Bill C-59

Fall Economic Statement Implementation Act, 2023

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) limiting the deductibility of net interest and financing expenses by certain corporations and trusts, consistent with certain Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations;
(b) implementing hybrid mismatch rules consistent with the Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations regarding cross-border tax avoidance structures that exploit differences in the income tax laws of two or more countries to produce “deduction/non-inclusion mismatches”;
(c) allowing expenditures incurred in the exploration and development of all lithium to qualify as Canadian exploration expenses and Canadian development expenses;
(d) ensuring that only genuine intergenerational business transfers are excluded from the anti-surplus stripping rule in section 84.1 of the Income Tax Act ;
(e) denying the dividend received deduction for dividends received by Canadian financial institutions on certain shares that are held as mark-to-market property;
(f) increasing the rate of the rural supplement for Climate Action Incentive payments (CAIP) from 10% to 20% for the 2023 and subsequent taxation years as well as referencing the 2016 census data for the purposes of the CAIP rural supplement eligibility for the 2023 and 2024 taxation years;
(g) providing a refundable investment tax credit to qualifying businesses for eligible carbon capture, utilization and storage equipment;
(h) providing a refundable investment tax credit to qualifying businesses for eligible clean technology equipment;
(i) introducing, under certain circumstances, labour requirements in relation to the new refundable investment tax credits for eligible carbon capture, utilization and storage equipment as well as eligible clean technology equipment;
(j) removing the requirement that credit unions derive no more than 10% of their revenue from sources other than certain specified sources;
(k) permitting a qualifying family member to acquire rights as successor of a holder of a Registered Disability Savings Plan following the death of that plan’s last remaining holder who was also a qualifying family member;
(l) implementing consequential changes of a technical nature to facilitate the operation of the existing rules for First Home Savings Accounts;
(m) introducing a tax of 2% on the net value of equity repurchases by certain Canadian corporations, trusts and partnerships whose equity is listed on a designated stock exchange;
(n) exempting certain fees from the refundable tax applicable to contributions under retirement compensation arrangements;
(o) introducing a technical amendment to the provision that authorizes the sharing of taxpayer information for the purposes of the Canadian Dental Care Plan;
(p) implementing a number of amendments to the general anti-avoidance rule (GAAR) as well as introducing a new penalty applicable to transactions subject to the GAAR and extending the normal reassessment period for the GAAR by three years in certain circumstances;
(q) facilitating the creation of employee ownership trusts;
(r) introducing specific anti-avoidance rules in relation to corporations referred to as substantive CCPCs; and
(s) extending the phase-out by three years, and expanding the eligible activities, in relation to the reduced tax rates for certain zero-emission technology manufacturers.
It also makes related and consequential amendments to the Excise Tax Act and the Excise Act, 2001 .
Part 2 enacts the Digital Services Tax Act and its regulations. That Act provides for the implementation of an annual tax of 3% on certain types of digital services revenue earned by businesses that meet certain revenue thresholds. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.
Part 3 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) ensuring that an interest in a corporation that does not have its capital divided into shares is treated as a financial instrument for GST/HST purposes;
(b) ensuring that interest and dividend income from a closely related partnership is not included in the determination of whether a person is a de minimis financial institution for GST/HST purposes;
(c) ensuring that an election related to supplies made within a closely related group of persons that includes a financial institution may not be revoked on a retroactive basis without the permission of the Minister of National Revenue;
(d) making technical amendments to an election that allows electing members of a closely related group to treat certain supplies made between them as having been made for nil consideration;
(e) ensuring that certain supplies between the members of a closely related group are not inadvertently taxed under the imported taxable supply rules that apply to financial institutions;
(f) raising the income threshold for the requirement to file an information return by certain financial institutions;
(g) allowing up to seven years to assess the net tax adjustments owing by certain financial institutions in respect of the imported taxable supply rules;
(h) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by psychotherapists and counselling therapists;
(i) providing relief in relation to the GST/HST treatment of payment card clearing services;
(j) allowing the joint venture election to be made in respect of the operation of a pipeline, rail terminal or truck terminal that is used for the transportation of oil, natural gas or related products;
(k) raising the input tax credit (ITC) documentation thresholds from $30 to $100 and from $150 to $500 and allowing billing agents to be treated as intermediaries for the purposes of the ITC information rules; and
(l) extending the 100% GST rebate in respect of new purpose-built rental housing to certain cooperative housing corporations.
It also implements an excise tax measure by creating a joint election mechanism to specify who is eligible to claim a rebate of excise tax for goods purchased by provinces for their own use.
Part 4 implements certain excise measures by
(a) allowing vaping product licensees to import packaged vaping products for stamping by the licensee and entry into the Canadian duty-paid market as of January 1, 2024;
(b) permitting all cannabis licensees to elect to remit excise duties on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2023;
(c) amending the marking requirements for vaping products to ensure that the volume of the vaping substance is marked on the package;
(d) requiring that a person importing vaping products must be at least 18 years old; and
(e) introducing administrative penalties for certain infractions related to the vaping taxation framework.
Part 5 enacts and amends several Acts in order to implement various measures.
Subdivision A of Division 1 of Part 5 amends Subdivision A of Division 16 of Part 6 of the Budget Implementation Act, 2018, No. 1 to clarify the scope of certain non-financial activities in which federal ‚financial institutions may engage and to remove certain discrepancies between the English and French versions of that Act.
Subdivision B of Division 1 of Part 5 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to, among other things, permit federal financial institutions governed by those Acts to hold certain meetings by virtual means without having to obtain a court order and to permit voting during those meetings by virtual means.
Division 2 of Part 5 amends the Canada Labour Code to, among other things, provide a leave of absence of three days in the event of a pregnancy loss and modify certain provisions related to bereavement leave.
Division 3 of Part 5 enacts the Canada Water Agency Act . That Act establishes the Canada Water Agency, whose role is to assist the Minister of the Environment in exercising or performing that Minister’s powers, duties and functions in relation to fresh water. The Division also makes consequential amendments to other Acts.
Division 4 of Part 5 amends the Tobacco and Vaping Products Act to, among other things,
(a) authorize the making of regulations respecting fees or charges to be paid by tobacco and vaping product manufacturers for the purpose of recovering the costs incurred by His Majesty in right of Canada in relation to the carrying out of the purpose of that Act;
(b) provide for related administration and enforcement measures; and
(c) require information relating to the fees or charges to be made available to the public.
Division 5 of Part 5 amends the Canadian Payments Act to, among other things, provide that additional persons are entitled to be members of the Canadian Payments Association and clarify the composition of that Association’s Stakeholder Advisory Council.
Division 6 of Part 5 amends the Competition Act to, among other things,
(a) modernize the merger review regime, including by modifying certain notification rules, clarifying that Act’s application to labour markets, allowing the Competition Tribunal to consider the effect of changes in market share and the likelihood of coordination between competitors following a merger, extending the limitation period for mergers that were not the subject of a notification to the Commissioner of Competition and placing a temporary restraint on the completion of certain mergers until the Tribunal has disposed of any application for an interim order;
(b) improve the effectiveness of the provisions that address anti-competitive conduct, including by allowing the Commissioner to review the effects of past agreements and arrangements, ensuring that an order related to a refusal to deal may address a refusal to supply a means of diagnosis or repair and ensuring that representations of a product’s benefits for protecting or restoring the environment must be supported by adequate and proper tests and that representations of a business or business activity for protecting or restoring the environment must be supported by adequate and proper substantiation;
(c) strengthen the enforcement framework, including by creating new remedial orders, such as administrative monetary penalties, with respect to those collaborations that harm competition, by creating a civilly enforceable procedure to address non-compliance with certain provisions of that Act and by broadening the classes of persons who may bring private cases before the Tribunal and providing for the availability of monetary payments as a remedy in those cases; and
(d) provide for new procedures, such as the certification of agreements or arrangements related to protecting the environment and a remedial process for reprisal actions.
The Division also amends the Competition Tribunal Act to prevent the Competition Tribunal from awarding costs against His Majesty in right of Canada, except in specified circumstances.
Finally, the Division makes a consequential amendment to one other Act.
Division 7 of Part 5 amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to exclude from their application prescribed public post-secondary educational institutions.
Subdivision A of Division 8 of Part 5 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) provide that, if a person or entity referred to in section 5 of that Act has reasonable grounds to suspect possible sanctions evasion, the relevant information is reported to the Financial Transactions and Reports Analysis Centre of Canada;
(b) add reporting requirements for persons and entities providing certain services in respect of private automatic banking machines;
(c) require declarations respecting money laundering, the financing of terrorist activities and sanctions evasion to be made in relation to the importation and exportation of goods; and
(d) authorize the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to the Department of the Environment and the Department of Fisheries and Oceans, subject to certain conditions.
It also amends the Budget Implementation Act, 2023, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and makes consequential amendments to other Acts and a regulation.
Subdivision B of Division 8 of Part 5 amends the Criminal Code to, among other things,
(a) in certain circumstances, provide that a court may infer the knowledge or belief or recklessness required in relation to the offence of laundering proceeds of crime and specify that it is not necessary for the prosecutor to prove that the accused knew, believed they knew or was reckless as to the specific nature of the designated offence;
(b) remove, in the context of the special warrants and restraint order in relation to proceeds of crime, the requirement for the Attorney General to give an undertaking, as well as permit a judge to attach conditions to a special warrant for search and seizure of property that is proceeds of crime; and
(c) modify certain provisions relating to the production order for financial data to include elements specific to accounts associated with digital assets.
It also makes consequential amendments to the Seized Property Management Act and the Forfeited Property Sharing Regulations .
Division 9 of Part 5 retroactively amends section 42 of the Federal-Provincial Fiscal Arrangements Act to specify the payments about which information must be published on a Government of Canada website, as well as the information that must be published.
Division 10 of Part 5 amends the Public Sector Pension Investment Board Act to increase the number of directors in the Public Sector Pension Investment Board, as well as to provide for consultation with the portion of the National Joint Council of the Public Service of Canada that represents employees when certain candidates are included on the list for proposed appointment as directors.
Division 11 of Part 5 enacts the Department of Housing, Infrastructure and Communities Act , which establishes the Department of Housing, Infrastructure and Communities, confers on the Minister of Infrastructure and Communities various responsibilities relating to public infrastructure and confers on the Minister of Housing various responsibilities relating to housing and the reduction and prevention of homelessness. The Division also makes consequential amendments to other Acts and repeals the Canada Strategic Infrastructure Fund Act .
Division 12 of Part 5 amends the Employment Insurance Act to, among other things, create a benefit of 15 weeks for claimants who are carrying out responsibilities related to
(a) the placement with the claimant of one or more children for the purpose of adoption; or
(b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
The Division also amends the Canada Labour Code to create a leave of absence of up to 16 weeks for an employee to carry out such responsibilities.

Carbon Pricing

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Speaker, when it comes to fighting for Canadians, we will take no lessons from the Conservatives.

Today, I just appeared in front of the agriculture committee. It was shocking to see that one of the members was defending the profit margin of a foreign food processor, at a time when we should all be fighting for Canadians in this House. If the Leader of the Opposition wants to do something for Canadians, he should vote for Bill C-59 to increase competition in this country.

More competition means more choice, better prices for Canadians and more innovation. Canadians understand that. Will he understand?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I appreciate that.

The key message is that we have your back. Canadians have seen that during the pandemic. Is that easy? No. Are the questions that were asked complex? Yes. Is it worth the fight? Definitely.

We know that grocery prices are one of the main concerns for Canadians on a weekly basis. We have taken more action, I would say, in the last six months than any government has. Sometimes when I hear the opposition questioning what I've done in six months, it's probably more than what has been done in 10 or 20 years in terms of reforming competition, making sure that we have a strong consumer affairs office, strengthening the enforcement tools of the Competition Bureau, calling on the CEOs to take action, and making sure that we have federal, provincial, and territorial colleagues all working in the same direction. It's almost unprecedented in our nation's history to see so much being done to tackle one specific issue for Canadians.

I would also say to my colleagues in the opposition that we are all here to serve Canadians. This is not a partisan issue. Food pricing is not a partisan issue. Competition is not a partisan issue. Offering more tools to consumers is not a partisan issue. I would really hope that what Canadians take out of this meeting, Mr. Chair, is that everyone recommits to work for them.

Families are faced with high food prices across the country. There's no magic solution. It's not like I could flip a switch that would immediately provide relief; however, it's trending in the right direction.

Do we need to do more? Definitely, and I appeal to the best judgment of all my colleagues in the House. to pass to Bill C-59, for example, and give more power to the Competition Bureau. I hope that Canadians will see that all of us who have been sent to Ottawa are fighting for them every single day. That's what they expect from us.

We want to be fair. We want to be constructive. We want more choice, more competition and better prices for Canadians. That's what I commit to do. That's what I will continue to do with your support, Mr. Chair.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Well, I'm very happy for Canadians watching, because we've already done it. It's in Bill C‑59. We took the good ideas that were put forward and we added to that. The reason we say that we don't need a private member's bill is that we have a government bill that goes further. Canadians want to make sure we go further. That's the reason.

For folks at home, it's very simple: It's because the bill we had as a government was going further, incorporating a lot of the things that you were mentioning, but going even further. I mean, experts would say that it's the largest reform on competition that you've ever seen. We're going to lengthen the limitation period for non-notified mergers, we're going to have more private enforcement and we're going to make sure that the competition commissioner will not face cost awards like we've seen last time, in the Shaw-Rogers transaction. I would say that we're going full out to make sure that we'll have more competition in this country, and I appreciate the help and the support of the NDP in that.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

We have made a proposal: Bill C-59. I see your colleagues smiling, and I will take that as a sign that they will support this bill.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Thank you for your very relevant question.

The reform of the Competition Act is a three-pronged process, which began with the 2022 budget. Second, there was an update in Bill C-56 and, third, other measures are set out in Bill C-59. It has been said that this is the biggest reform in the past 40 years, since the Competition Act was passed. This law needed to be modernized. For example, under the old version of the act, witnesses could not be subpoenaed. When the committee and people saw that there was a study without—

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Chair, on that note, you know, we're all going to be..., but I want to thank colleagues who are here.

Colleagues from both sides of the House, thank you for being here. I think that this is a committee where we can have one of the most important discussions. We know that grocery prices and the cost of living are a day-to-day concern for Canadians.

I'm really very pleased to be here with colleagues whom I interact with on a daily basis.

Food affordability is a critical issue. It's facing all Canadians. That's why this committee is probably one of the most important in the work because of the work it's doing. Our government, as you've seen, is really committed to stabilizing food prices in Canada. You've seen over the last month and, I would say, the last year that we've been taking decisive action to do so, and we're starting to see results from that.

Last summer our government launched the grocery rebate, which delivered a payment to eligible Canadians, alongside the quarterly GST/HST credit payment. Then, last fall, our government held a series of meetings with the major players in the food supply chain, both grocers and suppliers, to encourage them to take appropriate measures to stabilize grocery prices in Canada. I was told that this was one of the first times that the CEOs of the five major grocery store chains met in Ottawa. On behalf of 40 million Canadians, I expressed our frustration and asked that they take meaningful action to stabilize grocery prices in Canada.

Indeed, in September of last year, I met with the leaders of Canada's five largest grocery chains to stress the government's expectation that they take action to stabilize food prices in Canada.

Then, in October, you will recall that I announced the tripling of our investment to support consumer advocacy organizations, from $1.6 million to $5 million for the next five years. That was really to create a consumer advocacy culture, I would say. You find it in some parts of the country but not everywhere. I would say that in Quebec that culture is very well ingrained. Monsieur Perron, I'm sure, will be able to talk about that. We need to do that nationally far more to make sure that consumers' interests are well represented.

By providing this additional funding, we are ensuring that consumer interest organizations have the support they need to advocate for consumers and address pressing issues like shrinkflation, which, as you know, Professor Charlebois addressed in this committee. Shrinkflation and dequaliflation are big issues facing consumers.

A few weeks later, in November of last year, we launched the food price data hub to improve the availability and accessibility of data on food prices. That's something we've heard from a number of constituents in the supply chain. You want to establish better leverage between different market participants, and access to information is key to that. The food price data hub provides Canadians with more detailed information on food prices and helps consumers make informed decisions about their food purchases.

As part of our efforts to stabilize grocery prices, we are taking into account the pivotal role that the provinces and territories play, and we understand the need for greater co-operation between Ottawa and our provincial and territorial counterparts. I know that you've had the opportunity to hear from many stakeholders in this sector.

That's why, in December 2023, my colleague, Minister MacAulay, and I met with our provincial and territorial counterparts to discuss the next steps in stabilizing food prices across the country. I want to recognize the work of those counterparts. There is a lot to do. For example, unit price is a measure that exists only in Quebec. What can we do to make that a national thing?

We spoke about several large initiatives during that important meeting. I was told that the last meeting took place around 2017. You see how important it is to hold these kinds of meetings. It is not very often that we have big meetings like this that bring together our provincial and territorial partners. I think that this is the right thing to do to work together.

As you're well aware, federal, provincial and territorial governments have been hard at work with industry partners on the grocery code of conduct. This is a substantial measure that will bring fairness, transparency and stability to our grocery sector and supply chain.

That being said, following three years of negotiations and missed deadlines, we are extremely disappointed that some supply chain partners, including two of the five major retailers, have still not signed on to the grocery code of conduct. That is why the government is currently having a hard look at all the options, including legislative options, to ensure fair and transparent practices in the grocery industry.

Let me be clear. There will be a grocery code of conduct in Canada, one way or the other. I think those who are listening—I'm sure that there are a few folks listening today—should take these words very seriously. We demand action. We judge the action taken, and then there are consequences.

You saw that when we amended the Competition Act. We are looking at all of the tools in the tool box to make sure that we have a code of conduct.

We also recognize that maintaining and enhancing healthy competition in the grocery sector is paramount to stabilizing food prices.

This is why our government introduced and passed Bill C-56, the Affordable Housing and Groceries Act. Among other things, this new law provides the Competition Bureau with subpoena powers to conduct effective and complete market studies. I would say, Mr. Chair, that this was demanded by most market actors. It was unthinkable that in 2024 our main enforcement agency would not have subpoena power, so we fixed that.

We also removed the so-called efficiencies defence to ensure that anti-competitive mergers can now be challenged. It gives the bureau more powers to challenge business practices by large, dominant companies that harm competition and drive up prices.

Mr. Chair, these new powers will not lie dormant. Just last month, I think it was in front of this committee that a representative of the Competition Bureau testified. I also sent a letter to the competition commissioner commending the work done by the bureau in its 2023 retail grocery study report. That report clearly identified important barriers to competition and made helpful recommendations to address this issue.

In that letter, I took the opportunity to express how disappointed I was to learn that the Competition Bureau's study did not benefit from the full co-operation of large grocers. I am hopeful that the new powers provided by Bill C-56 will be a useful tool for the Competition Bureau in countering potential abuses in the marketplace.

Additionally, we are committed to further enhancing competition in Canada through targeted reforms in Bill C-59, the fall economic statement implementation act of 2023. This comprehensive proposal is designed to encourage more competition in all markets, including in Canada's grocery sector.

I want to take this opportunity in front of colleagues in this committee to once again call on all parliamentarians to support this much-needed reform to support Canadian consumers. One concrete action that every member can take is to vote to make sure that we continue our reform of the Competition Act.

Among other things, the proposed measure will modernize the merger review regime. I would think that all colleagues would agree to that. It would strengthen the enforcement framework with respect to collaborations that harm competition. I could not imagine any member being against that. Also, it would broaden recourse to the Competition Tribunal by private parties, which we have heard about from witnesses.

Mr. Chair, beyond modernizing Canada's competition regime, we of course continue to encourage more choice for Canadian consumers. That's why we are engaging with international grocers that have played a key role in improving affordability in markets around the world. If you have questions, I'll be happy to report on that.

Mr. Chair, in conclusion, let me say this. When it comes to grocery prices in Canada, our government is taking decisive action. We are committed to stabilizing food prices across the country and we will continue to work with all levels of government to make sure Canadian consumers get the much-needed relief they deserve at the checkout counter.

I want to thank all the members of this committee. I know, Mr. Chair, that you sent a letter recently to ask for action. I think everyone on this committee has a role to play to make sure we work for Canadians.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Can I follow up in terms of guardrails?

If we look at the Shaw-Rogers deal and the Vidéotron takeaway of assets that happened and the guardrails in place if certain promises weren't met, what guardrails are in place right now or after the fact from Bill C-56 and Bill C-59?

[Anthony Durocher, Deputy Commissioner, Competition Promotion Branch, Competition Bureau Canada]

I think Bill C-56 and what's proposed in Bill C-59 are very important changes and very much welcome. Many of the changes are in fact entirely in line with recommendations the Competition Bureau had made to government in the context of consultation.

I would flag this: If we look at the merger regime in particular, merger is the first line of defence in protecting competition in the economy.

There are a couple of other areas where we believe this can be strengthened. One relates to the adoption of structural presumptions in the merger review process, while the other relates to the remedial standard when there is harm to competition. What needs to be fixed? These are issues we will continue to advocate for.

However, by and large, Bill C-56 and Bill C-59 have been very significant in moving Canada forward in having a robust competition regime.

[Jeanne Pratt]

Maybe I'll start and talk from the mergers perspective. I'm going to defer to my colleague to talk about the larger changes in the acts.

We are incredibly welcoming of the changes in Bill C-56 and Bill C-59. I do think that these are the first significant changes to our act since 1986. The merger provisions are affirmed. That is transformative. The repeal of the efficiencies exception, as well as the addition of being able to consider concentration under the merger provisions, is very different from a world where the tribunal explicitly could not do that, and adding that is a factor.

It is also very helpful when we're talking about sectors like telecommunications, which tend to have fairly stable oligopolistic market structures, that we have an explicit provision to deal with tacit and explicit coordination in section 93, the merger provisions, as well. We're very welcoming of all of those changes to the merger provisions.

Mr. Durocher can speak to the larger view of the other changes in the act.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Thank you, Mr. Chair.

Good morning, everyone. Welcome to the committee, witnesses.

For Ms. Pratt from the Competition Bureau, in terms of the teeth of the Competition Bureau, if I can use that analogy, I believe that what's in Bill C-34 and what's in Bill C-59 currently have been probably two decades overdue in terms of the changing competitive environment we operate in and also the nature of a number of industrial sectors in Canada where concentration is an issue. You can chalk it up to geography, capital requirements, investment and so forth.

I want to get on the record how important the changes were to the Competition Act in Bill C-34 and now in Bill C-59, from your point of view, in looking at combinations, mergers, acquisitions, inverse deals or whatever term you want to use.

[Jeanne Pratt]

What I can say is we are very welcoming of the proposed amendments in Bill C‑59, which would immunize the commissioner from cost awards when we are bringing a case in the public interest. I think that goes a long way to addressing any potential chilling impact that the cost awards could have on our bringing cases before the tribunal.

[Jeanne Pratt]

It's really difficult to say what impact it would have had, because we did our entire investigation, all the litigation, under the existing framework, which included section 96.

What I can tell you, though, is that with Bill C‑56 and the end of the efficiencies exception in addition to the proposals in Bill C‑59, I do think there would have been a difference, particularly through Bill C‑59, since concentration levels will now be a factor that the tribunal can consider.

For example in the Rogers-Shaw case, we would have seen that the four largest firms would have held a market share of 95% collectively. The repeal of the provision that says the tribunal can't look at concentration as well as the addition of a factor that says that they can actually consider it, in addition to coordinated effects—a specific factor being added for that—definitely would have changed some of the analysis in the Rogers-Shaw trade talks.

[Jeanne Pratt, Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, Competition Bureau Canada]

Good morning, Mr. Chair and members of the committee.

My name is Jeanne Pratt. I am the senior deputy commissioner of the mergers and monopolistic practices branch at the Competition Bureau. Joining me today are my colleagues Anthony Durocher, who is the deputy commissioner of the competition promotion branch, and Laura Sonley, who is the associate deputy commissioner in our mergers directorate.

The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. We do this because competition drives lower prices and innovation while fuelling economic growth. We administer and enforce the Competition Act by investigating and taking action to address anticompetitive business practices that harm consumers, competition and our economy.

The Competition Act’s merger provisions are the first line of defence against harms to competition. They are a preventative tool that guard against harmful concentration of market power.

Competition in the telecom sector has been and continues to be a priority for the bureau. It's the backbone of commerce in the digital age and a critical service for businesses and consumers alike. This committee is well aware that the bureau filed an application to the Competition Tribunal seeking to block the proposed merger between Rogers and Shaw. While we were unsuccessful in our attempt, we stand by our decision to bring the case and our reasons for it. We are continuing to monitor the markets since the transaction closed.

The bureau will continue to prioritize our work in this sector through both our enforcement and our advocacy roles. Just two weeks ago, Ms. Sonley participated with other bureau personnel in the ongoing CRTC hearings on the review of the wholesale high-speed access service framework.

Recent amendments to the Competition Act, notably those made in 2022 and more recently through the Affordable Housing and Groceries Act, have given the bureau more tools to protect and promote competition in Canada. The committee will also be aware that Bill C-59, which is currently before the House and is being prestudied in the Senate, contains several other amendments that, if passed, will further strengthen the Competition Act.

We are committed to using the new tools wherever necessary to protect competition. We also look forward to updating our guidance to Canadians and Canadian businesses on how the bureau will enforce these amendments.

The Bureau strongly believes that competition can play a greater role in the concentrated telecom sector, with Canadian consumers, businesses, and the overall economy reaping the benefits. More competition unlocks innovation and productivity, and helps us to maintain a high standard of living.

We share the committee’s interest in enhancing competition and working to ensure that high quality telecommunications services are reliable and affordable for all Canadians.

Before fielding your questions, I would note that the law requires the bureau to conduct its investigations in private and to keep confidential the information we have. This obligation may prevent us from discussing certain facets of our investigation.

I would like to thank the committee for the opportunity to appear today. We look forward to your questions.

[Helena Sonea, Director, Advocacy, Canadian Cancer Society]

Thank you very much.

Hello. My name is Helena Sonea, director of advocacy at the Canadian Cancer Society. With me today is Ciana Van Dusen, manager of prevention, and our colleague Rob Cunningham, senior advocacy adviser.

Cancer is the leading cause of death in Canada and is responsible for 26% of all deaths. In 2023, researchers estimated that there would be over 200,000 new cancer cases and nearly 87,000 cancer deaths in Canada, about half of which are expected to occur in women.

Lung cancer is the leading cause of death in women. About 72% of lung cancer cases in Canada and 30% of all cancer deaths are due to smoking tobacco. A comprehensive strategy is needed to reduce tobacco use among women and girls to achieve Canada's objective of under 5% tobacco use by 2035.

We recommend that tobacco taxes be increased by six dollars per carton; that Bill C-59's legislative measures for a cost-recovery fee be adopted with strengthening amendments and subsequent regulations to cover the full cost of the initiatives in Canada's tobacco strategy from tobacco and vaping companies; that tobacco legislation be strengthened by banning all remaining tobacco promotion and banning flavours in all tobacco products; that measures be adopted to reduce youth vaping, including banning flavours in e-cigarettes; that cessation and other programs be enhanced; and, finally, that action be taken on nicotine pouches, which can be sold to children of any age and are advertised in places where youth are exposed to them.

Cancer does not solely touch the person who lives with it. It takes a community and a society to care for them, and no one understands that better than caregivers. Caregivers provide vital, unpaid, practical, physical and emotional support to loved ones with complex health conditions, including cancer. Half of the people in Canada will be caregivers in their lifetimes.

In 2018, caregivers provided 5.7 billion hours of care work, the value of which is estimated to be between $97 billion and $112 billion annually. Women disproportionately bear the challenges of this work.

The Government of Canada has tried to recognize the tremendous role of caregivers; however, substantial unmet needs remain. We recommend the federal government improve support for current and future caregivers by implementing or enhancing accessible, refundable federal tax credits to compensate these families.

I will now turn it over to Ciana to speak to cervical cancer.

Amendments to Bill C-318 at Committee Stage

[Leah Gazan, NDP, Winnipeg Centre, MB]

Mr. Speaker, I rise to intervene on a point of order raised by the member for Winnipeg North this morning respecting Bill C-318, an act to amend the Employment Insurance Act and the Canada Labour Code, adoptive and intended parents.

My colleague, the member for Winnipeg North, mentioned the committee process, where I tabled crucial amendments to this legislation that would bring the bill into compliance with Canadian law, specifically with the United Nations Declaration on the Rights of Indigenous Peoples. Let me remind the government that it is the government that passed Bill C-15, which affirms that all legislation going forward has to be compatible with the United Nations Declaration on the Rights of Indigenous Peoples.

Not including these important amendments means that the legislation now is not compliant with articles 19, 21 and 22 of the United Nations Declaration on the Rights of Indigenous Peoples. The member of Parliament for Winnipeg North talked about the amendments being out of scope, but even the sponsor of the bill said that the amendments were absolutely within the scope of what Bill C-318 was trying to do.

My colleague, the member for Winnipeg North, also pointed out the need for a royal recommendation for these amendments. I would like to encourage him to reconsider this, considering he has the highest number of kids in care in an urban area in the whole country, 90% who are indigenous.

What my colleague failed to mention is that the Liberal government has the power to allow the amendments to proceed by giving notice of a royal recommendation for Bill C-318. In fact, Bosc and Gagnon, at page 839, states the following:

...since Standing Order 79 was changed in 1994, private Members’ bills involving the spending of public money have been allowed to proceed through the legislative process on the assumption that a royal recommendation will be submitted by a Minister of the Crown before the bill is to be read a third time and passed

The only ones who can act right now are the Liberals. On their watch, they are not upholding Canadian law, which includes Bill C-15. We are meeting about the red dress right now, about murdered and missing indigenous women and girls. The child welfare system is called the pipeline for becoming murdered and missing. The government's failure is not addressing the 90% of kids in care.

It is only the Liberals who can save the lives of indigenous children who are being dropped off at shelters, separated from their families and communities. I am asking them to table a royal recommendation to do the right thing to ensure that Bill C-318 can go to a vote at third reading with the amendments adopted by committee. Although they have mentioned they are putting forth Bill C-59, a similar bill, once again it is not consistent with upholding Canadian law and the United Nations Declaration on the Rights of Indigenous Peoples.

It is in the hands of the Liberals. Lives are in their hands. They need to put forward a royal recommendation. This is a life and death matter. They have to stop playing with indigenous lives and do what is needed now.