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

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-15s:

C-15 (2022) Law Appropriation Act No. 5, 2021-22
C-15 (2020) Law United Nations Declaration on the Rights of Indigenous Peoples Act
C-15 (2020) Law Canada Emergency Student Benefit Act
C-15 (2013) Law Northwest Territories Devolution Act
C-15 (2011) Law Strengthening Military Justice in the Defence of Canada Act
C-15 (2010) Nuclear Liability and Compensation Act

Votes

June 13, 2016 Passed That the Bill be now read a third time and do pass.
June 8, 2016 Passed That Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 8, 2016 Failed
June 8, 2016 Failed
June 8, 2016 Failed
May 10, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 10, 2016 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, since the bill does not support the principles of lower taxes, balanced budgets and job creation, exemplified by, among other things, repealing the Federal Balanced Budget Act.”.
May 10, 2016 Passed That, in relation to Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 11:50 a.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, I would like to thank my colleague from Saint-Hyacinthe—Bagot for her question and her excellent comments. We completely agree that the government could have gone a lot farther.

Tax havens are the elephant in the room. The poor, the middle class, and even the upper middle class do not have a lot of breathing room. They are paying more and more and receiving fewer and fewer services. Money is getting tighter and tighter for some of these people, while special rules apply only to the wealthiest 1% or even 0.1%, who are ragging the puck, as they say.

That needs to change. It is not fair. The government could do a lot more. For example, Canadians who are eligible for the guaranteed income supplement should receive it automatically.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 11:55 a.m.

Liberal

Yves Robillard Liberal Marc-Aurèle-Fortin, QC

Mr. Speaker, although the budget was tabled in March, I rise today in the House to add my voice to those who have already praised it.

I would like to start by taking a moment to once again thank the people of Marc-Aurèle-Fortin, who put their trust in me. As I rise today, I am well aware that because of them, I have the privilege of representing them here in the House. Like all of my fellow MPs, I worked diligently and tirelessly in my riding to earn my seat here in the House. Of course, I did not take this long journey alone, and I had the help of many absolutely wonderful people. First and foremost, I got into politics because I am motivated by my constituents, who make me so proud and energize me. I am committed to helping them and representing them.

During my very first speech in the House, I said that my riding, Marc-Aurèle-Fortin, was enriched by its people. I was blessed to witness these riches myself when I had the pleasure of being invited back home to Laval to celebrate the noteworthy birthdays of two vivacious women in my riding. These young centenarians are living proof of the essence and spirit of Marc-Aurèle-Fortin, and their smiles are still contagious at 101 and 102 years old.

The Prime Minister and the government are committed to improving the quality of life for seniors, such as these two illustrious ladies from my riding who have seen this country grow through the years. Earlier this year, my hon. colleague, the member for Yukon, mentioned that one grades the success and efficiency of a country by how it treats its most vulnerable.

The government's budget helps build our society brick by brick. We are working on making our society one that looks after our seniors and the most vulnerable.

We should keep in mind the following Greek proverb: “A society grows great when old men plant trees whose shade they know they shall never sit in.” It is right and just. However, we can provide our mothers and fathers with the support they deserve. It is imperative that we treat our seniors with dignity and respect, as that is what everyone deserves.

Our government believes that this requires more than just talk, and that is why we are opting for real measures. For example, speaking of seniors' dignity, I would remind the House that the government, under the leadership of the Prime Minister, made a commitment in budget 2016 to return the eligibility age for old age security and the guaranteed income supplement to 65 rather than leaving it at 67. The previous government had increased the eligibility age from 65 to 67. Because of this shameful and prejudicial measure, our seniors, the oldest and most vulnerable members of our society were going to be hit hard and could have lost up to $28,000.

Today, the government, under the Prime Minister's leadership, has a different and forward-looking vision, one that also puts seniors at the centre of these priorities. Instead of taking away money they earned after contributing to the community for years, our budget 2016 will return the eligibility age for old age security and the guaranteed income supplement to 65.

Our government pledged to provide seniors with a secure, dignified retirement. This measure will give Canadians thousands of dollars once they become seniors. We will also increase the guaranteed income supplement by $947 per year for the most vulnerable seniors living alone. That is nearly $1,000 that will go directly into the pockets of the most vulnerable, who were, unfortunately, the first to be forgotten in the past. This measure amounts to over $670 million per year and will improve the financial security of 900,000 seniors living alone across Canada.

Nine hundred thousand seniors in Laval, in Marc-Aurèle-Fortin, and all over Canada can count on the federal government, which cares about their well-being. This government will uphold its end of the social contract stating that people who have made a life-long, honourable contribution to society should be able to relax and enjoy their golden years without constantly worrying about ending up penniless.

My colleagues and I and everyone working every day on the Hill have been pleased to see the nice weather and the return of spring and warmer days. We cannot look out at the green lawn in front of Parliament without seeing young people gathering together and having a nice time. Those young people who come out in the nice weather to the seat of Canadian democracy are part of that contract. They look forward to working and contributing to our society. We must respect their future and respect our seniors who once upon a time were the young people spending time in front of this place. We must assure these people that they will not have to be concerned about not having enough money. We must give them hope and peace of mind in their old age. When they come back to visit their Parliament, these older men and women who used to come and play here should not come back feeling bitter about this place, but feeling joyful and grateful.

For the young people and seniors of the past, present, and future, our society has to head in that direction. That is what our government promised, and thanks to budget 2016, we can proclaim loud and clear that our government took action.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / noon

Conservative

Dianne Lynn Watts Conservative South Surrey—White Rock, BC

Mr. Speaker, the member wants accurate information, and he knows that the previous Conservative government did not raise the age to 67. In fact, that was going to be implemented in 2020. I know he wants to ensure that is correct information.

The member mentioned very eloquently the trust of his constituents and how they and Canadians across the country have given him trust. I want to ask the member if he can comment on how his constituents feel about there having been a promise during the election of a $10-billion deficit and that it is now three times that amount with no plan for a balanced budget.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / noon

Liberal

Yves Robillard Liberal Marc-Aurèle-Fortin, QC

Mr. Speaker, I need not answer that question because the budget is clear: we are here for our seniors.

I can assure hon. members that in my riding every senior will benefit from this very logical and well-received measure.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

The Deputy Speaker Bruce Stanton

It seems that the interpretation was not working there.

Could the hon. member for Marc-Aurèle-Fortin repeat the last 30 seconds of his comments?

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

Liberal

Yves Robillard Liberal Marc-Aurèle-Fortin, QC

Mr. Speaker, I was saying that naturally, contrary to what members across the way think, the seniors in Marc-Aurèle-Fortin are very happy with the measures that our government is putting in place. They will benefit all seniors throughout Canada and not just those in Marc-Aurèle-Fortin.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Speaker, I thank my colleague for his speech in the House today.

In his remarks, he talked about the budget and the importance of supporting seniors and young people. However, the budget tabled by the Liberal government makes no mention whatsoever of agriculture, and yet we all know how important agriculture is to the Canadian economy.

The previous Conservative government had promised funding, specifically $4.3 billion in compensation for the dairy and poultry industries in light of certain trade agreements. This compensation is really important.

However, the budget tabled by the Liberal government makes no mention whatsoever of agriculture or compensation for those industries.

I would like the member for Marc-Aurèle-Fortin to comment on that.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

Liberal

Yves Robillard Liberal Marc-Aurèle-Fortin, QC

Mr. Speaker, I thank my colleague for her question.

My speech this morning was really about seniors all across Canada. This does not mean that I do not support measures for farmers and measures in other areas.

Today I simply wanted to emphasize the support that we are providing to our seniors. This measure represents an investment of over $670 million a year. It will improve the financial security of about 900,000 seniors across Canada and lift 13,000 seniors out of poverty.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Mr. Speaker, there is a reason why my hon. colleague across the floor does not want to answer that and wants to focus on the seniors. Again, he did not answer my hon. colleague about the agriculture.

Another string of broken promises is what we are seeing with the Liberal government. The Liberals campaigned on following through with what our Conservative government laid the groundwork for, lowering small business tax to 9%, and indeed, when they got into power, they decided they would keep it at 10.5%.

My question is this. Why is the government so keyed in on punishing small business? The parliamentary budget officer just tabled a report that this would cost millions in GDP and thousands of jobs throughout Canada. The Liberals are negligent toward small business, and I am wondering why they are punishing small business owners.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

Liberal

Yves Robillard Liberal Marc-Aurèle-Fortin, QC

Mr. Speaker, I thank the member for his question.

It is important to understand that not only has the Minister of Finance often talked about it, but it is also included in the budget. I would ask the members to reread the budget. Maybe then they will change their minds and support it.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:05 p.m.

Conservative

John Brassard Conservative Barrie—Innisfil, ON

Mr. Speaker, it gives me great pleasure to rise today to speak to the bill. I have spoken on the budget in the past, but the budget implementation act is something that I am going to address right now.

I will say at the onset that one of the things that came out of the last election was the fact that all Canadians have a voice in this place. Every single member, all 338 of us, we have the opportunity to use our voices to speak on behalf of our constituents.

Not being a part of the previous government, I understand that there were some procedural manoeuvres that were made, but the fact that the Liberals today have invoked closure on this debate has caused me, as the representative for Barrie—Innisfil, great concern.

As a new member of Parliament, I go back to something that the hon. member for Barrie—Springwater—Oro-Medonte said this morning, and it relates to the throne speech. I think it is worth repeating at the outset of my comments that, in the throne speech, the Liberals stated that:

In this Parliament, all members will be honoured, respected and heard, wherever they sit. For here, in these chambers, the voices of all Canadians matter.

Let us not forget, however, that Canadians have been clear and unambiguous in their desire for real change. Canadians want their government to do different things, and to do things differently....

Through careful consideration and respectful conduct, the Government can meet these challenges, and all others brought before it.

By working together in the service of all Canadians, the Government can make real change happen.

Well, what hypocrisy that today, a lot like in the medically assisted dying debate, the Liberals would invoke closure and not allow Canadians to have a voice on this and the previous bill. I am fortunate to be able to rise on behalf of my constituents, as I was not given the opportunity to speak on medically assisted dying because of that debate being closed.

I want to focus, in the short time I have, on three things. One is what I referred to, in previous comments I have made in the House, as the middle-class tax fraud, or the reduction of the middle class in terms of tax implementation; the shell game that the Liberals are playing. I want to use some very specific examples of that.

The second thing is the innovation sector. I want to speak specifically on that, given the fact that Startup Canada was here last week and I had some very productive meetings, as did my colleagues. I want to speak on behalf of the innovation sector.

The third thing, if I have time, is infrastructure.

As it relates to the middle-class tax fraud, what we are seeing in the budget is that what the Liberals give, the Liberals take back. I use the example of the child care benefit. I would classify a firefighter and a nurse with a combined income of roughly $180,000 as middle class in this country. They actually would be worse off because of the child care benefit. In fact, under the Conservative plan, that same firefighter and nurse would have received almost $240 a month, but under the current Liberal plan, they would only receive $112 a month. In fact, those we could classify as middle-class Canadians would actually be worse off. Granted, there would be some Canadians who were better off, but I think the majority of Canadians, or a large part of Canadians, would actually see less.

What is also disturbing with this shell game that the Liberals are playing with the budget is that we have heard the talking points, we have heard the Minister of Finance stand up in this House and talk about nine million Canadians and all of the rhetoric that goes with it, but there are certain facts in the budget that prove that this is a middle-class tax fraud.

The fact is that the fitness tax credit would be removed. Since 2006, Canadians have benefited to the tune of $1.13 billion in tax relief. Since 2011, there was the arts and activity tax credit, from which Canadians have benefited to the extent of $190 million; and income splitting would be gone for Canadians, at $2,000 a year. As I said earlier, what the Liberals give, the Liberals take back.

What are middle-class Canadians getting for that in this shell game? They are getting burdened with deficit and debt, not unlike my home province of Ontario. We are seeing services cut and taxes go up, and it is just an inevitability.

I know that the finance minister and the Prime Minister have stood up and said that now is the time to invest in infrastructure, and saddle on some burden and debt. There is never a good time for that. In fact, when I was in Washington recently at the National Governors Association conference, some of the top economists in that country were talking about a pending recession.

They were saying that we are actually six years into what is normally a five-year cycle for recession. When that happens, and when we are being crippled with debt, it is going to be awfully difficult, if we do enter into that recession—and this is why governments need to plan ahead—to do what we need to do to take care of the most vulnerable in our country, including many within the middle class.

Last week, as I mentioned earlier, Startup Canada was in town. Many of us in this chamber actually met with them. I had the opportunity to meet with the person I would consider is one of the brightest micro-entrepreneurs in this country, Chad Ballantyne, and his wife, Sandra. They talked a lot about the innovation agenda.

I asked Chad, if he had a couple of minutes to speak to Canadians, what he would say to them. Chad wrote me a long email, and I would like to share some of what Chad said. He said:

[The] Prime Minister...charged his leadership to “develop an Innovation Agenda that includes: expanding effective support for incubators, accelerators… These investments will target key growth sectors where Canada has the ability to attract investment or grow export-oriented companies.”

Startup Canada would merit a seat at the table when the advisory council for the innovation agenda is established. Startup Canada, with its vision of an innovation nation, has in place the only nationwide network to support, nurture, and educate entrepreneurs as they launch and build their companies.

Startup communities, like ours in Barrie, Ontario, are the connective tissue bringing together the entire entrepreneurship community, ensuring the healthy functioning and optimization of an economic and social ecosystem supporting every entrepreneur.

Startup also feels that an innovation agenda should include the entire startup ecosystem and ensure that it does not become too narrowly focused. The agenda proposes pouring investment into a handful of clusters. This is too narrow a focus, and limits the investment opportunity to only later-stage enterprises and R and D tech sectors, and ignores the early-stage startups in service-based companies, which are the foundation of our economic engine in Canada.

There is little, if any, funding for these communities in this budget, and companies that are post R and D, despite their sector focus, recommend to fund innovation throughout the entire ecosystem and support the more than 150,000 people who are a part of micro-entrepreneurs, the startup communities in this country.

Last, on the issue of infrastructure, I know a lot has been said with respect to infrastructure. I said this earlier, when I was speaking on the budget, and we heard it earlier today from the Bloc Québécois member. The easiest way to make sure that infrastructure money flows out that door is to do something with the gas tax, either double it or triple it.

The Liberals have put billions toward infrastructure. One of the things they said during the campaign was that infrastructure was not effectively a Liberal issue, a Conservative issue, or an NDP issue; it was a Canadian issue. The purest, fairest, and simplest way, in order to ensure that communities across this country get what they need in terms of infrastructure with criteria that are already in place, is to make sure we use the gas tax formula as a means to do it.

Over the last couple of weeks and months, we have been seeing a lot of announcements by the Liberal Party in Liberal-held ridings. We need to make sure the money gets to communities that need it. It does not matter whether it is Cariboo—Prince George, Nanaimo—Ladysmith, or Barrie—Innisfil; there is a need across this country, and using the gas tax formula to provide infrastructure funding, to me as a former city councillor, is the purest and only way to ensure fairness and transferability in that system.

In the past, the member for Spadina—Fort York has said that municipalities have used the gas tax funding to decrease taxes in their municipalities. I have not seen any evidence of that at all.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:20 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, in addressing the budget, the member brought up the really important issue of investing in Canada's infrastructure. He made reference to his previous role as a councillor. I agree it is important to recognize that Canada has a great deal of infrastructure that needs to be worked on and improved. That is why we will find that not only does the budget have the largest amount of money being allocated toward infrastructure but we are looking at investing today in Canada's infrastructure.

The member understands the importance of getting the money to the different communities. I am sure he would agree that by investing in Canada's infrastructure we are, in essence, building a healthier and more robust economy, because often infrastructure feeds into economic activity in creating opportunities for Canada's middle class and beyond.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:20 p.m.

Conservative

John Brassard Conservative Barrie—Innisfil, ON

Mr. Speaker, when we look at the budget and the deficit that is being created, a lot of it goes to ongoing programs. Again, it comes back to the shell game.

As a former city councillor, I can speak to the infrastructure deficit. I was chair of the infrastructure committee, so I know full well what the infrastructure deficit was in the city of Barrie, and it kept growing every year. There is no question that an infrastructure investment is required. In fact, the previous government made significant infrastructure investments.

What I am talking about is not politicizing the fact that these infrastructure investments need to be made in communities. There is only one way to not politicize that, and that is to use the gas tax formula.

For example, the City of Barrie receives $1.8 million a year in gas tax money. If we doubled or even tripled that, it could improve the transit system in my city by being able to purchase six buses. It does not politicize the process. It gets the money to where it needs to go so that all of Canada can benefit from infrastructure investments, not just Liberal ridings.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:20 p.m.

Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, I want to thank my colleague for the hard work he is doing in terms of industry and innovation.

In his speech he talked about another program that is being impacted by the budget bill. That is the children's fitness tax credit. I remember when the previous government brought in that tax credit in 2006. It was a huge benefit to my wife and me. We had a child in hockey, a daughter in volleyball, and another daughter in dance. I know how much that children's fitness tax credit meant to us as a low middle-income family.

As I was going around my riding this past election telling constituents that not only would we protect the children's fitness tax credit but we would double it to $1,000 per child, the feedback I got was overwhelming. It was absolutely phenomenal how many people were in support of that, how many people took advantage of it, and how important they felt it was to ensure that their kids remained healthy and active and could participate in some of these programs.

This is a program that benefited every single Canadian family with children. I would like to ask my colleague what he feels the impact is going to be on Canadian families and our children by eliminating the children's fitness tax credit.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 10th, 2016 / 12:20 p.m.

Conservative

John Brassard Conservative Barrie—Innisfil, ON

Mr. Speaker, my family is the epitome of a middle-class family. I have four kids and a beautiful wife. All of them have been active in sports. We have, as a middle-class family, used that fitness tax credit to our advantage. In the overall scheme of things, it may not have been much, maybe a $150 tax credit, but multiply that by four children and that meant $600 in tax relief for my family.

As I said in my presentation, the fitness tax credit since 2006 has benefited Canadian families to the tune of $1.13 billion. That is $1.13 billion that those families have been able to use to put their kids in sports.

From a fitness and health standpoint, we as members of Parliament should be encouraging families, not discouraging them by taking away these types of credits to put their kids into physical activities, because that physical activity helps in the overall health and wellness of the children of our country.