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.

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.

Budget Implementation Act, 2016, No. 1

[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.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I must say that I am a little surprised that the member is advocating that we should have put more into the budget implementation bill. I would suggest that if his concern is with respect to the muzzling of science in Canada, I can tell the member that he can be rest assured that through our Minister of Science and this government, we have seen more freedom given to our scientists in the Government of Canada. The Liberal Party is very much supportive of our scientists, and one can see that realization in the budget itself.

The question I have for the member is specific to the budget implementation bill, which contains some fundamental principles that will benefit Canadians. I would ask the member if he would reflect on those principles. The principles I am referring to are the tax cuts to the middle class, the enhancement of the Canada child benefit, and the investments in infrastructure, all of which are very strong, progressive moves by this government through this budget implementation act.

Would the member not agree in principle that these are the types of measures the Canadian economy needs and what Canadians as a whole want to see?

[Kennedy Stewart, NDP, Burnaby South, BC]

Mr. Speaker, what we see there is the rhetoric we have heard around science: scientists have been more free than ever, and there has been more done for scientists by the current government than any other government. However, nothing has been written down. There are no ethics directives for departments to ensure that muzzling will not occur in the future. Therefore, scientists and researchers are still ambivalent with respect to what is and what is not okay to do. We have heard a lot of comments about chief science officers from that side, but nothing has been written down. There are appointments and a mysterious appointment process, yet nothing is transparent. I thought that is what the Liberals said they would deliver, but so far, I am still waiting.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, I would like to ask my colleague a question with respect to the indirect costs of research. This typically refers to the fact that when researchers in Canada apply for grants and whatnot, there is often a lot of work that is associated with having to get that money. In my career prior to entering politics, I was a research administrator. In my office at the University of Calgary, I had scores of auditors all the time. I heard from researchers that they would spend up to half of their time filling out forms, and that there was a lot of redundancy. This is a big complaint with respect to research productivity in our country.

I note that in a previous science and technology strategy document by the former government, it committed to reducing the administrative burden on researchers through a very comprehensive review. I think that is really important. We should have accountability for public funds, but we should also be cognizant of the fact that our researchers should be doing what we pay them to do, which is to perform research rather than push paper across their desks.

I am wondering if the member would comment on whether or not he would support a review of the research compliance burden in Canada, and support subsequent amendments to make life easier for our researchers.

[Kennedy Stewart, NDP, Burnaby South, BC]

Mr. Speaker, I thank my colleague for her question and for her past work. In terms of the indirect costs, new research done by natural or social scientists would necessarily have to go through ethics reviews in universities. However, the indirect costs are usually operating costs, such as keeping the lights on in labs. Therefore, for that to have the same kind of burden seems unreasonable. I would definitely support a review of these costs.

The one thing that we are not seeing from the other side is any kind of comprehensive approach to science funding. It was promised throughout the election and we have not heard much about it. We heard that this mysterious chief science officer might do it. However, we really do not know how this person is being appointed, who he or she might be, or what his or her capacity is. I was hoping to see more of this in the budget implementation act, but there has been nothing. I hope there will be something coming this year because scientists are waiting.

[Raj Saini, Liberal, Kitchener Centre, ON]

Mr. Speaker, before I begin my remarks, I would like to personally express my profound sadness for the tragedy in Fort McMurray. My heart goes out to all the people who have been affected by the forest fires that are still raging.

I also want to thank all Canadians who have offered their prayers and support to our fellow Canadians at this time. I also want to thank all of the first responders, citizens, and officials who are working day and night to confront this terrible situation.

The generosity of Canadians is never in doubt, and as a country we will do our best to support all of those who have been affected.

I want to begin my remarks by thanking the kind and generous people of Kitchener Centre for giving me the opportunity to be their voice in Ottawa. This opportunity has humbled me, and allowed me to grow as a person and become more aware of how beautiful my constituency is. It is beautiful because of the hard-working people who contribute to its vitality and growth.

I was elected to work for the advancement and betterment of my community. Our budget sets the tone and the framework for my community to achieve its potential without fear, limitation, or hesitation.

Budget 2016 is very clear in its approach. Our budget is for the middle class and those wishing to join it. Let me begin by sharing some highlights.

Firstly, our government, at its very outset, introduced a middle-class tax cut to help Canadians make their lives easier. Our approach will help nine million Canadians who will see an average tax reduction of $330 for single Canadians and $540 for couples.

This tax cut will put more money in the pockets of Canadians, who will be able to invest in the things that are important to them. Whether it be investing in their financial security or investing in their children, this middle-class tax cut will boost economic activity in the short term and put us on a more sure footing for the long term

Second, our Canada child benefit plan represents a generational shift in social policy. The hallmark of our plan is that it will be better targeted to those who need it the most.

Low- and middle-income families will receive more benefits and those with higher incomes will receive lower benefits.

Our plan is fairer, more targeted, and much simpler. The strength of our plan is built on fairness. Any family that receives a benefit will not have to fear a clawback, because our plan is tax-free.

We know that raising children is expensive. Many families have to juggle their finances to make sure they can raise their children in the manner they choose. The child benefit plan will allow parents to make decisions that are best for their children. Our plan will lift almost 300,000 children out of poverty. That, in and of itself, is a pursuit that we must take.

Third, our infrastructure plan in budget 2016 will invest $11.9 million right away to build roads, bridges, improve public transit, improve water and waste water facilities, and refurbish affordable housing.

This will create thousands of jobs and boost our economy.

We will invest $3.4 billion over the next three years in public transit. We will invest $5 billion over the next five years in green infrastructure, and over $3.4 billion in social infrastructure, including affordable housing.

This will benefit seniors housing, community centres, and child care centres. This will also aid in the refurbishment of 100,000 affordable homes.

I cannot tell the House how happy the affordable housing community is in my riding. For the first time in a generation, we will see the homeless in our communities finally have a place to call home.

Housing is not the problem. It is the solution.

Fourthly, we have made specific proposals to help our most vulnerable seniors. We will roll back the age at which seniors can access old age security and guaranteed income supplement benefits from 67 to 65. We are also going to boost the guaranteed income supplement for 900,000 low-income seniors.

Our budget is about bringing dignity to those who have spent their lives making our country strong and prosperous. We are all beneficiaries of their hard work and our plan will help them live their lives with financial security, because we owe them our respect, appreciation, and loyalty.

I am fortunate to have begun my professional life in one of the most innovative and progressive communities in Canada. My region, Kitchener, Waterloo, and Cambridge, known as the golden triangle, is considered to be the heart of the innovation community in Canada.

With our collaborative nature and innovative ecosystem, the Perimeter Institute, the Quantum-Nano Centre, Communitech, Google, two universities and one community college, and our numerous start-up companies, our region has led the country in innovation. For us, it is in our DNA. Our clusters and our advanced ecosystem have distinguished us on the world stage. We are a key component in a new economic driver, the Quantum Valley corridor.

Our budget is defining a new approach for Canada's economy.

We know that other countries in the world are searching for ways to improve their societies. We must meet the challenge of a new economy.

Our citizens, who are the most educated and the most technologically advanced in the history of our country, are asking us to give them the tools to succeed. That is why in our budget, we have earmarked $2 billion for post-secondary institutions. Making sure that our leaders of tomorrow have the best resources to study and innovate will help chart a course for future growth.

Research and innovation will be at the heart of our country’s progress.

That is why we will invest $30 million for the Canadian Institutes of Health Research, $30 million for NSERC, and $16 million for Social Sciences and the Humanities Research Council.

We know that helping our researchers will not only benefit our young, but it will strengthen our economy and make for a more progressive society.

We know that small and medium-sized businesses also need the tools to succeed.

That is why we will be strengthening Canada's network of accelerators and incubators. My region will definitely benefit from this visionary approach. We will also be supporting a strong and innovative automotive sector.

One company in my riding is already benefiting from this approach. Pravala Networks, in Kitchener, has received $9.7 million to develop a platform that will provide uninterrupted Internet connectively in vehicles.

We know that by helping small firms to innovate and grow, and by helping high-impact firms scale up, it will only strengthen our economy and provide the high-quality and high-paying jobs that our citizens need.

Finally, our budget sets the stage for the renewal and the re-emergence of our country.

The role of any government is to create the conditions for its people to succeed and prosper. However, a visionary government inspires its people to use their skills and advantages to help the world succeed. We are blessed to live in this wonderful country and that blessing comes with responsibility. Many have said that with power comes great responsibility. In my view, power comes with a greater responsibility to be generous.

My Canada does not seek comfort and wealth for itself; it seeks opportunity to help the world.

Whenever we discover a new medical breakthrough, we share it with the world. When our researchers discover new green technologies, the world will benefit. When we take care of our most vulnerable, we show the world how to live in peace and tolerance.

My Canada strives to make the world a better place. Our budget will not only make our country better, it will allow us to share our knowledge, research, and technology with the rest of the world. My statement may sound bold, and it is.

The 21st century is before us and belongs to us. Canada must claim its rightful place and lead the world in peace and development.

What we say matters on the world stage. How we take care of our most vulnerable will be noticed. How we navigate the complexities of the future will be emulated.

My Canada will be at the forefront and will not shrink from any challenge.

My Canada will lead the world in tolerance, innovation, generosity, and fairness, because better is not only possible, it is within our reach.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I thank my colleague from Kitchener Centre. We are neighbours in our ridings and have had the privilege of attending many events in the area on behalf of the Waterloo region. My colleague mentioned many of the issues and programs that his government is behind and in which it is investing.

There are two areas that my colleague failed to mention, and I think they are important. One is particularly important, based on his comments about caring for vulnerable Canadians. We have heard promises in the Liberals' platform about $3 billion for palliative care, yet there is nothing in the budget for palliative care. That is certainly an area that we need to address in terms of vulnerable Canadians.

The other area that is missing from the budget is any mention of support for our agriculture sector. We know that agriculture is important for one in eight jobs in Canada, and certainly the Waterloo region is among the leaders in agriculture.

My colleague has the privilege of being a member of Parliament for the Waterloo region. I am wondering if he would urge his government to be sure that we fund palliative care, to the tune of $3 billion, and explain why it is not in the budget. Second, why we are so silent on agriculture when it plays such an important part in the future of our country?

[Raj Saini, Liberal, Kitchener Centre, ON]

Mr. Speaker, I want to congratulate the hon. member, because in our community, he does a lot of work on suicide prevention. I congratulate him for the work he has done.

He has raised two points. On the first point, palliative care, he knows that the health accord has expired and our Minister of Health is now negotiating with the provinces and territories. We do not want to prejudge those negotiations, but we will do the best we can for the health and safety of Canadians.

Second, for rural and agricultural Canada, we have made specific recommendations in terms of research, but more important, we will invest $500 million to expand broadband.

[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?

[Raj Saini, Liberal, Kitchener Centre, ON]

Mr. Speaker, it is very easy to defend these policies. With our middle-class tax cut, we know that 9 out of ten families will get a benefit. We know, through our child benefit plan, that more than 300,000 children will be lifted out of poverty.

I am very happy to stand by this budget, because I know that it will be effective and will truly help the middle class and those hoping to join the middle class.

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

Mr. Speaker, my hon. colleague has spoken passionately about the Canada child benefit. I wonder if he could elaborate on how he expects the benefit to support people in Kitchener—Waterloo.

[Raj Saini, Liberal, Kitchener Centre, ON]

Mr. Speaker, right now the world economy is facing the prospect of slow growth. Right now, the one way we can help the middle class in our communities is to make sure that we put more money in their pockets.

We know that raising children is very expensive. This is the best time to invest in our economy, and this is the best time to invest in our citizens. I know that for my region and my riding, helping middle-class families by increasing their child benefit will be more targeted, more focused, and more simple. More importantly, it will be tax-free and will help all Canadian children rise above the poverty level.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, it is a privilege to rise in the House today on behalf of all the residents of my riding who have reached out to my office and spoken to me personally about their dissatisfaction with the first budget of the Liberal government.

Following the release of the budget, my office sent out surveys to every household and business in my riding, asking whether they supported the out-of-control spending of the Liberal government. Out of the responses I have received, over 90% of my constituents do not support these ballooning deficits and unnecessary spending.

Canadians know best, that we need to live within our means and take out loans or increase spending only in urgent situations. There will always be emergencies that require extraordinary measures such as major roof repairs, new pump in a rural water system or the replacement of a car that died without warning.

While most Canadians would agree that these might be good reasons to borrow, I doubt that many would consider it good money management to take out a new loan to pave the driveway or buy a new flat screen TV, especially if already paying down a hefty mortgage.

Along with many members on this side of the House, this is my first budget while sitting in opposition. I am not impressed that the government has already started to tear down the hard work that our Conservative government did to build a strong economy that Canada enjoyed. Nor are my constituents impressed.

The Liberals talk about slow growth in the past. They fail to recognize that Canada led the G7 in economic growth through some of the most challenging times the world has seen since the Great Depression. The current government will not even admit that we left it with a surplus of over $7 billion. The Department of Finance, the parliamentary budget officer, and experts across Canada repeatedly remind the Liberals that they are wrong, but they simply continue to ignore the facts.

This is important because the almost $30 billion the Liberals have decided to borrow is borrowed not out of necessity, but out of a desire to take the hard-earned money made by Canadians and spend it on pet projects for special interest groups. They have ensured that they can continue this out-of-control spending by including in their omnibus budget bill a clause that repeals our balanced budget legislation.

This balanced budget legislation, passed by the previous Parliament, would force future governments to restrict spending so we would not be borrowing on the backs of our future generations and we could incrementally pay down our national debt. However, the Liberals are now removing the hope we had of reducing our debt. Instead, they plan to increase it by another $119 billion.

Many of us in the House have been blessed with children and some of us even with grandchildren. I am blessed with nine grandchildren, but these out-of-control spending budgets accumulated over time will gravely affect them. I want to ensure that the Liberals know that there will be consequences to their poor decisions today.

If we consider just debt charges alone over the course of the government's mandate, interest charges alone increase by almost $10 billion. This is money that could be spent on more important infrastructure projects or increased health transfers. It could also be spent on funding a small business tax cut, or fulfilling the Liberal's promise to increase home care spending and invest in palliative care. Yet there is not one dollar earmarked in this budget for palliative care or increased home care.

Over the next five years, the interest costs alone rise from $25.7 billion to $35.5 billion. That is an increase of almost $10 billion just to pay interest on the increased national debt.

The three topics that have been brought to my attention most often by my constituents are: first, the Liberals' broken promise to lower small business tax rate; second, giving hard-working farmers a cold shoulder; and third, no money given toward increasing access to palliative care for Canadians.

First are the Liberals' broken promises to small businesses. Waterloo region is home to thousands of small businesses and they were all excited to hear that every party in the campaign was going to lower the small business tax rate to 9%. Unfortunately, this promise, like many other promises made by the Liberals, was completely broken in their very first budget.

On top of that, the Minister of Small Business and Tourism, from the Waterloo region herself, has been defending this broken promise throughout the region and across Canada for the past number of weeks. The finance department has estimated that this broken promise will cost the small business sector $2.2 billion over four years.

It is clear that when it really comes down to it, the Liberals fail to understand the crucial role that small business has to play in Canada. One has to wonder if the entire Liberal government agrees with the Prime Minister who stated publicly that small businesses were just “tax havens” for the wealthy.

The Prime Minister really is out of touch with Canadians. We know that roughly two-thirds of small and medium-sized business owners fall directly into the middle class. Employers are about four times more likely to be earning less than $40,000 than they are to be earning more than $250,000.

On top of the broken promise of lowering the tax rate for small business owners, small business owners know that we do not keep on spending money we do not have and are very worried about the direction the government is going.

Speaking on behalf of these small business owners, the president of the Canadian Federation of Independent Business, Dan Kelly, says:

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...Small business owners know that today’s deficits are tomorrow’s taxes.

Second, the budget is a complete disaster for all the farmers in my riding.

Growing up on a farm myself, I have a pretty good idea of the amount of work that these men and women put in every day to feed their families and thousands of other families across Canada. We should be supporting these people. However, the budget completely forgets about them. In fact, the only support for the agriculture industry in Canada is extra funding for bureaucrats in Ottawa, none for moms and dads who are up before the sun rises and finish work well after the sun sets.

In my riding, where there are over 1,200 farms, approximately 1,400 in all of Waterloo region accounting for $473 million in gross receipts in 2010, farmers are professionals. They want to meet their social obligations in protecting the environment, in protecting the health of their animals, and in providing the best quality products for their families, for their communities, and for the world.

The Canadian agriculture and agri-food sectors account for more than $100 billion in economic activity every year and employ more than two million Canadians. The importance of agriculture to our national interests cannot be overstated. In fact, one in eight jobs in Canada depends upon agriculture, those in primary agriculture, food processing, horticulture, and farm markets.

Under the previous Conservative government, farming families saw their taxes drop to the lowest level in 50 years and farmers gained access to more international markets than ever. However, today, with this budget, Canadian farm families are being left behind. The Liberals are borrowing $30 billion to spend in other sectors. The Liberal government must make our farm families a priority.

Third is the government's failure to meet its commitment to increasing home care and palliative care.

As we in this chamber are considering Bill C-14, it is now more important than ever that the government make good on its promise to increase funding for home care and palliative care services. I have said it many times already during second reading of Bill C-14, but let me repeat it. Without proper palliative care options to give Canadians considering assisted suicide, they are not making a fully informed decision. We have all failed in protecting vulnerable Canadians.

Therefore, I would suggest that the Liberal government make four changes to the budget immediately, as it would be in the best interests of all Canadians.

First, the government needs to limit the size of its deficit and re-implement the balanced budget legislation that our government introduced. It needs to start realizing the money it is spending is not its money to spend without reserve, but is taxpayer money and belongs to taxpayers.

Second, the government should make good on its promise to lower the small business tax rate. This would be one of the single-best methods to help out the middle class and to grow our economy. These businesses would be able to expand, innovate and hire more workers, immediately helping our economy.

Third, the Liberals should rekindle their relationship with Canadian farmers and immediately include measures in the budget that would lower taxes for these hard-working Canadians who are the heart of our country.

Last, the Liberal government needs to provide funding for home and palliative care across Canada. Over 70% of Canadians who need this form of care do not have access to it. This is something that absolutely needs to be changed. Now, more than ever, we need to protect and care for the most vulnerable among us.

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, the member is talking about deficits with the authority of someone who is intimately acquainted with them.

In fact, it has been almost 150 years since the Conservatives posted a surplus. The Conservatives left us poorer and more in debt than when they came to power. Furthermore, they attacked supply management, which we are defending. They did not invest in most of the programs that my colleague mentioned today.

My colleague said that we must make more budget cuts, spend less and invest only if it does not create debt.

If he could go back to the Conservative Party's term in 2006, what would he do differently?