Bill C-15 (Historical)

Budget Implementation Act, 2016, No. 1.

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

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

Second Reading

[Randeep Sarai, Liberal, Surrey Centre, BC]

Mr. Speaker, this budget brings a lot in terms of social funding through CMHC.

My constituents were very happy to hear my answer to the very first question I was asked when I campaigned and got nominated, which was whether co-op housing agreements would be renewed and maintained. My understanding is that this budget will maintain and renew those agreements so that we can keep affordable housing in my great city and help those who are financially challenged or have lower incomes stay in my city.

I am very happy that this budget addresses the very first question that I was ever asked as a political candidate in this election.

[Joyce Murray, Liberal, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, I rise today to speak on the bill that I just asked a question about, Bill C-15, which will implement many of the measures contained in the budget that our government tabled on March 22.

In electing a new government, millions of Canadians signalled their desire for change. Our government was elected, in part, because we took that desire seriously. We offered Canadians an ambitious new plan for a strong middle class and a strong economy. We promised that we would do all we could do to help every Canadian succeed.

Budget 2016 is an important part of fulfilling that promise. It offers immediate help to those who need it the most, and lays the groundwork for sustained, inclusive economic growth that will benefit Canada's middle class and those working hard to join it. It helps reduce the income inequality gap while stimulating the clean economy.

For generations, Canadians worked hard, secure in the belief that their hard work would be rewarded. They trusted that in exchange for their honest efforts, they would realize greater opportunities for themselves and their families. This sense of optimism, paired with government policies that strengthen the middle class, as well as the robust immigration we have had that has created such a diverse country, has helped to make Canada the country it is today.

However, in recent years, the benefits of economic growth have been shared by fewer and fewer Canadians. Canada's wealthiest 1% have seen their income double in 30 years. Meanwhile, even though household costs continue to rise, most families' incomes have barely risen over the same 30 years, making it harder to make ends meet.

In Vancouver, we have the double whammy of a shortage of affordable housing and skyrocketing housing prices. That first started in my riding of Vancouver Quadra, on the west side of Vancouver, but it has now moved into our metro area.

I am pleased to say that I have met directly with leaders in CMHC, to make sure they understand the Vancouver situation, how hard it is for ordinary families and young people to buy a house and make a home in Vancouver, and the downside of that for our city. I am also pleased to have met several times with the minister responsible for housing, so that he can understand Vancouver's unique situation.

Our government has responded in this budget, not only with a massive infrastructure investment, social housing being a big part of it, but also through a half a million dollars being allocated for StatsCan to thoroughly research and understand the statistics, and bring the evidence forward about the housing price increases that I just described.

With budget 2016, our government seeks to help more Canadians and to restore the confidence of Canadians in a brighter, more prosperous future. I am going to speak about a couple of things that are near and dear to my heart. One of them is the environment, and another one is veterans.

The environment is actually the top issue for Vancouver Quadra constituents, according to the surveys and how they fill them out. Our government is operating on the principle that the economy and the environment go hand in hand. I used to say that 15 years ago when I was an environment minister for the Province of British Columbia, but that principle has not been in operation over the last 10 years. I am very pleased that our environment minister, our Prime Minister, and our cabinet see the world that way.

I would like to highlight some of the investments in the environment. Budget 2016 provides $3.4 billion over five years to address climate change and air pollution, ecological protection, and to restore public trust in the environmental assessment processes. It is a very important investment.

In addition to that, the budget invests $81 million to boost Canada's marine and coastal protected areas, from 1% today to 10% by 2020, a very ambitious program of improving protection for our marine areas.

In addition, $40 million a year has been reinstated for ocean science investments for research and science, so we can help protect our fish stocks, like our wild salmon that are so important to British Columbians.

The Kitsilano Coast Guard base, which is an absolutely necessary facility and was closed by the Conservative government, has been reopened. The announcement took place a week or so ago. This base will have a strengthened mandate to protect our environment, our ecosystem in English Bay and Burrard Inlet, and the beaches, by responding to oil spills. There is a lot of good news on the environment.

The other area where we needed real change to happen, and which Vancouver Quadra constituents see as a core responsibility of a responsible government, has to do with veterans. Veterans have dedicated their lives to the defence of our country and deserve our unwavering support. Frankly, they did not receive that from the previous government.

The Government of Canada, over the decades, has had a social covenant with all veterans and their families. However, the previous government had their lawyers arguing in lawsuits that it did not exist, and they tried to prevent the veterans from having a fair settlement for their injuries. That is a sacred obligation that we must and we will meet with both respect and gratitude.

As the defence critic for two years prior to the recent election, I met many times with veterans in town halls, in Legion halls, and meeting rooms across the country and in Ottawa, and heard their many concerns. I am delighted that our government will give back to veterans who have given so much to Canadians. We will respect the social covenant and this sacred obligation.

The bill restores critical access to services for veterans and ensures the long-term financial security of disabled veterans. Canada's veterans will receive more in local in-person government services, as well as better access to personalized case managers.

With this budget, we are providing additional funding to Veterans Affairs Canada, so it can reopen service offices recently shuttered in Charlottetown, Sydney, Corner Brook, Windsor, Thunder Bay, Saskatoon, Brandon, and in Prince George and Kelowna in my province of British Columbia. We are also planning to open a new office in Surrey, B.C.

To help veterans in their rehabilitation process, we will enhance front-line services by hiring additional case managers and reducing the client-to-case manager ratio to no more than 25 to one. We will increase the earnings loss benefit from 75% to 90% of a veteran's monthly gross pre-release military salary. The principle here is that veterans who have been injured should not have to live in poverty because the government is ignoring their needs.

There are many other aspects of the veterans' requests that are being satisfied in the budget, and the government will continue to consult with veterans toward the full package of support and respect that they have earned and they deserve. Canadian Armed Forces and veterans with service-related disabilities will see an increase in the benefits they receive, and they will see an increase in the services that they are provided.

The measures contained in our budget will not only benefit our veterans, but other groups of Canadians who deserve our support and our respect. This includes senior citizens and our children.

Unfortunately, I do not have time in this speech to elaborate on the groundbreaking investments we are making in seniors and children that will remove almost one million low-income seniors from below the poverty line and lift hundreds of thousands of children above the poverty line as well.

By boosting funding for the most vulnerable, we are reducing income inequality. We are investing for the years and the decades to come. We are investing in our children and grandchildren, so that they may inherit a more environmentally sustainable, prosperous, and hopeful Canada.

Simpler, tax free, and more generous, the child tax benefit is an example of the kind of good public policy that is in this budget. The bill is an essential step to restoring prosperity to the middle class and fairness to all Canadians.

I look forward to hearing from colleagues from all sides of the House as we discuss the bill in the coming days. It is a very timely and very important piece of legislation for Canadians.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Mr. Speaker, I thank the member opposite for her comments, especially in regard to our veterans. Being deputy critic for veterans on this side of the House and having the opportunity to serve on the committee, it is very clear that veterans are a high priority for all of us. It is important to note that the previous minister in the past government was making some significant progress on the initial charter, which was introduced by the Liberal Party with the set amounts for the disability award that were put in place at that time. We all want to see this program grow and our vets to be truly cared for in the way they should be.

We are hearing in the committee over and over again about how things were improving, and are continuing to improve as well. However, in my own riding, and with the many veterans groups I am meeting with, there are two things that are concerning. I would like the member to comment on them briefly.

The first is that our veterans are concerned that their services are being provided in a large deficit situation and they are concerned about the ongoing viability of these awards. They are also very concerned with what is happening with the Department of National Defence. Our veterans care very much about our soldiers and are concerned about the cutbacks that we are seeing there.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, in the two years that I was defence critic, no one ever came to me and said “Gee, our most severely incapacitated and disabled veterans are living below the poverty line when they turn 65, but it's a good thing because we need to cut our spending.” They were not saying that.

In fact, I want to point out that the previous government took $1.1 billion out of the funding for Veterans Affairs Canada. That has contributed to the shrinking of services, funding, and benefits for those who deserve it the most.

I am very proud that we are reversing that. If we are doing that in the context of a deficit that we will be eliminating over the course of the next few years, so be it. Our veterans deserve to be put first.

[Sheri Benson, NDP, Saskatoon West, SK]

Mr. Speaker, we heard during the campaign that the Liberals were promising more help to the middle class. In my riding, I have five neighbourhoods where the majority of people make $45,000 or less a year. We had heard that the so-called middle-class tax cut would benefit those earning $210,000 or more the most, which means that six out of 10 Canadians would not be getting anything from the tax cut.

Bill C-15 does not offer help through that tax cut to those who need it most. I would ask the member to comment on that.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I do not know the source of the member's data. People making $210,000 and over will not enjoy any net benefits from the middle-class tax cuts, because there is an increase in their taxes. Nor would they enjoy any benefits from the new Canada child benefit because it will not be available to them.

Those who need it the most, at the lowest end of the income spectrum, will receive the bulk of the Canada child benefit. In fact, a low-income family with three young children could end up with about $19,000 of tax-free funding. It is almost like a guaranteed minimum income from the Canada child benefit. There will be nine out of 10 families who will benefit from the change. It is exactly what we need to address poverty and to reduce income inequality. Therefore, I am proud to support it.

[William Amos, Liberal, Pontiac, QC]

Mr. Speaker, it is an honour to rise to ask a question of my colleague, whose politics I have admired for a long time. She is a very authentic politician from Vancouver Quadra.

Having lived in her riding, and having cycled and taken the bus in that riding many times as a graduate student at UBC, what are her constituents saying about the proposed investments in public transit, and also in active transit, which is so important to our country?

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, the member for Pontiac clearly understands Vancouver Quadra, because the environment is the number one concern, as people express it to me. People in Vancouver Quadra are delighted at the investments in growing a clean energy economy and reducing greenhouse gas emissions: $2 billion, I believe, over two years to help the provinces do that.

The huge increase in investment in infrastructure for public transit is very important; it will take a lot of cars off of the streets of Vancouver. There is a wealth of issues that this budget addresses in terms of the priorities of Vancouver Quadra.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I will be sharing my time with my hon. colleague, the member for Carleton.

It is a great pleasure for me to be here today to speak about Bill C-15. When I use the word “pleasure”, what I mean is that it is a pleasure for me to share my thoughts with my colleagues and Canadians, although not necessarily a pleasure for me to speak about Bill C-15 and the Liberals’ budget.

Before broaching this subject, I believe that my colleagues will allow me a moment to repeat the appeal I launched to all Canadians regarding the tragic events now unfolding in Fort McMurray. Yesterday the population of Lac-Mégantic began rallying with the mayor to launch a universal call for donations to the Red Cross. We know that the Red Cross was a huge help to us in Lac-Mégantic during the recent tragedy. It raised over $14 million. This was for the little downtown core of a small town in Quebec that was ravaged by fire. Of course, there were deaths. It was an extremely painful event. Recovery has been very difficult for us, and even today, the Red Cross is with us, providing support.

What is happening right now in Fort McMurray is massive, it is serious, it is horrible. These people will also need Canadians' support. I commend the government's commitment this morning to match the amounts that Canadians donate to the Red Cross to help the people of Fort McMurray. I think this is a wonderful gesture, and if we want this money to get there and help them as soon as possible, I hope that people will donate. It is easy. People just need to visit the Red Cross website to make a donation. If every Canadian donated the equivalent of the price of a coffee, the people of Fort McMurray could receive nearly $60 million. God knows that they will need it.

Now, let us get back to Bill C-15. I read the bill. I read the summary, and this is how it begins:

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...

Further on, it says:

(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;

There is also the following:

(i) eliminating the child fitness tax credit;

That is how Bill C-15 begins. The government claims to be the champion of the middle class, the champion of families, and when we take the time to read the summary, we see how these splendid changes are announced, this new Liberal approach. For a government that professes to be the champion of the middle class, the tone is set. I think that most people in the regions of Quebec will not be fooled by what is going on here.

That is especially true since most of those people work for small and medium-sized enterprises. Middle-class children are directly affected since the incentives for culture and physical fitness no longer exist.

In my speech, I will be talking about three subjects. First, as you may well have guessed, I will be talking about small and medium-sized businesses. Second, I will be talking about the agriculture sector, because we must not speak only about what is in the document. We could speak about that at length because there are a lot of things I would like to say, but we also need to speak about what is not in the document. The things that are missing from the budget make me very concerned for the people living regions such as mine. Third, we will, of course, be speaking about the Liberals' management approach, the Liberal way of piling deficit upon deficit.

During the election campaign, the Prime Minister clearly stated what he thinks of small and medium-sized enterprises. He said, “small businesses are actually just ways for wealthier Canadians to save on their taxes.”

We know why he said that. He said it because he himself has used small and medium-sized businesses to pay less income tax. During the election campaign, I wondered why he knew that. The Prime Minister created four SMEs in order to avoid paying income tax. I want to give him the benefit of the doubt. He does not know what a real SME is. In a region such as mine, an SME is a small manufacturing operation.

It is a small business that employs 5, 10, 50, or 60 people. It gives people work and creates wealth, which is good for the entire Canadian economy. That is what an SME is. It is not some kind of subterfuge on the part of a prime minister. It is something real.

For years, the mining industry was part of my riding. We had one company. We were a one-industry town. Today, all the mines are closed down. How do we survive? Because of SMEs. Unfortunately, they have been forgotten in the Liberal government's budget.

I will now sketch the profile of an SME based on an analysis done by the Canadian Federation of Independent Business. Some seem to think that the owners of SMEs are rolling in money, but the reality is quite different. Data obtained by Statistics Canada, the CFIB, and other sources show that the vast majority of entrepreneurs are members of the middle class. What a surprise. One-third of business owners earn less than $33,000 a year, and two-thirds earn less than $73,000 a year. In fact, 41% of business owners work more than 50 hours per week. There are far more earning under $40,000 a year than earning $250,000. The ratio is four to one. Are these the rich people described by the Prime Minister in the election campaign? Not at all.

The budget is a direct attack on small and medium-sized businesses, and thus on the middle class. The owners of SMEs in our regions are middle-class people. The Liberals have decided to keep the tax rate for small business at 10.5% instead of lowering it to 9%, as was anticipated. They had promised to reduce it. The president of the Canadian Federation of Independent Business said:

In its platform, in a written letter to CFIB members, and in campaign stops across the country, the new government promised to reduce the small business corporate tax rate to nine per cent by 2019. That promise was broken today as it announced the rate will remain at 10.5 per cent after 2016.

Another promise broken. What is more, the Liberals have also put an end to the credit for hiring. Overall, the Liberal budget will cost Canadian SMEs more than $2 billion.

I mentioned earlier that SME owners are not rich and are for the most part members of the middle class. That means a new bill for $2 billion foisted on the middle class. Budget 2016 raises corporate tax and hence the tax on the middle class.

I cannot speak much about agriculture, as there is nothing on it in the budget. There are not even any measures to help those farmers who are faced with a serious crisis and are losing thousands of dollars every month because of imports of diafiltered milk. I will not speak about this, but I hope that the government will do more than just talk about it. The Liberals said they would talk about it, and we want them to take action since they know the solution. I hope that they will act now.

Finally, on the deficit, I am not the one who will be talking. I will let my constituents do the talking. I asked some of them the following question: what does it mean to you to know that the government’s budget is going to mean deficits and to not know when fiscal balance will be restored? In fact, with this budget, the Liberals have repealed the law that requires us to have a balanced budget.

This is what one of my constituents said: “It is crucial to reduce the Liberals' too often hare-brained spending and stimulate the economy through loans to SMEs. The SMEs will actually create jobs. First the bills have to be paid. Once everything is paid, we stop getting into debt, or at least run up as little debt as possible. Once there are no more bills to pay, real freedom will start for us. That is real wealth. How much will this cost future generations? We have to live within our means. Either the Liberal team is incompetent or it decided not to tell Canadians the whole truth in order to win the election. In any case, it does not deserve to govern Canadians.”

It is incredible to see the wisdom of our constituents. I had many comments from my constituents, and I could quote many more of them, but my time is passing quickly.

In conclusion, I will say that the budget is not a budget based on sustainable development or in favour of the middle class, but a very average budget of sustainable deficit. That is why I will be voting against Bill C-15.

[Celina Caesar-Chavannes, Liberal, Parliamentary Secretary to the Prime Minister]

Mr. Speaker, I was a small business owner before I had my job as a parliamentarian. I knew tax decreases enabled my business, but what allowed my business to grow and prosper was getting customers through the door.

Through the budget, we have proposed decreasing taxes for middle-class families. We have added a larger tax-free Canada child benefit. We have increased digital infrastructure spending. There is much more in the budget.

Does my colleague not think that the changes we have made and the policies we have put forward in the budget will help middle-income families, many that own small businesses, and will likely help them to grow?

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I am sure that my hon. colleague did everything she could because people working in SMEs work very hard and put in long hours to earn every single penny.

For that reason, our Conservative government decided to lower their taxes so they could grow their business and provide more services to their fellow Canadians.

When money is in the hands of talented entrepreneurs, it yields much more than when it remains in the hands of government.

[Brigitte Sansoucy, NDP, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I would like to thank my colleague for his speech.

As the proud representative of Quebec's agri-food capital, I was especially interested in measures affecting agriculture. I, too, was disappointed to hear the Minister of Agriculture say that the only thing in the budget that could be of interest to agricultural producers was access to the Internet in rural areas. That is of very little concern to them.

I would like my colleague to tell us what he would have liked this budget to do for agriculture.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I would like to thank the member.

First of all, I would have liked to hear that agriculture makes an important contribution to our economy. That would have been a good start because in our regions agriculture is not just a farm and bad odours in the spring. It means jobs and purchases of tractors and supplies. It is the economy of an entire town.

Unfortunately, just like everything else that has to do with Quebec's and Canada's regions, it seems to have been ignored by the government. This budget makes absolutely no mention of it.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, I thank my colleague for his speech. He was elected barely six months ago, but he nonetheless has excellent political experience, having been the mayor of a municipality.

As I believe I told the Minister of Finance yesterday, in Quebec, municipalities are not allowed to post a deficit. They may incur debt when they borrow to engage in development, but they are not allowed to run a deficit.

However, this government, which got itself elected on the promise of a small $10-billion deficit, is now imposing a $30-billion deficit on Canadians.

As a former mayor and city manager who was not allowed to run a deficit, could the hon. member explain the dangers that face Canadians due to a deficit three times higher than what the Liberals promised during the election campaign?

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, when a city in Quebec posts a deficit, the first penny from the following year’s taxes goes toward paying down that debt.

When a deficit is posted, citizens must be taxed in order to pay it down immediately, not in 20 or 30 years. Municipalities know that they cannot use money they do not have to repair streets and do all sorts of things. They cannot post a deficit.

I really appreciate this question, because that surprised me as well. The Liberals got elected saying that they would post a very small deficit, and in the end it turned out to be very big.