committee's study. Take pay equity, for example. That is something we have been calling for for years, and the Liberals have been promising it for years, if not decades. For once, they seem inclined to actually do something in response to many questions and plenty of pressure from the opposition. Unfortunately, the witnesses said that the implementation would be too slow and that the bill still has some shortcomings. I call it a bill because it should be a stand-alone bill on pay equity, but it was embedded in an 850-page bill.

The experts pointed out some flaws that needed to be fixed, but the Liberals, obviously, flat out rejected their suggestions. It is our job, as members of the committee, to propose amendments when experts come share their views and make recommendations. In this case, our amendments reflected exactly what they asked for. However, as usual, the Liberals think they are always right and will not accept any criticism. They rejected all of the amendments and did not think it was necessary to listen to experts. They left the bill as is, unfortunately.

I want to talk about some of the important measures that are missing from this bill. The government failed to meet a number of our expectations. Our party sent letters to the Minister of Finance to share our observations on the economy and on what could be done to help the majority of Canadians, not just company executives.

The government did not include a single measure related to tax fairness or pension theft, a topic I have heard a lot about in Sherbrooke. I held a town hall on this very issue. People were unanimous in their outrage for companies that run off with their workers' savings, like Sears, which stole its employees' pensions.

Not only are the Liberals not doing anything about pension theft in this bill, they are actually making the problem worse by listening to some of the companies' suggestions and further protecting companies that declare bankruptcy. Not only do they not want to fix this problem in this budget implementation bill, but they are going to make it worse.

The Liberal government is clearly disconnected from reality, or at least from reality in Sherbrooke. The recent budget statement, which follows on the budget implementation bill, makes that all too clear, since it reflects almost every demand that corporate lobbyists have made to the Liberal government. The government came through for them, including by offering tax breaks.

For example, it decided to give businesses $14 billion over the next few years through an accelerated capital cost allowance. This measure was not even properly targeted, since companies will not be able to use it to create jobs or buy the equipment they need for everyday operations. For example, for a plant, purchasing a machine is a good investment. Unfortunately, the bulk of the accelerated allowance deduction will instead help buy things like planes and limousines. Companies will be able to write off that type of purchase.

The government should have seen this coming and ensured that this measure targeted things that companies really need for their daily operations, instead of luxury items that CEOs need to get from Toronto to Dubai. The government is clearly disconnected from Canadians.

What is more, the government is proposing to lower the marginal effective tax rate from 17% to 13.8%, even though corporate profit margins have increased over the past few years and individual tax rates keep going up year after year. In other words, as corporate tax rates go down, individual tax rates go up. This shows yet again that the Liberal government is disconnected from reality.

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.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 4:55 p.m.
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Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Mr. Speaker, I am pleased to rise and debate Bill C-86 and the economic update. This is another omnibus bill that brings into force new spending increases, adding even more to the national debt and reaffirms that the government will continue to borrow, borrow, borrow, with no plan to balance the budget. Canadians are frustrated by the overspending and inept spending of the Liberal government, while growing new boards, commissions and bureaucracy that tie up the true job creators in Canada.

Canadians see our economy as being attacked by the federal government with untenable regulations, tariffs, poor international negotiating, and thank goodness it was a whole-of-government and friends approach, interference, indecision and fake consultation. This creates an environment that no international company wants to waste its time on. Canadian small businesses are running out of resources and laying off workers.

Today we heard from GM that the plant in Oshawa is going to be closed. Under the Prime Minister's watch, over 2,500 direct plus 5,000 other jobs across the province of Ontario are being affected. From the way the Liberals spoke today in QP, one would think this was the first time this was happening. My word, this is only one of many situations, like General Electric in Peterborough which has closed with 358 jobs gone. Campbell soup company in Toronto closed and 380 jobs have been lost. Proctor & Gamble in Brockville closed and 500 jobs are gone. Grenville Castings in Perth closed and 380 jobs gone. A Dixie cup plant in Brampton closed and 133 jobs are gone. A carpet manufacturing plant in Waterloo closed and 256 jobs are gone. An Oreo cookie plant in Montreal closed and 454 jobs are gone.

This is a crisis we are facing in Canada and the government is destroying our economy. Manufacturers in my riding of Yorkton—Melville are desperate for the steel and aluminum import and export tariffs to be removed. They are running out of capital and laying off workers. That passive income the government claimed belonged to them is turning into fumes. There is nothing left for investment in their businesses or preparing for their own retirements. They are just trying to save people's jobs.

To add insult to injury, while the Liberals targeted small businesses with new tax penalties for saving within their company or sharing their business earnings within their family, the Prime Minister protected his trust fund inheritance and his finance minister's billion dollar family business from these tax hikes.

In the first three years of the Liberal government being in power, it will have added $60 billion to the national debt. Last year, Canada's national debt reached an all-time high of $670 billion, or $47,612 per Canadian family. As a result of the Prime Minister's reckless borrowing, last year the Liberals spent $23 billion just to service the national debt. That is $23 billion just on interest last year. By 2023, the Parliamentary Budget Officer says that amount will rise to $37 billion, a 60% increase. The Liberals will be spending more on debt interest than we currently spend on health transfers across this country.

I know these numbers are hard to comprehend for all of us to truly fathom the extent to which the government is willing to go to announce and mislead. Its intention is to delay, deny and wait until people die. Oh, no, that is the approach the government has to meeting the needs of our veterans as the number who deserve care are in a fishbowl with 29,000 of their comrades. When it comes to our job creators like the resource and manufacturing industries, its approach is to actually compromise, control and then wave goodbye.

The government was blessed with an influx of $20 billion. A responsible government would have paid down the debt so that we would have more fiscal room in case there was a downturn, but instead, the Liberals blew through it and added another $18 billion to the national debt this year.

Here we are facing a downturn in manufacturing and resource development with less and less need for our products as the U.S. becomes more and more self-sufficient and is a growing provider of the resources we once provided it. There is no means to get our oil to customers offshore because the government has so desperately underperformed on empowering and growing our economy. The government needs to stop the reckless spending and balance the budget so that future generations are not stuck with the burden of trying to consolidate the national debt.

The average income tax bill for middle-class families has increased by $840, not including the new carbon taxes and payroll tax hikes. It does not matter how many times the Liberals say out loud that somehow Canadians have more money in their pockets, the Parliamentary Budget Officer does not agree. Since the Liberals came to power, 81% of middle-income Canadians are seeing higher taxes.

It is important to mention that a media tax credit will do nothing to help Canadian families struggling to make ends meet, and buying up media outlets prior to a general election is not a reasonable budget expense.

The many small newspaper outlets in my riding that provide such a crucial service to their communities are struggling, but I have to say that I have absolutely zero confidence that any of the now $595 million plus that the government is allowing the media to self-regulate will make it to where their needs are. Why? The money is not going to rural Canada where the Liberals do not care about the towns, villages and smaller cities that house the families and employees of the economic drivers of our nation in resource development, agriculture and manufacturing.

The government's overwhelming tax hikes and new regulations are making it harder and harder to grow and operate local businesses in Canada. This includes the Liberals' job-killing carbon tax that will not reduce emissions and will only punish families and small businesses. The government is increasing CPP and EI, which impacts small businesses. The government is increasing personal income tax rates for entrepreneurs, and changes to the small business tax rate will disqualify thousands of local businesses.

Businesses in Canada expected to some degree the challenge that was going to come from the south with tariffs, but at a time when they are facing these international barriers and these increased taxes from the government, they never could have imagined that it would be their own government trying to shut them down. It is as if the Prime Minister wants to ship Canadian jobs and investment to the United States.

The finance minister's omnibus budget bill only reinforces his out-of-control spending and major tax increases. It is clear that the Liberals are incapable of managing the federal budget.

The Conservative government dealt with the worst global depression since the 1930s, and yes, ran deficits, increased the debt and even tightened spending across government. As a result, former prime minister Harper, the late Mr. Flaherty and Canada were recognized internationally as the most fiscally responsible prime minister, finance minister and country in the world, the last in and the first out of the depression.

The current Prime Minister and finance minister are breaking their promises, increasing taxes, destroying and inhibiting investment and putting Canada into a tailspin that will take years of good government to correct. The Liberal government under the current Prime Minister is following in the footsteps of the Prime Minister's father, and believe me, I am old enough, unfortunately, to remember both of these points in history. I remember personally the damage done. I remember personally how it impacted our small business, our family and our savings. It was devastating.

However, not to fear, the Conservatives are here. Soon Canadians will have a government that will end the raid on future generations, eliminate deficits, manage the national debt, and grow our economy while taking care of our environment. I am part of what will be a government that is truly fiscally responsible.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 4:40 p.m.
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NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Speaker, I want to thank my colleague for his comments on pay equity.

This situation is inconceivable in 2018, especially since our Prime Minister professes to be such a champion of women and equality. As my colleague aptly pointed out, this was a Liberal campaign promise. They are holding yet more consultations. They are going to create a department.

During the committee's study of Bill C-86, we heard from experts. The committee held three meetings on this bill and heard testimony from experts. The Liberals rejected all of the NDP's amendments, which had been drafted with the help of experts. That is really frustrating because we had something like 30 amendments on pay equity. The Liberals said they knew more than people in the field who have taken cases to court.

What the Liberals are proposing means that groups will have to go back to court to achieve pay equity. That is sad, disappointing and frustrating. The Liberal government needs to take action right now, not hold more consultations. The time to take action is now.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 4:25 p.m.
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NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Speaker, I am very pleased to take part in the debate on Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

The bill has made it to report stage. This is a mammoth bill that is more than 851 pages long. It is truly a massive omnibus bill.

If we combine this bill with the 2008 budget, that makes more than 1,400 pages of legislative changes that all members of the House have to study.

We have said many times that bills like Bill C-86 should be split so that all members of the House have enough time to debate and study them. When bills are this big, it is easy to hide things in them.

In 2015, the Liberals promised to do things differently. When the Conservatives were in power, they had a habit of introducing mammoth omnibus bills. During the election campaign, the Liberals said they would be different and everyone could trust them. However, right after they were elected, back in 2015, they started introducing omnibus bills.

When a government drafts a budget, it makes choices and sets priorities. We are really very disappointed with Bill C-86. More and more, people are hoping the government will enact measures to change their lives for the better. As the NDP sees it, the Liberals have missed that opportunity.

As everyone knows, Canada is a rich country. The gap between Canada's richest people and the rest of the population has never been wider. We believe that that is utterly unacceptable in 2018. Two Canadian billionaires own as much as 11 million Canadians.

Oxfam released a report revealing that the eight richest men own the same wealth as half of humanity.

About 4 million Canadians, including 1.15 million children, live in homes that struggle to put food on the table. Last week, following our weekly caucus meeting, I was able to go back to my riding of Berthier—Maskinongé to attend a Noël du pauvre fundraising dinner in Yamachiche. Volunteers work throughout the year to raise money so that families and children get Christmas hampers.

I would like to recognize the work of organizing committee chair Pierrette Plante and honorary chair Father Julio César Duran. A total of 550 people attended this dinner, which raised nearly $16,000 to help local residents in need.

We are pleased to see that Bill C-86 contains poverty reduction targets. Unfortunately, those targets are not accompanied by appropriate measures or funding so that they can be met.

The Liberals have ideas and targets, but they are not making any new investments to meet those targets. There is a poverty crisis in Canada. People are living in hardship and misery. There are still people struggling to make ends meet at the end of the month.

The important thing in this bill is pay equity. Women have been waiting for pay equity for over 42 years. It is a promise that was made by the Liberals. However, once again, we are waiting. The Liberals like to consult, but what it really boils down to is that they are buying time. They are still consulting about pay equity, when we really need it today.

Another thing we were hoping to find in the bill was a federal measure to tax web giants, but the bill contains no such measure. We are also calling on the government to put an end to pension theft and to give Canada a national child care strategy.

I had my son when I was a teenager, and at the time, it cost me $55 a day to send him to daycare. I had to take out additional loans so I could continue my studies and send my son to daycare. We need a Canada-wide child care system to help families, especially single parents.

Furthermore, we want stronger action to address tax havens, and we also want EI sickness benefits to be extended from 15 weeks to 50. There is a good public awareness campaign on that topic. I will come back to that. We also want a universal pharmacare system.

In addition, we want the needs of indigenous communities to be met, particularly with regard to access to safe drinking water and funding for educational institutions in their communities, which receive less funding than other institutions in the country. Lastly, we want assistance for rural regions.

Regarding the duration of EI sickness benefits, which we want to be extended from 15 weeks to 50, it is important to highlight the work of Marie-Hélène Dubé, who launched a petition called “15 weeks to heal is not enough!”. Half a million Canadians signed that petition calling on the federal government to take action, but we have heard nothing but radio silence so far in response. It is very frustrating.

In 2016, the Prime Minister himself and the Minister of Social Development promised to take action and extend the benefit period. In 2014, the Prime Minister even voted in favour of Bill C-291, which would have extended EI sickness benefits from 15 weeks to 50.

The government needs to walk the talk. Sick people need time to take care of themselves. They do not have time to fight. That is why we continue to pressure the federal government to extend EI sickness benefits.

I represent the riding of Berthier—Maskinongé, which includes the RCMs of Maskinongé and Berthier, as well as three municipalities in the RCM of Matawinie. I travel quite a bit across my riding, and people stop me to talk about the importance of having a national connectivity strategy, which is something we do not currently have at the federal level.

Access to high-speed broadband Internet is vital to strengthening Canada's social and economic fabric. Some businesses really struggle with connectivity issues. I know a business owner in Maskinongé who pays two ISPs and never knows which of the two will work when he needs it. When one does not work, he tries the other.

We have long called for a national connectivity strategy. Although the government offers programs and money from time to time, this is not enough. We need a Canada-wide strategy to connect Canada and Quebec to the Internet.

I should point out that a cell network strategy is needed as well. In my riding of Berthier—Maskinongé, people from Saint-Mathieu-du-Parc to Saint-Édouard-de-Maskinongé tell me how important cell coverage is. The mayor of Saint-Édouard-de-Maskinongé, Réal Normandin, has spoken to me about this, because people in his village have a hard time getting cell reception. The community of Saint-Élie-de-Caxton, the hometown of Fred Pellerin, is in the same boat.

At a coffee meeting last week in Lavaltrie, Sylvie Legault and Gilles Auclair collected signatures for a petition about the 34 homes on the Point-du-Jour concession that have no Internet access and limited cell network access. Lavaltrie is not far from Montreal. These people are calling for a national Internet access and cell network strategy.

We had hoped to find all kinds of good things in Bill C-89, but the NDP will have to oppose this bill, since it does not do enough to address pay equality. Women have been fighting for far too long for the right to equal pay for equal work.

This bill also does not do enough to help rural areas get access to the Internet and the cell network. We also need to improve the pharmacare system. In short, there are many reasons why we will be voting against Bill C-86.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 4:10 p.m.
See context

Liberal

Darrell Samson Liberal Sackville—Preston—Chezzetcook, NS

Mr. Speaker, I am extremely pleased to speak to Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures. I will be talking about the middle class, which is extremely important, and those working hard to join it. In my speech, I will also talk about veterans, women, families and, of course, seniors.

Before I get started, I will talk about what I would describe as Canada being a just society. Our government is working extremely hard to make sure that all Canadians are part of that just society. Throughout my speech, I will touch on that.

Mr. Speaker, as you can understand, we expect the wealthiest 1% of Canadians to pay more to help ensure we have the best country in the world, and that is extremely important. The second piece is ensuring that the middle class is strong and that we create opportunities and good jobs for the middle class. We have to make sure that we help those trying hard to join the middle class and that is a very important focus of our government. We want to move people from below the poverty line to the middle class as well and we want to make sure that people in the middle class do not fall below the poverty line. It is a very important approach. This is what I call a just society and that is why we are asking all Canadians to contribute to that vision.

Let us look at what our government has done, is doing or will do as we move forward. The unemployment rate has dropped to 5.7% from 7.2%. That is very impressive. That is the lowest in 40 years. That is something to talk about and is extremely important. Almost 700,000 Canadians are finding new, good-paying jobs. That is what is important in our focus on the economy.

We are seeing the effect of the Canada child benefit, which is tax free. We are seeing major investment in this area. For example, in my riding of Sackville—Preston—Chezzetcook, people are receiving $5.2 million a month. That is right, $5.2 million a month or $60 million a year. That is happening right across this country. If we play with the numbers, that is 338 times $60 million on average. Billions of dollars have been invested and are having an effect. What is really helping the economy is that money is being spent right away by families because it is needed and it is contributing to the economy. That is what it is all about and that is why it is very important.

The fall economic statement delivered last week has very important strategies, one of which is the accelerated deduction for companies that want to purchase equipment to be more competitive. They are seeing three times the deduction. If we use computers as an example, before the investment would have been about 27.5% and now the first year they can deduct 82%. It is quite impressive.

Now let us talk about families. They are extremely important in my riding of Sackville—Preston—Chezzetcook. We are investing in the EI parental sharing benefit. The second parent is receiving up to five weeks more to spend more time with his or her family, which is very important. We have established an advisory council on pharmacare. We know this is extremely important to Canadians. We have been talking about it for years, but it is time to take action, and I believe we will see that in the very near future.

To help low-income Canadians, we have introduced the Canada workers benefit, which will help over 300,000 more people. Over two million people will benefit from that investment. The BIA will enact that process. One will not need to apply for it; it will be automatic.

Then we see changes to the labour code that would give up to five days of paid leave for individuals experiencing family violence. Those are added features that are very important.

We have invested almost $10 billion for veterans. When I was going from town hall to town hall and from legion to legion, one of the most important things they asked for was to bring back the option of a monthly pension. Veterans can achieve that goal now. There are three phases to it: the pain and suffering compensation, additional pain and suffering compensation, and income replacement, which would be up to 90% of pre-release salary. Those are major investments for Canadian veterans who have risked their lives, and for their families.

When the Conservatives were in power, it took 10 years of service to get a veterans ID card and then they cut it. I am not sure why. It is hard to understand. We brought back the veterans card, which I heard across my riding was a very important step veterans wanted. Now, as soon as they have basic training, they have the right to a veterans card. The ID card states the name, the rank, the years of service and more information about their service. They will be able to access benefits because of the card.

The budget implementation act supports women. It would actually enable a department of women and gender equality. It is an extremely important piece of the legislation. This would help the minister to implement and move these initiatives forward. We are laying the groundwork now. More consultation is required, and with that consultation we will be able to move legislation within the next year. We have to keep in mind that we are seeing today, as I speak, a historic number of women participating in the workforce. That is because we are creating opportunities, trying to ensure we are supporting women in the workforce, because they can contribute enormously to the economy of our great country.

In my riding of Sackville—Preston—Chezzetcook, we are going to benefit from many initiatives of our government, such as broadband. Access to the Internet is extremely important so people can stay in their rural communities and be able to create a successful business, have a family and build on that prosperity.

The investment of our government in dementia and the autism spectrum disorder is a 10-year investment of $5 million each.

Let me close with the piece that would enact the poverty reduction act. This is extremely important, and it is part of the BIA 2. It sets two targets: reducing poverty by 2020 by 20% and reducing poverty by 2030 by 50%. That is very impressive. How are we going to achieve that? We have already started. We have seen a major investment in the CCB, as I mentioned. We have seen investment in GIS for retired low-income single individuals. We are seeing investment in the national housing strategy. In my riding of Sackville—Preston—Chezzetcook, 155 units have been built or renovated. We are seeing investment in early learning. In Nova Scotia alone, it is over $11 million per year.

Let us talk about the part that I said was important, which is poverty, those who are in need.

With respect to opportunities, last week we moved forward legislation on accessibility, which is extremely important, and on pay equity. There is also a safety net, which is the Canada workers benefit investment. That is also extremely important.

In closing, what is important to note is that this is a process. This government is moving our economy forward and making sure that every day Canada gets closer to its just society.

Budget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 3:50 p.m.
See context

Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Mr. Speaker, today we are debating Bill C-86, the Liberal government's second mammoth budget implementation bill, related to budget 2018.

As I begin my remarks today, I would invite everyone to reflect on the following section from the Liberal Party's 2015 election platform. Under the heading “Prorogation and omnibus bills”, there is a line that says:

Stephen Harper has also used omnibus bills to prevent Parliament from properly reviewing and debating his proposals. We will change the House of Commons Standing Orders to bring an end to this undemocratic practice.

These are stinging words, but as is so often the case with the Prime Minister, the promises he made in the Liberal platform document are not worth the paper they were written on.

The string of broken promises by the Prime Minister is long. Just last week, the finance minister reaffirmed another broken promise to Canadians. In 2015, the current Prime Minister pledged that his budgetary deficits would be small and temporary. However, with this bill and with the recent fall economic statement, the Prime Minister and his government have broken their promise. In fact, the federal deficit is three times what the Liberals pledged it would be, and we all know that more debt today means higher taxes tomorrow.

I could go on about the Prime Minister's broken promises and betrayal of Canadians, but there is a specific part of this bill that I would like to address. Buried in this bill between pages 589 and 649 are divisions 22 and 23, which make amendments to the Canada Shipping Act 2001 and the Marine Liability Act.

To begin, it must be noted that three shipping associations representing members across Canada were all taken by surprise at the inclusion of these clauses in a budget implementation bill. The pan-Canadian Shipping Federation of Canada, the B.C.-based Chamber of Shipping, and the Great Lakes St. Lawrence-based Chamber of Marine Commerce all expressed their surprise at the move, as well as their concern at the speed with which the bill was being rushed through the House of Commons and committee.

Talk about ramming a mammoth bill through Parliament, the bill was introduced on October 29. A day later divisions 22 and 23 were referred to the transport, infrastructure and communities committee, where we were invited to study and then submit any recommendations and/or amendments in less than two weeks.

Despite this ridiculously rushed timeline for reviewing the bill, the transport committee did hold two meetings where we heard from shipping stakeholders who, despite the time crunch, identified some areas of common concern. Our committee also heard from departmental officials about the proposed changes. One shocking revelation from the officials was that the changes being proposed were the most substantial changes to these acts in, in one case, 10 years and, in the other, 25 years.

These substantial legislative changes, with the potential to have a dramatic impact on the Canadian shipping industry, as well as all the way down the transportation chain, are being rammed through Parliament with hardly any time for prudent study. To me, this reflects the disregard with which the government treats the Canadian economy.

Further, I would like to highlight another way that the government is disregarding the transportation sector when it included these divisions in Bill C-86. Apparently, through the framework of the government's much lauded oceans protection plan, it was conducting so-called consultations on potential legislative changes related to marine safety and environmental protection.

These consultations ended on Friday, October 26, and, as I mentioned, this bill was introduced with divisions 22 and 23 on the morning of Monday, October 29. Given the tight timeframe, the Minister of Transport did not appear at committee, so we questioned the assistant deputy minister on how the department managed to craft 60 pages of legislation in just one weekend. Needless to say, we were not satisfied with the answers that we received and were left with only one conclusion, that these consultations were a farce.

While there were some elements of divisions 22 and 23 that stakeholders found agreeable, there was unanimity in the call for specific amendments. I would like to highlight a couple of these amendments that my colleague the member for Calgary Shepard argued for at finance committee. Regrettably, these amendments failed to be passed at the committee.

An amendment was proposed to section 690. This amendment introduced some safeguards regarding the use of the interim orders by the Minister of Transport. Stakeholders suggested that the parameters around which the minister could make an interim order needed to be properly defined. Additionally, they suggested that the use of an interim order needed to be precipitated and/or necessitated by a significant risk and/or an immediate threat. Without these constraining definitions, Bill C-86 would create uncertainty and this uncertainty could become the norm in the shipping industry.

They also suggested that it was essential that the proposal to give the minister the power to adopt interim orders under the Canada Shipping Act be sufficiently restricted through the appropriate checks and balances to ensure that their use would not open the door to the practice of governing by interim order as a workaround from the normal regulatory process. The new subsection they believed was required, because of the potential major ramifications of a minister's making an interim order, was also rejected by Liberal committee members.

This rejected amendment also proposed to reduce the length of time that an interim order would be in effect. The current bill allows for an interim order to be in effect for one year, plus an extension of two years if granted by the Governor in Council. Stakeholders felt that it was quite unprecedented that a new regulation could exist for three years without going through the normal regulatory process. The proposed amendment would have limited the length of an interim order from one year to 14 days and the Governor in Council extension to one year, which is more in line with other legislation.

Another amendment that also failed at the finance committee, but which should have been included in Bill C-86, proposed to amend clause 692. The purpose of this amendment was to introduce safeguards around the use of ministerial powers. What Bill C-86 proposes in clause 692 would go a step further than simply introducing new Governor in Council regulatory powers. In some cases, it would also enable the minister to modify the content of Governor in Council regulations relating to matters like compulsory or recommended routes, cargo loading, and navigation and anchoring by using a ministerial order for up to one year.

To curb this expanded power, the shipping stakeholders felt that their amendment was needed to ensure that the minister would consult with industry before making any order under this section.

In rejecting these reasonable proposals by the shipping industry, the government is turning a blind eye to the concerns of those workers and businesses that would be most directly impacted by these changes.

As the shadow minister for transport, I value the input of key stakeholders. This legislation and the Liberals' rejection of reasonable amendments is a reflection of their disregard for Canada's economy and future well-being.

I want to highlight a final area of concern that was given in testimony to our committee on November 6.

The witness appearing for the Chamber of Shipping noted that clause 692 of this legislation appeared to be another mechanism by which to implement a moratorium on specific commodities through regulation and interim orders, and not through legislation, as this government is doing with Bill C-48. The witness noted that this contradicted what should be the government's objective in providing a predicable supply chain. There is no question in my mind that the inclusion of this clause in Bill C-86 would have a further chilling effect on Canada's oil and gas industry.

The Liberal government has been bad for Canada's economy and this legislation would only take Canada further down this mistaken path.

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.

Motions in amendmentBudget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 12:55 p.m.
See context

Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Mr. Speaker, it is great to be here this morning to speak at the report stage of Bill C-86.

We heard the news this morning with respect to General Motors, and the workers and their families are in our thoughts. Our government will do everything we can to support them during this period.

Canadians are an ambitious lot and they expect the same from their government. They expect us to be ambitious. They expect us to be bold. They expect us to be trailblazers. In this globally competitive world in which we work, operate and compete, we know that Canadians can compete and succeed globally, which is what they are doing. We also know that our strong economic performance is not only about a strong economic record of performance; it is also about ensuring that all Canadians benefit from strong economic growth. Yes, our government has been bold on pursuing policies that will ensure a robust and strong future for our economy and our workers and help those middle-class Canadians working hard and those who wish to join the middle class and are working hard, but also to ensure that all Canadians benefit. That is what our government has been about since we were elected in October 2015.

In Bill C-86, our poverty reduction targets are one of the things that defines this government. First, we are aiming to reduce poverty levels to 20% below the 2015 level by 2020 and to 50% below the 2015 level by 2030. That is ambitious. We put out a policy paper on that, “Canada’s First Poverty Reduction Strategy: Opportunity For All”, which I looked at over the weekend. That paper is telling of what our government's values are and the values for Canadians and how we are going to lift up Canadians, but we are also going to ensure that those people who take risks are rewarded.

Corporations are enjoying after-tax profit levels that can be measured by margins at a very high level. They are doing well. Wage growth has rebounded from the previous government's era of policies that basically led to stagnation. Employees are doing well. Workers are doing well. That is what our government is about.

Since 2016, the Canada child benefit has provided an extra $25 billion to families in Canada over five years. The guaranteed income supplement provides $647 million or roughly $3 billion or $4 billion over a couple of years, helping 900,000 single seniors across Canada, our most vulnerable, and lifting hundreds of thousands of them out of poverty. The Canada workers benefit provides $3 billion over five years, lifting 70,000 Canadians out of poverty and helping two million Canadians from coast to coast to coast who are working hard. For someone earning approximately $15,000, that is an extra $500 a year. Those are our policies. That is our values statement on where our government is taking this country.

In 2017, we had 3% economic growth and this year it is around 2% and change. We are going the right way. Recently, the Governor of the Bank of Canada was at the finance committee, a committee which I have the pleasure of sitting on. He stated that our economy is chugging along nicely, benefiting from strong export growth and good business investment levels. We have seen that, and we should be proud of that.

Bill C-86 also introduces a number of measures that will benefit my kids in the future. There is pay equity legislation to ensure equal value for equal work. That would benefit women. My two daughters at home will know that the work they do will be rewarded the same as other work. That is very important and should be applauded. We have said that the ministry for women is a full ministry getting full resources. Again, we must reduce and remove structural barriers that women face in this country. We must also help other countries pursue those endeavours, because we know that for Canada and Canada's economy to truly succeed, all Canadians must be full participants. That includes under-represented groups and all Canadians.

I am proud of Bill C-86. There is a lot in it. There is a lot we went through during committee. There is a lot that will strengthen our foundational economy and move us forward. We will do it in a very measured, prudent way.

As many members know, and many of my colleagues have repeated a few times, I spent approximately 22 years in the global financial markets in New York City and Toronto. I was a credit rating analyst which basically means I looked up the ratings of corporations and sovereigns. Canada's AAA rating is thanks to former finance minister Paul Martin. It has been that since our government many years ago. We will maintain our fiscal anchor, our fiscal target and the targeted debt-to-GDP ratio is going to decline. It is going to hit about 28.5% in the 2023-24 period. Again, we are undertaking measures that will strengthen our economy, help the middle class, help those Canadians wishing to join the middle class. We will do it in a measured, prudent manner. That is what we see in many of the measures in Bill C-86.

One of the things that is emphasized by economists is this thing called the labour force participation rate. We see now in Canada looking at working age Canadians, 15-year-olds to 64-year-olds, we are at the highest rate of labour force participation in our history. Why is that? Yes, we have created 550,000 jobs in Canada, a majority of them full time and a majority of them in the private sector. I say “we” very humbly because it is risk-takers across the country, entrepreneurs, small business owners like the ones in my riding of Vaughan—Woodbridge, very successful people who invest their time and resources, who take risks and yes, hire and employ folks.

What has happened is the labour force participation rates have risen for all groups, including women and under-represented groups. That is what we need to succeed. That is what we are seeing. Bill C-86 contains those types of measures: pay equity legislation which is groundbreaking; a ministry for women; child-rearing drop-in positions; a new parental sharing benefit. It is said that the sincerest form of flattery is imitation, and those provisions are similar to the ones that are used in the province of Quebec. When two parents can share benefits, they get an extra couple of weeks. In Quebec, the labour force participation rate for women is much higher than in other parts of the country. With this, we will improve that. We have learned a measure from la belle province.

On the poverty reduction targets, I cannot emphasize this more than to say that we will be going from one in eight in poverty, about 12% of the population today, to about one in 10 in 2020, which is 10% and we have targeted one in 17, which is roughly 6%. Currently, we have lifted 650,000 Canadians out of poverty by the measures we have introduced in the last three years. That is something worth recognizing, but we need to recognize there is more work to be done.

I often like to say that we have done a lot for our economy. There are a lot of good things. We have created 550,000 jobs. We have attracted a lot of investment. LNG was approved in my home province of British Columbia. I say it is my home province because that is where I was born and raised. However, our work is not done until all Canadians can succeed, have a good job with benefits, good pay and provide for a brighter future for themselves, and most importantly, their families as many of us do here. That is what is important. That is the material in Bill C-86. It was those measures that I had the pleasure of debating at committee.

We have also done some other things that Canadians will benefit from. We have improved their protection when they visit a bank or financial institution. We have introduced measures to make sure that all organizations, all high net worth individuals, pay their fair share of taxes. We continue to do that. We have invested $1 billion into the CRA in the last two or three years to ensure that it has the resources and tools to go after those who are not paying their fair share.

In my riding of Vaughan—Woodbridge, I am blessed to have a number of entrepreneurs. They are going to benefit in January 2019. We have moved our small business tax rate from 11% down to 10% and now we are moving it down to 9%, a savings of $7,500 annually for small business owners that work tirelessly day in and day out.

Those are my humble thoughts today on Bill C-86 and I look forward to questions and comments.

Motions in amendmentBudget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 12:35 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, we have been very fortunate at the finance committee to have the Minister of Finance come before it many times. He was just there a short while ago for an hour, as were officials after that. I believe it was on the estimates and Bill C-86. As well, as a country, Canadians would want the minister to be out there talking about the programs the government is implementing.

I want to come back to the first part of the member's question. Yes, we are certainly saddened about what happened in Oshawa with respect to General Motors. Things happen in an economy. Sometimes there is a shock to the economy. What this government is doing is investing in the economy so we can be assured, as a country, that we are not tied to one industry or one town. There is no doubt that the government will deal with that problem. We have always tried to be there for the workers in these kinds of situations and have made the necessary investments to ensure business can continue. The fall economic statement addresses that fact as well with respect to ensuring our industries are able to compete with those tax reforms south of the border.

Motions in amendmentBudget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 12:25 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I am pleased to take part in this discussion during the report stage of Bill C-86.

In essence, Bill C-86 would implement certain provisions of the budget tabled in Parliament on February 27 and other measures. The bill builds on the commitments made during the last election and speaks to the government's plan to invest in the Canadian people to build an economy that works for everyone.

Although not the topic for discussion today, the fall economic statement tabled last week, which among other things addressed a lot of the immediate business concerns regarding competition with the United States, should be added in. In doing so, one can really see that all of the actions put together, including in Bill C-86, really show Canada as the place to be. It is the country with which one can invest and invest with some security. It is a place to raise a family, It is a country with a bright future for its citizens, building on a progressive social and economic agenda that began with our policy thrust that followed the last election.

Bill C-86 starts with improving tax measures for businesses and individuals to ensure every Canada has a real and fair chance of success. Through this bill, our government would improve access to the Canada workers benefit, modernize the federal labour standards and improve protection of bank consumers.

The member opposite talked about the size of the bill, but to do all the things we needed to do and carry forward from the previous budget, it had to be a substantively sized bill.

Through the bill, we would correct the damage done by the previous government against charities. The bill would now allow charities to pursue their charitable purpose, but also would allow them to be involved in the development of public policy. That will give citizens back their rights to participate fully in our democracy, even though they are part of a charity.

The bill addresses pollution pricing. It further legislates gender budgeting and strengthens our capacity to advance gender equality with the creation of status of women as a department.

The bill also addresses pay equity. The idea of equal pay for work of equal value is a very progressive step in this legislation. I want to highlight the bill's proposed measures to introduce this proactive pay equity legislation.

Our government committed to tabling such legislation by the end of this year. Today we are living up that commitment as we have lived up to so many of our commitments we outlined in the last election. We are going above and beyond the current approach. We are moving from a complaints-based system to a proactive system, which will require employers to regularly review their compensation systems, identify inequalities between jobs mostly held by men and jobs mostly held by women and take action to eliminate them. In this way, we are presenting Canadians with balanced, meaningful and effective pay equity reform.

In fact, the McKinsey Global Institute estimates that by taking steps to advance equality for women, such as employing more women in technology and boosting women's participation in the workforce, Canada would add $150 billion to its economy by 2026. The reality is that better equality for women means a strong economy for all Canadians.

We are delivering a proactive pay equity regime that works for the diverse types of workplaces found in the federal jurisdiction, ranging from the public service to small businesses. As stated earlier, although it is very progressive legislation, it is also good for the economy.

I want to take a moment and turn to a couple of areas that Bill C-86 builds on and adds to that are of special interest to the people in my province. I will start with the Canada child benefit, or CCB.

Compared to the previous system of child benefits, the CCB is simpler, more generous, entirely tax free and better targeted to those families that need it the most. With the CCB, nine out of 10 families with children are now receiving more money each month than under the previous system. To ensure the CCB keeps up with the rising cost of living, we indexed it last summer, two years ahead of schedule. This means the Canada child benefit will provide even more financial assistance to the low and middle-income families that need it most, such as single parent families. The extra support it gives makes a big difference for those working hard to make ends meet, like single working parents. The additional support from the CCB helps pay for things that can make a real difference in a child's future, like nutritious food, sports activities or music lessons.

The government also cut taxes for the middle class, and those cuts are now helping more than nine million Canadians.

By this time next year, as a result of these two measures, a typical family of four will receive about $2,000 more each year in benefits than it received in 2015.

However, there is another factor with respect to the Canada child benefit that is not often talked about, and that is the stress it takes away from the enjoyment of life for low-income families, the working poor that have children, and their ability to do the job and participate in the general community. The Canada child benefit lessens that stress. It gives them the opportunity to fully participate in the social and economic affairs of the nation.

The bottom line is that this means more money in the pockets and bank accounts of hard-working Canadians, more money to help with the high cost of raising their children and more money for them to save, invest or spend in their own communities. We are seeing the benefits of that across the economy. Canada's economy is strong and growing, and our plan is working.

The budget implementation act also includes an important measure that would directly invest in those Canadians who want to work. I am talking about the Canada workers benefit, or CWB, which would allow low-income workers to take home more money while they work. The new Canada workers benefit is a more generous benefit that will replace the current working income tax benefit as of next year. The CWB is designed to encourage more people to enter and stay in the workforce and to help more than two million Canadians who are working hard to join the middle class.

Under the new CWB, low-income workers earning $15,000 annually could get almost $500 more in benefits in 2019 than they are getting this year. In addition, the CWB's expanded eligible income range will ensure that more workers are entitled to receive it. This will be a big improvement for those Canadians overall. Improvements in the new Canada workers benefit will lift approximately 70,000 Canadians out of poverty.

Bill C-86, which we are dealing with at report stage, really builds on our commitments made in the last election. It is another step along in the process to ensure that all Canadians have the best chance to participate in our social and economic affairs as a nation, as well as to ensure families are more prosperous and have more tools at their disposal to participate in our great country called Canada.

Motions in amendmentBudget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / 12:05 p.m.
See context

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Mr. Speaker, often we say we are honoured to stand up in this House. However, today I am actually very disappointed to have to stand up in the House and talk to the amendments I have proposed, why I proposed these amendments, and how the current government has failed to live up to both its promises with respect to the 2015 election and its commitments regarding engagement with indigenous people before it puts proposed legislation on the table.

Members will recall that back in 2015 the government said there would be no omnibus legislation and that it would never table omnibus bills. It also said that if something was not in the budget it would not be in any budget implementation act. Those were commitments it made to Canadians across this country and it has repeated. However, what we have learned, like with its promises for a balanced budget and democratic reform, is that it is simply not following through on its promises. For some reason, it has managed to get away with people not calling it on that. However, I think it is time that Canadians realize that many of the things the government has said it is not following through on.

What has happened? We had the budget implementation act, Bill C-86, land on our tables and it was 802 pages. That is a significant size for a bill. I guess I should not have said, “land on our tables”, because the bills are not printed anymore and there are very few copies. However, it is really quite a massive implementation act.

We do not get a paper copy anymore. Therefore, as we try to look through and understand what is in this massive bill with the tools we are given, like we often do in this House, the government did not even bother to use a format in the budget implementation act that would link us to the sections we wanted to read. In the case that I am talking about, there were three particular areas that related to indigenous legislation, and I could not even get to read what was in the act in a reasonable manner. I had to scroll for minutes and minutes to get to where I needed to be. Therefore, not only do we not have a hard copy, but the government has made it virtually impossible to try and get to the sections of the bill that we need to get to without going through a very onerous process. Quite simply, it should be ashamed of itself because that is not acceptable.

What do we have in this particular bill? As I indicated, there were three sections, division 11, division 12 and division 19, that were specifically related to the indigenous changes.

I am going to focus on division 19, which enacts the addition of lands to reserves and reserve creation act. That was not in the budget of 2017. It was not in the budget of 2018. It was almost impossible to find, but is a significant change the government is proposing, and should be a stand-alone piece of legislation. I hope when people vote for the report stage amendments that the government will reintroduce it in the way it should have introduced it in the first place, as a stand-alone piece of legislation that will go to the indigenous affairs committee to review further.

The next thing that we spot is that it is in the budget implementation act, but it was not referred to the indigenous affairs committee. A motion was brought forward at the indigenous affairs committee saying that we should at least look at this so that we understand what the intentions are, what the government is trying to do, so that we could determine if there were any suggestions we needed to make through amendments. The Liberal majority on the committee voted that down. Therefore, division 19 has had virtually no scrutiny in Parliament. The second reading debate was cut so short that there was no time to even have a conversation about division 19.

One of the interesting things is this. The government has said there is no relationship more important to it than that with indigenous peoples in Canada. It has also committed to a consultation process before it introduces legislation. It committed to the UN Declaration on the Rights of Indigenous Peoples, which ensures that, when laws are going to impact indigenous peoples in this country, the government will have a robust consultation process before it introduces any legislation.

I will talk about what happened as the Senate was doing a pre-study on this particular division.

Susan Waters, the director general, lands and environmental management branch in INAC said, “The Treaty Land Entitlement Committee was part of our outreach and engagement. We work closely with them. We are working with them to address the issues that were identified in the arbitration.... The Treaty Land Entitlement Committee are very much aware; we have spoken with them personally, and we continue to speak with them about this proposal.”

Chris Henderson, the executive director of Treaty Land Entitlement Committee of Manitoba, said:

We are concerned about this proposed legislation simply by the fact that nobody from the government ever asked us if we want the act, and also in terms of how will this act improve the land conversion process under the 1997 TLE framework agreement.... Now, with this proposed new ATR legislation, nobody from the Government of Canada ever came to us or our member First Nations to ask us, first, do you want this ATR legislation; and, second, what impacts will there be if we do propose legislation? We were never asked those questions. So out of nowhere, we have this new proposed ATR legislation before the House of Commons. At this point, it's somewhat premature to ask us if we want it because, again, we were never asked to begin with if it's something we asked for.

What we have in division 19 is a change, and it could be a significant change. However, we do not know how significant it is, because we have not had the opportunity to have it referred to committee to do our due diligence in terms of bringing witnesses forward. There is no question that the government has absolutely failed. I bet if I went across this country and asked chiefs if they knew about the new addition to reserve legislation that was hidden in the budget implementation act, they would be very puzzled and very concerned.

Really, how does that meet the government's commitment? It is another case of the government continuing to stand up and say the nice words but when it comes to doing the work, it just does not get it done. This is why it was such a mistake to put this into the budget implementation act.

We looked at Bill S-3, which was a stand-alone piece of proposed legislation. The government said not to worry, it had it all right, it was a response to a court case, we heard from the officials and it looked like it might be a reasonable path forward. What we found when it got to committee was that it was actually a mess. People who came to us in committee said that it was a problem and that it was a mess.

I hope the other two divisions are fine, but they have not had the scrutiny of divisions 11 and 12. There is the First Nations Land Management Act, which is very significant, the First Nations Fiscal Management Act, which is again pretty significant, on organizations and operations. However, nothing has been done.

I think it would be important for the Liberals especially and all members of the House to say that we promised we would not do this, but we did it. We have some testimony over in the Senate, and it should lead us to be a little concerned about what we have done. We need to actually support the amendments proposed by the Conservatives and do some proper process in terms of making sure that we are going to move forward with a piece of legislation that is going to get the job done. Otherwise, again, it is another broken promise and another failure of the Liberals.

Speaker's RulingBudget Implementation Act, 2018, No. 2Government Orders

November 26th, 2018 / noon
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Conservative

The Deputy Speaker Conservative Bruce Stanton

There are 23 motions in amendment standing on the Notice Paper for the report stage of Bill C-86.

Motion No. 5 will not be selected by the Chair as it was defeated in committee.

With respect to Motion No. 9, the Chair has received a letter from the member for Banff—Airdrie about why his motion should be selected even though it was rejected in committee. However, I am not convinced that the circumstances surrounding his motion are so exceptional that it deserves to be considered again at report stage as provided for in Standing Order 76.1(5). Motion No. 5 will therefore not be selected.

All remaining motions have been examined, and the Chair is satisfied that they meet the guidelines expressed in the note to Standing Order 76.1(5) regarding the selection of motions in amendment at report stage.

Motions Nos. 1 to 4, 6 to 8, and 10 to 23 will be grouped for debate and voted upon according to the voting pattern available at the table.

I will now put Motions No. 1 to 4, 6 to 8, and 10 to 23 to the House.

The House proceeded to the 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.

Motion that debate be not further adjournedResumption and Continuation of Postal Service Operations LegislationGovernment Orders

November 23rd, 2018 / 10:15 a.m.
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Liberal

Patty Hajdu Liberal Thunder Bay—Superior North, ON

Mr. Speaker, I am grateful for the question from the member opposite. It allows me to reiterate the work we have done in partnership with organized labour to strengthen workplaces and to provide decent work in this country for the most vulnerable workers.

There is no question that our government has made huge strides to actually protect workers in Canadian workplaces. He is right. Since forming government, we have repealed extremely harmful legislation that made it much harder for unions to organize and collectively bargain. We amended the Canada Labour Code to provide additional rights to flexibility for workers and to implement different leaves. We strengthened occupational and health and safety standards for workers so that they would have safe workplaces, something unions have fought for for a very long time. We passed Bill C-65 to protect workers from harassment, sexual violence and violence of all kinds. We ratified ILO Convention 98, which protects the right of workers to collectively organize and bargain.

In Bill C-86, we would modernize labour standards, which would, again, provide basic standards for the most vulnerable, and dignified work in workplaces that oftentimes vulnerable workers struggle in. We are introducing pay equity legislation, which would provide for mandatory assessments of work in federally regulated workplaces and make sure that women receive pay for work of equal value. We have almost doubled the benefits through the Wage Earner Protection Program Act, something unions have talked consistently about needing for those vulnerable workers. Finally, and I do not think it is a small thing, we have taken steps to ban asbestos in our workplaces, something organized labour again has fought for.

We have worked closely with organized labour. We will continue to work closely with organized labour. I am proud of the record of this government.

Motion that debate be not further adjournedResumption and Continuation of Postal Service Operations LegislationGovernment Orders

November 23rd, 2018 / 10:10 a.m.
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Liberal

Patty Hajdu Liberal Thunder Bay—Superior North, ON

Mr. Speaker, I am pleased that the member opposite wants to talk about the work we have been doing with labour and the support for workers in our country, because in fact there is no question that our government has taken the well-being of workers very seriously.

First, we repealed Bill C-525 and C-377. We passed Bill C-4, which restored fair and balanced labour relations in the country. It made it easier for organized labour to recruit new members and grow their movements. We amended the Canada Labour Code to give federally regulated employees the right to flexible work arrangements and implement different leaves. We strengthened occupational health and safety standards. We passed Bill C-65, which provides federally regulated employees with protection against workplace violence. We ratified ILO convention 98 to ensure the right to organize and to collective bargaining.

Through Bill C-86, we are modernizing labour standards, largely informed by the conversations we have had with organized labour about the most vulnerable workers in our workplaces and the protections they need in a modern Canada Labour Code.

We introduced pay equity legislation. Again, it was appealed for by labour for many years before we formed government. We worked with them to make sure we could listen to those concerns and address something that is fundamentally a right: equal pay for work of equal value. We have almost doubled the benefits from the wage earner protection program.

I could go on. Our government profoundly believes in the rights of workers, especially the most vulnerable workers in our workplaces, and we have worked very well with organized labour to make sure we get those details right.

Business of the HouseOral Questions

November 22nd, 2018 / 3:10 p.m.
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Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Mr. Speaker, this afternoon, we will resume third reading debate of Bill C-81, the accessibility legislation.

Our intention for tomorrow is to call Bill C-75, justice modernization, at third reading. We sincerely hope that Canada Post and the Canadian Union of Postal Workers reach an agreement. However, if they do not, we will call government Motion. No. 25, concerning the resumption of postal services, for debate tomorrow.

On Monday, we will consider report stage and third reading of Bill C-86, Budget Implementation Act, 2018, No. 2. This will also be the business for Tuesday and Wednesday.

November 22nd, 2018 / 1:15 p.m.
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Committee Researcher

David Groves

Bill C-419, an act to amend the Bank Act, the Trust and Loan Companies Act, the Insurance Companies Act and the Cooperative Credit Associations Act with regard to credit cards would make a series of amendments to those acts around credit cards. It would, for example, regulate how banks allocate payments across different credit accounts with different interest rates, require that a credit card provider seek express consent before increasing a credit limit, and require that the credit card advertisements include information on fees and rates.

I have noted the bill in my analysis because of some overlap in substance with Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures. Division 10 of that bill, which is entitled “Financial Consumer Protection Framework”, would make a series of amendments to the Bank Act, some of which touch on credit cards as well. It would, for example, amend the Bank Act to add proposed section 627.35, which would regulate the allocation of payments across credit accounts with different interest rates, just like Bill C-419. It would also include a requirement that bank advertising be “accurate, clear and not misleading”, and would require that express consent before providing any product or service.

To summarize, both bills would regulate, among other things, the ways in which banks administer, offer and advertise credit card accounts. However, while Bill C-419 extends to cover credit card providers that are regulated under four acts—the Bank Act, the Trust and Loan Companies Act, the Insurance Companies Act and the Cooperative Credit Associations Act, Bill C-86 only amends the Bank Act.

One condition that this committee considers in assessing the votability of private members' items is that an item—this is the quote—“must not concern questions that are currently on the Order Paper or Notice Paper as items of government business”. In this case we have a situation of some degree of overlap between Bill C-419 and Bill C-86, which is on the Order Paper and is a piece of government business, but there are differences in scope. Bill C-419 has a broader statutory ambit. It would extend its provision to three other acts and to the institutions that would ultimately be covered under those acts.

Postal Services Resumption and Continuation ActGovernment Orders

November 22nd, 2018 / 1:10 p.m.
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Parliamentary Secretary to the Minister of International Development, Lib.

Kamal Khera

Mr. Speaker, as I have stated, I have received many calls, including during our constituency week. I have met with many postal workers. I have also met with businesses, individuals and constituents who have been impacted by the strike. As members know, our government has always supported union workers. There is no question that our government has made huge strides with organized labour and Canadian workers.

Since forming government, we have repealed Bill C-525 and Bill C-377 to restore fair and balanced labour relations. We amended the Canada Labour Code to give federally regulated employees the right to flexible work arrangements, and have implemented different leaves. We strengthened occupational health and safety standards. We passed Bill C-65 to protect federally regulated employees from workplace harassment and violence. In Bill C-86, we are modernizing labour standards to reflect today's workplaces. We are introducing pay equity legislation to ensure fairness. We are almost doubling the benefits of the wage earner protection program.

We have always had the back of labour unions. We have always stood with them. We will continue to stand beside them and support them.

Postal Services Resumption and Continuation ActGovernment Orders

November 22nd, 2018 / 12:35 p.m.
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Liberal

Dan Ruimy Liberal Pitt Meadows—Maple Ridge, BC

Mr. Speaker, I would like to remind my colleague on the other side that since forming government, we have been pretty busy. I am proud to have worked personally on repealing Bill C-525 and Bill C-377 to restore fair and balanced labour relations. We passed Bill C-65 to protect federally regulated employees from harassment and workplace violence. In Bill C-86, we are modernizing labour standards to reflect today's workplace. We are introducing pay equity legislation to ensure fairness.

It is quite clear that the Liberals cherish the relationship that we have with our labour organizations. It is important we continue to work with them to find better ways to execute what needs to happen.

In this case, as a government, there has to be a time where action has to happen. We are still hopeful that before this legislation is posted, they can come to a conclusion.

November 22nd, 2018 / 12:05 p.m.
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William Harnum Chair, Canadian Copyright Institute

I appear before you today on behalf of the Canadian Copyright Institute, an association of authors, producers, publishers and distributors of copyright works. Founded in 1965, the institute seeks to encourage a better understanding of copyright.

We strongly support two basic models for the remuneration of authors and publishers. The first is the traditional publisher model, in which the publisher holds and manages the rights of professional authors, whose works they edit, design, produce, market, sell and distribute. The second is the exercise and management of some rights by collective societies representing authors and publishers. Both basic models are important, as they support each other. Collective societies engage in experiments to provide educators with convenient sources of copyrighted material, and publishers continue to experiment with new methods of delivery, including new ways of making works available.

Getting permission to make copies of published copyrighted content was onerous prior to the formation in 1988 of Access Copyright, which at the time was known as CANCOPY. This is a collective society that today represents more than 12,000 Canadian authors and 600 publishers and, through agreements with other collectives, countless authors and publishers worldwide.

When Access Copyright's blanket licences became available in the 1990s, the arduous task of clearing individual permissions from individual rights holders was replaced by negotiated collective licences covering most published copyright material. Collective licensing became the norm for copying at schools and other educational institutions. It was easy, efficient and cheap for educators to access content from both Canadian and foreign publications from Access Copyright and Copibec. Authors and publishers were paid by these collective societies.

Today widespread, large-scale, systematic copying of copyrighted content in educational institutions, without compensation, damages the remuneration models I have described and hurts both authors and publishers. Copying substitutes for purchasing books and other publications from publishers and for obtaining licences, mainly from collective societies, to copy excerpts from publications. Emboldened by the 2012 copyright amendment extending fair dealing to include education as a purpose, educators decided that most of what was being copied should not be paid for at all. They promulgated arbitrary fair dealing guidelines permitting, for example, copying of 10% of a work, a chapter from a book, an article from a periodical or newspaper, or an entire poem or artistic work from a publication containing other works.

These guidelines more or less reflect the guidelines in the licences that educators had negotiated with Access Copyright and complied with for over 20 years. The only difference is these new guidelines provide for no revenue. The market for selling and licensing copyrighted material is now badly damaged, both for publishers and for writers. A reduction of revenues in an industry such as ours with narrow profit margins for publishers and low income for writers and authors is significant.

Before moving to our specific recommendations, let me say that we welcome the amendments in the budget bill, Bill C-86, intended to accelerate Copyright Board proceedings, including case management and new timelines. We generally affirm our support for the role of the Copyright Board in setting tariffs and mediating disputes on licensing terms between users and collective societies.

Our recommendations to you today fall into two categories, both essential for the functioning of the two remuneration models we have described. The first recommendations address what may be licensed by collective societies, and the last recommendations concern enforceability and remedies that will deter infringement and encourage users to negotiate seriously with collective societies on the use of copyright material.

First, we recommend that copying for the purpose of education in educational institutions be clarified by clear parameters, either in regulations or in the Copyright Act itself. There are already a number of specific exceptions designed for educational institutions, but fair dealing for the purpose of education is a wide-open door for large-scale infringement.

Australia provides an example of a statutory licence for educational institutions managed by a collective society designated by the Australian government and subject to guidelines. In the United Kingdom, copying of excerpts from a work for the purpose of instruction for non-commercial purposes without a licence is restricted to not more than 5% of any work in any 12-month period, but only to the extent that licences are not available for that copying.

This is a precise exception, not a category of fair dealing.

Copying for the purpose of education in Canada should require permission either from a collective society or a rights holder. For most educational institutions this permission should be a comprehensive or blanket licence, which is either an agreement negotiated by a collective society and users of its repertoire, subject to the oversight of the Copyright Board, or a tariff administered by a collective society requiring the approval of the Copyright Board, usually following a hearing.

Second, we recommend clarification that tariffs approved by the Copyright Board are mandatory. There should be no uncertainty regarding the enforceability of royalties set by the Copyright Board. The education sector is unlikely to pay voluntary tariffs.

Third, we recommend the repeal of a provision inserted into the Copyright Act in 2012 that reduces awards of statutory damages against non-commercial infringers to trivial amounts. Any copyright owner whose work is infringed should be entitled to damages sufficiently high to be a deterrent, whether the infringer had a commercial or non-commercial purpose or whether any other copyright owner has elected to receive damages from the same defendant. Few authors or publishers have the resources to engage in the litigation necessary to prove actual damages. Electing statutory damages avoids the necessity of that much litigation.

Fourth, we recommend harmonizing the statutory damages available to collective societies at a level sufficiently meaningful to ensure better compliance with licences and tariffs approved by the Copyright Board. Currently, performing rights collectives like SOCAN may opt for an award of statutory damages between three and 10 times the amount of the applicable royalties. This remedy should be available to all collectives, including collectives like Access Copyright. Otherwise, the worst-case scenario for a user is retroactive payment of applicable royalties.

There is no reason musicians and songwriters deserve to be paid for the use of their work while authors and visual artists do not. We recommend that all copyright collectives should be eligible to collect statutory damages between three and 10 times the value of the tariff. This system has worked well for performing rights music collectives for 20 years and should be extended to collectives representing other rights holders.

It is our view that changes to the Copyright Act along the lines we recommend will provide fairer remuneration for authors and publishers and better access to creative works for users, will go a long way towards restoring a functioning marketplace for Canadian content and will benefit all Canadians.

Thank you.

FinanceCommittees of the HouseRoutine Proceedings

November 22nd, 2018 / 10 a.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I have the honour to present, in both official languages, the 26th report of the Standing Committee on Finance 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. The committee reports the bill with amendments.

While I am on my feet, I move, seconded by the member for Yukon:

That the House do now proceed to orders of the day.

November 21st, 2018 / 6:10 p.m.
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Suki Beavers Project Director, National Association of Women and the Law

I'm going to hazard a guess that I may be more fascinating. Let's see. The gauntlet has been thrown down.

Good evening and thank you very much for this opportunity to speak on Bill C-78, on behalf of the National Association of Women and the Law. As I think most of you know, NAWL is an incorporated, not-for-profit, feminist organization that promotes women's equality in Canada through legal education, research and law reform advocacy. Advocating for the much-needed changes to family laws, including the Divorce Act, has been a focus of NAWL's work since the early 1980s, so it brings me great pleasure to begin this evening by congratulating the government for introducing C-78. There are many aspects of this bill that we fully support.

However, before I get into talking about the specifics, I want to reflect that NAWL worked jointly with Luke's Place in developing both a discussion paper and a brief on C-78, which I think you all now have. Our joint brief has been endorsed by 31 organizations from British Columbia, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick, as well as more than a dozen national feminist and equality-seeking groups, and is the fruit of consultations that we convened with feminist lawyers, academics, service providers and advocates. I mention this, not just because we're proud of our network and of our collaborative work—because we are—but also because it's important to emphasize the depth and the breadth of our shared feminist intersectional analysis of Bill C-78, particularly in relation to the issue of family violence in the context of divorce.

Now, let me turn to some specifics, beginning with the aspects of the bill that we fully support. We congratulate the government for putting the best interests of the child at the centre of this bill and for developing a much-needed set of criteria to help guide the determination of what will be in the best interests of each child, based on the recognition that every family and every child's needs are unique. NAWL fully supports the exclusion from this bill of any presumptions of shared parenting. Determining what's in the best interests of the child must be done on a case-by-case basis.

We also fully support the inclusion of family violence in this bill and a comprehensive definition of it that recognizes that family violence exists on a spectrum.

I now want to turn to some aspects of the bill that we think do not yet go far enough because, as we know, the impacts of family violence can continue long after a marriage ends.

Our first recommendation is that a preamble be added to this bill that acknowledges the gendered nature of family violence and confirms that addressing family violence is one of its aims. The evidence here is clear and unequivocal. As with other forms of gender-based violence, the majority of victim survivors of violence within marriage, and when it ends, are women. Men are overwhelmingly the perpetrators of this violence. A preamble is important because it can guide the interpretation of an act and is good practice. Just a few weeks ago, when it was used in Bill C-86 to frame the establishment of the new department of women and gender equality, which will replace Status of Women Canada, that bill included a preamble that recognized the government's obligations to advance women's rights and gender equality. A similar preamble should be added to C-78 that recognizes that women experience family violence, as a form of violence against women, and that women have diverse lived experiences of it. We've drafted a preamble that we hope this committee will recommend to be included in the act.

In addition, we also recommend that a definition of violence against women be added, which acknowledges that it is a form of gender-based discrimination that's experienced by women in multiple ways and shaped by other forms of discrimination and disadvantage. This intersects with race, indigenous identity, ethnicity, religion, gender identity or gender expression, sexual orientation, citizenship, immigration or refugee status, geographic location, social condition, age and disability. This would be consistent with the government's commitment to GBA+.

The appalling and ongoing situation of violence against indigenous women must be redressed immediately. We urge the federal government to consult with indigenous women's groups on the potential impacts of C-78 on indigenous women, their children, their communities and their families to ensure the cultural heritage, safety, security, autonomy and rights of indigenous women and their children are respected, protected and fulfilled, and not further endangered or violated by any direct or indirect impacts of any of the provisions of C-78.

We propose the addition of provisions to help ensure decision-makers do not rely on harmful myths or stereotypes about family violence, even inadvertently, when they're making decisions in the context of divorce. While I don't have time to read through the entire section that we have drafted—I hope you will, though—I will highlight some of them, including for example, that a court should not infer that because a relationship has ended or divorce proceedings have begun the family violence has ended.

A court should not infer that if claims of family violence are made late in the proceedings or were not made in previous proceedings they're false or exaggerated. A court should not infer that if a spouse continued to reside or maintain a financial, sexual or business relationship—or a relationship for immigration purposes—with a spouse, or has in the past left and returned to a spouse, family violence did not happen or the claims are exaggerated.

The court should not infer that leaving a violent household to reside in a shelter or other temporary housing is contrary to the best interests of the child. The court should not infer that fleeing a jurisdiction with children in order to escape family violence is contrary to the best interests of the child. Also, the court should not infer that the absence of observable physical injuries or the absence of external expressions of fear mean that the abuse did not happen.

I don't have time to adequately address this issue, but I also want to reflect some thoughts on changes to language included in Bill C-78.

We understand and commend the objective of reducing tensions and conflict in divorce proceedings. However, there is no evidence that removing the familiar language of custody and access will actually reduce conflict and benefit children. Further, there's a real risk that this change in terminology will create uncertainty that will be available to abusers to exploit and to perpetuate ongoing abuse through court proceedings and otherwise.

Indeed, we heard from feminists in other jurisdictions, including British Columbia, where similar language changes have been made, that they have not seen a reduction in conflict in family law proceedings after the terminology of custody and access was removed from the provincial Family Law Act. Therefore, we recommend that the language of custody and access be retained and inserted in Bill C-78.

In addition, we believe the proposed definitions of parenting orders and parenting responsibilities are too vague and ambiguous and also provide opportunities for abuse. We recommend, therefore, that a clearer set of responsibilities be set out for the parent with decision-making responsibility.

Because of time constraints, I'm going to end my comments here, but I'm of course eager to answer any questions that the committee might have. I want to simply confirm that NAWL supports the positions that Luke's Place will now present, which, like ours, are the product of our joint work together.

I thank the committee again for providing NAWL with the opportunity to appear this evening.

November 20th, 2018 / 6:05 p.m.
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Kamloops—Thompson—Cariboo, CPC

Cathy McLeod

Mr. Chair, I do want to make one statement before we move to the final votes.

There are no longer hard copies provided. With 802 pages I guess they wanted to save us all from back injuries.

My concern is that there were three sections that related to my portfolio. There were no linkable links, so in order to actually get to the part of the BIA, in 802 pages, you actually had to scroll with a very slow-loading document. I think that if this ever happens again, it is a point of privilege for parliamentarians to do the work they need to do. Division 11, division 12 and division 19 were completely inaccessible for me to look at. I think it's unacceptable for a government to present an 802-page budget document in a form so that members of Parliament cannot actually look at the divisions they need to look at in an appropriate way.

November 20th, 2018 / 6:05 p.m.
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Liberal

The Chair Liberal Wayne Easter

Can we deal with it this way then? Can we table this motion to after the vote and deal with the BIA now? There are only five votes left on this and then we're done. Then we would come back and deal with your motion.

November 20th, 2018 / 6 p.m.
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Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Mr. Chair, I would like to finish the business of the BIA before we consider this, and then break and perhaps adjourn so that we can go and vote, please.

November 20th, 2018 / 6 p.m.
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Liberal

The Chair Liberal Wayne Easter

We haven't voted on clause 470 yet.

As long as we're not out of order in doing that, we'll deal with this motion and then come back to complete our work on the BIA.

Mr. Kmiec.

November 20th, 2018 / 6 p.m.
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Liberal

The Chair Liberal Wayne Easter

We're not out of order here by dealing with this motion prior to dealing with the rest of the BIA, are we?

November 20th, 2018 / 5:40 p.m.
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Senior Policy Analyst, Labour Standards and Wage Earner Protection Program, Workplace Directorate, Department of Employment and Social Development

Charles Philippe Rochon

To clarify, the BIA does not institute new leaves—the 104 weeks and 52 weeks. These were put in place in 2012. What the BIA does is eliminate the length-of-service requirements, in order for an employee to qualify for these leaves. The code currently states that employees need six months of continuous employment. This will be removed as part of the BIA, and that's what the BIA does.

November 20th, 2018 / 5:40 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you very much, Mr. Chair.

I wanted to get a sense of the bereavement leave for parents whose child is a victim of crime or a victim of violence. How was that 104 weeks arrived at? Were they taking into consideration psychological impacts? Are there comparative bereavement leaves for child crime victims in other jurisdictions? I'm looking for the genesis of that 104-weeks figure in the BIA, and what the considerations were before that figure was arrived at.

November 20th, 2018 / 5:35 p.m.
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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

I received a lot of really heartfelt cards and emails from both the minister and you, Peter, and others. I appreciate all that, but this is not just about me, because that's already happened to me. It's about all the parents to whom it will happen in the future.

If you look at the contents of the BIA, to say that we do not have the expertise or all the information is an argument against the BIA itself, because it covers so much territory. In the BIA, we, this committee, are going to create a leave of 104 weeks for every employee who will be entitled to it “if the employee is the parent of a child who has died and it is probable, considering the circumstances, that the child died as the result of a crime.” We are creating a leave of 52 weeks. Every employee is entitled to this, it goes on, if they are “a parent of a child who has disappeared and it is probable, considering the circumstances, that the child disappeared as the result of a crime.”

This is a situation of a crime, which is a justice issue. We on this committee—on division, probably—have agreed to a great many sections that we cannot say we have in-depth information and witness testimony available to us on, which is why I think this amendment is infinitely reasonable. We spent just as much time, I think, on those types of sections as we have on this 12-week leave. It's nothing comparable to what's being suggested in these two sections for parents who are suffering a type of bereavement connected to a crime.

Again, I think we're well within the balance of what the committee can consider, because it's been put into the BIA by the government. Because the government put it into the BIA, it is fully within the rights of this committee to amend the BIA as we see fit after having heard testimony and considering subject matter that we deem necessary and valid to our interpretation of what should go into this and what should be excluded from it.

All the amendments proposed by the opposition have been turned down, some of them for good reasons, and some of them for bad reasons, and I accept those results, on division, of course. But in here, we're creating leave for other situations. I don't think it's a good argument to say that we should let another committee do the work or that this should be studied somewhere else because they have more fulsome information or a more complete set of witnesses for them to consider a 12-week leave when we are creating a 104-week leave in one situation, a 52-week leave in another, 17 weeks here and 37 weeks there. We are creating leaves already, as it is. Concerning the full impact of a 12-week leave, if we need more time to consider it, take the time. We can pass a unanimous motion. We can delay consideration of returning the BIA to the House for a day or two, and we could still have it there by Thursday and let your Department of Justice study this further or we could study this some more tomorrow and have officials return for another two hours.

The committee is master of its own domain, to use an old Seinfeld line. We could totally consider this some more. Take another day. I don't see us having to vote on this immediately, and having you all vote against it and us vote for it. As a solution, we could help parents here, parents going through bereavement, having lost a child, not because of crime but just because life happens. I really think we're doing a disservice to those people who will find themselves in this situation. You mention that you know some of the people who have gone through things like this. This will be beneficial to them.

November 20th, 2018 / 5:30 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you, Mr. Chair.

I'm pretty disappointed, too. We tried to accommodate the government to come back to this issue. Obviously, they were struck by the compelling reasons why this amendment should be adopted, which are in the scope of the BIA, so completely in order. Instead, we get to the end and we're told, “No, we're not going to be considering the amendment.” This is after dozens and dozens of opposition amendments have been turned down by this government. This is after the bill was flagged as being deeply flawed, yet the government just bulldozed through the amendments, refusing any amendment, and bulldozed through each clause.

We end up with a badly flawed bill, badly flawed, one that would be subject to legal challenge, because the government mechanism from the Prime Minister's office on down didn't allow for members to consider appropriate amendments, amendments that would have improved the legislation.

Now we have before us an amendment that is in the scope and that would definitely help people. This committee has the ability to adopt it and, in a very real way, provide some support for parents of a child who has died. There is nothing more tragic than a parent having to deal with the loss of a child. I know friends who have had to deal with it, and it is the most profound sadness and tragedy. We have an ability to provide some supports because of the huge gaping holes in the current legislation, which doesn't allow for bereavement leave when a child dies.

Yes, there are a few cases in which you could get three days of paid leave—as if, in any way, that compensates for the loss of a child or allows a parent to go through the intense grieving, the intense arrangements that have to be made. They're dealing with so many things at once, and the government says that three days is enough. They say that in some cases, with maternity leave benefits, it will apply. Yes, in some cases it will, but in most cases it won't. If it's a woman who has come through maternity leave and her child dies, after four and a half months it does not apply. After five and a half months, six and a half months, one year, two years, three years, four years—there is absolutely no application. For a father, for a non-birth mother, there is no application at all. One might say that if your reaction is profound enough, if you suffer severe depression and you have to take medical leave, it applies, but that's not what we're considering today.

We're not considering the “some exceptions”. We're considering the fact that this is a gaping hole in the legislation, and we have the power now around this table to fix it. We have the power, the ability. We have an amendment that is already here, obviously seriously considered by the government members, because they asked us for a break and they asked us to come back to consider it at the end. I don't think any member of the opposition thought that the consideration at the end would lead to the same casting aside of the amendment that we've seen with all the other opposition amendments. It's a question of how we approach governance. It's a question of how we deal with helping people. Right now this committee has the opportunity to fix that flaw in the legislation and provide for parental leave in the most tragic of circumstances, when a parent loses a child.

I hope government members will vote for this amendment, because it means helping parents at a time that is most tragic and most critical for them. Talking points simply won't address this situation. Saying that, yes, there are a certain number of cases in which maybe somebody can access this type of benefit or that type of benefit does not provide support in most cases. We've heard testimony to that effect. Let's get on with it, and let's adopt this amendment.

It's not as if the opposition has been asking too much. We've put forward dozens of amendments. This is the only amendment that the government would have said yes to—the only one. It's not as if the opposition has weighed in and tried to usurp government power. In fact, it's quite the contrary. I think the opposition amendments, the dozens we've offered, have tried to fix the evident and obvious flaws in this bill that we heard from repeated testimony in front of this committee.

At this point, after ramming through this legislation, after this bulldozer impact, the government has an ability to do one good thing. I think that's all we are asking for: that government members do one good thing today.

November 20th, 2018 / 5:25 p.m.
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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Thanks, Peter.

Obviously you had time to consider this, because that's why you asked to suspend the meeting and then consider it some. I can only assume that the department gave advice on what it thought was reasonable and then you checked in with your colleagues at some point. What you're saying now is that you should have just voted against it when the issue came up when there were more officials here earlier in the day. That's basically what I heard.

Mr. Sorbara, you said that committees are masters of their own domain. We're the masters of our own domain and we can amend the BIA right now. If you'd like to offer a subamendment or another member would like to, if there is concern over this difference between 17 weeks and 12 weeks, we can literally do that right now. If we got a commitment from you that you'd then say yes to the 17 weeks, we could raise it higher just to make sure there's no difference between the two.

I'd like the officials to explain that to us. Would there actually be a difference between the two? You could get a legal opinion from the Department of Justice so that we could then consider it, but to do that at this committee, then, we would have to unanimously approve a delay, like Mr. Julian had asked for earlier today, for the further consideration of clause 470—specific to this one clause—to give ourselves another day so that Department of Justice officials could give us an opinion on whether the 12 weeks would actually interfere with the 17 weeks.

The 17-week maternity benefit, as I talked about with the officials, doesn't apply to fathers. In a situation like mine, I would have gotten no leave, and that just seems patently unfair. For parents who lose a child, the father is just as affected as the mother, but in this scenario what we have before us is that the mother will be covered for 17 weeks, and if the child passes away a day after those 17 weeks, she will not be eligible for any other leave except for the five days—three paid and two unpaid.

What we're proposing to add is 12 weeks. Now, again, if there's a problem with the 12 weeks, we can change it to 17 weeks, or you can go and pass a unanimous motion to delay consideration of clause 470 until tomorrow or another day this week to give the Department of Justice officials time to write up an opinion on whether this would conflict with the labour code and moms would then lose their benefit access to the 17 weeks in such scenarios.

I actually think that's not true. That is very likely untrue. I cannot see a judge ruling like that. I cannot see anybody seeing the facts before them and saying, “No, you should lose access to it” in a particular case. I think it's a disingenuous argument to have delayed it until now and to now say, “this is the problem we have” and to quibble over the 12 weeks.

If that is the issue, then offer a subamendment. Show some goodwill here. We've offered an amendment. Amend it to 17 weeks and we can both agree that we've passed at least one opposition motion today, which hopefully will never benefit anyone in this room—heaven forbid. No one in this room should benefit from it. Hopefully, it will benefit somebody else out there like the people I met last week, the moms and dads who have lost children, and like the ones that Mr. Richards is trying to help with motion 110 at HUMA. That committee can do its work separately from what we're doing.

We can amend the BIA today and report it back to the House of Commons with an amendment that will help fathers and will help parents. That's all it's about.

November 20th, 2018 / 4:45 p.m.
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Director General, International Assistance Policy, Department of Foreign Affairs, Trade and Development

Deirdre Kent

If I could just underline, perhaps, in Bill C-86, under clause 658, it does explicitly state that “a summary of Canada's activities under the Bretton Woods and Related Agreements Act that have contributed to carrying out of the purpose of this Act” would be reported.

As Ms. Pang said, the intent is to retain and increase the transparency of Canada's reporting on international assistance and have greater clarity. I don't think you would be losing the detail, but it will be subject to consultations on what this new report would look like, building on what we have currently.

November 20th, 2018 / 1:50 p.m.
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Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Thank you, Mr. Chair.

Good afternoon, hon. colleagues.

I would like to specify right off the bat that my intervention will contain a question for the officials. Another question was for the government representative, but I believe she'll be leaving. If no parliamentary secretary is here, a Liberal elected official could perhaps answer them.

First of all, I'd like to provide a little context to members from outside Quebec. Thanks to visionaries like the late Lise Payette, who was a minister when René Lévesque was premier, Quebec has the best consumer protection framework in North America. The legislation is more specific than elsewhere. Because of our civil law tradition, we are used to prescribing and codifying everything. Above all, remedies are simple and free of charge for consumers. When important cases have to be dealt with by the courts, the Office de la protection du consommateur takes care of them on behalf of the aggrieved consumers.

The banks have never liked this Quebec difference. They argued for federal exclusivity to assert that they were above our laws. They argued for federal paramountcy in order to sweep away Quebec law. However, after losing their case before the Supreme Court in 2014, they came here to complain. This resulted in the Bill C-29, two years ago. The government affirmed the federal paramountcy of consumer protection for banks, but did not impose any real obligations on them. There was a huge outcry in Quebec. The government has backed down, which brings us today to Bill C-86, which is much more comprehensive than the bill introduced two years ago.

In contrast to Bill C-29 two years ago, Bill C-86 does not affirm federal paramountcy. The government's intention is clearly not to ignore the Civil Code of Quebec. Later, I would like to ask a question, both to the officials and to the parliamentary secretary, about the intent of the legislation and what is written in it. The intention is not to ignore the Civil Code of Quebec, the Consumer Protection Act, which follows from it, or the Office de la protection du consommateur, which applies the law and defends ordinary people.

Bill C-86 is indeed better designed than Bill C-29. While it imposes real obligations on banks, it has a major gap in terms of remedies. The only free recourse, the bank ombudsman, is neither really neutral nor decision-making. If the bank does not follow the recommendations of its ombudsman, what other recourse do consumers have? They may apply to the Federal Court, alone and at their own expense. If the case goes to the Supreme Court, it can cost up to $1 million. No one will go this far, alone in front of the bank's army of lawyers, to contest $50 in hidden fees. Expensive remedies like these are very ill-suited to an area such as consumer protection, where they are often small sums.

If the legislation specifies that Quebec law continues to apply, as the amendment suggests, consumers won't lose anything. If necessary, they may continue to file complaints with the agency if the bank does not comply with our legislation. The office may take the case at its own expense if it has to be brought before the courts.

In this regard, Bill C-86 creates uncertainty. As we know, the banks will continue to argue that they are above Quebec's laws. That's what they've always done. Since the new Bank Act will now contain a whole section on consumer protection, the Supreme Court may well agree with them. Quebeckers would then lose the free remedy they enjoy today and would have to rely on the very costly remedy provided by Bill C-86. It's a step back. I am sure that is not the government's intention. I would therefore like to ask the government's representative what the government's intention is in this bill.

The likely effect of Bill C-86 as drafted is problematic. Officials timidly confirmed a point at the technical briefing three weeks ago. I would like to ask them if Bill C-86 will set aside the Consumer Protection Act, as it relates to banks, or if it will create a vagueness that will lead to a lawsuit that would be settled before the Supreme Court?

That's why we're submitting our amendment. It states that the creation of these new federal obligations does not set aside provincial laws or prohibit enforcement actions, but rather assures us that Quebeckers will not lose out. I would really like to know if, in the case of federal banks, Bill C-86 sets aside the Consumer Protection Act.

Thank you, Mr. Chair.

November 20th, 2018 / 1:35 p.m.
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London North Centre, Lib.

Peter Fragiskatos

Thank you, Chair.

The existing legislation does indeed provide the minister the flexibility to designate a single not-for-profit external complaints body that all banks must use. Legislative changes to the complaints-handling process in banking should be examined in consultation with all stakeholders following an examination of the bank's internal complaints-handling process and the efficiency of external complaints-handling bodies. Finally, Bill C-86 would improve complaints handling in banking through new requirements for banks in the the way they record and report on complaints, and higher standards for external complaints-handling bodies.

I think these points speak to the amendment and why it's not a good way forward. Beyond that, these same comments also apply to NDP-9.

November 20th, 2018 / 1:35 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you, Mr. Chair.

We've heard testimony in front of this committee that raises concerns about having an external complaints body that is optional. Banks can basically choose their own external complaints body. The Canadian Association for Retired Persons and a number of other organizations all testified to the fact that this ambiguity is not helpful toward actually getting consumer complaints properly heard.

NDP-8 and NDP-9 are both endeavouring to designate, under the Canada Not-for-profit Corporations Act, only one external complaints body. It would be up to the minister which organization might be so designated. It doesn't prescribe one organization to the minister, but it does respond to the concerns we've heard from witnesses about making sure that the banks are effectively forced to go through an external complaints body that has some teeth. I think the complaints we're hearing from the public, because of the various organizations, some for-profit, that have been put into place, are about something that allows....

The opportunity of Bill C-86 is to work to designate, but to properly designate, a not-for-profit external complaints body. That would be, of course, for any person who has not had their complaint addressed through their member institution.

November 20th, 2018 / 12:20 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you very much, Mr. Chair.

I just want to read into the record an article from the Toronto Star. The headline is “Why haven't Any Harper-friendly charities been scrutinized”. It's by Edward Keenan. It was published on January 23, 2015. I'll read the following:

It turns out charities in Canada—at least the ones the government doesn’t like—are forbidden from “exercising moral pressure.” As if that isn’t the entire point of charitable enterprises. The absence of the profit motive and of self-interest in those involved in such an organization virtually defines a charity. Without those two things, what’s left is the pressure of morality compelling people to do the right thing.

But that’s illegal for a charity, it turns out.

This news comes to us courtesy of the Canada Revenue Agency, acting on a $13-million mandate from Stephen Harper’s Conservative government to take a close look at charities the government thinks are engaged in “excessive political advocacy.” This crackdown on politicized goodwill most recently busted the do-gooders at Dying with Dignity, who have been wielding contraband moral pressure in the service of their mission to provide information about patient rights, planning for end-of-life-care and the case for physician-assisted suicide. The auditors determined that its sins included “swaying public opinion, promoting an attitude of mind, creating a climate of public opinion” in addition to the already mentioned moral pressure tactics.

Now, to be clear, these charitable advocacy activities are only verboten if they might drive or prevent legislative change. The logic seems to be that tax breaks shouldn’t be used for any activities that might influence legislation. Except, of course, the tens of millions of dollars in tax exemptions and direct subsidies we give to political parties whose direct and immediate goal is to drive or prevent legislative change. Harper has actually been an innovator in this arena, inasmuch as, through “Canada’s Economic Action Plan,” he has abandoned mere tax breaks and the hassles of soliciting donations to spend millions of government dollars directly on advocacy to sway public opinion and drive legislative change.

The difference might be that in the latter cases, it is Stephen Harper himself creating a climate of public opinion and exerting moral pressure to achieve his own electoral and legislative goals. And in the case of charities, it is people who disagree with Harper doing it.

Is that an uncharitable assumption? Well, who has been caught up in the taxman dragnet? Environmental groups, free-expression advocates and the anti-poverty group Oxfam, which was informed that “preventing poverty” was not an allowable goal for a charity group.

Who has not been subject to an audit, at least not yet, that we know of? Well, conservative think tanks like the C.D. Howe Institute and the Fraser Institute, which regularly write policy papers directly advocating legislative change.

Or there's Focus on the Family....

Of course, believing that to be so doesn’t just put me on the wrong side of Canada Revenue Agency’s interpretation of the charity laws, it puts me on the wrong side of this government’s entire approach to leadership. Harper’s government has hunted down and exiled information and arguments that might feed good public discussion and lead to intelligent legislation at every turn—from disembowelling the census through shutting down hundreds of research facilities to a justice minister saying bluntly, “We don’t govern on the basis of statistics, we govern on the basis of what we hear from the public...”.

Harper and his ministers clearly want to hear from a public that is untroubled by research, untainted by statistics and, now, sheltered from the advocacy of pesky charities. The better to shape, it seems, a government that is free from evidence, reason and the pressures of morality.

I think that is the strongest contradiction to what Mr. Poilievre has just put forward, namely, that somehow Revenue Canada would not be penalizing or targeting particular charities and thus we do not need to make the changes that are inadequately and vaguely put into Bill C-86.

I cannot support his amendment.

November 20th, 2018 / noon
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Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Thank you, Mr. Chair.

Thank you, Ms. Malcolmson, for bringing this amendment forward.

On this amendment, in thinking about it, in the legislation itself, currently in those jurisdictions that would be covered by the legislation—the federally regulated industries that would be covered and those employees who would be covered by this act—they would be able to go to a pay equity commissioner who has the power to administer and enforce the act, to also assist those persons in ensuring that they understand their rights and obligations under the act and, most importantly I would say, to facilitate the resolution of such disputes. I think that is what is important under the provision here in the pay equity legislation that's contained in Bill C-86.

I understand your amendment, but the reason that I would disagree with the intent of the amendment is that with the legislation we get the umbrella of pay equity being implemented, and under the pay equity umbrella you have certain mechanisms at work that employees can bring about if there's a dispute, with the establishment of a pay equity commissioner, which is established under the legislation.

With that, I will not be supporting the amendment. The Canadian Human Rights Act is obviously very important. The Canadian Human Rights Commission is important as such, but at the same time, we have a pay equity act, we have the mechanisms under the pay equity act contained therein, and those mechanisms will allow employees to bring disputes to that and facilitate a resolution to those disputes.

November 20th, 2018 / 11:45 a.m.
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NDP

Sheila Malcolmson NDP Nanaimo—Ladysmith, BC

Thank you, Chair.

This is an amendment proposed by the Equal Pay Coalition. It represents 44 different associations, businesses, professional women, unionized women, non-union women and community groups across the province of Ontario.

Ontario has had pay equity legislation for a long time. My late aunt Kim Malcolmson was an early worker in the Ontario Pay Equity Commission. Honestly, when I was in high school, she was my feminist aunt. I found her a bit radical at the time. I was so honoured that she was with me when I was sworn in as a member of Parliament. I gave her shout-outs throughout a lot of our pay equity debates. She was so proud that I was the voice that the NDP chose to advance our first opposition day motion. We were so glad to have had the government's support on that.

She died just about three months ago, just a couple of days after Patrick Brown stepped down. Actually, as a long-time CCF supporter and New Democrat, she left on a high note.

That said, the Ontario experience is very important in this work. I know that you heard from Fay Faraday and Jan Borowy who have extensive experience. They flagged that there were some fundamental pieces that needed to change in this legislation. They said in their testimony—and we've already lost this vote, but I'll say it again—that making fundamental human rights subject to the diverse needs of employers is non-negotiable. However, it remains because I lost the vote on that amendment.

Here is another one of their pieces of advice. This is in paragraph 103 of their submission. Their proposal is that deleting lines 2 to 5 on page 431 of Bill C-86 is the remedy. The rationale is that, in their own words, “Women should not be blocked from taking broad claims of systemic gender discrimination, inclusive of equal value claims, to the CHRA”, the Canadian Human Rights Act. They want this clause of the bill to be deleted. They say that women should be able to rely on section 7 and section 10 of the Canadian Human Rights Act instead when making equal pay for equal value claims.

I'll take you back to their opening testimony to committee. They said:

...there are a number of provisions you've included in the legislation that have already been found to be unconstitutional.

...the legislation actually gives less protection in some areas than the Canadian Human Rights Act currently does. For example, it has less protection in the compensation for part-time and temporary workers than currently exists....

Also the pay equity act does not close all the different gaps in compensation that are discriminatory.

They also said:

You've also included provisions that are unconstitutional and that the Supreme Court just struck down in May of this year, dealing with blocking retroactive pay for gaps that have been identified.

Mr. Chair, I propose our amendment, NDP-33, which is that Bill C-86, in clause 416, be amended by deleting lines 2 to 5 on page 431. This is the advice of the Equal Pay Coalition.

November 20th, 2018 / 9:40 a.m.
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Liberal

The Chair Liberal Judy Sgro

Thank you very much.

Before we suspend for the next portion of the meeting, you have a small budget request in front of you for the video conferencing that we've been doing on the subject matter of Bill C-86.

(Motion agreed to)

Thank you.

I'll suspend for a few moments while we set up for a video conference for the next part of the meeting.

Thank you to all our departmental officials for being here.

November 20th, 2018 / 9:10 a.m.
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Liberal

The Chair Liberal Wayne Easter

Just before we turn to Bill C-86, I have a suggestion for members to think about on the pre-budget consultations. We need to have that report tabled before we adjourn for Christmas. It looks like the library may have the report to us in draft form on November 23, which is a Friday, or at the latest November 26, which is a Monday. We won't deal with this in a motion, at the moment, but I would suggest to members that they think about having their recommendations in to the clerk by noon on November 29. It would give us the weekend to go through all of the recommendations.

That's just a suggestion for now. We'll deal with it later. I don't want to take that time. People can think about that in the background, because usually a lot of recommendations come forward from all members on the pre-budget consultations.

In order to start on Bill C-86 and the agreement we made earlier by motion, pursuant to Standing Order 75(1), consideration of clause 1, the short title, is postponed.

(On clause 416)

This clause starts the pay equity section.

To deal with pay equity, can officials come to the table in case there are questions from members? The officials, once they're all here, will be from ESDC, Treasury Board Secretariat and PSPC.

On clause 416, we'll start with amendment NDP-13. I would note that if NDP-13 is adopted, NDP-14 and NDP-15 cannot be moved due to a conflict of lines.

November 20th, 2018 / 8:50 a.m.
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Liberal

The Chair Liberal Wayne Easter

We'll come to order.

We'll be dealing with the clause-by-clause on Bill C-86. I understand Mr. Kmiec has a motion he wants to deal with first, and Mr. Julian has a proposal that will require unanimous consent.

We'll go to Mr. Kmiec.

November 8th, 2018 / noon
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Edmonton Centre, Lib.

Randy Boissonnault

The motion we have before us is about the supplementary estimates (A). We would therefore hear him speak about that, and not the Budget Implementation Act, 2018, No. 2

November 8th, 2018 / 10:10 a.m.
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Liberal

The Chair Liberal Wayne Easter

We'll have to leave it there.

Before we go to the five-minute rounds, starting with Mr. Poilievre, members have a budget before them, which is to do a study on Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

The amount of money requested, basically for witnesses to attend the hearings that we've already pretty near completed, is $30,100.

Do I have a motion to that effect?

Mr. Julian.

November 8th, 2018 / 9:25 a.m.
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Professor Erin Hannah Associate Professor and Chair, King's University College at the University of Western Ontario, As an Individual

Thank you very much to the committee for inviting me to address you today.

I am an associate professor and chair of the department of political science at King's University College at the University of Western Ontario.

My research centres on international political economy, trade, development and global governance. Recently I have been doing a lot of work on the global gender and trade agenda. I have two collaborative projects with researchers from the U.K., through which we're exploring initiatives that are aimed at achieving gender equality and women's economic empowerment. We're trying to identify best practices and develop policy recommendations on how international organizations in countries like Canada can best pursue gender-sensitive and socially progressive policies.

In this vein I'd like to focus my comments today to the committee on the gender dimensions of Bill C-86, and particularly as they're relevant to international trade.

I'll make four arguments to which I'll return one at a time.

First, Canada is a leader on the gender and trade agenda and many elements of the bill—the gender-based accounting, the pay equity act, and the establishment of a department for women and gender equality—are reflective of Canada's progressive and gender-sensitive approach to trade.

Second, at the same time I'd like to strike both a congratulatory tone and also a cautionary tone with respect to the bill. While these elements can be characterized as auspicious I think we're at risk of over-promising and under-delivering on the trade and gender agenda specifically.

Third, a pay equity act is meaningless for many if trade liberalization is pushing women into increasingly low paid and precarious work.

Fourth, from a budgetary perspective, using trade as a lever for gender equality and women's economic empowerment will require more ambitious commitments on capacity-building and knowledge transfer both in Canada and abroad.

Canada's gender-sensitive trade policy is aimed at supporting women's economic empowerment, it's aimed at closing gaps in welfare distribution, and it's aimed at minimizing the adverse impact of trade liberalization on vulnerable women.

There are multiple such initiatives under way that we can discuss in the question period, but it's fair to say that Canada is at the very forefront of this agenda. In the February budget, as you well know, Canada committed to subjecting its free trade agreements to gender-based analysis plus, or GBA+, an assessment that takes into account gender and other intersectional identity characteristics.

This is very important because, as we know, the impacts of trade liberalization are gendered, especially in terms of employment and wages, but also in terms of job segregation and working conditions, in terms of consumption, and on the provisioning of public services. This also has to include a consideration of how these things have the potential to increase unpaid labour in the household.

Although we know this about the gendered nature of trade liberalization, it's only recently been acknowledged that we need to adopt an evidence-based approach to generating sex-disaggregated data and reliable methodological tools for measuring the gender impact of existing and proposed trade deals.

I'll say again that I think the risks of over-promising and under-delivering on this agenda are quite real.

We're truly at the cusp of establishing best practice in the field. But conducting rigorous GBA+ analysis is best described as ad hoc and aspirational at this time. It's never been applied to a free trade agreement before. That means that this is a really good opportunity for us, and while Canada is using GBA+ to conduct an ex ante assessment of its FTA with Mercosur, most experts, including the chief economist of Canada, acknowledge that we lack reliable and sufficiently granular data to fully assess the impact of proposed trade deals.

This means that in the absence of a well-established methodology in sex-disaggregated data, we're relying on anecdotal and voluntary reporting, mainly from businesses, but also from academics and non-governmental organizations, including women's rights organizations.

The government's commitments to fund evidence-based policy on gender equality are absolutely crucial, so this is the celebratory tone. That $6.7 million over five years to StatsCan to fund a centre for diversity inclusion statistics is absolutely essential. That $5 million per year to the department of women and gender equality is absolutely crucial. And $1.5 million over five years to fund coordination among the departments of Finance, women and gender equality, and StatsCan is essential.

The priority of the department of women and gender equality and its new minister needs to be better coordination between all of these agencies.

And further, if we're to make good on our claims about intersectionality in GBA+, then we need data on the impacts of trade agreements on other vulnerable groups in Canada, including indigenous populations.

It's also notable that we've only committed to conducting GBA+ on new trade agreements. This tells us nothing about the gendered impacts of the many trade agreements to which we already belong, many of which are named in this bill.

The pay equity act and the establishment of a department for women and gender equality are among the most exciting, progressive and important dimensions of the bill, and considered in tandem with the gender budgeting act, they have the potential to greatly improve the lives of many women. However, there's a lot at stake if we fail to get the GBA+ right in the field of trade, and this has direct implications for the pay equity act.

I said before that pay equity will be meaningless if, by the same token, we're concluding trade deals that push women into jobs that are precarious and low pay and/or shift the burden of care work more squarely onto their shoulders. Similarly, Canada's approach to negotiating investor protection in deals like CPTPP and CETA, for example, may be considered socially regressive because of the dangers associated with regulatory chill. We need to ensure that investor protections do not curtail government's duties to protect women's rights or work at cross-purposes with other elements of our gender equality agenda.

We could take a minimalist approach. We could take a “do no harm" approach. A minimalist approach is to conduct good GBA+ to simply ensure that new trade agreements do no harm, that they do not increase gender-based or other forms of inequality. This would mean conducting ex ante GBA+ using sex-disaggregated data along four dimensions in terms of employment and wages, consumption, access to public services and effects on entrepreneurship.

It's worth noting that most gender-based assessment of free trade agreements focus only on the first category—employment and wages. I think Canada can do a lot better, and focus on the impacts on those other three dimensions as well.

A maximalist approach would have us using trade as a lever for gender equality. This a circumstance where we could conduct both ex ante and ex post assessments of free trade agreements along those four dimensions. We would look at how proposed free trade agreements would impact women and other vulnerable groups, and then we would take stock of how existing free trade agreements have been affecting women and other vulnerable groups.

It would involve introducing measures to mitigate the adverse gendered impact of trade liberalization. This is where the buck stops in the bill. We've committed to conducting assessments of the impacts of free trade agreements, but we're saying nothing about mitigating the adverse effects of trade liberalization on women and other vulnerable communities.

We need a proactive approach, an approach that would have us working with our trade partners, and finding ways to use trade in a meaningful way as a lever for gender equality and creating new opportunities, not only for women entrepreneurs but for other women who are engaged in the Canadian economy.

From a budgetary perspective, Canada would be working at home and abroad to engage in capacity-building and knowledge transfer to reduce the barriers to women's economic empowerment and to reduce their precarity.

To conclude, I would say that we're saying all of the right words, and these words are reflected in Bill C-86. We have promised to submit federal budget items to gender and diversity impact assessment. Given that trade is a social justice issue and that trade policies affect women and other vulnerable groups differently and profoundly, this is a welcome move.

If we are to deliver on these words, however, then we have to have reliable trade-related, sex-disaggregated data. We need to take concrete measures minimizing the adverse impacts of trade on women and other vulnerable groups, and we need to identify and fund pathways for using trade as a lever, both for sustainability and gender equality.

I think that successfully delivering on this agenda could really improve the lived experiences of women in Canada and abroad.

November 8th, 2018 / 9:15 a.m.
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Phil Benson Lobbyist, Teamsters Canada

Good morning. Thank you for the invitation to appear before you on Bill C-86.

My name is Phil Benson, lobbyist, Teamsters Canada. With me is Stéphane Lacoste, general counsel, Teamsters Canada.

Teamsters Canada is the largest private sector union representing workers in air, rail, road, bus, couriers and more, in the federal jurisdiction.

I will be briefly addressing the proposed amendments to part III of the Canada Labour Code and Mr. Lacoste will discuss the pay equity act.

Teamsters Canada supports the Canadian Labour Congress presentation and our written submission will follow. The proposed amendments to the Canada Labour Code were a long time coming and we congratulate the government on moving forward. It is a step in the right direction.

The most important change for Teamsters Canada is dealing with contract flipping. The new section 189 will reduce the ability of companies presenting low bids on federal contracts, based on reducing workers' benefits and entitlements under the code, rather than bringing their managerial expertise to improve efficiencies. The proposed changes will not fully address the problems faced by unionized workers at airports, where contract flipping affects bargaining rights, compensation and terms and conditions of employment. Teamsters Canada was very pleased when Minister Hajdu announced the government will move forward with regulations, under part I of the code, to address this problem. Teamsters Canada will participate in all consultations on the regulations and we encourage the government to move quickly in bringing them forward.

Misclassification of employees by employers removes workers from the protection of the code and also creates an uneven playing field for companies. The prohibition and reverse onus on employers provided by proposed section 167.1 will enhance existing legislation jurisprudence. This is an issue especially important in trucking and Teamsters Canada welcomes the change.

Proposed section 173.01 provides some scheduling protection for non-union workers. It is not applicable to unionized workers and even if it were, it would not be applicable to unionized workers falling under Transport Canada power to regulate hours of service in air, rail and road. Fatigue is both a public and a health and safety issue for workers. The Transportation Safety Board placed fatigue on the transportation watch-list.

Teamsters Canada demands that all workers in federal jurisdiction enjoy the full protection of the Canada Labour Code and that the Department of Labour fulfill its mandate to protect transportation workers. Transportation workers work long hours and a major irritant is when a workday is extended, forcing them to work instead of attending family responsibilities, which is a common practice for couriers. Notwithstanding the limitations of proposed section 174.1, the right to refuse overtime to carry out family responsibility is progressive and shows the government understands the pressures placed on workers. Further evidence of this is proposed section 181.1, on page 452 of the bill, dealing with breaks for medical reasons and nursing.

November 8th, 2018 / 9:05 a.m.
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Frank Allen Executive Director, FAIR Canada

Thank you, Mr. Chairman.

Good morning to the members of the committee. FAIR Canada is a national charitable organization dedicated to putting financial consumers first. As a voice for financial consumers, FAIR Canada is committed to advocating for stronger consumer protections and advancing investors' and financial consumers' rights.

We are here today to speak briefly to some of the provisions in division 10 of Bill C-86, the proposed financial consumer protection framework.

As the members of this committee are well aware, banks hold a trusted position among Canadians because of the role they play in the savings, mortgages, loans and investments of all Canadians. Our banks are in a unique position to have a significant impact on the long-term financial security of most Canadians.

Today, financial products are complex, whether they're mortgages, investments or even deposits, such as market-linked guaranteed investment certificates. This means that people go to the bank, not just to conduct transactions, but with the expectation that they will be provided with advice that helps them meet their financial goals and the banks market themselves and their services in this manner.

Trust in banks is vital. It is important.

As you're aware, in 2017 the CBC Go Public series on bank employees and the FCAC's domestic bank sales practices report, which was published earlier this spring, found numerous risks of “mis-selling” by banks of products and services to customers.

The FCAC report showed that the retail banking culture is predominantly focused on selling products and services and that consumers' interests were made secondary to those of the bank and their employees and contractors. The report demonstrated the need for strengthened consumer protection for Canadians and their bank dealings.

In our June 9, 2017, letter to this committee, FAIR Canada urged the adoption of a best interest standard for those engaged in providing financial advice to banking clients.

Bill C-86, at section 627.06, introduces a requirement that banks establish and implement policies and procedures to ensure that products and services are “appropriate for the person having regard to their circumstances, including their financial needs”.

Among our concerns about this standard is that strict adherence to the proposed consumer protection provision set out in Bill C-86, on consent, no undue pressure, coercion and disclosure, will be seen as being sufficient to meet Bill C-86's appropriate requirement, while the product or service being sold may still not be in the consumer's best interest, given its cost, net return or other factors.

A product or service may be appropriate, but it may still be suboptimal for the bank's customer. We are concerned that this appropriate standard will not advance consumer protection, beyond that found by the CBC Go Public series and the FCAC report.

As you may be aware, for more than six years, the security sector has been engaged in trying to strengthen the standard owed to clients beyond that of suitability, given that the suitability standard has not worked in the interests of consumers and clients of securities dealers.

We do not want to spend several years determining what is appropriate for clients of banks, when a clear standard of best interests could be introduced and work for the benefit of bank consumers.

A second area of acute concern to FAIR Canada is the existing consumer dispute resolution system for banking complaints.

Simply put, the consumer dispute resolution system is flawed, both the banks' internal dispute complaint handling systems and the external mechanisms. The FCAC report earlier this year found that:

Weaknesses in policies, procedures and systems for handling complaints limit the ability of banks to adequately monitor, identify and report complaints to management, boards and FCAC.

Externally, as you're aware, the Bank Act's regulatory oversight of external complaint bodies permits multiple external complaint bodies and results in one-sided competition. The banks are able to choose their referee of choice in order to handle customer complaints outside of the bank.

In light of the above, the Bill C-86 updating of the consumer-related provisions in the Bank Act is a critical first step in strengthening consumer protection for Canadians in dealing with their banks. We are optimistic that the government will continue to look at this area in light of the evidence produced by the CBC Go Public series and the content of the FCAC domestic retail sales practices report and that further reforms will be considered in the future.

We do want to acknowledge a number of provisions in the existing—

November 8th, 2018 / 9 a.m.
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Liberal

The Chair Liberal Judy Sgro

Mr. Jeneroux has asked that we go in public, rather than in camera, for further discussion on Bill C-86. It's a recorded vote.

(Motion negatived: nays 5; yeas 4)

Thank you, Mr. Jeneroux.

Again, to our folks from British Columbia, thanks for being up so early this morning, and have a wonderful day.

We will suspend for a few moments for our witnesses to leave.

[Proceedings continue in camera]

November 8th, 2018 / 8:55 a.m.
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Adam Brown Chair, Canadian Alliance of Student Associations

Good morning, Mr. Chair, honourable committee members and fellow witnesses.

I would like to begin by acknowledging that we have the privilege today of gathering on the traditional and unceded territory of the Algonquin and Anishinaabe people.

My name is Adam Brown. I am the chair of the Canadian Alliance of Student Associations, or CASA. I am also the vice-president external of the University of Alberta Students' Union, and a fourth-year student completing a business degree majoring in business economics and law.

CASA is a non-partisan, not-for-profit organization that represents roughly 350,000 students at colleges, universities and polytechnics across the country. Through a formal partnership with the Union étudiante du Québec, we are a trusted national student voice. We advocate for a post-secondary system that is accessible, affordable, innovative and of the highest quality.

Today I will be speaking to two important aspects of this bill.

The first relates to the Copyright Act and its impact on the quality of education here in Canada. The second relates to education as a missing component of the government's poverty reduction strategy.

These are two key elements that will significantly impact the quality and accessibility of student post-secondary experiences.

Bill C-86, part 4, amends part of the Copyright Act relating to the Copyright Board by improving the timelines and clarity of its proceedings and decision-making process. Students are pleased to see this as CASA highlighted it as an issue in its Copyright Act review submission to the Standing Committee on Industry, Science and Technology earlier this year.

In fact, students are directly impacted by the decisions of the Copyright Board, specifically when it comes to fees associated with copyrighted materials. Post-secondary institutions will either pass the costs of copyrighted works onto students through increasing ancillary fees, or they will pay out of their operating budgets, which will affect the quality of the education being given.

Despite the fact that the Copyright Board's decisions directly impact the accessibility and affordability of education, students are often left in the dark about the fees that are levied on them.

Tuition is only one piece of post-secondary cost that students are expected to cover, and students will continue to struggle with unpredictable education costs if these high ancillary fees, such as those coming from copyright costs or the high costs of textbooks, remain.

While CASA is pleased to see reforms to the Copyright Board, the question is still up in the air as to whether the existing statutory protection of education as a component of fair dealing will remain following the Copyright Act review.

Fair dealing for the purposes of education specifically helps Canada offer an accessible and high-quality post-secondary education system by not subjecting information and knowledge to unreasonable restrictions.

The way it accomplishes this is twofold. First, fair dealing for education purposes ensures that students can access a variety of quality learning materials with varying perspectives throughout their studies.

For example, I've taken a few classes where professors use a variety of text, audio and visual materials from different sources that do enhance the quality from diverse perspectives.

Second, fair dealing for educational purposes keeps in mind the financial realities of students. As you're likely aware, students already face significant costs to their education. The average undergraduate student with loans in Canada graduates with approximately $27,000 in student debt. Without fair dealing, students would lose because they would face overly burdensome processes and fees to access integral education materials. Faculty would lose as they're not able to have the same freedom to provide their students with affordable and diverse learning materials. Industries would lose because the incoming talent would lack exposure to a diversity of ideas throughout their learning. Finally, Canadian post-secondary institutions would lose to their foreign competitors who are making larger strides with respect to providing their students with affordable and accessible education materials.

Content creators are important. As a matter of fact, many of us students will go on to become those content creators. However, unnecessarily restricting students' access to learning materials is not a good way to protect those materials. CASA welcomes Copyright Board reforms but calls upon all members of Parliament to do what they can to protect education as a component of fair dealing in the Copyright Act.

To move to my second point, we're pleased to see the inclusion of the poverty reduction act in Bill C-86. CASA believes that post-secondary education is an important tool for reducing poverty in Canada.

Earlier this year, we also submitted recommendations to the government's poverty reduction consultation and in this submission, students suggested ways to increase the usage of the Canada learning bond to help families in need save for their children's education. The government currently supports low-income families by providing Canada learning bonds that contribute up to $2,000 to a child's registered education savings plan. While the bond provides much-needed support to aspiring students from financially disadvantaged backgrounds, sadly, only 31% of eligible families access the benefit.

In Ontario, RESP registrations are now linked with online birth registration to ease the process of accessing this Canada learning bond. This is a step in the right direction to making the bond more accessible to families.

CASA strongly encourages the Government of Canada to begin working with the provinces to increase the uptake of the Canada learning bond as well as the number of young Canadians able to access post-secondary education in the future.

Thank you for inviting us to appear before the committee to discuss the concerns of post-secondary students regarding copyright and Canada's poverty reduction strategy, which are addressed in Bill C-86.

Thank you.

November 8th, 2018 / 8:50 a.m.
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Derrick Hynes President and Chief Executive Officer, FETCO Inc.

Thank you, Chair.

Good morning, committee members. It's always a thrill for me to be here and appear in front of any committee. I studied politics many years ago and am a non-partisan political junkie. I spend way too much time watching CNN and related media.

I am the president and CEO of FETCO. FETCO stands for Federally Regulated Employers - Transportation and Communications. We are all federally related firms in the transportation and communications sectors. We've existed as an organization for over 30 years. We're generally large employers in the federal sector encompassing over 500,000 employees. FETCO members are household names to many of you: Air Canada, Bell, CN, CP, FedEx, UPS, WestJet and Telus, to name just a few.

Today, in my limited time with you, I'm going to spend a couple of minutes on two key issues in this bill: division 14, on the pay equity bill, and division 15, on the Canada Labour Code. I'm not going to comment clause by clause on provisions within the bill. Time today doesn't permit me to do that, nor did the time in terms of reviewing the bill allow me to do that.

I want to talk about four key messages in terms of our messaging to you today. The first is about, and I think this has been discussed at your committee, the use of omnibus budget bills. Here we are going to be equal opportunity criticizers. This is an issue on which we were critical of the previous government, and we will raise it again today.

This bill is nearly 900 pages long, and it includes enormous diversity. To review it in one week and provide any sort of meaningful feedback to you is difficult, so we're looking specifically at two critical issues that affect our members. Both have been the result of consultation efforts the government has undertaken, but at this point, I'd say that this feels a little bit rushed. We've gotten to this point where legislation has been introduced, and we are very quickly going to go through this bill, and let's be real, it's a budget bill, so it's likely to pass with only limited amendment.

The other thing, of course, as I think has been pointed out, is that the modern labour standards piece in this bill related to part III was not specifically referenced in budget 2018, so it is likely inappropriate in this space.

It would have been our preference if both of these bills were stand-alone pieces of legislation. The government has committed a lot of energy to pay equity and to part lll of the code. We've been engaged quite extensively with our counterparts in the labour movement, and it certainly would have been our preference to see these introduced as separate pieces of legislation.

My second point is really about business costs. Our concern with this bill is that there are some indications that due consideration is not being given to business costs. I raise this as a broader issue to the government as a whole.

We've seen a lot of major workplace-related changes over the past three years. I'll give you just some examples, for which there are major cost implications for the employer community: paid personal leave, family responsibility leave, expanded vacation leave, caregiver leave, indigenous practices leave, leave for victims of domestic violence, medical leave, changes to the EI program, accessibility legislation, flexible work arrangements, pay equity, termination compensation, and the elimination of wait periods for certain compensatory benefits. We're now starting to talk about a new statutory holiday. All of these have major cost implications.

On an individual basis, I think it's quite rational to look at them and logically conclude that they are reasonable, but there's a cumulative effect from a number of these changes that is having a real, major effect on the business community. As we're having a national dialogue on issues like business investment, workplace productivity and economic competitiveness, it's tough when we're simultaneously driving up the cost of doing business. To us that seems like a contradiction, and we think it is reasonable that business costs would be factored into any of these discussions.

Specifically, on the bill in front of us today, I have some comments on both the pay equity bill and the changes to the Canada Labour Code. On the pay equity provisions, I want to be very clear, and I hope there is no misunderstanding between us today. Our organization, FETCO, is very supportive of the concept of pay equity, equal pay for work of equal value. We believe that closing the wage gap is of critical importance. It is the right thing to do. It makes business sense.

The concern we've been raising for the two years we've been having this discussion, specific to this bill, is about the methodology. I recognize that the ship has likely sailed, since it is now contained in the bill, but we have been concerned that a proactive approach to pay equity may not be the best approach to root out wage discrimination where it does exist.

The government has clearly committed to it, and our concern, which we have raised repeatedly, is that this may be a costly and potentially overly bureaucratic solution that many not close the wage gap.

I reflect back to the Special Committee on Pay Equity. I presented on behalf of employers at that table. Some representatives from Statistics Canada presented shortly before me, and they indicated some data that I thought was particularly useful. They indicated that we have a wage gap. When they looked at the sectors of Ontario, Quebec and the federal sector, they indicated there is a wage gap in Canada, and I think we all agree that's a problem. They also indicated that the wage gap is narrowing. That's a good thing, but it's not narrowing at a fast enough rate. What is most interesting about the data that StatsCan presented was that the gap in wage rates in the Ontario, the Quebec and the federal models was essentially narrowing at the same rate.

We recognize the current approach we use, the complaints-based model, is not working as effectively as it could be. The question we raised is why we would throw it all out and replace it with something that isn't proving to be any more effective than the current model that we're using. I'm happy to talk specifics about the bill, if you have questions later.

The last thing I'll talk about is the changes to part III of the Canada Labour Code. The fundamental issue that we've had throughout this process, as it relates to part III of the code and the minimum labour standards that exist therein, is that we think the government has largely applied a provincial lens to the federal sector, and they're really not the same. The point we've made is that in some cases we're solving a problem that actually doesn't exist. The government speaks a lot about precarious and vulnerable workers. While we do recognize that issue does exist in the country, it's largely an issue that exists within provincially regulated sectors. In fact, the government's own data indicates this. The government's own data, in its discussion paper leading up to these changes to part III of the code, indicates that the vast majority of jobs in the federal sector are permanent, full-time unionized jobs with full pensions and benefits, and many exist in the context of a mature collective bargaining system.

Bill C-86 introduced a series of changes to the code that are going to raise the standards. The challenge this presents to us, as large employers, is that it will create a couple of key challenges. We think it's going to create conflicts in collective agreements where similar provisions already exist, and what might happen when that conflict emerges; and second, we are worried about the inflationary pressure that elevating labour standards over here for what is a small group of employees may have over here for the bulk of the federal sector.

I'll leave it at that, and I'm happy to take your questions. Thanks you for your time.

November 8th, 2018 / 8:50 a.m.
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Liberal

The Chair Liberal Wayne Easter

Could the committee come to order? The finance committee is continuing its study of Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018, and other measures.

For members' information, the clerk will pass out a budget that relates to this study and paying the expenses of some witnesses who had to come some distance. People can look it over before we have a discussion on it later in the meeting.

I welcome the witnesses here. First up as a witness is Mr. Hynes, president and chief executive officer of FETCO Inc.

Go ahead, Mr. Hynes.

November 8th, 2018 / 8:35 a.m.
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Liberal

Ken Hardie Liberal Fleetwood—Port Kells, BC

Thank you, Madam Chair.

Thank you, everybody, for being here.

My understanding, based on a question I asked at our last session, is that Bill C-86 is relatively narrowly targeted at certain financial provisions in some of the acts that are all bundled up in here. In fact, through other committee processes, the various acts we're talking about really did get a fair bit of scrutiny. We had witnesses both here and at the fisheries committee. That gave a lot of people a lot of time to give input, particularly with respect to some of the discretionary authorities that would flow out of this legislation.

Generally speaking, the government has gone forward on the idea that we can balance the economy and the environment. We can't shut down our trade, but at the same time, we can't allow trade to overrun species at risk. It isn't necessarily a delicate balance that we're talking about; it's about what we can do to promote both in going forward and prospering.

On the fisheries side, we quite often talk about the application of what we call the “precautionary principle”, which means that there are times when we don't have all the science, but we know something is wrong. We have to do something and we have to do it quickly. Based on the commentary I've heard, the misgivings or concerns people have aren't necessarily over what we're trying to accomplish; it's the “how” part.

We've seen examples where some of the orders coming down have been far too broad or far too blunt an instrument, and could have been refined either before they were implemented, or certainly afterwards. I think we need an ongoing process to refine them. We may come in with a very broad order on an interim basis, but the door has to be open to refine it so that we're not causing undue damage to either side of this equation.

The other piece that comes up very often at the fisheries committee is our use and understanding of local knowledge. In the marine industry, local knowledge, particularly on the west coast, would include the properties of an individual ship and the speed at which it is going to emit the least amount of noise. Coming down with a heavy-handed order that says that all ships must go at a particular speed might, in fact, create more difficulties than it's trying to solve.

The other piece has to do with the local knowledge of the people who live there, particularly on the indigenous side.

Mr. Lowry, this is where I wanted to deal with you a little bit on the issue of the Nathan E. Stewart at Bella Bella. People from far away came in and were giving orders to the locals about how to deal with that tugboat that was on the rocks but had not breached. The locals believed firmly that they could have prevented the spill had they been allowed to act, but they were prevented from doing so. The local knowledge was ignored, and as a result, we ended up with a huge catastrophe that has a material impact on their lives.

Mr. Lowry, I know you're not necessarily responsible for the whole suite of things that happened here, but I would like your commentary on the application of local and indigenous knowledge to respond more effectively and efficiently to issues when they come up.

November 8th, 2018 / 8:25 a.m.
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Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Thank you.

Please tell us how Bill C-86 will help improve the work you do at a spill site.

November 8th, 2018 / 8:20 a.m.
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Edmonton Riverbend, CPC

Matt Jeneroux

In your remarks, you also expressed concern with some of the proposed amendments to the Canada Shipping Act.

Do those concerns lead you to call for amendments to Bill C-86 in these areas? Specifically, do you think the provision of interim orders might be amended to provide the parameters that you think are necessary?

November 8th, 2018 / 8:10 a.m.
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Margot Venton Director, Nature Program, Ecojustice Canada

Thank you, Madam Chair.

I thank the committee for inviting me to speak today regarding the amendments to the Canada Shipping Act and the Marine Liability Act proposed in Bill C-86. I'm a lawyer with Ecojustice Canada.

Ecojustice is Canada's largest environmental law organization, supported by approximately 20,000 individual donors throughout the country. With offices on both the Pacific and the Atlantic coasts, Ecojustice is dedicated to ensuring legal protection of Canada's oceans. Through my practice, I largely focus on marine conservation issues. I'll make my short submission on the proposed changes to the Shipping Act.

The proposed amendments reflect our expanding understanding of the environmental impact associated with shipping, including ship-source pollution, physical disturbance and noise pollution.

Significant expansion of already busy port facilities on the west coast is proposed or already under way. Our Shipping Act must be able to respond to increasing threats that will accompany this expansion. Current gaps in the regulatory system must be filled before further expansion occurs.

The Salish Sea, for example, is a nationally significant marine ecosystem, home to a diversity of plant, fish and marine mammal species relied on traditionally by indigenous peoples and more recently by settler communities, and it is also home to Canada's busiest port. The Salish Sea has been degraded and many marine species in the Salish Sea are struggling, including the endangered southern resident killer whale whose population has declined over the summer to just 74 animals. Pollution and disturbance from marine vessels, along with reduced prey availability, are identified as key causes of decline and as barriers to recovery for these whales. Shipping also affects beluga whales in the St. Lawrence and the North Atlantic right whale on the Atlantic coast, each in a slightly different way.

To survive, killer whales need an acoustic environment that allows them to hear the subtle clicks of echolocation and the distinct calls of family members, and ship noise interferes with both of these things. Despite knowing for nearly 20 years that physical and acoustic disturbance from vessels threaten killer whales, little action has been taken to address the threat. This is in part because the Shipping Act does not explicitly allow for the regulation of ocean noise, nor does it clearly enable Transport Canada or DFO to order the kinds of mitigation required to address ocean noise such as speed reductions, route changes and most importantly, noise caps, vessel design and retrofitting. These were the kinds of tools only used to address marine safety issues and not protection of the marine environment. As a result of the legislative gap, limited action has been taken to address physical and acoustic disturbance from vessels and that limited action has been through voluntary initiatives. Unfortunately, this voluntary approach has failed to limit the whales' decline.

Clear and enforced rules work to regulate conduct. As a result of mandatory, enforced vessel slowdowns for marine safety purposes put in place under the Shipping Act on the Atlantic coast to protect endangered North Atlantic right whales, no whales were killed this year by vessel strikes, and we need similarly strong, legally binding rules to protect southern residents and other marine features from ships and ship noise.

The proposed amendments to the Shipping Act fill a gap, providing clear rule-making power for protection of the marine environment and additionally propose interim order provisions that provide a useful tool that allows for nimble response to new and emerging issues, such as shipping noise and other emerging issues and emergencies. It can take years to develop regulation; an interim order allows for quick, targeted action to address a problem while creating space for the development of a more comprehensive and permanent regulation.

Our recommendation would be to extend the period of the interim order to reflect what we understand to be a realistic time to develop regulation, which would be closer to two or three years from the existing one year. Experience shows that progress was made in pollution reduction for both airplane noise and tailpipe emissions for vehicles following the imposition of regulation, and we need to take this same successful approach with the environmental impacts of shipping.

Thank you.

November 8th, 2018 / 8:05 a.m.
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Bruce Burrows President, Chamber of Marine Commerce

Sure, I'd be pleased to.

Thank you.

Good morning, ladies and gentlemen.

Thank you, Madam Chair, clerk and members of this committee for the invitation to speak today.

I'm pleased to see so many of you a short while after our Marine Day on the Hill event on the 16th, during which I hope many of you learned more about the marine mode and what my members are doing for Canada.

I had not anticipated a meeting under today's circumstances. For those who may not know, I am Bruce Burrows, president of the Chamber of Marine Commerce or the CMC. I am joined today by Sarah Douglas, the CMC's senior director of government and stakeholder relations.

Further to my reference to the circumstances behind and purpose of today's discussion, I understand that divisions 22 and 23 of Bill C-86, before you today, seek to amend the Canada Shipping Act and the Marine Liability Act. However, it wasn't until mid-August that Transport Canada was in position to begin a more substantive consultation on these two issues, which are part of the oceans protection plan, and it was a broad discussion at that.

With that consultation closing on October 26, CMC provided specific constructive feedback on improving the CSA and MLA, and I hope you are able to read our submission in detail. You can then understand how concerned we are, in the interest of effective consultation, about there being such a rapid turnaround between the end of the consultation period and the sudden tabling of legislation.

I preface my next point by saying that the CMC has a good relationship with Transport Canada, but then note that the government in its wisdom more broadly has elected to veil important pieces of transport legislation under the cover of an omnibus bill. There's now an accelerated time frame under which these legislative proposals are proceeding. This is inappropriate in our view.

Before turning to my colleague, I'd like to make clear that the marine mode in Canada is the safest and most environmentally friendly means of transportation. Every year more than 230 million metric tonnes of cargo is transported through the Great Lakes-St. Lawrence River waterway. Moving this cargo safely is the top priority for the marine transportation industry, which works to maximize protection of people, property and the environment. Comprehensive regulatory oversight, investments in advanced navigation technology and sound safety practices have produced significant safety achievements, and more investments are being made by industry.

November 8th, 2018 / 8 a.m.
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Liberal

The Chair Liberal Judy Sgro

We won't be doing clause-by-clause. That will be done at the finance committee when they do clause-by-clause on the issue.

Mr. Jeneroux has asked that we make public our 9 to 9:45 a.m. discussion on Bill C-86.

All those in favour? Opposed?

November 8th, 2018 / 8 a.m.
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Liberal

The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)) Liberal Judy Sgro

I call to order this meeting of the Standing Committee on Transport, Infrastructure and Communities. Pursuant to Standing Order 108(2), we are studying the subject matter of clauses 688 to 747, divisions 22 and 23, of Bill C-86.

I want to thank our witnesses for being here so early in the morning.

To our folks in British Columbia especially, we recognize that it's five o'clock in the morning. We really appreciate the fact you're up and are going to share some thoughts with us.

Before we go to our witnesses, Mr. Jeneroux has a point he wanted to raise.

November 7th, 2018 / 5:45 p.m.
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Dr. Michael Geist

Good evening. My name is Michael Geist. I am a law professor at the University of Ottawa, where I hold the Canada research chair in Internet and e-commerce law, and I am a member of the Centre for Law, Technology and Society. I appear today in a personal capacity, representing only my own views.

I'm pleased to have the opportunity to discuss the intellectual property provisions found in Bill C-86. As you know, budget 2018 prioritized a national IP strategy, and while aspects of that strategy involve investment in issues such as IP education, there were several legal and policy commitments that required legislative reform.

Many aspects of Bill C-86's IP provisions, I would argue, are both long overdue and welcome. Since abusive intellectual property rights may inhibit companies from innovating or discourage Canadians from taking advantage of the digital market, crafting rules that address misuse can be as important as providing effective IP protection.

There are several examples of how the bill addresses the issue of IP misuse. For example, misuse of Canada's copyright notice and notice system, which was formalized in 2012 to allow rights holders to forward allegations of copyright infringement to Internet users through their internet service provider, has been an ongoing source of concern. The bill amends the Copyright Act to ensure that settlement demands are excluded from the notice and notice process, thereby restoring the original intent of the system.

Patent changes to address patent trolling provide another important reform, I would argue. The bill seeks to combat patent trolls by creating new minimum requirements for patent demand letters, which should discourage the sending of deceptive letters. The rules also include the right for a recipient of one of those letters to pursue damages or injunctions at the Federal Court.

The bill also includes provisions that expand prior use rights, address standard essential patents and create safeguards for research, with a rule that deals with acts committed for the purpose of experimentation not being an infringement of the patent. In doing so, I think the bill restores a better balance to support innovation within the patent system.

Bill C-86 also includes notable reforms to the Copyright Board, including an important reference to considering the public interest in the decision-making process. That's something that the board would say that it would do. Making it explicit in the legislation, I think, is the right thing to do.

It also rightly does not include an expansion of statutory damages among the extensive reforms. Arguments in favour of expansion were unconvincing and would have usurped the role of the industry committee, which is currently engaged in a detailed review of copyright. I think that issue will still be hotly debated as part of the copyright review, but that committee is the appropriate place for discussion of statutory damages, not within a package of largely administrative and governance reforms to the board.

While this represents the positives in the bill, I think there is still some room for improvement. I want to quickly touch on three recommendations.

First, the implementation of some of the reforms, including the patent reforms that I've just described, is likely to be delayed for years, since they are structured to require regulations to define issues such as the requirements to be contained in a patent demand letter. Officials on a call just last week indicated they already know what they'd like to see included. The long delays undermine the likely success of the government's IP policy and innovation strategy. I see little reason not to include those requirements within this bill, as I don't see any reason for the issue to be left to the regulation-making process.

Second, the notice and notice copyright fix is good, but we can still do better. There should be penalties for sending abusive notices. We know that many Canadians, thousands of Canadians, have unknowingly paid hundreds or even thousands of dollars in these cases, and we need penalties for those who abuse the law in this way. There should be common standards established to make it easier for Internet providers to identify compliant notices.

Third, budget 2018 includes several references to artificial intelligence, AI, one of Canada's most important innovative sectors, yet despite the prioritization of both AI and the IP strategy, it leaves a major AI copyright barrier untouched. Several of the world's leading AI companies, including Canada's Element AI, Microsoft and members of the Business Software Alliance, have pointed to the need for an exception for text and data mining or informational analysis. Without such an exception, Canada trails badly behind competitor jurisdictions such as the United States, Europe and Japan, which have already addressed this issue by allowing for data mining without the risk of copyright liability.

Canada should not wait years to address this commercialization barrier. Given the budget's inclusion of both AI and intellectual property as priority areas, Bill C-86 is an obvious place to fix the problem.

I look forward to your questions.

November 7th, 2018 / 5:40 p.m.
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Magali Picard National Executive Vice-President, Public Service Alliance of Canada

Good evening.

Thank you for the opportunity to appear before you today on behalf of the Public Service Alliance of Canada (PSAC).

My presentation will be about the new pay equity legislation in division 14 of part 4 of Bill C-86.

Overall, PSAC is pleased with the proposed act. For decades, our union has been at the forefront of fighting for women’s right to equal pay for work of equal value.

While we have had successes, the time it took to get results through a complaint-based process often meant that the women who should have received the pay died before they saw a penny.

PSAC believes this act is a good step towards redressing existing pay inequities while at the same time creating a culture where pay equity can flourish and become the norm.

We are also pleased to see the provisions on appointing a pay equity commissioner. However, we caution that she must have sufficient resources to be able to fully implement the act.

But PSAC has two very important concerns to point out.

Let's start with section 2, according to which the purpose of the act is “to achieve pay equity through proactive means by redressing the systemic gender-based discrimination” in compensation. However, this laudable language is undermined by the following phrase: “while taking into account the diverse needs of employers”.

PSAC is concerned that the inclusion of this statement, may give employers significant legal weight to be able to challenge decisions of the commissioner.

They can argue that the needs of the employer are equal to the advancement of pay equity as they are both articulated in the purpose of the act.

Legal scholars and the Supreme Court of Canada have weighed in on the legal significance of the purpose clause in legislation.

We do not believe it was the government's intention to undermine the objectives of the new, proactive law. For this reason, PSAC recommends that the committee delete the following: “while taking into account the diverse needs of employers” from the purpose of the act.

While we recognize that responsibility to achieve pay equity resides with the employer, there are multiple provisions in the act allowing an employer to request flexibility, extensions and exemptions that will support the employer's diverse needs.

Our second concern has to do with section 20, which deals with decision-making on joint employer-employee pay equity committees. This provision requires all employee representatives on a committee to come to a unanimous decision or forfeit the employee-side vote, allowing the employer's decision to prevail.

In practice, this would give non-unionized employees a veto over the preferences of unionized employees, and vice-versa, while also giving bargaining agents vetoes over each other's proposals.

It is conceivable that this system would most significantly disadvantage representatives of female-predominant classes over those who may not have the same interest in having a robust pay equity plan.

Again, PSAC does not believe that this was the intention of the government in an act that is trying to redress systemic gender wage discrimination. PSAC asks the committee to amend section 20 by removing:

A decision of a group counts as a vote only if it is unanimous.

And replacing it with:

A decision of a group counts as a vote if a majority of the group agrees.

The following sentence will also need to be removed from the section:

If the members who represent employees cannot, as a group, reach a unanimous decision on a matter, that group forfeits its right to vote and the vote of the group of members who represents the employer prevails.

We believe these two amendments are essential to the effective implementation of the new law and we urge the committee to amend the bill accordingly.

PSAC looks forward to working with the government on the development of the regulations and assisting in any way we can with the expertise many of our staff and union members have in pay equity in the federal sector.

Ms. Berry and I would be happy to answer any questions you may have.

Thank you.

November 7th, 2018 / 5:35 p.m.
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Corinne McKay Secretary-Treasurer, Nisga'a Nation, NVision Insight Group Inc.

[Witness speaks in Nisga'a]

The English translation of my Nisga'a name means “pearly fin”, and I've said good evening to you all. It's good to see you all.

As Mr. Chairman has stated, my name is Corinne McKay. I am the elected secretary-treasurer of the Nisga'a Nation. We thank you for the opportunity to present to the Standing Committee on Finance.

I would like to start by noting that the Nisga'a Nation was the first indigenous nation in British Columbia to enter into a modern-day treaty, and I have a copy with me.

The Nisga'a treaty was also the first modern treaty to be constitutionally entrenched as self-government. I note, among the contents of Bill C-86, amendments to the Income Tax Act and the Excise Tax Act, the introduction of the pay equity act, changes to the First Nations Land Management Act, and many other changes.

It's always positive to see budget implementation bills that acknowledge and seek to address the needs of indigenous peoples. This builds on the budget 2018 announcement about specific funding for self-governing indigenous governments. This was the first time that the needs of Canada's modern treaty partners were explicitly acknowledged in a federal budget document.

Future budget processes, including budget implementation, should continue to build on these positive developments in two ways.

First, the needs of self-governing indigenous governments should always be taken into account and be specifically addressed in the budget. For example, there should continue to be specific allocations to self-governing indigenous governments of any infrastructure or housing or gap-closing funds, and I note that there was a discussion on housing just prior to our presentation. Housing is a very real need in our communities, and the status of housing in our communities still leaves much to be desired to improve the housing conditions of our people.

The second is that future fiscal policies related to self-governing indigenous governments should be developed collaboratively. The Government of Canada acknowledged the failings of its pre-existing fiscal policies and invited self-governing indigenous governments to participate in the collaborative fiscal policy development process. It is important to note that this process is separate and apart from the government's engagement with the AFN, the Assembly of First Nations. It is engagement directly with self-governing indigenous governments.

In this collaborative process, indigenous government representatives and federal government representatives work closely to develop a shared understanding of the interests of both Canada and the indigenous governments. They build a new fiscal policy from the ground up. This has never been attempted before. It is important to recognize that the collaborative process for developing policy has resulted in a package of fiscal policy documents that, combined with the commitments Canada has made in modern treaties, are more respectful of the circumstances and needs of the indigenous governments than any previous federal fiscal policy.

This work is to be praised and to be emulated. All future fiscal policies should be developed collaboratively.

We thank you for taking the time to hear the support that we have for the collaborative process. We find it's respectful and it builds on the work that has been done, and we see that this is the start of a new dialogue that will improve the lives of our people, and as Canadians, improve the lives of Canadians.

Thank you.

November 7th, 2018 / 5:30 p.m.
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Past President, Intellectual Property Institute of Canada

Grant Lynds

I guess I was just trying to make up time.

IPIC represents the views of our IP professionals in making submissions to government and other bodies. Our activities include a wide breadth of activities in education, continuing professional development and raising IP awareness in the business community. For the past several years, we've even created a voluntary code of conduct for our members in order to belong to our institute.

In the past few days since Bill C-86 was tabled, we’ve had about 160 of our members looking at the provisions with the proposed changes to the Patent Act, the Trade-marks Act and the Copyright Act. In that brief few days, we’ve been considering the wording, but we will no doubt want to put in a written submission, given the scope of the detailed proposed changes.

There are a few examples that immediately hit our members, and I’d just like to touch on those.

One change in particular is a change in what’s known as file wrapper estoppel in the patent litigation field. This was introduced by the new proposed subsection 53.1(1) in the Patent Act, which is essentially the ability to introduce prosecution histories, the back-and-forth between the applicants for patents and the patent office, into judicial proceedings. This would change many years of our Canadian judicial precedent.

This provision was introduced with little notice or debate and was not mentioned as part of the national IP strategy. More specifically, though, our members felt that there was a lack of an appropriate transition period for this provision, especially with respect to active patent litigation and the fact that existing patents were prosecuted or obtained when this legal doctrine was not part of Canada’s patent laws. Based on this new provision, the doctrine would apply immediately if and when these patents are enforced.

In hearing from our committees that looked at Bill C-86 in the past few days, we can say that most amendments are supported by IPIC in principle, but there are many areas that when used in practice would create, in our view, unintended consequences.

To summarize those, some examples would include prior user rights and patents, a continuing lack of a requirement to show use of a trademark to obtain trademark registrations, and the statutory damages remedy for collective societies in the copyright, which appears to remove the availability of statutory damages in regard to sound recordings.

We’ll provide a detailed submission to the committee as soon as possible identifying these potential issues.

With that said, our priority in the remaining brief time we have is really to focus on some aspects of the bill that create the college of patent and trade-mark agents.

As many of you know, we’re happy to see this enabling legislation in Bill C-86. IPIC has been advocating to have such a governing body for almost 23 years. Looking at the legislation, what I’d like to encapsulate is two items that struck us as issues of concern.

The first issue really relates to two provisions, paragraphs 14(c) and 14(d) of the enabling college legislation. Paragraph 14(d), in effect, prevents IPIC members who have sat on one of our 37 committees in the preceding 12 months from being eligible to sit on the college’s board of directors or other important committees of the future college. It would also exclude those who have been volunteers of other organizations representing our profession in Canada and internationally.

IPIC has a great membership of volunteers. We have more than 400 volunteers sitting on our committees, which is about one-quarter of our membership. These are the profession’s most engaged members and often the most senior and most knowledgeable people of the profession. Taking into account that these would be excluded, our view is that after that exclusion, you’re really left with an extremely small pool of candidates who have the necessary experience and knowledge to sit on the college board.

As an example, we have many committees that deal with professional development. We have members who deal with the Federal Court with regard to changes in Federal Court litigation. We have public awareness committees; one is actively advising on indigenous IP issues. All of these members, based on this provision, would be excluded from the leadership board positions of the college if they had sat on these committees in the preceding twelve months

We believe this provision is unnecessary. It’s also inconsistent with other professions. For example, the Law Society of Ontario does not have such a restriction on its board members, its benchers. In fact, they encourage the members to be actively involved in voluntary associations.

In our view, the emphasis should be to repeal paragraphs 14(d) and 14(c). Paragraph 14(c) would actually make a member ineligible for the board based on membership alone. Our view is that the legislation should not prevent the college from having the best chance possible to succeed. The college should have the most qualified pool of candidates available for its leadership.

The second and final issue I'll highlight in our remaining time pertains to subclause 33(1) of the college legislation. It requires the inclusion of a code of conduct in the regulations. The code of conduct should be a living, breathing document. There's a rapid pace of change in both business and the IP profession, and we believe it is very problematic for the code to be part of a regulation. The code is often written into the bylaws or it's referenced by regulations, but it should live outside the regulations.

We recognize that the code may be deemed to be a regulation under the Statutory Instruments Act, but allowing it to exist as a bylaw or in some form outside the regulations would give the college the flexibility to amend the code efficiently and react as a one-stop organization and a guardian of the public interest. To give an example, in the case of the Law Society of Ontario, the code of conduct for them is called the Rules of Professional Conduct, which are not embodied in the regulations under the Law Society Act. The board of directors, known as benchers, oversees and approves the Rules of Professional Conduct, but the rules are not actual regulations under the act. The authority to make the rules and bylaws comes from the Law Society Act by way of legislative delegation.

In our view—

November 7th, 2018 / 5:30 p.m.
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Grant Lynds Past President, Intellectual Property Institute of Canada

Thank you, Mr. Chair and committee members.

As mentioned, my name is Grant Lynds. I'm the immediate past president of the Intellectual Property Institute of Canada. Thanks very much for inviting IPIC to present to you its initial thoughts on Bill C-86 and to answer any questions.

As you may know, IPIC is the Canadian professional association of patent agents, trademark agents, and lawyers practising in intellectual property law. IPIC represents the views of Canadian IP professionals in making submissions to government and other bodies.

November 7th, 2018 / 5:25 p.m.
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Chair of Advisory Board, First Nations Land Management Resource Centre

Chief Robert Louie

Thank you very much, Mr. Chairman.

I'll try to go through this a little more quickly and paraphrase a little more.

I want to point out to this honourable committee that just this past month when Brunswick House First Nation in Ontario held a vote with 153 yes votes and only 16 no votes, the land code still failed. Only nine more votes were needed. Bill C-86 can change that.

I can assure you that the success of the first nations with the framework agreement has been overwhelming. This is the sixth amendment to the framework agreement and....

There's so much I would like to say, Mr. Chairman. I appreciate the aspects of this. I wanted to state something about the misstatement of the purpose of the framework agreement and some of the subsidiary policies and things of that nature.

November 7th, 2018 / 5:15 p.m.
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Chief Robert Louie Chair of Advisory Board, First Nations Land Management Resource Centre

Thank you, Mr. Chair.

Good evening, honourable members of this committee. My name is Robert Louie, and I am chairman of the lands advisory board. My Okanagan Syilx name is Seemoo. Seemoo is our ancestral name, which means connected to the land.

I am here with colleagues to speak to this committee in support of the amendments to the First Nations Land Management Act, which I will refer to as FNLMA, in Bill C-86. We hope that all members of this committee will support these amendments as set out in division 11 of the bill, and that the legislation will be passed as soon as possible by Parliament.

This is the legislative step Canada takes to make the act conform to the most recent improvements of the Framework Agreement on First Nation Land Management, originally proposed to Canada in 1994 and signed in 1996.

Though we support the amendments to the FNLMA in Bill C-86, we wish to raise with committee members the need for future reforms to replace the FNLMA with a more appropriate and efficient approach, one that better respects our government-to-government agreement.

I will begin with some background on this most important and historic accord, the Framework Agreement on First Nation Land Management.

I am a former chief of the Westbank First Nation, a self-governing community, and have worked for many years now to advance self-government over our lands. I have chaired the lands advisory board for close to 30 years, since its inception.

With me tonight is my colleague Chief Austin Bear, of the Muskoday First Nation in Saskatchewan, who is chair of the first nations land management resource centre. This is the technical and finance arm of our organization.

Both of us worked together as part of a group of 14 first nations in the 1980s and early 1990s seeking a way to escape the draconian laws and policies of the Indian Act. We were driven by a desire to obtain recognition for our inherent right to self-government of our reserve lands and resources.

After many years of negotiations, research, consultation and extensive discussion, we signed the Framework Agreement on First Nation Land Management with Canada in 1996. This framework agreement was ratified by Canada when the FNLMA was enacted in 1999. The old and grossly outdated Indian Act land system held our communities back and did not respect our decision-making and our traditions. The old system did not meet the needs of community members and harmed our ability to participate in the mainstream economy at the speed of business.

In accordance with the framework agreement, individual first nations have the recognized authority to make decisions regarding their own lands and can promote healthier and more vibrant communities with direct economic benefits for our first nations, and indeed for all Canadians.

Through the framework agreement, we are awakening and improving areas of the Canadian economy that were depressed by the outdated Indian Act. This is a win-win solution. Let me re-emphasize—a win-win solution.

Self-government over lands is not only practical and effective, but is also a step towards meeting Canada's commitments to self-government under the United Nations Declaration on the Rights of Indigenous Peoples, which I will refer to as UNDRIP.

I begin with this focus on the critically important issue of self-government over lands because it is vital for committee members to understand that the framework agreement is at the heart of the matter. The legislation to amend the FNLMA in Bill C-86, and indeed the entire FNLMA, exists only because of the framework agreement.

Canada chose to ratify the framework agreement in Parliament through the FNLMA, but all the details of the agreement on self-government are found in the framework agreement. The purpose of the most recent FNLMA amendments is to reflect the amendments to the framework agreement that we developed in full partnership with Canada.

We are not FNLMA first nations exercising self-government under terms imposed or delegated by federal law; we are framework agreement first nations. The framework agreement is first nation-led, and it drives the FNLMA, not the other way around.

Under the framework agreement, first nations resume the independent exercise of self-government over their lands. First nations do not need any agreements with Canada or any federal legislation in order to exercise the inherent right to self-government.

However, part of the value of signing the framework agreement with Canada is the national recognition of this exercise of self-government combined with Canada's recognition of the need to dismantle the failed Indian Act in a measured and careful manner.

We see the framework agreement as a centrally important document in a new relationship with Canada and all Canadians regarding reserve land governance.

First nations sign a framework agreement to enter the process and first nations ratify the framework agreement to exercise self-government pursuant to their own laws. The framework agreement is not imposed on all first nations by Canada. Participation in the framework agreement is entirely voluntary. The framework agreement only applies to those first nations that choose to ratify the agreement.

The framework agreement is flexible to respect the particular conditions and priorities of individual first nations. In every case, it is up to the members of individual first nations to decide whether or not to leave the Indian Act land provisions and exercise their own self-government over lands.

Each first nation decides whether to ratify the framework agreement approach through their own land code. There is no one-size-fits-all approach, no single land code or set of laws imposed by Canada or by the framework agreement. This is good, and it's what first nations want.

We believe this to be one of the hallmarks of its success. The framework agreement is remarkably progressive and thriving. Now over 200 first nations have either ratified a land code or are in a process of developing a land code or have submitted official notice of their intent to participate. This means that approximately 30% of all first nations communities in Canada are involved today in this very important framework agreement and what we're doing in land management.

The framework agreement was developed by just 14 first nations but now, 22 years later, 81 first nations have resumed their land governance authority and 57 more first nations are actively considering this option right now. Budget 2018 envisions additional first nations over the next five years. We of course would like to see this number increased.

Although the framework agreement has been successful from the outset, we have also successfully worked with Canada on a number of improvements over the years. I think it would be beneficial to highlight these most recent amendments for committee members.

First, the framework agreement was developed before UNDRIP. Many first nations operating under the authority of the framework agreement see Canada's recognition of UNDRIP as an important step toward reconciliation respect for self-government and should be reflected in the framework agreement and in federal legislation.

First nations voters called upon to consider land codes want clarity. The new UNDRIP clause in the framework agreement will be important to voters considering whether to opt out of the Indian Act land system, because it signals Canada's commitment to an approach consistent with UNDRIP. With respect, I think the UNDRIP language in Bill C-86 could be improved. Right now, it says that Canada is committed to implementing UNDRIP; that is fine, but more explicit language might include words to the effect that the interpretation of the framework agreement and this act should be guided by the principles established in UNDRIP.

Second, we wish to emphasize to this committee the amendment to the voting process for land codes. In almost all the votes we have seen across the country, there has been overwhelming support for land codes. In two first nations communities votes, there was unanimous support among voters. On average, land codes are supported by 84% of voters.

However, in some cases when there has been an overwhelming majority vote in favour of the land code, it may be surprising to committee members that those land code votes have still failed. This is because the framework agreement does not only require a majority vote in favour but also that a minimum threshold of 25% of all eligible voters must vote in favour of the land code.

November 7th, 2018 / 5:10 p.m.
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Liberal

The Chair Liberal Wayne Easter

We'll reconvene for panel two, looking at Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018, and other measures.

Thank you all for coming on short notice, and for a big bill.

We do have votes tonight. I'm told bells are at 6:15, so we should be able to go to 6:30. I think it's a 30-minute bell.

We'll start Mr. O'Hara, president and CEO of Canadians for Fair Access to Medical Marijuana.

November 7th, 2018 / 4:40 p.m.
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Manager, Policy & Strategic Communications, YWCA Canada

Anjum Sultana

Thank you for the question.

YWCA Canada has been calling for a very long time—as have other women-serving organizations—for proactive pay equity legislation, so we were pleased to see this included in Bill C-86. Our colleagues on the panel have spoken about some of the things that need to be addressed to make it even better, but on the whole we are happy with the spirit of the legislation, because this is something that will impact the lives of many of the folks we serve every day across the country.

Our stipulation, from our understanding of the bill before us, is that there are some exemptions for folks who are in part-time, seasonal or contract work or in non-standard employment. For many of the people we serve every day across the country, this would not help them. It's really important, then, that we address this when we consider the legislation before us, because that exemption impacts primarily—and disproportionately—women. That is something to consider as your committee considers this bill.

On the whole, we are quite pleased with the introduction of a department for women and gender equality. We would encourage the committee to really put this forward in terms of resources in the upcoming budget 2019 to ensure that this department can do all of the great work that is set out in the bill itself.

This is a landmark moment. This is something that we should have in this country. YWCA Canada, with the over 330,000 people whom we serve across the country, is looking forward to seeing what impact this will make in a tangible way for women and girls and their families.

Thank you.

November 7th, 2018 / 4:35 p.m.
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Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Thank you, Mr. Chair.

Welcome, everyone. It's good to be here this afternoon with you.

My first question is for the Canadian Labour Congress with Mr. Yussuff.

In the province of Ontario, we've seen the Ford government attack the rights of middle-class Canadian workers and middle-class Canadian families. In the last few weeks, they have repealed many provisions that would benefit middle-class workers and their families, including sick leave, a minimum wage going up to $15 per hour, scheduling and so forth. Our government has decided to stand with middle-class families and middle-class workers, and in this piece of legislation, the budget implementation act, 2018, no. 2, we've introduced changes to the Canada Labour Code. They are the first such substantive changes since 1960, as I believe you referenced.

What more needs to be done? I know there is some stuff with regard to contract flipping and contract tendering. Can you provide some feedback on where we are and what else can be done, please, sir?

November 7th, 2018 / 4:35 p.m.
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Liberal

The Chair Liberal Anthony Housefather

Welcome, everybody, to this meeting of the Standing Committee on Justice and Human Rights. It was a little late starting, because there was an incredibly moving apology in the House of Commons that all parties joined. I think it was historic. For that reason, I'm glad we're starting our meeting late, because it was something well worth seeing and being a part of.

We were asked by the chair of the Standing Committee on Finance to weigh in on a couple elements of part 4, division 20, in clause 686 of Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

We are commencing our study today. I think one meeting will suffice.

We would like to welcome from the Department of Justice, Mr. Mark Scrivens, Senior Counsel. Welcome, Mr. Scrivens.

November 7th, 2018 / 4:15 p.m.
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Anjum Sultana Manager, Policy & Strategic Communications, YWCA Canada

Thank you.

Good afternoon, fellow members of the panel and honourable members of the Standing Committee on Finance. We thank you for the invitation to appear here before you today.

Once again, my name is Anjum Sultana, and I am the manager of policy and strategic communications at the YWCA Canada. We are the nation's oldest and largest women-serving organization. For nearly 150 years we have been working with women and girls and their families at critical turning points in their lives and providing them with the necessary services and resources to thrive and succeed.

Last week on November 1, over 100 members of the YWCA Canada were here on Parliament Hill and met with over 65 members of your fellow parliamentarians. We advocated for women's economic security. Today we will comment on the contents of Bill C-86. We are encouraged by many of the developments that have occurred in this particular bill, because we see that there is an opportunity to advance women's economic security here in the country.

What we also wanted to share was that we currently work in nine provinces and two territories, and we work with over 330,000 women and girls every year. We're anticipating that by 2020, our 150-year anniversary, we will be working also in our tenth province, which is Prince Edward Island.

What we want to do today is talk about three particular divisions of part 4 of Bill C-86, in particular division 9 of part 4, which pertains to the Canadian gender budgeting act to promote gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. We would encourage, as others have testified to this committee before, that to follow this landmark legislation, it would be critical to ensure that as future standing committees on finance consider pre-budget consultations, there be a target of gender parity. Specifically, others have testified before this committee to the importance of ensuring that at least 15% of future witnesses to this committee be from feminist and women-serving organizations.

The Canadian gender budgeting act marks an important milestone that can be further enhanced by ensuring that at least 15% of the witnesses to this committee come from feminist and women-serving organizations to truly ensure that women's voices are heard in the budget-making process as well as future decision-making processes.

We're also pleased to see inclusion in this bill of division 14 of part 4, which enacts the pay equity act, a call that women-serving organizations have been pushing for for many years, including colleagues from the Equal Pay Coalition, Janet Borowy and Fay Faraday, who appeared before this committee earlier for its consideration of Bill C-86. We fully support their recommendations, and in our brief to this committee we will delineate the specific recommendations, but we fully recommend their calls.

One that we want to draw your attention to is the specific point around the “Purpose” clause, clause 2, which has current language around ensuring that “the diverse needs of employers” are kept in mind. We would encourage that this be deleted, because what we have seen is that this undermines women's experiences in the labour workforce and also undermines the act's purpose and intent of addressing systemic gender bias and discrimination.

We were also pleased to see that in part 4 of this bill, division 18 was the piece of legislation to enact the department for women and gender equality. We were pleased to see that there were many other considerations of diverse social locations and diversities that were embedded in this particular piece of Bill C-86.

We would encourage that there be further inclusion of another identity, which is citizenship. We saw that there was indication that there was an understanding that the diverse experiences of women that are complicated by different aspects of social location such as age, ethnic origin and sexual orientation were considered. We would also encourage that citizenship be another addition to that list. This is consistent with other provincial human rights codes such as Ontario's, which includes citizenship.

Finally, we wholeheartedly agree and support the recommendations of our colleagues at the Canadian Labour Congress with respect to recommendations around leave. We see this in the over 330,000 women we serve every year, many of whom are from working class backgrounds and experience challenges in accessing their entitlement. We would encourage that these recommendations put forward by the Canadian Labour Congress also be considered.

I'd like to thank you again for your attention. We look forward to any questions that you might have.

Thank you.

November 7th, 2018 / 4:10 p.m.
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Leilani Farha Executive Director, Canada Without Poverty

Thank you, Harriet, and thank you, Chair.

Good afternoon.

My comments are going to focus on part 1 of Bill C-86, particularly the provisions related to political activities and purposes of charities at section 17 of the bill.

Let me begin by saying CWP is pleased to say to the committee that we support the proposed amendments. We do so for the following three reasons.

First, and perhaps most obviously, these provisions actually strengthen our democracy. They ensure robust public debate and discussion and that the voices and lived experiences and experiences of persons living in poverty can be heard in the public domain.

Second, and as Katherine Scott has already said, the amendments support recommendation 3 of the consultative panel that deliberated on these issues. I'd add to this that the amendments also are consistent with the Ontario Superior Court's ruling in the case that my organization brought on the very issue of restrictions on political activities of charities.

For those of you who've read it, you'll know, and for those of you who don't, I'll tell you, that Justice Morgan in that case ruled that restrictions on non-partisan political activities curtail CWP's ability to engage with our members and the public in pursuing our charitable purpose of relieving poverty, and that unlike old models of almshouses and soup kitchens, CWP's work to relieve poverty by sharing ideas, achieving attitudinal changes, and engaging in public policy dialogue to identify the causes of poverty and the necessary changes to laws and policies to relieve poverty are necessary for the achievement of our purpose, which is charitable.

He determined in fact that subsection 149.1(6.2) of the Income Tax Act “violates s. 2(b) of the Charter”—that's the free expression article in the charter—and that such a provision was not reasonably justified and that the provision is of no force and effect, and that henceforth charitable activities must be understood to include non-partisan political activities in furtherance of a charitable purpose. That's exactly what the proposed act is saying as well, and is consistent with.

The third reason we support the amendments is that like Justice Morgan's decision, they do not in any way allow groups that do not have an accepted charitable purpose to claim charitable status for political activities; rather, the changes simply recognize that freedom of expression and participation in public policy dialogue are critical components of the effective pursuit of accepted charitable purposes, such as the relief of poverty.

Before I close, I just want to note something for the committee. The government has not yet indicated an intent to withdraw its appeal in the decision of Canada Without Poverty v. Canada and has not recognized yet publicly that the sections of the act are in fact a charter violation. In fact, the government has chosen to frame the issue as one that's simply a matter of policy.

For our sector, it is critical that the sections of the Income Tax Act that are being amended remain recognized as a violation of the charter. Otherwise similar measures could be implemented on a political whim by future governments, leaving the sector exactly where it was prior to the suggested amendments in Bill C-86. We ask, therefore, and in closing, that the government withdraw its appeal in this case.

Thank you, and we're happy to take any questions.

November 7th, 2018 / 4:05 p.m.
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Harriett McLachlan Deputy Director, Canada Without Poverty

Thank you.

Good afternoon, and thank you for the opportunity to address this committee.

My name is Harriett McLachlan. I'm deputy director of Canada Without Poverty, and I'm joined today by Canada Without Poverty's executive director Leilani Farha, who is also the UN special rapporteur on the right to adequate housing.

CWP is a non-partisan, not-for-profit and charitable organization dedicated to ending poverty in Canada. For nearly 50 years, Canada Without Poverty has been championing the human rights of individuals experiencing poverty, and since our existence, the board of directors has been made up entirely of people with a lived experience of poverty.

This committee should know that although I'm an educated professional, I lived for almost 35 years in poverty, 19 years as a single parent.

Canada Without Poverty has long called for a national anti-poverty strategy to be secured in legislation. As members of this committee may be aware, United Nations authorities—for example, the UN Committee on Economic, Social and Cultural Rights—have urged Canada to secure in legislation its efforts towards the rights to an adequate standard of living, housing, and food.

We support the entrenchment of the Opportunity for All strategy within Bill C-86 as critical to the fulfillment of Canada's international human rights obligations.

While the strategy and legislation reference the sustainable development goals, the target and timeline invoke the minimum threshold of a reduction in poverty by 50% by 2030. The reality is that when we only commit to reducing poverty, we create opportunity for some and not opportunity for all, especially those who are the most marginalized.

For a country as wealthy as Canada, which should be leading other countries in the implementation of the SDGs, we are disappointed that the legislation does not commit to the spirit of SDG 1, which is to end poverty.

I'll pass it over to Leilani.

November 7th, 2018 / 3:55 p.m.
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Hassan Yussuff President, Canadian Labour Congress

Thank you, Chair and committee members. Good afternoon.

Thank you for the opportunity to appear before you today. Of course, Bill C-86 contains many provisions that are important to working people. I welcome any questions you may have in any aspect of the bill. However, I will confine my opening remarks to pay equity provisions and the amendments to the federal labour standards, the pay equity bill.

We're glad to see the federal pay equity bill finally being tabled. Of course, working women have been calling for this legislation for decades. This historic legislation will hold employers accountable for proactively identifying and correcting systemic wage discrimination. It will put working women in the federal sector on a path towards equal pay for work of equal value.

We also want to commend the government upon repealing the Public Sector Equitable Compensation Act brought forward by the previous government. We're pleased that the bill provides for pay equity committees to both develop and review pay equity plans. The bill also establishes a pay equity commissioner to administer and enforce the bill. We hope the commission and their team will have the resources and capacity required to implement the legislation effectively.

There are some parts of the bill that we need to change in order to reinforce pay equity as a human right and to ensure the process works to accomplish the goals of ending systemic wage discrimination.

First, the “Purpose” clause must be amended to remove the qualifying phrase “while taking into account the diverse needs of employers”. This language in this part of the bill undermines the intent of the bill, as well as the human rights of equal pay for work of equal value.

Second, language on voting in pay equity committees states that the decision of the employee groups must be unanimous or they will forfeit their right to vote. We suggest that a majority agreement is sufficient, as in the case of the Quebec legislation.

Finally, the language on maintenance provides for retroactivity when wage gaps have arisen in the interim between the posting of the original pay equity plan and the five-year review. However, it is retroactive to when the revised pay equity plan was posted, not to when the gap first occurs. A similar provision in the Quebec legislation was recently struck down by the Supreme Court of Canada. The federal act should not replicate this unconstitutional language.

On federal labour standards, Bill C-86 makes a variety of changes to the federal labour standards. In our opinion, these changes are overdue and much needed. Since the comprehensive Arthurs commission report was published in 2006, the federal labour standards have lagged behind provincial improvements. Many improvements have failed to keep up with significant changes in work and the world of employment.

We're pleased that the victims of family violence will now be entitled to five paid days for domestic violence leave. We welcome the prohibition on pay discrimination on the basis of employment status. Equal treatment protections in the code will reinforce the new pay equity legislation. They will benefit low-income workers, women of colour and newcomers to Canada who are more likely to be employed in part-time, temporary, casual or seasonal work. Temporary agency workers will also be entitled to equal treatment.

We also welcome the onus on employers to prove that they are not misqualifying employees as self-employed workers or independent contractors. These changes help bring the federal labour standards into the 21st century.

I do want to say that Canada's unions are not satisfied with the provision to end contract flipping at airports and federal workplaces. Bill C-86 provides some protection for non-unionized workers in contract retendering; however, we feel the government missed the chance to stop employers from terminating bargaining rights and cutting the wages and benefits of unionized workers by flipping contracts. We urge the government to take steps to ensure that all workers are treated fairly in such a situation.

I want to thank the committee for the opportunity to present here today. We'll take any questions you may have in regard to my presentation.

November 7th, 2018 / 3:50 p.m.
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Fraser Reilly-King Research and Policy Manager, Canadian Council for International Co-operation

Thank you also for inviting us to appear.

For the past ten years, since June 2008, Canada’s official development assistance, or ODA, has been governed by the ODA Accountability Act. This act ensures that Canada’s international development and humanitarian assistance focuses on poverty reduction, considers the perspectives of poor people, and upholds human rights—and that it is, perhaps most importantly, accountable to Parliament and the public.

As written, Bill C-86 amends the ODA Accountability Act in two problematic ways.

First, it repeals the current definition of ODA under the act. The current definition is largely aligned with that of the Organisation for Economic Co-operation and Development, the institution responsible for defining and monitoring ODA globally.

The OECD is currently considering potential changes to the global definition of ODA. Until this review is concluded, Canada should not change its domestic definition under the act. Doing so would prejudge the outcomes of this multilateral review and could put Canada out of line with its global peers.

Second, Bill C-86 would delay the release of a report required under the ODA Accountability Act. Currently, the act's report provides preliminary whole-of-government information six months after the end of a given fiscal year, and six months ahead of the final annual statistical report. The report provides access to provisional numbers on Canada’s ODA. It is an important and timely report for parliamentarians and the Canadian public. By delaying the release of this report by a further six months, there would be no official data on Canadian ODA until a year after the fact, and timing it with the release of the statistical report would make these numbers redundant.

We therefore recommend that the current definition of official development assistance and the current reporting schedule under the ODA Accountability Act be maintained.

Bill C-86 also introduces the International Financial Assistance Act, allowing the Minister of Foreign Affairs or the the Minister of International Development to offer sovereign loans.

We recommend that Bill C-86 be amended to indicate that only sovereign loans that are concessional, with a minimum grant element of 25%, and which aim to reduce poverty and support economic development, will be counted as ODA, as per the current definition under the ODA Accountability Act.

Finally, we want to comment briefly on three additional measures in Bill C-86.

We commend the creation of the department for women and gender equality and the gender budgeting act, which will enhance gender analysis in the policy process. This will ensure that Canada’s actions support implementation of sustainable development goal 5 on gender equality, both at home and abroad.

The poverty reduction act represents another important step toward aligning the global sustainable development agenda with Canada’s domestic action. However, here we urge the government to aim higher. Our goal in Canada and overseas should be to eradicate poverty, not merely reduce it.

With that, we'll close.

Thank you again for your attention.

I look forward to any questions.

November 7th, 2018 / 3:50 p.m.
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Gavin Charles Policy Officer, Canadian Council for International Co-operation

Mr. Chair and members of the committee, thank you for the invitation to appear before the committee.

We are pleased to appear on behalf of the Canadian Council for International Co-operation, Canada's national coalition of civil society organizations working to end global poverty and to promote social justice and human dignity for all. Our 80-plus members include many of Canada's leading international development and humanitarian assistance organizations. More broadly, we represent a sector that includes over 2,000 organizations that employ 14,000 people and spend over $5 billion each year.

The 2018 budget implementation act, no. 2 will have important impacts on the work we and our members do to build a fairer, more sustainable and safer world. Today we will focus our remarks on two areas. The first is changes to the rules governing charitable activities and the Income Tax Act, and the second is changes to how Canada delivers and tracks its international assistance.

CCIC wholeheartedly welcomes the amendment of section 149.1 of the Income Tax Act to accept and acknowledge the public policy role of Canadian charities. As we indicated in our submission to the finance committee during the 2019 pre-budget consultations, Canada's competitive advantage includes ensuring that we have a strong non-profit sector. A precondition of this is a legislative and policy environment that is fully conducive to civil society organizations realizing their full potential. It is therefore good to see that the substance and language of the amendments in Bill C-86 reflect the recommendations of the independent consultation panel on the political activities of charities.

We support the continuation of a prohibition on partisan activity by registered charities. However, existing guidance is vague, and these amendments do not clarify, for instance, what exactly is meant by “public policy dialogue and development” or “indirect support of, or opposition to, any political party or candidate”.

We recommend that these terms defining partisan activity be clarified to ensure that charities can maximize their contribution to Canada's society and economy. We also recommend that these and any other further improvements to the legislation and regulations governing Canadian charities be developed in dialogue with Canadian charities. In this vein, it is worth noting that the amendments proposed in Bill C-86 result from the very public policy dialogue the Income Tax Act now limits.

CCIC and other civil society organizations are keen to keep working with the government and parliamentarians to develop a modern regulatory and legislative framework for Canada's non-profit and civil society sector.

My colleague, Fraser Reilly-King, will now turn to the delivery of and accountability for Canada's international assistance.

November 7th, 2018 / 3:45 p.m.
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Katherine Scott Senior Researcher, Canadian Centre for Policy Alternatives

Thank you, Mr. Chair.

Thank you very much for the opportunity to address you today on the budget implementation act. My name is Katherine Scott, and I'm a senior researcher with the Canadian Centre for Policy Alternatives here in Ottawa.

Bill C-86 marks an important milestone for Canada with the introduction of part 1 of Canada's first poverty reduction act, followed quickly this week by Bill C-87 yesterday, as well as three other pieces of legislation enshrining the principle of gender equality and efforts to advance gender equality through policy and program.

These bills have been a long time coming. The call for proactive pay equity legislation reaches back decades. It's been a recommendation in the CCPA's alternative federal budget for many years. With this bill, federally regulated employers will be required to create proactive pay equity plans that will help to chip away at Canada's stubbornly high gender pay gap and to uphold women's right to equal pay for work of equal value.

The Canadian gender budgeting act will require governments of the day to assess and report on the impact of all new budget measures, including proposed revenue generation and program expenditures using a gender and diversity lens.

The new department for women and gender equality will ensure that the federal government is actively engaged in both supporting women's rights and gender equality through its own policy and research and providing much-needed support to government agencies and civil society organizations working in communities across the country.

These are foundational pieces for a more inclusive, a more just, and a more prosperous country. At a time when there is a mounting backlash against women's rights, these efforts are significant and important to ensure that, as the preamble to the proposed legislation for the new department attests, all have the opportunity equal with others “to make for themselves the lives that they are able and wish to have”.

The provisions for gender-based budgeting are also essential in modernizing Canada's processes for policy and program development. Around the world, gender budgeting is recognized as key to generating the evidence necessary to inform policy and programs that successfully deliver on their stated goals and contribute to broader societal well-being. The new act provides a vehicle for strengthening accountability and transparency, both key characteristics of effective public policy.

It's one thing to know, for example, that a measure like the employee stock option costs Canadians $755 million a year in forgone revenue. It's another thing to know that 77% of those benefits are claimed by men. The partial exclusion of capital gains delivers 75% of its benefits to men at an enormous cost to the government of $6.6 billion. These policies effectively amplify existing gender disparity in the labour market. A gender analysis poses fundamental questions. Are these tax expenditures effective in achieving their stated goals? Are they just? Could Canadian tax dollars be better spent elsewhere?

The work of the new department and those charged with carrying out GBA+ analysis will require sufficient resources to ensure the positive impact of this work. This will include mechanisms for meaningful engagement with and support for women's rights and gender equality-seeking groups. We have recommended an annual budgetary target of $100 million for the new department in the alternative federal budget.

So too does the new pay equity act hinge on the resourcing available for the new commissioner for training, education, compliance and enforcement.

We fully endorse and support the recommendations of the pay equity coalition with respect to proposed reforms, enshrining existing human rights protections, and the call for a robust mechanism for pay transparency. Without these actions, the proposed pay equity model risks becoming a variant of “comply and explain”, an approach that's met with precious little success in encouraging gender parity on corporate boards.

The issue of resources is also fundamental to the potential success of the new poverty reduction act. The act outlines specific targets for reducing poverty as measured against an official poverty line, and establishes a framework and a process for reporting on progress to both houses of Parliament.

At the same time, the act does not include any new investment in the programs that are needed to achieve the strategy's goals. Indeed, Canada's new plan is really more of a framework than a strategy to accelerate poverty reduction. A strategy implies that we have a plan to get from where we are to where we want to go, and crucially, the resources to back it up. On this score, low-income Canadians are still waiting.

With urgent need across Canada, an effective poverty reduction plan requires more ambitious targets and timelines and greater investments in programs such as universal child care, national pharmacare, training and education for marginalized workers, and the like.

Finally, I would like to commend the government for the amendment to the Income Tax Act taking up recommendation 3 of the consultation panel on the political activities of charities. This is a very important amendment, and we hope that the forthcoming guidelines coming from CRA will uphold the letter and the spirit of the bill's proposed amendments.

Thank you again very much for your kind attention.

November 7th, 2018 / 3:45 p.m.
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Liberal

The Chair Liberal Wayne Easter

We'll come to order.

Pursuant to the order of reference of Tuesday, November 6, 2018, we are studying Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

My apologies that we're starting a little late. The Prime Minister, the leader of the official opposition, and the leader of the third party are making statements in the House on the Jewish refugees who were prevented from coming into Canada on the St. Louis. That's why we're short a few members, but we were worried about the time getting tight for you.

With that, welcome to all. Thank you for coming on very short notice, I know.

We'll start with the Canadian Centre for Policy Alternatives and Katherine Scott.

Go ahead, Katherine.

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 6:50 p.m.
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Liberal

The Speaker Liberal Geoff Regan

I declare the remaining elements of the bill carried.

The House having agreed to the entirety of Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures at the second reading stage, the bill will now be read a second time.

Accordingly, the bill stands referred to the Standing Committee on Finance.

(Bill read the second time and referred to a committee)

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 5:30 p.m.
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NDP

François Choquette NDP Drummond, QC

Madam Speaker, it is a pleasure to rise in the House to speak to Bill C-86, budget implementation act, 2018, no. 2.

As we have heard a few times already, this is a mammoth bill, an 851-page omnibus bill. We have to wonder when this is going to stop. Under the Conservatives we became accustomed to 400-page bills and now the Liberals are introducing an 800-page omnibus bill. It never ends. This is just wrong.

If you combine the two budget implementation bills, they total 1,400 pages. It is just wrong. As MPs who represent our constituents, how can we do our jobs properly and diligently?

That said, the bill does contain a few good points. The government is finally going to move forward on pay equity.

However, it is once again telling women that they will have to wait another four years before they actually get pay equity. This matter is extremely important to the NDP. I personally have presented several petitions on behalf of the people of greater Drummond, who are absolutely beside themselves when I tell them that pay equity does not yet exist at the federal level. They cannot believe it.

This is still a reality. It is a regrettable and preposterous state of affairs. Unfortunately, the Liberal government is still making women in our great country wait for equity. There is no doubt that we must act quickly on this file.

What else is in this bill?

I will talk about what we do not like in this bill.

There is something extremely important that the people of greater Drummond and Canada have been waiting for. For three years they have been waiting for the budget implementation bill to finally amend the Bankruptcy and Insolvency Act. It is still not part of the budget. We have long been calling for measures to protect workers whose companies go bankrupt.

What does this legislation do? They go to the trouble of reopening the Bankruptcy and Insolvency Act, they protect commercial licence holders and corporations, but they do not protect workers. That is very bad news. We have been advocating for that for a long time. We have long been calling for action on this file. We are really disappointed.

Another thing we have long been calling for is EI sickness benefits. After three years, the Liberal government could have finally implemented EI reform that is worthy of its name. It certainly had the opportunity to do so.

Those notorious EI sickness benefits last just 15 weeks. It is mind-boggling. This policy is from 1971.

Since 1971, recipients have had just 15 weeks to recover. No one thought more time would be needed. Even though no one seems to have noticed, in 50 years, nothing has improved. The government needs to take action.

I want to acknowledge Marie-Hélène Dubé, who has been working very hard to make the public and also the Liberals and members of Parliament aware of this issue. She created the “15 weeks is not enough” campaign.

In 2009, she started a national petition calling on the government to extend EI sickness benefits beyond 15 weeks. She has collected 600,000 signatures so far, which is significant. This is a topic of concern to the people of Quebec and Canada. Marie-Hélène Dubé battled cancer three times in five years. She has had her share of problems. She experienced stress as a result of her illness. She had to deal with all of that on top of being a single mother.

She said:

The majority of people do not have insurance coverage. [Some people have private insurance, but that is not the case for everyone.] Women are often the most vulnerable. They sometimes earn less. And if they are single parents and have responsibilities, they can slip into poverty and never recover.

It makes no sense. The Liberal government needs to wake up. I have been receiving letters about this from the people of the greater Drummond area, such as Ms. Parent. Our EI system has not been reformed in many years. Ms. Parent told me that she underwent surgery on a cancerous brain tumour. She has to travel to Trois-Rivières for radiation treatment and chemotherapy. She has to say in a room that costs $30 a day. She says that she does not have much money. In addition to her treatment expenses, she has a house to pay for. It is impossible for her to recover from brain cancer in 15 weeks.

Could the Liberal government show some empathy and listen to Ms. Parent? Fifteen weeks is not enough to heal. That is why we must listen to people like Ms. Parent and increase benefits.

That is just one example, but I have others. It is shocking. I do not understand why this situation has not yet been resolved. Another constituent, Cynthia from Drummondville, said that, in 2016, her life was turned completely upside down. After a difficult pregnancy, she was diagnosed with spinal cord cancer. She had no choice but to claim EI sickness benefits, and 15 weeks later, she was left without any income. She was in physical therapy to relearn how to walk at the time.

That makes no sense. When will the government do something to help Cynthia from Drummondville get more sickness benefits? Fifteen weeks is not enough time to recover. More sickness benefits are needed.

These are just a few examples that show that the government could have done a lot more in this budget to achieve pay equity and defend workers. How is it that retirement pensions are not protected in the event of bankruptcy? Those contributions are paid by workers. They are the ones who made annual contributions toward their retirement. They forgo some of their wages so that their company will also contribute. Then, if the company goes bankrupt, they are told that they are last on the list. They may get little or none of their retirement savings back. That does not make any sense.

Getting back to the 15 weeks to recover, I can name other organizations, such as the Regroupement de défense des droits sociaux de Drummond, an advocacy group whose director, Joan Salvail, does excellent work defending people with employment insurance and income security issues. She says that nobody really understands employment insurance rules until they need EI. The fact is that 15 weeks of sickness benefits is nowhere near enough. The benefits people get are just a fraction of their usual pay, and those benefits run out before people have recovered. For many, it is the beginning of a long period of financial hardship.

What will the Liberal government do to address the needs Joan Salvail identified? It makes no sense. Fifteen weeks to recover is not enough.

The Liberal government took office almost three and a half years ago. Why has it not yet come up with solutions for this file? I do not understand. An 800-page omnibus bill with no solutions. Unbelievable. This 800-page bill does not even fix simple problems such as upping the number of sickness benefit weeks. We want those 15 weeks to go up to at least 50 weeks. Most serious illnesses take at least 50 weeks, nearly a year, to recover from. Let us hope the government will listen to Canadians and the people of Drummond and fix this problem before the election.

November 6th, 2018 / 5:25 p.m.
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Liberal

The Chair Liberal Wayne Easter

We'll reconvene. I call the meeting to order, to go through departmental witnesses on the subject matter of Bill C-86, the budget implementation act.

With us we have the group that we didn't have time to deal with last evening, so thank you for your indulgence.

We're dealing with part 4, division 16, on the wage earner protection program act. We have Ms. Baxter and Mr. Duff.

The floor is yours.

November 6th, 2018 / 5:20 p.m.
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Liberal

Darren Fisher Liberal Dartmouth—Cole Harbour, NS

Thank you.

What I intended to say—and I'll read the blues when they come out—was that was what was “complex” and “confusing” was the provisions of Bill C-86 that the committee has been asked to study, not the price on carbon.

November 6th, 2018 / 5 p.m.
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Kootenay—Columbia, NDP

Wayne Stetski

Just to follow up on that, the other thing I've heard about British Columbia is that emissions were going down until the year the province stopped increasing the price. There was an annual price increase that was part of it, and when that price stopped increasing, that's when, potentially, emissions started to go up a little bit. If you could find that study, that would be great, because there are lots of different versions around.

There's a positive statement with regard to Bill C-86, for someone coming from a rural riding. I'll just reference it and then ask you to talk about it a little bit. It says, “Individuals living in rural areas, defined as areas outside of census metropolitan areas...as established by Statistics Canada for the purposes of this measure, will receive a supplementary rebate equal to 10 per cent of their baseline entitlement.”

I wonder if you could speak to that for a minute. I'm assuming that's because we have to drive more often and drive further.

November 6th, 2018 / 4:55 p.m.
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Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Thank you very much, Mr. Chair.

Minister, thank you for your testimony.

On May 4, 2015, the Liberal leader unveiled the Canada child benefit while visiting my riding of Hull—Aylmer. While making the announcement, he said, “Our plan is progressive. We can do more for the people who need it by doing less for the people who don't”. Canadians embraced this policy and this program.

We eliminated the Canada child tax benefit, which was aimed at low-income families, and the universal child care benefit, which had been developed by the Conservatives. That program was available to everyone, even millionaires. It was replaced by the new Canada child benefit, which came in the form of a tax-free monthly cheque. In the opinion of myself, my constituents, and certainly all of the country's top analysts, this is the most important social program to be introduced in the past 50 years.

In Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, you proposed certain amendments. Can you tell me why?

November 6th, 2018 / 4:50 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Thank you.

My final question in the few seconds left to me is around the family debt crisis.

We have Bill C-86, which is deeply flawed. A number of witnesses have pointed to that. As I mentioned, we're seeing increasing inequality in both the parental leave provisions and the pay equity provisions. The family debt crisis in Canada is now the worst among industrialized countries, and certainly it's the worst in Canadian history.

How do you intend to resolve family debt crisis if Bill C-86 can't be fixed appropriately so the pay equity provisions have a positive impact on women and the parental leave provisions benefit all families?

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 4:45 p.m.
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Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, the Liberals are drowning Canadian job creators in red tape and tax hikes. Whether it is the carbon tax, small business tax hikes or the many cancelled tax credits and deductions, the Liberals are driving businesses out of Canada and killing Canadian jobs, hurting workers and middle-class families across the country.

Every other day major oil and gas companies cancel future projects, stop expansions or completely sell their Canadian businesses and take their money to other countries. It is a crisis, and it is not a result of external factors beyond the government's control. In fact, it is a direct consequence of the Liberals' message to Canadians and the world that Canada is closed for business because of the Liberals' added red tape and imposed cost increases.

Context is important. The energy sector is the biggest private sector investor and accounts for over 11% of the value of Canada's economy. To put this in perspective, it contributes twice as much as agriculture and fisheries combined, sectors in which farmers and fishermen also often have jobs in oil and gas. It contributes more than the banking and finance sector and more than the auto sector. The benefits are shared across Canada. Every one job in the oil sands creates seven manufacturing jobs in Ontario. Every one upstream oil and gas job in Alberta creates five jobs in other sectors, in other provinces.

However, spending in Canada's oil and gas sector declined 56% over three years, from $81 billion in 2014 to $45 billion in 2017. More money has left Canada's oil and gas sector since the 2015 election than at any other comparable time period in more than 70 years. The equivalent value would be losing 75% of auto manufacturing in Canada, or almost the entirety of the aerospace sector in Canada, something no one rightfully would accept.

The biggest beneficiary is the U.S. where spending in oil and gas increased 38% to $120 billion in 2017. Today, U.S. investment in Canada is down by more than half. Canadian investment in the U.S. is up by two-thirds. The consequences of these losses are hundreds of thousands of Canadians out of work and less revenue for core social programs and services at every level of government in every single province.

Over 115,000 Albertans are out of work and not receiving any employment insurance assistance right now and tens of thousands more have lost their jobs. The Liberals' anti-energy agenda is clearly both hindering the private sector from being able to provide well-paying jobs, but it is also risking the life savings of many Canadians.

Oil and gas companies are a big part of most people's pension plans, and whether through employer provided defined contribution plans or personal investments in mutual funds, chances are that most Canadians are invested in oil and gas. When oil and gas companies leave Canada, the value of those investments in Canada drops, reducing the value of everyone's retirement savings. Now CPP and the Ontario teachers' pension plan are also investing in the United States.

I want to highlight an aspect of this legislation that will compound uncertainty and challenges for Canadian oil and gas proponents. On page 589, in the very last chapter of this 840-page omnibus bill, clause 692 implements sweeping new powers for the federal cabinet to impose regulations on marine transport. Included in these powers is the ability to pass regulations:

(j) respecting compulsory routes and recommended routes;

(k) regulating or prohibiting the operation, navigation, anchoring, mooring or berthing of vessels or classes of vessels; and

(l) regulating or prohibiting the loading or unloading of a vessel or a class of vessels.

This means the Liberal cabinet can block any class of tanker from any route leaving Canada or from docking at any port the Liberals choose. In Bill C-48, oil tankers of a certain size will be prevented from travelling and from the loading and off-loading of crude at ports only off the northern coast of B.C.

This legislation, Bill C-86, would be a dramatic expansion, giving the Liberal cabinet the power to block oil exports from any port anywhere in Canada or to block oil tankers in general from entering Canadian waters. Places like the Arctic could lose access to the fuel tankers that keep power on during the winter. Offshore oil and gas development in Atlantic Canada could be blocked overnight. That is alarming in itself, and it gets worse.

This legislation authorizes a single minister to be able to make legally binding changes to these regulations for a year at a time and even up to three years, regarding “compulsory routes” and “prohibiting the operation, navigation, anchoring, mooring or berthing of vessels or classes of vessels”. One minister with one stroke of a pen can shut down an entire industry with wide-ranging impacts.

This is a pattern. The Liberals repeatedly demonstrate their hostility to the oil and gas sector in Canada. The Prime Minister of course said that he wants to phase out the oil sands, and Canadians should believe him. He defended the use of tax dollars for summer jobs to stop the Trans Mountain expansion. The Liberals removed the tax credit for new exploration oil drilling at the very worst time.

Also, many Liberal MPs ran in the last election opposing the export of Canada's oil to the world. Since they formed government, the Liberals have used every tool at their disposal to kill energy sector jobs.

Canada is the only top 10 oil-producing country in the world, let alone in North America, to impose a carbon tax on itself. While there are significant exemptions for major industrial emitters, it will hike costs for operations across the value chain, and certainly for the 80% of Canadian service and supply companies that are small businesses. Moreover, individual contractors will still have to pay it.

The proposed clean fuel standards—which would be unprecedented globally because they would be applied to buildings and facilities, not just to transportation fuel—will cost integrated oil and gas companies as well as refining and petrochemical development in Canada hundreds of millions of dollars. Canada is literally the most environmentally and socially responsible producer of oil and gas in the world, oil and gas that the world will continue to demand for decades. We are falling dramatically behind the United States and other countries for regulatory efficiency and clarity.

The Liberals imposed the tanker ban, with no substantial economic, safety, or environmental assessments and no real consultation, and a ban on offshore drilling in the north against the wishes of the premier of the Northwest Territories.

The Prime Minister vetoed outright the northern gateway pipeline and then intervened to kill energy east with delays, rule changes and a last-minute double standard. Now, the Liberals' failures have driven Kinder Morgan out of Canada. Construction of the Trans Mountain expansion has never started in the two years since the Liberals approved it, and they have repeatedly kicked the can down the road for months. The consequence is that crude oil is now being shipped by rail and truck at record levels, negatively impacting other sectors like agriculture, manufacturing and retail.

The Liberals would add uncertainty and great expense for any resource project that has even a ditch on its property, by subjecting all water to the navigable waters regulatory regime in Bill C-68. Moreover, their “no more pipelines” Bill C-69 would block any future pipelines and therefore stop major oil and gas projects from being built in Canada.

Kinder Morgan is now going to take all of that $4.5 billion in Canadian tax dollars the Liberals spent on the existing pipeline and will use it to build pipelines in the United States, Canada's biggest energy competitor and customer. The consequences are that large companies are pulling out of Canada and investing in the U.S. or elsewhere.

Encana, a made in Canada success story, is selling Canadian assets to buy into projects in the United States. Gwyn Morgan, its founder, did not mince words. He said:

I’m deeply saddened that, as a result of the disastrous policies of the [Liberal] government, what was once the largest Canadian-headquartered energy producer now sees both its CEO and the core of its asset base located in the U.S.

It is estimated that the Liberal failure to get pipelines built is forcing Canadian oil to sell for $100 million dollars less a day than what it should be worth. That is $100 million dollars a day that is not providing for middle-class families, that is not fuelling small businesses, and not generating taxes to pay off the out-of-control Liberal deficit.

RBC recently reported that in 2008, taxes generated by oil and gas were worth $35 billion a year for provincial and federal governments. That is now down to almost $10 billion a year in 2016. That is more than $20 billion a year that could have gone to health care and education or to cover old age security costs, or be invested in building bridges and roads. Of course, the Liberals promised a deficit of only $10 billion a year and that the budget would be balanced by 2019, but none of that is anywhere in sight. They choose to spend recklessly: millions of dollars on perks like renovations for ministers' offices, a $5 million hockey rink on Parliament Hill that operated for a couple of months, or $26 million for vehicles. Never mind the billions of dollars spent outside Canada, building oil and gas pipelines in Asia with Canadian tax dollars or funding groups linked to anti-Semitism and terrorism.

Never has a government spent so much and achieved so little. The end result is Canada is trapped in a debt spiral. The ones who are going to pay for these deficits are millennials and their children, and it makes life less affordable today while federal government debt increases interest rates across the board. That poses significant risks to Canada and leaves us utterly unprepared for a global economic recession or worldwide factors that the government cannot control, unlike the Liberals' damaging policies. Future generations will find that their governments cannot afford services or programs they are counting on, and their governments will be in a trap of borrowing and hiking taxes. That is why Conservatives advocate balanced budgets, because it is the only responsible thing to do for Canada's children and grandchildren.

The out-sized contributions of the energy sector to the whole country's economy and to government revenue is also why the future of energy development in Canada is one of the most important domestic economic questions facing all of us. That is what makes the Liberal layering of red tape and costs on Canadian energy so unconscionable, and the consequences so devastating for all of Canada.

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 4:45 p.m.
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Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Mr. Speaker, it is always nice to get a question from my hon. colleague. In many ways, we share similar points of view on a variety of things.

One of the issues that I have been working on for the last almost four years, which started when I was one of the members in opposition, is the issue of paying our bills promptly. One of the things that I find most aggravating here is the fact that it takes forever to get anything done. It takes years to get legislation through. It takes years to make changes. If the government has an omnibus bill and it is including a lot of things in that bill, sometimes that is a way of helping move certain agendas along.

Let us talk about the issue of protecting our marine environment. There are a variety of things in this bill that are important and need to get done, yet there were more delays as we progressed and moved along. There are complaints all the time that governments take far too long to get things done and, as the previous government did, sometimes the decision is to take a different avenue to get things done. At the end of the day, government is responsible to move legislation along and to move bills like Bill C-86 along as well.

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 4:30 p.m.
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Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Mr. Speaker, I am pleased to join the discussion today on Bill C-86, the budget implementation act.

It is well known by everyone inside and outside this House that we are going into an election year. I often think back to the last election in preparation for my plans for what is going to become the 2019 election for Canada. Of course, I look forward to being the nominated candidate, which I am, for the election in October 2019. Congratulations to you, Mr. Speaker. I see that you received your nomination last week.

In the last election, Canadians chose to elect the government with a plan to invest in the middle class and a government that planned to truly build an economy that would work for everyone, not just a select few. The results over the last four years speak for themselves. There are more Canadians employed today than in years and years. We have the lowest unemployment rate we have had the good fortune to have in well over 40 years, and that is a result of investments and the infrastructure and so on that our government has done.

Since November 2015, the Canadian economy has created nearly 600,000 jobs, most of which are full-time jobs. The unemployment rate, as I mentioned, is near historic lows, and that is something I know everyone in this House is pleased about. Canada has had the fastest-growing economy among G7 countries.

Wages are increasing. People are being paid a better wage, and then they are taking that wage and reinvesting it by purchasing things for their families. They are able to upscale to new homes or better cars. Consumer and business confidence is clearly stronger than ever. Middle-class Canadians, as I said, are seeing first-hand that our plan is continuing to work. By this time next year, a typical family of four will be better off, with more money in their pockets. If it is a family of four, we are talking about $2,000 more. If it is a family of eight, it will be reflected in the child tax benefit.

More money in their pockets is something that will be tremendously important to the families in my riding of Humber River—Black Creek. I have a particularly interesting riding. It is mixed, very multicultural, with a lot of new immigrants and a lot of people who are struggling to get ahead, find jobs, get decent housing and achieve the Canadian dream. What our government is doing is clearly going to help them achieve that dream. More money in their pockets means that the constituents in my riding can afford to buy additional things they need for their children. They can purchase school supplies and maybe even have the opportunity for a nice evening out with a loved one. They can have the ability to offer music classes to their children or enrol them in hockey or soccer or many activities that are quite expensive.

That all being said, for these things I have mentioned to happen, we must see Bill C-86 pass. Bill C-86 needs to pass to support our government's people-centred approach and ensure that every Canadian, from coast to coast to coast, has a fair chance for success.

Our government is taking the next step toward building an equal, competitive, sustainable and fair Canada. By making substantial investments and real progress for the middle class, our government is demonstrating its commitment to all Canadians, and especially to those who need it the most in our communities. My riding of Humber River—Black Creek is no different. There are a number of key measures contained in Bill C-86 that would have a positive impact for Canadians, but I would like to take this opportunity to highlight the measures that will impact the lives of the people of Humber River—Black Creek in a positive way.

Our government is taking the next step to help grow the economy in a way that would strengthen and grow the middle class by introducing the new Canada workers benefit. The Canada workers benefit will put more money in the pockets of low-income workers and deliver real help to more than two million Canadians who are working hard to join the middle class.

Canadians who qualify for the Canada workers benefit will be automatically enrolled, thereby ensuring that no worker will be left behind. We often hear that when the government initiates programs people are not aware that they have opportunities for support in various ways. Automatically enrolling people will ensure that people get whatever benefit they are entitled to. The Canada workers benefit will raise approximately 70,000 Canadians out of poverty by 2020.

Our government's poverty reduction strategy is a really important issue for communities like mine that have a lot of new immigrants, a lot of people who are struggling to find jobs and settling in with their families. The first three or four years after moving into a new community are very much a struggle for them. The government's poverty reduction strategy will help many newcomers.

Since taking office in 2015, our government has been growing the middle class by helping those working hard to join it. There has been an increase in the numbers when we talk about the middle class today.

Housing is a very big issue in my riding. I know of three or four homeless people in my riding who are looking for housing. They are women and at the moment they share a room with a friend. They have their names on a list that contains the names of about 18,000 other people who are also trying to find safe housing.

The enhanced seniors benefit is important. Our government has done a lot on the seniors file. We now have a new Minister of Seniors whom we are thrilled with. She and our government will do a lot of work to deliver assistance to our seniors.

Thanks to programs like the Canada child benefit, the national housing strategy and others, by 2019, our investments will have lifted over 650,000 Canadians, including more than 300,000 children, out of poverty. All of us should be thrilled with that.

Guided by opportunity for all, Canada's first national poverty reduction strategy, we are establishing an official poverty line for the first time ever, and setting firm targets for reducing poverty to the lowest level in Canada's history. Opportunity for all represents a bold vision for poverty reduction that will build a Canada where every Canadian from coast to coast to coast has a real and fair chance at success.

Pay equity is another very important goal that we finally managed to see achieved. We have talked about it for well over 25 years and it is nice to see that it is finally going to come to fruition. We have been having discussions about pay equity for the full 19 years or so that I have been here.

I have appreciated the opportunity to say a few words today and I welcome questions.

November 6th, 2018 / 4:10 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

The point is that we have pay equity advocates who are now saying that this bill, as it is currently worded, provides less protection than what currently exists, and that women will have to go back to court to fight for their rights again, which means that it's a government betrayal of the commitments made around pay equity.

I think it is important to stress that these are numerous voices in the scant few hours of testimony that we've had so far, and because the government is invoking a bulldozer trying to ram this through, the fact that there are deep flaws in the legislation, I would hope, would give the government pause to step back and not ram through the legislation but actually work with pay equity advocates, with civil society and with opposition members so that we can get it right. I'll come back to that in a moment, because not getting it right means prolonging the crisis that exists in inequality in this country.

Another component of Bill C-86 is the parental leave provisions. We heard this morning that now one third of all families that should most benefit from the benefits that were put into the budget bill will not receive them because the criteria that are set up around the parental leave benefits don't allow them to access them. Are you concerned by the fact that the poorest families can't receive the parental leave benefits in the bill, and will you seek to address that and make changes to the bill so that they can be included?

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 4 p.m.
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Conservative

Alupa Clarke Conservative Beauport—Limoilou, QC

Mr. Speaker, I am very pleased to rise. As usual, I would like to say hello to the many people of Beauport—Limoilou who are watching us live on CPAC or on platforms such as Facebook and Twitter later.

I would like to comment on the speech by the Minister of Status of Women. I found it somewhat hypocritical when she said that she hopes her opposition colleagues will support the bill and the budget's feminist measures, which she presented, when the Liberals actually and strategically included all these measures in an omnibus bill, the 2018 budget implementation bill. Clearly, we, the Conservatives, will not vote in favour of Bill C-86 because it once again presents a deficit budget that is devastating for Canada's economy and for Canadian taxpayers. It is somewhat hypocritical for the minister to tell us that she hopes we will support the measures to give women more power when she herself was involved in hiding these measures in an omnibus bill.

I would like say, as I often say, that it is a privilege for me to speak today, but not for the same reason this time. I might have been denied the opportunity to speak to Bill C-86 because this morning, the Liberal government imposed closure on the House. It imposed time allocation on the speeches on the budget. This is the first time in three years that I am seeing this in the House. Since 2015, we have had three budget presentations. This is the sixth time we are debating a budget since 2015 during this 42nd Parliament. This is the first time I have seen the majority of my Conservative colleagues and the majority of my NDP colleagues being denied speaking time to discuss something as important as Bill C-86 to implement budgetary measures. The budget implementation legislation is what formalizes the budget the government brought down in February. Implementation is done in two phases. This is the second phase and it implements the Liberal government's budget.

By chance, I have the opportunity to speak about the budget today and I want to do so because I would like to remind those listening about some key elements of this budget which, in our view, are going in the wrong direction. First, the Liberals are continuing with their habit, which has become ingrained in their psyches. They are continuing with their deficit approach. It appears that they are in a financial bind. That is why they are creating new taxes like the carbon tax. They also lack the personal ability to govern. You might say that it is not in their genes to balance a budget. The Liberals' budget measures are bad and their economic plan is bad. They are so incapable of balancing the budget that they cannot even give us a timeline. They cannot even tell us when they think they will balance the budget.

This is the first time that we have seen this in the history of our great Canadian parliamentary democracy, established in 1867, and probably before that, in the parliaments of the United Canadas. This is the first time since 1867 that a government has not been able to say when they will balance the budget. I am not one for political rhetoric, but this is not rhetoric, this is a fact.

The Liberals made big promises to us in that regard during the 2015 election. Unfortunately, the Liberals put off keeping those promises. They promised to balance the budget by 2019. Now, they have put that off indefinitely, or until 2045, according to the Parliamentary Budget Officer, a position that, let us not forget, was created by Mr. Harper. That great democrat wanted to ensure that there was budgetary accountability in Parliament. The Liberals also promised that they would run small deficits of $10 billion for the first three years and then balance the budget. The first year, they ran a deficit of $30 billion. The second year, they ran a deficit of $20 billion. The third year, they ran a deficit of $19 billion. Just a week or two ago, we found out from the Parliamentary Budget Officer that the Liberals miscalculated and another $4 billion in debt has been added to that amount. The Liberals have racked up a deficit of $22 billion. That is 6.5 times more than what they set out in their plan to balance the budget.

The other key budget promise the Liberals made was that the small deficits of $10 billion would be used to build new infrastructure as part of a $187-billion program.

To date, only $9 billion has flowed from the coffers to pay for infrastructure projects. Where is the other $170 billion? The Prime Minister is so acutely aware of the problem that he shuffled his cabinet this summer. He appointed the former international trade minister to the infrastructure portfolio, and the new infrastructure minister's mandate letter says he absolutely has to get on this troublesome issue of money not being used to fund infrastructure projects.

There is a reason the Liberals do not want to give us more than two or three days to discuss the budget. They do not want the Conservatives and the NDP to say quite as much about the budget as they would like to say because we have a lot of bad things to tell them and Canadians.

Fortunately, we live in a democracy, and we can express ourselves in the media, so all Canadians can hear what I have to say. However, it is important for us to express our ideas in the House too because listening to what we say here is how Canadians learn what happened in history.

Things are not as rosy as the Liberals claim when it comes to the economy and their plan. For instance, in terms of exports, they have not been able to export Canadian oil as they should. We have one of the largest reserves in the world, but the Liberals tightened rules surrounding the National Energy Board in recent years. As a result, several projects have died, such as the northern gateway project and energy east, and the Kinder Morgan Trans Mountain project, which the Liberals managed to save in the end using $4.5 billion of taxpayers money. In short, our exports are not doing very well.

As for investments, from 2015 to 2017, Canadian investments in the U.S. increased by 65%, while American investments in Canada dropped by 52%.

On top of that, one thing that affects the daily lives of Canadians even more is the massive debt, which could jeopardize all our future projects for our glorious federation. In 2018, the total accumulated debt is $670 billion. That comes out to $47,000 per family. Not counting any student debt, car payments or mortgage, every family already has a debt of $47,000, and a good percentage of that has increased over the past three years because of the Liberals' fiscal mismanagement.

That is not to mention the interest on the debt. I am sure that Canadians watching at home are outraged by this. In 2020, the interest on the debt will be $39 billion a year. That is $3 billion more than we invest every year in health.

The government boasts about how it came up with a wonderful plan for federal health transfers with the provinces, but that plan does not respect provincial jurisdictions. What is more, it imposes conditions on the provinces that they must meet in order to be able to access those transfers. We did not do that in the Harper era. We are investing $36 billion per year in health care and spending $39 billion servicing debt. Imagine what we could have done with that money.

I will close by talking about the labour shortage. I would have liked to have 20 minutes so I could say more, but we cannot take the time we want because of the gag order. It is sad that I cannot keep going.

Quebec needs approximately 150,000 more workers. I am appalled that the minister would make a mockery of my questions on three occasions. Meanwhile, the member for Louis-Hébert had the nerve to say that the Conservatives oppose immigration. That has nothing to do with it. We support immigration, but that represents only 25% of the solution to the labour shortage. This is a serious crisis in Quebec.

There are many things under federal jurisdiction that the government could do and that, in combination with immigration, would help fill labour shortages. However, all the Liberals can do is make fun of me, simply because I am a member of the opposition. I hosted economic round tables in Quebec City with my colleagues, and all business owners were telling us that this is a serious crisis. The Liberals should act like a good government and stop making fun of us every time we speak. Actually, it is even worse; they want to prevent us from speaking.

November 6th, 2018 / 3:55 p.m.
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Mr. John Aldag (Cloverdale—Langley City, Lib.)

The Chair

I will leave it to the departmental officials in the first line to offer whether they can or can't comment on questions that come up from any of the members who are at the table today.

For the members, we are here to look at a specific part of Bill C-86 that has been sent to us, not at broader discussions.

Mr. Warawa may be able to thread this back to Bill C-86 in some form, and I'm willing to hear him, but if the departmental officials feel it is out of line, they can say that. If I need to rule on it, I will, but I'm going to give some latitude here for everybody.

November 6th, 2018 / 3:55 p.m.
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Liberal

Darren Fisher Liberal Dartmouth—Cole Harbour, NS

I have a point of order.

Do we have an idea of what's going to be considered relevant for this very narrow aspect of Bill C-86?

November 6th, 2018 / 3:50 p.m.
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Liberal

Michael McLeod Liberal Northwest Territories, NT

Thank you, Mr. Chair.

Welcome to the minister and his staff.

Being a member of this committee has given me a lot of opportunities to hear voices from across the country. We've been travelling. We've had witnesses. We've heard a lot of issues raised and a lot of concerns brought forward. As a member of Parliament who represents a jurisdiction that has a large indigenous population—over half of my riding is indigenous—I was really impressed by the number of indigenous people who have appeared in front of us and talked to us about their concerns and reminded us of a number of things. I think there's a real sense of opportunity out there, after many years of not moving on a lot of the issues that face us.

Some of the things they reminded us of were that we need to create the mechanisms to allow indigenous people to be self-governing, that we need transformative change, and that we need to stop fighting in the courts. For the most part, I think we've done that. They were also there to remind us that indigenous people and non-indigenous people are in this together. I think that message is one we hear at all venues we attend where there are aboriginal people.

I was really pleased to see that this bill makes several amendments that would improve the fiscal capacity of first nations peoples on reserve. However, as you know, in the north, our indigenous people are structured a little differently. These changes might not be directly applicable to them.

Could you speak about how Bill C-86 would enhance economic reconciliation? As we talk about reconciliation, we always hear, and it's very clear, that there can be no reconciliation without economic reconciliation.

Could you talk a bit about the next steps that the government will take to ensure that all indigenous communities, including the ones in my riding and from coast to coast to coast, can strengthen their fiscal management systems? I think there's been a lot of work done in this area in the last while.

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 3:45 p.m.
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Peterborough—Kawartha Ontario

Liberal

Maryam Monsef LiberalMinister of Status of Women

Mr. Speaker, before I begin, I would like to acknowledge our presence on the traditional territory of the Algonquin peoples, who have taken care of this place for generations upon generations.

I am standing in the House to speak to, and urge my colleagues to support, Bill C-86, the budget implementation act, part 2, more affectionately known in this House as BIA 2, and to speak to the measures that help grow Canada's middle class and support those working hard to join it. I firmly believe that, when passed, these measures will help support Canadians across the country and help to grow our economy.

I also need to acknowledge the work of the feminists who have come before us, those who have worked so hard, those effective trailblazers and courageous silence-breakers who have brought us to this moment in time when we recognize that equality is a driver of economic growth. In fact, this past October, we launched Women's History Month, with the first online gallery that captures the stories of Canada's women of impact. This particular website tells the stories of women like Elsie Knott, the first woman to be chief of a first nation in Canada; Louise Fish; and young women like Faith Dickinson, along with the more well-known trailblazers, like the Right Hon. Kim Campbell. I encourage my colleagues and Canadians to google "Canada's women of impact" and read their stories. There is a teacher's guide so that we may share those stories in an effective way. Of course, Canadians are welcome to provide their nominations for other women whose stories ought to be on that website.

I mention those women, because our government is committed to continuing their legacies. Advancing gender equality is the right thing to do, and it is indeed the smart thing to do. We would benefit to the tune of $150 billion in Canada's economy over the next decade if Canada's women participated equally in our economy. We would increase our GDP by 4%, we would fill critical labour shortages, and would ensure that Canada's middle class grows, and that we stay competitive.

There are several measures in Bill C-86 to close the gender wage gap and to build on our government's existing efforts. I would like to speak broadly to five of those.

The first is the introduction of an act that would ensure there is a new and full department with a broader mandate to help Status of Women Canada evolve. It would evolve into the department for women and gender equality, WAGE in short. There is proactive pay equity legislation. We are legislating the application of a gender and diversity lens to all federal budgets moving forward. There are provisions for shared parental leave, and there is also a new benefit of five days of paid leave for survivors of family violence.

I would like to speak to the enabling legislation that would ensure that the department for women and gender equality would be able to build on the good work of the small but mighty agency that is Status of Women Canada. I will take this opportunity to thank my predecessors, as well as the team at Status of Women, who, regardless of the whims and values of the sitting governments of the day, kept the work of gender equality alive, kept tools like GBA+ sharp and applicable in Canadian contexts, and worked tirelessly, with limited resources, to help transform an agency into a full department and help meet the additional demands on their expertise with a feminist government.

The department, to be called WAGE, the department for women and gender equality, will have a wide mandate for the advancement of equality, including social, economic, and political equality with respect to sex, gender expression, gender identity, sexual orientation, rurality, indigeneity, immigration and immigrant status, as well as to ensure that we take into account the wide range of varieties that Canadians find themselves in.

The proactive pay equity legislation included in this bill, Bill C-86, is historic. It is a historic step that will ensure that women in federally regulated industries, whether in the public service or others, are paid equally for work of equal value.

In doing so, we consulted with employees and employers and advocacy organizations and worked to strike a balance between the recommendations that came from the Bilson report, as well as the hard work and the report presented to the House from the committee that worked on pay equity. Proactive pay equity legislation is part of our government's efforts to get our house in order, and to continue to lead by example, hopefully compelling other employers to do the same.

The third item I would like to speak to is gender budgeting. BIA2 includes legislation that enshrines gender budgeting in law. This will ensure that future governments apply a gender and diversity lens to their budgetary decisions. This is an important example of how our government is working to ensure that an intersectional gendered lens is applied to our decision-making, including the federal budget.

The fourth item I would like to speak to is a new benefit to advance gender equality. Our government's five-week EI “use it or lose it” parental sharing benefit which is available to two-parent families, including adoptive and same sex couples, proposes to provide greater flexibility, particularly for mothers to return to work sooner, if they so choose. It encourages the second parent to take part in the work that is caring for a newborn.

We know that it will help shape and change some of the gender norms around who provides the care. We also know that for mothers who experience postpartum depression, having that additional support in those early days will provide some relief.

The fifth item that I would like to speak to is a budget measure that is tabled by our government that will ensure that survivors of family violence receive five days of paid leave. Advocates, women's organizations and unions have told us that these five days will ensure that those who experience that violence will have some time to figure out next steps, to come up with a plan, to take a time out, whatever that may be. This is something that we heard from advocates across Canada and we listened.

Regardless of our political persuasions, we all agree that nobody should have to live in fear, in economic uncertainty, of not having access to a decent job, or being paid less for work of equal value. Everyone should have the opportunity to succeed in this great country, no matter their gender, gender identity, age, language, origin, race, abilities, rurality or other identity factors.

I encourage my hon. colleagues in this House to support this bill. The measures introduced, combined with our government's efforts, like support for women's organizations, like child care, like a national housing strategy that has a carve-out for women who are escaping violence, like the work we are doing to support women entrepreneurs and women leaders, like Daughters of the Vote, all of these measures combined will ensure greater equality in Canada, will grow Canada's middle class and will support those working hard to join it.

I hope that colleagues support Bill C-86. I am happy to answer any questions they may have.

November 6th, 2018 / 3:40 p.m.
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Miodrag Jovanovic Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance

Thank you, Mr. Chair.

Thank you, committee members.

I'll say a few words regarding the proposal in Bill C-86 on the climate action incentive payment. My colleague Pierre Mercille will then say a few words about the proposal with respect to GST on emission allowances.

Bill C-86 proposes to amend the Income Tax Act to introduce a climate action incentive. This measure creates a mechanism by which direct proceeds collected under the fuel charge component of pollution pricing under the Greenhouse Gas Pollution Pricing Act can be returned to individuals in provinces and territories subject to the federal pollution pricing system if those proceeds are not returned directly to the government of that jurisdiction.

The climate action incentive payments enabled by this measure will be received by individuals when they file their tax returns for the 2018 taxation year—that is, when they file their tax returns in early 2019.

Calculation of the amount of the climate action incentive payment for an eligible individual will be based on the individual's province of residence and family circumstances, with province-specific amounts to be specified annually by the Minister of Finance. Individuals living in rural areas, defined as areas outside census metropolitan areas as established by Statistics Canada, will receive a supplementary rebate equal to 10% of their baseline entitlement.

Distributions made through this mechanism will be deemed to have been paid as rebates in respect of fuel charges levied under part 1 of the Greenhouse Gas Pollution Pricing Act. This measure can be found in clauses 13, 18(1), 18(8), 18(9) and 19 in part 1 of Bill C-86.

Thank you.

November 6th, 2018 / 3:40 p.m.
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The Chair Mr. John Aldag (Cloverdale—Langley City, Lib.)

Good afternoon, everyone.

I'd like to welcome our departmental officials here today.

We set aside the meeting today to look at items that were referred to us from the finance committee on Bill C-86. We've allocated the full meeting today to hearing from our departmental officials. We've been asked to discuss three sections of Bill C-86. We'll go through a standard piece with department officials. I think both Finance and Natural Resources are going to make opening comments, but not Environment Canada.

You have up to 10 minutes for your opening statements. If you need less, that's fine. Then we'll go into our standard rounds of questions, at six minutes each.

Mr. Jovanovic, go ahead.

November 6th, 2018 / 3:35 p.m.
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Liberal

Bill Morneau Liberal Toronto Centre, ON

Thanks, first of all, for inviting me here today. I'm happy to be here for the next 90 minutes or so to talk about budget implementation bill, no. 2. In particular, I'd like to thank you, Mr. Chair, as well as the vice-chairs and all the committee members, for your hard work during the last round of pre-budget consultations and, of course, during the review of the budget implementation bill. I am looking forward to hearing your questions on this important piece of legislation, which is the next step in the government's plan to strengthen and grow the middle class, and to build an economy that works for all Canadians.

The measures in this bill provide middle-class Canadians and those working hard to join them with more opportunities to succeed. These measures will enable everyone to contribute to Canada's success and to benefit from that success.

Before speaking to the specific measures included in the second budget implementation bill, I'd like to take a moment to highlight some of the actions our government has already taken, actions that, along with the hard work of Canadians, have helped to put Canada's economy in a very good place.

As you may remember, it was three years ago last week that the government was sworn in. Since then, we've continuously invested in Canadians, delivering on our promises and making smart investments that are helping to deliver real results for the middle class and for those Canadians who are working hard to join it.

One of our very first actions was to introduce a middle-class tax cut. More than nine million Canadians are now benefiting from that tax cut.

To help Canadian families with the cost of raising children, we also introduced the Canada child benefit, a simpler, tax-free and more generous benefit than the previous system of child benefits. Since its introduction in 2016, the Canada child benefit has helped to lift more than 520,000 people out of poverty across our country, including nearly 300,000 children.

To help give more Canadians the secure and dignified retirement they've earned after a lifetime of hard work, our government worked together with the provinces and strengthened the Canada pension plan.

To help low-income workers take home more money while they work, we introduced the Canada workers benefit, a program that will encourage more people to join and stay in the workforce, and offer real help to more than two million Canadians who are working hard to join the middle class.

We've also taken steps to support Canada's small business owners and entrepreneurs, the people who have helped to create the good, well-paying jobs that middle-class families rely on. This includes cutting the small business tax rate to 10%, effective this past January, and to 9% this coming January.

The government has also signed three new free trade agreements. Today, Canada is the only G7 country holding trade agreements with every other G7 country.

Mr. Chair, the results of the government's investments are clear. Over the past three years, Canadians have created over half a million full-time jobs. Canada had the fastest-growing G7 economy in 2017 and still has one of the strongest economies in the G7.

Wages are going up in Canada. The unemployment rate is at its lowest in 40 years. That being said, we know we still have work to do. Bill C-86 will enable us to make Canada even more egalitarian, competitive, sustainable and fair.

A moment ago, I referred to the Canada workers benefit, or the CWB. Not only are we introducing this more generous benefit for low-income working Canadians; we're also taking further steps to ensure that more workers who are eligible for the CWB actually receive it.

Budget implementation act, no. 2, or BIA 2, allows the Canada Revenue Agency to calculate the CWB for tax filers, even for those who have not claimed it. This means that low-income workers who are eligible to receive the CWB will be able to do so simply by filing their taxes.

We expect that when you combine this increase in take-up with other program enhancements, the CWB will deliver real help to more than two million working Canadians, starting next year. What's more, it will also help to lift about 70,000 Canadians out of poverty by the year 2020.

Ensuring that the people who have earned this benefit actually receive it, we believe, is just common sense. It's the right thing to do for the millions of low-income working Canadians, who are working hard to be successful and to join the middle class.

As all of you know, promoting and advancing other measures are also critically important in BIA 2. Promoting and advancing gender equality is another of our government's top priorities that are demonstrated in this act.

Canadian women are among the best educated in the world, but they still face barriers that keep many of them from reaching their full potential. Advancing women's equality drives our economic growth while boosting the income of Canadian families.

The wage gap between women and men has narrowed in recent years, but it remains a barrier. For every dollar per hour that a man working full time earns in Canada, a woman working full time earns, on average, about 88 cents. On an annual basis, women's earnings are even lower—about 69 cents for every dollar earned by men—because they're more likely to work part time.

We know that's not acceptable, and we're committed to doing better. That means taking real and meaningful action to help reduce the gender wage gap and to increase the participation of women in the labour force. That's exactly what we're doing with the legislation that we're discussing today.

With BIA 2, the government is introducing proactive pay equity legislation. It will require federally regulated employers with 10 employees or more to establish and maintain a pay equity plan so that employees who are not receiving equal pay for work of equal value can finally do so. This measure will apply to 1.2 million employed Canadians, including public servants, employees of Crown corporations, and employees of federally regulated private companies, such as banks, airlines, cable companies and radio and television broadcasters. As part of the act, we're also proposing to establish a new pay equity commissioner to administer and enforce the law, and to report annually back to Parliament.

That said, we also know that it often takes more than equal pay to deliver equal opportunity. As one example, no matter what a parent earns, child care duties in our society still fall disproportionately to women. That is why, in BIA 2, we are also proposing a new employment insurance parental sharing benefit. This “use it or lose it” benefit is intended to encourage all parents, including fathers, to take some leave when welcoming a new child, and to share more equally in the work of raising their children.

Two-parent families that agree to share parental leave could receive an additional five weeks of leave, or an additional eight weeks for parents who choose the extended parental benefits option. This will make it easier for women to return to work sooner, if they so choose. It will help to address some of the patterns of discrimination that many women experience during the hiring process, and it will give both parents an opportunity to spend time with their young children, setting up patterns of more equal parenting that can last for a lifetime.

The government proposes to make this measure available next March, three months earlier than originally planned. This earlier date would enable 24,000 more parents to benefit from the new measure.

Finally, BIA 2 also includes a proposal to introduce a gender budgeting act. We know that budgets are about making choices with limited resources. In budget 2018, all decisions were informed by what we call gender-based analysis plus. This allowed us to consider the different ways in which budget measures could impact Canadians based on their gender and also other factors. The gender budgeting act is intended to make this analysis a permanent feature of the federal budget-making process. It will ensure that these important factors are taken into account when making budgetary decisions.

Mr. Chair, we are committed to growing the economy in a responsible, fair and sustainable way. That also means protecting the environment and reducing carbon emissions. Forecasts show that climate change will cost our economy $5 billion a year by 2020. Canada needs to reduce its greenhouse gas emissions, and the best way to do that is to put a price on pollution. Pollution pricing is a proven way to encourage Canadians and businesses to innovate and invest in clean technologies.

For the past two years, the federal government has worked with its provincial and territorial partners on a plan to grow the economy while reducing Canada's greenhouse gas emissions. Provinces and territories had a range of options. They could either design or maintain their own carbon pollution pricing system that meets the federal standard, or they could voluntarily adopt the federal backstop pricing system, as Yukon and Nunavut decided to do.

Unfortunately, some provinces have failed to recognize the cost of pollution. For that reason, two weeks ago the Prime Minister announced that the gap in leadership will be filled by a federal pollution pricing system to be applied in New Brunswick, Ontario, Manitoba and Saskatchewan. All direct proceeds—and that means all direct proceeds from federal pollution pricing—will be returned to the province of origin, with the bulk of the proceeds from the fuel charge going directly to individuals and families through climate action incentive payments. The amendments proposed in BIA 2 would allow for climate action incentive payments to reach individuals and families in those four provinces.

Thanks to Canadians' hard work, job creation is up and unemployment is down. More and more Canadians are benefiting from Canada's strong economy, but there is still work to be done. Budget implementation act, no. 2, allows the government to enhance the support that middle-class Canadians need to make better lives for themselves and their families.

I'm happy to answer any questions on the second budget implementation act or the supplementary estimates.

November 6th, 2018 / 3:35 p.m.
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Liberal

The Chair Liberal Wayne Easter

We'll come to order.

We have the minister and senior staff here, along with a lot of finance folks at the back of the room, related to our study on Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

On the side, we solved all the problems with Andrew and Ava. Minister, I guess we'd better let you go ahead.

The floor is yours. Welcome.

Budget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 3:30 p.m.
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NDP

Sheila Malcolmson NDP Nanaimo—Ladysmith, BC

Mr. Speaker, speaking for the NDP, I rise to speak about Bill C-86, the budget implementation bill. I will run through some of the things we do not like, some of the things we wish were there and some of the measures that we have some qualified support for, particularly around oil spill response. I will then speak a little more in depth about pay equity, which is a long-awaited provision. We have been eagerly looking forward to it being brought into the House for three years, actually 42 years if we count the total sweep of time since it was first committed to by Liberals, and a lot of questions have come up about the mechanics of it.

However, first, there is one big missing piece. Although the bankruptcy laws would be amended through this proposed budget implementation act, they would only protect commercial licence-holders and corporations but fail completely to protect workers' pensions with those same bankruptcy laws. Our NDP colleague, the member for Hamilton Mountain, has been working for three years on this. When there is a bankruptcy, workers' pensions, which they have paid for, should be at the front of the line. How could the government, when it is for the middle class and all that jargon, have opened up that section of the bankruptcy laws but not introduced this amendment? It is so important, whether one is a Sears worker or Stelco worker. It is a major miss and a great disappointment. In fact, some have said it is a “moral failure”.

What is missing? If this were a New Democrat budget, we would have web taxation for the giant web companies. We would end pension theft. We would have universal child care. We would have closed tax loopholes. We would have much stronger measures against tax havens. A major way to fund our social programs in this great country is to close the offshore super-rich tax loopholes. We would have sick leave in EI. We would have universal, affordable pharmacare. We would have closed the funding gap for indigenous education and access to drinking water on reserves. There would have been more help for rural communities.

Here is one proposed provision that there is a mix on. We are glad to see an increased number of weeks for parental leave when divided between working parents, but, again, and we have made this argument every budget, it would only be effective for people who can afford to live on just 33% of their salary. It is not within reach or affordable for families who are not super well off. Also, as my colleague pointed out, six in 10 workers do not have access to EI. The program is still designed in a way that does not accommodate part-time and precarious workers, the people who most need the social safety net of EI. Therefore, it is a provision that although on paper looks good, and it is a good step I guess, it would not actually get to the people who need it. Of course, it does not get at the heart of the matter, which every gender-focused government and progressive government in the world has done, and that is invest in universal affordable child care. This proposed budget would not do that.

An issue I have been working on for at least 10 years in my role as Islands Trust Council chair and during the whole three years that I have been representing here concerns oil spill response. I represent a coastal community by the ocean. It has a lot of shipping traffic, a very sensitive ecology, fast-moving currents and big tidal fluctuations. A lot of jobs are dependent on the region; people are very concerned about oil spill response. Therefore, we were glad to see in the proposed budget a mechanism for the Coast Guard to receive upfront funding from the ship-source oil pollution fund.

Members might remember this fund from when I worked with the former fisheries minister, the member for Nunavut, to have the Viki Lyne II removed from Ladysmith Harbour. After four and a half years of trying, it cost $1.2 million, which was funded through the ship-source oil pollution fund. That abandoned vessel had been towed into Ladysmith Harbour by Transport Canada. The government brought it into our riding, and it took us that long to get it out, but that fund was used to remove the Viki Lyne II on the basis that removing that abandoned vessel would prevent an oil spill.

Therefore, it is good there is some conversation in this budget about how this fund might be used in a new and modern way. However, a provision in the budget implementation act that worries me is that it creates a mechanism for the government to put taxpayer money into the fund in the event it is depleted.

We have heard a lot of speeches in the chamber about polluter pays and making corporations pay for pollution. I agree with that, but this is the exact opposite of the intention of the ship-source oil spill pollution fund.

The following is part of a letter that I wrote when I was the Islands Trust Council chair in 2013 for the Tanker Safety Panel Secretariat under Transport Canada:

...this fund cannot be viewed as a “polluter-pay” arrangement, when industry has only contributed $34.86 million between 1972-1976 and none since then. On the other hand, I am told the taxpayer has contributed more than $424 million and the fund has paid out more than $51 million for industry's annual premiums to the international compensation funds. It makes sense to us

—that is, the Islands Trust Council—

that cargo owners and pipeline owners with marine terminals who profit by risking our marine environment and the health of our communities, should contribute to this fund to avoid the burden falling on the Canadian taxpayer.

That is how it should be. Industry should be paying for this fund. We really do not want to see the government opening up a mechanism to put taxpayer funds into this, even if it is only in an emergency situation. Rather, right now we should be asking the polluters to make contributions so that in the calamitous event there is an oil spill, we are able to have the funds right there that industry has already paid for.

Most importantly, I want to talk about the pay equity provisions. Going back in history, members will remember that it was 42 years ago that Pierre Trudeau's Liberal government committed to pay equity. In 2004, again under a Liberal government, there was a task force that had tremendous buy-in from all sectors and made very strong recommendations on pay equity that were never implemented. The NDP's very first opposition day motion in this Parliament was to have the government strike a special committee to find a way to implement those 2004 recommendations.

Here we are, three years later, and we wish it had not taken this long. However, we are glad to see the pay equity legislation finally tabled here. That it is buried in an 800-page omnibus bill is very discouraging. It means we cannot dig into the details, and there are a lot of them.

I have some questions about where this does not seem to align with the 2004 pay equity task force recommendations, which this Parliament's special committee unanimously said should be implemented. Pay equity is a fundamental human right, but this act's purpose clause defines it in terms of the employer's need. This is unheard of in a human rights statute in this country and completely contrary to the 2004 task force recommendations.

There will be no legal support centre for non-union women, as recommended in the 2004 task force. There will be no standalone enforcement entity as a specialized pay equity commission and tribunal. Again, that recommendation was ignored. The definition of “employer” is left out.

We had some testimony just this morning indicating that the finance committee ran through some of these mechanisms. We are getting good advice, but, again, we wish we had more time to debate and implement it.

A question was asked about why the new federal pay equity legislation would reduce the entitlements that women employed in precarious jobs currently have with that protection under the Canadian Human Rights Act. How could it possibly be that precarious workers would have less protection in this new bill than they do right now?

The timeline is a significant problem as well. Again, we have been waiting 42 years. It took the government three years to get to this point. The new pay equity act says that women could wait more than 10 years to receive a pay equity remedy: one year to develop the regulations, three years for pay equity plan development, and eight years for compensation and remedies to paid out in the case of workplaces with fewer than 99 employees.

This is not a situation where more consultation and more research is needed. Other countries have gone way ahead of us. Women have waited far too long. We really want to accelerate the implementation of equal pay for work of equal value.

The House resumed consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

Bill C-86—Proposal to Apply Standing Order 69.1Point of OrderGovernment Orders

November 6th, 2018 / 3:25 p.m.
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Liberal

The Speaker Liberal Geoff Regan

Turning now to the point of order, the hon. member asked me to divide the question on the bill pursuant to Standing Order 69.1 on omnibus bills. He argued that specific measures in the bill, namely clauses 461 and 462 dealing with protections for workers, and clauses 535 to 625, dealing with the head of compliance and enforcement, did not appear to arise out of measures announced in the budget. Therefore, in his view, these sections should be separated out for a distinct vote. He felt that there were likely other matters contained in the bill that were unrelated to the budget, but the short timeline had not permitted him the opportunity to make a thorough review.

The hon. parliamentary secretary to the government House leader responded by saying that there was, indeed, a link between these measures and what was promised in the budget. In the case of the provisions relating to the head of compliance and enforcement, he indicated that the government had signalled its intention to amend and modernize the Canada Labour Code in last year’s budget and that these provisions were in response to that commitment.

Standing Order 69.1 allows the Speaker to divide the questions on the motions for second and third reading of a bill when there is no common element connecting the various provisions or where unrelated matters are linked. Paragraph (2) of that Standing Order provides an exemption for budget implementation bills, by which the question cannot be divided if the bill contains only provisions announced in the budget or referenced in the budget documents.

On November 8, 2017, in a ruling regarding Bill C-63 found at pages 15165 to 15167 of the Debates, I explained that:

I believe the purpose of the standing order is to allow such a division in relation to those matters which are unrelated to the budget, accepting that the purpose of the remainder of the bill is to implement the budget.

Therefore, the only question at issue is whether the provisions identified by the hon. member have any link to the budget presented in this place on February 27. If they do, then I would not separate them out for a distinct vote.

As I mentioned in the ruling last year, establishing such a link is not always obvious. The budget document is over 360 pages, accompanied by nearly 80 pages of supplemental tax information. Sometimes commitments are very specific and targeted, while other times the language may be vaguer. A generally stated policy intention may translate into a series of detailed and technical legislative amendments. Accordingly, a provision announced in a few sentences may require pages of legislative changes to implement. It is with this in mind that I have reviewed the provisions identified by the hon. member for New Westminster—Burnaby.

Clause 461 of the bill creates a new division VI.1 in the Canada Labour Code relating to temporary help agencies. The provisions seem to deal largely with matters relating to pay equity. Page 43 of the budget indicates that pay equity legislation will “include job types such as seasonal, temporary, part-time and full-time positions”. While this measure falls outside the pay equity act enacted by clause 416 and related measures in clauses 417 to 440, it seems reasonable to conclude that it is part of a series of provisions dealing with equal pay for equal work and fair treatment in the workplace, in line with the objective announced in the budget.

Clause 462 changes a heading in the Canada Labour Code relating to maternity leave and other types of leave. For many years, it was our practice that headings were not subject to amendment, as they were not considered to be part of a bill. However, in recent years, it has become more common to see clauses or amendments that change headings. In fact, this particular heading had previously been changed by Bill C-63.

The substance of the present change seems to be to group a list of different types of leave into a more concise heading. The parliamentary secretary noted that page 46 of the budget indicated that:

…the Government proposes to amend the Canada Labour Code to ensure that workers in federally regulated industries have the job protection they need while they are receiving EI parental benefits.

I am prepared to accept that the heading change flows, at least partially, out of this commitment.

Clauses 535 to 637 amend the Canada Labour Code to allow a minister to designate a head of compliance and enforcement and spell out this person’s powers and responsibilities. Some of these relate to harassment and violence in the workplace. Page 236 of the budget makes reference to “…protecting federally regulated employees from harassment and violence in the workplace” and at least some of these measures clearly align with that objective. However, the parliamentary secretary’s main argument for not separating out these provisions is that they fulfill a commitment made in budget 2017 to strengthen compliance and enforcement mechanisms in the Labour Code.

The parliamentary secretary’s contention is that the exemption in the Standing Order applies to a bill whose purpose is the implementation of “a budget”, inferring it need not be this year’s budget. I think this is a bit of a stretch.

The title of Bill C-86 references the “budget tabled in Parliament on February 27, 2018”. Clearly, the main purpose of the bill is to implement this year’s budget, not last year’s. I do not believe the intention of the Standing Order was to also exempt provisions from previous budgets.

Had the commitments been repeated in this year’s budget, I may have been inclined to accept his arguments, but that does not appear to be the case. For that reason, I am prepared to allow a separate vote on the provisions contained in subdivision B of division 15 of part 4.

Accordingly, given that a reasoned amendment has been moved, there will be three votes at second reading for this bill. The first will deal with the reasoned amendment. If it is defeated, the second vote will deal with all provisions relating to the head of compliance and enforcement in the Canada Labour Code, which includes clauses 535 to 625 of the bill, while the third will deal with all remaining provisions of the bill.

I thank hon. members for their attention.

Time Alloted for Consideration of Budget Implementation Act, 2018, No. 2—Speaker's RulingPrivilegeGovernment Orders

November 6th, 2018 / 3:20 p.m.
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Liberal

The Speaker Liberal Geoff Regan

I am now prepared to rule on the question of privilege as well as the point of order raised on October 31, 2018, by the hon. member for New Westminster—Burnaby regarding Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

I would like to thank the member for having raised the matter as well as the Parliamentary Secretary to the Leader of the Government in the House for his observations.

In regard to his question of privilege, the member for New Westminster—Burnaby contended that the government's intent to allow a few days of debate on Bill C-86 would not allow for sufficient scrutiny of its clauses, given the length of the bill, at 850 pages. As parliamentarians have a fundamental right and responsibility to examine legislation, he concluded that a bill of this size is more than an omnibus bill and constitutes an obstruction to his ability to perform his parliamentary duties.

The Parliamentary Secretary to the Government House Leader assured the House that time will be available for the bill to be considered at each stage of the legislative process and, thus, the member’s privileges are not being breached.

Let me begin by saying that I appreciate the member for New Westminster—Burnaby’s concern with his ability to scrutinize a bill of this magnitude thoroughly and, in turn, debate with confidence. This is a massive bill, the largest budget implementation bill to date.

That said, the rules and practices of the House have yet to address the issue of limits on length of legislation. Even with the addition of Standing Order 69.1, which grants the Speaker some authority with respect to omnibus legislation, there is no mechanism for the Chair to deal with legislation based solely on its size. This is no less true when there is a supposition being made about the limited amount of time that will be allowed for debate on any given bill. Whether or not a reasonable amount of time has been allowed for debate is not a question that the Chair can answer, even now when members are being asked to digest a “gargantuan bill”, as the member for New Westminster—Burnaby called it.

As my predecessor said on June 12, 2014, at page 6717 of the Debates, “it is the House that retains that authority and therefore must continue to make that determination as to when and if a bill has received adequate consideration.” For these reasons, I cannot conclude that the objection raised constitutes a prima facie contempt of the House.

Status of WomenOral Questions

November 6th, 2018 / 2:45 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

There was no answer, Mr. Speaker, so we will try again.

Bill C-86 is a massive omnibus bill, a direct contradiction to the Liberal promise not to do this anymore.

The Equal Pay Coalition told the finance committee that pay equity provisions in the bill are unconstitutional and will force women back to court to fight for rights. That is appalling. The Liberal bill would provide even less protection for part-time and temporary workers. That is worrisome.

Bill C-86 is badly botched on pay equity. Rather than ramming it through the House, will the government pull back and work with civil society, pay equity advocates and the NDP to fix the bill?

Second ReadingBudget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 1:45 p.m.
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Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, today we are debating the sixth omnibus budget bill since the last election. It is 850 pages long and includes 70 pages of additions to the Income Tax Act, yet there is not one word about tax havens. Three years, six bills and 4,500 pages of budget bills, and still not a word about tax havens.

The Liberal government's record on taxation is a monumental failure. It is worse than failure, actually, because to fail implies that one has tried. This government is not even trying. It chose to leave the door wide open to tax havens and the people who cash in because of them. It is doing so knowingly and deliberately. Despite all the nice things it says about the middle class, it has picked sides and it is siding with Bay Street bankers. I cannot overemphasize that tax havens are probably the worst financial and economic scandal of our time. When it comes to attacking this cancer, Canada's performance is among the world's worst.

Canada represents just 2% of the world's GDP. Canada's three largest banks, the Royal Bank of Canada, Scotia Bank, and the CIBC, represent 80% of the banking assets in Barbados, Grenada, and the Bahamas. Canada has just 2% of the world's GDP, but 80% of its banking assets are in these three tax havens in the Caribbean.

That is not all. In the eight other tax havens that make up the Eastern Caribbean Currency Union, Canadian banks own 60% of banking assets. Canada is not an economic superpower, but it is a superpower in tax havens.

As social democrats, we cannot accept that. There is no social justice without tax justice. There is no justice at all when the financial sector hides its money in the Caribbean and ordinary people are left paying the bill. Ottawa is allowing that to happen and at the same time is cutting transfers. Left with a shortfall, Quebec is making cuts here and there, while Quebeckers made it clear in poll after poll during the recent electoral campaign in Quebec that their priorities were health and education.

In the meantime, bankers continue to grow their billions of tax-free dollars in the sunny Caribbean. This is not illegal because the government has introduced no provisions in six budget implementation bills to prevent it. For this reason alone, everyone in the House should vote against this bill. That is what the Bloc Québécois is going to do.

However, this bill also contains some good measures. It will establish pay equity at the federal level, both for the government and businesses operating under its jurisdiction. It is about time that Ottawa moved into the 21st century, especially since John Turner's government announced this measure in 1984, or 34 years ago.

I will now speak to the issue of consumer protection in banking, which is addressed in Bill C-86. We have to acknowledge that the regime proposed by Bill C-86 is a big improvement over the mess proposed two years ago in Bill C-29. I have to say that I am proud of the work that we did to make the government reconsider and go back to the drawing board.

The Liberal government trampled over Quebec consumers to accommodate Bay Street. I remind members that Quebec is the most advanced society in North America when it comes to consumer protections. The Quebec government sets the strictest guidelines to ensure that consumers are not swindled. This was one legacy left to us by Lise Payette, who passed away last month.

Bill C-29 sought to eliminate all of the safeguards that protect ordinary people but upset rich Bay Street bankers, including measures that ban misleading advertising and hidden fees, those that prevent unilateral changes to contracts, and those that prohibit banks from increasing the maximum liability for unauthorized credit card charges to more than $50.

The Quebec act provides for a simple, free and legally binding recourse mechanism, which is the Office de la protection du consommateur. This organization defends ordinary people rather than profiteers and has the ability to initiate class action suits so that David does not have to go up against Goliath alone. Ottawa wanted to eliminate all this, usurp all the power and use it to give the banks a nice big gift of vague requirements and non-existing recourse—essentially a paradise for bankers.

I will say that Bill C-86 is not as blatant an attack as Bill C-29 was. The obligations that the government is imposing on banks are real obligations. They are not written in the conditional tense as mere suggestions, as we saw two years ago.

The government is much less explicit about its desire to stifle Quebec and set aside its provincial Consumer Protection Act. It has eliminated the infamous clause about federal paramountcy. It seems the two regimes will be able to coexist. I say “it seems” because whether that will really happen is unclear. That is why this needs to be studied in greater detail.

With regard to consumer protection, the federal act has one massive shortcoming: recourse. In Quebec, the process is simple. If someone feels their bank has misled them, they can complain to the Office de la protection du consommateur, a consumer protection bureau that will investigate and, if necessary, take the case to court. There is no cost to the complainant, and the government helps the consumer assert their rights. That is not what Bill C-86 does. The consumer will have to contact the banking ombudsman, a kind of mediator who makes recommendations but has no actual power and, moreover, is paid by the banks. Would consumers trust a judge they knew was in the bank's employ? Of course not. What we needed was a government institution, not an employee of the bankers' association.

If the bank does not listen to the recommendations of its ombudsman, what other recourse do clients have? They can take the case to federal court alone and at their own expense. Does the government really think that a client who is charged $50 in hidden fees is going to take the case to federal court alone and deal with his or her bank's army of lawyers? Consumer protection is new in federal law. It would be in the banks' interest to limit the scope of their obligations as much as possible. We can be sure that they will do everything in their power to ensure that the case law does not come down too hard on them. They will fight. Taking a case to the Supreme Court can cost up to $1 million. No one is going to subject themselves to that to recover $50 in fees. The remedies contained in Bill C-86 are ill suited for an area like consumer protection, where it is often a matter of many small amounts of money.

Also, although the bill imposes obligations on banks, it does not provide any real recourse for clients, which means that the obligations may be more theoretical than real. Here is what I expect will happen. Since clients who have been shortchanged will not have any real recourse at the federal level, they will continue to turn to the Office de la protection du consommateur du Québec. That organization will take on the case and the banks, as they have always done, will defend themselves by claiming that they are above Quebec laws. In 2014, the Supreme Court ruled in a case such as this. It found that the Quebec laws applied to banks and that they could not claim to fall exclusively under federal jurisdiction. However, the Marcotte ruling is a subtle one. One must read between the lines. Basically, what the court said was that banks are subject to Quebec law because the federal Bank Act does not include a comprehensive and exclusive consumer protection regime.

Would the court have reached the same decision if Bill C-86 had been passed? Would it have found that what we are debating here today is a comprehensive and exclusive regime? Incidentally, “exclusive” means that it excludes the application of Quebec's laws. I do not know. No one knows. That is why this legislation needs a detailed study, and not a quick glance as part of an omnibus bill. There is a real risk that Bill C-86 will eliminate the simple, free and binding recourse mechanisms we have in Quebec, and replace them with virtually pointless mechanisms. This will give the Toronto-based banks what they have always wanted: the privilege of being above the law.

To support Bill C-86 without understanding its impacts is tantamount to gambling with consumer rights in Quebec. It would be irresponsible. That is why I would like to move the following amendment to the amendment: That the amendment of the hon. member for Carleton be amended by deleting all the words after the words “other measures” and substituting the following: but that it be split and that clause 10 introducing the financial consumer protection framework be now referred to the Standing Committee on Finance before second reading.

Second ReadingBudget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 1:30 p.m.
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Conservative

Gérard Deltell Conservative Louis-Saint-Laurent, QC

Mr. Speaker, we have come together this afternoon to discuss Bill C-86, budget implementation act, 2018, no. 2. Simply put, for anyone listening, this debate is about the bill that implements the principal measures of the budget.

This debate is vital to Canadian democracy and crucial to ensuring that Canadian taxpayers know how their money is being spent. Unfortunately, closure has been invoked on this debate. Three years ago, the government told Canadians that it was committed to doing things differently, that it would never use closure, and that it would not introduce huge bills like this one. It is doing the exact opposite. Closure has been imposed over 50 times. This bill is not just 10 paragraphs long; it has 858 pages. It is what is known as an omnibus bill. Bill C-86 contains provisions dealing with labour code standards, for instance, and other things that have nothing to do with the budget. The Liberal way is to say one thing during the election campaign and do the opposite once they are in power.

Furthermore, when you look at Canada's budgetary situation, you see that it is exactly the opposite of what the Liberal Party had promised, with hand over heart, to win Canadians' trust. The Liberals did have their trust, but unfortunately they have squandered it.

Keep in mind that the Liberal Party promised to run small deficits for three years before returning to a balanced budget in 2019, which miraculously happens to be an election year. The Prime Minister came up with an interesting economic theory. During an interview with CBC, he said that budgets balance themselves, implying that deficits do not exist. I checked with every economic school of thought in the world and aside from the current Prime Minister of Canada, there is not a single serious economist who thinks that budgets balance themselves. The Prime Minister may see rainbows and unicorns when he looks at the budget, but people who know how to count certainly do not.

If budgets balanced themselves then we could expect the budget to be balanced in 2019, but the opposite is true. For three years the Liberals have been running deficits that are two to three times higher than expected. Today, 2019 is just around the corner and the government has absolutely no idea when it plans to return to balanced budgets.

It is certainly not for lack of trying on our part. Just today the official opposition finance critic, the hon. member for Carleton, questioned the Minister of Finance five times. He was in the House, where he could have clearly stated when the government plans to return to a balanced budget.

Our question was crystal clear: When will Canada get back to a zero deficit? We asked him that, not once, not twice, not three times, but five times in a row and, unfortunately, the Minister of Finance dodged the issue. Maybe the Minister of Finance will dodge the issue, but he cannot dodge reality, and certainly not his responsibility to Canadian taxpayers.

Why are deficits bad? They are bad because, ultimately, our children and grandchildren will have to pick up the tab. Running deficits is irresponsible because that is not our money.

I know that the Minister of Families, Children and Social Development is a credible person. He is an honourable man whom I respect and hold in high esteem. The problem is the government saying that it is thinking of children in this budget. Sure it is thinking of children—it is forcing them to foot the bill once they hit the job market. That is the Liberal Party way, but that is not how a responsible government that got itself elected by promising small deficits should behave.

We all remember how the Liberals went on and on about making the rich pay more taxes.

The famous 1% of Canadian taxpayers will get hurt by the Liberal government. Oh yes, looking at the results and the figures, since those guys were elected three years ago, the famous 1% have not paid more taxes, but more than $4 billion less. That is the Liberals' economy. That is the Prime Minister's economy. That is the way those guys were elected, by saying, “No deficit in 2019 and the 1% will pay more”. They said that, but that is not the reality today.

Members will also recall that the Liberals promised to run very small deficits to stimulate the economy while investing billions of dollars in infrastructure. Once again, the results are not there. In one of his most recent reports a few months ago, the Parliamentary Budget Officer indicated that there was no infrastructure plan. It is not the official opposition, members of the NDP or the Conservative Party of Canada who said that. Everything that has been done has boosted the economy by only 0.1%, so that is just one more promise this government has broken.

The Liberal government has completely lost control of the public purse. People need to understand something. It is only natural that government spending will go up every year for two reasons: population growth and inflation. If the population increases, the government has to provide more services, which costs more money. If inflation rises, the government has to spend more to prevent a freeze down the road. That is fine. However, the government did not take into account the combination of these two basic factors in its calculations. It has spent three times more than it should have based on the combination of inflation and population growth. Simply put, the Liberals do not know how to count and they are spending recklessly.

That brings us to the troubling signs we are seeing today. First of all, investments in Canada are in free fall, dropping by 5%. If we break down this sad and alarming reality further, we discover that unfortunately, thanks to the current government's ineptitude, combined with the new U.S. administration's solicitous approach to managing and stimulating investment, Canadian investment in the United States is up 65% and U.S. investment in Canada is down 52%.

The two indices that we use to determine whether the Canadian economy is getting sufficient stimulation from an investment standpoint suggest that Americans are investing less in Canada and Canadians are investing more in the United States. That is bad news on two counts.

Another concern is related to the announcement made by the Governor of the Bank of Canada. I am not referring to the Governor General, although former governors general have been in the news lately, some for debatable reasons and others for very bad reasons. The current Governor of the Bank of Canada, Stephen Poloz, made it clear that playtime was over last week when he announced that after modest interest rate hikes, we should get used to the idea of a minimum interest rate of 3%, or potentially higher.

This warning sign should to be taken into account when major budget checks or manoeuvres are being done, but unfortunately, this government is not doing anything about it. It does not care. Given that we will be paying $24 billion in interest on our debt this year alone, and that figure could soon rise to $35 billion and beyond, it seems obvious that we need to curb our spending. We need to stop spending three times more money than the inflation rate combined with population growth allows. We need to ensure sound management of public funds.

Canadians will have to contend with the Liberal carbon tax next year. The Liberals boast about their lofty principles. They are always ready to work with the provinces as long as the provinces work with them and say exactly what they are saying. When the provinces want nothing to do with the Liberal carbon tax, it is imposed on them by the government.

That is not how federal-provincial relations should be conducted. We must work together. If by chance the provincial governments want to have a carbon tax or participate in the carbon exchange, it would be their choice. However, if they are not interested and decide to opt out, the federal government will twist their arm. That is not the right approach.

The government is obviously talking out of both sides of its mouth. It says that there must be a price on pollution, which is their new slogan, but it is not for everyone. Under the Liberals, the big emitters will get a discount, not of 5%, or 10% or even 50%, but of 90%.

These are the same people who said that the rich would pay more, when in fact they are paying less. These are the same people who said that they want to tax carbon and polluters, except for the biggest polluters.

In light of this, we will be voting against the bill and exposing the Liberal government's contradictions.

Second ReadingBudget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 1:30 p.m.
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Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism (Multiculturalism), Lib.

Gary Anandasangaree

Mr. Speaker, of course, each and every committee operates on its own and its membership decides what to do and what kind of study to undertake. Therefore, I cannot speak to the particular point my friend opposite brought up.

Certainly, there will be ample opportunity, once Bill C-86 goes to the finance committee for study. If the finance committee requires additional support from other committees, they may well ask for that.

However, at this point, it is important that the bill goes to committee and a full and comprehensive study takes place before it comes back here.

Second ReadingBudget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 1:15 p.m.
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Gary Anandasangaree Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism (Multiculturalism), Lib.

Mr. Speaker, I am pleased to rise to speak in support of Bill C-86, the second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

Let me start by acknowledging that I am speaking on the traditional land of the Algonquin peoples.

On this very auspicious day, I would like to wish all those who are celebrating Diwali a very happy Diwali. I hope all my constituents and all those in Canada who celebrate this very special occasion are able to see the light and overcome darkness.

Speaking of the light, the last three years the Liberal government has shone quite a bit of light on our country. A number of remarkable achievements are worthy of note, in particular on trade. We have set Canada on a course that will enable Canada to be one of the freest and most open trade markets anywhere in the world. These trade agreements include: the Comprehensive and Economic Trade Agreement between Canada and the EU, also known as CETA; the Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada and countries in Pacific Asia; and of course most recently, the United States-Mexico-Canada agreement with our North American allies. This means millions of new markets, billions of new dollars in trade and countless opportunities for Canadians today and for the future.

This unprecedented access to new and emerging markets will create unimaginable global opportunities for all of us. I know my constituents were quite worried earlier in the year about getting a good deal under the USMCA. They were worried about Canada giving in too much or Canada being shut out altogether. That is no longer the case. For close to 18 months, our negotiators have worked day and night to get not any deal, but a good deal for Canada. I want to thank and acknowledge our Minister of Foreign Affairs and her entire team for their tireless work. She has indeed made us all very proud.

There is more good news. Every time I meet employers, one of the issues they bring to my attention is the difficulty finding the people to fill good jobs in Canada. They complain that they are unable to hire people and retain them, regardless of the money they pay, and oftentimes these are high-paying jobs.

Right now, we have historically low rates of unemployment. In fact, it is the lowest it has been for the last 40 years. Our government has helped propel our economy forward, making it the fastest growing economy among G7 countries and one of the fastest in the world. This has led to the creation of over a half a million jobs since we were elected in 2015. Of course there is more good news for small business, as our tax rate will go from 11% to 9% as of this January.

There are many important initiatives in the budget, and I could talk about all of them. In particular, the establishment of the status of women as a full ministry, the implementation of pay equity legislation, along with legislating gender budgeting, are critical parts of our government's agenda. I know many of my colleagues have spoken about it extensively.

Today, I want to highlight two very important things and focus on them. First is the issue of poverty reduction. The second is the price on pollution.

Let me start with poverty reduction. Poverty is linked to a number of different socio-economic outcomes in our society. Whether the longevity of our life, or success in education or success in the workplace, poverty is one of the central determinants of success or limitations in our society. Our government believes that everyone deserves a real and fair chance of success. That is what drives us to grow the middle class and support people who are working hard to join it.

Canada's first-ever national poverty reduction strategy sets new poverty reduction targets and establishes the federal government as a full partner in the fight against poverty. It also builds on the progress we have made together so far. These include the introduction of the Canada child benefit in 2015 and, most recently, the indexing of the CCB. This has lifted over 300,000 children out of poverty. My riding of Scarborough—Rouge Park alone has been given $76 million in just the last year.

The second is the reversion of the previous government's changes to the guaranteed income supplement and old age security, which basically restores the age of retirement from 67 to 65 years old and makes benefits for seniors more generous, lifting 100,000 seniors out of poverty each year.

The launch of Canada's first-ever national housing strategy last year will not only create 100,000 new housing units and renew and renovate more than 300,000 existing units, it will also remove more than half a million Canadians from critical housing need.

Since 2015, our government has been working hard to lift Canadians out of poverty with the help of programs like the CCB, the top up to the GIS and the Canada workers benefit. By 2019, the government's investments are expected to help lift over 650,000 Canadians out of poverty. The poverty reduction strategy, called “Opportunity for All: Canada's First Poverty Reduction Strategy”, is a bold vision that will build a Canada where every Canadian has a realistic chance to succeed.

“Opportunity for All” is a long-term strategy that builds up significant investments that the government has made since 2015 to reduce poverty altogether. There are three pillars to this strategy: first, dignity, lifting Canadians out of poverty by ensuring everyone's basic needs are met; second, opportunity and inclusion, helping Canadians join the middle class by promoting equality of opportunity and full participation in every aspect of our society; and third, resilience and security, supporting the middle class by protecting Canadians from falling into poverty by supporting income security and resilience.

I want to note one aspect of our government's agenda is the anti-black racism aspect, and I would be remiss if I did not address it. It is part of the work I do as the Parliamentary Secretary to the Minister of Canadian Heritage.

Our government understands that any plan for reducing poverty must also address systemic barriers, such as racism and discrimination, that hold some Canadians back. By removing barriers and levelling the playing field, all Canadians will be able to reach their full potential. To help address systemic barriers of racism, our government is launching, and is currently in the process, consultations across the country, which will establish a national framework for anti-racism. We will bring together experts, community organizations, citizens, interfaith leaders and others to work out a national strategy. A first step toward this is the recognition that anti-black racism is at the core of the discussions among other forms of racism and discrimination.

The second aspect I want to highlight is the price on pollution. There is no question that we have a problem with our environment. The disasters we have seen for the last number of decades seem to be getting worse every year. Whether it is the floods in Toronto or the wildfires out west, we see the challenges of climate change first hand.

Last year for Canada's 150th birthday, I had the opportunity to visit St. Anthony, Newfoundland, a beautiful part of our country where icebergs are prevalent. One thing the local folks told me was that the number of icebergs really spoke to the reality of climate change. We know the temperature is rising and it is hurting the environment and limiting our way of life, particularly for indigenous people. That is why it is important that this government address the issue of climate change by pricing pollution and ensuring that those who pollute pay a fair share to ensure pollution no longer is free. This is not a free commodity that Canadians or industry can take for granted. If people pollute, they must pay. That is the principle behind our pollution pricing plan.

With that, I would like to once again reiterate my support for Bill C-86.

Second ReadingBudget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 12:25 p.m.
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Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Mr. Speaker, I thank my colleague from Alberta for his question. Before answering, I would like to look at the premise for his question.

First, he said that this is a tax and that the revenues will go into government coffers. That is not at all the case.

What we announced is very clear and I mentioned it in my speech. I know that the hon. member listened carefully to my comments. I clearly explained, as is set out in black and white in Bill C-86, budget implementation act, 2018, no. 2, that all revenues from pollution pricing will be returned to the provinces and territories where they were collected.

I am sorry for taking a little too much time to answer the question, but I guarantee the member that it is not a tax. It is a pricing measure that we will subsequently return to the province or territory where the tax was applied.

Second ReadingBudget Implementation Act, 2018, No. 2Government Orders

November 6th, 2018 / 12:15 p.m.
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Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Mr. Speaker, I would first like to inform you that I will be splitting my time with the hon. member for Guelph.

I am pleased to rise today to speak to Bill C-86, the budget implementation act, 2018, no. 2. I want to talk about what I consider one of the most important aspects of the bill, which is the environment and climate action.

Canadians know that pollution has a price. Pollution has an impact on the health of our communities, the strength of our economy and the well-being of Canadians. The evidence is clear. There were floods in my region, the Outaouais, and more specifically in my riding of Hull—Aylmer and the neighbouring riding of Gatineau. Forest fires are causing more and more devastation, and storms are becoming increasingly violent. I repeat: six weeks ago, six tornados hit my riding, and they caused a lot of damage. This was unprecedented.

Climate change is real, and its costs are high. Studies show that climate change is expected to cost our economy $5 billion a year by 2020. Canadians want polluters to pay for this. This is the right thing to do for our children and grandchildren, which is why our government has promised action.

Putting a price a pollution is an effective way to reduce greenhouse gas emissions and help Canada meet its international commitments with regard to this extremely important issue. This means that the price of goods and services will reflect the amount of greenhouse gases that are associated with them. The more we pollute, the more we pay. It is simple. The less we pollute, the more we benefit.

Our government sincerely believes that it is important for business owners and businesses to make more money, but if they pollute, they have to pay. That is all. It is important that our economy better reflect the true cost of pollution and that is what this carbon pricing will do.

It is in that context that the federal government developed the pan-Canadian framework on clean growth and climate change together with the provinces and territories and in consultation with indigenous peoples.

This plan includes a pan-Canadian approach to pricing carbon pollution and measures to reduce emissions across all sectors of the economy. It gives the provinces and territories the flexibility they need to use the system that suits them best, either a price-based system, or a cap and trade system, or a combination of both.

Our government has also committed to implementing a backstop in every province and territory requesting one, as well as in any province that does not adopt a regime consistent with the pan-Canadian framework. I would remind members that the provinces and territories had until September 1 of this year to announce their intentions. Our government was very transparent. We stated from the outset that the federal backstop would have two components. First, there is a charge on fossil fuels such as gas, diesel, natural gas or oil. Second, there is an output-based pricing system for large industrial emitters.

I am very pleased that several provinces have developed their own pricing system for carbon pollution. As Canadians, all of us must take action to reduce pollution, and these governments will be able to do so with a plan that is in keeping with their regional reality. To maintain the pan-Canadian approach to pricing carbon pollution, the federal carbon pollution pricing system will apply as planned in the other provinces and territories.

We recently announced the next steps in our environmental action plan. Some provinces have voluntarily decided to adopt the federal system to varying degrees and work hand in hand with Ottawa. Governments that did not implement the necessary measures will have to comply with the federal system. That is unfortunate, but we made our intentions perfectly clear to the provinces.

Let me be quite clear: in all cases, direct proceeds from the federal price on pollution will flow back to the provinces and territories in which they were collected. Let me repeat that: in all cases, direct proceeds from the federal price on pollution will flow back to the provinces and territories in which they were collected. I really want to emphasize that, because putting a price on carbon pollution is not about filling the federal government's coffers; it is about encouraging cleaner growth and a more sustainable future across this great land.

Provincial and territorial governments that joined the fight against climate change by voluntarily adopting the federal system will receive the direct proceeds and can use that money as they wish. For the four provinces that chose not to put a price on pollution, the federal government will put most of the direct proceeds back in the pockets of families in those provinces.

The government is also in the process of developing options for direct support to sectors of the economy that will be particularly affected in backstop jurisdictions. That includes small and medium-sized businesses, municipalities, non-profit organizations and indigenous communities.

Direct proceeds from the carbon price collected in New Brunswick will remain in New Brunswick. Direct proceeds collected in Ontario will remain in Ontario. Direct proceeds collected in Manitoba will remain in Manitoba, and direct proceeds collected in Saskatchewan will remain, as one might guess, in Saskatchewan. The climate action initiative payments made to individuals and families will help offset the increased costs associated with the price on pollution and will reward families that make cleaner, more sustainable consumer choices.

Since residents of small communities and rural regions have higher energy requirements and more limited access to alternative transportation options, they will receive a supplement to the base amount of 10%. Implementing this formula requires legislative changes.

Bill C-86, the budget implementation act, 2018, no. 2, would give us the tools we need to implement this important initiative. The bill proposes the changes required to enable the Canada Revenue Agency to offer this rebate to eligible taxpayers when they file their income tax returns.

In closing, we must all do our part to reduce greenhouse gas emissions. The pricing of carbon pollution is the most effective and efficient means of achieving that. For that reason, I am pledging my support for this bill and these measures, which I truly and very enthusiastically support.

The House resumed from November 2 consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

November 6th, 2018 / 11:25 a.m.
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Diana Sarosi Policy Manager, Oxfam Canada

Thank you so much.

Dear committee members, thank you for the opportunity to present Oxfam's views on Bill C-86.

At Oxfam Canada, we put women's rights and gender justice at the heart of everything we do, both here at home and in our work with some of the poorest communities across the planet. As such, we know that women are vastly overrepresented in the bottom rank of the economy. Nowhere in the world do women earn as much as men for work of equal value. Women shoulder three to 10 times more unpaid care work than men do, and they are disproportionately represented in the lowest paid and least secure jobs.

This is true in Canada as well. Women make up 70% of part-time, casual and temporary workers, and 60% of minimum wage earners. The gender wage gap persists, hovering at 32% on average, and as high as 45% to 55% for indigenous women, racialized women and women with disabilities. Women do two to three times more unpaid care work than men do, and the labour force gap between men and women remains close to 10 percentage points.

Federal budget 2018 saw some major investments and measures meant to advance gender equality. Bill C-86 now ensures that the budget announcements translate into legislative action. I would like to offer thoughts and recommendations for two acts covered in the bill: the new department for women and gender equality act and the Canadian gender budgeting act.

There are many more measures in the bill I could address; however, the nature of omnibus bills is such that it makes it difficult for stakeholders to review all elements in detail and provide substantive comment. This has serious potential to stifle democratic engagement and should be considered in light of the government's desire to meaningfully engage civil society.

On the department for women and gender equality, Oxfam congratulates the government for turning Status of Women into a full department. Canada has a ways to go to close the gender gap, and a full department mandated to do just that is a significant step in the right direction.

We are pleased that the department's mandate includes a strong intersectional lens, recognizing the full range of diversity in sexual orientation and gender identity or expression. At the same time, we must not lose sight of women's particular challenges and barriers in fulfilling their social, political and economic rights. We hope to see the department retain the strong focus on advancing women's rights.

Considering the current political climate around the world, this legislation is timely. The women's rights movement remains underfunded and too many organizations are scrambling to provide services, without having access to core funds to sustain their operations. Project-by-project funding is not sustainable in delivering quality programming. Whether advocating in favour of comprehensive sexual health education in Ontario, or standing behind women's rights advocates in Saudi Arabia, a department that will dedicate resources to supporting the strength of the women's movement is an excellent investment. We encourage the new department to consider how it can learn from and help Canadian organizations connect to the global women's rights movement, recognizing the universality of challenges women face the world over.

At the same time, the department must continue to build the capacity of all departments to deliver policies and programs based on gender analysis, and work to advance gender equality. While capacity is growing, it is important that gender analysis is grounded in the reality of women, and particularly the most marginalized ones. It is important that capacity building includes hearing from a diverse range of women and ensuring they have access to policy-making processes.

It is for these reasons that Oxfam would like to see a significant increase in the department's resources, to an amount of $100 million a year, with a significant amount of the department's budget going directly to resourcing the women's rights and feminist organizations, and core funding for these organizations.

On the Canadian gender budgeting act, Canada is long overdue for gender-budgeting legislation. Oxfam applauds the government for finally legislating gender budgeting, ensuring that no budget plan will ever be tabled without a robust gender analysis of all the measures in the plan.

We are pleased that the gender analysis of the budget will be made public and that gender budgeting will apply to both the taxation as well as the spending side of the budget, including transfers to other levels of government.

We recognize that it will take some time to meet the gold standard of gender budgeting. We therefore recommend that the government work closely with civil society to strengthen its capacity and ensure greater participation of women in all their diversity in the budget process. The government should strive to apply a feminist approach to gender budgeting and ensure that women's voices and experiences are at the heart of budget and decision-making processes. Gender budgeting is not merely a technical tool to assess differential impacts but a means to promote gender equality in both process and outcomes. We call on the government to establish an advisory council on gender budgeting that includes diverse representation from women's rights organizations and non-binary persons.

I also want to remind committee members of the recommendations we made earlier as part of Oxfam Canada's budget submission. We hope the finance committee will also take leadership to ensure that pre-budget consultations strive to advance gender equality. This can be done by ensuring that at least 15% of witnesses are women's rights organizations and by providing guidance to encourage that all budget submissions to do their own gender-based analysis.

In closing, I would like to highlight that Oxfam endorses the views presented earlier today by the Equal Pay Coalition on the pay equity act.

Thank you again for the opportunity to present today.

November 6th, 2018 / 11:15 a.m.
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Suki Beavers Project Director, National Association of Women and the Law

Good afternoon, and thank you for the opportunity to speak on the subject matter of Bill C-86 on behalf of the National Association of Women and the Law.

I think most of the members of this committee are familiar with NAWL, which is an incorporated, not-for-profit feminist organization that promotes the equality rights of women in Canada through legal education, research and law reform advocacy. We work on our own and in collaboration with other women's and equality-seeking organizations to impact public policy on a wide range of issues.

I'd like to begin my comments today by congratulating the government for prioritizing action to advance women's rights and gender equality in Bill C-86, particularly in relation to division 18, which establishes the department for women and gender equality; the pay equity act, included in division 14; and the Canadian gender budgeting act, included as division 9.

I'll just say a few words very briefly on the pay equity measures that are included in Bill C-86. We've been calling for pay equity legislation for decades and simply want to reiterate that pay equity is a human right and the government has international and domestic obligations to eliminate the pay equity gap. However, as NAWL is a member of the Equal Pay Coalition that you heard from earlier this morning and we support all the positions taken by that coalition, I'm going to focus my comments today on the establishment of the department for women and gender equality.

We welcome the creation of a full department. Feminist groups have been calling for the elevation of Status of Women to a full department for decades now. We applaud the decision to include a strong preamble in this act that highlights Canada's international and domestic obligations to respect, protect and fulfill the rights of all women in Canada. The retention of women as a primary focus of this elevated department is an important recognition of the ongoing impacts of the historical and systemic sex-based discrimination that women in Canada continue to experience in all aspects of our lives. We applaud the explicit adoption in this bill of an intersectional feminist analysis and approach to advancing substantive gender equality for women in all of our diversity.

I want to turn now, though, to our two key points, which are about the importance of ensuring there will be an adequate and appropriate funding guaranteed to ensure the full implementation of the gender equality components included in Bill C-86, which includes funding for the independent women's movement and the need to ensure more meaningful consultation in the law-making process with independent women's groups.

As members of this committee will no doubt be aware, after the change in the mandate of Status of Women, which was introduced by the previous federal government, NAWL and many other feminist and equality-seeking groups were defunded. Many, including NAWL, were forced to close their operations. These were very challenging times for feminist and equality-seeking groups. We faced not only defunding, but prohibitions on advocacy and challenges to our charitable status. Many feminists and equality-seeking organizations faced similar fiscal and organizational challenges and the landscape of feminist and social justice work was eroded significantly, with severe consequences for women and equality, including the dismantling of significant achievements and knowledge.

I reiterate this because it is not just history. The impacts of those cuts remain significant today. However, the good news is that we are beginning to recover and rebuild our capacities and our feminist networks, but this will take time and investment—and I focus on investment. Many organizations, including NAWL, remain underfunded. We cannot yet meet the demands for our feminist legal expertise, or that are required to rebuild feminist legal capacities and advocacy in other feminist organizations, and rebuild our coalitions.

We're very appreciative of the project funding that Status of Women Canada is now providing and the new capacity-building grants that have just opened up for women's groups; however, these do not and cannot replace the need for a restoration of core funding to independent women's groups. We urge the new department for women and gender equality to include core funding in its fund modalities, as was recommended in the 2005 report of the FEWO committee, “Funding through the women's program: Women's groups speak out”.

On the topic of funding, there is no question that this new department must receive additional funding to implement what is clearly an expanded mandate. This is not a change in name only. This is a new mandate.

The gaps in funding and capacity of women's groups, when coupled with the incredibly short timelines for engagement, make it nearly impossible for meaningful engagement in law-making, including in relation to this bill. For example, as you all know, Bill C-86 was tabled on October 29. We received an invitation to appear before this committee on Friday afternoon, and here we are this morning, on Tuesday. This is clearly an insufficient period of time to analyze such a complex bill. Even if the legislation to establish the new department had been tabled on its own, rather than as part of this really complex omnibus bill, this would have been insufficient time.

On the issue of meaningful consultation, we are also advocating for the establishment of an independent advisory body comprising groups that lead on critical women's rights issues and gender equality issues to provide advice and feedback to the department of women and gender equality.

I'd like to finish by saying that it's been a pleasure to appear before the FINA committee again, after more than a decade. We look forward to this committee's facilitating of the reinstitution of core funding for feminist and equality-seeking groups and to an expansion of the time frames and the mechanisms provided for engagement in law-making processes. Both are required for meaningful engagement by feminist and equality-seeking groups in law-making processes such as this one, which are critical for the future of our country.

Thank you.

November 6th, 2018 / 11:10 a.m.
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Bill Schaper Director, Public Policy, Imagine Canada

Thank you, Mr. Chairman and members of the committee, for giving us the opportunity to be here today.

As the national umbrella for the charitable and non-profit sector, our comments are limited to those portions of Bill C-86 that propose changes to how charities are regulated through the Income Tax Act. Clause 17 of the bill proposes to place a renewed and welcome emphasis on registered charities fulfilling a charitable purpose with specific ramifications for an organization's public policy activities.

As members of the committee may be aware, much of how charities in Canada are regulated dates back to laws passed in the era of Queen Elizabeth I and judicial interpretation of those laws in the centuries since. Organizations can be deemed charitable if they fall under one of the four so-called heads of charity and if what they do furthers their charitable purpose.

The Income Tax Act establishes the conditions under which charities can be registered for the purposes of issuing tax receipts to donors and for other benefits that registered status provides them. The Canada Revenue Agency, through the charities directorate, enforces the requirements of the ITA.

The system is far from ideal as we try to apply 400-year-old rules to modern circumstances. Over the years, the Income Tax Act and guidance issued by the CRA have attempted to keep up. The result has been increasingly complicated attempts to define and establish parameters for the individual activities in which charities might engage. We have guidance on issues as broad as fundraising, investing assets, business activities and until now, so-called political activities by registered charities.

In many cases, ITA provisions and the associated guidance have moved away from the jurisprudence that focuses on organizations fulfilling a charitable purpose and has placed an emphasis on whether individual activities taken in isolation are themselves charitable. This leads to inconsistencies between the common law and the Income Tax Act. Bill C-86 specifically supports charities' engagement in public policy work.

Charities have long engaged in public policy development and dialogue. They're often in a unique position to recognize the impacts of government policies, or the lack thereof, on the populations they serve. Because they are legally required to work in a non-partisan way towards purposes that are deemed for the public benefit, they play a key role in advocating for change in that they can take a long-term view of those issues.

A number of significant policy advances achieved under governments of all stripes have been due, in part, to charities identifying issues before they become mainstream, proposing solutions and advocating for change. Just a few examples include the work that MADD has done in shifting public and legislative attitudes towards impaired driving. Environmental charities worked with the Mulroney government to successfully combat acid rain. The work done by the Canadian Cancer Society, the Heart and Stroke Foundation and many other health charities led to workplace smoking bans and other reductions in exposure to second-hand smoke. Charities were also at the forefront advocating important social policies like the original national child benefit or registered disability savings plans.

A few years ago, a focus was placed on charities' involvement in public policy debates, specifically, their so-called political activity. New reporting requirements were implemented and an audit program was announced in a federal budget and carried out by the CRA. This created uncertainty for those charities who play a role in working with governments on public policy issues.

Last year, the consultation panel appointed by the Minister of National Revenue made a number of recommendations. Included in those was one to remove the distinction between the types of policy work carried out by charities and to remove the hard limit on portions of those activities. Bill C-86 would legislate the changes recommended by the panel.

We know that there are concerns in some quarters about making these changes, so we want to emphasize a few points. Charities must still work exclusively to fulfill a charitable purpose, that is, a purpose that meets the requirements of the common law and is in the public benefit. Bill C-86 just allows them greater flexibility in how they do so.

Organizations that have a political purpose remain ineligible for registration as charities. The CRA has always applied this test, rooted in common law, in registration decisions and will continue to do so. Organizations that exist solely to seek changes to laws and regulations would fall under this category. Finally, charities must still operate in a non-partisan manner.

We note these changes are also in line with reforms that have already occurred in countries like the United Kingdom, Australia, Ireland and New Zealand, all of whose charity laws share the same origins as ours and all of whom have undertaken fundamental and wide-ranging modernization efforts in recent years.

We support the Income Tax Act changes proposed in Bill C-86 as they pertain to registered charities and we hope that it is only the first step in what we believe is a much-needed conversation about modernizing charity law and regulation in Canada more broadly.

Thank you.

November 6th, 2018 / 11 a.m.
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Toby Sanger Executive Director, Canadians for Tax Fairness

Chair and members, thank you very much for inviting us to discuss Bill C-86.

There are many positive initiatives in this bill that we are very supportive of, but we are concerned that too many seem half finished and are not fully developed.

We're glad to see the Canadian gender budgeting act initiative, but the proposed act is just two pages long and the legislation is very general. The reports and the analysis on gender and diversity impacts of the budget of tax expenditures and programs could be so vague and general as to be not particularly meaningful.

I'm also very glad to see legislation for climate action incentive payments to households introduced and the fact that the government is recycling carbon tax revenues in a progressive manner, which is something I've advocated for a decade. I'm very glad to see that. However, there's nothing in the legislation that sets the annual payment amounts or ties them to the revenues raised.

I'm also glad to see the poverty reduction act, but it may be one of the shortest acts ever. I counted up the words. I think there are 51 words. It identifies aspirational targets on poverty reduction, but no definition of poverty. I know the government has a definition of poverty, but it would be good to introduce some of this into the legislation.

At the same time, Bill C-86 includes many amendments to a wide range of taxation and financial industry legislation. These are complicated areas with significant implications and should be accorded adequate time for review.

We appreciate the targeted amendments in part 1 to prevent aggressive international corporate tax avoidance in specific circumstances, but we will also need additional far-reaching measures to reduce aggressive tax avoidance and evasion.

The bill includes 65 pages with amendments to the Bank Act and related acts on financial consumer protection. The issue of protection of financial consumer information is certainly in the news and a reasoned discussion on these issues would certainly be welcome. This section of the bill also includes a provision for the protection of whistle-blowing. One concern is that the definition of “wrongdoing” in this section may be too narrow and just applying to contraventions of the Bank Act and bank policies. There doesn't seem to be any guarantee of follow-up with these reports.

Bill C-86 also includes corrections to previous omnibus budget bills. This indicates to me to a certain extent that pushing through large omnibus bills without sufficient due consideration isn't a wise thing to do, because mistakes can be made.

As you may know, Canada has the weakest corporate transparency regime among the G20 and this makes us a haven for money laundering and tax evasion. I'm glad that this government appreciates the importance of having a registry of individuals with significant control of corporate entities to help prevent money laundering and other criminal activities. However, on pages 134 to 139 of the bill, the amendments to the Canada Business Corporations Act seem too limited and restrictive at this stage. The provisions in this section would result in information that isn't adequate, that could be unreliable because there aren't requirements for verification and may not be timely enough for law investigation and enforcement provisions.

Instead, the legislation should explicitly require corporations to make access available to reporting entities and other parties that require it for regulatory, legal and enforcement purposes—and I believe the committee is going to be reviewing the proceeds of crime legislation, or a report, later. There should be a provision for summary indictable offences and fines, not just criminal convictions. The registry framework also needs to be digital forward to increase efficiency and reduce the costs of compliance. Ultimately, we need a central public registry of beneficial owners for all corporate entities as has been established in the U.K.

In summary, there are a lot of positive and worthwhile initiatives in this bill, but our concern is that a lot has been crammed into one piece of legislation without enough time for reasoned review by the legislature and experts. We'd like to provide some more detailed submissions, maybe, to the committee on specific changes in particular to the Canada Business Corporations Act, if that's possible, later.

Thank you.

November 6th, 2018 / 10:55 a.m.
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Liberal

The Chair Liberal Wayne Easter

Okay, I think we'll call the meeting back to order.

We have panel two here. Sorry to disrupt the situation with votes.

As you know, we're studying the subject matter of Bill C-86, the budget implementation act, 2018, no. 2. We think we'll be able to hear from all the witnesses. Try to keep it to five minutes, if you could. It would be nice if we could get one round of questions in, at least one question from each of the parties.

The floor goes to Ms. Durdin, President and CEO, Canadian Credit Union Association.

Go ahead.

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

November 6th, 2018 / 10:55 a.m.
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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 at second reading stage of the bill; and

That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second 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 said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

November 6th, 2018 / 10:05 a.m.
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Director, Legislative and Environmental Affairs, Shipping Federation of Canada

Sonia Simard

There were consultations regarding the general concepts. In terms of what's happening with Bill C-86, it's obviously very difficult for the industry to keep up. The brief is the result of two days of work over the weekend.

Are all the members of my association aware of the details of the proposals? No. We had to do our best.

November 6th, 2018 / 10:05 a.m.
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NDP

Robert Aubin NDP Trois-Rivières, QC

Thank you. I'll try to be brief.

Ms. Simard, my first question is for you.

You probably work miracles at home. I was very surprised that you managed to prepare a report for us in such a short amount of time. You already answered my first question in your opening remarks. I was wondering whether you had time to address the whole issue. Obviously, the answer is no.

I'm sure that you have the authority to speak on behalf of the members of the association that you're representing. However, could you tell me the extent to which these people feel affected by Bill C-86 or are aware of what's happening?

November 6th, 2018 / 9:50 a.m.
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Robert Lewis-Manning President, Chamber of Shipping

Good morning, Madam Chair and members of the committee. I appreciate the opportunity to offer observations and early recommendations that pertain to certain sections of the most recent budget bill tabled last week.

The chamber has worked closely with government, coastal communities and other stakeholders on most aspects of the oceans protection plan, including critical work associated with protecting species at risk and the numerous conservation initiatives currently under way.

You are well aware, particularly after your recent committee trip to British Columbia, that marine transportation is critical to supporting Canada's international trade, and that a safe, competitive and predictable operating framework is good for Canadians, the Canadian economy and the many industries that drive that economy and rely upon marine transportation.

I'll speak to four elements of the proposed legislation, and some of it will be repetitive, namely the three that refer to authorizations under the Canada Shipping Act. I have more general comments with respect to the Marine Liability Act.

With respect to the Canada Shipping Act, Bill C-86 amends the act, and explicitly provides the authorization for the administration and enforcement of the act to other levels of government, including provinces and indigenous groups. If there is intent to delegate authorities to a province, for example, we would be concerned about the capability of a delegated authority to fulfill such a complex mandate and the increasing potential for a patchwork approach to administering Canada's supply chain.

The oversight of Canada's supply chain is managed nationally by the federal government, because it is complex, and there is a high degree of integration and reliance across transportation modes. This helps to ensure a predictable and competitive environment for Canadian businesses.

The draft bill also authorizes regulatory powers to protect the marine environment. This makes sense, and we understand and support the intent of this regulatory power. Notwithstanding that, we also have reservations about its implementation and the potential for associated regulations conflicting with Canada's commitment to international conventions, such as the United Nations Convention on the Law of the Sea. This may have also been a lost opportunity for seeking additional regulatory powers such as those to designate anchorages, not just regulate or prohibit such operations.

We have significant concerns about the regulatory power to prohibit the loading and unloading of a vessel, as it already exists under the Canadian port state control regime. It appears to be another mechanism with which to implement a moratorium on specific commodities through regulations or an interim order, and contradicts the objectives of providing a predictable supply chain.

Bill C-86 also authorizes the minister to make interim orders. Overall, this also makes sense, and there are many examples of when it could have been employed in the past. However, in its current form, this authority lacks appropriate guidance to the minister on its use, and has requirements to consult with other ministers on the science justification, for example.

In both cases of these relevant clauses, 690 and 692, there needs to be a requirement for compelling evidence and/or science that ensures that such regulations or interim orders are sensible, and that such action will not have adverse consequences to marine safety or marine protection.

With respect to the Marine Liability Act, Bill C-86 provides for changes to liability of the ship-source oil pollution fund for economic loss when property has not been impacted, creating a potentially unmanageable situation where claims for pure economic loss lack any sensible limits or guidelines.

The potential for unsubstantiated claims of pure economic loss could increase the exposure of the fund, and consequently the exposure of shippers, receivers and carriers, and potentially the economy as a whole, if the fund has to absorb that cost. Ultimately, this may not address the challenge it is aiming to resolve, and could result in increased costs, making Canada's supply chain less competitive. We just don't know at this point.

We believe that this aspect of the bill has not been subject to any consultation, could have significant and long-lasting impacts, and therefore should be delayed and properly examined. Despite our specific concerns that I've already mentioned, we acknowledge the positive amendments designed to enhance the flexibility to and timeliness for intervening when a pollution incident may be possible or imminent.

Commercial marine transportation depends on a predictable, global regulatory framework in order to plan and deliver a safe, reliable, responsible and cost-effective transportation solution. As Canada progresses with improvements to its pollution response, compensation and liability regimes, it should recognize that major changes to this regime need thorough analysis, dialogue with stakeholders, especially regulated industries, and sufficient time for protection and indemnity providers—insurers—to evaluate increased levels of exposure.

Marine transportation providers come in all shapes and sizes. There are numerous small Canadian commercial operators that may not even be aware of the changes as proposed, let alone be in a position to abide by them in short order and without the appropriate time to review their own operations and commercial practices.

Thank you, Madam Chair.

November 6th, 2018 / 9:45 a.m.
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Sonia Simard Director, Legislative and Environmental Affairs, Shipping Federation of Canada

Good morning. My name is Sonia Simard.

I am appearing today on behalf of the Shipping Federation of Canada.

Our objective is to provide the perspective of shipowners on some of the marine amendments contained in Bill C-86.

Although we are grateful for the opportunity to appear before this committee, we are indeed concerned with the very fast pace at which the bill is proceeding right now. Yesterday we submitted a brief to this committee in which we outlined some of our concerns with Bill C-86 and proposed some specific amendments.

More specifically, we recommended, first, that the marine transportation amendments be extracted from Bill C-86 and addressed as a stand-alone bill in order to ensure that there is sufficient time to proceed with a proper examination of the proposal.

If this is not done, we would urge this committee to proceed, at a minimum, with some specific amendments. Today we are addressing, more specifically, division 22 of Bill C-86.

That division provides the minister and the Governor in Council with additional powers in relation to regulation for protection of the environment. The shipowners and vessels we represent are committed to safe and sustainable transportation, so our concerns with the proposals are not with the objectives. We support the objectives, but we are asking for specific amendments to ensure that we have the proper safeguards around the new powers that are proposed.

Going into a little bit of detail, clause 690 of Bill C-86 would enable the minister to issue interim orders in the marine mode for any type of risk to marine safety or the marine environment that he or she views as requiring immediate action. These orders could remain in effect for up to three years without any of the basic safeguards provided in the normal regulatory process, such as consultation with affected stakeholders or regulatory impact statements that we do when we have regulations.

In our opinion, the proposed framework for interim orders in the marine mode is much broader than what we have found in other Canadian legislation. We have more detail in our brief, but just to make a summary of the common features we have seen in other Canadian legislation, usually ministerial interim orders are for a type of risk that meets a threshold, and that threshold is generally “significant risk” or “immediate threat”.

Furthermore, the lifetime duration of an interim order in the legislation we have seen is more tightly constructed. Those ministerial orders can stand alone for 14 days, after which time the Governor in Council must approve such interim orders and then extend the power by either one year, as we see in most of the legislation, or two years, as we see occasionally.

When we looked at the interim order framework being proposed here, we found it to be much broader. That's why what we have proposed is not an objection to the interim order, but rather, specific amendments to ensure that we find the proper safeguards around those interim order powers.

The second element we have outlined in our submission relates to clause 692 of the bill. I believe you have discussed this with the witnesses before. That's the power of the minister to vary Governor in Council recommendations. Again, we find powers to vary a regulation outside of the normal regulatory process. Because of the same concerns I have mentioned, we have also in our bill proposed specific amendments to ensure that we have proper safeguards.

The issue here is not whether or not there is a need to act fast. We understand that those situations happen. We just want to make sure we have proper safeguards around those powers.

On the other elements, we have brought more comments on division 22, but as we are running out of time, I'll ask you to refer to them in our brief.

The one point I would like to make in finishing is the fact that we unfortunately haven't been able to fully review the proposed amendments to the Marine Liability Act, but we will continue our review and we intend to submit comments in front of the Senate.

Thank you for your attention.

November 6th, 2018 / 9:45 a.m.
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Peter Fragiskatos London North Centre, Lib.

Thank you very much, and thank you all for being here today.

I want to focus the first part on pay equity. What we see here with Bill C-86 is the advancement of something quite important, something that we've been talking about doing as a country for a number of decades. While there are concerns that we've heard expressed, concerns that the bill isn't perfect, I don't think we live in a perfect world. What I want to put on the table is the fact that Bill C-86 and the pay equity provisions apply to federally regulated workplaces. However, there is a great deal to be said about the potential for this to go beyond, and now we can really begin a substantive conversation about pay equity in the wider society.

As part of that, I would like to get the view of those at the table on the existing reasons for a gap in pay between men and women. On the one hand, we can talk about structural barriers and the differences between men and women as well as false perceptions about what women can offer in the workplace and what men can offer.

Beyond that, though, there are other views. Mr. Cross, I don't mean to set this up as a straw-man argument, and I'll come back to you for your view, but your organization, the Macdonald-Laurier Institute, has said, and I quote here from your website:

The reasons for the pay gap between men and women are not particularly new. Women tend to be clustered in fields that traditionally pay less than the ones that men choose, and in occupations that pay less as well. They are also a lot more likely than men to take “breaks” from work (a really poor word to express what happens when you are home with small children), which does not help their long-term earnings power either.

That's the end of the quote. I wonder if we could delve into that.

Ms. Decter, I'll go to you first, and then Ms. Doucet. Do you agree with that particular view? Should we focus instead on structural barriers as we open up a conversation in the wider society about how to decrease the gap in pay between men and women?

November 6th, 2018 / 9:40 a.m.
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Rear-Admiral Retired) Peter Ellis (Executive Director, Clear Seas Centre for Responsible Marine Shipping

Madam Chair and committee members, thank you for giving me the opportunity to speak to you today.

Clear Seas Centre for Responsible Marine Shipping is an independent not-for-profit organization that sponsors research and produces communications and engagement programs related to sustainable marine shipping in Canada. We were launched in the summer of 2015—so we're about three years old—with seed funding from Transport Canada, Alberta Energy and the Canadian Association of Petroleum Producers.

Our purpose is to provide impartial, reliable and evidence-based information on shipping in Canada on the premise that better information leads to better decisions. Our independence is protected in our funding agreements and all of our program is accessible on our website at www.clearseas.org.

My observations today are based on some of the work we've done through our research and website publications, engagement with stakeholders, participation in many forums and working groups related to marine shipping, and of course observations from media and social media. I offer that the importance of marine shipping to our well-being and prosperity is underappreciated by most Canadians. To gauge Canadians' attitudes toward marine shipping, we conducted a public opinion poll in partnership with the Angus Reid Institute in the spring of 2016. We've just completed another round of polling on Canadians' attitudes to see if there are any trends. The data is currently being analyzed, and we aim to publish the results by the end of November.

A common theme raised in the 2016 poll and that persists today is the concern Canadians have for the potential environmental impacts of shipping. The proposed legislative changes are clearly aimed at enhancing confidence in and effectiveness of what is already a sound system.

Clause 689 of Bill C-86, for example, in providing the explicit authority of the minister to enter into agreements with indigenous groups, stakeholders and other levels of government clearly recognizes the complexity of the marine environment, its many jurisdictional interfaces, the issues of aboriginal rights and title, and the variability of local considerations. These realities are already recognized at the tactical level in such plans as the Canadian Coast Guard's greater Vancouver integrated response plan, for example. I suggest the development of such agreements should be subject to extensive engagement with stakeholders.

The proposed authority of the minister to make interim orders in clause 690 of the bill is an application of the precautionary principle, allowing greater flexibility to respond to short-fuse developments. Notwithstanding the interim nature of the orders, these decisions should be evidence-based and consider the best information available at the time. Enhancing the flexibility to intervene earlier in the cases where pollution may occur, but has not yet occurred, supports more timely action, which is a key element of effective response. Potentially preventing already rare pollution incidents or containing such events more swiftly to limit the spread of a spill are important elements of reducing risks associated with shipping. Likewise, the authority to enter private property and use private property in a response scenario is likely to improve effectiveness.

The provision of immunity for persons providing assistance, bounded by what is reasonable in the circumstances, is supported. It should be noted that this change may alleviate some concerns that have been expressed by American response personnel with regard to their liability in potential transborder operations. The changes to administrative and monetary policies applied judiciously will clearly support the polluter pays principle and enhance public confidence, which has been undermined somewhat by lengthy and inconclusive proceedings such as those following the Marathassa spill.

The changes to the ship-source oil pollution fund are also likely to increase confidence in the system by broadening the scope of what can be compensated. While extending the compensation available to economic loss indirectly related to pollution incidents makes sense and is consistent with the polluter pays principle, it raises significant questions as to the impacts on insurance rates, civil liabilities and other effects. These need to be clarified and clearly understood.

For some this change will not go far enough, as a portion of the population believes that compensation ought to extend to such areas as the loss of use of public land for recreational, cultural or other reasons.

Clear Seas supports the provisions of this bill, but notes that additional engagement with stakeholders is required as this bill moves forward.

I would also note that the focus seems to be on the response phase, with little being added to the preventive pillar.

Thank you again for giving me the opportunity to participate in this meeting.

I'm now ready to answer your questions.

November 6th, 2018 / 9:20 a.m.
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Professor Andrea Doucet Canada Research Chair in Gender, Work and Care, Professor of Sociology, Women's and Gender Studies, Brock University, As an Individual

Thank you.

Mr. Chair and members of the finance committee, I'm Andrea Doucet. I'm a Canada Research Chair in Gender, Work and Care, and I'm a Professor of Sociology in Women's and Gender Studies at Brock University.

My brief comments today on Bill C-86 are focused on one key issue: parental leave benefits, and specifically the introduction of a new EI parental sharing benefit in the amendments to the Employment Insurance Act, which is in division 8 in Bill C-86.

The EI parental sharing benefit, which will be available as of March 2019, is the newest addition to Canada's current package of maternity and parental benefits. It provides an additional five parental leave weeks paid at 55% wage replacement, or eight weeks paid at 33%, to parents who share EI benefits. This includes adoptive parents and same-sex couples.

The initiative was partly modelled on the Province of Quebec's parental insurance plan, QPIP. Specifically, three to five weeks of parental leave are designated for fathers and second parents, and this has led to almost 80% of Québécois fathers now claiming parental leave. Meanwhile, outside of Quebec, only 12% of fathers are using parental leave benefits.

Gender equality at home and at work are clearly stated goals of this new benefits practice. They are laudable goals that connect more broadly to the gender equality goals of the the so-called gender equality budget, but there are two significant problems and two key differences between this policy and the Quebec policy, and they centre on wage replacement rates and issues of eligibility.

In terms of wage replacement, the wage replacement rate of 33% to 55% is too low. The Quebec rate of 70% to 75% is a successful model that is in line with international research, especially from the Nordic countries, which shows that designated leaves for fathers and higher wage replacement rates increase the number of fathers who claim parental leave.

In terms of eligibility, many couples will not qualify for the new parental sharing benefit. It is only available to two-parent families where both parents qualify for benefits. My research, with Dr. Lindsey McKay and Dr. Sophie Mathieu, published in the Journal of Industrial Relations in 2016, leads me to make the following argument.

We believe that more than one-third of all families will likely not receive this benefit. This argument is based on three important claims from our comparative analysis of mothers access to leave benefits in Quebec versus nine other provinces. We used Statistics Canada data. There was no data on people living on reserves or from the territories. It was from Quebec and the nine provinces.

My three points are the following. First, outside of Quebec, 25% of mothers do not qualify for benefits because they do not have the required 600 insurable hours in the 52 weeks prior to giving birth. Women can work their entire lives paying into EI, but if they do not have those hours in the year before birth, they don't qualify.

Second, 36% of all mothers outside of Quebec do not receive parental benefits. This is due to a combination of their ineligibility and the limitations of provincial employment standards and entitlements.

Three, over half of mothers—56%—in low-income families in these nine provinces are excluded from leave benefits. In Quebec, only 15% of low-income mothers are excluded from leave benefits.

I'll conclude with two final points.

A broader GBA+ analysis demands that we look more closely at who is excluded from the new EI parental sharing benefit. Notably, many low-income families will be excluded, and lone parents will be excluded.

Finally, my work with McKay and Mathieu argues that this new extension of parental benefits, without attending to issues of wage replacement, eligibility and access, will lead to a growing divide between what we refer to as “parental leave-rich” and “parental leave-poor”, or “care-rich” and “care-poor” households.

Thank you very much.

November 6th, 2018 / 9 a.m.
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Fay Faraday Co-Chair, Equal Pay Coalition

Thank you.

The Equal Pay Coalition represents 44 different associations, businesses, professional women, unionized women, non-union women and community groups across the province of Ontario. We also coordinate a broader pay equity network on the federal level that includes 134 women's groups from coast to coast to coast. We make the representations on behalf of them.

While the pay equity legislation that is in Bill C-86 is an important first step, there are a number of amendments that need to be made to the legislation if it is actually to be effective in protecting women's rights. I want to anchor the amendments in a number of key principles that should guide you in that amendment process.

The first is that pay equity is a fundamental human right. This is not an option. This is not something that is good to have. It is a fundamental international human rights commitment that Canada signed onto in the ILO convention 100 in 1972. In addition, it is a protected right under the Canadian charter.

Eradicating the pay equity gap is, then, a mandatory human rights obligation, and the pay equity legislation must increase the efforts to close the gap. It must strengthen and not weaken or undercut them. Those are key principles.

As well, under section 2(d) of the charter, workers have the constitutional right to union representation in the workplace, so active union participation must be a key part of the legislation. Also, the legislation must be attentive to current problems with the fissuring workplace if it's to be effectively enforced.

I'm going to identify some key amendments that need to be made.

One is the amendment to the purpose clause, which you've heard.

Making fundamental human rights subject to the “diverse needs of employers” fundamentally undercuts the legislation, and it is absolutely unprecedented in Canadian human rights legislation. That must go. That's non-negotiable.

In addition, you need to have a definition of “employer” that encompasses the fissured workplace that exists right now. What that means is capturing all the contracting out and subcontracting that allows employers to distance themselves from rights violations. That is missing in the legislation.

As well, there are a number of provisions you've included in the legislation that have already been found to be unconstitutional.

With some of those in fact the legislation actually gives less protection in some areas than the Canadian Human Rights Act currently does. For example, it has less protection in the compensation for part-time and temporary workers than currently exists.

It also prevents women from having access to the broader human rights protection under section 7 and section 10 of the Canadian Human Rights Act.

Also, the pay equity act does not close all the different gaps in compensation that are discriminatory. Access to those broader protections is absolutely critical.

You've included in this legislation provisions around retroactivity that the—

November 6th, 2018 / 8:55 a.m.
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Ann Decter Director, Community Initiatives, Canadian Women's Foundation

Good morning. I'm Ann Decter from the Canadian Women's Foundation, and I thank you for the invitation to speak to you today on behalf of the foundation with regard to Bill C-86.

The Canadian Women's Foundation is Canada's only public foundation dedicated to women and girls. We fund grassroots women's organizations and women-serving community programs and invest in building the women's sector through knowledge mobilization, networking, collaboration and advocacy.

We were pleased to see key commitments to women's equality in the 2018 federal budget, and we welcome the next steps on those commitments in Bill C-86. I will be speaking to three of them.

Among its myriad provisions, Bill C-86 will establish the department of women and gender equality, transforming Status of Women Canada into a department. We celebrate the retention of “women” in the name of the department, thus ensuring the link is maintained to historic milestones like the Royal Commission on the Status of Women in Canada, which in the early 1970s made recommendations that are still on our wish list.

When we talk about women's equality, we are talking about equality for the majority of the population. Our recent research on the state of women's equality in Canada indicates that violence against women, economic security and gendered reconciliation and decolonization are key priorities to advance gender equality in this country.

Approaches needed to advance equality for women, who make up slightly over half the population and, notwithstanding the grumblings of premiers, have the overriding protection of charter rights, may differ greatly from approaches that would advance the much smaller population identified in the act as “gender-diverse”, who lack charter protections while often facing social persecution on a daily basis.

We encourage the minister for women and gender equality, as she will soon be, to examine the question of what structures are needed both inside and outside of government to ensure the government remains on a dynamic path towards women and gender equity and equality.

Our submission to the 2018 federal budget consultation called for intersectional gender-based budgeting across all federal departments. We recommended that Status of Women Canada establish a gender-budgeting plus resource centre funded and mandated to embed intersectional gender-based analysis across the federal government.

Our reading of the broad strokes of the Canadian gender budgeting act is consistent with this approach. We welcome it and recommend that the new department for women and gender equality be placed on a growth plan and its budget on a path of significant annual increases to ensure its leadership capacity in this area.

We agree wholeheartedly with the preamble to this act that “Canada's long-term economic success depends on an inclusive society in which all individuals have the ability to contribute to their full potential” and note that women became the majority of university graduates in 1990 and have now surpassed men in education across the population. The Canadian economy needs women, and that means all women.

The Canadian Women's Foundation welcomes the introduction of proactive pay equity legislation. We fully support our colleagues from the pay equity coalition, who are experts on this issue, and you will hear from them today.

I have a few quick points.

For unionized women, it's good. The legislation supports them to advocate for their pay equity rights and for their unions to negotiate pay equity plans. The non-union worker, however, is on her own. She may find it difficult to comprehend, and the act lacks any provision for a legal support centre to assist her.

The opening clause includes “the diverse needs of employers” in the purpose language. This could give employers' needs precedence instead of centring on the needs of women in federally regulated workplaces.

This act is silent on pay transparency. Disclosure of pay practices goes to the heart of compliance and needs to be added here or in accompanying legislation.

We look forward to corrections to these issues in the pay equity act and to implementation of this important legislation.

Thank you for the opportunity to speak to you today.

November 6th, 2018 / 8:50 a.m.
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Liberal

The Chair Liberal Wayne Easter

We'll call the meeting to order.

We're starting our first set of witnesses beyond the department. Pursuant to Standing Order 108(2), we are studying the subject matter of Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018, and other measures.

Welcome, witnesses.

We'll start with the Canadian Association for Retired Persons, Ms. Morris.

November 6th, 2018 / 8:45 a.m.
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Liberal

The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)) Liberal Judy Sgro

I call to order this meeting of the Standing Committee on Transport, Infrastructure and Communities, 42nd Parliament.

Pursuant to Standing Order 108(2), we are doing a study of the subject matter of clauses 688 to 747, also referred to as divisions 22 and 23, of Bill C-86.

As witnesses, in the first part of our meeting, we have, from the Department of Transport, Natasha Rascanin, Assistant Deputy Minister, Transformation; and Marc-Yves Bertin, Director General, Marine Policy.

From the Department of Fisheries and Oceans, we have Julie Gascon, Director General, Operations, Canadian Coast Guard; and Marc Sanderson, Acting Director General, National Strategies, Canadian Coast Guard.

Welcome to all of you.

I would ask that you keep your comments to five minutes or under in order to give the committee sufficient time for their questions.

Whoever would like to start can go ahead.

November 5th, 2018 / 4:15 p.m.
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Partner, Fasken Martineau DuMoulin LLP, Business Coalition for Balanced Copyright

Gerald Kerr-Wilson

That was an issue where there was almost unanimity amongst users of the Copyright Board. In every decision, you're going to have someone who's happier than someone else, but everyone agreed that decisions had to get out more quickly.

We were dealing with situations where the board was setting prices to be paid for music five years ago. No one knew what the price to be paid today was. If the government follows through on the regulatory authority that it's proposing under Bill C-86, that problem, at least, will be substantially resolved.

November 5th, 2018 / 4:15 p.m.
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Partner, Fasken Martineau DuMoulin LLP, Business Coalition for Balanced Copyright

Gerald Kerr-Wilson

I'll start. I do spend quite a bit of time appearing before the Copyright Board.

Speed and retroactivity of decisions were a large concern for a number of users of the Copyright Board, on both the collective side and the licensee side. The measures put in place, or proposed in Bill C-86, the budget implementation act, go a long way. They certainly give the government the tools to set deadlines for the Copyright Board to issue decisions. They make it clear that tariffs have to be proposed further in advance and for a greater number of years. If all these measures are acted upon and regulations are put in place, we could actually dramatically reduce the problems we've seen in the past with the timeliness of decisions and long retroactivity.

November 5th, 2018 / 3:50 p.m.
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Eleanor Ryan Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance

Thank you, Mr. Chair.

My name is Eleanor Ryan. I'm here with my colleagues from the Department of Finance and with Brigitte Goulard, Deputy Commissioner of the Financial Consumer Agency of Canada. We're honoured to have the opportunity to present this legislation to you.

Division 10 of Part 4 of Bill C-86, entitled “Financial Consumer Protection Framework”, follows upon the government's commitment made in Budget 2018 to continue to advance consumers' rights and interests when they deal with their bank, and to strengthen the tools at the disposal of the Financial Consumer Agency of Canada.

Division 10 represents a consolidation of the existing legislation and regulatory provisions applying to the relationship between banks and their customers, and new measures intended to address the issues identified in two reports published by the Financial Consumer Agency of Canada in the spring of 2018.

The first report was a comprehensive review of bank sale practices. This report identified a number of risks relating to how bank products are sold to customers. The second report examined best practices for supervision of financial consumer protection.

November 5th, 2018 / 3:45 p.m.
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David Fewer Director, Canadian Internet Policy and Public Interest Clinic

Thank you, Mr. Chair.

Good afternoon, members of the committee. My name is David Fewer. I'm the director of CIPPIC, which is the Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic at the centre for law, technology and society at the University of Ottawa.

We are Canada's first and only public interest technology law clinic. We're based in the university. We essentially bring lawyers with expertise in technology law issues together with students to advocate on behalf of the public interest on technology law issues.

Our work resides at the heart of Canada's innovation policy agenda. We work on everything from privacy to data governance and artificial intelligence, network neutrality, state surveillance, smart cities policies and, of course, copyright policy. Our work essentially is to ensure respect for Canadians' rights on technology policy, as governments and courts respond to Canadians' use of ever-changing, new technologies.

I want to start with two background comments with respect to approaching copyright policy. Number one is the concept of balance. It's been long settled now in Canadian copyright policy that balance is essential to the overall scheme and objective of the act. That means Canadian copyright policy must be directed towards achieving a balance between providing a just reward for creators and owners of copyright works and the public interest in the dissemination of works more broadly. This guiding principle is basically the touchstone of copyright policy and should be central to any review of the Copyright Act.

That brings me to my second background point, which is the USMCA. The recent conclusion of the renegotiated NAFTA agreement upsets the balance in Canadian copyright law policy. This is not the place to go through an extensive review of the changes to copyright law that will be required by the legislation, but three that jump out to me were a copyright term extension, the enhanced digital lock provisions which were further unsettling a troubling area of Canadian copyright policy, and the new customs enforcement rights, revamping an area of law that we had just within the last two years upgraded.

These are just some of the benefits to copyright owners that are promised in this trade agreement. We would ask the committee to engage in these hearings with a view to resolving or restoring the balance that's at the heart of Canadian copyright policy.

Substantively, I want to talk about three specific points. One is digital locks. To the extent that this can be done by Canadian copyright policy, we should be looking to roll back the overprotection of the digital lock provisions. There's an incredible imbalance between the rights that copyright owners enjoy with respect to digital locks versus the rights they enjoy with respect to the content itself. The content itself respects a healthy balance. It has a nod towards future creativity and innovation policies. The digital lock provisions do not.

Many provisions of the Canadian Copyright Act intended to benefit future creators and innovators are locked out where a digital lock is used, and it's difficult to justify that on any kind of reasoned analysis of Canadian copyright policy.

We would ask that the USMCA provisions be studied with a view to determining how best to maintain fair and flexible dealings with content in the face of digital locks. Essentially we say that draconian digital lock provisions deter and undermine Canadian innovation policy, and they undermine digital security. This is not just a user issue. It's an innovation issue. Creators such as documentary filmmakers and new forms of artists—appropriation artists, for example—encounter difficulties in the face of digital locks. That content is beyond their reach.

We would also ask that we look to the extent to which we can restrict criminal circumvention to commercial activity because of the tremendous disincentive of criminal prosecution for innovation and artistic work in the face of digital locks.

Second, I want to turn to fair dealing. CIPPIC has long asked that Canada look to make the list of fair-dealing purposes illustrative, rather than exhaustive. If the dealing is fair, it ought to be legal. That's the bottom line. Failing that, CIPPIC would support extending fair dealing to transformative dealings, to recognize different kinds of authors, such as appropriation artists and documentary filmmakers. Transformative dealings aren't covered well, within the existing fair dealing paradigm.

We would also echo the repeated calls that this committee has heard to extend fair dealing to what I'll call AI activities. We would look for a specific exception for informational analysis.

Finally, related to fair dealing, CIPPIC would call for no contractual overrides of fair dealing. We've talked about privacy already. Our privacy rights have a very difficult time with terms of use, which have privacy policies that no consumer or user ever sees, thereby stripping our privacy rights away. Copyright, which is an innovation policy, should not suffer from the same burden.

Other jurisdictions have done this, particularly within the context of the data mining exception, in jurisdictions such as Britain. Canada should be looking to this too.

Finally, I have a brief comment on the notice and notice system. CIPPIC supports the changes to the system that were recently tabled in Bill C-86 to curb abuses of that system, but we would actually echo Mr. Kerr-Wilson's comments about the need for adverse consequences for reckless or deliberate misuse of that system.

Thank you.

November 5th, 2018 / 3:40 p.m.
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Scott Smith Senior Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce

Thank you very much, Mr. Chair, and members of the committee, for the opportunity to address you today.

I'm actually here for the Canadian intellectual property council, which is a special council within the Canadian Chamber of Commerce—the national voice of business, representing over 200,000 businesses across Canada.

The CIPC is dedicated to improving the intellectual property rights regime in Canada and has broad-based participation from a variety of industries, including manufacturers, the entertainment industry, information and communications technologies companies, telecommunications and logistics firms, legal professions, retailers, importers and exporters, pharmaceutical and life science companies, and business associations.

The leaders of the CIPC are senior executives from corporations and associations who have a strong understanding of their industries' challenges and recognize the need for the protection of IPR in Canada. The mandate of the council is to promote an improved environment in Canada for businesses interested in innovation and intellectual property, by raising the profile of IPR among key policy-makers in the government and the general public.

I'd like to start by thanking the government for efforts to recognize the link between innovation and intellectual property rights in its intellectual property strategy.

Our counterparts at the Global Innovation Policy Center, GIPC, undertake a systematic evaluation of the strength of the IPR regimes in 45 economies. This year, Canada ranked 18, but the score has improved from previous years. Measures such as digital rights management and the enablement provisions introduced in the last update of the Copyright Act are important tools to help protect the significant investments made by creators in Canada. We would like to see those measures preserved going forward.

I'd also note that we are pleased to see that many of the suggestions put forward by the CIPC regarding changes to the Copyright Board have been reflected in Bill C-86, announced last week.

We believe it's important to have a consistent, timely and predictable board, and one that supports and encourages new and existing businesses operating in Canada's cultural industries, through a more efficient and productive tariff-setting process; through provisions to enact reforms by way of regulation, particularly as it pertains to delays; through the provision to support independently negotiated tariffs; and through the adoption of clear decision-making criteria.

We look forward to seeing these provisions come into force in the spring of 2019.

I'd like to focus the balance of my comments today on two issues: addressing online piracy, and keeping the door open to research and innovation for artificial intelligence.

I'll start with a pervasive problem: the significant threat of online piracy that now includes new forms that were not dominant the last time the Copyright Act was reviewed. This includes the commercial operation of illegal online streaming platforms and set-top boxes preloaded with illegal add-ons that provide users with unauthorized access to entertainment content.

According to the MUSO piracy insight report, Canada is now one of the highest consumers of global web streaming piracy. In fact, this same report finds that Canada has moved up to eighth in the global country rank by piracy visits, totalling 1.88 billion visits to all piracy sites in 2016. That web streaming is now the most popular type of piracy in Canada.

In the Government of Canada's own study on online consumption of copyrighted content that was issued in May 2018, one quarter of all Canadians self-reported as having consumed illegal content online. Sandvine also estimates that 10% of Canadian households use illegal subscription services.

The economic harm caused by online piracy is all too real. According to research by Frontier Economics, the commercial value of digital piracy of film in 2015 alone was estimated at $160 billion worldwide. In Canada, where the film and television industry alone accounted for over 170,000 jobs in 2016 and 2017, and generated $12 billion in GDP for the Canadian economy, the impact of online piracy is significant.

Unfortunately, the current tools available in the Copyright Act are insufficient to deal with these new threats. While there is no single solution to piracy, the Copyright Act should be modernized and leverage tools proven to be effective in helping to reduce online piracy, including those available in Europe.

CIPC encourages the government to enact provisions that expressly allow rights holders to obtain injunctive relief from competent authorities, such as site blocking and de-indexing orders against intermediaries whose services are used to infringe copyright.

Illegal content is accessed through Internet intermediaries, and they are best placed to reduce the harm caused by online piracy. This principle has long been recognized throughout Europe where article 8(3) of the EU copyright directive has provided the foundation for copyright owners to obtain injunctive relief against intermediaries whose services are used by third parties to infringe copyright.

The need for modern and effective tools to help address online piracy has been supported by the broadest range of Canadian stakeholders, including Canada's largest Internet service providers, all of whom have recognized the harm caused by international piracy sites that harm Canada's creative economy.

Even the CRTC has acknowledged the harms caused by piracy in considering the application filed by the FairPlay Canada coalition earlier this year, but ultimately pointed to the current review of the Copyright Act as the appropriate forum to address this pressing issue. Building on precedents that already exist in Canada, the Copyright Act should be amended to expressly allow rights holders to obtain injunctive relief against intermediaries by site blocking and de-indexing orders of infringing sites.

I'll conclude with preserving an opportunity, and I'm going back to data here. Data, and the techniques and technologies employed to collect and analyze it, will allow Canada and the world to solve some of the world's most pressing economic, social and environmental problems. Data is now the engine of economic growth and prosperity. Countries that promote data's availability and use for society's good and economic development will lead the fourth industrial revolution and give their citizens a better quality of life.

Machine-learning frequently necessitates the use of incidental copying of copyrighted works that have been lawfully acquired. Works are used, analyzed for patterns, facts and insights, and those copies are used for data verification. To avoid the risk of blocking this activity, we suggest that any legislation that deals with the applicability of copyright infringement liability rules should examine carefully how these rules apply to all stakeholders in the digital network environment as part of ensuring the overall effectiveness of a copyright protection framework.

Thank you for the opportunity to present to you today.

November 5th, 2018 / 3:35 p.m.
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Liberal

The Chair Liberal Wayne Easter

We'll call the meeting to order on the subject matter of the budget implementation act 2018, Bill C-86.

We jumped ahead and did division 4, because we thought it might take longer.

With us to deal with part 4, division 3, financial sector renewal, we have Mr. Dussault, Senior Director; Mr. Paradis-Béland, Senior Economist; and Mr. Fournier, Legislative Policy.

Welcome Mr. Dussault.

November 5th, 2018 / 3:30 p.m.
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Gerald Kerr-Wilson Partner, Fasken Martineau DuMoulin LLP, Business Coalition for Balanced Copyright

Thank you very much, Mr. Chairman.

Good afternoon, members of the committee.

My name is Jay Kerr-Wilson. I'm a partner with Fasken Martineau and am appearing today on behalf of the Business Coalition for Balanced Copyright, or BCBC.

The members of BCBC include Bell Canada, Rogers, Shaw, Telus, Cogeco, Vidéotron and the Canadian Communication Systems Alliance. BCBC's members support a copyright regime that rewards and protects creators, facilitates access to creative content, encourages investment in technology and supports education and research.

The exceptions that were added to the Copyright Act in 2012 were necessary to eliminate uncertainty that would restrict or inhibit the development of innovative new products and services. Reducing or eliminating these exceptions will put at risk hundreds of millions of dollars in investments. It will cause disruptions in the rollout of legitimate new services that would otherwise provide copyright owners more opportunity to earn revenue by giving Canadians more access to more content.

The coalition does not believe that new copyright levies should be imposed on ISPs or other intermediaries in an attempt to create new sources of revenue for Canadian creators and artists.

First, requiring ISPs to make content-specific payments is a clear violation of the principle of network neutrality.

Second, and more important, the Copyright Act is not the appropriate statute for promoting Canadian cultural industries. Canada's obligations under international treaties require that any benefit that is granted to Canadian copyright owners must also be provided to non-Canadians when their works are used in Canada. As a result, most of the money collected from Canadians would go to the U.S.

Third, copyright owners are already paid for lawful online activities through commercial licence agreements, and in the case of SOCAN, tariffs approved by the Copyright Board. Forcing Canadians to pay another fee for receiving these same lawful services is a form of double-dipping, a practice that was rejected by the Supreme Court in ESA v. SOCAN.

The government has other, far more appropriate policy tools at its disposal to promote Canadian cultural content and Canadian creators. Using these tools enables measures to be specifically targeted to Canadian creators in a way that the Copyright Act cannot.

The BCBC supports the addition of a new exception for information analytics. A human being can access and read a document without having to make a new copy or reproduction. Automated processes need to make technical copies in order to read and analyze the content of documents. Just as Parliament recognized the need in 2012 to create exceptions to apply to the reproductions that are required to operate the Internet, the BCBC believes that a new exception is required to eliminate any uncertainty regarding the making of reproductions for automated information analysis.

The BCBC recommends an additional improvement to the existing “notice and notice” regime. In Bill C-86, the budget implementation act, the government introduced amendments to prohibit the inclusion of settlement demands and infringement notices. The BCBC strongly supports this proposal but believes additional amendments are necessary to protect consumers and to give ISPs the tools they need to stop these settlement notices.

Bill C-86 makes clear that ISPs are not required to forward settlement demands to subscribers; however, it contains no useful deterrent to dissuade rights holders or other claimants from including settlement demands in copyright notices. We believe the onus for excluding settlement demands from copyright notices must rest solely with the rights owner, not the ISPs, who currently face liability for failing to forward compliant notices.

The other needed change is to adopt regulations establishing a common standard for infringement notices. Canadian ISPs and the motion picture industry co-operated on the development of a standard format known as the Automated Copyright Notice System, or ACNS, which is freely available at no charge and reflects Canadian requirements. The government should enact regulations establishing the form and content of notices based on ACNS.

The BCBC is aware that the ministers have written to this committee and the heritage committee with respect to the changes to the Copyright Board and collective management of copyright. The BCBC supports many of the changes that have been introduced to improve the efficiency of Copyright Board proceedings.

The coalition is concerned that some of the changes will eliminate important protections for licensees and could result in monopoly copyright licensing practices that are no longer transparent or subject to regulatory oversight.

The coalition strongly supports amendments that will make it easier for copyright owners to effectively enforce their rights. The act should allow for injunctive relief against all of the intermediaries that form part of the online infrastructure distributing infringing content. For example, it should be explicit that courts can issue a blocking order requiring an ISP to disable access to infringing content available on preloaded set-top boxes or an order prohibiting credit card companies from processing payments for infringing services.

The BCBC recommends that the Copyright Act be amended to eliminate a potential conflict between a court order for ISPs to block access to infringing services and the CRTC, using its authority under section 36 of the Telecommunications Act, to prohibit that blocking.

The BCBC finds it unacceptable that an Internet service provider could be ordered by a court to block access to an infringing Internet service and prohibited by the CRTC from complying with that court order. This conflict must be resolved in favour of the court order.

Finally, the BCBC warns the committee against unfounded claims of a value gap between the music industry and Internet services. The claims made by the music industry and the amendment they're demanding ignore how rights are cleared through commercial transactions. If adopted, these measures would disrupt well-established commercial relationships and would ultimately result in substantial net outflow of money from Canadians to U.S. record companies. For example, the music industry wants the definition of “sound recording” revised so that record companies and performers get paid public performance royalties when sound recordings are used in soundtracks in film and television programs.

The music industry appears to suggest performers and record labels aren't paid for the use of recorded performances in soundtracks. This is simply false.

Record companies are free to negotiate the terms of using recorded music and soundtracks with the movie producer. Performers have to agree to the use of their performances in soundtracks and are entitled to demand payment through their agreements with the record labels. Furthermore, the Copyright Act already provides detailed provisions protecting the rights of performers to be paid for the use of their performances. Revising the definition of “sound recording” as suggested would result in record labels and performers getting paid twice for the same use.

If the committee is concerned about improving the financial fortune of performers, it could recommend that the division of royalties between record companies and performers in subsection 19(3) be adjusted. The simple change would immediately put more money in the pocket of every performer who's performance is played on the radio, streamed online, or played in bars and restaurants.

Thank you. Those are my comments. I look forward to your questions.

Bill C-86—Proposal to Apply Standing Order 69.1Points of OrderRoutine Proceedings

November 5th, 2018 / 3:25 p.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, I have yet another response that I would like to go over at this point.

I rise today to respond to a point of order raised by the hon. member for New Westminster—Burnaby on October 31, 2018 with respect to the second budget implementation act, 2018 and the application of the Standing Order 69.1(2), which reads:

The present Standing Order shall not apply if the bill has as its main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents tabled during the budget presentation.

My hon. colleague alleges that clauses 461, 462 and 535 to 625 of Bill C-86, which deal with the modernization of the Canada Labour Code are not mentioned in the budget and as such they would not be covered by the provisions of the Standing Order 69.1(2). In fact, the clauses identified by my colleague are referenced in the budget documents tabled on February 27, 2018. I would draw to the attention of members page 46 of budget 2018, which reads as follows:

To implement this change to the EI program, the Government proposes to amend the Employment Insurance Act. In addition, the Government proposes to amend the Canada Labour Code to ensure that workers in federally regulated industries have the job protection they need while they are receiving EI parental benefits.

Furthermore, if we look at pages 51, 63 and 64 of budget 2017, we find multiple references to the government's announced intention to amend and modernize the Canada Labour Code. As such, I respectfully submit that the dispositions mentioned by the hon. member are all covered under the purview of Standing Order 69.1(2) and consequently should be subject to separate votes at second and third reading.

Time Allotted for Consideration of Budget Implementation Act, 2018, No. 2PrivilegeRoutine Proceedings

November 5th, 2018 / 3:25 p.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, on a point of order, I would like to respond to the question of privilege by the hon. member for New Westminster—Burnaby on October 31, 2018 with respect to his concerns that there would not be enough time to scrutinize Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

The bill was introduced on October 29, 2018, and debated in the House on Thursday and Friday last week. It was scheduled for debate last Wednesday as well, but the opposition preferred to debate points of order and questions of privilege.

We expect more debate at second reading, and I understand that the finance committee has a plan for considering the bill. As members well know, once the committee has completed its work, there will be a further opportunity to consider the bill at the report and third reading stages. The member should not prejudge the legislative process.

I would also note that my hon. colleague was able to speak to the bill at second reading, and I am sorry to note that the majority of his intervention centred on his belief that there would not be enough time to scrutinize the bill. If the member had these concerns, he should have used his speaking slot more judicially and could have highlighted his policy concerns with the bill rather than prejudge the process for considering the bill.

My hon. colleague in his statement alleges that his ability to perform his duties as a member of Parliament are inhibited by the size of Bill C-86. I would argue that the matter before us today is not a question of privilege but rather a matter of debate.

First of all, I would like to remind the member that he stated that “The government's intention to not even take the time to respect parliamentary procedure and work through the committee structure to allow for appropriate debate so that we get more than a few seconds of scrutiny of each clause and subclause, to my mind, indicates a breach of privilege.” However, the Standing Committee on Finance adopted a motion framing the study of Bill C-86 in committee and as such made sure that the proper parliamentary procedure is followed on this subject matter.

Second, my hon. colleague blamed the lack of time between introduction of the legislation and the scheduled debate for second reading of the bill for his lack of preparation. To that, I would remind the House that a technical briefing with officials was offered to members to help them understand the bill and get prepared in provision of the debates. Consequently, I respectfully submit that this is a debate as to the facts and as such does not constitute a prima facie question of privilege.

Budget Implementation Act, 2018, No. 2Government Orders

November 2nd, 2018 / 10:45 a.m.
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Conservative

Kelly McCauley Conservative Edmonton West, AB

Madam Speaker, I rise on Bill C-86, the budget implementation act, 2018, no. 2. The first one was a disaster, with its out of control spending, massive deficits, and the transparency and accountability killing vote 40 that is famous for being the $7 billion Liberal slush fund.

Like a sequel to a bad Hollywood movie, it makes us wonder if the first one was so bad, why would we bother with a second? Unfortunately, the government has bothered with a second, and Canadians are going to pay the price.

I want to call the bill the “Demosthenes bill”, after an Athenian scholar who said, “why nothing is easier than self-deceit. For what each man wishes, that he also believes to be true.” That sums up the Liberals' belief in their actions so well. They sit and claim they have made record investments across the country, that there is employment growth here and there, that they have this and that national strategy to fix everything. Let us look beyond the hyperbole. Let us look beyond the self-deceit and see what is really going on.

Part 1 of the bill is an omnibus bill with four different parts and 23 different divisions—yes, 23 different divisions. Five different divisions of these 23 amend multiple acts, so even the omnibus bill has omnibuses inside the omnibus.

What does liberal.ca, the website say about omnibus bills? It says:

Stephen Harper has also used omnibus bills to prevent Parliament from properly reviewing and debating proposals. We will...bring an end to this undemocratic practice.

Did it happen? Of course not. It is quite remarkable that the Liberal Party is so obsessed with the previous prime minister. If in every sentence of theirs they do not mention the middle class or feminism, they will mention Harper. It makes me wonder if Liberals go to bed at night and check under the bed for the Harper bogeyman.

We all know omnibus bills are bad, so I want to quote a few members from across the way. Here is one:

This omnibus budget bill is yet another example of Conservatives steam-rolling democracy to force unpopular, non-budgetary measures through Parliament at record speed without the necessary scrutiny.

Who was that? It was the current President of the Treasury Board, the very man behind the vote 40 Liberal slush fund, the largest assault on parliamentary accountability and oversight in history. This again is from the man who puts his hand over his heart and complains about accountability, yet the $7 billion will not show up in the Public Accounts.

The Public Accounts came out just last week and are detailed to the point of listing a $4 coffee purchased by a bureaucrat while overseas with the Prime Minister on his trip to Israel. How much of that seven billion dollars is going to be detailed as such? Not one penny. One-third of one billion dollars is set aside for Phoenix, supposedly to fix it. The government is negotiating behind closed doors for a payout of public servants affected by Phoenix, which I will probably support. Is the money going to be used for that? The Liberals will not say and Canadians will never know. All it shows is a lump sum line in the Public Accounts.

I want to mention some other comments on omnibus bills by the other side. The current Parliamentary Secretary to the President of the Treasury Board said:

It is difficult, really, in the time available to do justice to a bill like this, because once again we have a bill that has a huge variety of measures. Some of them are new policy measures and some of them are not even in the budget speech. To actually do justice is very difficult.

Our colleague across the way from Winnipeg North, whom I am sure is going to ask questions about this, said:

When we take a look at this massive budget bill, as I said earlier, the government is making changes to dozens of pieces of legislation through the back door by passing it through a budget implementation bill, when in fact it should be stand-alone legislation.

Omnibus bills are bad, unless one is a Liberal, in which case omnibus bills are good, because they are the good guys.

I want to look at the Liberals' self-deceit about how good the economy is. The Parliamentary Budget Officer recently released his economic and fiscal outlook. I want to talk about the Liberals' self-deceit about their transparency. The PBO has asked repeatedly for access to the request for proposal for the combat ship program that Irving is doing.

Yesterday, we asked the President of the Treasury Board, who oddly is under a dark cloud for his interference on behalf of the Irvings with respect to the shipbuilding program, if he would release the RFP. The PBO has not asked for anything special. His office is allowed to access that information under an act of Parliament. When asked if his department would release it, the President of the Treasury Board said he would have to check with someone else.

In committee, we asked the Minister of Public Services and Procurement and Accessibility if she would release it. She did not know.

We asked the Minister of National Defence in the committee of the whole if he would release it, and with hand over heart, he replied he did not know.

The PBO says this is going to cost taxpayers $60 billion. Other insiders say it could cost as much as $100 billion. Yet the government will not release what is required.

I am going to go back to the economic and fiscal outlook, which notes that the GDP growth rate is actually dropping. Next year it will be 1.8% and the years after that it will drop to 1.5%. That is half of the global GDP growth rate, so we are lagging behind the rest of the world by half. We are behind the U.S. We are behind our allies. We are behind the advanced economies, as noted by the IMF.

The PBO also notes that residential investment is driving our economy, but also expects a significant correction to residential investments in the coming years.

With respect to the labour market report, the PBO notes that workplace participation rate, the number of people who are working, has dropped in percentage terms since the Liberals came to power. Workforce participation by both men and women has dropped under the Liberal government.

Our unemployment rate is at a record low, but we our underperforming our allies. We are underperforming big bad Trump. The Liberal government is doing worse than him. We are underperforming our G7 allies and the other advanced economies. We are below the OECD average. The OECD covers a bunch of basket case countries as well, and we are below the average in terms of unemployment. Well over half of the jobs created in this country this year were in the public service. Public sector employees perform valuable work, but it is not a sustainable path. Canada's unemployment rate is 49% higher than the U.S. rate right now. We are 29% above the G7 unemployment rate.

From the government, we hear middle class this and middle class that. The PBO notes that when we look at wage gains, wages for in the bottom 10% have actually risen, which is great, and those of the top 10% have risen too, but for those in the middle class, the middle 50%, wage growth in percentage terms has stagnated. Therefore, in regard to everything the Liberals have said about things being great for the middle class, the fact is government has actually done nothing for them. This is more self-deceit.

The government talks a lot about its national housing strategy. I am going to quote from the Institute of Fiscal Studies and Democracy run by the former PBO Kevin Page. This again goes to the self-deceit. The government says it will provide $40 billion for a national housing strategy. It says it is going to do so much. This is the quote:

There is one concerning tidbit around the National Housing Co-Investment Fund, specifically regarding the back-end-loaded nature of the federal funding. The full 10-year plan outlines $15.9 billion for the National Housing Co-Investment Fund, yet only $1.3 billion is budgeted for the first 5 years. And by the end of the 10 years, only $5.1 billion has been budgeted....

This all begs the question: Where is the proposed $40 billion National Housing Strategy funding? By following the funding throughout the years and tracking what is “new” money, we have painted a picture of what the NHS looks like apart from the glossy document that accompanied its announcement.

This is what we see again, this self-deceit of the government, which repeats its mantra again and again, but it is only fooling itself.

The budget implementation act no. 2 is a mess and disgrace and will not serve Canadians, just like its forefather, budget implementation act no. 1, did not.

Budget Implementation Act, 2018, No. 2Government Orders

November 2nd, 2018 / 10:05 a.m.
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Liberal

Linda Lapointe Liberal Rivière-des-Mille-Îles, QC

Madam Speaker, I should tell you that I will be splitting my time with my colleague from Scarborough—Guildwood.

I am delighted to rise in the House today to discuss an important element of Bill C-86, the budget implementation act.

The element I want to talk about is intended to strengthen a measure that we have already discussed, one that is especially important for low-income workers. I am referring to the Canada workers benefit.

With this bill, the government will make it easier for this benefit to reach workers who are entitled to it. Thanks to this bill, everyone who is entitled to the Canada workers benefit will receive it when they file their tax return.

Our government knows that Canadians are working hard to build a better life for themselves and their families. Some low-income Canadians are working two or three jobs. They work really hard. Like all Canadians, these workers deserve to be rewarded for their hard work with a fair chance to succeed.

With budget 2018, our government took a step in that direction. This is one more step towards growing our economy in a way that benefits the middle class and those working hard to join it.

In its most recent budget, our government introduced the new Canada workers benefit, which will come into force in 2019. It is an enhanced version of the working income tax benefit.

This new benefit will put more money in the pockets of low-income workers. It will not only increase benefits for those who received it for their employment income, but also expand the income range to make more workers eligible. For example, with this new benefit, a low-income worker who earns $15,000 per year will collect up to $500 more in benefits in 2019 than in 2018.

That is the kind of real help that will benefit over two million Canadians. Most importantly, we believe this measure will lift about 74,000 Canadians out of poverty by 2020. That is not all. In budget 2018, our government also increased the maximum benefit provided through the Canada workers benefit disability supplement by an additional $160 to offer greater support to Canadians with disabilities who face financial barriers to entering the workforce.

This benefit will also be issued automatically, which is good news.

However, it is possible to do even better. The bill that we are discussing today will make it easier for workers to access the benefits they are entitled to, as our government promised in the last budget.

Accordingly, the bill proposes to make changes that will allow the Canada Revenue Agency to calculate the benefit for any taxpayers who did not apply for it on their income tax return.

It is not a problem if people forget or fail to complete the benefit schedule of their income tax return. The Canada Revenue Agency will still do the calculation. If the person is entitled to the Canada workers benefit, he or she will receive it. Thanks to the CRA's new automatic enrolment system, as of 2019, all those who are entitled to the Canada workers benefit will receive it, whether they applied for it or not. That is very good news for Canadians.

In closing, I would like to point out that this is not the only good news. The Canada workers benefit is just one of many measures to help those who need it most.

There is also the Canada child benefit, a key initiative for strengthening the middle class. Thanks to this measure, nine in 10 families now have more money in their pockets. Over three million Canadian families are entitled to over $23 billion in annual payments.

This money will help them give their children a good start in life by providing them a safe environment, healthy food, and the opportunity to participate in recreational activities such as music and sports.

The Canada child benefit has helped lift more than half a million people in Canada, including more than 300,000 children, out of poverty. In addition, this benefit has been indexed to cost-of-living increases since July, two years sooner than initially planned.

Another measure is the increase in the guaranteed income supplement for seniors living alone. This increase improves the financial security of nearly 900,000 Canadian seniors, 70% of whom are women. This measure is very much appreciated in my riding, Rivière-des-Mille-Îles.

These are excellent examples of smart, responsible investments made by the Government of Canada in the interest of families, communities and the economy. These investments leave more money in the hands of those who need it most, which helps increase Canadians' confidence in what the future has in store for us.

As the economy keeps growing and high-paying jobs are created, our government will continue to ensure that all Canadians share in the success and benefit from it.

This budget implementation bill will help more Canadians who could use a hand up by ensuring that everyone who is entitled to the Canada workers benefit receives this additional assistance.

I want to add that, for my constituents in Rivière-des-Mille-Îles and Canadians across the country, our government has created more than 500,000 full-time jobs since we came to power.

The unemployment rate is at an historic 40-year low. Our plan is working.

In the 2015 election, Canadians had a choice between a plan offering austerity and cuts and our government's plan to invest in the middle class and build an economy that works for everyone. The outcome speaks for itself.

As I said earlier, wages are going up, consumer and business confidence is strong, and Canada's economy is among the highest-performing in the G7. That is no small feat.

Middle-class Canadians see first-hand that our plan is working. By this time next year, a typical family of four will have over $2,000 more in their pockets. Two thousand dollars is a lot of money to spend in our economy.

Budget 2018 is the next step in our plan. It supports our government's people-oriented approach and will ensure that every Canadian has a real and fair chance at success.

As part of budget 2018, our government continues to work on building an equal, competitive, sustainable and fair Canada. In light of such positive results, I urge all members of the House to vote in favour of this bill.

The House resumed from November 1 consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:45 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Madam Speaker, I rise today to speak to Bill C-86, the government's budget implementation act. This massive 800-page omnibus bill contains thousands of clauses, and there are seven separate stand-alone pieces of legislation inside it. I am hoping Canadians can understand why this type of bill presents a real danger to our democracy.

Canadians elect us to come to come to Ottawa and debate issues and create laws that will help them and their families. Real debate requires that all participants have all the information they need. The facts should be accessible. Access to the information should be transparent.

I think most Canadians will understand that governments present these kinds of mammoth documents to make it more difficult to analyze what the government is up to. This of course makes it more difficult to have a full and informed debate. Who suffers? It is Canadians who suffer. It is the people who elect us to represent them who suffer. I hope Canadians and all our constituents can see through what the government is up to in dropping such a thick and complicated bill on the table.

This is a bill that is supposed to implement some of the measures introduced in the government's budget from eight months ago. On the face of it, that is not unusual. What is unusual and what is concerning is that the bill introduces new and additional measures not mentioned in the original budget documents published last February. This is very concerning. These are new measures that should at least be put into separate bills, introduced in the House, and then fully debated and considered by all of us right here. However, that is not what is happening here.

It is most sensible that Canadians would wonder what is at play when a government behaves like this. Are the Liberals afraid of having their measures and ideas debated? Are they afraid of criticism? Are they trying to hide something? The answer to all those questions is probably, yes, and I am willing to count on Canadians, our constituents, to decide for themselves.

Yesterday my colleague from New Westminster—Burnaby pointed out just a few of the measures that we could not find anywhere in the original budget documents. These include clauses 461 to 462, which refer to some rather important legislation relating to protection for workers and workers' rights; and clauses 535 to 625, which deal with the Canada Labour Code and workers' health and safety. I am sure we will find more examples as we continue to examine this massive bill.

I want to point out that we are not necessarily against these measures. The point is that the size of the bill prevents us from being able to take time to study these new measures in-depth. That is unfair to all of us as members in the House and unfair to the constituents we represent.

Another example of measures introduced in this bill and not mentioned in any of the budget document is the proposed changes to the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. These measures have been described to me as housekeeping changes, which I suspect they probably are. They would clarify some issues with Canada's bankruptcy laws to protect commercial licence-holders and corporations. I do not necessarily oppose these changes being made. However, I have two concerns.

First, these changes were not mentioned in any of the budget documentation I have seen, so why are they in legislation meant to enact that budget? It is very much like they were just slipped in, perhaps, with the hope that no one would notice, and that is wrong. All members of Parliament need and deserve proper notice of any change to Canadian laws being suggested through the House. Proper notice would allow us not only the chance to analyze and understand the changes, but also an opportunity to offer any amendment that would make those changes better or more effective. Sliding amendments into a massive bill robs us of all of our opportunity.

My second concern is why the Liberals decided to propose amendments to Canada's bankruptcy laws, which was never mentioned in February, while failing to take on the items they did mention.

In a section of February's budget titled, “Protecting Canadians' Pensions”, the government promised to take action using a whole-of-government, evidence-based approach toward addressing retirement security for all Canadians. It also promised there would be consultations so the government could decide on what its approach would be. I think we all expected those consultations would be done by now. However, as far as we know, they have not even started and there is no plan for when they will start. Why would the government not have completed those consultations and included provisions in this current bill? That is what we expected. That is what Canadian retirees expected too.

It sure seems that the government is happy to make changes to help big corporations and wealthy executives, but when it comes down to protecting people's pensions, the Liberals are not able to act. They say “sorry, it's too complicated”.

We all know that Canadian companies use our inadequate bankruptcy laws to effectively gain concessions from their employees and escape responsibility for huge pension deficits they themselves have created. Workers are then left with the threat of reduced pensions and health care benefits.

We all know that over the last 10 years there has been an increased focus on the problems with Canada's inadequate bankruptcy and insolvency laws. The cases of Nortel, Wabush Mines, Stelco and, most recently, Sears have brought into national focus the fact that workers at large companies that go bankrupt are offered very little protection, while investors, banks, and sometimes international hedge fund operators make out like bandits.

We all know that one of the most offensive things that happens during bankruptcy proceedings is that executives give themselves huge bonuses. The very people who ran the company into the ground get big rewards, and it is done because the law allows it to happen. Nortel executives got over $200 million in bonuses, Sears executives $9.2 million and Stelco executives $1.2 million while at the same time pensioners were asked to take cuts to their medical benefits.

When I go across Canada for town halls, I have tell the people this. They always come back and ask if I am kidding them, and I have to tell them that I am not, that this really happens, because the law allows it to happen. We know these abuses are not right and that our laws allow for the theft of workers' and retirees' pensions and benefits. Canadian workers and retirees know it is not right, and they are demanding that the laws be changed. Therefore, Canadians need to ask themselves why the government refuses to act to protect them.

It is not too late. The government can take action now. The NDP will be pushing the government to do the right thing, to amend the bill and put an end to pension theft. Canadian workers and their families deserve no less.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:45 p.m.
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NDP

Karine Trudel NDP Jonquière, QC

Madam Speaker, I thank my colleague for her question and for asking it in French.

I would have liked to see some environmentally sustainable measures as well as innovative, keystone projects in Bill C-86. The government is rather tight-fisted in that respect, and yet it had no problem buying a 65-year-old pipeline and investing so much of Canadian taxpayers' money in that.

Why are there no innovative, keystone projects moving towards green energy, projects that would bring people together and give them hope?

A couple weeks ago, I attended a conference organized by the Association forestière Saguenay—Lac-Saint-Jean around the theme of the boreal forest and climate change. All the researchers who presented unanimously agreed that we have less than 12 years. We are at T minus 11 years. Urgent action is needed.

In an omnibus bill that is over 850 pages long, I would have expected to find concrete measures as well as innovative, keystone projects to fight climate change and also to give future generations some hope.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:45 p.m.
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NDP

Karine Trudel NDP Jonquière, QC

Madam Speaker, I thank my colleague for his wonderful question.

As he just mentioned, the bill has 850-odd pages. We have been talking about pay equity for more than 42 years. If pay equity is so important, why did they not split Bill C-86? Why not introduce a single bill on pay equity? That would allow all Canadians to follow the debates, read the bill and really understand it.

This is an omnibus bill. The government promised us transparency, but that is not what we are seeing. In committee, members will have 13 hours to ask questions. We have done the math. Given the number of pages, clauses and paragraphs—a number we cannot exactly pin down—we will have an average of nine seconds to read and understand each clause. We have also just learned that time allocation will be invoked. That is unacceptable.

Therefore, if the pay equity bill was that important to our feminist Prime Minister, the Liberals would have introduced it as a stand-alone bill and we could have debated it here in the House all in one go.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:30 p.m.
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NDP

Karine Trudel NDP Jonquière, QC

Madam Speaker, I will be sharing my time with my wonderful colleague from Hamilton Mountain.

The first thing I want to address is the length of this bill, which is 850 pages long and has many clauses. We asked all kinds of questions about how many clauses and subclauses are in the bill, but we still do not have an answer. This is unacceptable and shows a lack of respect for opposition parliamentarians and the general public.

The Liberals are clearly hoping the opposition will drown trying to wade through this massive bill. This tactic is nothing new, as we saw the same thing with the former Conservative government. However, at the time, the Liberals were vocal critics of such bills. Now, they are doing the same thing. As I have said many times in the House, the more things change, the more they stay the same, unfortunately.

Omnibus bills subvert and evade the normal principles of parliamentary review of legislation. The longer a bill is, the harder it is for opposition members to do their due diligence, since they do not have enough time to study the bill carefully.

As an aside, I want to thank my colleague from New Westminster—Burnaby for yesterday's point of order on this topic.

At any rate, this undemocratic strategy does nothing to improve the low regard Canadians have for politicians. I do not know how the Liberals intend to regain Canadians' confidence when they use this type of abusive tactic after promising a more transparent democracy. The way they are rushing through the study of Bill C-86 is anything but transparent.

When we examine Bill C-86 more closely, we quickly see that it fails to take bold action to address the injustices faced by thousands of Canadians. One of those injustices is pension theft. We have talked about that a lot over the past few days, and I know that my colleague from Hamilton just talked about it, but as the labour critic, this is an issue that I care about, so I wanted to take some time to talk about it in my speech.

We need to protect pensions. When a company declares bankruptcy, banks and investors make off with employees' retirement pensions through a clever financial shell game. We need to fix this major problem. This happened to Sears employees recently, and nothing was done.

There are people in my riding of Jonquière who worked for Sears. Unfortunately, they suffered a tremendous amount of stress because they did not know what would happen to their pensions and benefits. The store shut down overnight. There was nothing left. I have spoken with these former Sears employees, and they still have serious concerns.

Tolerating these dishonest tricks is a real moral failure on the government's part. The Liberals have the opportunity to make a real difference, but they refuse to do anything about this.

Another glaring example of the Liberals' lack of will is the missed opportunity to make drugs more affordable for Canadians and save billions of dollars by bringing in national pharmacare. Canada is the only country in the G7 to have a medicare system that does not cover prescription drugs.

For years, successive commissions of inquiry led by experts have urged Canada to include drug costs in our health care program. Despite these appeals, successive Liberal and Conservative governments have made little progress on drug insurance because they lacked the will to effect change. Unfortunately, that is still the case with Bill C-86.

Public drug insurance plans in Canada have evolved and now offer relatively full coverage, but only for part of the population. The problem is not insignificant: an estimated 10% to 20% of our population does not have any health insurance.

Even if people are lucky enough to have a private drug plan, they still have to pay the deductible.

The NDP is outraged that many Canadians are forced to cut up their pills or interrupt their treatments because of the cost of drugs. That is absolutely shameful.

Canadians deserve to get the drugs they need without putting their savings, wages or health at risk. That is their right and the Liberals have denied them that right by failing to include this key issue in Bill C-86.

Another example is compensation for dairy producers who were sacrificed in free trade agreements and for the steel and aluminum industry that has been hit for months by the tariffs imposed by the United States.

As I mentioned several times, dairy producers in my riding of Jonquière are waiting for compensation. In the last agreement, for example, dairy producers had to innovate and pay out of pocket to access a program, but that is another story. There has been a 10% breach in supply management, which will result in considerable losses. Generations of farm families will be affected. I hope that the government will do something for them. The Liberals had the opportunity to do something for these families in Bill C-86, but they did nothing.

Now I would like to talk about the steel and aluminum industries because a number of small businesses in my riding are being hit by the tariffs the Americans have not withdrawn. Companies are losing lots of business and laying people off because of those tariffs.

I had the opportunity to hear from witnesses in committee this week. They came to tell us about the impact of U.S. tariffs on Canadian steel and aluminum, and they all said the same thing.

The government is trying to do the right thing, but the reality is that the Liberals are taking too long to compensate companies for the unjust and unjustified American tariffs. Wait times are long, and it takes a lot of time and resources to fill out the necessary forms. As everyone knows, these businesses are crucial to economic growth, to the survival of good Canadian jobs and to the prosperity of our communities.

Now back to agriculture and supply management.

One after another, the government opened three breaches in supply management, but Bill C-86 is absolutely silent on the subject.

I had a chance to talk to people from the Canadian Federation of Agriculture who told me they are in dire need of cash. Farmers are not interested in programs. That bears repeating often to make sure the government here in the House of Commons gets the message and does something to safeguard our family farms and our food sovereignty.

The government is also putting our rural communities on the back burner when it comes to integration and development. The Liberals are showing once again that they do not have the courage to address the inequalities between rural regions and urban centres. Some very simple examples of that include mobile phones and high-speed Internet access. Here in Ottawa, it is very easy. When we turn on our phones, we have everything we need. We can access information and download things very quickly. However, things are very different in rural areas. The municipalities of Lamarche and Labrecque are being penalized and that is hindering their expansion and making it harder to keep people from leaving.

Time is running out, but I still have a lot to say about this very large bill.

A number of aspects of the bill, including pay equity and pensions, should have been dealt with separately. These are very critical, very important issues. My colleague from New Westminster—Burnaby asked that the bill be split, and that is what should have been done.

I look forward to my colleagues' questions.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:15 p.m.
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Liberal

Majid Jowhari Liberal Richmond Hill, ON

Mr. Speaker, today I rise to address this chamber on the provisions of Bill C-86 that amend the Canada Business Corporation Act, the CBCA, and to state my support for Bill C-86.

Corporations are a pillar of the economy. Despite drastic changes to the marketplace, they remain engines of economic growth, innovation and jobs. In almost all cases, corporations serve the legitimate commercial purpose of their owners, the vast majority of whom are hard-working Canadians. In particular, corporations are a conduit through which individuals can make strategic investments and take calculated risks without jeopardizing their personal financial security and that of their families. In return, this helps to ensure the free flow of commerce, innovation, employment and prosperity.

Even though the word “corporation” tends to make us think of multinational companies headquartered in giant office towers, the reality is that most corporations are small businesses with relatively simple ownership and governance structures. I owned one of those prior to becoming a member of Parliament in Richmond Hill, and 85% of the small businesses in my riding could fit into that model very well.

Unfortunately, as with many things, it is also possible for a few ill-intentioned individuals to use corporations for improper or illegal ends. For example, an individual could attempt to hide illicit activities, such as money laundering, tax evasion or even terrorist financing by concealing these activities within the operation of a legally separate and distinct corporate entity with a byzantine ownership structure. Needless to say, any abuse of this sort in Canada harms Canada's reputation as a safe, fair and competitive place for doing business and casts the exceedingly far greater number of legitimate Canadian businesses in an unjust light.

I am sure that members are all aware of the recent reports about snow washing, the practice of using Canada as a base for corporate criminal activities, hiding behind our country's solid international standing. Our government is committed to curbing and deterring this type of abuse.

Canada is a member of the Financial Action Task Force, the FATF, an intergovernmental body that has set standards on transparency for corporate control and beneficial owners, that is, those who truly and ultimately own or control businesses, no matter what intermediaries they may have in place. The FATF standards require that appropriate authorities have timely access to accurate and current information about who ultimately owns and controls corporations in order to combat those criminal activities that can be perpetrated through the misuse of corporations and their ownership structures.

While we have made important efforts to curb these bad practices through our financial and taxation regimes, neither our federal corporate statute, the CBCA, nor its provincial and territorial counterparts require corporations to assemble information about their beneficial ownership. It is important that we reinforce our efforts in other areas with these changes to corporate statutes.

I mentioned the provincial and territorial laws just now. Incorporation is an area of responsibility divided between the two levels of government and it so happens that the vast majority of Canadian corporations, some 90% approximately, are incorporated at the provincial and territorial levels, leaving only some 10% of businesses incorporated federally under the CBCA. The provincial and territorial corporate laws under which the 90% of corporations fall are very similar in substance to the CBCA, but Parliament cannot alter them.

This means that any effort to correct a gap in corporate law has to be a team effort. The government must collaborate with the 13 provincial and territorial jurisdictions to make similar improvements in each respective statute; otherwise, we run the risk of asymmetrical regulation that can be exploited by wrongdoers.

Our 2017 budget recognized this, calling for collaboration between the levels of government to devise a strategy to shore up and strengthen our corporate landscape, and collaborate they did. A working group representing all 14 Canadian jurisdictions gave us an exemplary model of intergovernmental co-operation over many months, overcoming the idiosyncrasies of different legislation and operations to put together a viable plan to take an important first step in bringing more transparency to Canadian corporate structures.

Following on from the recommendations of the working group, in December 2017, all of the Canadian finance ministers agreed in principle to pursue legislative amendments to their corporate laws, with a view to putting them in place by the summer of 2019. These changes will require corporations to hold accurate, up-to-date information on their beneficial owners. Our 2018 budget formalized this commitment at the federal level.

That brings us to the proposed amendments before us today. These would only affect the CBCA, of course, but given the finance ministers' agreement, we expect the provinces and territories to follow suit in amending their constituent corporate statutes.

What the bill proposes is for privately held corporations to compile a list of those individuals who exercise significant control over them, whether through direct ownership, beneficial ownership, or other means. The law will set out criteria for who falls into this class of significant control, principally by way of thresholds as to how many and what kind of shares an individual controls.

Corporations will need to find some basic information about those individuals, some demographic data, and the how and when with respect to their exercise of control. They will take this information and put it in a register that they store in their corporate books, similar to what they do for their other shareholder information.

I would like to emphasize again that these new measures would only apply to privately held corporations. Publicly traded corporations already make numerous filings that promote transparency under provincial securities rules or stock exchange listing requirements, including about beneficial owners. These safeguards, combined with the difficulty in controlling a company with a diffuse ownership structure, mean they are not the main area of concern here.

Once this information is on hand, corporations will be required to update it at least once a year. This means doing their due diligence, taking reasonable steps to make sure the information is still accurate. As I mentioned, most Canadian corporations are small businesses with a simple ownership structure, and this should not be too difficult a task for them to handle.

We must take it one step at a time, however, and weigh our options at each stage to be sure that what we do makes the most sense for Canada and its provinces and territories. To that end, the important changes proposed by these amendments, and eventually those at the provincial and territorial level as well, set us on our path to making our marketplace safer and more transparent in corporate governance and toward maintaining our international commitments. These changes will help to enhance Canada's reputation as a place to do business and thereby further support the overwhelming majority of hard-working Canadians who own and control corporations for legitimate purposes.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5 p.m.
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Arif Virani Parliamentary Secretary to the Minister of Justice and Attorney General of Canada, Lib.

Mr. Speaker, I will be splitting my time with the member for Richmond Hill.

I am proud to rise today as the member of Parliament for Parkdale—High Park to speak on behalf of my constituents in support of Bill C-86, legislation that would entrench, among other things, pay equity throughout federally regulated workplaces in this country.

My constituents in Parkdale—High Park are dedicated advocates of women's rights. They include many who work hard in the federal civil service, in Crown corporations, in the transport sector, in banking, in telecommunications companies and in the Canadian Armed Forces. These are women whose request is very simple: equal pay for work of equal value. This is not a complicated ask. This is not a controversial ask. It is an ask simply for fairness. It is an ask to be treated equally.

This is what Bill C-86 would deliver: equal pay for work of equal value. It would deliver, at long last, a system that compensates women in federally regulated industries at the same level as men. My constituents in Parkdale—High Park deserve no less. The women in this country who have been fighting for equality for so long deserve no less.

Importantly, this is not a zero-sum game. When women receive the salaries they have deserved for so long, that does not come at the expense of men. To the contrary, men and women both gain when salaries are paid equally. Canada benefits when fairness applies throughout our federally regulated industries. Indeed, pay equity will spur economic growth in which all of us will share.

Let us start with where we are now. In Canada, women earn 31% less than men. Extensive research has shown that women with the same experience and the same socio-economic and demographic background earn approximately $7,200 less than their male counterparts on an annual basis. Years of inaction in the field of gender equality have only compounded the problem. Policies implemented a decade ago are now outdated and limit our potential to effectively include women in our nation's growth. Our government is committed to changing this, and that is why we are moving forward with proactive pay equity legislation through Bill C-86.

It is pretty straightforward to get a basic grasp of how flawed the current system of pay equity in Canada actually is. For example, the model we currently use is based on responding to complaints. This has proven to be ineffective for current times, because it puts the onus on workers to challenge pay discrimination. Bill C-86 would remove the complaint-based reactive system and replace it with a new regime that was proactive and that placed responsibility on employers to ensure that their compensation practices were balanced.

Second, as an additional obligation, the proposed legislation would require federally regulated public and private sector employers to establish and maintain a pay equity plan. This is because we understand the necessity of redressing the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes.

Bill C-86 lays out two sets of requirements, one for employers with between 10 and 99 employees and one for workplaces with 100 or more employees. According to this bill, federally regulated public and private entities would be obliged to set out specific timelines for implementation and do a compulsory review of their pay equity strategies. The bill would also permit the government to apply accountability measures to ensure that the compensation practices were consistent with the new requirements.

Further, the proposed legislation would require federally regulated employers across the banking, transport and telecommunication sectors, for example, to review their pay equity plans every five years to ensure that pay gaps had not surfaced since the plan first came into effect. If a pay gap was created, the employer would be expected to retroactively pay those female employees who were making less than they deserved.

I want to turn now to a third important component of Bill C-86. The bill would create the position of pay equity commissioner, who would have a professional team to assist in enforcing the new approaches to pay equity entrenched in the proposed legislation. This pay equity commissioner would facilitate the resolution of disputes, conduct compliance audits and investigate objections and complaints. The pay equity commissioner would have the means to impose fines should an employer be found to not be paying employees equally, and he or she would then report annually to Parliament on the administration and enforcement of this proposed legislation.

Fourth, Bill C-86 would establish pay equity standards, from the Prime Minister's office to all parliamentary workplaces throughout Canada. This is part of our whole-of-government approach to addressing gender inequality. Through this bill, for example, we would formalize our commitment to promoting gender equality and increasing the participation of women in the labour force by establishing concrete reporting requirements for analyzing budgets through a gender lens.

As the parliamentary secretary to the Minister of Justice, I am also proud of the whole-of-government work we have done under the Minister of Justice and the Department of Justice to ensure that a gender lens is applied to efforts to increase access to justice and legal reform.

Bill C-78 is a case in point. That bill, as part of our whole-of-government approach towards gender, takes specific aim at the plight of middle-class women struggling to access spousal and child support they are owed after a marital breakdown. Via Bill C-78, we would be taking steps to facilitate access to information about a former spouse's assets via the Canada Revenue Agency and their records. That would prevent spouses from hiding assets and ensure that more women were paid the spousal and child support they rightly deserve. I say “women” in this context, because we know that in this country, over $1 billion is owed in enforcement arrears to those owed spousal and child support. We also know that among the entire group in an enforcement arrears situation, 96% of the people owed money are women who are owed money by men.

I outline this example of Bill C-78 as a further example of the whole-of-government approach we have taken on this side of the chamber in terms of our approach to addressing gender inequity.

Bill C-86 is clearly an example of such legislation. It would make Status of Women a full department, called the department of women and gender equality, or WAGE.

It is well established that gender equality creates economic growth, thus entrenching the department of women and gender equality would strengthen our capacity to advance gender equality and grow the middle class through policy, programming and the support of equality-seeking organizations and community partners. The mandate of this new formalized department would further promote gender equality by breaking down barriers in respect of sex, sexual orientation, gender identity and gender expression.

Status of Women has been working on the issue of pay inequity for decades, but Bill C-86 would secure the department's place as a centre of gender expertise. It would recognize its work as a driver of economic growth and make it less vulnerable to alterations without widespread public debate and discourse. In addition, we are determined to formalize this new department to ensure that no future government ever again questions the importance of equal pay for work of equal value in Canadian society.

As I mentioned at the very outset, pay equity is not a zero-sum game. Giving to one gender is not about taking from another. To the contrary, pay inequity that has persisted for so long is actually limiting our growth. It is damaging to the development of our nation. I know this, my constituents in Parkdale—High Park know this, and our government knows this.

The “Global Gender Gap Report 2017”, from the World Economic Forum, substantiated that it will take approximately 217 years to close the economic gender gap worldwide if present trends are allowed to continue. They will not be allowed to continue, not under our government's watch.

It is essential for us to implement policies that will remove barriers that prevent women in the labour force from being fairly compensated for their work. It is critical that the Government of Canada uphold the basic principles of equality and fairness and continue to build a country and an economy that works for all genders.

From appointing the first gender-balanced federal cabinet and the first federal minister fully dedicated to gender issues, to tabling Canada's first-ever budget analyzed through a gender-based lens, to launching Canada's first-ever strategy to prevent and address gender-based violence, to an unparalleled focus on women and girls in our international development assistance, our government has demonstrated that it is committed to advancing gender equality within Canada and around the world.

Pay equity for women is long overdue. I am proud to support this bill, and I encourage every one of my colleagues in this chamber to do the very same.

The House resumed consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

Bill C-86—Notice of time allocation motionBudget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5 p.m.
See context

Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Mr. Speaker, an agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the second reading 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.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:45 p.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, it is always a pleasure to follow the dean of our caucus, the longest-serving member for Calgary Forest Lawn, who has been outraged on a few occasions by Liberal mismanagement of the economy. That is what I am going to spend a few minutes on in my remarks today on Bill C-86, the budget implementation act. There are a few aspects I am going to go through that should concern all Canadians, the biggest of which is the uncompetitiveness of our economy and how we are not ready for a global downturn. Many of the decisions of the government are putting us on a very precarious footing ahead of what could be uncertain times.

I have concerns related to the record debt levels under the current government and record deficits in a time of positive economic growth. I have called the Liberal track record on debt and deficits the Liberal double-double. Most Canadians are seeing the cost of their double-double going up, when they think of Tim Hortons. The Liberal double-double is deficits and debt. What is crazy about it is that it is being fuelled even with a roaring economy and despite the fact that Liberals are raising taxes countless times, making us uncompetitive. They are taking more money from Canadians and yet still cannot balance the budget.

Because this is a budget implementation bill and because my friend from Winnipeg North, the deputy House leader of the Liberal Party, is here, I want to remind him of the fact that when he says things in the House, they will come back to haunt him. I have mentioned many occasions in the previous government when, as a Liberal opposition member, he would almost howl at the moon. It is the day after Halloween. He would howl about the use of time allocation or omnibus legislation. He called them assaults on democracy several times. He has given me so much material.

I want to keep the member for Winnipeg North on his toes, so I am choosing a quote from this Parliament with respect to his comments. As a government member, he said this, on June 5, 2017, “Member after member has talked about this particular bill being an omnibus bill. Again, when I was standing up and the member made reference to some of my quotes, they were not 300-page documents, they were more like 600-page or 900-page documents, which affected laws that had nothing to do with the budget.” I thank him. This budget implementation bill is 850 pages, so it fits right in the sweet spot that he said was outrageous with the previous government. In fact, it is at the upper range of the outrageous levels he even talked about earlier in this Parliament. It is amazing. This bill is chock full of things that have nothing to do with the budget.

The Liberal member for Sackville—Preston—Chezzetcook quoted the veteran ID card that I announced as minister, the extension of the NDI 75 card and making sure that all veterans got it, not just those serving after 10 years. I was proud to make that announcement in Fredericton alongside my good friend from the Canadian Armed Forces and Royal Military College, Brian MacDonald. He was an MLA in New Brunswick and I thank him for his service in uniform and in the assembly in New Brunswick. We announced that. I was there. I can send the minister the picture of the cards we were holding up. That is in the budget implementation bill.

When the member for Winnipeg North rises to ask me a question or make a comment, which he is likely to do, statistics show he likely will, I would like him to apologize to the chamber for feigned outrage in this place over the very type of omnibus legislation he is now being tasked by Mr. Butts in the Prime Minister's Office to defend. Even at 850-plus pages, it is at the outer range of what he said was clearly unacceptable.

Beyond that, let me go back to the double-double of the Liberal Party: the debt and deficits. There is $60 billion of debt accumulated by the government in good economic times in three years. In a positive economy, where there is economic growth, that is a Canadian record. Liberals should not be proud of that record, because that debt and the deficits they are running on an annual basis are future taxes for my children.

They are spending recklessly at a time when they should be putting some away for the clouds looming on the horizon. They are not, and virtually none of it was the infrastructure money they promised.

Members will recall, in the last election, when the member for Papineau changed his fundamental economic views halfway through an election to outfox the NDP. He started the election saying that they are the party of Paul Martin and balanced budgets. Midway through, he said they were going to run deficits, but Canadians were not to worry because it would be no more than $10 billion and they would be in balance by 2019. All of that was out the window within three months. The Liberals have run deficits in the $20 billion or $20 billion-plus range every single year.

What is more egregious is they received $20 billion last year in extra revenues because the economy is strong because the Conservative Party put the economy on a footing such that when the American economy recovered, which it has, we would be booming again. Therefore, when the Liberals quote how Canada's growth was tepid during the global recession, they should go and see how our G7 allies were doing. We were the only one with a balanced budget, the only one that balanced our budget without raising taxes. We lowered taxes. Even the tax reduction of the small business rate that we had planned to 9%, the Liberals cancelled at first. Now they praise it, as they are returning it to a level we had pledged it to go to back in 2014.

It is almost comical to hear members of the Liberal Party talk about the budget, competitiveness and deficits. Their policy and the underlying philosophy change by the moment, all based on opportunity for a photograph and the hope that they can grow the economy from the heart outward. Do members remember that one? The Liberals said that the budget will balance itself and that they will grow the economy from the heart outward. They can tell that to the Alberta oil patch workers or the engineers or geologists who are out of work, or property companies that now see high vacancy rates in Alberta because the Liberals have botched the resource economy.

In fact, the Canadians they failed the most in the resource economy are our indigenous peoples. The northern gateway pipeline was a one-third owned pipeline. Our country has a commitment to make sure first nations and Inuit play a role in our economy and benefit directly, and they would have benefited with northern gateway. The Liberals cancelled that on a whim and brought in Bill C-69, which led to the cancellation of energy east, and then they were forced to buy Trans Mountain when the company was leaving Canada because we are not competitive.

In fact, Jack Mintz, the leading tax authority in Canada, warned of a “competitive tsunami” because in three years, while racking up $60 billion in debt for our children and grandchildren, the Liberals have raised taxes on everyone. They have raised personal income taxes, corporate income taxes and payroll taxes and they have introduced a carbon tax, all in the middle of good economic times. In the last year, the United States has been going in the opposite direction. This is why there is a competitive risk. It is all due to the Liberals' mismanagement of the economy.

People are not to just believe me or Jack Mintz. Douglas Porter, the chief economist of BMO, the Bank of Montreal, said, “I think Canada has a very weak competitive position. I think we're going to get crushed in the next recession”. Crushed, because they have squandered the opportunity of good times. The Liberals have put us on an uncompetitive footing so that our small businesses are going to be paying a carbon tax that the Liberals are omitting large emitters from. They are making suburban commuters in Whitby, Ajax, Pickering, Uxbridge and Peterborough pay for their schemes that the parliamentary secretary acknowledged will make businesses uncompetitive, and will not lower emissions.

The very fact that our future competitiveness is hanging in the balance should concern Canadians. It should also concern them that this budget bill does not address the underpinnings of that competitive disadvantage and of our problems getting projects like pipelines done. I would like the Liberals to stand in this House and put forward a plan to get our resources to market.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:15 p.m.
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Liberal

Darrell Samson Liberal Sackville—Preston—Chezzetcook, NS

Mr. Speaker, it is a pleasure to stand in the House today to speak to Bill C-86, the budget implementation act, 2018, no. 2.

As members know, the riding of Sackville—Preston—Chezzetcook is on the outskirts of Halifax-Dartmouth. It is a community where we have young families, fishermen, the largest black cultural centre and many Acadians. It is a diverse community that I am very proud to represent.

When we talk about budget 2018 and previous budgets by our government, it is clear that the path we are on is to build a strong economy for all Canadians. In my speech today, I want to touch on three major areas in this budget implementation bill: what it means for families, what it means for our veterans, and women's potential economic benefit when they are much more involved in entrepreneurship and building strong companies.

I cannot go into the text before talking about how our economy is doing now.

After three years, we have seen the Canadian economy grow and continue to prosper. Over 600,000 new jobs have been created. It is a strong sign of our government moving in the right direction when people want to invest and when we are creating good jobs for the middle class.

As well, we should note that the unemployment rate in Canada has dropped from 7.2% to 5.7%. Yes, members heard me correctly. At 5.7%, it is the lowest unemployment rate in Canada in the last 40 years. It is very impressive.

I also want to talk about the Canada child benefit. This is an investment in Canadians and in Canadian families. It is an investment in young families, which is extremely important. The riding of Sackville—Preston—Chezzetcook is one riding out of 338 in Canada, and in my riding alone the families are receiving $5.2 million per month. That is $60 million per year in the riding of Sackville—Preston—Chezzetcook.

I am not the only lucky one, because all 338 members of Parliament have this Canada child benefit going to their constituents, which means anywhere between $40 million and $80 million invested in families in their ridings.

Speaking about families in this budget implementation bill, I want to talk about the EI parental benefit. That is a very important benefit that recognizes some of the challenges in life. It is creating more flexibility for Canadian families. If they split or share those benefits, we are adding five extra weeks of benefits.

As well, when talking about families, we have to talk about pharmacare. Our government is moving forward. We have established an advisory committee that will report shortly. We also had the permanent committee present its report on pharmacare. I believe we will see some positive news on pharmacare very soon.

We are also introducing, of course, the new Canada workers benefit. This new benefit will add 300,000 Canadians to the middle class. That means over two million Canadians will now have access to this benefit, which is very important. With BIA 2, we will ensure that these individuals do not have to apply; it will happen automatically, once again making life easier for Canadian families.

I also want to talk about some changes in the labour code that will provide five days of paid leave to victims of family violence employed by the public service, as well as five days of personal leave, three of which would be paid. Those are major changes that will make life better for Canadians.

Touching on veterans, this is a very important topic for me. My riding has the largest number of veterans and military per capita, with 23% being veterans. We have introduced the option of a pension for life. Veterans already have a lump-sum pension, which we had introduced, but now they will have the option of a pension for life.

Depending on their pain and suffering, veterans could have up to $1,150 a month. If they have additional pain and suffering, they could receive another $1,500 a month, or a salary replacement of up to 90%. That is what our government is doing to support our veterans and their families. I hear when I am travelling around my riding how important it is for veterans to have access to that.

I have to talk about the ID card for veterans and a story, believe it or not, that I still have trouble with. When veterans tell me this story, it is painful to hear: The former Harper government cut the ID card for veterans. If anyone can help me understand that, please do so, because that is amazing.

Our government has just introduced a new ID card. The new ID card will have a veteran's photo and rank on it, as well as his or her service record and service number. It will not only recognize veterans' service, their hard work and what they have done for Canadians, but it will also help them access programs and services, which is extremely important.

Talking now about women, we have invested in a new entrepreneurial strategy for supporting women in industry. We have invested $1.65 billion over three years for new financing opportunities for women in industry, and we have also invested $150 million through regional tailoring of the needs in rural communities across Canada.

Also, pay equity is included in this budget implementation bill. That is extremely important. When the opposition talks about the 400 pages, it is because 200 pages alone talk about pay equity and all the consultation we have done. Our government will bring legislation forward in the very near future in this area.

In closing, I want to say that the riding of Sackville—Preston—Chezzetcook and the province of Nova Scotia will greatly benefit by many of these investments.

However, talking about rural broadband, an Internet connection for rural communities is essential if we are going to allow those communities to prosper and grow.

We have seen also the investment in home care and mental health. Those are big investments that will help all Canadians, including Nova Scotians and of course the people in the riding of Sackville—Preston—Chezzetcook.

We also support families with challenges such as dementia and autism. We have seen some investment in those areas as well.

This is moving forward. This is a strong budget that we are implementing here. It is consistent with the other budgets that we brought forward and I am very pleased to be a member on this side of the House supporting Canadians, supporting the middle class, supporting veterans, supporting families, supporting youth and so on.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:10 p.m.
See context

NDP

Karine Trudel NDP Jonquière, QC

Mr. Speaker, the pay equity bill was introduced this week. We have been calling for that bill for several months now. There are even women's groups that have been calling for federal pay equity legislation for 42 years. I would remind hon. members that the Government of Quebec passed pay equity provisions 22 years ago.

However, this omnibus bill, Bill C-86, contains more than 850 pages. It is a very large bill and we have very little time to do a clause-by-clause review or a detailed study.

What does my colleague think of the fact that Canadian women who work in the federal government have to wait another four years before they can benefit from pay equity?

What does she think of the fact that are no concrete provisions to ensure that the bill goes forward and that businesses have the necessary means to implement the provisions?

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 3:45 p.m.
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NDP

Karine Trudel NDP Jonquière, QC

Mr. Speaker, yesterday, my colleague from New Westminster—Burnaby raised a point of order about Bill C-86, which is more than 850 pages long and includes several bills. We were simply asking for this omnibus bill to be split.

I would like to know what my colleague thinks of the government's tactics. Canadians are losing faith in the government.

We are unable to properly debate in the House the various bills contained in Bill C-86.

I would like to hear what he has to say about that.

The House resumed consideration of the motion that Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

Business of the HouseOral Questions

November 1st, 2018 / 3:10 p.m.
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Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Mr. Speaker, this afternoon, tomorrow and next Tuesday, we will continue debate at second reading of Bill C-86, the second budget implementation act, 2018.

Next Monday shall be an opposition day.

On Wednesday, during routine proceedings, under ministerial statements, the Prime Minister will deliver a formal apology to the Jewish refugees of the MS St. Louis and its passengers.

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 1:40 p.m.
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Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Madam Speaker, it is a great pleasure to rise today to speak on Bill C-86, which implements into legislation a number of provisions that were laid out in budget 2018.

Today, I will be splitting my time with my hon. colleague and friend from Saint Boniface—Saint Vital.

When I speak to this bill, I would like to focus my thoughts on the hard-working middle-class families in my riding of Vaughan—Woodbridge, who, like Canadians from coast to coast to coast, know that our government is working for them to build a stronger economy and a healthier environment, not only for today but also for generations to come to ensure that our children, much like my children, will have a prosperous future and confidence knowing that our government made the right decisions for their future.

I also wish to salute the entrepreneurs in the city of Vaughan, who run over 12,000 small and medium enterprises. They know they have a strong advocate in me as their MP and in our government to ensure they have the tools to compete and succeed both domestically and globally.

Our government is committed to building a strong middle class and helping those working hard to join it. We know the results to date and are very proud of our record: a record low unemployment rate; over 500,000 or 600,000 new jobs created in the last three years, the majority of which are full time; and, amazingly, over 500,000 job vacancies in Canada. A majority of the jobs that have been created in this great country have been from the private sector, another thing we should be proud of.

There are many elements in Bill C-86 that I could speak to, everything from the pay equity act to the Canadian gender budgeting act to the wage earner protection program to the enactment of a department for women and gender equality act, which, as a father of two young daughters, I am very proud of. It would establish a department for women and gender equality to assist the minister in ensuring that we as a society and a government advance equality with respect to sex and sexual orientation. There are even amendments to the Bank Act to strengthen provisions that apply to a bank in relation to the protection of customers and the public. Canadians expect and deserve the strongest consumer protection standards when dealing with their financial institutions and we will deliver on that.

However, I wish to focus my time this afternoon primarily on one aspect of Bill C-86, which for me represents our government's commitment to building a more prosperous country and that would ensure that all Canadians benefit from economic growth and a more inclusive and fair society.

Division 21 of part 4 of Bill C-86 enacts the poverty reduction act, which sets out for the first time in our country's history targets for poverty reduction in Canada from coast to coast to coast. The poverty reduction targets our government has put forward are ambitious and realistic, and are lifting and will lift hundreds of thousands of Canadians out of poverty from coast to coast to coast. Our government aspires to achieve a poverty reduction target of 20% below the poverty level in 2015 by 2020, and 50% below by 2030. These targets are not just numbers, because behind them are the stories of hard-working Canadians from all walks of life and all parts of this great country. Canadians are ambitious and steadfast. They expect nothing less from their government. When we look at the measures behind the poverty reduction act we can not only be proud of the work we have done as a government but, more importantly, also of the work we have done as a country.

The pillars of our poverty reduction strategy are based on the following: dignity to lift Canadians out of poverty by ensuring that basic needs are met; opportunity and inclusion to help Canadians join the middle class by promoting full participation in society and equality of opportunity; and resilience and security to support the middle class by protecting Canadians from falling into poverty.

How do we achieve these targets? Let me list the measures that our government has put in place: the transformational Canada child benefit; a 10% Increase in the guaranteed income supplement; the Canada workers benefit; and the profound national housing strategy, a $40 billion plan over 10 years, that will see housing needs reduced or eliminated for over half a million Canadians across this country. In my riding of Vaughan—Woodbridge, we will see more than 150 units of affordable housing built in 2019.

Moreover, investments in public transit under the PTIF 1 and now PTIF 2 will deliver sustained secure funding for public transit across Canada.

There is also the Canada workers benefit, which in budget 2018 provided a tax benefit that will put more money in the pockets of low-income Canadians. In fact, it is estimated that over 70,000 Canadians will be raised out of poverty, and over two million Canadians will receive assistance, from the CWB. Someone making $15,000 a year will receive $500 more from the CWB in 2019 than in 2018.

In Bill C-86, our government will enact changes that will ensure that an individual who is eligible to receive the Canada workers benefit can receive the benefit without having to claim it. Enrolment will be automatic. No Canadian will be left behind by our government, and the automatic enrolment mechanism that we have included in Bill C-86 is one further step to ensure this.

In achieving our poverty reduction targets, we also need to consider the transformational social program that we introduced, the Canada child benefit. We are delivering it to families who need it, not millionaires but hard-working, middle-class families across this country. In my riding alone, it equates to about $5 million a month, helping over 17,000 children and 9,000 families, with an average payment of over $500. That is real change that is working for Canadians from coast to coast to coast. That is real change that is benefiting middle-class families from coast to coast to coast.

We also indexed the CCB two years ahead of schedule, which will mean hundreds of extra dollars for families to help them pay for their kids' sports activities, to save for their education or buy clothes for the upcoming winter. It is estimated that the CCB will lift nearly 300,000 children out of poverty.

For our most vulnerable seniors, our government has raised the guaranteed income supplement by 10%. Promise made; promise kept. In my riding of Vaughan—Woodbridge, over 2,000 seniors received, on average, over $800 extra per annum. That is real change, helping real Canadians, our most vulnerable seniors. Furthermore, we came to an agreement on the CPP, the Canada pension plan. We enhanced and strengthened it for future generations.

There are other measures that we have instituted, but I would like to talk briefly in my remaining time about two measures in Bill C-86. One deals with the Canada Labour Code. For many of us who follow labour relations, there was an element in labour relations dealing with contract flipping or contract re-tendering. It was one of these things that was really unfair to the middle class, unfair to hard-working workers. We have addressed that.

It is contained in division 15 of part 4 of this bill. Our government will address continuity of employment issues when a work, undertaking or business becomes federally regulated, or in case of contract re-tendering. This is important, as there are instances where employees obtain a new employer through a contract tendering process, and then face much lower wages for exactly the same job.

Anyone who follows what happened at the airport in Toronto knows that this happens to many workers there, where they will be employed by an employer, making $20 an hour, and a contract re-tendering will come up and they will have to go to a new employer who imposes a much lower wage rate. It is unfair. We have addressed it. The legislation is in line with that in other jurisdictions, including the U.K. and Australia.

I will not read the pertinent section of the bill, but I encourage my colleagues from all parties to do so. It is groundbreaking, and it will ensure that we help all middle-class Canadians, all hard-working Canadians, including those workers who face a contract re-tendering.

In Bill C-86 and prior budgets, we have also addressed the issue of tax fairness and tax avoidance. Our government has invested approximately $1 billion in the Canada Revenue Agency. This morning there was an article in one of our national newspapers applauding our government for taking the concrete measures that are in Bill C-86, when looking at the issues of tax fairness and tax avoidance. We have a prosperous economy, Canadians are working at record levels, and we have the highest labour force participation rate for women in our country's history, but we must ensure that all individuals and organizations pay their fair share, including large corporations and wealthier Canadians.

We are preventing banks from creating artificial losses. We are enhancing tax reporting requirements for trust funds. We are strengthening rules for limited partnerships. We are cracking down on tax-free corporate distributions. We are also increasing ownership transparency.

It has been a pleasure to speak on Bill C-86. There are a number of great measures in this budget implementation act. I did not even touch on the pay equity bill, which will be transformational for millions of folks in this country. It will reduce the gap between what men and women are paid, which we must do. It is the right thing to do. It is the fair thing to do. It is the thing to do for my two daughters, who are at school today, for their futures. I am proud of our government that has acted on so many fronts.

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 1:40 p.m.
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Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Madam Speaker, my colleague raises a very important point.

We should be taking the garbage out of our lakes and rivers and not putting it there in the first place. Take Montreal with the billions of gallons of raw sewage it has put right in there. That is pollution. It is not carbon dioxide.

Real pollution, like my colleague described, is blue algae. We have it in the Ottawa River, and now maybe the Minister of Environment will pay attention because it is also in the Rideau Canal right down her alley. However, we are suffering from this blue-green algae all around. That is pollution. It is right in front of us and it is affecting health as well as the economy.

I want to go back to the Minister of National Defence, the temporary one, because the responsibility for Canadian women and men in the Canadian Forces should not be parcelled out to another department just because the current minister is not up to the job.

Bill C-86 is a disaster and tax-weary Canadians look forward to a change in government.

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 1:25 p.m.
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Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Madam Speaker, as the federal member of Parliament for the Ottawa Valley riding of Renfrew—Nipissing—Pembroke, I welcome this opportunity to inform Canadians about the deteriorating state of the nation's finances, as demonstrated by the legislation before Parliament today.

I begin my comments by reiterating clearly that Conservatives believe in clean air, low taxes and a healthy economy. A clean environment and well-paying jobs are only possible when taxpayers are treated with respect. Bill C-86 is 850 pages of failure to treat taxpayers with respect. It is time to stop the policy of the Liberal government to spend this country into bankruptcy.

While claiming to affect climate change in Africa with billions of Canadian taxpayer dollars may assuage the Prime Minister's vanity and his project to buy a seat on the UN Security Council, his new carbon tax or pollution tax or whatever new name he dreams up for his massive tax scheme this week, next week or next month does not change the fact that a tax is a tax is a tax. Excessive deficit budgets year after year with no credible plan to balance spending with revenue are behind the carbon tax policy.

The Gerald Butts talking points failed with Dalton McGuinty and the thoroughly disgraced Kathleen Wynne, and at the end of the day, will fail the Prime Minister. Kevin Libin, in the Financial Post, accurately summed up the carbon tax grab as a “wealth redistribution scheme”. He wrote:

It certainly will take money from consumers, businesses and high-income families and reallocate it to others using tax rebates (minus, of course, the cost of administration, which is never zero). But it’s so much more irrational than that. More accurately, it’s a plan to raise business costs and give imports an advantage at the very moment that our economy is already burdened by a tax regime judged far less attractive than those of our economic competitors, using levies that economists agree are too low to seriously affect emissions but are enough to harm the economy.

Using the concern Canadians have for the environment as cover for the Liberals' wacky left-wing wealth redistribution scheme failed Ontario. Phony concern for the environment will be exposed this time also. Canadians are smart. They know a tax grab when they see one. Contrary to claims being made about the new carbon tax being revenue neutral, Canadians are not fooled by that nose stretcher.

The federal carbon-taxing system sets out two mechanisms for taxing carbon: one, a charge on fossil fuels for fuel producers, distributors and importers, and two, an output-based pricing system for industrial facilities. Fuel charges specific to each type of fuel, including gasoline, aviation fuel, natural gas, coal and combustible waste, among others, are meant to reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent in 2019, rising by $10 per tonne every year to reach a total of $50 per tonne in 2022. For example, a carbon price of 4.42¢ per litre would apply to gasoline as of April 2019, and would rise to 11.05¢ per litre by April 2022. Taxes on fuel for home heating and for transportation are examples of direct taxes.

While the government has indicated that 80% or 90% of the direct carbon taxes collected may trickle back to the households as a re-election bribe with the other 10% or 20% handed out as exemptions to others hard hit by the new carbon tax, what is not accounted for are the indirect carbon taxes. The HST that would be added to the carbon tax is an example of an indirect tax. These indirect carbon taxes, which represent about 70% of the new carbon tax revenue that would be collected, would increase the cost of other consumables by about $522 per household. Therefore, while the election bribe may return an amount of what has been paid by families directly, Canadians would get nailed by the hidden taxes, which are more difficult to calculate.

For taxpayers in Ontario, they have seen this story before with electricity prices. First, Ontario ratepayers were told that huge increases in the price of electricity were necessary to pay the owners of industrial wind turbines, who just happen to have close political ties to the Liberal Party. These taxpayers were told it was necessary to stop man-made global warming, or I mean climate change, or is it pollution, or whatever other label the Liberal Party thinks will fool people. Then the carbon tax that was added onto Ontario ratepayers' electricity bills was given a misleading title of “global adjustment” to fool some gullible consumers that somehow this amount was not just another tax. With this, the Liberal Party proceeded to increase the carbon tax on electricity, ending up in a new term being coined in Ontario of “energy poverty”.

Ontario is now burdened by some of the highest power rates of any jurisdiction in North America, throwing households into energy poverty and forcing industries to close shop or move to the United States. Ontario taxpayers have been suffering with carbon taxes for years.

This week, in my riding of Renfrew—Nipissing—Pembroke, Sandvik Materials Technology in Arnprior announced it will be closing its doors and moving production south to the United States by the end of 2019. Sandvik, which makes steel pipes and tubes, currently employs 160 people at the Arnprior facility. It opened in 1975 and now, after 43 years in business in Canada, those jobs will be lost, thanks to Liberal policies. With high electricity prices, the tariff on steel, which the government has failed to resolve even after selling out Canadians with the failed NAFTA negotiations, rising interest rates, and the massive hike in taxes that is coming with the new carbon tax, the line-up at the border is only going to get longer.

Bill C-86 should have been a plan to control government spending. The fiscal policy of the government, which has been essentially to keep spending levels and deficits elevated until1 at least after next year's federal election and beyond, is not sustainable. The Liberal Party has been taking on debt for little gain.

Thanks to the spillover effect of a booming American economy, our economy is running at capacity, but rather than directing the Bank of Canada to raise interest rates to slow our economy, a faster drawdown on deficits would ease pressure for rate hikes. This would help the country's most indebted households, who are disproportionately young urban families with huge mortgages in places like Toronto. An Environics Analytics study has already calculated that rising interest rates will squeeze out of households an extra $2,516 each year. Add higher mortgage payments to the new Liberal carbon tax that is set to escalate every year and all the other tax increases and the future looks bleak for average middle-class Canadian families.

According to Craig Wright, the chief economist at the Royal Bank of Canada, “At this point of the cycle you want to see surpluses and paying down debt.” The recent billions in extra revenue the government collected from Canadians should have been used to pay down debt, not given to other countries as a bribe for a UN Security Council seat.

Canada's deficits are out of control. Canada spent the financial reserve it needed to fight the inevitable next recession.

The Liberals cannot even get the basics right when it comes to the day-to-day operation of government. At 850 pages, Bill C-86 is sparse when it comes to detailing how the federal government intends to correct the poor service Canadians are getting.

This legislation talks about “ensuring that social assistance payments under certain programs do not preclude individuals from receiving the Canada child benefit”. This issue should be addressed separately, not buried in 850 pages of an omnibus budget bill. The government broke its promise to never present omnibus legislation to Parliament, just like it broke its promise for modest deficits. Today's deficits are tomorrow's taxes.

Christopher is an average single parent in my riding. He works at a grocery store. Unlike the one-percenter finance minister, the member for Toronto Centre, he does not vacation at a villa he owns in the south of France. Christopher submitted an application to receive the Canada child benefit for his teenage daughter on October 15. On October 30, he was informed that his application was sent for processing and that it would be at least mid-January 2019 or later before it would be looked at. This is something new.

Under the Conservative government of former prime minister Stephen Harper, this process took 21 days. Now it takes three to four months, if one is lucky, with the same workforce. The Liberal government has added a new level of stupidity that is slowing everything down.

Heaven forbid if Christopher had not contacted his member of Parliament to help with the application rather than trying to apply for the benefit on his own. First sit on the phone for hours, leave a message and maybe get contacted a week later. Staff on the phone lines are the newest employees who do not know the programs—

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 1:10 p.m.
See context

Conservative

Kevin Sorenson Conservative Battle River—Crowfoot, AB

Madam Speaker, I will be splitting my time with the member for Renfrew—Nipissing—Pembroke, a colleague who, like me, was elected in 2000.

I am very pleased to speak to Bill C-86, the Liberal government's budget implementation act, 2018.

When we stand in the House to speak to bills such as this one, we do a synopsis of the bill and ask how it is going to help future generations and how it is going to help right now. Regrettably, the more we look at it, the more we realize there is nothing in this bill that can secure the future of our country for generations to come.

What we have here is a simple continuation of the Liberals' failed policies, especially their failed fiscal policies. There has been deficit after deficit with no end in sight, despite the Prime Minister's promise in the 2015 election that he would only run small deficits. I sincerely hope that in 2019 Canadians will not forget how promise after promise has been broken by the government.

The Liberals promised a very small deficit of $10 billion a year, but what we have now, as revealed by the public accounts for 2018, is a deficit of $19 billion, which as the Auditor General points out is essentially the same amount in percentage as the previous year. Our country's net debt is $759 billion. The net debt is the amount by which the government's liabilities exceed the value of its financial assets and revenue.

The Auditor General also reported that revenues were $313.6 billion, an increase of $20.1 billion over the previous year. What is truly shocking is that the government did not use the increase of revenues to eliminate the deficit, but rather, in true Liberal fashion, continued to increase its program spending.

Why has such grave concern been expressed about the many families across the country who are unable to balance their household budgets and are accumulating debt at an alarming rate, while the Liberal government is unfazed by the national debt that it is mounting?

When we were in government, household debt was one of the biggest concerns to a growing economy. Household debt in Canada increased to 171.3% of gross income in 2018, up from 170.20% in 2017. Household debt continues to increase in our country.

Household debt to income averaged 127.31% from 1990 to 2018, reaching an all-time high of 173.34%. There have to be warnings as to what could happen in the future with household debt increasing in this way, especially as we see our Governor of the Bank of Canada raising interest rates.

We should be very concerned about these statistics, and equally concerned about the national debt, but we also need to be concerned that the government does nothing to address that. The Liberal government must stop borrowing money that other people will have to pay back, including Canadians who are not even born yet.

However, we have a Liberal government that has no plan to get out of debt and no plan to stop overspending. It has no plan to balance the books. It has no plan to start paying down the accumulated national debt. All the Liberal government can manage to do is pay interest on the massive amounts of money it has borrowed.

While it is failing in this regard, and in so many other ways too, this government continues to raise taxes on the middle class. Since 2015, the Liberals have cancelled tax credits and raised CPP and EI premiums. The price of everything continues to rise: transportation, fuel, groceries and rent, and very soon Canadians will be suffering under a carbon tax on everything. That carbon tax will not be used to reduce carbon emissions. Rather, it will be spent by Liberals on their millionaire friends and their pet projects.

The Liberals' so-called new tax bracket to tax the top one per cent of income earners has not worked. After the Liberals hike taxes on the wealthy, we find out the wealthy top one per cent of income earners are actually paying a billion dollars less in taxes per year than they did before the Liberals tried to increase their tax level.

The middle class did not receive any of the revenues from the top one per cent of income earners because there was not enough revenue raised by hiking taxes on the wealthy to pay for the programs and services the Prime Minister implemented. Those programs and services did not lead to real and sustainable job creation within the private sector.

The Liberals bragged about the income and the employment rate, but 11 out of 12 jobs that have been created under the current government are in the public sector; they are government jobs. Let us think on this for a moment. The economy has not given the confidence to the private sector to see massive growth. One new job in 12 is in the private sector, and 11 in 12 are in the public sector.

This is not sustainable. Revenues from the private sector pay for jobs in the public sector. Revenues from public sector jobs do not create more jobs in the private sector, or even in the public sector. Still, the Liberals say there has been a reduction in the unemployment rates this year, and they continue to hire public servants.

The Liberals do not talk about the fact that fewer people are looking for work. Statistics show that two-thirds of the unemployed in Canada are not looking for work anymore but remain unemployed.

On the issue of the public sector, or rather the public service, I would be remiss if I did not talk about the recent observations by the Auditor General of Canada in the 2018 public accounts. The Auditor General, along with the deputy minister for the Department of Finance and officials from the Treasury Board Secretariat, appeared before the public accounts committee, which is a committee I am honoured to chair. As most here today would know, the public accounts committee examines in a non-partisan manner the performance of the public service and the federal departments and agencies in implementing what the government has been ordered to do by the Parliament of Canada.

For the past three years, the Auditor General has been tabling separate documents entitled, for example, “Commentary on the 2017-2018 Financial Audits”. This year, the document includes a section entitled, “The Auditor General's observations on the government's 2017-2018 financial statements”, which was previously provided in the public accounts.

The first observation is on the transformation of pay administration, better known as the Phoenix pay system. The Auditor General noted that as of March 31, 2018, there were 615 million dollars' worth of pay errors. I think back to my meetings in Wainwright, Drumheller, Stettler and Camrose, where massive numbers of federal public employees were expressing their frustrations toward this Phoenix system.

Furthermore, for the last pay period, the percentage of employees with pay errors was 58%, an increase of 7% from the previous pay period. Despite the minister saying that things are getting better and that by October 2018 things will be solved or we will have a real goal that can be accomplished, she is failing. It was 51% last year and 58% this year.

While the government says it is working to solve this horrific problem for public servants, the situation has become worse. As the Auditor General reports, the government underpaid some employees by $369 million and overpaid others by $246 million, and now we are trying to figure out how to claw back that money. This significant number of individual pay errors did not result in a financially significant error in the government's total reported pay expenses, because overpayments and underpayments basically offset each other.

The Auditor General further explained to our committee yesterday that while the government recorded year-end accounting adjustments to improve the accuracy of its pay expenses, it did not correct the underlying problems, nor did it correct the pay errors that continue to affect thousands of employees.

Through budget 2018, the government plans to spend $16 million over two years, beginning in 2018-19, to work with various experts and public servants toward implementing a new pay system. Furthermore, it has committed $431 million over six years beginning in 2017-18 to fix Phoenix.

I have grave concerns, as do some people within the public service, that we do not have the necessary IT expertise to manage complex IT problems like these. These are not being addressed in this budget. People are not being paid. It is unacceptable.

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 12:15 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Madam Speaker, I will start today by talking about the process of contempt of Parliament that has been undertaken, and you will be judging very shortly the government on this account. I will continue by talking about some of the Potemkin measures in the budget. I then will conclude by talking about what the NDP would be doing if this were a budget implementation act from the NDP and how different it would be. That comparison is very important for Canadians to know.

First, I will talk about the immense and ridiculous size of this record omnibus legislation, which is 850 pages. One can only call it ridiculous in nature when we talk about the number of clauses and subclauses and the amount of time the government is giving us, with its bulldozer mentality, to consider each and every one of the clauses.

When we talk about omnibus legislation, there are a couple of things that are important to read into the record. One is that the current Minister of Public Safety, when he responded to a Conservative omnibus bill that was less than half as massive as what the Liberals have put forward this week, said at the time, “ It is a complete dog's breakfast, and deliberately so. It is calculated to be so humongous and so convoluted, all in a single lump, that it cannot be intelligently examined and digested by a conscientious Parliament.” That was the Liberals then in referencing something that, as I said, was half as massive as what we are forced to consider this week, the largest and the worst omnibus bill ever presented in Canadian Parliament.

I also want to read into the record, because it is very relevant and pertinent, the Prime Minister's commitment back in 2015 when Canadians voted. At that time, the Liberals had spent years decrying the Conservative penchant to move forward with omnibus legislation, even though I almost think fondly back to those days of Conservative omnibus legislation that was only one-third or one-quarter the size of what the Liberals have put forward. However, there are many aspects that I do not think any Canadian would fondly recall. At that time, the Prime Minister said:

We will not resort to legislative tricks to avoid scrutiny....

Stephen Harper has also used omnibus bills to prevent Parliament from properly reviewing and debating his proposals. We will change the House of Commons Standing Orders to bring an end to this undemocratic practice.

The Liberals have not brought an end to the undemocratic practice. As members know, we are now dealing with the largest and worst omnibus bill in our history. What are the consequences of that?

As I mentioned earlier, I have been endeavouring all week, on behalf of Canadians, to find one simple fact. How many clauses and subclauses are in this legislation? I have asked department officials. I asked at committee. I have asked the parliamentary secretary. None of them have been able to respond to that simple question on how many clauses and subclauses are in this massive bill.

This is relevant, because the Liberals have committed to only 13 hours of legislative scrutiny at the committee level and only a few hours of debate in the House of Commons. Therefore, if we are talking about, as some people are estimating, 5,000 clauses and subclauses, then members can do the math.

An important part of any parliamentarians work is to scrutinize, debate and review legislation to ensure it will do what it purports to do and that it is not full of errors, as we have seen in the past when botched legislation has been sent back by the courts. It costs taxpayers tens of millions of dollars when Parliament gets it wrong. Therefore, I asked repeatedly, but have not received a response.

However, if we take the estimate of 5,000 clauses and subclauses, the Liberals are giving us nine seconds per clause, per subclause. They are giving us nine seconds to review, nine seconds to hear witnesses, nine seconds to speak to each of the myriad of clauses and subclauses the bill. This is absolutely ridiculous, irresponsible and contemptuous of Parliament and the work we have to do as parliamentarians. They should be pulling back on the legislative bulldozer and allowing parliamentarians the opportunity to do the job we are paid to do.

Just this morning at finance committee, I raised questions around just one of these subclauses and was unable to get a response. Major changes are proposed with respect to the charitable sector, basically meaning that a charity is no longer considered as such if there is any indirect support or opposition for a political party.

I asked a very simple question. I asked if it meant that if an environmental foundation that would be in complete disagreement with the Liberal government and the purchase of a massive pipeline mentioned that the Liberal government had purchased this pipeline and the foundation did not agree with that position, that it would be in direct opposition to a political party. I received no answer. It is apparently going to be defined by CRA, and we are hoping to get that information at finance committee in the next few days.

However, that is just one subclause. Our nine seconds have already finished and we have uncovered some complete ambiguity that may have a major impact on the charitable sector. However, there is no answer and so we move on.

Nine seconds for clause or subclause is absolutely contemptuous of this Parliament and of the work of parliamentarians. I would suggest it is contemptuous of Canadians when a massive bill of that nature, which has so many fundamental changes, is brought in and talks about the tax code and the implications of it on the charitable sector. For the Liberals to allocate nine seconds for clause or subclause is beyond belief and certainly flies in the face of everything they committed to in 2015.

In 2015, the Liberals said that they would be better than Stephen Harper. They are much worse when it comes to these massive budget bills, which they used to decry when they were in opposition. There is no reason for it, no reason at all.

What does Bill C-86 contain? It contains a number of bills. Looking at the titles, it seems that it may contain useful legislation, like the one on pay equity, for example. We have been calling for pay equity in the House and in committee for years. Unfortunately, the women of this country will have to continue to wait for years for this measure to take effect. The members of the committee wanted to hear their opinions on that, but since the committee has only nine seconds to examine each section of the bill, it will be impossible to hear testimony that gets to the heart of the matter.

This bill contains even more measures, such as the legislation that calls for the budgeting process to take gender equality and diversity into account, the department for women and gender equality act, the international financial assistance act, and the poverty reduction act. None of these bills have anything to do with the allocation of resources to meet objectives.

This bill is meaningless. It does not allocate the resources and investments needed to do anything other than put titles on these bills. There are at least seven bills that should be deliberated and examined separately, but the government refuses to do so. The government wants this bill to pass even if we do not have enough time to carefully study all these issues.

There is another aspect to this, and I will go back in history because this is an important point.

Grigory Potemkin was a member of the Russian court. When the Empress Catherine was travelling from one village to the other, he would erect Potemkin villages, and this has become part of the English language as well as many other languages, including French. Because of the incredible poverty of the Russian peasants and because of the dearth of any sort of services or supports in these rural areas, he would temporarily erect these villages with false fronts. Once the carriage of the Empress Catherine passed by, he would dismantle these false fronts and take them to the next village.

That is indeed what we are seeing with the budget, which contains a number of Potemkin bills. There is talk about things that are important, like reducing poverty and ensuring there is gender equality and international financial support, but there are no resources beyond that. The Prime Minister, a little like Empress Catherine, is going to be talking to Canadians over the next few months about these wonderful bills he has put forward, but there are no resources to go with the bills. There is nothing that gives meaning to the words and titles of the bills included in this massive omnibus legislation.

Canadians are living through the greatest family debt crisis in our nation's history and, in fact, in the industrialized world. Canada placed last among the OECD countries in terms of family debt. There are crushing levels of family debt, because Canadians are forced to pay for their medication and their housing costs are skyrocketing, while their wages under the previous and current government have stagnated. Given the scope of the family debt crisis, my constituents and I have lived through the greatest housing and homelessness crisis we have seen in our country's history. Seniors, students and families are not able to keep a roof over their heads because the price of housing has soared, and the federal government, since the elimination of the national housing program, has done nothing to build housing, to put roofs over people's heads, so that families can settle in, feel comfortable and not have to feel they have to struggle between paying for food, rent, medication, or their heat in one of the coldest winters on the entire planet.

In the midst of that family debt and housing crisis, we have a series of Potemkin bills brought forward by the finance minister for the benefit of the Prime Minister, in the same way Grigory Potemkin brought forward the Potemkin villages for Empress Catherine. It is not something that has a meaningful impact on the lives of people.

We are hoping that pay equity will have a real impact. It is something the NDP has struggled and pushed for for years, but it still appears to be far off on the horizon, years away. We will not be able to take the time at committee to see how that portion of the bill could even be improved, because the Liberals are allocating, unbelievably, nine seconds per clause or subclause for examination. That is ridiculous.

Anyone on the streets of our country would say it is unbelievable that a government that came to power saying it would put an end to these practices has actually doubled and tripled down and become so much worse than even Stephen Harper was in terms of contempt of Parliament and putting massive pieces of legislation forward that are not subject to proper examination and scrutiny.

This is a hollow shell. It is a massive bill. It has implications for the charitable sector and a whole range of other areas, but the time allowed is so scant and our questions are not being answered in any forthright way, which means that ultimately the Liberals may succeed in ramming the bill through. Canadians cannot take any comfort in this, because no proper legislative scrutiny has been allowed. Also, the simple question that I have asked repeatedly this week, about how many clauses and subclauses there are in the bill, remains unanswered. We are not talking about a trick question. It was very simple. I have pretty well asked it in response to every bill I have had the jurisdiction to examine. Every time there has been an answer. However, this time, with regard to this 850 page bill, there has not been any sort of answer at all.

What approach would we take? How would Jagmeet Singh and the NDP bring forward a budget implementation bill? To start, we would not be putting an 850-page brick in the House of Commons, and ramming it through in a scant few days.

What New Democrats would do is separate out the bills, even if they are Potemkin bills, for proper scrutiny. Pay equity deserves scrutiny and witness testimony from women's groups and unions that have been strong advocates of it for years. They deserve a hearing, but they will rarely be given one because of the Liberals' intent to ram this through.

We would separate out those bills and subject them to scrutiny. We would meet late at night. As members know, we are considered the worker bees of Parliament. We try to do our homework. We do our best to take on that mandate of examining, scrutinizing and offering better solutions for government legislation. That has always been our place in the House. We are hoping that soon Canadians will chose another role for us, as the Government of Canada. In the meantime, as the second opposition party, we will continue to play that important role.

If it were our budget implementation bill, it would be separated out. We would be talking about different pieces of legislation. We would be allowing that appropriate scrutiny.

More importantly, if it were our budget implementation bill, each one of these initiatives would come with real resources. New Democrats would have tackled fair taxes so that we can feel, with some confidence, that every Canadian is paying their fair share. We heard repeatedly in the pre-budget hearings about businesses that are seeing unfair competition from big, foreign web giants who come here, scoop up the advertising dollars and do not pay a cent into the Canadian economy. No action has been taken on that. No action has been taken on the overseas tax havens that cost us tens of billions of dollars.

This will be embarrassing to the Liberals, because in just a few months' time, the Parliamentary Budget Officer will come out with his analysis. He has finally obtained, after a five-year struggle, first with the Conservatives and then with the Liberals, one in which he threatened to take them to court, the information he needed from the Canada Revenue Agency to measure the tax gap. Within a few months time' we will have the tax gap, the money going to overseas tax havens and to web giants. It will be embarrassing to Liberals not to have taken any sort of action. They have no credibility on this.

New Democrats would be investing in housing now. I did a press conference earlier this year, as members know, with Jagmeet Singh, our national NDP leader, where we said that we needed to accelerate immediately and invest $2 billion into housing. It is at a critical level. We are seeing seniors and students left on the sidelines. We need to make sure that that housing is put into place immediately.

We would be investing in child care and pharmacare. These are not just smart investments for the quality of life of Canadians. If we are talking about gender equality, not having child care puts the lie to any pretence of the government to actually being a feminist government. If it is not putting in place child care, the government cannot pretend to actually be working for gender equality in this country. Child care also helps our businesses to compete. It helps our labour market.

There is a whole realm of reasons why it is smart economically, as well as socially, to put in place things like child care and pharmacare. As we know, we are wasting billions of dollars more right now on medication that Canadians need. So many Canadians are not even able to access the medication, because we do not have in place a universal pharmacare program. A New Democrat BIA, if it were presented today, would include and put that in place so that Canadians could feel comfortable knowing that they could take their medication and afford it.

New Democrats would be investing in health care and education. We are the health care party, and we always have been. Tommy Douglas, our first leader, founded universal public health care in this country. We would be standing behind that, providing the necessary funding for it, instead of eroding it as we have seen happen under the Conservatives and Liberals.

New Democrats would be making sure that we are taking care of Canadians, because that is best for Canadians. It is also best for our economy, and it is best for Canada.

November 1st, 2018 / 11:45 a.m.
See context

Lynn Hemmings Acting Director General, Financial Systems Division, Financial Sector Policy Branch, Department of Finance

Thank you, Mr. Chair.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act is administered by the Canada Border Services Agency, CBSA. It requires persons or entities to report to customs authorities, during importation or exportation, currency of a monetary value of $10,000 or more.

The CBSA border agents have the ability to conduct searches when there are reasonable grounds to suspect that a person or entity is carrying unreported currency or when they suspect that there are proceeds of crime or funds for terrorism financing. Those funds may be seized or forfeited by customs authorities.

Clause 174 of Bill C-86 essentially repeals a section in the act that gives persons and entities the ability to withdraw that export or import of the currency. Essentially, under the Customs Act, the right to withdraw does not exist for the declaration of goods, so this provision aligns it with the Customs Act.

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 11:40 a.m.
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Conservative

Pierre Poilievre Conservative Carleton, ON

Madam Speaker, today I will address the three inevitable stages of every Liberal tax increase.

First, there is the insult. Second, there is the tax increase itself. Third, there is the high-tax hypocrisy. I will give numerous examples of where this exact same cycle has played out every time the Liberals have targeted modest and middle-income Canadians with higher taxes.

Let us start with the issue of income tax. The Prime Minister started his campaign to raise taxes by calling people “too rich” and therefore claiming they needed to pay more. We did not find out until after the election who he was talking about. We thought he was talking about himself, a multi-millionaire who inherited a trust fund, or maybe the finance minister, whose family business was worth $1 billion.

It turned out he was not talking about those people. It turns out the people he thought were too rich and needed to pay more income tax were moms and dads who have kids in soccer and hockey, students who are spending money on textbooks and tuition, and passengers on public transit. They are the ones who saw their taxes go up. They paid more for kids' sports, because they lost the children's fitness tax credit. They paid more to ride public transit, because the transit tax credit was eliminated. Students paid more for the cost of their education, because they could no longer claim their expensive textbooks as an education expense and the education tax credit itself was eliminated.

Those were the people that the Prime Minister was talking about when he said that the rich needed to pay more. He said that if people could put their kids in hockey, they are rich and get to pay higher taxes. If people go to university or college, they are rich, too rich and should pay higher taxes as well. If people take the bus and do not take a limousine like the Prime Minister, they are rich, too, and therefore they should pay higher taxes as well.

All of this is a little rich coming from the recipient of a multi-million dollar trust fund account from his family. It is also rich coming from somebody who spent most of his life living in publicly funded mansions, and driving around in government-funded limousines. However, according to the Prime Minister that is beside the point. It is also a little rich to say that moms and dads have too much money when the Prime Minister forces those same moms and dads to pay higher taxes so that they can fund his $30,000 of free nanny services every year that he uses in his household, while Canadians have to pay for their own child care with their own money.

That is the final stage. He started with insulting moms and dads, calling them rich. Second, he raised their taxes, forcing them to pay more for transit, textbooks, kids' sports and more. Third, of course, is the hypocrisy where the Prime Minister ensures that he gets taxpayer-funded child care services that no one else in the country would receive as part of their employment package.

Again, we have insults, tax increases, then high-tax hypocrisy.

Now we move on to small businesses. Remember when the Prime Minister said, in the last election, that small businesses, according to him, are merely vehicles for rich people to avoid paying taxes. We know that he was referring to plumbers, pizza shop owners, landscapers, shopkeepers and other middle-class people who mortgage their houses to start businesses and employ people in our community. He said that those people are all just tax cheats, and they needed to pay vastly more in order to keep their businesses up and running.

He brought in new penalties. That was the insult. Then came the tax increase. The Prime Minister decided to penalize family businesses for sharing the earnings and work of their business with family members. He then brought in new penalties for small business owners who save for the future within their company. If people keep some money in their company for a rainy day, sick leave, maternity leave, retirement or for a future investment, they would be penalized for any interest earned on that money in the meantime.

The most recent iteration of that penalty is that a small business can lose its small business tax deduction if it has more than $50,000 in investment income within the company. It is a massive tax increase targeted again at the middle class. There is the second step in the cycle. The Prime Minister starts by insulting the small business owners, then he moves to raising their taxes.

Finally, the last stage is high-tax hypocrisy. Who was not taxed more under the Liberal plan? The Prime Minister was not, to start with. There were no new taxes for his multi-million dollar trust fund inherited from his grandfather's petroleum empire, and no new taxes on the speaking fees he collected from charities while he was a member of Parliament and ought to have been giving those speeches for free like other members of Parliament do. There were no new taxes on those speaking fees, which he earned by the way while having the third worst attendance record of any member of Parliament. He is skipping out on his publicly paid duties to be here in order to give paid speaking engagements that most members of Parliament do on their own time and without charge, and there are no new taxes on any of that.

There we have it again. The Prime Minister started with insulting small business people, then he moved to raising their taxes, then he engaged in high-tax hypocrisy by protecting his own interests from any new costs. He extends that hypocrisy to his finance minister, whose $1-billion family business saw no tax increase whatsoever under the proposed changes to small business tax rates. His company is big enough to be on the stock market, and all stock market trading companies were excluded from the tax increase altogether.

There we have it: insult the taxpayer, raise the taxes and then engage in high-tax hypocrisy to protect himself and all his friends. That is the three-step approach this Prime Minister takes to every single tax hike.

Now we see it one more time with the carbon tax. The Prime Minister starts off with the insult, which is to call people polluters. Be careful, the polluters are not who we think they are. In the eyes of this Prime Minister, the polluters are grandmothers trying to heat their homes in -40° weather, soccer moms trying to take their kids to soccer practice and single moms trying to take care of their kids or drive to work. Generally, suburban commuters, anybody who has to purchase gas to move themselves around or to heat their home is, in this Prime Minister's view, a polluter. There we start again with the insults by calling everyday suburban Canadians “polluters” in order to justify raising their taxes.

The second step in every Liberal tax increase is to raise the tax itself, and so the Prime Minister has increased taxes on gas, home heating and other basic energy people require in our modern way of life to survive. These costs will roll out throughout every aspect of human life. If we want to heat our homes, drive to work or buy products transported by truck, train or ship, we will pay for more for all those products. If someone is a small business person who has to heat or energize their factory, they will pay more for that tax as well.

We have the insult, then we have the tax increase, and the last step is the hypocrisy, the high-tax hypocrisy. Who is not going to pay this tax? Large industrial emitters, the big corporations with the smokestacks on the top of their factories. Those enterprises would be exempt from the Liberal carbon tax. Just this week, we learned that coal-fired plants would be exempt from the Liberal carbon tax. In New Brunswick, the Belledune coal-fired plant would be allowed to emit 800 tonnes of greenhouse gases for every gigawatt of electricity absolutely tax-free.

Now, the government admits those coal-fired plants will be in operation for at least another 12 years, and that is if we would believe its promise that one day after it is long out of office that it will be able to shut down those coal-fired plants over a decade from now. In the meantime and in between time, those factories would operate without any carbon tax.

The same is true for large cement plants and other large industrial emitters. They will be exempt from the tax increase.

It is all well and good to exempt those corporations that have powerful lobbyists that influence government, but we have asked why the Liberals have not provided the same exemption to small businesses, to families and to others. We still do not have an answer to that question. Of course, that is the high-tax hypocrisy. We have again the three steps of every single tax increase: insult, tax hike and then high-tax hypocrisy. Those are the three steps that we can count on the Liberal government engaging in every single time it wants more of Canadians' money.

What motivates this three-step approach to increase taxes? The answer is it is to fund out-of-control Liberal spending.

Spending has grown at 7% a year since the Liberals took office. That is about three times the combined rate of inflation and population growth, depending on the year. In other words, spending is vastly outpacing the need. Those 7% a year spending increases have to come from somewhere. The government has to source that revenue. It started to do so by borrowing. The government's deficit is three times what the Prime Minister promised. Instead of balancing the budget next year, as the Prime Minister promised while putting his hand on heart during the election campaign and saying it would be gone, now Finance Canada says the deficit will continue until the year 2045, under which plan, the debt will grow by nearly half a trillion dollars until then.

This is all happening in a time when the government's own documents admit it has been the beneficiary of enormous short-term good luck. In the government's annual report, which came out about two weeks ago, the government admits that its revenue is higher by about $20 billion because of factors outside of the government's control: record low interest rates, higher than usual oil prices, a booming U.S. economy, a stronger than normal world economy, a housing bubble, which is slowly coming to an end in Toronto and Vancouver, all of which generate more revenue for the government. In other words, good fortune has fallen out of the sky onto the government's lap. The Liberals admit that in their own financial documents.

If they have an out-of-control deficit that is three times the size they promised in times of good fortune, how big will the deficit become when the luck runs out? The Liberals have not answered that question. I have asked the finance minister, at times painfully, 14, 15, 16 times in one committee session, when the budget will be balanced. He utterly refuses to answer. The Liberals have not told us under what conditions would a government ever balance a budget.

It does not matter what one's economic philosophy is, everyone agrees that there should be some point in the business cycle when the budget is balanced. I believe we should ascribe to have a balanced budget all the time, but even if one is a Keynesian economist, one ought to believe that at least when the world economy is roaring and commodity prices are high and interest rates are low, at that point in an economic cycle, for God's sake, the government ought to have a surplus to squirrel away for when times turn bad. However, even under that Keynesian thinking, the government is not living up to the obligation to balance the budget when times are good.

What are the consequences of having these massive deficits? The answer is that, in the short run, we start to pay higher interest costs. The Parliamentary Budget Officer estimates that by the year 2023, our expenditure on debt interest will go from about $24 billion to $40 billion, a two-thirds increase in about half a decade. This means we will be spending more on debt interest than we currently spend on health care transfers. That means more money for bankers and less money for doctors and nurses. Canadians will pay taxes to get nothing in return except to pay off the wealthy and privileged bond holders and bankers that lent us the money and therefore own our future tax receipts.

When I ask residents of my riding what they want their tax dollars spent on, they say roads, hospitals and other essential services that allow them to live their lives. They never tell me that they want to spend it on enriching bankers and bond holders. That is exactly the consequence of government decisions to pile up new and unnecessary debt on the current generation and on generations yet unborn.

That is the immediate consequence of higher spending, but there is the medium-term consequence which of course is higher taxes. Those consequences are already starting to become known. Middle-class Canadians are already paying $800 more in income tax than they were when the Prime Minister took office.

As I said earlier, small businesses are paying higher taxes to support the government's spending habit with new penalties for saving within their companies or for sharing income and work with family members. Those tax increases are in addition to the new ones that take effect on January 1, that is, higher payroll taxes for workers and small businesses and of course the carbon tax itself. Deficits today mean higher taxes tomorrow. That is exactly what the government is delivering, both higher taxes and deficits at the same time.

That is the underlying motivation for the three-step Liberal process for raising taxes. We will see it again and it will not be long. Soon there will be another billing which the Liberals will actually give a name to. They call moms and grandmothers polluters. They call small business people tax cheats. They call people who put their children in sports or who take the bus wealthy. Then they proceed, after having demonized those patriotic Canadians, to raise their taxes.

The last step is always to look at the fine print and how much the Prime Minister will have to pay for this tax increase. Oh, he will pay nothing. How convenient. Of course, we could not possibly allow a multi-millionaire trust fund recipient to have to bear any extra burden at all. Life is already too tough living in a government-funded mansion with government-funded nanny services. He and his friends and those who have influence on him are always protected from the costs that they impose on middle-class Canadians.

I propose a different three-step plan: first, control spending; second, balance the budget; and third, lower taxes for all Canadians. That sounds like a three-step plan we can all get behind.

On that optimistic and exciting note, I move:

That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-86, a second act to implement certain provisions in the budget tabled in Parliament on February 27, 2018, and other measures, since the Bill fails to address the fact that deficits are three times what the Prime Minister promised, that the Department of Finance admits that the budget will not be balanced until 2045, and that the average income tax bill for middle-class families has increased by $800, not including new carbon taxes and payroll tax hikes.

Budget Implementation Act, 2018 No. 2Government Orders

November 1st, 2018 / 11:15 a.m.
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Joël Lightbound Parliamentary Secretary to the Minister of Finance, Lib.

moved that Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee.

Mr. Speaker, hon. members, I am pleased to rise in this august chamber to speak to Bill C-86, the second act to implement this year's budget.

This bill represents the next step in the government's plan to strengthen the middle class and to help those working hard to join it so that every Canadian has real and equal opportunities to succeed.

From the beginning of its mandate, our government has rejected austerity measures and cuts. Instead, we implemented a long-term plan with targeted investments that create the conditions for economic growth that benefits everyone. These investments are making a difference and will continue to do so. They will result in better opportunities for our children to achieve their dreams, find good jobs and give back to their community.

Before I speak about the budget implementation bill, I would like to point out some of the government's main achievements to date.

We instituted a new support system to help Canadian families with the high cost of raising children. The Canada child benefit is simpler, more generous, tax-free and better targeted than the former benefit system, and it has helped nine out of 10 families get ahead.

The Canada child benefit provides even more financial assistance to the low- and middle-income families who need it most, which is in line with our commitment to offer all Canadians equal opportunities to succeed. Single-parent families account for about 65% of recipients who receive the maximum Canada child benefit amount, and over 90% of these families are led by single mothers.

I calculated what my mother would have received when she was raising me and my brother as a single mother, and it would have made her cry to see how generous the benefit was and to see what an incredible difference it would have made in our lives, in the same way it is making a huge difference in the lives of many Canadians. The difference is noticeable in my riding and in local Saint Vincent de Paul shops, because our approach is much more progressive than the former government's program, which sent cheques to millionaires' families.

In budget 2018, the government also introduced measures to index the Canada child benefit to the cost of living as of July 2018, two years earlier than planned.

From day one, our focus has been on strengthening the middle class and economic growth. To help Canadians keep more of their hard-earned money and use it as they see fit, one of the first things the government did upon taking office was cut taxes for the middle class, a move that is helping over nine million Canadians.

A typical middle-class family of four will receive about $2,000 more each year as a result of the middle-class tax cut and the Canada child benefit.

For single-parent average-income households with two children, or for families with two children where only one parent is earning an average income, the benefits are even more significant. When the tax-free Canada child benefit and other benefits are added to family income, those families pay effective personal tax rates of less than 2%, which means they keep more than 98% of what they earn.

Because of these changes, more families will be able to pay for things like healthy food, back-to-school clothes and new winter boots for growing kids.

These are changes that will actually improve the lives of children and parents across the country.

Since 2015, the government has made historic investments to support our communities in infrastructure, innovation, science and research.

The government has also secured new and modernized trade agreements. In fact, we are the only G7 country to have trade agreements with every other G7 country. The recently negotiated United States-Mexico-Canada agreement, UMCA, will give those in the business community the confidence they need to continue to invest in Canada. They can rest assured that this critically vital trading relationship is safe and secure.

With all of these measures in place, it is no wonder that the economic picture at home is encouraging. Our economy is strong and growing. Our economic growth, which stood at 3% in 2017, was the highest in the G7, and we expect to stay among the fastest-growing economies this year and next.

On another good news front, thanks to the hard work of Canadians, the past three years have seen the creation of more than half a million new full-time jobs. These new jobs have pushed the unemployment rates to nearly 40-year lows.

There is yet more good news on wage growth. For the average Canadian worker, wage growth is outpacing inflation. In fact, if current trends hold, 2018 could mark one of the strongest years of wage growth since the great recession of 2008-2009.

With more money in their pockets, Canadian consumers have a reason to feel confident about their financial situation. Consumer confidence is near historic highs. This is not only the case with individual Canadians, but also for the companies they run.

After-tax profits for Canadian businesses have nearly doubled since 2015. This means that companies have more money available to invest, to create good new jobs and to spur economic growth.

This positive outlook reflects Canada's many competitive strengths. Some of these strengths are our highly-skilled labour force, preferential access to global markets and a strong research and start-up capacity in emerging fields. We know that keeping and expending these strength demands government policies that keep the focus squarely on people and give every Canadians the means to contribute fully to our society and our economy.

The second budget implementation act before us is intended to implement items from budget 2018 that put people first. By passing the measures in this bill, we will take further steps to invest in Canadians, grow the middle class and help those working hard to join it. Through this bill, more people will have an opportunity to succeed.

This bill includes an important measure to stimulate economic growth, namely the new Canada workers benefit, or CWB.

Starting in 2019, the new CWB will represent an improved version of the current working income tax benefit. The CWB is designed to encourage more people to enter the workforce and to help more than two million Canadians who are working hard to join the middle class.

With increased maximum benefits, the new CWB will provide even more support to the people who receive it. In addition, the CWB's expanded eligible income range will ensure that more workers are entitled to it.

Under the new CWB, a low-income worker who earns $15,000 annually could get almost $500 more in benefits in 2019 than she is getting this year. That amount of money can really change things for many Canadians.

Starting in 2019, the government also plans to improve how this support is distributed by allowing the Canada Revenue Agency to calculate the benefit amount for all tax filers who did not apply for the benefit. Automatic payment of the benefit to eligible tax filers is a measure that would be particularly useful for people with limited mobility, those who live far from points of service and those who do not have Internet access.

It is estimated that, as a result of this measure, an additional 300,000 low-income workers will receive the new CWB for the 2019 tax year. Overall, improvements to the new CWB will lift approximately 70,000 Canadians out of poverty by 2020.

I would now like to talk about another main component of this bill, and that is greater equality. Although Canadian women are among the most educated in the world, they are less likely to participate in the labour force than men and are more likely to work part time. Canadian women are often called upon to meet unpaid work demands, which prevents them from pursuing opportunities that would help them reach their full potential.

What is more, the under-representation of women in leadership positions remains a reality. The vast majority of Canadian businesses are run by men. It goes without saying that our economy is not operating at full capacity when the women who want to participate in it and hold leadership positions cannot do so.

For us, it is clear that gender equality would benefit everyone. The participation of women in the labour market has been one of the strongest sources of economic growth in recent decades. Over the past 40 years, the increased number of women in the labour market accounted for approximately one-third of real per capita GDP growth in Canada. Higher female workforce participation rates have also increased household incomes and helped families move into the middle class.

However, there are still far too many missed opportunities because of the gender gap. There are many factors that contribute to that gap, but taking action to close it is not just the right thing to do, it is also the smart thing to do to strengthen the middle class and grow Canada's economy.

According to RBC Economics, if the labour force participation rates of women and men were equal, Canada's GDP could see a boost of as much as 4%. That would be enough to partially offset the impacts of an aging population.

Our government recognizes the essential role of gender equality in building a strong economy that benefits everyone. That is why we are committed to developing budgets taking into account the fact that the choices made and policies adopted affect different people in different ways. Reviewing proposed budget measures from a gendered lens is one way to ensure a more equitable and efficient use of government resources.

In order to ensure that this is achieved immediately, the bill before us today enacts legislation to promote gender budgeting. This measure will ensure that government policies to advance gender equality and inclusion are not just an option but rather a requirement in the preparation of future federal budgets. Since rules are not enough to bring about real change, this legislation also introduces reporting requirements to ensure proper accountability.

There is also another way in which this bill would foster opportunities for women and men and help all Canadians realize their potential and fully participate in the economy. For most Canadians, the best time to start a family coincides with the parents' prime career-building years. Right now, new parents can use EI benefits to ensure their financial security while they are taking time off from work to care for their children. However, there is strong evidence to suggest that the burden of child care still falls disproportionately on women. We know that women and families are better off when parental responsibilities are divided more equally. That is why the government wants to make the EI system more flexible and encourage a more balanced sharing of responsibilities, so that both parents get to spend time with their young children while pursuing careers.

To support young families and promote gender equality at work and at home, the act proposes a new EI parental sharing benefit that will encourage a more balanced sharing of family and work responsibilities by providing five additional weeks of benefits in cases where both parents agree to share their parental leave. This period will be extended to eight weeks if the parents opt for extended parental benefits. This optional incentive will encourage the second parent in two-parent families to share equally in parenting responsibilities. New mothers will have more flexibility to return to work sooner if they wish. Equitable parental leave could lead to fairer hiring practices, which would reduce conscious or unconscious discrimination against women by employers.

In budget 2018, the government took an innovative approach to the systemic undervaluation of women by announcing legislation to reduce the gender wage gap in federally-regulated workplaces. This legislation is included in the bill we are debating today. Requiring equal pay for work of equal value is an effective means of reducing the gender wage gap, promoting an improvement in women's gains and increasing women's contribution to the economy. That is why the government is now introducing pay equity legislation for federally-regulated sectors.

The new pay equity act, which will apply to approximately 1.2 million Canadian employees, requires federal public and private sector employers that have 10 or more employees to establish and maintain a pay equity plan. This plan would identify and correct differences in compensation between men and women for work of equal value. The legislation also establishes a pay equity commissioner who will report annually to Parliament on the administration of the act to ensure it has a real impact. The commissioner's role in facilitating dispute resolution, conducting compliance audits and imposing monetary penalties for violations of the act will ensure enforcement and proper accountability.

A last major aspect of the second budget implementation act is the steps it takes to protect our environment. Canadians know that polluting is not free. Costs are paid with droughts, floods, wildfires and our health. Canadians expect polluters to pay, because it is the right thing to do for future generations.

Climate change is expected to cost our economy $5 billion a year by 2020. Simply put, if we are to reduce the greenhouse gases causing climate change, pollution can no longer be free in this country. To act otherwise would be a betrayal of our responsibilities as federal lawmakers and a betrayal of future generations of Canadians, and I would argue, of my generation.

Putting a price on pollution is central to the government's plan to fight climate change while growing the economy and building a brighter future for all Canadians. Pricing pollution is the most effective way to reduce emissions, because it creates incentives for businesses and households to make cleaner choices and find innovative solutions.

This act legislates a pan-Canadian approach to pricing carbon pollution with the aim of having pollution pricing in place in all provinces and territories in 2019. As part of this plan, the government has established a Canada-wide federal standard for reducing pollution and has given provinces and territories the flexibility to choose a system that meets this standard and that works best for them.

Furthermore, all proceeds from pollution pricing from jurisdictions that have signed on to the federal system will be returned directly to the government of these jurisdictions. In provinces that have not committed to pricing carbon pollution, the federal government will return the bulk of direct proceeds directly to individuals and families residing in those provinces through climate action incentive payments. For most households, these payments will help offset or exceed their increased costs related to pollution pricing. The remaining proceeds that are not returned directly to households will go towards providing support to sectors within these provinces that will be particularly affected by pollution pricing.

The government is serious about addressing the costs of pollution and is taking concrete steps to back its commitments. This is the only responsible course of action to take as we see increasing signs of climate change all around us, and we have stepped up to that responsibility.

This government is advancing its plans to create a better future for all Canadians by investing in people and in communities. We are building on Canada's economic strengths and advancing our competitiveness by seizing opportunities in global markets. This second budget implementation act contains essential measures to achieve these goals, and I urge all hon. members to support it.

November 1st, 2018 / 11 a.m.
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Liberal

Greg Fergus Liberal Hull—Aylmer, QC

Thank you very much, Mr. Chair.

First of all, let me just say to the members who are new to the committee that this committee has had a wonderful reputation as not being very partisan or getting caught up in procedural issues. It's very rare that this would happen.

Second, the motion did pass, Mr. Julian. Forgive me if my memory's wrong, but it wasn't on division. It was actually unanimous. This was the procedural motion to make sure that we would farm out relevant items of the budget implementation act, Bill C-86. As a result, we're just going back on our word about what we had all agreed to do.

We will have an opportunity to come back. We can't say that this is a belt-and-suspenders thing and then call it an omnibus bill at the same time, or say that it's a taxation bill. We need to have some.... We'll have an opportunity to go back.

November 1st, 2018 / 10:55 a.m.
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Liberal

The Chair Liberal Wayne Easter

I am saying we do not want to get into a situation. At a previous meeting, this committee decided to farm out certain sections of Bill C-86 to other committees. We need them to do their work first, and they will report back to us. If we go down this road where we are doing the work before they have an opportunity to do it, we may as well not have farmed it out in the first place. It will be duplication.

We made a motion as a committee to farm those sections out to them. Mr. Mercille may be prepared to answer this question, but the next witness who comes before us on another section might not be. When we have farmed it out to another committee, we've given them time to report back so that we can look at the recommendations and deal with it then.

That's how I'm ruling. Pierre, I just think that's fair.

November 1st, 2018 / 10:05 a.m.
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Liberal

The Chair Liberal Wayne Easter

It was raised in the House yesterday as well. Somebody might eventually have to come up with the answer to that question, Peter.

I think that completes that section. Thank you very much, gentlemen, for your presentation and your answers.

We will ask people to come up on part 2 and part 3. They might as well come up together. I understand some of them are on both. We'll have Mr. Ives, Mr. Mercille, Mr. Coulombe, and Mr. Mercille again.

Just while they are coming up, Mr. Ives is the Senior Adviser, Sales Tax Division. Mr. Mercille is the Director General, Sales Tax Division. Mr. Coulombe is Director, Sales Tax Division. That's them all.

Just before we go to the section, for our agenda on next Tuesday, November 6, we had the Minister of Finance scheduled on this bill from 4:30 p.m. to 5:30 p.m. He would be appreciative if we could deal with him from 3:30 p.m. to 4:30 p.m. on the budget implementation act, and then from 4:30 p.m. to 5:00 p.m. on estimates, because we're running out of time on the estimates. Is that okay?

The officials would be here for their hour in addition as well. At 3:30 p.m. to 4:30 p.m., on next Tuesday, November 6, it would be the minister on Bill C-86 and from 4:30 p.m. to 5 p.m. on the estimates, because we're running out of time on that. Then 5 p.m. to 6 p.m. would be officials from the department on the bill and the estimates on the bill.

Is everybody okay with that?

November 1st, 2018 / 9:55 a.m.
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Liberal

The Chair Liberal Judy Sgro

Could you check to see if they have the extra hour so that we can put them in the last hour? We can do the PBO, and then any amendments on Bill C-86, and then we would move to....

November 1st, 2018 / 9:35 a.m.
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Liberal

The Chair Liberal Judy Sgro

We're in an open session again.

We've had an invitation from Finance to study clauses 668 to 747 of Bill C-86. It is up to the committee. I understand that there have been tentative conversations. The committee is prepared to take up this invitation. We will book a three-hour meeting next Tuesday, so that our meeting will be extended an extra hour next Tuesday morning.

We have received some witnesses. We haven't had any witnesses from Mr. Aubin yet, but we have received witnesses from both Conservatives and Liberals. Transport Canada has unofficially confirmed that they would be here for the first hour. We're still looking for six more witnesses if we're going to do two panels of three, if that's the direction.

Kelly.

November 1st, 2018 / 9:30 a.m.
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Liberal

The Chair Liberal Judy Sgro

Mr. Aubin, just to go back a bit to the rail issue, if you recall, we had one meeting on the rail safety issues to try to make sure we were being sensitive as we did our trade corridors study by including rail as part of that once we moved forward. It wasn't that we didn't want to do it. We were just trying to involve many things together so that we were respecting everybody's wishes.

Is there any further discussion on the amendment by Mr. Rogers?

(Amendment agreed to)

(Motion as amended agreed to [See Minutes of Proceedings])

Next we have the invitation from finance to study clauses 668 to 747 of Bill C-86.

We should probably go back in camera. Does the committee want to go back in camera for the discussion on Bill C-86?

November 1st, 2018 / 8:50 a.m.
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Liberal

The Chair Liberal Wayne Easter

I'll call the meeting to order.

As members certainly know, we're dealing with Bill C-86, the budget implementation act 2018, number two.

To start off this morning, we have officials related to a number of areas in the bill: part 1, part 2, part 3 and some of the divisions in part 4, hopefully.

We'll start with part 1. With us we have, from the finance tax department, Trevor McGowan, Pierre Leblanc and Blaine Langdon.

I'll let you introduce people, Mr. McGowan, and you can start from there.

I would remind members that when we're dealing with officials on the bill, we stick to questions related to that particular area of the bill. For the more general and broader questions, we will go to the minister when he comes.

Mr. McGowan, the floor is yours. Welcome.

Budget Implementation Act, 2018, No. 2Points of OrderOral Questions

October 31st, 2018 / 3:20 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, I am rising on a point of order. The point of order I want to raise is for you, Mr. Speaker, to apply Standing Order 69.1 to this bill. As a reminder to you, Mr. Speaker, and to all my colleagues, Standing Order 69.1 is as follows:

(1) In the case where a government bill seeks to repeal, amend or enact more than one act, and where there is not a common element connecting the various provisions or where unrelated matters are linked, the Speaker shall have the power to divide the questions, for the purposes of voting, on the motion for second reading and reference to a committee and the motion for third reading and passage of the bill. The Speaker shall have the power to combine clauses of the bill thematically and to put the aforementioned questions on each of these groups of clauses separately, provided that there will be a single debate at each stage.

The third edition of House of Commons Procedure and Practice states on page 730:

[An omnibus bill] seeks to amend, repeal or enact several Acts, and is characterized by the fact that it is made up of a number of related but separate initiatives. To render an omnibus bill intelligible for parliamentary purposes, the Speaker has previously ruled that such a bill should have “one basic principle or purpose which ties together all the proposed enactments”.

Given that definition, it is very obvious to me that Bill C-86, with its 850 pages, thousands of clauses and seven separate stand-alone pieces of legislation inside it, is an omnibus bill. However, in this specific case, because Bill C-86 is a budget implementation act, the Liberals have used the loopholes they have added to the Standing Orders in order to include all these measures unrelated to each other.

Standing Order 69.1(2) states:

The present Standing Order shall not apply if the bill has as its main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents tabled during the budget presentation.

Let me point out just a few of the elements we could not find anywhere in the budget presentation or in any of the documentation tabled with the budget. In clauses 461 to 462, better protection for workers, that is not found in the budget presentation or in the documentation.

Clauses 535 to 625, that deal with the head of compliance and enforcement, are not found in the documentation either.

As we have seen with previous bills, the administration will likely find other cases as well. This was certainly the case for Bill C-63, and as you will recall, you divided that bill for the purposes of votes.

Obviously, we cannot say for sure that this list is complete. This enormous bill was tabled only 48 hours ago, and the size of it prevents us from being able to take the time we would need to study it in depth, as we should be able to do as parliamentarians.

It is also important to note that we are not necessarily against these measures. We simply want to point out that since these measures were not mentioned in February's budget, Standing Order 69.1 should apply in this case.

Budget Implementation Act, 2018, No. 2PrivilegeOral Questions

October 31st, 2018 / 3:10 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, the bill is 850 pages long. Last night, at the finance briefing, I asked how many clauses and subclauses were in the bill. Nobody there from the finance department was even able to tell us how many clauses and subclauses exist in this massive piece of legislation. When the finance department itself is unaware of just how many clauses and subclauses are in the bill, thousands surely, we have to wonder about the intention, which the Liberal government has clearly signalled, to ram the bill through the House as quickly as possible.

My contention is that the government wants to push it through with a scant few days of debate, which means, in terms of each clause, that at best, they would be getting a few seconds of parliamentary scrutiny.

As the House is well aware, we wear many hats in the House. We represent our ridings, each one of us, as members of Parliament, and we are proud to do so. I am proud to represent New Westminster—Burnaby. We represent our party caucus often, except for the independents. We represent the policies that have been put together by our respective parties, so there is a partisan part to the job we do.

A key part of our job is to vet government legislation, to go through that government legislation to make sure that the wording is right and to make sure that the legislation would do what it purports to do. That is a key part of the job of a member of Parliament, and has been since the very foundation of our country.

Vetting the laws, making sure that the amendments brought forward are well written, making sure that the changes the government seeks would accomplish what they are supposed to, is a key part of being a member of Parliament.

Many of us have seen a myriad of cases where legislation was not properly vetted. It had to go through the court system and was then returned to the House of Commons, because that vetting process, the work of members of Parliament to actively look through legislation and ensure that the legislation adopted would be effective legislation and well worded, was not done in that way. It went to the courts, and then it came back here.

Words matter. Actions matter.

What I am submitting today is that it is impossible to do our job effectively with the incredible size, the almost clownish size, 850 pages, of the legislation that was tabled by the government just 48 hours ago.

The government's intention to not even take the time to respect parliamentary procedure and work through the committee structure to allow for appropriate debate so that we get more than a few seconds of scrutiny of each clause and subclause, to my mind, indicates a breach of privilege.

On page 60 of House of Commons Procedure and Practice, third edition, it reads that contempt “does not have to actually obstruct or impede the House or a Member; it merely has to have the tendency to produce such results.”

On page 81, it also says:

Speaker Sauvé explained in a 1980 ruling: “…while our privileges are defined, contempt of the House has no limits. When new ways are found to interfere with our proceedings, so too will the House, in appropriate cases, be able to find that a contempt of the House has occurred”.

I would submit that this is a question of privilege that deserves the attention of the House.

Here is the recent history behind omnibus legislation in this place.

When Stephen Harper's government was in power and the Liberals were in opposition, they criticized, and rightly so, the undemocratic tactics of the Conservatives, who used omnibus bills on numerous occasions.

Here is what the current Minister of Public Safety had to say about the Conservatives' budget implementation act in 2012 when he was a member of the opposition.

This is what he said at the time:

On the procedural point, so-called omnibus bills obviously bundle several different measures together. Within reasonable limits, such legislation can be managed through Parliament if the bill is coherent, meaning that all the different topics are interrelated and interdependent and if the overall volume of the bill is not overwhelming. That was the case before the government came to power in 2006.

When omnibus bills were previously used to implement key provisions of federal budgets, they averaged fewer than 75 pages in length and typically amended a handful of laws directly related to budgetary policy. In other words, they were coherent and not overwhelming.

However, under this regime the practice has changed. Omnibus bills since 2006 have averaged well over 300 pages, more than four times the previous norm. This latest one introduced last week had 556 sections, filled 443 pages and touched on 30 or more disconnected topics, everything from navigable waters to grain inspection, from disability plans to hazardous materials.

It is a complete dog's breakfast, and deliberately so. It is calculated to be so humongous and so convoluted, all in a single lump, that it cannot be intelligently examined and digested by a conscientious Parliament.

That was the Minister of Public Safety speaking, and I could not agree with him more. The idea that we must intelligently examine legislation that is brought before us is something that is fundamental to our rights as parliamentarians and our responsibility as parliamentarians.

In 2015, the Prime Minister and the Liberal Party agreed with that point. Here is what was in the Liberal Party platform about omnibus legislation:

We will not resort to legislative tricks to avoid scrutiny....

Stephen Harper has also used omnibus bills to prevent Parliament from properly reviewing and debating his proposals. We will change the House of Commons Standing Orders to bring an end to this undemocratic practice.

As members know, the Standing Orders were changed slightly in June 2017. Standing Order 69.1 was supposed to be the Liberals' answer to the abuse of omnibus legislation. Unfortunately, since then, we have seen a number of new omnibus bills being tabled by the government. Bill C-63, the 2017 second budget implementation act, was divided for votes at second and third reading, because it contained many provisions that were not in the budget documents.

Then there was Bill C-74, the spring 2018 budget implementation bill. It was over 550 pages long and affected over 40 different acts. It dealt with matters as diverse as veterans' compensation, changes to the Parliament Act with respect to maternity and parental arrangements, and the establishment of the office of the chief information officer of Canada.

The second budget implementation act for 2018 is 850 pages long. It is without precedent, certainly in living memory. It has thousands of clauses to study. As I mentioned yesterday, no one is capable of telling us how many clauses and how many subclauses exist in this legislation. That indicates to all members of Parliament that there is a problem with legislation that might have been rushed.

We have an important job: to scrutinize, to examine and to review the legislation to make sure that it actually does what it purports to do. This massive bill, this clownishly sized bill, includes seven different stand-alone pieces of legislation inside the bill itself. Each one of them merits consideration. Each one of them merits review and examination. They have all been thrown together in a massive omnibus bill.

I would argue that we cannot simply qualify this bill as an omnibus bill. It is much more than that. The government tabled this monstrosity on Monday, and it expected the MPs in this House to be ready to start debating it and offering amendments only a few hours after it was tabled. It seems obvious to me that such measures are an obstruction to the performance of the parliamentary duties of all members of Parliament in this House.

Surely, Mr. Speaker, we have reached a point where you must intervene. We have reached the point where this is over the line of what is acceptable in any parliamentary democracy. We have to ask ourselves where this will end. If 850 pages and thousands of clauses are acceptable, could the government table a thousand-page bill or a two thousand-page bill, allocate a minimum amount of time for debate and then ram it through the House? If that would not be acceptable, then surely we can agree that there is a limit somewhere. I would argue that this limit has been reached with Bill C-86.

Therefore, Mr. Speaker, I hope that you will find a prima facie case of privilege here. If you do, I will be ready to move the appropriate motion.

October 30th, 2018 / 3:30 p.m.
See context

Liberal

The Chair Liberal Wayne Easter

We need a motion to accept the committee report.

The subcommittee met on Monday, October 29. Members have a copy of the motion that was agreed to, which outlines the procedure and how we'll handle Bill C-86. I don't think there are any additions to it. Point 2 indicated that, in relation to the pre-budget consultations, the proposed travel to San Francisco and Houston, Texas, scheduled for the fall, be postponed until a later date. Third, the order of reference to commence the study of Bill C-82 would be dealt with in early 2019.

That's the motion, and members of all parties were there.

Is there agreement on the committee report?

Budget Implementation Act, 2018, No. 2Government Orders

October 29th, 2018 / 4:15 p.m.
See context

Toronto Centre Ontario

Liberal

Bill Morneau LiberalMinister of Finance

moved that Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the first time and printed.

(Motion deemed adopted, bill read the first time and printed)