Bill C-15 (Historical)

Budget Implementation Act, 2016, No. 1.

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures

Part 1 implements certain income tax measures proposed in the March 22, 2016 budget by
(a) eliminating the education tax credit;
(b) eliminating the textbook tax credit;
(c) exempting from taxable income amounts received as rate assistance under the Ontario Electricity Support Program;
(d) maintaining the small business tax rate at 10.‍5% for the 2016 and subsequent taxation years and making consequential adjustments to the dividend gross-up factor and dividend tax credit;
(e) increasing the maximum deduction available under the northern residents deduction;
(f) eliminating the children’s arts tax credit;
(g) eliminating the family tax cut credit;
(h) replacing the Canada child tax benefit and universal child care benefit with the new Canada child benefit;
(i) eliminating the child fitness tax credit;
(j) introducing the school supplies tax credit;
(k) extending, for one year, the mineral exploration tax credit for flow-through share investors;
(l) restoring the labour-sponsored venture capital corporations tax credit for purchases of shares of provincially registered labour-sponsored venture capital corporations for the 2016 and subsequent taxation years; and
(m) introducing changes consequential to the introduction of the new 33% individual tax rate.
Part 1 implements other income tax measures confirmed in the March 22, 2016 budget by
(a) amending the anti-avoidance rules in the Income Tax Act that prevent the conversion of capital gains into tax-deductible intercorporate dividends;
(b) qualifying certain costs associated with undertaking environmental studies and community consultations as Canadian exploration expenses;
(c) ensuring that profits from the insurance of Canadian risks remain taxable in Canada;
(d) ensuring that the dividend rental arrangement rules under the Income Tax Act apply where there is a synthetic equity arrangement;
(e) providing specific tax rules in respect of the commercialization of the Canadian Wheat Board, including a tax deferral for eligible farmers;
(f) permitting registered charities and registered Canadian amateur athletic associations to hold limited partnership interests;
(g) providing an exemption to the withholding tax requirements for payments by qualifying non-resident employers to qualifying non-resident employees;
(h) limiting the circumstances in which the repeated failure to report income penalty will apply;
(i) permitting the sharing of taxpayer information within the Canada Revenue Agency to facilitate the collection of certain non-tax debts; and
(j) permitting the sharing of taxpayer information with the Office of the Chief Actuary.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2016 budget by
(a) adding insulin pens, insulin pen needles and intermittent urinary catheters to the list of GST/HST zero-rated medical and assistive devices;
(b) clarifying that GST/HST generally applies to supplies of purely cosmetic procedures provided by all suppliers, including registered charities;
(c) relieving tax to ensure that when a charity makes a taxable supply of property or services in exchange for a donation and an income tax receipt may be issued for a portion of the donation, only the value of the property or services supplied is subject to GST/HST;
(d) ensuring that interest earned in respect of certain deposits is not included in determining whether a person is considered to be a financial institution for GST/HST purposes; and
(e) clarifying the treatment of imported reinsurance services under the GST/HST imported supply rules for financial institutions.
Part 2 also implements other GST/HST measures confirmed in the March 22, 2016 budget by
(a) adding feminine hygiene products to the list of GST/HST zero-rated products; and
(b) permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.
Part 3 implements certain excise measures proposed in the March 22, 2016 budget by
(a) ensuring that excise tax relief for diesel fuel used as heating oil or to generate electricity is targeted to specific instances; and
(b) enhancing certain security and collection provisions in the Excise Act, 2001.
Part 3 also implements other excise measures confirmed in the March 22, 2016 budget by permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.
Division 1 of Part 4 repeals the Federal Balanced Budget Act.
Division 2 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things,
(a) replace “permanent impairment allowance” with “career impact allowance”;
(b) replace “totally and permanently incapacitated” with “diminished earning capacity”;
(c) increase the percentage in the formula used to calculate the earnings loss benefit;
(d) specify when a disability award becomes payable and clarify the formula used to calculate the amount of a disability award;
(e) increase the amounts of a disability award; and
(f) increase the amount of a death benefit.
In addition, it contains transitional provisions that provide, among other things, that the Minister of Veterans Affairs must pay, to a person who received a disability award or a death benefit under that Act before April 1, 2017, an amount that represents the increase in the amount of the disability award or the death benefit, as the case may be. It also makes consequential amendments to the Children of Deceased Veterans Education Assistance Act, the Pension Act and the Income Tax Act.
Division 3 of Part 4 amends the sunset provisions of certain Acts governing federal financial institutions to extend by two years, namely, from March 29, 2017 to March 29, 2019, the period during which those institutions may carry on business.
Division 4 of Part 4 amends the Bank Act to facilitate the continuance of local cooperative credit societies as federal credit unions by granting the Minister of Finance the authority to provide transitional procedural exemptions, as well as a loan guarantee.
Division 5 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, broaden the Corporation’s powers to temporarily control or own a domestic systemically important bank and to convert certain shares and liabilities of such a bank into common shares.
It also amends the Bank Act to allow the designation of domestic systemically important banks by the Superintendent of Financial Institutions and to require such banks to maintain a minimum capacity to absorb losses.
Lastly, it makes consequential amendments to the Financial Administration Act, the Winding-up and Restructuring Act and the Payment Clearing and Settlement Act.
Division 6 of Part 4 amends the Office of the Superintendent of Financial Institutions Act to change the membership of the committee established under that Act so that the Chairperson of the Canada Deposit Insurance Corporation is replaced by that Corporation’s Chief Executive Officer. It also amends several Acts to replace references to that Chairperson with references to that Chief Executive Officer.
Division 7 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize an additional payment to be made to a territory, in order to take into account the amount of the territorial formula financing payment that would have been paid to that territory for the fiscal year beginning on April 1, 2016, if that amount had been determined using the recalculated amount determined to be the gross expenditure base for that fiscal year.
Division 8 of Part 4 amends the Financial Administration Act to restrict the circumstances in which the Governor in Council may authorize the borrowing of money without legislative approval.
Division 9 of Part 4 amends the Old Age Security Act to increase the single rate of the guaranteed income supplement for the lowest-income pensioners by up to $947 annually and to repeal section 2.‍2 of that Act, which increases the age of eligibility to receive a benefit.
Division 10 of Part 4 amends the Special Import Measures Act to provide that a finding by the President of the Canada Border Services Agency of an insignificant margin of dumping or an insignificant amount of subsidy in respect of goods imported into Canada will no longer result in the termination of a trade remedy investigation prior to the President’s preliminary determination. It also provides that expiry reviews may be initiated from a date that is closer to the expiry date of an anti-dumping or countervailing measure and makes amendments related to that new time period.
Division 11 of Part 4 amends the Pension Benefits Standards Act, 1985 to combine the authorities for bilateral agreements and multilateral agreements into one authority for federal-provincial agreements, and to clarify that federal-provincial agreements may permit the application of provincial legislation with respect to a pension plan.
Division 12 of Part 4 amends the Employment Insurance Act to, among other things,
(a) increase, until July 8, 2017, the maximum number of weeks for which benefits may be paid to certain claimants in certain regions;
(b) eliminate the category of claimants who are new entrants and re-entrants; and
(c) reduce to one week the length of the waiting period during which claimants are not entitled to benefits.
Division 13 of Part 4 amends the Canada Marine Act to allow the Minister of Canadian Heritage to make payments to Canada Place Corporation for certain celebrations.
Division 14 of Part 4 amends the Jobs, Growth and Long-term Prosperity Act to authorize the Minister of Infrastructure, Communities and Intergovernmental Affairs to acquire the shares of PPP Canada Inc. on behalf of Her Majesty in right of Canada. It also sets out that the appropriate Minister, as defined in the Financial Administration Act, holds those shares and authorizes that appropriate Minister to conduct, with the Governor in Council’s approval, certain transactions relating to PPP Canada Inc. Finally, it authorizes PPP Canada Inc. and its wholly-owned subsidiaries to sell, with the Governor in Council’s approval, their assets in certain circumstances.
Division 15 of Part 4 amends the Canada Foundation for Sustainable Development Technology Act to modify the process that leads to the Governor in Council’s appointment of persons to the board of directors of the Canada Foundation for Sustainable Development Technology by eliminating the role of the Minister of Natural Resources and the Minister of the Environment as well as the consultative role of the Minister of Industry from that process. It also amends the Budget Implementation Act, 2007 to provide that a sum may be paid out of the Consolidated Revenue Fund to the Foundation on the requisition of the Minister of Industry and to clarify the maximum amount of that sum.

Second Reading

[John Aldag, Liberal, Cloverdale—Langley City, BC]

Mr. Speaker, in continuing to address Bill C-15, it is not every day that I begin by speaking about feminine hygiene products. However, the redressing of unequal taxation of essential goods is an important issue for all Canadians. Currently, feminine hygiene products are subject to GST and HST as goods that are considered to be non-essential. I think we can all agree that this is a misguided policy, and if not sexist, it at least is based entirely outside the experience of Canadians. I am proud to say that Bill C-15 would rectify this disproportionate taxation of women by removing the GST-HST on feminine hygiene products.

The next measure of budget 2016 that I will address is division 2 at part 4, which amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act. I wish to highlight five key improvements.

First, the bill would replace the permanent impairment allowance with the career impact allowance to better support veterans who have had their career options limited by a service-related illness or injury.

Second, it would increase the percentage in the formula used to calculate the earnings loss benefit. This benefit would provide income replacement of 90% of gross pre-release military salary for injured veterans who are participating in a Veterans Affairs Canada rehabilitation or vocational assistance program for those who have injuries preventing them from suitable and gainful employment. The benefit would also keep up with inflation and not be capped at 2% indexation.

Third, the act would specify when a disability award becomes payable and clarify the formula used to calculate the amount of a disability award.

Fourth, the disability award would be indexed to inflation, in line with other new veterans charter benefits, and higher awards would be paid retroactively to all veterans who have received an award since the introduction of the new veterans charter in 2006.

Fifth, the act would also improve the Last Post Fund to provide financial assistance to the estates of eligible deceased veterans toward the cost of burial and funeral services. The estate exemption for families of low-income veterans would also be increased from roughly $12,000 to $35,000.

Canada's veterans deserve our care, compassion, and respect. The above measures would greatly improve income support to disabled veterans, including both veterans transitioning to the civilian workforce and those with injuries preventing them from suitable and gainful employment.

However, our government's support for veterans does not stop there. Over the next year, in consultation with the veterans community, the government will work to find a way to better streamline and simplify the system of financial support programs currently offered by Veterans Affairs Canada and National Defence for veterans and their families.

In addition to helping young Canadians, middle-class families, and our respected veterans, the government is committed to supporting Canada's seniors.

Single seniors are at nearly three times the risk of living at a lower income than seniors generally, which is why budget 2016 aims to increase the single rate of the guaranteed income supplement for the lowest-income pensioners by up to $947 annually. This enhancement would more than double the current maximum guaranteed income supplement top-up benefit and would represent a 10% increase in the total maximum guaranteed income supplement benefits available to the lowest-income single seniors.

Additionally, budget 2016 will repeal section 2.2 of the Old Age Security Act, which increases the age of eligibility to receive old age security and guaranteed income supplement benefits from 65 to 67. This is a good move.

Budget 2016 also addresses a concern that some of my constituents have brought forward, which is additional support for senior couples living apart. Many times senior couples have to live apart for reasons beyond their control, including long-term health care, which results in higher costs of living and an increased risk of living in poverty. The current system provides recipients with guaranteed income supplement benefits based on their individual incomes. However, budget 2016 would extend this treatment so that couples also receive allowance benefits.

Budget 2016 puts people first and delivers the help that Canadians need now, not a decade from now. It is an essential step to restoring prosperity to the middle class. When we have an economy that works for the middle class, we have a country that works for everyone.

Budget 2016 reflects a new approach for the government, one that offers immediate help to those who need it most and sets the course for growth for all Canadians. With the implementation of budget 2016, the Government of Canada is investing for the years and decades to come. We are investing for our seniors, our veterans, our children, and grandchildren, so that we all may enjoy a more prosperous and hopeful Canada.

The House resumed from May 9 consideration of the motion that Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, be read the second time and referred to a committee, and of the amendment.

Bill C-15—Time Allocation Motion

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, the amount of debate and the speakers on Bill C-15 is either comparable or much higher than debates on budget implementation acts from the previous government. In most cases, those BIAs were close to double the number of pages that are in Bill C-15.

I can say that including today, our government will have provided for almost 19 hours of debate at second reading. If we look at the previous session of Parliament, the previous government shut down second reading debate on two budget bills, Bill C-43 and Bill C-59, in under 10 hours. We have already nearly doubled the amount of time for debate at second reading on Bill C-15.

We are proud of the bill, and we are very much looking forward to putting it forward and getting it passed for Canadians so we can make a real difference in their lives.

[Dominic LeBlanc, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, I know colleagues have been waiting for this moment for some time. I move:

That, in relation to Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill;

and

That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

[Andrew Scheer, Conservative, Regina—Qu'Appelle, SK]

Mr. Speaker, I wonder if you might find unanimous consent for the following motion.

I move that, notwithstanding any standing order, special order, or usual practice of the House, Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures be divided into two bills, namely Bill C-15A and Bill C-15B, as follows:

(1) Bill C-15A shall contain all the provisions of the bill respecting the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things: (a) replace “permanent impairment allowance” with “career impact allowance”; (b) replace “totally and permanently incapacitated” with “diminished earning capacity”; (c) increase the percentage in the formula used to calculate the earnings loss benefit; (d) specify when a disability award becomes payable and clarify the formula used to calculate the amount of a disability award; (e) increase the amounts of a disability award; (f) increase the amount of a death benefit; and all the provisions that provide, among other things, that the Minister of Veterans Affairs must pay to a person who received a disability award or death benefit under that act before April 1, 2017, an amount that represents the increase in the amount for the disability award or the death benefit, as the case may be, and the consequential amendments to the Children of Deceased Veterans Education Assistance Act, the Pension Act, and the Income Tax Act.

(2) Bill C-15B shall contain all the remaining provisions of Bill C-15 and retain the status on the Order Paper that it had prior to the adoption of this order, and that Bill C-15A be deemed read a second time and referred to committee of the whole, deemed considered in committee of the whole, deemed reported without amendment, deemed concurred in at report stage, and deemed read a third time and passed, and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary, and that the bills be reprinted.

I wonder if I could find unanimous consent for that motion, so we can show our veterans that we support them and appreciate the service they have made for our country.

Budget Implementation Act, 2016, No. 1

[John Aldag, Liberal, Cloverdale—Langley City, BC]

Madam Speaker, I rise in the House today in support of Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.

The much-needed budget 2016 is an essential step to growing the middle class and revitalizing the Canadian economy. Budget 2016 has received positive responses from my constituents.

I have received some questions, and I will address these to begin.

The first measure I will be speaking to is the elimination of the children's arts tax credit and child fitness tax credit. These tax credits only benefit families who can afford to enrol their children in arts and fitness programs. It is that simple. This is not the case for many Canadians, including many of those in my constituency. When families do not have money, the tax credit does not matter. We are committed to taking an approach that will help working families. The cost of raising a family was the top issue during the campaign, and it continues to be the top priority in my riding. The bill offers true help to nine out of 10 families.

I will now speak to some of the positive elements of the bill that resonate with my constituents. The Canada child benefit is one of those key positive pieces of the budget. It is a new measure that will begin in July 2016 and will provide simpler, tax-free monthly financial benefits to eligible families. The Canada child benefit will help those who cannot afford to put their children in extracurricular programs. It will give them the option of enrolling the children in programs that would otherwise be financially out of reach. Families who could not enrol their children in arts and fitness programs will now have that chance.

Our government's measures for families with children, combined with the middle-class tax cut, will provide these families with additional net after-tax benefits of approximately $14 billion during the 2015-16 to 2020-21 period. The Canada child benefit will replace existing federal child benefits to provide Canadian families with the additional help that is required with the high cost of raising children. The Canada child benefit will provide a maximum benefit of up to $6,400 per child under the age of six, and up to $5,400 per child aged six through 17, for families who need it the most.

High-income earners will have their assistance reduced, even eliminated. This is good public policy. Approximately nine out of 10 families will receive more under the Canada child benefit than under the current system of child benefits. Ultimately, about 3.5 million families will benefit from this new Canada child benefit, with an average increase of approximately $2,300 annually.

As stated by Rob Carrick of The Globe and Mail, “The new Canada Child Benefit is a solid win over existing programs in both dollar terms and ease of use. The money is tax-free, so it won’t have to be accounted for when completing your income tax return every year.” The is good news.

In addition, the Canada child benefit will help raise nearly 300,000 children out of poverty by 2017. However, it does not end there. Budget 2016 will continue to support poverty reduction in future years. As stated by Anita Khanna, the national coordinator of Campaign 2000, “This is a historic step forward in the battle against child poverty in Canada that is long overdue and long called-for by Campaign 2000 and other groups.”

In line with providing support for the majority of Canadians, budget 2016 proposes to eliminate the income-splitting credit for families. This initiative provides a better solution for helping those who need it the most. We learned during the campaign that many couples did not benefit from this initiative. Our programs are more equitable, and I must note that income splitting for seniors remains.

The second aspect of budget 2016 that I will be speaking to is the introduction of the school supplies tax credit. Educators, often at their own expense, purchase supplies for the benefit of our children, so it is only fair that they are compensated for it. Budget 2016 introduces a 15% refundable income tax credit that will apply on up to $1,000 of eligible supplies. Teachers and early childhood educators will be able to use this credit for the purchase of eligible supplies for use in a school or a regulated child care facility for the purpose of teaching or otherwise enhancing students learning in the classroom or learning environment. This initiative will provide a benefit of about $140 million over a five-year period.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Madam Speaker, never accuse Liberals of not having any sense of irony. I just heard my friend say that the Liberals are proud that they never impose their will just minutes after their House leader stood in his place to shut down debate, not on one bill but on two bills that have been introduced. He suggested that because opposition House leaders could not get along he was going to punish the Conservatives with one of their opposition days and stick it on a Friday, which is a short day. No, the Liberals do not impose their will.

What is more ironic is that when the House leader for the Liberals stood up to do this, the Liberals actually cheered and laughed. They found it funny that they were shutting down debate on Bill C-15 and Bill C-7, which precludes future negotiations with the RCMP allowing RCMP members to talk about things like sexual harassment. That is what the Liberals just did.

With respect to this procedure that we just saw introduced, the member said she was proud to be part of a government that at just this moment invoked a form of closure that will come tomorrow. Is she proud of this? That is exactly what the Liberals campaigned against seven months ago when the Conservatives were doing it.

The House resumed consideration of the motion that Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, be read the second time and referred to a committee, and of the amendment.

Business of the House

[Dominic LeBlanc, Liberal, Leader of the Government in the House of Commons]

Madam Speaker, I would like to inform the House that because we could not arrive at a conclusion to Bill C-15, the supply day designated for tomorrow, Tuesday, May 10, unfortunately has to be redesignated to Friday, May 13.

Bill C-15—Notice of time allocation motion

[Dominic LeBlanc, Liberal, Leader of the Government in the House of Commons]

Madam Speaker, I rise on a point of order.

I know colleagues were impressed with my colleague from Pickering—Uxbridge's speech and will want to make positive comments and ask questions. However, before we get to that I would like to advise that an agreement could not be reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the second reading stage of Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.

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

Budget Implementation Act, 2016, No. 1

[Jennifer O'Connell, Liberal, Pickering—Uxbridge, ON]

Madam Speaker, let me also offer, as my colleagues have, my thoughts and prayers for the residents and community of Fort McMurray, Alberta.

It is an honour to rise in this House today to speak on our government's first budget bill, Bill C-15, on behalf of my community of Pickering Uxbridge.

I am very proud to support budget 2016, because this is a budget that is making investments in Canada and Canadians. The investments outlined in budget 2016 focus on growing the economy and ensuring that we are making decisions that not only help Canadians in the short and medium term, but with a focus on also securing long-term growth for future generations.

After 10 years of working on budgets at the municipal level, I can proudly say that, not only is this a budget for middle class and working Canadians, it is a budget that finally provides support for cities and towns across the country.

Our immediate infrastructure investment of $11.9 billion will build roads, improve waste water facilities, and ensure that municipalities are ready to withstand the new challenges that climate change present. These investments will create tens of thousands of jobs, boost the economy, and send a strong message to municipalities that after a decade of having their issues and priorities ignored, they have a strong partner in this federal government.

Budget 2016 delivers on so many areas that will help our communities and residents. As a community with a high number of young families, the new Canada child benefit will help thousands of my constituents back home, and millions of Canadians across the country, with the high and rising costs of raising a family. The CCB will provide more money, is tax free, and income based. This is important because it means more money for families that really need the help.

Budget 2016 will also invest in social infrastructure projects, which include child care centres that will improve access to high-quality child care spaces for Canadians. In my region, this investment is critical, as we have thousands of residents on waiting lists for child care. Investments in this type of infrastructure is long overdue.

Budget 2016 is also better at weaving rural Canada into our shared economy. Our government is making a $500-million investment to bring in high-speed Internet to rural communities like Uxbridge and north Pickering.

We know that in our ever globalized economy, reliable Internet service is critical to every business, and that includes farming. A broken piece of equipment, like an alternator or a propeller shaft, could shut down production and cause economic losses. However, with reliable, high-speed Internet access, those losses can be minimized, as acquiring that new part could be as easy as one click away.

A stable Internet connection is needed not only for businesses in our rural communities, but it is critical to our everyday lives, from paying bills online to students doing homework assignments, or someone applying for a new job. We often take for granted how much our daily lives rely on the Internet. For rural communities, this lack of a reliable connection can mean missed business opportunities or time away from family.

As a member of the Standing Committee on Finance, we heard testimony last week from representatives of KPMG, as well as Commissioner Treusch of the Canada Revenue Agency, in regard to the Isle of Man tax avoidance scheme. I am proud that budget 2016 is making a historic investment, of over $440 million, to the CRA to combat such tax evasion and avoidance schemes. Testimony last week in committee showed why that investment is so important.

During Mr. Treusch's testimony, while referring to the previous decade under the last government, he stated that “Obviously, we have come through a period of considerable fiscal restraint, but during that period, we redeployed as best we could..”.

This period of considerable restraint is highlighted in a November 16, 2012 press release from the Treasury Board, which said that nearly 3,000 jobs were eliminated under the former government. In the 2013 budget, there was $259 million, over five years, of cuts from the CRA.

I am sure we have all heard the horror stories from constituents who needed some questions answered but had to wait months for a response. It is no wonder that the service levels suffered, with such massive cuts. This also affected the CRA's ability to go after tax avoidance schemes, like the Isle of Man program offered by KPMG.

In October 2010, an internal audit by Canada Revenue Agency expressed concerns that:

Cases that could potentially represent significant criminal non-compliance can be rejected by a specific TSO enforcement group because of limited resources.... ...offices are choosing smaller cases of a lower dollar value that do not necessarily represent the greatest risk.... This supports the observations by some program staff that offices are choosing smaller cases that represent “quick hits”.

I believe these budget pressures from the previous government led to an unfair enforcement system, where Canadians owing money who happened to be wealthy and could afford accountants and lawyers were less likely to be pursued than those Canadians who owed much smaller amounts but were viewed as easy to collect from because they could not hire lawyers or professionals to work on their behalf with CRA. I think we can all agree on both sides of this House that every Canadian needs to pay his or her fair share in taxes, and that the choices CRA makes in enforcing these collections should not be determined by who can pay the litigator. However, the CRA can only operate in a fair manner if it has the tools and resources to do so. This is why I fully support the investment in budget 2016 that would provide these tools and resources to the CRA.

Speaking about this investment, Commissioner Treusch stated:

The new budget gives us an enormous reinvestment that will be a return for the Crown and will...move us forward in addressing the concern that I know Canadians have...

After all, the unpaid taxes that are owed are a loss to all Canadians, as it means lost revenue to invest in things that would strengthen our economy, like infrastructure and transit improvements, as well as innovative health care research.

Budget 2016 would also ensure that seniors are able to retire with financial security. This includes providing increased benefits that would allow more seniors in Pickering and Uxbridge to have a dignified, comfortable, and secure retirement. This budget would follow through on a number of commitments we made to seniors during the last election. We promised to roll back the age at which seniors can access their OAS and GIS from 67 to 65, and we have delivered on that pledge. Our government also recognized the importance of ensuring seniors have access to high-quality affordable housing. That is why we would boost funds for construction, repair, and adaptation of affordable housing for seniors across the country. Canadians work hard their entire lives with the expectation that they will retire in comfort and security. I am proud to say that budget 2016 would make that goal a reality for thousands more seniors.

Although my riding of Pickering—Uxbridge does not have a large indigenous population, the investments in budget 2016 regarding this issue are important to all communities. We are all aware of the living conditions some of our indigenous populations face, and it is outrageous that some communities do not have access to clean drinking water. I am proud that this budget would invest $2.2 billion in clean-water infrastructure to finally end on-reserve boil-water advisories. This is on top of other investments, including $2.6 billion that would boost first nations K-12 education, and $40 million to ensure that an inquiry into missing and murdered indigenous women and children is as comprehensive and thorough as possible.

I recognize that this budget would not fix all the wrongs of the past, but as a parliamentarian and as a Canadian, I am proud that we have a Prime Minister who is deeply committed to ensuring a better future for indigenous peoples and fostering better relationships, nation to nation. To be part of a government focused on bettering the lives of our indigenous populations is extremely meaningful to me. Budget 2016 and, by extension, Bill C-15 would fulfill the commitments we made to Canadians. This is why I am so proud to rise today in this House on behalf of my constituents to lend it my support.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Madam Speaker, I am pleased to rise in this place on behalf of the people of Renfrew—Nipissing—Pembroke to speak to Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016, and other measures.

On behalf of the over 3,000 CNL employees in the upper Ottawa Valley, their families, and the communities they live in, as well as the small businesses that rely upon the economic activity that happens when those employees spend locally, I would like to thank the Minister of Natural Resources for the science-based decision that was made in announcing an $800-million investment over five years in the Canadian nuclear industry, specifically, in the ongoing refurbishment and modernization of the capital assets at the Chalk River location of Canadian Nuclear Laboratories.

While I would like to be hopeful about the construction of a new version of Canada's success story, and I am referring, of course, to the NRU, Canada's nuclear research reactor, the longest successfully operating research reactor in the world, I understand that with this $800-million announcement Canadians will see more infrastructure construction like the $60-million hydrogen lab our Conservative government built.

What was most encouraging when I read the Minister of Natural Resources's comments with the $800-million announcement was the support for all the work our Conservative government did in building a new business model for the nuclear industry in Canada.

Canadians can see the $800 million being invested over five years as an expression of confidence in the future of the nuclear industry in Canada. I am referring to the government-owned privately managed GOCO model that has currently been in place since September 2015 at Chalk River Laboratories' site at Chalk River.

When our government first came to power, there were two immediate challenges that directly affected the constituents of Renfrew—Nipissing—Pembroke: the decade of darkness of underfunding our military, which we witnessed every day at Garrison Petawawa, and the neglect of Canada's research assets at our world-class nuclear research facility in Chalk River.

I am appreciative of the employees at Chalk River who responded positively to my call to create a grassroots bottom-up effort to provide a new vision for Canada's nuclear industry. The CREATE committee issued a report that I had the privilege of personally presenting to guide our deliberations to support the 50,000 workers in Ontario who work in Canada's nuclear industry.

As thoughtful Canadians who are informed about the environment understand, nuclear plays an important role in reducing greenhouse gas emissions as being a reliable economic way to generate electricity without producing greenhouse gas emissions. Today, nuclear accounts for 62% of the electricity generated in the province of Ontario. Nuclear is the only bright spot in an another otherwise failing and corrupt Ontario energy policy.

The fear among many of my constituents was that with a Liberal budget Canada's nuclear industry would return to the decade of darkness they experienced under Paul Martin. AECL operated for years without a budget from the government.

It is publicly known that a number of the political refugees from the corrupt government of Kathleen Wynne in Toronto have fled to hide in government offices in Ottawa. These include environmental extremists like the Prime Minister's principal secretary, who played the same role for Dalton McGuinty to earn the nickname of Rasputin from the Ottawa press as an author of the Green Energy Act. Their left-wing, ideological policy has gutted the manufacturing sector in Ontario with the highest electricity prices in North America. The carbon tax on electricity is called a delivery charge on hydro customers' bill statements in Ontario.

Environmental extremists like the principal secretary choose to deny science-based facts about clean, greenhouse-gas free nuclear-generated electricity. The European experience has shown massive job losses for every so-called green job with no tangible benefit to the environment. Still the Liberals push their extreme left-wing agenda on unsuspecting Canadians.

What was surprising about the April 11, 2016, $800-million announcement was that it was not in the federal budget. There was silence from the Minister of Finance on budget day. It was not in the main estimates. Canadians learned about the $800 million in a planted question by a government member, which was asked in a parliamentary committee. What is that all about?

Canadians can only assume that the $800 million over five years is accounted for in the government infrastructure line of public spending. I was told it was an accounting trick, sort of like when one cuts $3.7 billion in military capital spending and pretends it is not a cut. The fact is that Canadians do not know.

This goes back to the problem of transparency, which has become a real and growing problem with the government. According to the former non-partisan parliamentary budget officer Kevin Page, the budget is heavy on spending programs for government consumption and lacking in details, including when the federal budget would return to balance, which is how the Conservative government left the nation's finances. “It could be better in transparency. It’s kind of a budget without a fiscal plan”, according to Page. “I think there’s going to be pressure to raise taxes with this kind of spending in the budget”, he said.

The budget office went on to observe this was the least transparent budget, certainly when compared to Conservative budgets or even the previous Paul Martin budgets. As an example of that lack of transparency, the bank recapitalization bail-in scheme being proposed on page 223 of the federal budget should have seniors worried. It would allow the government to convert a bank's eligible long-term debt into common shares in order to recapitalize the bank. In addition to being concerned about bank deposits, any retirement savings that included bank shares would be exposed also.

Canadian chartered banks would be expected to lend some of the money required to cover the projected $30-billion annual deficits announced in the March 22 federal budget. In addition to financing the federal spending spree, Canada's banks are holding billions of dollars of debts from the oil sands. The depressed price of oil has already caused tens of thousands of jobs to be lost. Internationally, there are at least five countries teetering on insolvency due to low oil prices.

There is a lack of confidence that started the day after the federal election. According to Statistics Canada, since the 2015 federal election, billions of dollars have been transferred out of the country by Canadian investors, the largest recorded flight of capital since records began to be kept. Maybe we will find some of that money in Panama or on one of the Caribbean islands so favoured by the Liberal inner circle. It would appear well-connected insiders got all their cash out in time.

Canada, in contrast with other countries that have seen central banks become net buyers of gold since 2010, has sold off all its official gold holdings. The Bank of Canada, on February 23, 2016, showed gold reserves at zero. Canada now stands as the only G7 nation that does not hold at least 100 tonnes of gold in its official reserves. Out of 188 member countries of the International Monetary Fund, 100 countries hold gold as part of their monetary assets. Canada is now among the 88 countries that have no gold, countries such as Angola, Belize, and Tonga.

As the member of Parliament for Garrison Petawawa, I share the pride we all feel when we see our soldiers in action. Our women and men in uniform put their lives on the line every day for us. We need to ensure that members of the Canadian Armed Forces have the tools, training, and equipment they need whenever we require them to go into harm's way. It is therefore very disturbing to see the Liberal government reallocating, postponing, or cutting $3.7 billion over the next five years for necessary equipment procurement.

Canadians remember what happened the last time a Liberal government interfered in equipment acquisition processes. In Afghanistan, the casualties would have been lower had the EH-101 contract not been cancelled. We do not know what tomorrow will bring. It is a dangerous world. We need to be prepared. Large-scale purchases are not a simple process. We need to ensure funding is available, not taken away. Is Canada preparing for financial disaster? Are savings protected? Those are the questions being asked of this first budget since the last federal election.

Not since the disastrous budget of former finance minister Allan J. MacEachen, when five-year mortgage rates spiked to over 21%, have Canadians been more apprehensive about their own personal financial security. It has to be a Canadian record for breaking campaign promises. The first budget deficit is not $10 billion each of the first three years of the mandate, as promised; it has jumped to $30 billion each of the first three years, with no plan to get out of debt.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, before I get started, I want to acknowledge my mother since it was Mother's Day yesterday and I was not able to join her. I also want to acknowledge all the mothers in Fort McMurray and Alberta who could not be with their families yesterday. We need to honour them.

As the NDP spokesperson for small business and tourism, it gives me great pleasure to bring our voice and concerns about Bill C-15. Primarily, I will focus on the Liberal promise to reduce taxes for small business from 11% to 9%, and to help those who are not in the middle class to join the middle class.

Before I talk about the tax for small business, I want to touch a little on incorporate taxes in Canada, and the history of that.

Consecutive Liberal and Conservative governments have been reducing taxes over the last few decades. We have seen corporate taxes go from 28% in the late 1990s and 2000s to 15% today, which is a significant tax decrease. During that time, it has shifted the tax burden to the people. It is a reckless way to promote a healthy economy, and it is a failed experiment. It failed in Japan and Hong Kong, and it has resulted in what I believe is an unfairness in delivering taxes.

The result has created huge inequality in our society. The gulf between the wealthy and the majority is growing faster and more widely in Canada than in any other developed nation. The richest 100 Canadians now hold as much wealth as the bottom 10 million combined. However, when we look at small business taxes in comparison, they have remained at about 11% since the 1980s. While Canada's largest corporations have had record profits, they have a lot of dead money. We talk about dead money that is leaving our communities, sitting, and not circulating in our economy.

Recently, over the last few days, while we have been debating the bill, and on Friday notably, there was a lot of Liberal rhetoric about small business. The Liberals painted small business as tax cheats. They talked about small business as being bad fiscal money managers. However, these are the volunteers in our community. These are the people who donate to our local charities. They are the people who serve on our boards. They are the cultural innovators of our communities in Canada. Therefore, it is really disappointing to hear this rhetoric from a government that went across Canada and promised a small business tax break from 11% to 9%.

This proposal was put forward by the NDP in the last parliament, which the Conservatives supported and on which the Liberals ran. All parties ran on a platform to help small business, and this is a group of individual businesses and a business community that are the job creators in our country. They are the economic drivers of our country, and the government has failed them. Promises have be made for decades and we have constantly failed them. As a result, there is a lot of mistrust with small business.

This is a very important time. This is an opportunity for Ottawa to create trust with small business, to create that intimate relationship with it. Small business people are at the front line of our communities. They know when the economy is changing quicker than any other business group in our community.

I will link back to my experience as a previous executive director of a very successful chamber of commerce and as a business owner. I remember in 2008 when the greatest economic downturn since the 1930s happened in our country. There was a huge bailout for Canada's largest corporations, but small business people were left behind. They were left with no bailout and no help from the federal government. They felt betrayed. The distrust with Ottawa was apparent.

I was picked up by a taxi driver the other day and he brought up his story about how he had a car dealership. As he ran his business, he watched all these corporations being bailed out while he struggled to make ends meet. Finally, just a year ago, he lost his business as a result of the recession. He was hanging in there, trying to get behind the big mess that was created, and the government did nothing to help him. He felt no one in Ottawa, in the House, was standing up for him. We had failed to deliver promises to small business, and we are doing it again.

The cost of not delivering this tax break to small business, as we know from the parliamentary budget officer's report, is $2.2 billion over the next four years. On average, that is approximately $3,529 per small business. People were counting on this. I talked a little earlier about how 78% of all new jobs were created by small business. Medium-size businesses create 12.5% of all new jobs, while big business creates less than 10%.

When we talk about their role in economic development, small business plays a key role. We really need to start talking about what kind of economy we want. We want local ownership, we want local jobs, and we want to keep money in our communities.

There's an organization in British Columbia called LOCO BC. It does some great work. It has talked about money recirculating in the communities. It did some research and found that if $100 was spent at a business in the local community, $46 would be recycled in the community versus $18 at a multinational corporation.

We talk about economic development and doing it differently. If we invest the $2.2 billion that were promised for small business, that money will circulate 2.6 times, rather than what is spent on giving tax breaks to multinational corporations. This is an opportunity.

Instead the government has chosen to do the reverse. It told small business that it would get a tax break, then failed to deliver on that promise. This, instead of plugging the economic leakage in every riding across the country, and really keeping money in our communities.

Many small business owners were counting on that tax break. They were relying on it to buy new equipment so they could grow, maybe even give someone a raise in their. This is an opportunity right now for us to build trust with small business people, show them that Ottawa is listening, and start tackling inequality.

We keep hearing about the middle class, helping to grow the middle class, helping those who are not in the middle class to join the middle class. We saw in Bill C-2 that anyone earning less than $45,000 would get nothing. We know that a lot of small business people do not earn $45,000 a year. While we talk about helping those to join the middle class, it is not being delivered by the Liberal government.

I read a quote from the Canadian Federation of Independent Business, from the vice-president for B.C. and Alberta. He calls the budget about as close as it can come to a betrayal as is humanly possible. He said that the Canadian Federation of Independent Business was hoping and expecting to see the tax cut, and the fact that the government had put it on hold was extremely disappointing.

This is, again, a tax break that was promised, door to door, city to city, community by community across the country. The government is failing to deliver on this promise, but it is clear that it is doing what Liberal Parties have done in the past. It is about big business and about protecting CEO stock options instead of taking care of the people who have built our communities.

Are the government members in the House willing to go home and ask their small business owners if they are okay that the government is not going to deliver the tax cut promised, 11% to 9%? I would like them to ask them how they feel about that broken promise.

In survey after survey, the number one thing small businesses have asked for is fairness in tax breaks, so they can get the same fairness that big corporations have been getting for decades.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I recall some of the speeches that our colleague Jack Harris used to make in this place about employment insurance, which was an issue of grave concern to many in Newfoundland and right across the country.

One of the fundamental flaws with the way the program had been tweaked, ripped off, or stolen from over the years was that the federal government could raid the fund anytime it wanted, and previous governments did, to the tune of more than $50 billion. The federal government took money that one could easily argue never belonged to it in the first place. The EI fund is paid into by workers, with employers contributing as well. It is insurance for individuals who lose their jobs. There are some proposed changes to employment insurance in Bill C-15 but not that fundamental change, not that change that says that the fund can no longer be ripped off by a federal government. The government is always dipping its hand into the EI jar and taking but rarely ever giving, and this is a constant concern for the seasonal fishery on the west coast and other groups.

Would my colleague advocate for such a change to prevent that from happening ever again in the future? Why is it not in Bill C-15?

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, I am delighted to stand and support this fiscal plan that would strengthen the middle class, help the most vulnerable seniors, and build stronger communities to meet their future demands and opportunities.

I want to speak for a moment about my riding and my home province of Newfoundland and Labrador. I want to thank my family, friends, and supporters who gave me this wonderful opportunity to represent them in this prestigious House and in the great riding of Avalon. I am thankful and remain humble to represent the residents in the riding of Avalon. I am so lucky to represent very diverse communities in my riding, which have diverse and unique backgrounds and economies. I am proud to represent my home town of Conception Bay South, the largest town in the province, and the town of Paradise, the fastest growing community in Atlantic Canada.

I also have the pleasure to represent smaller rural communities that have populations of less than 100, like Patrick's Cove, St. Shotts, and Aquaforte, and larger rural communities like Bay Roberts, Harbour Grace, and Carbonear. Many of these communities depend on the fishing industry, tourism, and small and medium-sized businesses.

I also have the relatively new Vale Long Harbour processing plant, which began operations in 2014 and employs about 475 people at peak production. The plant and the Voisey's Bay mine and concentrator are an integrated operation. Nickel concentrate from Voisey's Bay will be shipped to Long Harbour to be processed into finished nickel and associated copper and cobalt products.

Just recently, I distributed a Newfoundland and Labrador tourism guide to all members of the House, and the amount of feedback from my colleagues has been remarkable; some looking for an extra copy for friends, and others expressing an interest to visit soon. We are proud of our heritage, proud of our people, and proud of our tourism showcase.

As a result of the well-known decrease in the oil and gas markets, Newfoundland and Labrador is in the middle of significant financial challenges, and no doubt residents will be negatively impacted. We can argue that it is from years of mismanagement and overspending, or that the current fiscal restraints go too far for low-income families. No matter what, the situation is unprecedented and all my federal colleagues from the province are attentive to the immediate needs. I want to especially thank the regional minister for her help and ongoing co-operation on this very important matter.

As a former municipal mayor, I understand the importance of and need for community infrastructure, improved and new infrastructure that is affordable to communities. That is why I am delighted that this government's infrastructure plan proposes to provide $11.9 billion over five years starting right away. Budget 2016 would put this plan into action with an immediate down payment for the plan, including $3.4 billion over three years to upgrade and improve public transit systems across Canada; $5 billion over five years for investments in water, waste water, and green infrastructure projects across Canada; and $3.4 billion over five years for social infrastructure including affordable housing, early learning and child care, cultural and recreational infrastructure, and community health care facilities.

This government is also taking action to ensure that Canadians benefit from the better services that modern, efficient, and sustainable federal infrastructure can provide. Budget 2016 proposes to provide $3.4 billion over the next five years on a cash basis to maintain and upgrade federal infrastructure assets in ridings like mine, including such things as national parks and small-craft harbours.

In addition to the new funding announced in budget 2016, the government would support the infrastructure priorities of communities across Canada. The government would continue to make available approximately $3 billion each year in dedicated funding for municipal infrastructure projects through the gas tax fund and the incremental goods and services tax rebate for municipalities.

As a former mayor, I know how important it is for our government to work with provincial, territorial, and municipal partners. We are committed to get projects under way by accelerating spending from the $9 billion available under the new building Canada fund's provincial-territorial infrastructure component.

I am very happy to say that we are working co-operatively with Newfoundland and Labrador to ensure it is able to maximize its infrastructure investments. The Minister of Infrastructure and Communities has listened and has taken action. We are pleased with the improvements to the 2014 new building Canada fund, which provide provinces and territories greater flexibility to commit all remain funding within the next two years.

The minister heard from municipal leaders about concerns with how the previous government designed the new building Canada fund. He listened and is now committed to ensuring the programs work for Canadians and has made important changes.

Under the provincial-territorial infrastructure component, we have modified the highways and roads category to eliminate the small communities fund minimum traffic volume thresholds in order to reflect varying needs in provinces and communities across Canada.

In addition, we have added five new categories: tourism, culture, recreation, passenger ferry services infrastructure, and civic assets and municipal buildings. Budget 2016 also announced funding for local governments to support stronger stewardship through asset management planning activities and climate change resilience investments.

The following two programs would be managed by the Federation of Canadian Municipalities to provide funding for capacity-building directly to municipalities: $50 million to increase municipal capacity for asset management, including funding to develop and implement infrastructure asset management planning practices and support more reliable and comprehensive data collection on infrastructure assets; and $75 million to support enhanced municipal planning for climate change resilience, including funding to support municipal projects to identify and implement greenhouse gas reduction opportunities, assess local climate risks, and integrate climate change impacts into asset management planning practices.

I am very proud of our investment in community infrastructure, but I am equally proud of our investment in improving the well-being of the middle class. As we have always known, a strong economy starts with a strong middle class. Our constituents understand this, and I am so pleased this government does as well. That is why building an economy that works for middle-class Canadians and their families continues to be the government's top priority.

I am delighted with our investment in the Canada child benefit. This is a new benefit that would be paid monthly to eligible families. This initiative would see nine out of 10 families receiving more under the Canada child benefit than under the current system of child benefits.

Overall, about 3.5 million families would be receiving the Canada child benefit. These families would have more money to help with the high cost of raising their children, by replacing the current complicated system. The Canada child benefit would be simpler, tax-free, better targeted to those who need it most, and much more generous. This tremendous initiative would see 300,000 fewer children living in poverty compared with 2014-15 numbers. Most importantly, the Canada child benefit would continue to support poverty reduction in future years.

Six months ago, our government was elected by Canadians to bring change for our youth, the middle class, and vulnerable seniors. Canadians want a change in openness and accountability, and they want a government that will listen and care. I am pleased that Bill C-15 contains key initiatives and benefits that further our commitment to Canadians, commitments that would further grow the middle class and help strengthen our economy.

It has been my pleasure to speak on Bill C-15 and stand in support of all the positive initiatives that it contains today.