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

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

Mr. Speaker, I agree that we cannot have a healthy economy without healthy business. We need to put forward initiatives that will create jobs and help drive the economy.

I talked earlier about the multiplier effect of spending money locally and keeping money in the hands of small business. This is proven. We need to do everything we can to keep money in our communities.

Rather than approaching this through an omnibus bill, it should be separated out because it is such an important topic. Many members in the House have talked about the failed Liberal promise to deliver the tax cut to small business. This should be separated out so it can be looked at, at committee because there are solutions to ensure we can deliver on this promise, as a House, as members.

I hope the government is listening and government members will go back to their communities and consult with the owners of small businesses.

[Steven MacKinnon, Liberal, Gatineau, QC]

Mr. Speaker, once again, I would like to thank the people of Gatineau for placing their trust in me and sending me here to represent them. It will always be an honour. Quite humbly, as the member for the most beautiful riding in Canada, I am very pleased to be here to talk about current and future developments in my riding.

Of course, I too would like to acknowledge the situation in Alberta and send my thoughts and prayers to the people of Fort McMurray and surrounding areas.

I am pleased to have this opportunity to talk about the wonderful things in the 2016 budget. After 10 years of a government that apparently had no interest in solving problems, we, a Liberal government, are tackling many problems at once. That is what we promised in our election platform, the throne speech, and the budget speech delivered by my colleague, the Minister of Finance.

We are choosing to invest in the future. We are choosing to invest in huge segments of Canadian society.

First, the measures in this budget will help those who need it most. Second, this is a long-term plan based on wise investment. Third, this is a step forward for huge segments of Canadian society and takes a decisive and visionary approach to problems we will be facing.

I am proud to be part of a government that made growth and a stronger middle class its priority. I am also proud to see a budget that reflects the reality of Gatineau families who are having a hard time making ends meet.

During the election campaign, I knocked on the doors of many families who told me about the countless challenges they are facing: diminishing job security, salaries that are not keeping pace with the cost of living, or exorbitant child care fees. We listened to their concerns and that is why budget 2016 provides direct help to Canadian families through the Canada child benefit.

Under this new benefit, nine out of 10 Canadian families will receive more money than they would under the previous government's system. Canadian families will receive up to $6,400 per child under six and up to $5,400 per child aged 6 to 17. Furthermore, this benefit is not taxable at the federal or provincial levels. This is a real change in our country's social policy that will lift hundreds of thousands of children out of poverty.

A strong economy starts with a strong middle class. This government has already taken steps to help the middle class make ends meet. We have already reduced the middle income tax rate from 22% to 20.5%. We will continue by investing in the effective administration and enforcement of tax laws. We will propose actions to improve the integrity of Canada's tax system. These changes will give middle-class Canadians more money on their paycheque and provide a fairer tax system. No Canadian should struggle to get the assistance he or she desperately needs.

Changes to eligibility rules to Canada's EI program will make it easier for new workers and those re-entering the workforce to claim benefits. Changes to Canada's employment insurance program will provide economic security to Canadians when they need it most.

This is a choice. Whether it is investing in the middle class, investing in our parents, parents of children, or investing in Canadians who need the help because of a change in circumstance in their employment status or whatever, these are choices that this government is making. These are choices that we are able to make because Canada is now in the business of looking forward, of attacking the inequalities we have seen sprout up all over the world, and making the kind of choices that will favour the Canadian population well into the future.

As far as the future is concerned, I am the proud father of three teenagers, so I am well aware of the challenges that young Canadians are facing. We must invest in the future.

Now more than ever, it is important that post-secondary education remains affordable and accessible, and that young Canadians have access to meaningful work at the beginning of their careers. They should not have to bear the burden of crippling student debt.

Budget 2016 will make post-secondary education more affordable for students from low-income families and will make it easier for them to pay back their student debt. Canada student grants will be enhanced, which will help students cover the costs of their education while keeping student debt loads manageable.

A flat-rate student contribution will be introduced, which will allow students to work and gain valuable labour market experience without having to worry about a reduction in their level of financial assistance.

Finally, the loan repayment threshold under the repayment assistance plan will now be $25,000.

Moreover, budget 2016 proposes to invest an additional $165.4 million in the youth employment strategy, for a total investment of $495.4 million. That is almost $500 million invested in our future, invested in the youth of Canada. The funding would be used to create new green jobs for youth, increase the number of youth who access the skills link program, and increase job opportunities for young Canadians in the heritage sector under the Young Canada Works program.

This funding is in addition to the $339 million for the Canada summer jobs program, to be delivered over three years, starting in 2016-17.

In the riding of Gatineau alone, these investments in the Canada summer jobs program total over $730,000. Budget 2016 will allow for the creation of 229 student jobs this summer. I therefore thank the government for this wise investment.

We must not forget those who contributed to our country for many years, our seniors. Budget 2016 provides for a 10% increase in the total maximum guaranteed income supplement benefits available, which will help more than 900,000 low-income seniors. That is another measure that will help fight poverty in Canada.

The age of eligibility for old age security and guaranteed income supplement benefits will go from 67 back to 65. The budget also provides for increased funding to support the construction, repair, and adaption of housing for seniors in order to improve access to safe and affordable housing. These are significant new investments that will improve the quality of life of seniors.

The relationship between the Canadian government and indigenous peoples is in need of renewal. Budget 2016 proposes to invest $83.4 billion over five years to expand opportunities for indigenous peoples. These are unprecedented investments in education, infrastructure, training, and other programs, and would help to secure a better quality of life for indigenous peoples and build a stronger, more unified, and more prosperous Canada.

Lastly, budget 2016 makes historic investments in infrastructure and innovation. Investments totalling over $120 billion in public transit, green infrastructure and social infrastructure will transform Canadian communities.

My riding, Gatineau, could really use a little help when it comes to infrastructure. As I have explained in the past, Gatineau's population grew by nearly 10% from 2005 to 2011. With growth comes certain challenges. Gatineau estimates its infrastructure needs at $1.3 billion. This deficit is undermining our growth and our quality of life. Gatineau needs support for basic infrastructure, such as water and sewer systems, public transit, and roads.

I am confident that Gatineau will get its fair share, thanks to our co-operative efforts and the agreement that now exists between our municipal and provincial partners regarding public transit.

In closing, I am confident that the Liberal government's budget is the best plan to help the people of Gatineau, as well as all Canadians.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, it seems that the government is in the money printing business. The Liberals cannot give all these goodies to everyone. They cannot satisfy everyone. It is too early to be buying votes. We need investment. This is not an investment. This is a buying votes strategy.

Investment, by any business means, is not like this. Investments take money. There is a plan on how to pay it back, and to tell Canadians truthfully how many jobs are to be created out of it.

Money does not grow on trees. It is an irresponsible act. The government must stop trying to take advantage of people or insulting the intelligence of people across Canada.

[Steven MacKinnon, Liberal, Gatineau, QC]

Madam Speaker, the member talks about investment. Does he know what was not an investment? It was the $150 billion, $160 billion, $170 billion, $180 billion that was borrowed over the close to 10 years prior to this government being elected. It gave us the anaemic economic growth that we have inherited, the infrastructure deficit, such as the $1.3 billion infrastructure deficit that my community faces, and so many communities across this country face.

There was a lack of economic result, and the kind of unemployment and so on, that got this country to the point where it needs the kinds of strategic investments that I outlined in my speech. These are investments in our human resources, our youth, our communities, our infrastructure, in the environment, and in aboriginal peoples.

Those are investments, and those are things that will pay off.

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

Madam Speaker, I was a bit worried about my Liberal colleague there for a moment. It sounded like he was in an auction about the debts they were running: $150 billion, $160 billion. I was getting terrified because the Liberals are kind of doing that right now. It will be a $10-billion deficit, or maybe $20 billion, $30 billion. It is like the worst kind of auction, after 10 years of these guys running up massive debts that have left us with a weak economy.

My question is for my friend. Liberals seem somehow shocked in the House when we are asking them about their promise to cut the small business tax. They somehow feel offended that we would dare hold this up. They have all of these other answers, so the question will again be simple for them.

Budgets are always about making choices. It is still about making choices. The Liberals chose to keep a $750-million tax loophole for stock options for CEOs. I do not know about the rest of the middle class in Canada, but most of my friends who are middle class do not get paid in stock options.

The Liberals chose to keep that stock option loophole for CEOs, yet said to small businesses that they choose not to give them the $2 billion over four years that they promised them. They thought that there were better uses for the money, whatever that happens to be.

It is a simple question. Did the Liberals sit down and say that this is not worth it, that this is a bad idea? Was cutting the small business tax rate in Canada a bad idea and they chose not to do it, yes or no?

[Steven MacKinnon, Liberal, Gatineau, QC]

Madam Speaker, I know it was hard from outside this place, and probably from inside this place, to keep track of Conservative borrowing over the years, so the member will forgive me for not being able to peg it.

Indeed, we have outlined a very solid plan to grow this economy, to grow the ability for Canadian consumers to have confidence in the economy, to help grow our small businesses, and to innovate.

I find it particularly ironic that the member, in the same breath, asks about a tool that venture capital companies use to ask employees to invest to get equity and growth, so we can have new and innovative companies in our economy that will create jobs, create the kinds of jobs that Canada will need in the future. It seems that he would have us amputate that very necessary tool for companies to use as they grow and incubate. The Ottawa-Gatineau area is one of Canada's high-tech hubs, so it is a particularly important place.

More generally, we propose to help Canadian consumers, help the Canadian middle class. Small businesses are telling us that is what will help them succeed into the future.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Madam Speaker, I will try to lead her back to the matter we are discussing today.

She seems to be ignoring the fact that it was her government that sold Atomic Energy of Canada Limited at a loss. I really do not know what she is talking about. It really makes no sense whatsoever. At least the other Conservatives stay on topic when falsely criticizing us and ignoring the Conservative deficit that we inherited and that we have still not eliminated, as we have all the other times that the Conservatives left us a deficit.

Despite all these debts, they did not make the investments needed to improve our regions. I would like to know whether my colleague is aware of the fact that the Conservatives have not managed to eliminate a deficit since the 19th century, and that they have never left a surplus even once upon ceding power, whereas all Liberal prime ministers who tabled a budget have managed to balance at least one.

Therefore, historically, which party has been able to manage national budgets, stimulate economic growth, help the middle class, and address the infrastructure deficit?

The only real wealth the Conservatives left us is the rather rich description of their legacy.

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

Madam Speaker, I can well understand why the member is confused. There is so much missing out of the 2016 budget that it is difficult to track down. There is a lack of transparency. The Liberals do not know the difference between transparency and being invisible. In fact, most of the new spending in the federal budget has very little or anything to do with economic growth or promoting it. Any spending on infrastructure is a holdover from Conservative budgets.

It is a budget intended to buy votes with the money of Canadians based on election promises in 2016, promises that were made to be broken by the Liberal government.

To be clear, there is a debt, and there is debt. However, the Conservatives left the Canadian treasury with a surplus of several billion dollars. No amount of saying otherwise in this chamber will change that fact.

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

Madam Speaker, I am not sure where to start. There was a moment in the member's speech, specifically the aspect that was just talked about, with respect to governments running debt, where listening to the Conservatives talk about debt was like listening to an arsonist lecture us on fire safety. The amount of debt that the Conservatives mounted on top of this country under their watch was $160 billion. They then come in and properly lecture, I suppose, the Liberals because the Conservatives, having run so much debt, are well-practised at it and know what bad debt looks like. They would be authorities on what the Liberals are now doing, so perhaps that is a healthy criticism.

My question for my friend is this. She has this conspiracy scheme put together that the plight of the world is due, in her words, to “extreme environmentalism”, which tries to do such radical things as bring in the polluter-pay principle and notions that we should have a cleaner, greener economy, which all of the studies from Europe, the United States, and Canada show are more productive, less wasteful, and bring about more employment, not less. Therefore, I am wondering how she is able to square that particularly strange circle she has drawn to suggest that having a less polluting economy is somehow bad for Canadians and our economy.

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

Madam Speaker, certainly with respect to the economy and the Green Energy Act that we have in Ontario, blissfully, the member is from a province that has not experienced what we have in Ontario, such as putting up wind turbine farms and generating more electricity than Ontario can possibly use, to the point where it is selling it to the United States at a discounted cost. It is costing Ontario consumers more to generate electricity that is provided to our competitors at a lower cost.

I am very proud that when we experienced the economic world financial distress, the worst economic depression since the Great Depression, our government forged ahead, and by the time the 2015 election came we were in a surplus situation. Even by the end of the financial year, with all of the billions that were spent by the new government after election day, we still remained in a surplus.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Speaking about this investment, Commissioner Treusch stated:

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

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

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

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

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

[The Assistant Deputy Speaker, Carol Hughes]

The government House leader is rising on a point of order.

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.

[Kelly McCauley, Conservative, Edmonton West, AB]

Madam Speaker, I want to clear up something about the CRA. The biggest drop and the lowest number of CRA employees in the last 15 years came under the Liberal government of Jean Chrétien and Paul Martin many years back. They slashed it 24% in the last two years of their mandate.

The budget is full of broken promises with the biggest one being a promise of $3 billion added for at-home health care, which was regurgitated as $3 billion for palliative care. This came up during the debate that ended in closure for the assisted suicide legislation.

Where is this money? The Liberals promised it in the election. They promised it during the debate on assisted dying. Could the member please tell me where this money is?