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.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 4:50 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Madam Speaker, I want to thank my colleague for a great job on his comments today. My colleague is my next-door neighbour in riding and probably has the honour of having the second-best agricultural riding in the country.

I wonder if he would comment on the lack of support for actual farmers and small businesses in this particular budget?

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 4:55 p.m.

Conservative

John Nater Conservative Perth—Wellington, ON

Madam Speaker, Perth—Wellington is the heartland of Canadian agriculture. We have the most dairy farmers of any riding in the country and some of the most fertile farmland.

It is disappointing that the budget and the Liberal government's Speech from the Throne has all but ignored the importance of Canadian agriculture. However, there is, as I said before, one thing that the Liberal government can do to help Canadian farmers, and that would be to ratify the trans-Pacific partnership.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 4:55 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, I would first like to take this opportunity to send my thoughts to the people of Fort McMurray. A close friend of my husband lives there, and we all watched in terror as this happened, worrying about the well-being of all the people who were fleeing. It is moments like this that remind us to be grateful for all those we hold dear. It is a reminder of the privilege it is to give when the need arises, and to receive when the hard parts of life happen. I thank all those who have given during this painful time.

Today, the House stands to debate Bill C-15. Budgets are about setting priorities and confirming commitments made, and today I want to discuss some serious concerns I have about the budget.

Bill C-15 is 179 pages long. It amends more than 30 statutes and contains another bill, Bill C-12, which is on the Order Paper before the House of Commons. Now, the time of debate has been shortened. A promise of the Liberal government was transparency and openness. The bill before us has multiple complexities, which include repealing an entire act, retroactive legislation changes, and much more. This alone lessens the capacity for focused discussion in the House, and with a shortened timeline, there is less time for discussion of these important issues.

The people of North Island—Powell River have shared with me their concerns with omnibus bills, and with Bill C-15, the government is going in a direction that concerns many Canadians. I hope this is not what real change looks like.

I know that many people in my riding will feel some relief with the child tax benefit. It is a start; however, I also know that many of my constituents are looking for a real child care strategy.

When I travel in my riding, I am sad to hear the stories of many women who have had to leave their work, because they cannot afford day care. They shared with me their concern that they would miss out on opportunities for their careers. One woman said to me that she just wanted to feel she had a choice in the matter. She loves her children, wants to spend meaningful time with them, and wants to have a career that promises a future for her family. However, the budget does not provide any support for the affordability of child care, nor does it address the reality that there are few day care spaces available.

I talk with single parents who are stranded without the supports for the child care they desperately need. More money in their pocket would provide some support, but if there are no child care spaces available, that is not a solution. Canadians are looking for a comprehensive strategy around child care, and the budget before us does not give it to them.

Veterans are also being shortchanged by the lack of mental health support, and there is nothing for suicide prevention. Veterans affairs have been badly mishandled by the past Conservative and Liberal governments. Pensions have been clawed back, and front-line service cuts have increased wait times for help and access to quality home care, while long-term care is shrinking. Soldiers with PTSD face months of delays before even getting referred for help, and even then, that help is hard to get.

A man from my riding, Dan Thomas, came to see me several weeks ago. A retired soldier with severe PTSD, he talked about how invisible he felt with his long-term issues. He shared with me the helplessness of not being able to receive the support he so desperately requires for his day-to-day life. When people serve their country, they should not feel invisible.

Bill C-12 was tabled in the House of Commons on March 24. The way veterans were treated by the previous government was indeed shameful. They deserve to have this legislation that would affect them discussed in the House, and not a unilateral decision by the current government. By killing Bill C-12 and incorporating it in this omnibus bill, the Liberals have chosen not to make space to listen to veterans' grievances and are playing politics.

Opening the service centres is one step, but it is not the only step required. What concerns me is that Bill C-12 largely fails to provide much-needed supports for mental health or increase support for spouses or caregivers of injured veterans.

We owe it to the men and women who have served our country courageously and honourably to ensure a proper study of these benefit changes to make sure they will address the needs of our veterans. We do not want to see veterans continue to be forced to prove that the leg they lost has not grown back.

This omnibus bill should be split up so that the changes to veterans' benefits receive proper study by Parliament. It is important that we serve those people who have served us so well.

After nearly a decade of Conservative economic mismanagement, middle-class families are working harder than ever yet falling further and further behind. At a time when Canada needs a government that will combat rising inequality, the Liberals' first budget is inadequate.

The Liberals are breaking their promise to reduce the tax rate for small and medium-sized enterprises, the biggest job creators in Canada. They are cancelling the legislation that allowed for any subsequent reductions provided in the bill. However, they made a commitment to lower the rate to 9% by 2019. New Democrats have been fighting for a long time for tax cuts for small businesses, which are the real job creators in Canada.

The Liberals have rejected our proposals to cap transaction fees for credit cards, and are doing nothing to facilitate the transfer of family businesses between generations. This is a direct betrayal of small business owners and will significantly reduce job creation in Canada. The parliamentary budget officer estimates that this cancellation would cost SMEs more than $2.1 billion over the next four years. Meanwhile, consecutive Liberal and Conservative governments have given massive tax giveaways to Canada's most profitable corporations. The Liberals should keep their promise to small businesses by withdrawing the proposal to cancel legislated reductions in the small business tax rate.

More than a quarter of seniors are living in poverty, and some Canadians are wondering whether they will have a secure income when they retire. We welcome the Liberals' recommitment to returning the age of eligibility for old age security and the guaranteed income supplement to 65. We also welcome their recommitment to increase the GIS for single seniors. However, we are disappointed that seniors have to wait until July, despite the Liberals' promise to help them immediately.

This is a useful start, but more can be done. Increasing the GIS by 10% for all seniors would lift nearly 150,000 additional people out of poverty. Income data shows that the median income for single seniors without employer pension income is below $20,000. With the low income measure for a single senior at $22,000 per year, this is unacceptable. I can tell members that there are many seniors in my riding who are living well below $20,000 a year. I have seniors in my riding who, in January, debate whether to purchase medication or keep their heat on. That is not a good debate for seniors who have worked so hard to create this beautiful country we have. These changes should be closely studied to see how we can improve them to help even more seniors, not pushed through in an omnibus bill. The government needs to keep its promise to immediately enhance the CPP.

Last week in this House I spoke to Bill C-14, medical assistance in dying. The bill refers to palliative care in its preamble, yet while introducing this bill the government made no new commitments to palliative care. We have a critically important opportunity to enhance services across the country, yet the government was missing in action on palliative care in the budget, even after promising $3 billion for home care during the campaign. Holding the government to account on the promise of that motion remains one of our top priorities as we assist in the legislative response to the Carter decision.

In my riding, there are many seniors. Home care and palliative care are of huge concern. Seniors living in remote communities want to hear from the government that they matter, that staying in their home is a priority. Many constituents have shared stories of feeling pushed to leave not only their home but their community for health concerns. Accessible services in my remote communities are important.

I cannot support this budget. It does not fulfill the promises made to Canadians. It has some positive steps, but leaves out too many key concerns that would make the lives of my constituents better. Whether it be actual dollars or respecting the process, this budget fails to follow through.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:05 p.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, I do find it unfortunate that the member concluded her remarks by saying that she is not going to be supporting the budget implementation bill.

She should be very much aware that this is a progressive budget that would really have a profoundly positive impact on Canadians from every region of the country. We can talk about the Canada child benefit program, which would literally lift hundreds of thousands of children out of poverty. We can talk about the middle-class tax break, which would save hundreds of millions of dollars, or put those hundreds of millions of dollars into the pockets of Canadians.

With those two initiatives alone, what we would do is increase disposable income. In other words, we would provide customers for small businesses in every region of the country.

We would invest in infrastructure. We would invest in our seniors through the guaranteed income supplement.

My question for the member is this. Would she not recognize that this is in fact one of the most progressive pieces of legislation enabling our middle class that we have seen in the last decade?

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:05 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, just saying something is progressive does not make it so.

The reality is that we are the progressive opposition, and we are here to remind the government that middle class does not start at $45,000 a year. There are people in my riding who are surviving every single day on less than $20,000. They are fighting every single day to survive.

It is very disrespectful to not look at their needs and make sure we are there for them when they need us. The government must do better.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:05 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Madam Speaker, I want to reference, just for a minute, the member for Winnipeg North and his comments from earlier today when he said that this budget is largely a fulfillment of the Liberal platform.

It was funny enough to listen to him, but what was really sad was to see that he actually kept a straight face while he was saying that. We know that the small deficit the Liberals promised of $10 billion, the small business tax reduction, and the promise of palliative care, none of these are in the budget.

I want to ask a question for my colleague. I thank her for highlighting the need for improved palliative care, especially in light of the current conversation around physician-assisted suicide. How are the member's constituents responding to her in terms of the lack of palliative care, when at the same time we are talking about actually offering, to patients who request it, physician-assisted dying, where there is no palliative care available? Where is the choice?

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:05 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, I share the concern that there is not adequate palliative care.

We know we have an aging population. We know we need to plan for a future when people are going to be facing multiple challenges.

We need to see an investment in home care, so we can keep people in their homes and keep them healthy and strong as long as we can. We need to make sure that, when the time comes, the services are there. When the time comes that anybody has to make a decision for themselves, I hope we have the services that are adequate to do it in a respectful way.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:05 p.m.

NDP

Linda Duncan NDP Edmonton Strathcona, AB

Madam Speaker, I could certainly echo the same concerns with this budget from my riding.

I put the question to the Liberals. I put the question to the Conservatives. I am wondering if she would like to respond to it. Even the IMF thinks that the progressive thing to do is to invest more in child care so that women can enter the workforce and increase productivity.

Would the member like to speak to what the IMF is calling on the government to do?

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:10 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, absolutely, I feel we need to have a strategy around child care across this country.

I believe the federal government should be taking leadership and working with its counterparts in the provinces and territories to make a strategy that makes sense.

The reality is that affordable child care makes a difference. It means women can afford to go back to work, or to have the opportunity to grow their own business. I know that, for the women in my riding, it would mean a real opportunity.

I also think it is important to remember that it is often women who make this sacrifice. It is a wonderful thing. I myself stayed home with my children for the first seven years. It was a huge gift to me and my family, and we struggled for it, but it was something I really felt was important. However, this is the point, as the member said. In my riding they need to feel they have a choice. Affordable child care gives families a choice.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:10 p.m.

Conservative

Robert Gordon Kitchen Conservative Souris—Moose Mountain, SK

Madam Speaker, I rise today to speak to the budget implementation and the government's objective to diminish private economic activity through the reckless spending of public money.

Before I get there, permit me to provide a bit of information on the province I call home, as it seems from this budget that both the Minister of Employment and the Minister of Finance appear to be unfamiliar with where and what Saskatchewan is.

Saskatchewan is a landlocked province. It represents 7% of the land mass of Canada and has 10% of its fresh water. Saskatchewan is a cartographer's delight, as its borders are all parallels and meridians. There are two major natural regions, the Canadian Shield in the north, and the Interior Plains in the south. We have over 11% of the rail network, and the largest network of secondary roads in Canada.

In Saskatchewan, we are mighty familiar with sunny ways, as we receive more hours of sunshine per year than any other province. We also understand the deception, that sunny ways does not necessarily mean warmth. Some people think our winters can be bitterly cold.

With 3% of Canada's population, Saskatchewan contributes 4.5% to the GDP. Our GDP per capita contribution is $28,000 more than Quebec, which has seven times our population. Since 2007, we have also become a net contributor to the equalization scheme. Despite the provincial economy that is experiencing challenges due to decreases in world oil prices, we are forecast to contribute a further $1.7 billion, or 10% of equalization transfers for our fellow Canadians to the east.

In Saskatchewan, we have a very diversified economy, much of which was not recognized in the borrow-and-spend budget. Saskatchewan is often referred to as the bread basket, due to its producing 47% of the wheat grown in Canada. Along with peas, soybeans, lentils, flax, barley and canola, Saskatchewan is able to contribute to feeding both Canadians and the world through exporting these crops. These farms are small businesses, which the budget betrays by not reducing the small business taxes promised by the Liberals during the election.

Beyond its size, the agriculture industry in Saskatchewan has actively participated in modern agriculture techniques that are highly technologically advanced; help produce larger, more nutrient-rich crops; help maintain soil conditions; and help sequester greenhouse gas emissions like C02, methane, and nitrous oxide.

Modern farming techniques contribute to a dichotomy between the ability to feed vast numbers of people, thereby reducing starvation, and the role of food production as carbon sinks in climate mitigation. Agricultural producers in Saskatchewan are very cognizant of the negatives of natural and man-made CO2, and continue to work diligently to adopt zero tillage, organic farming practices, and the development of crops that require less water to grow.

In place of flying in jets to hobnob with environmentalists from around the world and promising to reduce emissions by government fiat, Saskatchewan's agriculture producers are taking a proactive role in reducing emissions through their actions.

In Saskatchewan, we work hard to both provide economic activity and to ensure that we are stewards of the land and resources.

In my riding of Souris—Moose Mountain, we have over 300 years of proven coal reserves. We use this coal to generate electricity, which meets 50% of Saskatchewan's electricity requirements.

While the government wants to shut down the coal industry because it is dirty and pollutes the environment, in Saskatchewan we came up with a less radical plan. Rather than shutting down the coal plants, losing millions of dollars of economic activity, and throwing thousands of people out of work, we instead invested $1.4 billion in an innovative carbon capture project, to which the previous Conservative government contributed $250 million.

The carbon capture project cleans the CO2 particulates produced from using coal for electrical power. While this continued use of fossil fuels is an anathema to environmentalists, the project at Boundary Dam is designed to remove the equivalent of pollution emitted by 250,000 automobiles per year. In fact, in the month of March 2016, over 83,000 tonnes of CO2 were captured, the equivalent of 700 cars per day being off the road.

The CO2 is sold to an oil company which uses it to stimulate oil and gas wells to improve its productivity while reducing the use of chemicals and water, which are also used to stimulate oil production. It is also sequestered miles underground.

This is technology that can be used around the world for coal generation plants that continue to meet the needs of electricity requirements of more than 50% of the world's population. This is innovation. This is infrastructure. This is green technology. This creates jobs.

Carbon capture is not a perfect system, but we take a measured approach in Saskatchewan. This is proving to be a less disruptive solution to reducing C02 emissions than simply shutting coal-powered generation facilities with nothing to replace that source of electricity.

I am sure that those who believe that The Flintstones is a documentary, and who continue to burn fossil fuels to attend conferences around the world to discuss how to shut down the fossil fuel industry, are appalled by this approach. However, it sure beats their alternative of economic disruption, massive unemployment, and, as has been experienced in Ontario, huge increases in electricity costs. This will harm businesses and individuals by increasing the energy costs by over 70% in the next 10 years.

The Liberals talk a good game about growing the economy and environmental protection. In my riding, we also produce lots of oil. Moosomin, Saskatchewan is the proposed jumping off point for the proposed energy east pipeline to transport oil produced in Saskatchewan, North Dakota, and Alberta across Canada to refineries and ports in the Atlantic provinces. This would remove millions of barrels of oil from being transported by rail across the country and through communities. The government response to this huge influx of private capital into infrastructure has been to dither and delay.

The government provided nothing in the budget for a proposal from a resident in my riding, which was supported by Premier Wall, to engage out-of-work oil workers in oil sites reclamation projects. Instead, the Prime Minister came to Saskatchewan and told us that we should be happy that the downturn in energy prices has not hit us harder. I am not sure how to explain that to an oil field services company that has had to lay off 22 of its 26 employees. There are no job-creating strategies within this budget.

While an American oil company proceeds with building a 50,000 barrel-per-day refinery in North Dakota, a few miles south of my riding, we study and delay $15 billion of private money to expand a transportation system for Canadian-produced oil. I am not sure why sunny ways should make us glad that our biggest competitor in the oil industry in North America generates employment and economic activity while we equivocate and utter meaningless bromides.

Over the past 40 years, a fairly consistent cycle of activity has been followed in the oil fields in southeast Saskatchewan. Oil workers stop work for two to three months in the spring while the land thaws. Some of these workers take up part-time work in the agriculture sector during seeding, or apply for employment insurance while they wait for work in the oil industry to resume. With the changes in the oil industry and lack of encouragement for the industry by the government, instead of applying for employment insurance, these oil workers are simply giving up. Again, I am not sure why we should be glad in Saskatchewan that the government has no idea where the oil field is and refuses to extend, by a few weeks, the access to employment insurance in the oil fields of southeast Saskatchewan.

Saskatchewan is a province that is very dependent upon the export of our products and services. The TPP agreement, entered into with 12 other Pacific countries, provides an opportunity for ranchers, architects, manufacturers, food producers, education and health workers, and all the other sectors of Saskatchewan's diverse economy, to have access to wider markets. Removing tariffs on cattle, canola, honey and other agriculture products, and allowing for the unimpeded movement of professionals, is nothing but great for the Saskatchewan economy. The positive impact of this agreement was ignored in the budget, and the government seems to be sending signals that it is unsure if it wants to participate with countries representing 40% of the world's trade.

In conclusion, Saskatchewan is an important contributor to the well-being of the Canadian economy. We have a way of life that allows individuals and communities to grow, to contribute to the image of Canadians all around the world as fair-minded, honest, and law-abiding people. The indifference of the Prime Minister to the challenges of those employed in the fossil fuel industry, the uncertainty of the government's actions with respect to privately funded national infrastructure programs, and the lack of commitment in supporting free trade agreements is causing concern among the many industries and communities in Saskatchewan. They are being left with an impression that the federal government is more intent on attacking the way of life we have developed than in providing support, leadership, and a commitment to improving the function and future of our community.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:20 p.m.

Liberal

Julie Dabrusin Liberal Toronto—Danforth, ON

Madam Speaker, I find it interesting to hear what my friends say from other regions across the country. It gives me different perspectives to learn about. I was particularly interested in what the member raised about farming and organic farming, and the steps that are being taken in Saskatchewan to support sustainable agriculture. I am wondering if he could perhaps share a bit more, as he kind of glanced over it. I would love to hear his thoughts about how making investments in green technologies and in science to support having sustainable agriculture may assist people in Saskatchewan.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:20 p.m.

Conservative

Robert Gordon Kitchen Conservative Souris—Moose Mountain, SK

Madam Speaker, as I mentioned, the backbone in Saskatchewan and in my riding is the agriculture industry. It sustains and keeps things surviving. Right now, we are hurting in our province because of the downturn of the oil industry.

However, our agriculture industry has advanced in learning agriculture practices of reducing tillage, moving crops around so we can put nitrogens, etc., back into the earth, and using products that use less water to sustain the industry. These farmers need a market to move that to, because I am in a part of the world where we have to export everything.

For so long in Saskatchewan, and in my riding, we have been exporting our people. We have exports of agriculture, canola, oil, and potash. We need to be able to export and to move all of those things, whether by road or by rail, because we are not flying it out of there. As the agriculture industry produces greater crops, it needs a market to move them to.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:20 p.m.

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Madam Speaker, my honourable colleague used the term of fair, honest, and law-abiding people to describe working people in that constituency. That term describes working-class Canadians all over Canada. It also underscores the point that in the last 30 years, workers in Canada have contributed to an economic growth of over 50%.

Now we are seeing that these are the people who are struggling. We have higher debt loads per household. We have people who have retirement insecurity. We have people who are retiring with no dignity. We have workers who cannot afford child care. It seems that we have this section of our society that is turning all of the gears for a healthy economy being eroded.

We have talked about that before in a partisan way, so my question for the member is actually this. Who do you think the members of the middle class are who are being addressed in this budget?

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:20 p.m.

The Assistant Deputy Speaker Carol Hughes

I just want to remind the member to address questions to the Chair as opposed to individual members.

The member for Souris—Moose Mountain would like to respond.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:25 p.m.

Conservative

Robert Gordon Kitchen Conservative Souris—Moose Mountain, SK

Madam Speaker, I often ask that same question. Who does the current government think the middle class is, and where is the government setting its priorities?

In Saskatchewan and in my riding, we have people in various walks of life, those who have nothing because the oil industry has taken them out of a well-paying job. They are trying to survive and to keep their families together in an area instead of moving away. We are seeing members of our middle class who are losing their jobs because this budget provides no indication of any jobs that will be created.

Before, our previous Conservative government reduced our taxes to the lowest they have been in 50 years. That allowed people to have more money in their pockets and to sustain the lifestyle that we would like to see for all Canadians.