Bill C-15 (Historical)

Budget Implementation Act, 2016, No. 1.

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

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

Budget Implementation Act, 2016, No. 1

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, I have heard from many constituents since the government tabled this budget. During break weeks, I have had the opportunity to meet with them. I can say that there is a growing concern with the complete lack of leadership being provided by the Prime Minister and the government, combined with the speed with which they have abandoned many of their election promises and an unwillingness to admit the fact of inheriting a surplus.

It would appear that everyone except the Liberal government understands that sooner or later deficits have to be paid back.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Mr. Speaker, the member for Guelph raised some interesting points. He is a nice fellow. I sit on the industry committee with him, and I like him enough to tell him that he is wrong.

I wonder if the member from Saskatchewan could give us a little more insight on the financial statements the member for Guelph was talking about. I am afraid that, at the end of this fiscal year, we are going to have a big addendum on the massive Liberal spending in the final quarter of this fiscal year. Maybe the Liberals would like to table a budget that shows what it would have been if the Conservatives had been still in government and what the financials look like with the Liberals now in government.

I wonder if she would talk about the Conservatives' balanced budget with a surplus and the Liberals' massive spending deficit.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, very simply put, our financial statements are based on the fiscal year and not the calendar year, so the statements we are referring do refer to the end of the fiscal year.

[An hon. member]

With a surplus.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

With a surplus, Mr. Speaker.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I will be on extra good behaviour. I have a pair of eyes looking down on me today belonging to an eight-month-old.

Epiphany is on January 6. I only had my epiphany this week. I actually figured it out. I figured out that the balanced budget promises and the small deficits that the Liberals are proposing, and have proposed in the past, are a work of fiction.

The budget is fiscal fiction. I am sure that the Minister of Finance intends to submit the 2016 Liberal budget for the Giller Prize, a worthy nominee no doubt. I would like to talk about the Giller Prize. The 2016 Scotiabank Giller Prize is for literary works of fiction. The criteria says, “To be eligible, a book must be a first-edition full length novel”, and I think it counts as that, “or short story collection”, if you will, of broken promises, and “written by a Canadian citizen”, of which there is not doubt.

It also says, “No self-published books shall be eligible.” We've covered that. It also says “The decision of the judges as to whether a book is eligible shall be binding.” I think we are on the right track here. The good news is that it can be submitted by September 30, 2016.

If that does not work, the Liberals could also apply for the Shaughnessy Cohen Prize for Political Writing. This being a political document, of course, it could be submitted. The criteria states, “Publishers should note that the prize is for literary excellence; they should only submit books they deem outstanding in this regard.” By far, the fiction in the budget and the budget implementation act is outstanding fiction.

It continues: “Books that are strictly hagiography or political advocacy or which fail to illuminate political trends or issues are unlikely to be shortlisted.” That might be sad news for this budget document. The other sad news is, “No more than 20% of the manuscript can have previously been published in book form.”

That is good news too, because many of the promises in the Liberal red book are not in the budget. The Liberals have broken pretty much every single fiscal promise they had, which again adds to this new theme that this is fiscal fiction. It just does not add up.

I have another one, the Rogers Writers’ Trust Fiction Prize. This is another prize that the Liberals could seek. It would also help to pay down some of the deficits. This may be something that government may want to do, apply to every single literary prize in Canada or the United States to try to pay down the deficit. Again, the sad news is, “No more than 20% of the manuscript can be previously published in book form.” That is very sad to see.

When we talk about a work of fiction, this budget, the budget implementation act, is exactly that. It pretends to be for the middle class when it is actually against the middle class. It does very little for them. What it does do is to saddle future generations with hundreds of billions of dollars of debt.

In this budget, there is absolutely no plan to return to a balanced budget. There is no pretending to return to a balanced budget, hence the fiscal fiction. On one hand, the Liberal government talks about returning someday, potentially, maybe, if it so happens, to a balanced budget. In the actual budget implementation act, there is no such talk. In fact, in the budget document itself, there is no graphic that shows when it intends to return to surplus.

I would like to talk about page 53, “The Path Forward”, where it talks about repealing the Federal Balanced Budget Act. This is one of those fiscal anchors that is quite important to the budget. Instead of amending it in the budget implementation act, the Liberals are completely getting rid of it. Again, it just adds to the fiction. They talk a good game about trying to balance the budget but have no intention to do so in statute. They are actually getting rid of any statute that talks about balancing the budget.

As we talk about this wonderful statute, the Federal Balanced Budget Act, I want to read from the preamble of the act that the government is getting rid of. It says:

Whereas attaining and maintaining a sound fiscal position requires that the Government of Canada achieve annual balanced budgets and reduce debt, other than when a recession or extraordinary situation occurs;

Whereas maintaining balanced budgets and reducing debt helps to keep taxes low, instill confidence in consumers and investors, strengthen Canada’s ability to respond to longer-term economic and fiscal challenges and preserve the sustainability of public services;

And whereas reducing the debt burden will help to ensure fairness for future generations by avoiding future tax increases or reductions in public services;

These are all great things to want to have in the administration of our public finances, but obviously the Liberal government does not think so, which is why it is getting rid of it entirely instead of amending it. This just adds on to the fiscal fiction. I am sure that the judges for the Giller Prize will be most pleased to see that.

When the Minister of Finance was asked about balancing the budget, he brushed it off. He claimed that he did not want to focus on the issue. It was not important to him. In fact, he went on to say that we Conservatives were stuck in this whole balanced budget thing.

I actually understand his position. If one does not care for it, if it is just talk and fiscal fiction, then one would say to those who disagree that they are stuck on it. Obviously, he is not stuck, because he is about to get rid of it in the budget implementation act. He would get rid of the one fiscal anchor, the legislated anchor, that says we must have a balanced budget, for all the great reasons that are in the preamble. He obviously does not like the preamble, so he is getting rid of that too.

The International Monetary Fund did a study that reported 89 countries had implemented some form of statutory debt restraint through the end of 2014. It reported that, “Such laws are useful in showing skeptical bond investors that a nation is serious about kicking old habits of profligacy. They also allow voters to hold politicians to account.”

There is such a thing called an election and Canadians made a choice, and perhaps we disagree with them. However, on the fiscal side, Canadians were promised something. They were promised tiny little deficits and a return to a balanced budget, which is an expectation by Canadians. It is part of the values we share, that we manage our public finances in the way we manage our household finances. One cannot keep spending money on a credit card. Eventually, one has to return to a balance and create a surplus to pay down the debt. That is how it works. In this budget, though, there is no such plan. There is no talk of it, even. There is no such goal. There is no such pretension anymore. Hence, this fiscal fiction is worthy of the Giller Prize.

When we talk about small business, the tax rate was supposed to go down to 9%, but now it will stay at 10.5%. Again, this is another broken promise from the Liberal government. According to the Canadian Federation of Independent Business, that decision will cost small firms $900 million per year, as of 2019.

The parliamentary budget office calculated that it could cost up to $2.2 billion. I asked a question to the Minister of Small Business on this matter, partially, but also on the matter of small professional corporations and how they are treated as a business entity. Basically, I did not get an answer. There is nothing in the budget implementation act that speaks to it. It is a completely avoided subject. The minister, in fact, avoided answering the question entirely. Therefore, what is there for small business in this budget? Nothing. Again, it is fiscal fiction that the Liberals are going to be helping small businesses across Canada. They have no such plan. They have no such intention.

As I have done before, I love to use Yiddish proverbs, and I have one here: “There's plenty of time to bemoan bad fortune once it arrives.” What is going to happen when the next recession hits? What will happen when there is a major disaster? How will the government pay for it? It is already running tens of billions of dollars of deficit with no plan to return to surplus. What will the Liberals do? Will they simply double the deficits? Will they simply increase the national debt even further?

The Liberal plan runs well beyond 2019, beyond the mandate of a Parliament. They simply have no plan or promise to return to a balanced budget. It is a fiction worthy of the Giller Prize.

The parliamentary budget office has done a substantial amount of work to show that the Liberals inherited a surplus. I hear the talk from the other side that we cannot only look at the first 11 months out of a year. That is not how a business would look at things. However, what a business would look at are cost control measures. Ever since October 19, 2015, all cost control measures are basically gone. Therefore, what the Liberals are going to present to us in the last month of the fiscal year is a massive deficit that they will blame on the Conservatives. However, in truth, they are responsible for it. They have had the reins of power since then, and they have been the ones running this country and running the finances. They are responsible for the debt that has been accumulating. It is nobody else but them.

Indeed, the Liberals consistently refer to defending the interests of the middle class, and that is literary fiction. We see in the summary of the budget implementation document that they are eliminating the education tax credit, the text book tax credit, the children's arts tax credit, the family tax cut credit, and the child fitness tax credit. I mentioned at the beginning of my speech that I have a pair of little eyes looking down at me, my eight-month-old. However, there is something in here for teachers. Therefore, we are eliminating everything for middle class families, while introducing something for teachers. Again, this budget was never meant for the middle class; that is entirely fiction.

[Adam Vaughan, Liberal, Parliamentary Secretary to the Prime Minister (Intergovernmental Affairs)]

Mr. Speaker, as someone who represents a riding that I think has more bookstores than any other riding in the country, I cannot tell the House how refreshing it is to hear a Conservative actually talk about literature and books.

For ten long years, the cuts to the Canada Council, the cuts to the programs that supported authors and the publishing industry, the damage done by the copyright reforms to publishing and the authors in this country was astonishing, a shameful record on literature.

However, if the member opposite is actually interested in reading more books, I would like to suggest a few titles for him: Beautiful Losers: Essays on the Failure of ...Conservatism, Dismantling Canada: ...New Conservative Agenda, and my favourite one that I could really recommend, The Conservatives Have No Clothes: Why Right-Wing Ideas Keep Failing.

Would the member opposite like to reflect on the fact that the budgets that his party produced prior to the recession, during the recession, after the recession, and, even now, have landed us in more debt than any other government in modern Canadian history? Why do the Conservatives think they have any right to lecture anyone on fiscal management when they put $160 billion of debt on the backs of their children?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I thank the member for his question, but that continues the same point as I mentioned before. It is fiction. Small business entrepreneurs, the writers of books, do not need the government's support to basically finance their operations. Good books get recognized. Good books get purchased, no matter where they are. That is why there are e-books. That is how writers get the material, just like musicians. They are entrepreneurs. They know what to do to get the material out to people who want to listen to it, to read it, who want to take advantage of it.

To speak to one point that the member made about spending and how much debt was accumulated by various governments, the government he supports has zero plans to reduce the deficit. It does not even pretend to do it in the budget document. Again, going back to my point, it is a work of literary fiction.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Mr. Speaker, I thank my colleague for his speech. The Liberals are in denial, when it comes to the fact that they introduced a completely undemocratic bill, an omnibus bill. We will not have the chance to split the bill into a number of separate bills to study some of the areas that are problematic, dense, or very complex and that should be studied by a committee.

The Liberals keep harping on about how they are the best defenders of the middle class, but on April 14, a UNICEF report indicated that Canada was one of the richest countries where child inequality has continued to grow over the past few years. Canada ranks 26 out of 35 countries in that regard. That is nothing to be proud of.

UNICEF proposes such solutions as new investments to stimulate family income and early childhood support programs. However, this budget makes no investments in crime prevention or drug prevention, and there are no investments in mental health or affordable housing. I could name a number of other gaps.

I talked with a number of youth forums, and they all told me that there is a shortage of prevention programs. That is not really the Conservatives' cup of tea. However, since the Liberals said that they would bring about change, I would like to know what my colleague thinks about that.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I would like to thank the NDP member for her question. She touched on a number of subjects and so it will be difficult to answer in 60 seconds.

Nevertheless, I would say that before deciding to run up such deficits over several years and put the future generation into debt, they should think hard about it. That will be the biggest problem that future generations face.

How will they pay for the programs and services they want when they have to pay for the services and programs we are using today?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I will be splitting my time with my colleague from Trinity—Spadina.

I am very pleased to join the discussion today.

Before I talk about the budget, I want to offer my condolences, and my heart and prayers go out to all of those in Fort McMurray and community who are suffering. I pray for their safety and the safety of the entire community.

Six months ago, I made a promise to the people of Humber River—Black Creek. I promised that a Liberal government would put people first. It is with this promise in mind that I rise to speak to the budget implementation bill.

For the first time in a very long time, I am proud of a budget put forward by a federal government. I say this because in contrast to budgets put forward by previous governments, budget 2016 is both fiscally prudent and socially responsible. It acknowledges that Canada cannot be strong if our families and our households that form our core are not strong. In fact, budget 2016 is an innovative long-term plan that is specifically focused on strengthening the fiscal security and stability of our families living in places like 10 San Romanoway, 7 and 11 Arleta, and in similar working-class homes throughout Canada. The budget contains a range of measures that are intended to grow the economy while helping low-income families, supporting seniors, and expanding affordable housing for those who need it.

When I visit my friends and constituents at Elspeth Heyworth Centre, or at the North Islington seniors group, or at the Jamaican-Canadian Centre, they know that Canada's per capita GDP is important, but that is not what they focus on every day. They struggle to focus on that kind of national number because they are too busy worrying about their next trip to the grocery store, or their next rent payment.

When I spoke to previous budgets over the years, I stressed that national economic prosperity must be felt at the kitchen table, not just the boardroom table. Conservatives would laugh, but the residents along the Jane-Finch corridor in my riding did not laugh. They understood it exactly.

For too long, seniors, students, young families, and those looking for work felt abandoned by their government, but since October 19, my constituents feel more optimistic. This budget is part of that change. Today the people at 3001 Finch, the kids at St. Andre's, and the students at York University can all feel their individual needs are being addressed thoughtfully and compassionately. Canadians gave this government a mandate to help the middle class and those working hard to join it, and that is precisely what we are doing with budget 2016.

Budget 2016 pursues an agenda driven on innovation and investment, which is at the heart of our policies and part of the government's long-term vision for a more inclusive economy. This is in stark contrast to the previous budget of the Conservatives, who not only squandered the $13-billion surplus that was left for them, but also failed to achieve any real sustained economic growth during the course of their 10-year mandate.

As the Minister of Finance stated in his budget speech in March, we are seizing the opportunity to invest in people and the economy, and to prepare Canada for a brighter future. This is the kind of positive outward thinking that will drive our economic focus going forward, and it will help to ensure that families living in my riding and others across Canada will have a real shot at the kind of prosperity the previous government so often promised but consistently failed to deliver.

Despite the political rhetoric, the truth is that the Conservatives overspent to the tune of $160 billion, and they did so without any solid plan or any measurable results. While a certain armchair economist in this House thought that out-of-control spending was a good idea, even the most junior economist knows better.

We must not lose sight of our objective to create an economy that is more inclusive and that benefits everyone involved. The budget is setting us out in that direction. Canadians are asking for help and this government is listening. The days of picking the pockets of low-income seniors, young families, starving students, and the unemployed hopefully have come to an end.

Budget 2016 is about establishing a new fiscal foundation, one that includes everyone. For example, given the high poverty rates and low household incomes facing many residents of Humber River—Black Creek, tackling the fiscal crunch that many are facing on a daily basis is critically important to them. Notably, many low-income seniors living in places like 35 Shoreham Drive or 3680 Keele Street are facing a number of financial strains just to make ends meet. The rising cost of living has already erased any hope of saving for the future, so without meaningful support, any hope of a dignified or secure retirement is gone, and that is wrong.

The budget will dramatically improve the quality of life for seniors by increasing the guaranteed income supplement annually by $947 starting this July. This represents an immediate 10% increase in GIS benefits for low-income seniors.

As well, we will reverse the decision imposed by the previous Conservative government by restoring the eligibility age for old age security from 67 back to 65. That means the hard-working people like those living in the Northwood Apartments will have access to the financial assistance they require to retire with dignity. This was an issue that I fought for while in opposition and I am very happy that our Prime Minister and our government have made the change back to 65, which is where it needs to be.

In addition, the Government of Canada intends on working with its provincial and territorial partners in order to enhance the Canada pension plan with the objective of improving retirement income security for all Canadians. I look forward to the future discussions that will follow on this issue.

No seniors should be forced to decide between paying their monthly bills or going hungry, and the budget goes a long way in helping them achieve a dignified retirement.

The budget will also provide $200.7 million over two years to repair and expand affordable housing units for seniors and others, and $573 million will be directed to tackling repair and energy efficiency issues for the social housing sector. Many of the people at the addresses and units I referred to earlier are struggling tremendously to cope with the cold air coming in and the lack of repairs to many of Toronto's community housing buildings as in many parts of Canada. Anyone who comes and sits in my constituency office for a single day will quickly see that these are areas with a tremendous need.

I am pleased to say that affordable housing is a priority under the $2.4 billion allotted for social infrastructure spending. This will have a positive impact on seniors and others who need an affordable, safe, and respectable place to live.

There will also be $3.4 billion over three years as part of the public transit infrastructure fund that will be of great economic benefit to many communities, particularly those people who are struggling to get to work on time via the Finch bus route in Toronto. This route has been an issue for many years, and I am glad to see it is a priority for our new government.

Just as the seniors of today are struggling, the seniors of tomorrow are feeling the pinch too. We need to address those issues as we run the risk of kicking that can down the road. Canadian families, particularly single parents, are facing mounting personal debt, high living costs, and an inability to pay for their children's education or save for retirement. Our government will make immediate investments to improve the fiscal capacity of families who are planning ahead, as well as those looking for work to support their loved ones.

A key feature of budget 2016 is the launch of the new Canada child benefit, a more simplified program in which families will receive a monthly tax repayment targeted for low-income and middle-income earners. Those who will benefit will see an average increase of almost $2,300. That means nine out of ten families throughout Canada, and especially in ridings like mine, are going to see the benefits of being able to better support their families and their loved ones.

[Dave Van Kesteren, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, I listened with interest to my colleague's speech and she forgot to mention that the first two years we were in office, the Conservative government paid down the national debt of $37 billion. She also forgot to mention that while that happened, we lowered taxes, like the GST from 7% to 6% to 5%.

She also forgot to mention that at that time there was an incredible, some called it a world depression, in 2008, when all the G8 countries got together and decided that they would massively infuse cash into the system. Canada, being the only country at that time that did so, had an objective of paying down that debt and coming into a balanced budget position, which we did, leaving the Liberals with a modest increase in the budget, but also, in March, provided the same government with about $7.5 billion in its coffers, which it quickly spent.

Having now heard those facts, could the member explain to the House why the government thought it would be necessary to go back into a deficit position, bringing about all the things that we have heard about today, which would cause so much havoc for our children and grandchildren in the future?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, when the Conservatives came into power and replaced the Liberals, they had $13 billion to play with, and they clearly used it over the many years to try to buy every single vote they could from every community throughout Canada. At the end of their time in office, they left us with $160 billion more in debt.

I am really proud that our government is going to invest in people. We are going to invest in people by helping students get a good education. We are going to focus on innovation and job creation. We are going to be focusing on Canadians. That is where our investments are going to be.

It is really important to make sure we are growing the economy. We are not afraid to spend $5 to invest in Canadians, because it is their money, and right now they want us to be investing in them, their families, and making sure that we are opening the doors to opportunity for all of them so they do not have to continue with the struggles they have been dealing with, especially for the last 10 years.

[Karine Trudel, NDP, Jonquière, QC]

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

We have been debating the budget since this morning. There are some good measures, such as the reinstatement of the credits for labour-sponsored funds and the elimination of the tax on feminine hygiene products, which is a big expense for women. The Liberals are also eliminating income splitting.

However, there is nothing in the budget about Canada Post and home mail delivery. With respect to employment insurance, which the seasonal workers in my riding of Jonquière need, 12 regions are supposedly more important than my riding. The workers in my riding are being penalized, because they will not be eligible for the five extra weeks of benefits that workers in other areas will receive.

I would like to hear what my colleague has to say about that.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, as we move forward with our budget, we are looking at a variety of areas throughout the country that are struggling and we are deciding on the best way to help them. There are challenges facing Fort McMurray. It is an area that we are going to have to pay specific attention to and invest a lot more money than maybe what we had planned, because we need to help those people.

In reference to the Canada Post issue in particular, I believe the minister announced in the last day or two that a committee has been put together that will be doing a review between now and the end of the year. It will consult with Canadians, academics, and professionals on how to maximize the opportunities for Canada Post, because the issue of mail delivery is important to all of us and we would like some of those issues resolved as soon as possible.