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

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

Mr. Speaker, I rise on a point of order. There have been discussions among the parties and I think if you seek it, you would unanimous consent for the following motion. I move:

That, notwithstanding any Standing Order or usual practice of the House, the third reading of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, may be taken up in the same sitting during which the report stage of the said Bill is disposed of.

[The Assistant Deputy Speaker, Anthony Rota]

Does the hon. member have the unanimous consent of the House to move the motion?

[Some hon. members]

Agreed.

[The Assistant Deputy Speaker, Anthony Rota]

The House has heard the terms of the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[The Assistant Deputy Speaker, Anthony Rota]

(Motion agreed to)

The hon. member for Abitibi—Témiscamingue.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, I am going to talk about the budget implementation bill and, of course, a number of things that are particularly important for my riding, including the mineral exploration tax credit. I think it is worthwhile at this point for me to sketch a portrait of what Abitibi-Témiscamingue represents in terms of mineral exploration.

In my riding, one in six people is connected to the mining industry. That is 16% of jobs, both direct and indirect. In Abitibi-Témiscamingue, investments in mining exceeded $1 billion in 2011, but dropped to about $780 million in 2014 because of the economic downturn.

In addition, 370 businesses are active in the mining industry either as product manufacturers or mining companies. Clearly, this sector is huge in my riding. That is why I want to talk about the mineral exploration tax credit.

The budget implementation bill renews the mineral exploration tax credit, which helps junior mining companies using flow-through shares. Of course, we support the mineral exploration tax credit, but unfortunately, the Liberals missed this opportunity to make it permanent. I think it is very important to make this tax credit permanent in order to make life easier for mining companies.

The fact that the tax credit is not permanent and that no one knows whether it will come back has a serious impact when firms try to plan their exploration activities. They can try to hurry, but they do not know whether it will happen.

It is important to understand the mining cycle. When it comes to mining, if companies wait for metal prices to go up before they explore, by the time they go through all the steps to eventually get to a mine in production, metal prices will have dropped again. It would be much better to promote exploration when metal prices are low, so that when the price of gold, for instance, goes up, the mines are ready to go into production quickly, within two or three years. That is the logic that must be applied to the mining sector. That is why this tax credit must be permanent, if we want to promote the development of our mining sector in a much more intelligent manner.

When it comes to prospecting, that is, when a company thinks there is a deposit somewhere, it takes about five years to do the research, get some core samples, and analyze them. The delimitation also has to be completed, in order to find out exactly where the deposit is located.

Ideally, this five-year period would coincide with the down cycle in ore prices. That way, when the price starts rising again, the next phases can begin. It is currently a good time to undertake mining exploration. We cannot abandon our mining companies, especially those who are just starting up. They need help now. Unfortunately, when metal prices are low, it is harder to find investors to back up these companies. That is another argument in favour of supporting our mining startups in their exploration activities.

When we talk about the development phase, which encompasses pre-production preparations, the setting of every technical and economic parameter, and all feasibility studies and environmental assessments, we talk about a three- to eight-year period.

For installation and production, we are talking about a 10-year timeframe, give or take, during which the mine will actually be in production.

That is the mining cycle. Afterwards, of course, there is everything related to closure and rehabilitation, which can take a year or two. Environmental monitoring can last for several years, depending on the situation.

That was one of the especially important aspects of the mineral exploration tax credit. The other important aspect that was brought to my attention several times had to do with eligible expenses.

At the exploration phase, mining companies are increasingly responsible for consulting the public to notify them of their activities, and they are on board with that. Sometimes, they also conduct environmental assessments or studies on the fauna before even beginning with the exploration, to ensure, for example, that they are not disturbing the habitat of animals such as moose or other wild animals.

Before exploration even begins, there are expenses for consultations or environmental assessments. Unfortunately, since these are not expenses for extracting core samples, for instance, where the work is actually done on the ground, these expenses do not count as eligible exploration expenses.

It might be a good idea to include these expenses with those that are incurred for mining exploration because they go hand in hand with ensuring that the projects unfold seamlessly. The purpose of all these expenses is truly to ensure that the approach taken by the mining companies is much more respectful of the communities. I think that the Liberal government could also take a look at this as part of the budget.

I would also like to take the time to talk about other measures. For example, feminine hygiene products have been added to the list of tax-free products. I believe that it is a good measure that can be primarily attributed to the NDP, which proposed this measure in the previous parliament. It has now been implemented. We can be proud of what we accomplished.

I would like to remind the government that I introduced a bill to eliminate the tax on basic baby supplies. These products are zero-rated in most provinces that do not have a harmonized tax. In all provinces where the provincial tax is not harmonized, these products are considered zero-rated supplies.

I believe that we should consider taking action to ensure better coordination between the provinces and the federal government. We do not have to wait for my bill to reach second reading stage. I have many other interesting bills. Therefore, I would not be upset if the problem were to be solved before we reach my bill. The government is completely free to implement the measures contained in my bill before it is debated. I would be pleased if it wanted to do so.

I also think that it will make life easier for a lot of parents who buy basic baby products. The bill provides a list of products that are absolutely essential when caring for a baby. I also think that many parents would be grateful to the Liberal government for taking action on this.

Another important point is that the Liberals have gone back on their promise to lower the small businesses tax rate to 9%. Small and medium-sized businesses in my riding will be particularly disappointed, especially when you consider that they provide the vast majority of jobs there. They are the heart of our communities.

Some communities rely solely on a local SME, which enables people to earn a living. For example, in La Reine, where I am from, Les Aciers JP manufactures metal products. It hires welders and people who work on the cutting tables. Without this business, there would be nothing left in town, aside from a few service businesses.

When the government chooses not to support these businesses and lower their taxes, it is adopting measures that hurt rural ridings like mine. It is important to support these businesses. These are local jobs that help keep people from leaving many of these towns. I think that is particularly important.

Since I am out of time, I thank my colleagues for listening. I would be happy to take questions.

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

Mr. Speaker, I will pick up on the member's last comments in regard to the importance of small business being the backbone of Canada's potential job growth. I would just provide assurances to the member and others who might be listening that this government takes it very seriously. They talk about the middle-class tax break, where we would inject literally hundreds of millions of dollars into the pockets of Canada's middle class. They would see higher disposable income that would help small businesses in all regions. It would also directly support those franchise owners, the small companies that the member made reference to because they too would be getting a direct tax break.

Whether it is indirect or direct, this budget in several ways would support small businesses. Would the member at the very least acknowledge the fact that there are both direct and indirect advantages for small businesses in this budget?

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, the majority of my constituents do not make enough money to take advantage of the much talked about middle-class tax cut. They had hoped to be part of the middle class as defined by the Liberals, but it seems that they were wrong. There are many people in my riding who do not earn the $45,000 a year it takes to get a single dollar back in tax relief.

Thank goodness that the cost of living remains low in many of the towns I represent. Houses can be bought much cheaper than in Toronto, for example. There are perfectly decent houses for less than $100,000. Perhaps Toronto is a different world. That said, most of my constituents will not be benefiting from the middle-class tax cut because their low annual incomes do not meet the income eligibility threshold.

People are left feeling like we have failed them, which is a shame. If the tax cut had been applied to the lowest tax bracket, as the NDP suggested, the vast majority of people would have benefited. However, the Liberals held firm, and as a result, most of my constituents will not make enough money to receive a single dollar in tax relief.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I thank my colleague for her articulate and well-researched speech about the realities of these people and the economic benefits. She made constructive arguments about supporting entrepreneurs, small and medium-sized businesses and people from her region.

I agree with my colleague on the disconnect between the great expectations created by that party during the campaign, when everyone agreed that small and medium-sized businesses needed a lower tax rate, and what actually followed.

Does the member not find even more disappointing that the great expectations of small and medium-sized businesses, Quebec and the aerospace sector were not met?

Does she not find deplorable that this election campaign turned out to be such a complete fraud? The Liberals made promises and announced a humongous deficit, and yet people will not even get what they were promised during the campaign.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, I thank my esteemed colleague for the question.

That is a real problem. In 2015, I ran in my fourth campaign. I have been a candidate since 2006. People are sick of being lied to. They want the truth. They do not want any surprises.

Being honest with Canadians is how we score points. People have had enough of politicians promising them to fix everything and doing nothing once elected. They simply want the truth. Is that so hard?

When I worked as a nurse, it was the same thing. Patients do not want to be told that everything is fine, that they still have 10 years ahead of them. They want to be told the truth when things are not going well so they can plan for what comes next. They do not want reality to be sugar-coated; they want us to tell it like it is and stop springing surprises on them. That is how they can make informed choices.

When politicians promise one thing and do the opposite or fall short of expectations, people are disappointed. That is unfortunate, because it reflects badly on all of us.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, it is a pleasure today to stand in the House and speak to Bill C-15. The bill would implement a number of the measures that the government had previously announced in the budget that was tabled here in Parliament on March 22.

Today I would like to outline the various reasons why I am opposed to this legislation and also to the fiscal plan of the government more generally.

The main reasons why I am opposed to the budget include the following: a larger than promised deficit, not just larger but huge; removal of the universal child care benefit and other beneficial tax credits; gutting of the Canadian military; lack of support for small businesses; and the list goes on. What really irks me and most Canadians is that the Liberals brag about a middle-class tax break when we all know that in reality it is really a middle-class tax fraud.

I want to carry on with the topic of deficits. This was perhaps the most disheartening part of the budget. Many Canadians were disappointed that the Prime Minister broke his main election promise to Canadians to keep deficits at $10 billion or less. Budget 2016 misses this target by a country mile. The budget projects deficits of $29.4 billion in fiscal 2016-17; $29 billion in 2017-18; $22.8 billion in 2018-19; and further deficits past 2020. This is not what was promised to Canadians and is not a fiscally responsible plan. The Liberal government has the arrogance and audacity to plan for deficits far beyond even its elected mandate.

What is most concerning is there is not a clear plan or pathway to balance the books. When the global economic crisis hit in 2008, the former Conservative government and my good friend the late Hon. Jim Flaherty recognized the need to run deficits to stimulate the economy and create jobs for Canadians. However, it was always made clear to all that there was a plan to return to balance. Budget 2016 provides no such plan and the economy is far better off today than it was in 2008.

The government seems content with running deficits simply for the sake of having a deficit. The most recent “Fiscal Monitor” was very telling of this. It showed us that from April 2015 to February 2016 the government was running a $7.5-billion surplus. However, the government posted what has been called a blockbuster deficit of $9.4 billion in the last month of the fiscal year and therefore we were left with a $2-billion deficit for 2015. This is shameful, simply does not make any common sense, and certainly does not make any economic sense.

I have heard from a number of families in my riding who are concerned with the benefits that the budget would take away from hard-working families. Most notably, budget 2016 would remove the following tax credits: the children's fitness tax credit, the children's art tax credit, and tax credits for post-secondary education and textbooks. These measures were widely supported by families in my riding and across the country who enrolled their children in minor hockey, baseball, soccer, and lacrosse, and by those who enrolled their children in dance classes, piano lessons, and other arts and culture activities. Furthermore, the tax credits that supported those in post-secondary education were vital for helping families afford to send their children to school beyond high school. All gone. The floor swept clean of good programs just because they were initiated by the previous government.

While in government the Conservative Party reduced taxes to their lowest point in 50 years, which resulted in a typical family of four saving almost $7,000. We brought in concrete measures that allowed families to keep more of their hard-earned money. Furthermore, these were fair measures that benefited all families, in particular, low- and middle-class families. Did I happen to mention that middle-class tax fraud?

In keeping with the topic of keeping taxes low, I was also disappointed to see two measures in budget 2016 that are bad news for small businesses in Canada. These are keeping the small business tax rate at 10.5% instead of lowering it to the scheduled 9%, and ending the hiring credit for small businesses. These were small potatoes for the government, but big items for small businesses. Small businesses, in my riding and in most ridings across the country, are the lifeblood of the Canadian economy and are especially important in rural communities. They are responsible for 82% of jobs in Canada. In my riding of Bruce—Grey—Owen Sound, the local economy depends on a healthy community of small businesses. I strongly support measures to ensure that small businesses keep more of the money they earn so they in turn can hire more staff and grow their business. That is how the economy works. Unfortunately, the budget removes two key measures that have supported and would have continued to support small businesses in Canada.

Furthermore, the budget is a slap in the face to the Canadian Armed Forces. We all remember too well the 1990s and what has been called the “decade of darkness” for our military under the Liberal government at the time. It appears as though while sunny ways are supposedly shining everywhere else, our military is once again being left in the dark. Budget 2016 removes $3.7 billion out the budget of the Department of National Defence, which was earmarked for vitally important procurement projects. What this means is that under this government the military will not be able to upgrade important military equipment. It is my fear that we are in for another Liberal attack on our military. In fact, the military is under attack, and it is not by ISIS. It is by the government.

Finally, I want to comment on Canada's recreational fishery and the importance that the industry has to the economy as a whole. Like my riding, I know, Mr. Speaker, your riding depends a lot on it. I have fished up there, and anyone who does recreational fishing, no matter where it is, they leave money behind, which supports small business.

My riding is surrounded by the Great Lakes on three sides, and the recreational fishing industry is a vital source of economic activity for a number of communities. For example, every year, the Owen Sound Salmon Spectacular draws anglers from across the country and out of the country to the area, which is fantastic for local businesses.

It should be noted that every year, recreational fishing in Canada adds approximately $8 billion in economic activity. Supporting this industry has always been a top priority for me, and I want to spend a few moments presenting an issue that I feel was overlooked in the creation of budget 2016.

The Great Lakes Fishery Commission plays a vital role in protecting our Great Lakes and the recreational fishery. The commission was established in 1955 by the Canada-U.S. Convention on Great Lakes Fisheries. The commission has a mandate to conduct research on the Great Lakes fishery and to protect the fishery from invasive species such as Asian carp and sea lamprey. However, while the United States has increased annual funding to the commission, budget 2016 contains no new funding. In fact, a number of the Great Lakes state governors have written to the Canadian ambassador, outlining their disappointment. I am with them on that. I am also disappointed that the budget did not address this problem.

In closing, Canadians expect more from their government than what they are getting with the budget. Canadians did not vote for spiralling deficits with no plan to return to balance. They did not vote for an assault on our military, and they did not vote for irresponsible economic policy. Lastly, they did not vote for a middle-class tax fraud.

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

Mr. Speaker, I disagree with the member. I believe the budget delivers what Canadians wanted. It delivers on a number of election platforms. Let me just cite a couple of examples of that.

The poorest seniors in Canada, single seniors in particular, would receive significant increases to their GIS. It is something the Conservative government failed to do. The budget would deliver the most generous Canada child benefit program that we have ever seen in the history of our country. It would lift hundreds of thousands of children out of poverty. Again, it is something the Conservative government failed to do. The budget would deliver a substantial tax break to over nine million middle-class Canadians. That is hundreds of millions of dollars going back into the pockets of Canadians. The budget would commit the hugest amount of dollars to expenditures on infrastructure, in every region of our country. This is a budget that Canadians wanted.

I will narrow my question down to one issue for the member. How do the Conservatives justify in their own minds voting against one of the most significant tax breaks that we have seen to Canada's middle class? How do they vote against that?

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, he left that pretty wide open. The bottom line is that I do not know where the hon. member gets his numbers from. This is a budget that absolutely does not help the middle class, and I am going to concentrate on that because that seems to be the big item the Liberals want to talk about, the middle class.

The middle class, in their terms and definition, are people who make the same money as members of Parliament. Anybody making up to $200,000 a year, in their wisdom, in their minds, is included in that.

How do I tell families where both spouses are working and making $40,000 to $50,000 a year that they are in the middle class, while a member of Parliament is included in the same category? I do not think many of them will buy it.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for his comments.

Considering some of my colleague's recent statements or publications, I was wondering if he could tell us what he thought about the assistance programs for Canada's least fortunate. I am thinking about income security programs such as old age security and employment insurance.

What does he think about the help the government can give to Canada's least fortunate and what was proposed in the budget?