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.

Budget Implementation Act, 2016, No. 1

[Alice Wong, Conservative, Richmond Centre, BC]

Mr. Speaker, first, on behalf of my constituents in Richmond Centre, I wish to send our thoughts and prayers to those affected by the wildfires in Fort McMurray and the surrounding area. We are grateful to the firefighters and first responders who are tirelessly working together to control the fire and ensure the safety of those involved. The residents of Richmond Centre stand behind them.

Today, I rise to discuss Bill C-15, the budget implementation act. I wish to articulate my concerns with the bill. There are many troubling aspects of the bill, but I will be focusing on two primary ones. First, I will discuss the small business and employment provisions and changes outlined in the budget. Second, I will comment on the changes to small business hiring. Both of these areas are of great importance to me and my riding of Richmond Centre.

This being my eighth year serving as an MP, I have had the opportunity to work alongside our previous Conservative government and witness strong fiscal responsibility. Not only were we able to leave a surplus at the end of our term, but the debt-to-GDP ratio was lower than it had been when we took office. In addition, during the economic downturn and global recession, our Conservative government created 1.2 million net new jobs. However, such success is quickly being squandered by the new Liberal government.

Before my work in politics, I spent many years as a small business owner. I have experienced first-hand the hard work and dedication required of individuals to operate a small business.

Over 10 years ago, I worked with other business leaders to develop the Women's Enterprise Society of British Columbia, which has been supporting women entrepreneurs. I also founded the Ethno Business Council to encourage and engage business from various cultural groups.

Over the years, I have been hearing the same message: small and medium-sized businesses need lower taxes and support from the government.

Since small business is close to my heart, members can understand why the budget is so concerning for me. The Liberal government has decided to break its promise to continue the outlined small business tax cuts. This broken promise will cost the small business sector $2.2 billion over the next four years. What this broken promise demonstrates is that the Liberal government believes our small business owners should be the ones to pay for its deficits, which is simply unacceptable.

Under this new budget and the proposed tax increases, the top tax bracket for over half of our provinces will be more than 50% of an individual's income. It is tax increases like this which will be punishing some of the most productive workers in our society.

What is worse is that the Liberals are accusing small business owners of manipulating the system to avoid paying higher taxes. This could not be further from the truth.

Two-thirds of small and medium-sized businesses fall directly into the middle class. In fact, there are nearly four times as many owners earning less than $40,000 than those earning more than $250,000.

By eliminating the proposed tax cuts, the Liberals are directly targeting our middle class and making its financial situation more difficult.

Over the past few months, I have met with numerous organizations and individuals who represent small business owners from across the nation. Every time I hear the same concern, that small business owners are being neglected by the government. The Liberals' abandoned promise of lowering the small business tax rate is affecting all small businesses. What is more, the government is increasing red tape and making it more difficult for owners to qualify for the small business tax rate. They claim these changes are to close loopholes, but in fact, the changes are affecting all kinds of small businesses, even though their revenues are well below the $500,000 cap.

Dan Kelly, president of the Canadian Federation of Independent Business, summed up the budget well. I will quote from a news release:

“Small business owners across the country are deeply troubled by the ballooning deficit. What was proposed to Canadians as a short-term $10 billion deficit plan to invest in critical infrastructure is now $29 billion with no plan to get back to balance,” Kelly said. Most of the deficit is to cover a massive 7.6 per cent increase in program spending, which will do next to nothing to grow the economy. “Small business owners know that today’s deficits are tomorrow’s taxes,” added Kelly.

The budget and Bill C-15 have one clear loser, and that is our small businesses. As a result, I will be supporting the motion put forward by our colleague from Nepean—Carleton to strike clause 34 from Bill C-15 altogether. I encourage all members of the House to support the motion as well.

Nowhere in Bill C-15 do we see a commitment to renew the small business job credit next year. In fact, what we see instead is another broken promise to reduce employment insurance rates to $1.52. The new El spending would put pressure on the premiums paid by both employers and employees and would cost $2.4 billion over two years. We should be working to ease the premiums and hiring costs placed on employers rather than making it more difficult for them to hire workers. Once again, our small businesses are bearing the worst of all the Liberal government's irresponsible spending.

In conclusion, one thing is clear throughout budget 2016: the Liberals have demonstrated their utter disregard for responsible fiscal management and they have no plan to repay their extreme deficits. They have chosen to turn their backs on the job creators, our small businesses. The Liberals do not understand that borrowed money needs to be paid back, and instead of taking that responsibility upon themselves, they are placing it on our children and grandchildren.

[Peter Fragiskatos, Liberal, London North Centre, ON]

Mr. Speaker, it is with a great deal of sadness that I rise in the House today. I speak for the people of London, Ontario, when I tell the people of Fort McMurray that we are thinking of them and that our prayers are with them. We in London and Canadians across the country are also thinking of any members opposite, specifically those members who represent Alberta ridings, who have friends and families who might be impacted.

Today I am pleased to rise in support of Bill C-15. Simply put, budget 2016 is a significant step in the right direction.

During the election our party promised to grow the middle class by working hard to deliver much-needed help immediately, instead of several years down the road. Canadians asked for assistance now in order to make life a bit easier, and that is exactly what the budget is delivering.

Different plans were put forward by the other parties during the past election campaign, plans that would have seen balanced budgets at all costs. These plans would have resulted in cuts instead of investments, stagnation instead of growth. Ultimately the proposals of the other parties would have left the middle class and those working hard to join the middle class struggling.

The results of October's election showed the idea of balanced budgets at all costs was clearly not supported by Canadians. Instead, Canadians voted for investment, growth, revitalization of the Canadian economy, and help for today instead of tomorrow.

Since being elected this past October, the government has implemented a great deal of positive change that will make the lives of everyday Canadians that much better. However, the program introduced in budget 2016 that I am most proud of is the Canada child benefit.

In my community of London North Centre, numerous constituents have told me that it is becoming harder to make ends meet. With prices increasing on a wide variety of everyday items and wages not keeping up, it is now more difficult to afford the extras in life. Whether it is sending their children to camp, affording a new pair of shoes for their son or daughter, or enrolling their children in organized sports, there is simply not enough money left at the end of the month to make these important purchases. The Canada child benefit would work to rectify this problem.

The benefit is an exciting change for several reasons. First, families who are eligible would receive a maximum annual benefit of up to $6,400 per child under the age of six and up to $5,400 per child aged six through seventeen. Payments moreover will happen monthly and start this July. Families who are eligible for this new program will see an average increase to their current child benefits of almost $2,300 per year.

The Canada child benefit would ensure that nine out of 10 families would receive more money in their pockets than under the current system. This innovative and forward-thinking benefit would assist approximately 3.5 million families. Moreover, the benefit, and I emphasize this, would not be taxable.

Most importantly, the Canada child benefit would ensure that in 2016-17 approximately 300,000 fewer children would be living in poverty compared to 2014-15. In the London and surrounding area that would equate to approximately 9,000 fewer children living in poverty. These numbers will only continue to decline in the years to come thanks to benefits like this.

The path to a strong economy is to have a robust and vibrant middle class. By introducing the innovative, bold, and desperately needed Canada child benefit, the government will ensure that the middle class and those families working hard to join the middle class would have more money in their pockets. With that extra money these Canadians would have the opportunity to save, invest, and grow the economy. Canadians would be able to look forward to a better standard of living, one that will allow their children more opportunities for success. As previously stated, I am extremely excited about this benefit. My constituents have told me this will make an immediate difference in their lives, and I am here to fight for those constituents each and every day.

Another area identified in the budget that would have a significant impact on my community of London North Centre is support for seniors. The government has committed to increasing the guaranteed income supplement top-up by up to $947 per year. This change would help 900,000 of the most vulnerable seniors. Four in five seniors in Canada live on low incomes and live alone.

The government will also help seniors by repealing section 2.2 of the Old Age Security Act, which increases the age of eligibility to receive this benefit.

We are also leaving in place pension income splitting. There has been much confusion surrounding this topic in my community. However, the government is committed to helping seniors with their finances. We know that they have worked hard their entire lives, and the government has a responsibility to ensure that they are not placed into a vulnerable financial situation. We are therefore aiming to ensure that during their retirement years Canadian seniors are given the sense of security, dignity, and comfort they deserve.

I am proud to have a strong contingent of Canadian veterans in London North Centre. Since being elected this past October, I have met with many of them at various events throughout the city and at meetings in my office. The amount of respect I have for their courage, patriotism, and sacrifice cannot be properly expressed in words. The freedom we enjoy today to have debates such as this in the House of Commons is because of the incredible sacrifices made by our veterans. As such, the government has a sacred obligation to ensure that these individuals have access to the programs and services they require. We owe them our sincere gratitude and respect. We must work to ensure that there is a relationship built on trust and collaboration.

With that in mind, the government will make changes to the Canadian Forces Members and Veterans Re-establishment and Compensation Act. These changes have been initiated due to concerns expressed by the government, the veterans ombudsman, Canadian Armed Forces members, veterans, and other stakeholders. It has been indicated that veterans who have been seriously disabled are not guaranteed financial security with the benefits currently in place. Therefore, those Canadian Armed Forces members and veterans who have severe and permanent service-related disabilities will see an increase to their benefits. This is a change that I think we can all be proud of in the House and beyond.

Before being elected to represent the community of London North Centre, I taught at King's University College at Western University. During that time, I watched the number of students who were struggling to make ends meet rise each year. I instructed students who were extremely intelligent, compassionate, and driven young people. However, they were graduating university with a crushing amount of student debt. These students worried about how they would pay back the money they owed, and it was becoming increasingly difficult to find meaningful work. This type of stress and burden is not what we want for our younger generation who have just finished post-secondary education and are looking to make important contributions to the workforce.

With that in mind, I am pleased that budget 2016 will help students from low and middle-income families by making post-secondary education more affordable. In addition, the government will establish a system that makes it fairer and easier for students to repay their debt. I am pleased to see that students will not have to make any repayment on their Canada student loans until they are making at least $25,000 per year.

However, the help for students will not stop there. This budget has also made investments to ensure that young Canadians can earn extra income, gain experience, and find quality jobs upon graduation. These changes have been lobbied for by Canadian student advocate groups for many years. I have met with these student advocates, and I am glad to see these changes coming to fruition within this budget. Help with student debt, providing access to funds to help with the rising costs of post-secondary education, and providing more opportunities for employment while in school and following graduation are measures we can all be proud of. The budget addresses these requests.

Finally, I have received a great deal of correspondence in my office asking that necessary steps be taken by the government to ensure more tax fairness in Canada. Constituents have told me that they are more than willing to pay their taxes and follow the rules. However, they want to ensure that all Canadians pay their fair share. They currently feel as though there are two different sets of rules in place.

With that in mind, it is exciting to see budget 2016 taking significant steps to ensure tax integrity and tax fairness for all Canadians.

I look forward to the debate on the budget to follow.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, the Liberal government campaigned on a promise to help the middle class, and now speaks about helping the group that is hoping to be part of the middle class.

In my riding of North Island—Powell River, there are a lot of challenges in this new economy, which is without as much resource development as we have seen historically. Everyone agrees that the Liberals' so-called middle-class tax cut will benefit people earning more than $200,000 a year the most. There are six out of ten Canadians who will get nothing from this plan.

Bill C-15 will not offer anything to help those who need it the most, like the people in my riding who are working hard every day.

Can the member explain how the Liberals can defend these policies?

[Kennedy Stewart, NDP, Burnaby South, BC]

Mr. Speaker, I rise today to speak about the budget implementation act.

Before I do so, I would really like to express my sympathies to the people of Alberta who are going through a terrible natural tragedy with the fire at Fort McMurray. I would also like to express my thanks to the Government of Alberta and our government here, which are extending help, as well as Canadians who are pitching in in ways we have never seen before to help people who have been dislocated and affected by this fire. Again, thanks to all involved and may it end quickly.

I stand today to speak about the Bill C-15, the budget implementation act. I would like to focus on my role here in the House, assigned by my caucus, which is to look after the issues of science.

There is not a lot of science in the bill, I must say. Bill C-15 clarifies funding and appointment processes for the Foundation for Sustainable Development Technology. There is some reference to science, and of course there is some funding and measures in the main budget when it comes to science, but there remains a big gap to fill when it comes to science in the act.

Although this is an omnibus bill and it does have many measures, I think that if the government is going to make a bill this size, perhaps it should have included a few more measures about science. In fact, I have to say that science is not even mentioned once in Bill C-15, which is surprising to me, since it is a 179-page omnibus bill, amending over 30 separate statutes and referring to nine different ministries.

Again, the government claims that science is front and centre in its agenda, yet it has not really said much about it in this implementation act, where one would think we would see it.

There are some positive things that the government has been doing in regard to science. I would like to touch on those before I move to things that I think it should do.

First, the government has shown some positive inclinations in terms of science so far in its mandate. There has been a substantive reinvestment in science-based departments. We see that in the budget, although, again, there is no mention specifically of how this money should be used in the implementation act.

Important stakeholders, like the Professional Institute of the Public Service of Canada, have said that many years of intense cuts under the previous government were so far-reaching that even more investment is needed to fully restore and position Canada as a global leader in science and research.

I did send a letter to the minister in charge of this file requesting that more funding be included in the budget for science. There was some extra funding included, but I do think that a lot more is needed when it comes to moving us ahead as a global leader, especially for the tri-councils, SSHRC, NSERC, and CIHR.

In fact, when we look at our investment in research and development, which is a good indicator of how a country is doing, our competitor countries, like the United States and most European countries, set a target of 3% of GDP to be invested in research and development. Here, our investment in R and D is around 1.5%, which is really pitiful, and dropping.

In the past, in the 1990s, we used to spend 2% of GDP on research and development, but now it has dropped to 1.5%. The government has not set a target in regard to GERD investment, which I think would have been a good idea. For example, it could have taken place in the bill, where at least we would have had a discussion of targets for investment in research and development.

Let us talk about the National Research Council. Again, there is a lot of speculation about what is happening with the National Research Council in Canada, one of our most well-known scientific institutions. It is a $1-billion institution. We have had recent news in the media about the National Research Council, but again, nothing in the bill.

If the government is going to put forward an omnibus bill and it is going to pretend to be a champion for science, then this would have been a very good place to put this.

After being nearly dismantled by the Conservatives, I am disheartened to see that chaos still continues at the NRC. Even in this large bill, there is no pathway forward for this major institution. I am disappointed that this is not included in the bill.

The National Research Council president is on leave with no explanation, and morale continues to be low. I have talked to scientists who are either within the NRC or have left recently. They say that there has been a lot of confusion in the National Research Council and this is not going to help at all. Again, what I was hoping to see in the budget implementation act was more specific measures when it came to the National Research Council, but there is nothing at all.

What worries me is that we are now past six months into the Liberal government's mandate. We were promised 100 days of action when a lot of things would happen, but there really has been no mention of our most important scientific institution in Canada, which is the National Research Council. We owe our scientists much more than that and if we are going to send a positive signal to the world, the government has to show them that science is foremost in its mind, but again, there is nothing in the bill about that.

Regarding muzzling, there was a lot of debate in the House in 2011. Being charged with the science file for the NDP, as the official opposition, I spoke about muzzling about 100 times in the House. During the election campaign, the Liberals spoke a lot about unmuzzling scientists. However, there has been no concrete change in policy in science-based departments, and it could have been in the budget implementation act.

I do not think scientists will be fully unmuzzled until there is something in writing, either a policy directive within a department or perhaps something more broad that the government puts into the public service, which could easily be fitted into a budget implementation act to accompany some of the extra funding that the government has put in place for science. However, there is nothing.

Therefore, until there is an actual change in policy, I do not think the government has really acted on its pledge to unmuzzle scientists. It says it has unmuzzled scientists, but there has been no action and nothing in writing to say that this will not happen again in the future.

Another thing I was hoping to see in the budget implementation act that I do not see is the promise to establish a new chief science officer. There is no talk about funding for this new position. There are no new rules in place. My suggestion for the last five years has been that we have a legislated parliamentary science officer who would be an independent officer for science in Parliament and would be like an auditor general for science. In order to do that, it would have to be legislated, and a bill such as this would be a great place for that kind of legislation, but again, there is nothing from the government.

We hear that it may appoint somebody, but this is not an improvement on what we have had in the past. It is just the same old thing. Without any new measures to unmuzzle scientists, to make sure they can speak freely, and nothing about legislating a science officer, it does not seem like the Liberal government is taking science seriously, and I am disappointed to see that.

In terms of science, like I said, it is not mentioned once in the budget implementation act. From what we heard during the election campaign, we always kind of thought that science was a sub-theme in the campaign. There were promises of unmuzzling, there were promises of a new science officer, there were promises that the National Research Council would be revamped, there were promises for funding, and this was the place to do it. The bill was the place for the Liberal government to say that it was not just talk during the election campaign and it would actually put something in writing. We have not seen that.

We heard a lot in the throne speech and there were some extra funds put in the budget, which I think scientists are grateful for, but in terms of long-term protections that would come through my idea of a parliamentary science officer or a directive issued by the government for protecting not just the voices of natural scientists but of social scientists, there was nothing.

I am quite disappointed. There is a lot of stuff shovelled into this omnibus bill, but not the things I was looking for. Perhaps the government can revisit that as we debate this. I look forward to hearing Liberal members' thoughts as to how we can move forward.

The House resumed from May 6 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.

Infrastructure

[Dianne Lynn Watts, Conservative, South Surrey—White Rock, BC]

Mr. Speaker, the only reference to PPP Canada in Bill C-15 states that the Minister of Infrastructure can dispose or sell off assets and shares of PPP Canada. Yet when I was in the House last week and asked whether the minister plans to sell off PPP Canada, he refused to answer the question.

Therefore, I will ask it again. Will the Minister of Infrastructure and Communities tell the House whether the Liberals are planning to sell off this crown corporation, yes or no?

Budget Implementation Act, 2016, No. 1

[Serge Cormier, Liberal, Parliamentary Secretary to the Minister of Fisheries]

Mr. Speaker, before I begin, a very important day is being celebrated this Sunday, Mother's Day. I want to take this opportunity to wish a happy Mother's Day to all mothers in the world, but especially my mother, my mother-in-law, and my wife for our two beautiful daughters.

I am pleased to rise today to speak to Budget Implementation Act, 2016, No. 1. and its important role in helping revitalize the economy and provide greater support to middle-class Canadians.

This bill, Budget Implementation Act, 2016, No. 1., enables us to take a very important step towards ensuring the long-term prosperity of Canadians, and our government is proud to sponsor it.

With budget 2016, the Government of Canada is taking an essential step towards growing the middle class and revitalizing the Canadian economy.

Budget 2016 puts people first and provides Canadians the help they need now, not 10 years from now.

The budget reflects a new approach for the government, an approach that provides immediate help to those who need it most and clears the way for the kind of growth that all Canadians will benefit from.

Budget 2016 is an ambitious long-term plan to reinforce the heart of the Canadian economy, namely the middle class. With this budget, the Government of Canada is investing for years and decades to come. We are investing for our children and our grandchildren so that they can inherit a more prosperous Canada, full of hope and optimism.

With smart investments and its focus on fairness, the government will ensure that the best is yet to come for Canada. Canada's best days are in front of us.

We introduced a new Canada child benefit in budget 2016. This benefit will help parents better support what is most precious to them, their children. The Canada child benefit is a simpler, more generous tax-free benefit for Canadians. It is also better targeted than current benefits to those who need it most. It will help hundreds of thousands of children living in poverty.

With the passage of this bill, families with children under 18 will receive a maximum annual benefit of up to $6,400 per child under the age of six, and up to $5,400 per child aged six through 17, beginning in July. Nine out of ten families will receive more money than they do now. This benefit will help parents with the high cost of raising their children.

If members support the budget implementation bill, they will be providing direct support to Canadian parents and will help them save for their children's futures. At the core of our plan is the idea that when you have an economy that works for the middle class, you have a country that works for everyone.

However, one factor that is just as important is Canadians' hopes for their later years. Our seniors have worked hard their whole lives. They started businesses, raised children, contributed to their communities, and paid their taxes.

The Budget Implementation Act, 2016, No. 1. provides for significant new investments to support seniors in their retirement. Canada's retirement income system has been successful in reducing the incidence of poverty among Canadian seniors. However, some seniors continue to be at heightened risk of living in low income, particularly single seniors.

Our country's compassion should be judged by how we treat our most vulnerable. Therefore, it is very important that we help our seniors have a comfortable and dignified retirement.

This budget will help seniors have a comfortable and dignified retirement by making significant new investments to support these seniors in their retirement. The passage of this bill will cancel the provisions in the Old Age Security Act that increase the age of eligibility for old age security and guaranteed income supplement benefits from 65 to 67.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, I would like to congratulate my colleague on her military service.

I think it is important to speak to members in this House about the specific measures in budget 2016 for veterans and how those measures will affect them. Nevertheless, before I address the more specific aspects of the budget, I want to note that my colleagues, the people of my riding of Beauport—Limoilou, and I all share concerns that the Liberal government is planning some exorbitant spending for this year and the years to come.

In light of Canada's current economic climate, the Liberal government's plan to run large deficits over many years is unjustified. Unfortunately, the government is essentially handing out money that has been borrowed instead of earned.

Furthermore, the government is breaking a number of its election promises, and we are just a few months in. This is surprising, since some of these promises were key planks in the Liberal platform. First, there was the promise to restrict deficit spending to a maximum of $10 billion, which has changed. I would remind members that the deficit spending was supposed to be used to invest in infrastructure, not to subsidize new recurring programs.

Then, the government promised to focus upcoming financial efforts on balancing the budget by the end of its term, which is no longer achievable. The other disappointment was the broken promise to lower the tax rate for small and medium-sized businesses, which create wealth for everyone.

I will set these concerns aside and get to the essence of my speech, which is the budget measures put forward to address the needs of our veterans.

I want to note that these measures were first presented separately from the federal 2016 budget, in Bill C-12, an act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and to make consequential amendments to other acts. This bill was introduced barely one month ago. I thought it was a good sign that the Liberals introduced this legislation, since there was no notion of partisanship on veterans' issues.

As a result, as the official opposition veterans' critic, I was planning to support Bill C-12 and vote in favour of it to help this government take positive action for our veterans, even though I felt that some amendments were necessary to fix certain technical issues.

This is also why I worked enthusiastically and passionately to urge my Conservative colleagues to do the same and vote in favour of Bill C-12, since, overall, it seemed that this bill would improve the well-being of our veterans.

Right now, though, that bill no longer exists. It is part of Bill C-15, the 2016 federal budget, an omnibus bill. As a result, since I will be opposing the 2016 federal budget for reasons of both content and form, and since the measures for veterans have been absorbed by that bill because of inappropriate partisanship, I will have to bear the burden of voting against those measures.

I would like to tell the veterans who are watching that my support for them is unwavering and that my vote against the budget in no way means that I am voting against measures that are good for them.

I will promise veterans this: raw, ruthless honesty that holds nothing back when necessary.

That is why I will be loud and clear today about which of these measures are acceptable to me and which ones are problematic and counterproductive.

No, the government’s approach to veterans’ issues is not perfect, and yes, it is my duty as the official opposition critic to identify major flaws.

Together, then, let us identify the measures put forward in the 2016 federal budget that will help veterans, measures that pertain to financial benefits in particular.

The budget proposes increasing the disability award, expanding access to higher grades of the permanent impairment allowance, and increasing the earnings loss benefit.

One observation immediately comes to mind regarding the political will and, in this case, the legislative will of the Liberal government to move forward with these improvements to allowances and benefits.

They are consistent with the approach that the Conservative Party of Canada had been taking since 2006, an approach that involves constantly improving the financial benefits that veterans are entitled to under the new veterans charter. The charter must be interpreted and amended through the lens of the living tree doctrine, which allows for changes in how our laws are worded and interpreted.

That is why, in recent years, in accordance with this philosophical approach, we in the Conservative Party brought forward various modifications and new measures with respect to this charter that have had a positive impact on veterans. Those measures include things like improvements to the permanent impairment allowance, the new retirement income security benefit, the new family caregiver relief benefit, and the new critical injury benefit.

Like us, the Liberals are adding benefits and allowances to the charter, in other words, increasing financial benefits here and there as the needs of our veterans evolve.

By all accounts, that is commendable. However, I think there are a few glaring problems arising from the Minister of Veterans Affairs's determination to proceed down this path. The improvements in budget 2016 do not address the urgent issues that individual veterans have brought to my attention.

As far as the disability award is concerned, the retroactive increase to the maximum payout draws on considerable financial resources, roughly $3.7 billion that could have been used more effectively. For example, that money could have been used to improve the assistance provided to family members of a veteran who is suffering, to enhance mental health services, and to implement a completely renewed approach to the transition from military life to civilian life and to the bureaucratic services provided to our veterans.

When it comes to these transition services, I very sincerely believe that we are currently at a crossroads regarding our veterans and the help we would like to give them.

Either we continue increasing the benefits, since that is the easiest thing to do, or we cut through the Gordian knot at the root of the problem that veterans are experiencing in their everyday lives. This is the next battle in their lives, the one they must wage in order to get help and an attentive ear at Veterans Affairs Canada, where they unfortunately face a systematically rigid and calculating bureaucracy.

The minister says he wants to help veterans, and that is a good thing. Therefore, he must get rid of the department's sometimes abusive bureaucracy once and for all, as it is characterized by a structure that too often dismisses veterans' requests and needs.

We must acknowledge one irrefutable fact: our veterans suffered in battle and they often return with problems that give rise to terrible mental health issues or physical conditions. These men and women in uniform not only made personal sacrifices. Above all, they dedicated their lives to serving Canada by defending our political principles, which from time to time vacillate even here in the House.

That is why those who are forced to leave the Canadian Armed Forces for medical reasons more often than not feel bitter and betrayed and as though they have lost their country's support for their commitment and ultimately for themselves.

The current veterans' movement includes a multitude of groups and claims often involving an increase in financial benefits.

I truly believe that these financial claims are motivated by injuries that go much deeper and require systemic help that goes far beyond any specific amount of money.

Veterans want respect from their own department, Veterans Affairs Canada. This department, which is the main source of assistance for our veterans in need, has to make major changes to its administrative approach and its established culture. The government needs to take real action on this, not just make announcements with no real meaning.

I believe that the Minister of Veterans Affairs needs to launch a comprehensive review of his department's administrative culture, including a review of staff conduct and of the regulations and structures that determine employees' everyday practices as well as the type and nature of services offered to veterans.

The minister needs to change the status quo. That is the real task he needs to undertake.

[Leona Alleslev, Liberal, Parliamentary Secretary to the Minister of Public Services and Procurement]

Mr. Speaker, our government has tabled its first budget, and as you have seen, we are following through on the commitments we have made to Canadians. The budget implementation act no. 1 is a critical step toward revitalizing the economy and to providing support to the middle class and creating the conditions for long-term growth.

We would do this by making significant investments in infrastructure, with over $60 billion over the next 10 years in public transit, green infrastructure, and social infrastructure. We would do this through the introduction of the Canada child benefit. We would do this by providing help to our most vulnerable seniors.

Canada is facing a difficult economic situation. We know that. We also know that Canada is coming off 10 years of weak economic growth, and we are taking steps to address that at the same time as we are creating opportunities for the middle class and for all Canadians, for jobs, for affordable living arrangements, and for new places to work and rehabilitative places to play. As we lay the foundation for long-term and sustained growth, we are also looking at the immediate needs of the country and its citizens, which our budget addresses.

As we have committed, we would be investing in three strategic areas: public transit, green infrastructure, and social infrastructure. Everyone in this room knows that there are significant benefits to infrastructure investments in the short, medium, and long term. Well-planned investments in infrastructure generate economic growth, create jobs, and leave a lasting legacy for Canadians. Infrastructure is the foundation that shapes our communities making them more liveable and sustainable, and providing the places where we want to live, work, and play.

Our infrastructure investments must be made strategically, collaboratively, and with a long-term vision. They need to focus on projects that are not only shovel-ready, but also shovel-worthy. All orders of government have a role to play in building strong communities and a strong country.

The Minister of Infrastructure and Communities worked collaboratively with government partners and indigenous communities, as well as stakeholder and municipal association partners. Thanks to their input and their work, we have an infrastructure plan that would support the long-term and short-term needs of the country. As we implement the short-term aspects of this plan, it would be through collaboration with these same partners that we would be successful at rehabilitating, recapitalizing, and renewing the infrastructure we have.

By focusing on repairing our existing infrastructure, we can fix what we have now instead of delaying and paying more to fix it later. These investments are critically important to improving the lives of middle-class Canadians. They would make it easier to get around our country, to find jobs, and to build a future. However, it is far from the only thing we would do to help the middle class.

The Canada child benefit, which I mentioned earlier, would be the most significant development in this country's social policy in a generation. It would be far more generous than the universal child care benefit it replaces, giving nine in 10 Canadian families more money in their pockets each month. On average, families would receive $2,300 more per year. That is more money to spend on sports programs, school supplies, music lessons, and trips to the museums. Unlike the universal child care benefit, our new Canada child benefit would be tax-free.

Our government believes strongly that Canadians should not have to pay taxes on benefits given to them by their government to help improve their children's lives. The CCB would also be simpler than the universal child care benefit. The previous government's hodgepodge of child care benefits was confusing, and that made it difficult to access for far too many families. Now families can look forward to a cheque in the mail each and every month.

Finally, and perhaps most importantly, the new Canada child benefit would be fairer than the program it replaces. Why? It is because, unlike the UCCB, the benefit is means-tested. It would deliver the maximum benefit to those who need it the most and be gradually reduced according to income. This means that the government would no longer be sending cheques to millionaires and instead would be able to provide more significant, much-needed relief to those who need it most, to help them as they work to build a better future for themselves and for their children.

A single mom with one child under the age of six and earning $30,000 a year will receive an annual benefit of $6,400 tax-free, while a family with two children, one six or older and one under six, earning approximately $90,000 will receive $5,600, or $2,500 more than they get today under the current system.

This is about more than just extra pocket money. It is about empowering middle-class families, boosting local economies and giving parents a little extra confidence when planning for the future.

Equally important, however, is how Canadians expect to spend their later years. Our seniors have worked their entire lives, started businesses, raised children, contributed to their communities, and paid their taxes. Bill C-15 makes significant new investments to support seniors in their retirement years.

Canada's retirement income system has generally been successful in reducing the incidence of poverty among Canadian seniors over time, but some seniors continue to be at a heightened risk of living on a low income, especially seniors who live alone.

Single seniors are nearly three times more likely to live in low income, and that seems like a particularly unfair set of circumstances. That is why today's legislation will increase the guaranteed income supplement top-up benefit by more than $947 annually for the most vulnerable single seniors, starting in July 2016. This will help support those seniors who are most at risk of experiencing financial difficulties. This enhancement more than doubles the current maximum top-up and will improve the financial security of about 900,000 single seniors across Canada.

Our government has an ambitious plan to support the middle class and those working hard to join it. Each and every member from this party is invested in seeing this agenda realized. With the introduction of budget 2016 and the budget implementation act, we are one step closer to fulfilling our promise to Canadians, but we will not stop there. This government will work each and every day to better the lives of Canadians. We will never stop and we will not be satisfied until each and every person in this country has a fair shot at success.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Speaker, I rise today to speak in favour of budget 2016, and specifically Bill C-15.

At the outset, I want to let this House know how proud I am of this budget, and how proud I am to be part of a government that believes in Canada, believes in Canadians, and believes in restoring hope and rewarding hard work.

This government is taking on what the past government could not, which is giving Canadians relief where it is needed most and removing measures that provided little to no help to many Canadians.

Investment is desperately needed, and it is needed now. Canada has the lowest debt-to-GDP ratio of any G7 country, and interest rates are at historic lows. Now is the ideal time for Canada to invest in its future success.

The strategic and smart investments in budget 2016 will strengthen and expand the middle class, reduce inequality among Canadians, and what I think is especially important, position Canada for sustained economic growth for years to come.

There are five important points that I would like to make in the House today about Bill C-15. One is the elimination of the boutique tax credits. Second is the Canada child tax benefit, which will help more people, tax-free. Third, I will talk a little about much-needed help for seniors. Fourth, I will talk about connecting people with their tax benefits more efficiently and, last but not least, support for veterans.

We speak a lot about fairness in this House: fairness in our marketplace, for our constituents, and fairness throughout this great country. However, in the past, this fairness was hindered by promises that were just an illusion for many Canadian families.

The past government created a series of boutique tax credits. These were many small, seemingly significant benefits that were designed to help Canadians, but frankly were simply smoke and mirrors. There were tax credits, like the children's fitness tax credit and the children's art tax credit, which appear at first glance to help all families. However, families quickly realized that they only provided a 15% tax credit on the first $500 for families who could already afford these activities. It did nothing for those families who could not afford the activities in the first place.

For many Canadian families, the reality is that after food, shelter, and all other necessities, little is left over to help their children become more involved in the community through extracurricular activities. This means that those who needed it most were unable to garner that support.

Bill C-15 is one of the first steps this government is taking to better distribute benefits and programs more fairly to those who need it the most. That means removing the boutique tax credits and ensuring that support does go to those who need it, the low and medium-income families of Canada.

I think we can all agree that it is essential that Canada invest in its children. This government is also working hard to distribute money to those who need it most through the new Canada child benefit.

Canada's existing child benefit system is complicated, and it is not tax-free nor income-tested. The system set forth by the previous government is flawed and ultimately inadequate in meeting the demands of so many Canadian families. Once again, it does not target those who need it the most.

Our government will focus on giving Canadian families more money to help with the high cost of raising their children by replacing the current complicated system with the new CCB. This new system will provide a maximum annual benefit of up to $6,400 per child under the age of six, and up to $5,400 per child for those aged six through 17. Families with less than $30,000 in net income will receive the maximum benefit.

With the introduction of this much better targeted Canada child benefit, about 300,000 fewer children will be living in poverty by 2017. There will be 300,000 young Canadians with greater opportunity and greater hope for their future.

This government has also made a clear commitment to improving the lives of seniors. A key element of this commitment is improving the quality of life for seniors through strengthening public pensions and increasing social infrastructure funding for seniors living.

The government would make significant new investments to support seniors in their retirement years. These increased benefits would ensure that Canadian seniors have a dignified, comfortable, and secure retirement. While Canada's retirement income system has been successful in reducing the incidence of poverty among Canadian seniors, many seniors continue to be at risk of living in poverty.

Budget 2016 has committed to increasing the guaranteed income supplement top-up benefit to $947 annually for the most vulnerable single seniors, which would support those seniors who rely almost exclusively on old age security and the guaranteed income supplement. Our senior population is growing, and this government understands that every individual deserves a retirement that is safe, affordable, and ultimately, sustainable for years to come.

Not only would these benefits be available to those who need it most, but this government has also made it clear that it wants all Canadians to be aware of tax benefits for which they qualify. While the tax system seems overwhelming and daunting to so many Canadians, this government would increase accessibility through outreach and simplified tax return processes. Through proactive outreach, Canadians are more likely to know of and collect the benefits they deserve.

With fewer slips and credits to claim, Canadians' tax returns would be simpler. This reflects a new approach for government, one that offers immediate help for those who need it most and helps to set the course for growth for all Canadians.

Budget 2016 is an ambitious long-term plan to strengthen the heart of Canada's economy, but I also want to highlight the commitment to veterans that is found in this implementation bill. I think we can all agree in the House that the government has a sacred obligation to veterans, an obligation we must meet with respect, gratitude, and appreciation. Our brave veterans have dedicated their lives to the defence of our great nation, and they are worthy of our unwavering support. We will give back to our veterans, who have given so much in service to all Canadians. The budget would restore critical access to services for veterans and ensure the long-term financial success of disabled veterans.

Once again, I am proud to support this budget and encourage all members of the House to vote in favour of Bill C-15. By investing in those who need it most, we will make vast improvements in the lives of so many Canadians. Support for our children, support for our seniors, and support for our veterans are important to all Canadians.

Further, budget 2016 is a clear step toward a prosperous future. It offers immediate help to those who need it most and lays the groundwork for sustained, inclusive economic growth that will benefit Canadian families for years to come. When Canadians have more money to save, more money to invest, and more money to grow our economy, everyone benefits.

Making investments in these critical areas will be great for all Canadians. I urge all members in the House to support Bill C-15.

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.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, I rise today to speak about Bill C-15.

First, I would like to begin by congratulating my colleague the hon. member for Milton for leading Canada's official opposition on this finance portfolio. I would also like to thank my other colleagues who have spoken about this very important topic for their informative speeches.

As we all know, this is a bill that would affect all Canadians. Before I get going, I would like to say I will be splitting my time with my colleague from Chilliwack—Hope.

As the department of finance and parliamentary budget officer have shown, and despite what my friends across the aisle continue to say, when the Liberal government was elected in October, the previous government had left it with a surplus. This has been confirmed time and time again.

It was also left with a balanced budget. However, in the first few months, the Liberals not only burned through the surplus that was left to them, but they also drafted a budget that would run a deficit of at least $20 billion in the first fiscal year alone. Over the next five years, about $100 billion would be added to Canada's national debt. That would also mean billions more just to service the interest on that national debt.

This is all despite an election promise to deficit-spend on infrastructure. However, the significant portion of that funding would be on program spending. That means it is permanent and locked in. That also means future tax increases or deep spending cuts later on down the line.

This plan would ruin any chance of Canada returning to a balanced budget, despite the Liberals promising that in the last federal election.

As everyday Canadians know, we cannot live outside our means. That is exactly what the government is doing. At some point, the bill needs to be paid back. How is the government planning on paying that back? Which programs and services would be cut? Let us take a look at the specifics of this bill.

My riding is full of small businesses, and as we all know, small businesses are the backbone of the Canadian economy. Small business owners know that they cannot spend money they do not have. In order to survive as a business, they must make money.

It is for that reason that, in my riding, they just do not understand why the government continues to squeeze every last cent from the hands of these valuable job creators. It is perplexing that the Liberals would decide not to help them out. Our government laid the groundwork for a decrease in taxes on small businesses, a decrease the Liberals themselves committed to in the last federal election campaign.

Once again, the Liberals have reneged on a promise, another commitment during that election campaign. According to Finance Canada, this broken promise would cost small business owners an estimated $2.2 billion over the next four years. That is $2.2 billion that these businesses could be using to expand their operations, invest in research and development, hire more staff, contribute to the economy, and growth wealth. Unfortunately, the Liberals do not seem to be too concerned about burdening small businesses.

As well, agriculture is a crucial industry across Canada, including in Haliburton—Kawartha Lakes—Brock. It provides the livelihoods of many Canadians, coast to coast to coast. Yet, with all the money the government is dishing out, it neglected to offer any new support to the agricultural industry. The livelihoods of many constituents in my riding are based on agriculture, and this budget completely ignores them.

The budget has no plans to improve the movement of grain, and the Liberals have delayed ratifying the trans-Pacific partnership. When a budget ignores agriculture, it ignores a huge portion of Canadians.

While there are many problems with the budget bill, I would be remiss not to mention that there are sections that would be good for Canada. One of those is the government's promise to continue to expand access to broadband Internet for rural and remote Canadians. In ridings like mine, many Canadians do not have access to high-speed Internet. As we all know, in today's global economy, not having reliable high-speed Internet costs Canadians jobs and business.

The investment of $500 million would go a long way to connecting even more Canadians with reliable high-speed Internet, and build on the progress made by the previous Conservative government, which expanded access to high-speed Internet right across rural Canada, including my riding. Again, there are still gaps, and every party committed to fixing those, and we do appreciate that.

Our men and women in uniform put their lives on the line every day for our values and freedoms. We, as legislators, need to ensure that members of the Canadian Armed Forces have all the tools, training, and equipment they need to carry out their assignments. It is therefore very troubling to see the Liberal government reallocating $3.7 billion over the next five years for future purchases. Large-scale purchases are not a simple process, as we all know, but we need to ensure that the funding is available instead of taking that away.

This budget did provide some funds to the infrastructure needs of the Canadian Armed Forces. I believe this is not enough to ensure the long-term viability of our forces.

Our previous government was responsible for signing trade agreements right across the globe. I was very pleased to see that the Liberal government is continuing our work and expanding access to markets all across the world. This will be good for Canadian businesses, absolutely. I hope that the government ratifies the TPP and continues to help Canadians from coast to coast to coast. Trade agreements like the TPP will give Canadians access to about 800 million potential new customers. These types of agreements are crucial in ridings like mine.

I have already spoken on the effect that the bill will have on small businesses, specifically because their taxes will not be going down as was promised.

The bill will directly hurt families. Families in Haliburton—Kawartha Lakes—Brock are very active. I think we all agree that it is important to keep families active, busy, and having fun. It is a theme that I am sure is similar in every riding, no matter where we are from in this great country. It is not only a trend in sports like hockey, swimming, soccer, baseball, and basketball, but also activities like music, art, and dance classes.

Many of these are very important to people in my riding, but with the Liberals cancelling the tax cuts for fitness and arts, families will not be able to cope. It makes it harder for them. Costs related to many of these activities can rise very quickly, as we know. Anyone who has children enrolled in minor hockey knows that all too well.

We all know that families work hard for their money. They deserve a helping hand.

I will note that while the Canada child tax benefit will help some Canadian families, unfortunately, it will support fewer middle-class families than the previous universal child care benefit.

The bill is eliminating income splitting for families with children, cancelling plans to expand tax-free savings accounts, while at the same time claiming to be helping Canadians.

Even the Liberals' so-called middle-class tax cut will hurt the families that they say they want to help. Given that a large number of families in my riding earn less than $45,000 a year, they will receive absolutely zero from that so-called middle-class tax cut.

Since 2008, the Government of Canada has invested over $200 million in my riding for infrastructure. These were important investments, in programs from new horizons for seniors to municipal infrastructure. Arenas were built. Airports were expanded. Libraries and sports fields were built. Road and bridges were refurbished, and the list goes on.

These investments benefited people from all walks of life. I sincerely hope that the government will continue this strong record in investments, not only in my riding, but right across Canada.

The Liberal budget is very concerning for all Canadians. As I have said before, they know that governments cannot spend their way into prosperity. If that were the case, Ontario would be the economic engine of Canada. We all know it is far from that: over a decade of deficit spending, and where did it get us? That is where we are now.

The bill offers high taxes, billions of dollars in new debt, no plan for creating jobs, and all of this despite being left with a balanced budget and a surplus. When we left office, Canadians had the lowest taxes in 50 years and the best job-creation record in the G7. In just a few months, the Liberals had squandered all of that.

Mr. Speaker, I know my time is running out, and I look forward to questions from my colleagues.

The House resumed from May 5 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.

Second Reading

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Mr. Speaker, I am pleased to rise in the House 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.

I would like to begin by noting that I will be splitting my time with the member for Saskatoon West.

Budgets should reflect priorities, and the priorities of any government governing at this time in history ought to be the growing inequality in our country.

Over the last 30 years, we have seen the gap between the rich and everyone else grow. The richest 100 Canadians now hold as much wealth as the bottom 10 million combined. Just this week, Statistics Canada released a study that showed that over the last 30 years it has been getting harder and harder for Canadians to move up the income ladder, but it has been easier for the wealthy to hold on to that wealth.

This did not just happen. It is the result of decades of successive Liberal and Conservative governments that have chosen not to support the middle- and low-income Canadians in our country. This budget is sadly no different.

Early into the Liberal mandate, they prioritized the so-called middle-class tax cut. However, a study from the parliamentary budget officer proves the Liberal tax plan will give nothing to 60% of Canadians. The biggest breaks will go to the top 30% of income earners, and those making $200,000 or more will receive the maximum amount. This is on top of no action to help minimum wage workers earn a fair living.

Another broken promise to Canadians made by the Liberals in the campaign that we have now seen is not taking any action to close the stock option loophole for CEOs, a loophole that costs the public $800 million a year.

When we talk about the growing inequality in our country and the kind of crushing poverty we know to exist, I think many of our minds go to the experience of first nations. Let us talk about first nations youth. Half of all first nations children in Canada live in poverty. In Manitoba, my province, 62% of first nations children live below the poverty line.

What about this budget? We saw the Liberals choose not to live up to their promises to first nations children. This budget shortchanged first nations education by $230 million. Following a historic ruling by the Canadian Human Rights Tribunal, first nations child welfare saw $130 million less than was promised.

There is also no money for first nations health care, Jordan's principle, or mental health supports, while many isolated first nations, including communities in my own constituency, struggle with suicide crises.

We have also seen the Liberals choose to break their promise to invest in health care. After promising $3 billion over the next four years to help Canadians access high-quality home care, this budget has nothing.

We have also seen the way the Prime Minister, the self-appointed Minister of Youth, came up $170 million short on his commitment made to young Canadians. The millennial generation needs more than a selfie to help them grapple with the challenges they are facing: skyrocketing student debt, out-of-reach housing prices, and a labour market that is flooded with precarious, unstable, low-paying work.

Unfortunately, this is another missed opportunity by the Liberal government to reduce inequality.

When we look at the history of growing inequality in our country, we know that the 1990s, under successive Liberal governments, was the period of time in which the trend around inequality began to grow the fastest. We have heard from those who have studied that trend that one of the major contributors was the cuts to employment insurance.

On that note, let us look at the recent changes that were made to EI. The system left in place by the Conservatives was nothing less than devastated. However, let us be clear. The system the Conservatives inherited was already deeply troubled. The Liberals plundered countless billions of dollars, in fact $54 billion, from the EI fund for political purposes, and supervised the biggest and most thorough attack on our social safety net as of yet.

If the Liberals believe that the only reason the EI system is in shambles is due to the Conservatives' reforms, I recommend that they look into their own history and uncover the real reasons why a majority of Canadians who are out of work today are left without access to EI. In fact, regarding the changes implemented by Bill C-15, we can see that they do not go far enough.

We know that while some extensions were made, areas like Edmonton and southern Saskatchewan were completely left out of the government's relief measures. When we asked the government why, the reply was blunt and brutal. It was because of “cold, hard math”. Those words are certainly cold comfort to Canadian workers out of a job.

The cold, hard math rhetoric they are basing their policies on has apparently come out of thin air. When we have asked for references to studies and government reports, we have seen nothing. We call on the minister to correct this mistake and to include Edmonton and southern Saskatchewan in the targeted regions immediately.

The broader picture, though, is the failure that the regional thresholds have met in trying to achieve more fairness for the EI system. The regional thresholds have been described as inadequate by countless stakeholders. We in the NDP will continue to advocate for a universal 360-hour threshold that would be fair and adequate for all workers.

Canada's social safety net is broken. The government likes to place the blame squarely at the feet of the previous government, which certainly did its share of damage, but the Liberals should take a look in the mirror. What they are now framing as a victory for workers is actually a return to a difficult time that bears the scars of damage done to our social safety net under Chrétien and Martin.

I would like to talk about the term “social safety net”. What does that represent? In our current economic context, the professional lives of a growing number of workers are hanging by a thread. When that thread breaks, the social safety net can prevent people from crashing to the floor. When it works, the social safety net enables people to pick themselves up, dust themselves off, and start all over again.

The safety net has made it possible for many workers to get back into the job market relatively unscathed, but over the past few decades, more and more workers have been slipping through the holes in the net. Government after government has failed to ensure the integrity of our social safety net. Worse still, successive governments have come to power brandishing their scissors and cutting all kinds of holes in it. They seemed compelled to cut swiftly and indiscriminately.

The holes in our social safety net are well known. One of them is the notorious black hole that swallows up so many seasonal workers. The government could easily have enhanced the employment insurance system by renewing a pilot project that added five weeks of benefits, but it forgot about those workers, and they are once again slipping through the holes in the safety net. We are disappointed but not surprised.

People can count on the NDP to keep protecting workers' interests from the old parties' attacks.

Before I conclude I also want to spend some time talking about how this budget left out major promises to my own constituency, including a commitment that the Prime Minister made during the election to partner on the construction of the east side road.

The east ride road is a legacy project that would have allowed 11 first nations that are currently isolated in my constituency to access something that so many Canadians take for granted, a road.

Climate change has made their existence in isolated communities more difficult and more precarious. We are talking about communities that have as high as 80% of the population on welfare. We are talking about communities that are struggling day to day.

On September 29, 2015, the Prime Minister, when asked if he was going to be a partner on the east side road, said, “The full answer is yes, the federal government will be the partner Manitoba needs in order to deliver the infrastructure that is required”. Sadly, there is no such commitment in the budget. Therefore, whether it is on the east side road or whether it is on the other broken promises, we will remain vigilant.

Much work needs to be done on the budget to understand exactly what it covers.

I would like to seek unanimous consent to move the following motion: That, notwithstanding any order or usual practice of the House that Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016, and other measures be amended by removing the following clauses: (a) Clauses 80 to 116 related to the Canadian Forces Members and Veterans Re-establishment and Compensation Act; (b) Clauses 126 to 168 related to bank bail-ins and the bank recapitalization regime; (c) Clauses 188 to 191 related to the Old Age Security Act; and (d) Clauses 207 to 231 related to the Employment Insurance Act; that the clauses mentioned in section (a) of this motion do form Bill C-16; that Bill C-16 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Veterans Affairs; that the clauses mentioned in section (b) of this motion do form Bill C-17; that Bill C-17 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Finance; that the clauses mentioned in section (c) of this motion do form Bill C-18; that Bill C-18 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities; that the clauses mentioned in section (d) of this motion do form Bill C-19; that Bill C-19 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities; that Bill C-15 retain the status on the Order Paper that it had prior to the adoption of this order; and that Bill C-15 be reprinted as amended and the law clerk and the parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing this motion in order to give the full scrutiny that is required by parliamentarians on behalf of Canadians.

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Mr. Speaker, I know that we have recently had the opportunity to spend a week in our home constituencies, and budget 2016 and Bill C-15 contain some extremely positive measures that will benefit Canadians from coast to coast to coast, including Canada's largest-ever infrastructure program and the Canada child benefit, which will benefit nine out of 10 Canadian families.

I am wondering if the hon. member can share with this chamber what his constituents are saying about both Bill C-15 and budget 2016.