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.

Fall Economic Statement Implementation Act, 2023

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, my colleague's intervention was excellent.

I will ask the member about the Competition Act and Bill C-59, particularly because it is the NDP that is the only party that is fighting corporate greed. I would like to give a specific example.

I am a member of the indigenous and northern affairs committee, and it was my motion that got the North West Company, a grocery company that is subsidized by the Liberal government, to offer subsidies to alleviate poverty. However, instead of using the subsidy to alleviate poverty, the North West Company is helping to feed corporate greed. For example, the CEO, Dan McConnell, would not answer my questions regarding his salary, his benefits or the bonuses that he gets. Instead, he said that he would give me the responses in written form, which he has now provided. That CEO, in 2023, earned $765,000 and in the same year received a bonus of just over $1 million.

How would the Competition Act and Bill C-59 help to address that kind of corporate greed?

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Speaker, I have a question for the member who just finished his speech. I would like to say at the outset that the number of Quebeckers already registered for the NDP's dental care program is in the hundreds of thousands. We also know that thousands of Quebeckers are getting their NDP dental care card every week. I think that is extremely important.

Pharmacare is another topic of discussion. All of the major unions in Quebec say that they view the NDP's pharmacare bill, Bill C‑64, in a very positive light. It is important to mention these two things. The NDP is the one proposing measures in the House to improve the daily lives of people across Canada. That is extremely important.

We are supportive of the fall economic statement, Bill C-59. I will talk about some of the measures the NDP has inserted into it, but I will start by saying that this is not an NDP budget.

Of all the governments in the country, the two most popular are the government of British Columbia and the government of Manitoba, and they are two NDP governments. They have both been very effective. The Manitoba NDP government is new, but it is extraordinarily popular. This is because the NDP really knows that the essence of good stewardship, of managing a democratic government, is ensuring that it is not the rich who are taken care of but, rather, regular folks. We have formed government provincially, of course, in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia. All those governments have been governments that have made a difference in the lives of people.

The simple reason the two most popular governments in the country right now are NDP governments is the financial statements that are issued by the federal ministry of finance. As members well know, the federal ministry of finance is not a hotbed of social democrats or democratic socialists, but it does publish the fiscal period returns. If members look through them, and I hope they do before the end of the evening, they will see that, over the last 40 years, the best governments, in terms of managing money, paying down debt, expanding education services, expanding housing services and expanding health care systems have been, systematically, over the last 40 years, NDP governments. That is why the two most popular governments in the country right now are NDP governments. It is because the NDP is not beholden to lobbyists.

The corporate Conservatives are run by lobbyists. Their national executive is run by lobbyists. There are lobbyists permeating the Conservative headquarters. The Conservative caucus and the campaign team are all lobbyists for the corporate sector. When the Conservatives were in government we could see how badly they performed. They do not understand the issue of stewardship. The infamous Harper tax haven treaties have bled over $30 billion, each and every year over the last 17 years, out of this country. That is $30 billion that could have been used for health care and housing. It could have been used for a variety of services for veterans, seniors and youth. It could have lowered post-secondary education costs. It could have made a big difference, but that was not what the Conservatives chose to do.

The Liberals, when they came to power, kept many of the tax breaks that had been given to the richest of Canadians, the wealthiest of Canadians, who have never paid their fair share, and the most profitable corporations. The NDP's approach is different, which is why the fiscal period returns to the federal ministry of finance show conclusively that the NDP and NDP governments are the best at managing money.

This is not an NDP budget, by any means. There are elements that the NDP forced into the budget that would make a difference in the lives of working people. The reason we are supporting it is the amendments we have achieved, in the same way that we brought dental care to Canadians. There are two million who have signed up already, including 100,000 seniors. There are many who are, for the first time in their lives, getting access to dental care, and this is just in the first two weeks of this new NDP program. NDP dental care is making a difference.

Earlier tonight, we moved the pharmacare bill to the health committee, which is where it should go. I am looking forward to those hearings over the next couple of days. People have been waiting for decades to have pharmacare added to our health care program and our health care strength in this country.

Mr. Speaker, you will recall in this House, as I am sure you have a great depth of historical memory, that 60 years ago in this House of Commons, just a few feet from this temporary house in the West Block, in Centre Block, Tommy Douglas, as the founding leader of the NDP, brought forward universal health care, which was viciously fought against by Conservatives at the time, who did not want to see people getting health care. However, it was a minority Parliament and Tommy Douglas was able to successfully deliver universal health care to Canadians.

Tommy Douglas always thought that we needed to make sure that health care was available from the tip of our heads right to the soles of our feet. He always envisaged that we would move to pharmacare, that we would move to dental care and that Canadians would have access to the full range of health care services that all other countries with universal health care enjoyed. Fortunately, we have the member for Burnaby South as our leader who feels the same way, and this has been a hallmark of NDP leaders over the decades. Every time there has been a minority Parliament, the NDP has stepped up as the worker bees of Parliament, as the adults in the room. We have gotten things done that have made a difference for Canadians, from universal health care to a whole range of other things like the Canada pension plan, employment insurance and all those things that make a difference in people's lives. All of them come thanks to the NDP, because that is our role in Parliament.

Therefore, when we look at the fall economic statement, we can see already that NDP stamp that makes a difference, but unlike the corporate Conservatives and the lobbyist Liberals, we do not believe in spending enormous amounts of money on the wealthy, on the pampered and on big corporations. We do not believe in funding massively the corporate sector. We believe in negotiating with the corporate sector. The reason we are pressing so hard for pharmacare is that countries that have universal pharmacare are able to have the bulk-purchasing negotiating power that forces down the price of drugs. New Zealand is a great example, where there is a reduction of 90% in the cost of certain medications because the New Zealand government was able to say to the pharmaceutical companies that if they wanted to come into that market, they would have to pay New Zealand's price. Currently, with the patchwork of plans that the corporate Conservatives and the lobbyist Liberals have put into place over decades, it is the pharmaceutical company executives who decide what the prices are, and that has to change.

The fall economic statement does contain some measures that we believe would make a difference. First off, we believe firmly in starting to adjust a taxation system that has become profoundly unjust and unequal. We have said that when we look at the infamous Harper tax haven treaties that cost us $30 billion a year, according to the Parliamentary Budget Officer, and we look at the range of other loopholes that exist, it is important to take steps to ensure that those loopholes are closed. The real taxation rate for Canada's largest corporations is single digits because of the loopholes. Because of the corporate executives' ability to write off and because of their ability to take money overseas where they do not have to pay taxes on it, their real taxation rate is in the single digits, less than 10%.

Why not ask Canadians what their taxation rate is? Middle-class Canadians pay their taxes expecting that they will get services and supports in return, but instead, under the Harper regime, we saw that the Conservatives slashed services to those taxpayers who had paid money into the federal government and they gave that money away. They gave it to tax havens. They gave it to the banks. Unbelievably, the Harper regime gave $160 billion to the banking sector so that the banks could prop up executive bonuses and corporate dividends.

The Conservatives have never apologized for that, and Liberals have never apologized for the $750 billion, again, in liquidity supports that they offered to the banking sector just a few years ago. It took 96 hours to provide $750 billion in liquidity supports. Between the two, the corporate coalition of Liberals and Conservatives, over the past 15 years, has given, unbelievably, in current dollars, over a trillion dollars in liquidity supports to the banking sector to prop up dividends and profits and executive bonuses.

We look at the health care problems that we are experiencing, the housing crisis and other problems that exist. We had, today, the member for Nunavut, who is an extraordinary member of Parliament, asking about day care that is not being adequately funded in Iqaluit, yet for Liberals and Conservatives, between them, giving a trillion dollars to the banking sector is no problem.

We can look at the tax havens over the last 15 years. That is half a trillion dollars. That is $30 billion a pop, according to the Parliamentary Budget Officer, given away to overseas tax havens without a penny of return to Canadians, yet we look at people with disabilities. Half of those who have to go to food banks to make ends meet, half of those who are sleeping outside in the parks and main streets of our country, are people with disabilities. They are not getting what they need in terms of support, but between Liberals and Conservatives, the corporate coalition, for 15 years, half a trillion dollars went to offshore tax havens.

We can look at oil and gas CEOs. Between both the Harper Conservatives and the current Liberal government, over the last 15 years, we have seen $100 billion given to oil and gas CEOs. There is a ton of money that goes to the wrong places in this country. That is why NDP MPs are here fighting on behalf of Canadians, delivering on pharmacare and affordable housing, finally. We had to push the Liberals hard on that over the last couple of years.

We are delivering on dental care, anti-scab legislation, a clean energy strategy and all those things, because, as worker bees in Parliament, we believe firmly that the investments need to happen with families and regular people right across this country, not the rich and the pampered. That is where the corporate Conservatives love to spend tons of money. That is where we have seen, sadly, the Liberal government spend tons of money. We believe that money needs to go to regular people.

When we look at this fall economic statement, there is a first step. Again, the NDP pushed hard for that. We finally will get an annual tax of 3% on types of digital services. This is earned by larger companies with more than $1.1 billion in revenue. This is an important step that we support. Again, is this an NDP budget? No. Does it take an important first step? Yes, it does.

As for the investments in housing, the apartment construction loan program, $15 billion, and the affordable housing fund over the next three years for non-profit and co-op and social housing, we support those as well. In fact, the member for Vancouver East fought hard and so did the member for Nunavut, to make a difference in terms of housing.

I do need to mention the anti-scab legislation for a moment and the work of my colleague from Rosemont—La Petite-Patrie, who did a remarkable job in making sure that, finally, replacement workers will be banned at the federal level, and Parliament will be called upon to get a final vote on that in the coming weeks. This is vitally important.

The NDP MPs work as a team. Our leader is the member from Burnaby South. We have made an enormous difference in this Parliament. We made an enormous difference in the last Parliament. We will recall, at the height of the COVID crisis, that it was the NDP that was pushing the government, fortunately in a Parliament where I think it is fair to say that all parties did work together, to invest more than $40 billion to ensure that people, families, people with disabilities, seniors and students were taken care of. Small businesses actually had the wherewithal to keep that shingle out as part of their small business by some rent relief.

All of those things came as a result of the NDP fighting hard on behalf of people. There have been two consecutive minority Parliaments where the NDP has made a difference.

Let me get to the crux of what is in Bill C-59 that we can support. The amendments that were brought originally by the member for Burnaby South, the leader of the NDP, would finally enhance the Competition Bureau. This is fundamentally important. We have had no consumer protection in this country. The corporate sector, the lobbyists, have really been paramount. We have seen, over the decades, how successive Liberal and Conservative governments have refused to do anything to enhance consumer protection.

The member for Burnaby South, the national leader of the NDP, brought forward enhancements to the Competition Act that would ensure that we can crack down on food price gouging and gas price gouging that we are seeing. It has happened with impunity because the Competition Bureau has not had the tools to take action against it. Members will recall that the member for Burnaby South tabled a bill in this regard. The NDP fought hard. We negotiated hard. We did our work as the worker bees in Parliament.

As a result of that, many of the enhancements to the Competition Act are now in this legislation. This is important because despite the protestations of the member for Carleton, who tries to pretend that putting a price on pollution has led to the difficulties and challenges around the rise in food prices, we know that most Canadians understand, unlike the member for Carleton, that it is actually food price gouging that has taken place. We are seeing massive profits in the grocery industry. We are seeing record CEO bonuses.

We have a Conservative Party that is absolutely inundated with lobbyists. Lobbyists run its national party and run its campaign team. This is no surprise because of all the corporate Conservatives have done. Their past track record is giving massive amounts of money to the corporate sector, without ever asking for anything in return. It is like they are not even trying to get any benefits for Canadians. They just hand it out. There were the infamous Harper tax haven treaties, $30 billion each and every year handed over to the wealthiest of Canadians in the corporate sector, and they never asked for a thing in return.

The role the NDP plays in Parliament is so important because the Competition Act amendments that we brought in would mean that we could start cracking down on the egregious food price gouging Canadians are experiencing when they go to the grocery store, and gas price gouging. Just a few weeks ago, my colleague from Courtenay—Alberni signalled this. I know my colleagues in British Columbia, like my colleague from South Okanagan—West Kootenay, can attest to this. The prices in British Columbia all of a sudden skyrocketed by 30¢ a litre. There was no explanation because the companies can do that now. They can do gas price gouging.

The companies do this when we have peak season in terms of travel in British Columbia. It is a beautiful province. We like to get around in British Columbia. The gas companies can gouge with impunity because the Conservatives have allowed them to do this and the Liberals have allowed them to do this. Finally, with these enhancements, the Competition Bureau and the Competition Act would be able to crack down on this gas price gouging that has inflicted so much pain on British Columbians and Canadians right across this country.

These are two important elements that are part of this bill, and it is why we are supporting it.

I wanted to give a shout-out to my colleague from London—Fanshawe. She presented a private member's bill waiving the GST on counselling and psychotherapy. The NDP has also put that into this bill. That would make a difference for all those who need counselling and psychotherapy. Those who have experience with mental illness, mental challenges and mental health know how important it is to be able to pay for those services. This is another innovation that would make a difference.

The NDP has achieved a lot to improve the bill, and we will support it.

[Joël Godin, Conservative, Portneuf—Jacques-Cartier, QC]

Mr. Speaker, I would like to thank my colleague from Lac-Saint-Jean. I also have a treasured whip, but not the same one.

According to my colleague, the federalist parties—whether the governing party or the Conservative Party on this side—have supposedly not been advocating for Quebec. As he said, the people of Quebec will decide. I think he is in the wrong Parliament. I think that if he wants to ask the people of Quebec to undo the Canada we know today, he should run for the National Assembly.

Partisan comments aside, I would like to know what my colleague thinks about including registered massage therapists in Bill C-59.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, I am pleased to be here this evening to finally give this speech, which I have been looking forward to doing for quite some time. I would like to start by saying that there are some good measures in Bill C‑59. As everyone knows, this is an omnibus bill. It would have been terrible to not have anything to sink our teeth into. Of these good measures, I have identified a few that I think are worth highlighting in the House.

First, Bill C‑59 seeks to make it more difficult to use tax havens by cracking down on two schemes. The Bloc Québécois has wanted to crack down on tax havens for a long time. It is not perfect, but the government is nevertheless tackling two schemes, specifically interest deductibility between subsidiaries and hybrid mismatch arrangements. This measure was recommended by the OECD working group on tax evasion.

One of the schemes involving tax havens is the creation of financing subsidiaries. Simply put, the primary function of a subsidiary in a tax haven is to lend to the Canadian parent company. The interest paid by the Canadian company is thus diverted to a tax haven where it is essentially not taxed. That is the loophole that Bill C‑59 aims to close. This is a good measure. As for the implementation of rules on hybrid mismatch arrangements, this is consistent with the OECD and the Group of Twenty base erosion and profit shifting project recommendations regarding cross-border tax avoidance structures.

This bill also picks up on the idea of Bill C-323, an act to amend the Excise Tax Act regarding mental health services, which was sponsored by my colleague from Cumberland—Colchester and passed unanimously at second reading. The Bloc Québécois supports that bill. Quebec is a pioneer in psychotherapy legislation and has inspired several provinces, like Ontario, to regulate psychotherapy. Anyone who wishes to offer psychotherapy services in Quebec and who is not a doctor or psychologist must obtain a licence from the Ordre des psychologues du Québec. However, the different tax treatment afforded to the various professional associations is unfair. For doctors and psychologists, psychotherapy falls within their scope of practice and is therefore not taxable, but all other categories of professionals must charge tax on the services they provide. The bill would address this unfairness and would come as a welcome change, given the growing need for mental health services. The bill also includes a review of the Federal-Provincial Fiscal Arrangements Act. At first glance, this is a small step in the right direction.

In the House, if a bill is good for Quebec, then the Bloc Québécois votes in favour of it. If a bill is bad for Quebec, then my colleagues and I vote against it. As I said in the beginning, there are some good things about Bill C‑59, but mostly it is a bad bill. That is why the Bloc Québécois will be voting against it. Bill C‑59 is an omnibus bill that is almost 550 pages long. It sets out 60 different measures and amends or creates 31 laws and regulations. I would like to remind the House that there are some good things in the bill but that the Bloc Québécois will be opposing it at second reading because of two measures.

There are two things that the Bloc Québécois still does not like about the bill. That will not change, regardless of the political party sitting on the other side of the House. The first thing is that this is the umpteenth time the federal government has tried to infringe on provincial jurisdictions. The second thing is the subsidies that the government is giving to oil companies at Quebeckers' expense. This bill gives $30.3 billion in subsidies to oil companies in the form of tax credits. The Minister of Environment and Climate Change is telling us that his government has put an end to oil subsidies, but he should have read his government's bill because that is not what it says. We are talking about $30.3. billion that is being taken out of taxpayers' pockets and given as a gift to oil companies so that they can pollute less, when they obviously do not need that money. One thing is certain, I highly doubt that the official opposition will do much to oppose that, even if it is “wacko”, as they say.

Another crazy idea in this bill is the creation of a federal department of municipal affairs called the department of housing, infrastructure and communities, which will lead to more federal attempts at interference, more endless discussions and more delays, when the housing crisis requires swift action.

On top of these two very bad measures, the government made no attempt to address the Bloc Québécois' priorities, priorities that reflected the real and urgent needs of Quebeckers. When my colleagues and I are on the ground, in our ridings, we connect with our constituents and take calls every day at our offices. People talk to us about these needs.

Worse yet, in response to Quebec's requests, the federal government decided once again to disregard provincial jurisdictions. Housing, local infrastructure, land use, municipal affairs: none of that falls under federal jurisdiction.

Nevertheless, Bill C‑59 creates the department of housing, infrastructure and communities. By creating a designated department, Bill C‑59 gives the minister the capacity to interfere even more. This department will allow the federal government to impose even more conditions on the provinces and municipalities and, of course, make the delays even worse.

Former prime minister Pierre Elliott Trudeau tried a similar stunt when he created the department of urban affairs in 1971, and it failed miserably. To prevent the federal government from meddling in municipal affairs, the Quebec government amended its Act respecting the Ministère du Conseil exécutif to prohibit municipalities, RCMs, school boards and crown corporations from dealing directly with Ottawa. That law remains in effect.

The department of urban affairs caused endless bickering between the federal government and the provinces for its entire existence and never managed to deliver anything useful. It was finally shut down in 1979, which was good for Quebeckers, under pressure from a certain PQ government led by René Lévesque.

Despite this disastrous experiment, the federal government is trying something similar today. After the national housing strategy was announced, it took more than three years for an agreement to be signed between Quebec and Ottawa. Just recently, the federal government refused to give $900 million to Quebec to create housing, with no strings attached. It is hard to imagine that negotiations will be streamlined under a new department.

The picture is not much brighter if we look at the other federal parties. The government is essentially proposing more and more centralization. The Conservatives display the same centralizing tendency, only they are also threatening to cut investments if housing construction targets are not met. This is a disturbing trend among all the federalist parties in the House.

It will come as no surprise to learn that we will not support the creation of a department whose main mission is to interfere in Quebec's jurisdictions. We will not support Bill C‑59 either. The Bloc Québécois will continue to oppose all forms of federal interference in Quebec's jurisdictions for as long as it takes, for one very simple but exceedingly important reason: Quebec never has been and never will be dictated to by the federal government.

Once again, we have proof that this government, this institution, the federal Parliament, does not respect the Quebec nation. It will not respect the Quebec nation until the people of Quebec decide to create a true nation with all the tools needed to achieve Quebec's sovereignty and independence.

When that time comes, we will congratulate them on creating a new department of no consequence to us.

The House resumed from May 21 consideration of the motion that Bill C‑59, 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, be read the third time and passed.

[Gary Anandasangaree, Liberal, Scarborough—Rouge Park, ON]

moved that Bill C-59, 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, be read the third time and passed.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

Before we proceed, I wish to remind hon. members of the Speaker's ruling of Tuesday, January 30, regarding Bill C-59, 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. At the time, the Chair indicated that, pursuant to Standing Order 69.1, the question on the motion for the second reading would be divided to provide for separate votes on measures that were related to each other.

Furthermore, on November 8, 2017, at page 15145 of the Debates, Speaker Regan explained how the Chair intended to implement Standing Order 69.1. He stated, “The vote at third reading will be conducted in a similar way to the vote at second reading, assuming all of the identified elements are still part of the bill by the time it reaches that stage.”

Therefore, pursuant to Standing Order 69.1 the question will be divided at the third reading stage as follows:

First, the measures in clauses 1 to 136, 138 to 143, 168 to 196, 209 to 216, and 278 to 317 appear in the 2023 budget. Since their purpose is to implement certain budget proposals, they would be grouped based on this unifying theme and voted on together.

Second, the measures that can be grouped under the theme of affordability, clauses 137, 144, and 231 to 272, will be subject to a different vote.

Clauses 197 to 208 and 342 to 365 will also be grouped for voting because they amend the Canada Labour Code.

Clauses 145 to 167, 217 and 218 will be subject to a separate vote because they relate to vaping products, cannabis and tobacco.

The remaining divisions of Bill C-59, consisting of clauses 219 to 230, 273 to 277, 318 and 319, 320 to 322 and 323 to 341, will each be voted on separately because they are not linked to any of the common themes mentioned earlier. In all, nine votes will be held.

I would like to remind members that when putting the question on groups of clauses for Bill C-59, I intend to follow a procedure similar to that outlined in Standing Order 76.1(8) for the putting of the question on amendments at report stage.

I thank hon. members for their attention.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

The House will now proceed to the deferred recorded division on the motion at report stage of Bill C-59.

The question is on Motion No. 1.

The House resumed from May 10 consideration of Bill C-59, 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, as reported (with amendments) from the committee, and of Motion No. 1.

[Adam Chambers, Conservative, Simcoe North, ON]

Indeed, Mr. Lawrence is correct.

Some of those workers we're subsidizing are coming in with their expertise as temporary foreign workers. I hope the idea is that they'll pass their expertise on to Canadian workers and members of our unions.

What's interesting is that the government has decided to play the game where they're going to subsidize everything to come. We've been told for at least a generation that, compared to the U.S., Canada stands out for a few reasons. One is a favourable exchange rate. Two is that health care costs are largely borne by government. Three is a well-trained workforce. Apparently, none of those things matter. What we have to do is now meet the U.S. dollar for dollar on the subsidies that they're going to provide. If we want to go down the same fiscal path as the U.S., then I suppose that's the way the government would like to go.

I think it's very concerning. We don't have the same amount of money that the U.S. does. We don't have the world's reserve currency. We are going to see the challenges that this government's spending and subsidization are going to have on the economy when our dollar goes down and when our balance of payments gets significantly out of whack because we're not allowing investments in productive areas of the economy. The government has a clear path, which is that we will subsidize to make it happen.

The other interesting point is that the government says to look at these new data points. Foreign direct investment is going up. The only reason there's foreign direct investment is that the government is subsidizing the investment that's coming here. That's not realistic, and it's not practical.

I mean, at this recent announcement last week with Honda, the person at Honda said Canada was their third choice. They looked at a couple of other countries before they came here. Why did they come here? It's because the government gave them tons of money. Of course, they're going to come here.

Natural gas has no business case, notwithstanding the fact that multiple countries, representatives and leaders have come here and asked for it. We're to believe that natural gas has no business case, but for some of these investments that the government is making, the only business case that exists is a subsidy. I have a hard time following that.

I appreciate the intervention from my colleague to remind everyone that those initial workers at these battery plants will be temporary foreign workers.

Mr. Chair, I'm going to pause here for a moment. Before I pass on the floor, I will come back to the transcript, because there is some good stuff in here. I think it's even more relevant to what we'll be discussing.

We were in the middle of witness testimony and hearing from officials on the budget. The government decided to put a very aggressive timeline on the budget to get it reported back to the House. We do this every single spring. The government could have brought forward a motion to have a certain number of witnesses and a certain number of hours. We could have agreed upon that and ensured that the NDP was satisfied with the number of witnesses, and then we could have deferred the decision about when to start clause-by-clause to any time. We could be dealing with it in a week from now. We could be dealing with it in two weeks from now. They could have brought a motion just on when they wanted to start clause-by-clause at any time and not taken witness time away.

I suspect that we'll wind up in the same place as we were last year. We'll run the clock all the way down to the end and have a rushed set of witnesses, or maybe not. Maybe this time it will require a House instruction. What we've been doing is not an effective way to be looking at bills.

I appreciated the fact that, with Bill C-59, we had a certain amount of witness testimony, which was negotiated with the former finance critic of the NDP. That was reasonable, but we could have the same here if we just agreed to defer the decision on the clause-by-clause start date for a couple of weeks, or even just a couple of meetings. It's unfortunate that we may be here tonight until midnight, as I understand there are resources.

I'll have to find another podcast with Mr. Carney to regale you all with, but it's pretty clear that Mr. Carney is looking to enter the political arena so I think we should give him the opportunity. He's been to this committee before. He's always held himself very well. He's capable on a number of fronts. He's a dynamic individual who already appeared at the Senate committee last week. He appeared at the finance committee a couple of years ago. He's going on podcasts. He's giving speeches.

Those Liberal caucus members who are supporting other candidates should want Mr. Carney to face a certain level of scrutiny because it's not fair that members of cabinet who are also running have to stand up in the House of Commons and receive questions every day from opposition members, or they have to show up at a committee to be grilled. Those leadership contestants are facing a level of scrutiny. What Mr. Carney has been able to do is basically enter the political arena with very little scrutiny, so we'd like to provide him the opportunity to give his plan for Canadians and where he demarcates from the current government, as he's been talking about in a few of these examples such as that the budget is not focused enough on growth.

By the way, back in this podcast, which I didn't get to yet, but we will later, he talks about how it's going to be a couple of years before we see the benefits of the government's budget. I wonder if he thinks that those benefits have come true. It doesn't look like it by his recent comments.

Three years ago he said we needed to wait and see, and three years have gone by. I don't think he's as happy. Look, I quite like Mr. Carney. I think we would all learn something. It's not very often you have an opportunity to talk to somebody who's been the Governor of the Bank of England, the Governor of the Bank of Canada, the senior associate deputy minister in the Department of Finance, someone who was in the financial sector for 30 years and someone who has obviously thought a lot about public policy, has written a book about it and is now interested in contributing. I give him an immense amount of credit for wanting to think about how he can contribute to the country. I also think it's just reasonable to say, why don't you come in and talk about it?

I'd also say that those of you who are very upset with and hold dearly central bank independence should ask what's been done more to erode the independence of the central bank. There's the fact that in the U.S. the former fed chair is now the Secretary of the Treasury, and in Canada you have a former Governor of the Bank of Canada who wants to run for a political party. He has been at least very open about which political party he belongs to. I would submit that this actually has a lot to do with the eroding independence of the central bank.

By the way, just a couple of weeks ago, the Prime Minister said that interest rates would come down, which I found very surprising. I know my colleague, Mr. Lawrence, will likely have something to say on that later, but there's a news flash. The central bank isn't really that independent.

Anyway, you look at how much communication goes back and forth between the Department of Finance and the central bank on a regular basis. The government picks who leads it. The government at any time can send a letter or instructions to the central bank, in writing, on issues with respect to monetary policy. For example, back in 2013, there was this discussion about quantitative easing, and Jim Flaherty took some criticism for saying that Canada would not do quantitative easing. Guess what. Quantitative easing is the reason why we have inflation today.

There are a number of people now who have been questioning the use of quantitative easing. It was well within the finance minister's comments then, as he was able to write a letter or instructions to the central bank, but those individuals who thought that quantitative easing had no consequences for 10 years are now all basically backpedalling.

By the way, with MMT, modern monetary theory, and the fact that you could just print money with no consequences, those people are very quiet on Twitter these days, because it's created a significant amount of inflation. I think someone like Mr. Carney would have a lot to say about the intersection between monetary policy and fiscal policy. I also would love to ask the current central bank governor how he would feel if a former central bank governor was the Prime Minister. I wonder how those conversations would go.

I think it would be a wonderful opportunity to hear from Mr. Carney. As I said, I hold him in very high regard, and I think we should want the opportunity to hear from someone with a résumé like his and a desire like his to make the country better. I'd like to give him the platform to do that, and that's why I hope that my colleagues will at least agree to the subamendment, or a version of the subamendment, that would see Mr. Carney appear here as a witness as he has previously done before.

Quickly, before I pass the floor to the next speaker, we still haven't dealt with this money laundering motion yet. I see that there are four meetings in the main motion for money laundering. The last review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act was 14 meetings I think. It's inadequate. The government, which claims it's doing so much on money laundering, hasn't even kept its statutory obligation to review the act.

The government has been doing amendments to the money laundering act on a piecemeal basis, claiming that every time they make one little change it is the biggest monumental change. How about actually just completing the systemic review of the act to fulfill our obligation?

They're doing the exact same thing with money laundering that they're doing with competition. Every six months they come out with some new changes to the Competition Act and say that these are the most monumental changes that have ever been seen to the Competition Act. Now they're doing the same thing with money laundering. Are they making progress? Yes. Is it piecemeal? Yes. Is it inadequate? Yes, because they're not looking at the whole system.

I hope we can get through this motion. I also don't support the few meetings. I think we need to have many more meetings on money laundering. I hope that Mr. Carney will come and give us some ideas about how we can organize ourselves and our government better for the purpose of Canadians.

Thank you very much, Mr. Chair.

The House resumed consideration of Bill C-59, 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, as reported (with amendments) from the committee, and of Motion No. 1.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I am pleased to speak on Bill C-59, 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. The bill would advance the government's economic plan to make life more affordable, build more homes faster and build an economy that works for everyone.

To build an economy that works for everyone, the bill delivers critical pieces of our fall economic statement. It would help make life more affordable. We are rolling out new measures to strengthen our economy, combat climate change and forge excellent career opportunities for Canadians, now and in the future.

The Liberals' plan is already yielding results and we continue to push forward. We are advancing Canada's clean economy with a clear timeline for deploying all investment tax credits by 2024. We are launching the Canada growth fund as the primary federal issuer of carbon contracts for difference. We are progressing the indigenous loan guarantee program.

Canada's economic prosperity increasingly depends on a focused strategy to boost growth, particularly in a globally competitive environment. The nation's future success relies on enhancing productivity, innovation and investments in pivotal sectors, such as technology, clean energy and advanced manufacturing. These fields are vital not only for generating high-quality jobs but also for maintaining Canada's competitive edge internationally.

Additionally, empowering small and medium-sized enterprises with supportive policies and tax benefits is crucial to foster entrepreneurship and economic expansion. Equally critical is attracting and retaining top talent. Policies that encourage skilled immigrants to settle in Canada, coupled with significant investments in the education and training of Canadians, are essential to develop a workforce capable of leading in a high-tech, competitive global market.

Canada stands out among G7 countries for maintaining the lowest deficit and net debt-to-GDP ratios, showcasing exceptional fiscal management. This indicates a more sustainable economic position compared to other G7 countries like the U.S., U.K., Germany, France, Italy and Japan, which generally face higher debts and deficits relative to their GDPs.

This fiscal prudence in Canada supports economic stability and investor confidence. Canada's strategic financial policies enable it to better manage economic fluctuations and invest in future growth.

Among G7 nations, Canada's credit rating is ranked near the top. Major credit rating agencies frequently cite Canada’s prudent fiscal policies, low debt-to-GDP ratio and robust institutional framework as key factors supporting its high rating. This strong credit status enhances Canada's ability to attract foreign investment and borrow at lower interest rates, significantly benefiting the economic environment relative to other G7 countries.

On advanced technologies like artificial intelligence, our approach in promoting reflects a robust and proactive strategy aimed at both fostering innovation and ensuring responsible development within the sector. Canada is globally recognized for its influential role in the artificial intelligence sector, distinguished by its significant contribution to AI research and development.

The nation's focus on AI underscores its dedication to technological progress and strategic economic integration. Leading the way in AI innovation are Canadian universities and research centres, which are vital in producing cutting-edge research and attracting international talent. AI's relevance to the Canadian economy is substantial, serving as a key economic engine.

This is supported by major governmental investments, including the $2-billion artificial intelligence compute access fund and the Canadian sovereign compute strategy, aimed at equipping Canada with the infrastructure and resources needed to sustain its competitive advantage in this critical field.

Artificial intelligence technologies in Canada find applications across diverse sectors, such as health care, environmental protection, agriculture, manufacturing and finance, promising to elevate productivity, competitiveness and job quality. For the companies in these sectors to adapt these AI technologies in their operations, we have provided $200 million. By proactively enhancing its AI ecosystem, Canada not only bolsters its global stature but also secures its economic future, positioning AI as a fundamental pillar of its national strategy for long-term growth and innovation.

Canada is strategically established as a significant contributor to the global supply chain for the critical minerals necessary for manufacturing advanced batteries in electric vehicles and energy storage systems. The country's abundant resources of lithium, cobalt, nickel and graphite make it a key player in the clean energy transition.

In response to the growing importance of these minerals for the global economy and environmental sustainability, we are actively expanding our mining and refining capabilities. This enhancement not only meets domestic demands for EV production but also serves international markets, especially those transitioning to greener technologies. We support this sector with favourable policies, substantial investment and collaborations with private companies and international partners. These initiatives aim to create a secure, sustainable and competitive supply chain that utilizes Canada’s natural resources responsibly.

Additionally, we prioritize partnerships with indigenous communities in mineral resource development, promoting inclusive growth and sustainable practices, thereby reinforcing Canada's reputation as a reliable and ethical source of critical minerals internationally. We are also promoting “one project, one environmental impact assessment” to speed up the implementation of projects.

Our strategic focus on economic growth ensures the sustainability of social programs and the continuation of high living standards amid an uncertain global landscape. After a contraction of 0.1% in the third quarter of 2023, Canada's GDP rebounded with 0.2% growth in the fourth quarter. In February, Canada's inflation rate was 2.8%, down from 2.9% in January. It rose slightly to 2.9% in March, roughly in line with the Bank of Canada's forecast.

Statistics Canada reported today that the economy added approximately 90,000 jobs, far exceeding the anticipated 20,000 positions. This marked the most robust month for job creation since January 2023. Nevertheless, the unemployment rate remained constant at 6.1%. These figures indicate that employers are ready and capable of hiring additional staff, despite the economic challenges posed by increased interest rates.

Bank of Canada governor Tiff Macklem has mentioned a possible rate reduction as soon as June. I have been saying for the last 12 months that we will see interest rate reversals starting mid-2024. Recent months have seen quicker-than-expected easing of price pressures, boosting the Bank of Canada’s confidence that inflation is returning to target levels.

The current high interest rates, which aim to curb borrowing and cool inflation by making debt more expensive, may not need to be maintained much longer. We are achieving a soft landing of the economy, though many had predicted we would fall into recession

The House resumed from May 9 consideration of Bill C-59, 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, as reported (with amendments) from the committee, and of Motion No. 1.

Report Stage

[Randeep Sarai, Liberal, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence]

Mr. Speaker, last November, the government introduced Bill C-59, the fall economic statement implementation act of 2023. Among other measures, Bill C-59 proposed significant amendments to our Competition Act. I am proud to share that the Standing Committee on Finance has recently completed its review of the bill and has made several amendments to further strengthen existing proposals.

For many years, Canada's markets have been described as overly concentrated and not competitive enough. In fact, the landmark Competition Bureau study last year, based on Statistics Canada data and analysis from a University of Toronto professor, made critical findings in this respect, showing that competitive intensity has been on the decline over the past two decades, which is reflected in a number of important indicators. These trends have been exacerbated by the inflationary pressures our country is facing following a global pandemic and increasing geopolitical uncertainty.

Bill C-59 was introduced to help build a stronger domestic economy through more competition and contestable markets to bring lower prices, more choice and better product quality for consumers across all sectors. The proposed amendments to the Competition Act in Bill C-59 arose out of a comprehensive public consultation conducted from November 2022 to March 2023.

Having heard from stakeholders, the government introduced Bill C-56, the Affordable Housing and Groceries Act, which was ultimately passed by this Parliament in December 2023.

Completing its response to the consultation, the government then presented a more extensive set of reforms by way of Bill C-59. The measures in this bill include strengthening provisions with respect to merger review, enhancing protections for consumers, workers and the environment, and broadening opportunities for private enforcement.

We should not underestimate just how critical these reforms are for modernizing our laws and promoting competitive markets. The commissioner of competition has stated on multiple occasions that the amendments in Bill C-56 and Bill C-59 are “generational.” I would therefore like to highlight some important reforms that have been proposed.

To begin with, anti-competitive collaborations between competitors would be under increased scrutiny as the bureau would be able to examine and, if necessary, seek penalties against coordinated conduct that lessens competition. Up until now, at worst the participants would be told to stop what they are doing. The expansion of private enforcement and the ability of the Competition Tribunal to issue monetary payment orders in cases initiated by private parties are also significant changes to our existing enforcement approach. By relaxing the requirements to bring a case and providing an incentive to bring matters directly to the Competition Tribunal, there would be greater accountability throughout the marketplace and more action on cases that the Competition Bureau may not be able to take.

More competition is always beneficial to consumers, but the bill also takes some direct approaches to protect consumers. These include strengthening provisions on deceptive marketing, such as applying requirements more broadly so vendors must present the full cost of a product or service up front without holding back mandatory fees, known as “drip pricing.” The law is further being refined to make it easier to ensure that advertised rebates are authentic when compared to a vendor's past prices. Businesses making environmental claims about their products would be required to have undertaken adequate and proper testing before advertising their benefits. Together, these changes would ensure that consumers have accurate and complete information about products and services in order to make informed purchasing decisions.

I would also like to highlight barriers to repair, which have been an issue of great importance in recent years. Where manufacturers refuse to provide the means of diagnosis or repair in a way that harms competition, remedial orders would be available to require them to furnish what is necessary. This could help a wider variety of service providers offer more options to consumers when choosing where to repair their products.

On top of everything I have mentioned so far, anti-reprisal provisions would also ensure that the system can function. These are included to ensure that workers and small businesses are protected from potential retaliation when they work with the authorities to address anti-competitive behaviour and violations of the act by other parties.

These reforms, along with various administrative changes, aimed at facilitating efficient enforcement of the act, are crucial to ensuring that Canadian markets remain competitive and in line with international practices.

It has been acknowledged by all members of the House that our competition framework requires reform. My colleagues have engaged in thoughtful discussion on ways to modernize the existing marketplace framework. Nothing exemplifies this better than the enthusiasm shown by members of all parties to strengthen these provisions of Bill C-59 once it reaches the Standing Committee on Finance, especially in light of recommendations made by the commissioner of competition.

The amendments adopted in committee notably relate to merger review, deceptive marketing, and refusal to repair. The committee members were quite interested in enhancing protections for consumers and the environment, and these are the ones that I would like to draw attention to now.

First, clarifications were made to ensure that in the Competition Act's various provisions on drip pricing, the only amounts that could be excluded from the upfront price are those imposed by law directly on the purchaser of the product, such as sales tax. Next, with the committee's amendment, sellers advertising reduced prices would now be required to be able to prove that regular price is authentic in order to publicize their discounts.

On the topic of doubtful environmental claims, or so-called greenwashing, the law would also require that those who make environmental claims about their businesses or business activities, not only specific products, must have adequate and proper substantiation in hand to support such claims. On refusal to repair, the committee added some helpful clarifications to ensure that the scope of provision was broad enough.

In sum, amidst the period of inflation and growing affordability concerns, it is crucial that our markets remain resilient and open to competition. Bill C-59 would reform Canada's competitive landscape, encourage greater innovation, and improve affordability for Canadians.

Therefore, I would like to urge my colleagues from all sides of the House to work together to expeditiously pass this crucial piece of legislation.

[Ryan Turnbull, Liberal, Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance and to the Minister of Innovation]

Mr. Speaker, every day, Conservatives stand up in the House and cite food bank lineups, as if they care. They are also clear that they are going to vote against the national school food program. One of the other measures that we have taken, of course, in Bill C-59 is competition reform.

I wonder if my colleague could speak to the importance of having more competition.