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

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, I do not believe that the amount he is referring to, whatever the court costs are, relate to money that would be spent in Bill C-15 or under the budget itself. I know that the hon. member will join me in saying that since I personally do not have the knowledge of this particular case before the court, I would hardly be in the right to talk about it now.

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, I was talking about the measures in Bill C-15 to help our seniors. I believe that it is very important to take note of all the measures for seniors in Bill C-15 and in the budget.

I was talking about the guaranteed income supplement and the extra 10% that single seniors can receive, up to $947 per year. However, what is also important is that where seniors are required to live apart because one of their health conditions or one of their circumstances requires that they be in a seniors residence or a care home or other places, we are allowed to now treat them as two separate individuals for the purpose of these supplements. This means that where they were losing money because they were married or living together common law, now they will not be penalized for that. That is also important.

I also want to talk about the $200.4 million that is going to improve social housing for seniors, to renovate apartments to help seniors live in their houses for longer.

As we all know, seniors benefit from residing in their residences for as long as possible. We do not want our seniors to be forced into hospitals or institutions before they need to be there. With proper management, with proper accessibility for the handicapped, and with proper services such as bringing in caregivers from health institutions to bathe seniors, we can leave seniors in their homes longer, and they will have an improved quality of life. I hope we can have agreements with the provinces to ensure that the monies in the budget that we intend to transfer to the provinces for health care go toward helping seniors live in their homes for as long as possible. That will continue to improve quality of life for seniors at home.

I also want to talk about another group of people in my riding who I met with a lot during the campaign who were troubled, which are students. Today, students are struggling, as we all know, with the rising cost of tuition and the massive debt they need to incur. It is low compared with our neighbours in the United States, but still high by Canadian standards. Where students have accumulated more and more debt, they want measures to help them afford to go to college, to university, to vocational training.

We have improved the Canada summer grants program by allowing a 50% increase in the amount of money that all classes of individuals can receive in grants, including part-time students. We are enhancing the Canada student loans program by saying that they do not need to repay student loans until their income reaches $25,000, and introducing more flexibility in terms of repayment measures for Canada student loans.

My NDP colleague was very proud that 320 students were hired in his riding. In my own riding 271 students were hired. Twice as many students were hired to work in our ridings as last year.

I believe that many of my colleagues are very pleased with the investment we made in summer jobs for students.

One other thing is training and apprenticeship programs in this budget. It is great to come out of university, but if students do not find jobs, they are still living in their parents basement. We do not want perpetual living in parents basements for our 20-something and 30-something generation. The monies that are going to enhance finding people jobs, going into apprenticeship programs, going into training, has the potential to help many Canadians of the younger generation.

I also want to point out the investments in our rural communities.

My hon. colleague from Laurentides—Labelle keeps talking about the lack of Internet in his community. That is also the case for many of my colleagues who live in rural regions in Canada.

I am very pleased and grateful that we invested $500 million to improve Internet service in the regions of Canada that need it.

I also want to talk about our veterans. I think we all appreciate the incredible service that many women have for generations given to our armed forces. Our Second World War veterans are old now. They are in their late eighties, their nineties, or they are over a century old. They deserve not only our respect but our help in order to get the best services to which they should be entitled, more money for front-line services. Reopening the veterans offices is something that is very important to Branch 97 of the Legion, the Frederick Kisch brigade in my riding, and Legions all across the country.

As mayor of Côte Saint-Luc, I was very proud that we found free space for our Legion in the city. I know that all members from all parties want us to make sure that benefits for our veterans are the type of benefits they are entitled to by virtue of the incredible service they have given this country.

In conclusion, I believe the bill will help Canadians, enhance our middle class, and make our Canada a stronger and better place. I am pleased to support Bill C-15.

The House resumed consideration of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, I would like to thank all of the hon. members who spoke before me in this debate today. This is the second time I have had the opportunity to speak in the House on Bill C-15.

To try to say something different, I want to start off by focusing on a couple of the things I have heard.

This morning, I heard a Bloc Québécois member accusing the government of neglecting Quebec. He also accused the government members from Quebec of neglecting Quebec.

Then I heard another member from Alberta saying that the budget disproportionately helped eastern Canada and affected Alberta.

I just want to say that we can be upset and disagree with provisions in the budget, but I would call upon all of us, as Canadians, to recognize that we are here as members of Parliament, not only to stand up for the people of our riding and our region, but also to stand up for all of Canada.

Therefore, I would call upon us not to continually divide ourselves by region, saying that one region is favoured over another, but to recognize that all of us believe in the best interest of Canada, and that we are furthering policies that are in the best interest of Canada.

I would only suggest that that be how we start off in this debate. I am pleased to be able to talk about Bill C-15, because coming out of an election campaign, I saw a lot of things going on in my riding that were disconcerting. I am very happy that some of these situations are alleviated by provisions taken in Bill C-15 and in the budget as a whole.

Number one is the Canada child benefit. It was frustrating, as we all walked door to door during the election, meeting so many families with children living in poverty. I am lucky to represent a riding that has a very affluent side, but we also have a very poor section. I got to meet families living on very low incomes with children, who had to question whether they had enough money to put their child in an after-school program as well as feed them.

All parties, whether Conservative, Liberal, or New Democrat, agree that we want Canadian children to start out with a fair chance, to have a full belly, to be able to participate not only in primary and secondary school but to go to university or trade school or whatever option they want post-secondary, and to be able to participate in after-school sports or arts or other programs.

The Canada child benefit says we are focusing on the poorest Canadians, we are focusing on those parents who earn, for example, less than $30,000 a year, and saying they are going to get $6,400 tax free for children below the age of six and $5,400 tax free for children above the age of six. That makes a real difference.

Whatever we think of the whole budget, whatever we think of Bill C-15, I certainly hope we are able to applaud that measure.

As well, I want to focus on seniors. One of the things that was also disconcerting was seeing the number of seniors in my riding living in poverty, widows especially, living alone in their 80s and 90s, with no family in Montreal to support them. These people will benefit from the enhanced guaranteed income supplement for single seniors, of 10%.

I will resume my comments later.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, I rise in the House for a second time to speak to Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures. Specifically, I plan to address issues of budgetary concern that would have a direct impact on my riding of North Island—Powell River.

We are currently at the report stage, so I will also be discussing a few of the NDP's proposed amendments to the bill. Thirty-six amendments were tabled in committee by the opposition parties; 15 of them came from the NDP. These amendments would not have made this a progressive budget, in my eyes, but they were crucial and would have made the bill passable. Unfortunately, without them, I am afraid I will have to oppose the main motion at report stage.

As we know, the Liberals decided to listen to its false majority, rejected most proposed changes in committee, and introduced time allocation in the House after only two days of debate.

The Liberal government campaigns on a promise of more help for the middle class. In the communities I serve, I hear from people who identify as middle class but who make less than $45,000 a year. I also represent people who are the working poor and struggle day to day to make ends meet. This tax break would not help these people.

At a time when Canadians need a government to tackle growing income and wealth inequality, the Liberals went in the opposite direction. Everyone agrees that those in the highest tax bracket, earning $210,000 or more, would benefit the most from the Liberal's so-called middle-class tax cut. Six out of 10 Canadians will get nothing from this Liberal plan.

What sets New Democrats apart is our belief that the government should be tackling inequality, not compounding it.

One community in my riding is facing a very painful reality. A mill closed and has been shut down for almost two years. There is no word yet to the community on whether it will reopen or not, but the impacts have been extremely painful, and I have been so grateful to the people who have contacted my office to share their stories and to ask for help.

The people in the communities I serve are hard-working and dedicated to the communities they live in. This tax break would not help them in their process to revision their family or their community. New Democrats proposed to modify the tax cuts so that working-class and middle-class Canadians would benefit from tax changes. The PBO confirmed today that the NDP plan would benefit nine million more Canadians and have a much fairer distribution of benefits.

It is time for a government that is more fair to those who work so hard in our communities.

Two weeks ago, I started a tour in my riding of North Island—Powell River for town halls, to have a conversation on seniors' issues. I listened to their priorities so that I could understand their needs better and work to ensure that they are met. In a riding as large as mine, I have completed only a third of the area and look forward to completing the rest, but I will tell members that these voices were strong and often unanimous. I was deeply touched and startled by the stark realities they shared with me of the people who supported us in the building of this country. Many of them are now feeling completely abandoned.

I have been in Ottawa for nearly eight months now and I am astounded to witness how little we have spoken about the needs of our elders. The budget would not include any additional provisions for home care or palliative care, even after the Liberals promised $3 billion for home care during the campaign. I can tell members that, in the riding of North Island—Powell River, it is desperately needed.

How many more years until we see money or even a strategy in place to meet the needs of Canada's seniors? By 2036, the number of seniors will double. It should be a critical question we are asking in the House, planning for now and for the future.

When the federal budget was introduced, we did welcome the government's recommendation to increase the GIS for single seniors. Let us remember that on the campaign trail the Liberals' promise was to help them immediately. Why are seniors having to wait until July?

The NDP moved to make the increase to the GIS retroactive to January 1. The Liberals rejected our amendments. However, the seniors in my riding can count on an MP who will have their interests in mind.

It is rare for politicians to agree on anything, but during the election all three parties promised to lower the small business tax rate to 9%. Liberal MPs still have yet to keep the election promise they made to small business owners that would see a break on their taxes.

New Democrats have been fighting for a long time for tax cuts for small businesses, which are the real job creators in Canada. In the communities I serve, our natural resource industries have taken many hits. Now with less of these jobs, small businesses have stepped up to the challenge of working in the communities to create economic development and local jobs.

Vague comments hoping people will have more money to spend, which would be good for small business, are not enough. Small businesses are the backbone of our economy, and in rural and remote communities they are often dedicated to supporting the communities in so many ways. It is time to return the favour to these small businesses, to give them what they need so they can make choices, which will help communities across Canada.

The NDP proposed two amendments at the Standing Committee on Finance for the Liberal government to reconsider the tax increase for small and medium-sized enterprises. Not only did the Liberal members of the committee reject all amendments proposed by the opposition, but on many occasions they remained silent and refused to explain their decisions.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, said it best. He said:

So you can imagine our surprise on budget day when we heard that, “Budget 2016 proposes that the small business tax rate remain at 10.5 per cent after 2016”....

We've been trying to figure out why the government did this. Some reasons have been floated. I have to say, after meeting with several cabinet ministers, and many MPs of all parties, there has been no suggestion as to why the government chose to take this action.

I would like to thank my colleague and neighbouring MP, the member for Courtenay—Alberni, for standing up for small businesses. In the last weeks he has launched a campaign that encourages small businesses to send a broken promise invoice to the Liberal government. In total, the cancelled tax reduction will cost Canadian small businesses $2.2 billion over the next four years. Many small business owners were counting on these scheduled reductions. They could have upgraded their operations or given their employees a raise. Now, they feel betrayed. I encourage all small businesses in my riding to stand with us and send these invoices to the Liberal government.

Consecutive Liberal and Conservative governments have given massive tax giveaways to Canada's most profitable corporations. Meanwhile, the NDP is a party that offers tangible solutions that would make a difference for those who need it most. We are listening to small businesses.

Budget time is the government's opportunity to start capping transaction fees for credit cards and facilitating the transfer of family businesses between generations. These are small changes that would go a long way.

The Liberals repeatedly criticized the anti-democratic behaviour of the Conservatives with their omnibus bills, but now that they are in power, they are repeating the practice. Bill C-15 is a large bill. It has 179 pages, amends over 30 separate statutes, refers to nine different ministries, and impacts several others. Moreover, it retroactively repeals an act and proposes retroactive changes, includes a complex chapter on bank recapitalization, and proposes changes to employment insurance.

The budget and its implementation bill simply do not meet the needs of the vast majority of the people I serve. Unfortunately, like his Liberal predecessors, the Prime Minister has given us an omnibus bill that puts tax relief for CEOs and big, profitable corporations ahead of help for many hard-working Canadians, unemployed workers, and small and medium-sized businesses.

At a time when Canada needs a government that will combat rising inequality, the Liberals' first budget is inadequate.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I am honoured to rise on behalf of my constituents in Guelph to extend my wholehearted support for budget 2016, growing the middle class, Bill C-15. The budget has many bona fides, from the emphasis on the environment, to infrastructure investments, to building the economy, but there is no doubt in my mind that the budget's greatest asset is its focus on innovation.

However, I feel compelled to ask the House this: what is innovation exactly? Innovation is much more than a buzzword. It is a perspective, a new way of seeing our world. Innovation is creativity with a job to do, as John Emmerling defined it. Innovation is the route to developing a prosperous future for business and a more efficient government for the Canadian people. Assembling new technologies, best practices, and ideas is critical, but the process does not stop there. In fact, that is just the beginning.

By bringing together experts and entrepreneurs with new technologies and by utilizing the best available practices from around the world, Canada will flourish, cementing our place as a prosperous nation. That not only adds to the value of our economy but adds to the value of economies around the world.

As I was the former president of the Guelph Chamber of Commerce and co-founder of Innovation Guelph, I have seen this work, and we did our part to grow our community.

As a result of hard work and creativity, Guelphites now have the lowest unemployment rate in Canada. Guelph is ranked number one in the agricultural biotechnology cluster in Ontario. It is also one of the top two in Canada. Guelph's advanced manufacturing sector has 360 businesses employing over 14,000 people in Guelph, with employment growing at close to 10% annually.

Clean technology is a rapidly growing sector in my riding. Canada's largest solar panel manufacturer is located in Guelph, and many businesses are working around the world on water and air quality as well as on alternative energy.

The University of Guelph and Conestoga College have been key to shaping Guelph's growth. Focusing on innovation through business, academic, and government partnerships has been key to Guelph's success, and it will be the key to Canada's success going forward.

If this is what the city of Guelph can accomplish with an innovation network, just imagine what Canada could accomplish if there were a string of innovation networks linking coast to coast to coast.

Building this new future for Canada begins where this government does; it begins with engaging Canadians. Creative and entrepreneurial citizens are at the heart of this new innovation agenda.

Investing in education is a crucial step in developing Canadian talent and as a means of attracting talent from abroad. Through the Canada Foundation for Innovation, the Government of Canada has already made significant investments in research infrastructure at Canada's universities, colleges, and research institutes.

Provinces and territories also provide substantial funding for campus renewal every year. Nevertheless, much of Canada's post-secondary infrastructure is over 25 years old and is nearing the end of its useful life. This presents an opportunity to invest in greener and innovation-friendly spaces.

As chair of the innovation and post-secondary education caucus, I strongly support budget 2016, as it will invest $2 billion dollars in a new post-secondary institutions strategic investment fund.

Commercialization and growth is truly an indispensable element of the innovation process. Dynamic, globally interconnected firms will propel clean economic growth, increase Canada's productivity, and support well-paying jobs for the middle class.

Connections between knowledge producers and users, including researchers and firms, and collaboration within supply chains, driven by market opportunities, create value through innovation while supporting economic growth. Information gaps and coordination challenges may prevent these linkages from being developed to their full potential, impacting the strength of innovation ecosystems.

Therefore, to help address these challenges, budget 2016 proposes to make available up to $800 million over four years, starting in 2017-18, to support innovation networks and clusters as part of the government's upcoming innovation agenda.

Last, but certainly not least, science and technology is the fuel that makes innovation possible. Technology has always shaped the course of human events, and the future will be no different. Therefore, we cannot ignore or become mere bystanders while other nations in the world race past us in an effort to gain the technological upper hand.

Canada's universities, colleges, and other research institutions play a fundamental role in our society by developing the leading technologies of the day, just as we did in the past with penicillin, the Avro Arrow, and the telephone, to name just a few examples of Canadian technology.

In keeping with Canada's long history as a global leader in research and development, budget 2016 proposes an additional $95 million per year, on an ongoing basis, to be provided to granting councils. This will be the highest amount of new annual funding for discovery research in more than a decade. As well as demonstrating the foresight of budget 2016, this initiative will support up to 50% of the eligible costs of infrastructure projects at post-secondary institutions, paving the way for success for hundreds of thousands of Canadian youth.

As a member of the House of Commons Standing Committee on Industry, Science and Technology, I recently visited businesses in Montreal's aerospace industry that form part of Canada's aerospace cluster. These businesses show the power of industry-academic collaboration, but also the importance of collaboration with the federal government, to compete and partner with each other and with countries in this area.

I am a member of the automotive caucus, and the same can be said about that sector. It is critically important that government, industry, and academia work together to develop our innovation agenda. Budget 2016 gives us first steps to focus government as a key partner in innovation.

Budget 2016 provides Canadians with the tools they need to innovate and build a stronger, healthier, and greener Canada for future generations. I eagerly await the advances in science and technology that will come about as a direct result of the investments we make here today.

No less than Mahatma Gandhi said that we must be the change we wish to see in the world. By embracing and embodying innovation as a perspective, acting as a lens through which we can see the world, Canadians will once again be the change they wish to see in the world and being the trailblazers to whom the world can look as a model for success.

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

Mr. Speaker, it gives me great pleasure to stand to speak to Bill C-15.

This past weekend while in Whitby, I had the opportunity to attend a number of events. I went to the “art heals” program at Ontario Shores, a program which supports using art as a way to heal the challenges one faces in life. I also went to the Whitby Yacht Club and joined a reception following the blessing of the fleet. I visited Nova's Ark, an organization run by a courageously selfless woman named Mary-Ann Nova, who opened up her property to children with developmental challenges. Some local high school students were also at Nova's Ark to help with the movie night so that the children, who are not normally invited to go to the fair or to proms, had an opportunity to just hang out. I also went to the 105th Brooklin fair and helped the Abilities Centre celebrate its fourth birthday. At every corner, at every event, I saw people smiling, families having fun, enjoying the weather, and celebrating together.

I mention all of this because when I joined government I wanted to ensure that my role here helped to make lives better for Canadian families, much like the ones I saw this weekend, and I believe the budget does just that. I am therefore proud to stand to support it.

I first want to talk about what this budget does to help families with the cost of raising their children. With the introduction of the Canada child benefit, a targeted, tax-free, progressive benefit for middle-class families and those working hard to join the middle class, Canadian families will have more money in their pockets. Starting this July, nine out of 10 Canadian families will open their mailbox and find a cheque providing them with a benefit that is more generous than their existing benefits. That is money that families, including many of those I saw at the Brooklin fair, can use to provide the best possible start in life for their children.

However, what I saw in Whitby this weekend is not the norm for many families across this country. In a country as prosperous as Canada, no child should ever live in poverty. No child should go to school hungry, or not have a safe place to call home. The Canada child benefit combats child poverty by targeting the most support to those families in greatest need.

This benefit will lift hundreds of thousands of children out of poverty. As members may have heard my colleague, the hon. Minister of Finance, say many times in the House, the CCB is the “most significant social policy innovation in a generation”, and I am incredibly proud to stand here today to support the budget that provides for it.

In remembering those high-schoolers volunteering at Nova's Ark, and as the parent of three children, I am always thinking ahead, thinking about their futures. As a parliamentarian, I am focused on our collective responsibility to make sure the next generation has every opportunity to succeed. My oldest daughter will be starting college or university next fall and I want to ensure that all doors are open to her, and to all our children, as they head off to school, start an apprenticeship, or join the workforce.

When I was campaigning in Whitby, and increasingly since I was elected, I have heard over and over again from people in Whitby who are concerned about youth employment and underemployment. This remains a persistent and ongoing challenge in Whitby and the broader Durham region. We know that our country's future prosperity depends on the success of our young people and that in order to be successful today, tomorrow, and in the years to come, our future leaders need access to meaningful work at the start of their careers.

I am so pleased to stand here today to talk about how the measures contained in budget 2016 make important investments to make sure that our young people have those opportunities. As I stand here today, more than 77,000 young people from coast to coast to coast are employed through the Canada summer jobs program. That is more than double the number who found placements in 2015.

In my riding alone, more than 400 students will be employed at 68 small businesses, non-profit organizations, and civic institutions across Whitby. These young people will spend their summer learning valuable skills and gaining important experience while assisting these businesses and organizations to better serve our community.

I want to talk about one organization in particular that is participating in the Canada summer jobs program. That is the Abilities Centre. I would be remiss if I did not mention that the vision for this centre came to fruition under the leadership of the former member of Parliament for Whitby, the late Jim Flaherty. The centre, which provides programs and services, including sports, fitness, arts, and life skills opportunities for people of all ages and of all levels of ability, is one organization that is receiving funding this year. I had a chance to hear from the executive director on how important this program is to its success, and how much of a difference it will make for families in Whitby. He told me that, through this Canada summer jobs program, the Abilities Centre was able to hire 26 students this year, who will work a combined 7,000 hours in service to a diverse population. These students will assist the Abilities Centre in providing programming support while they receive on-the-job experience that will help them to continue their studies and enter the workforce.

While we are on the topic of young people, I want to touch on how proud I am that the budget does so much to support students and ensure that post-secondary education is available and affordable.

Budget 2016 enhances the Canada student grants program by increasing the amounts by 50%, thus allowing close to 250,000 low- to middle-income students access to funds for higher education.

My riding is home to the Whitby campus of Durham College, and I have heard how pleased it is with the increased resources that its students will receive in order to support their academic endeavours. If members want to see how talented these young people are, I invite them to visit my office on the Hill or my constituency office and they will see their artwork proudly displayed.

The last point I want to make today is with respect to the historic investments we are making into public transit and infrastructure. Many residents of my riding travel to Toronto and other parts of the GTA for work each day. I have talked to them about their long commutes and the many hours they spend each week idling in traffic or the time they spend on a bus or a train. The time they spend commuting is time they are away from their homes and families. The budget is investing billions of dollars into public transit and infrastructure over the coming years, an investment that will result in more school pickups and drop-offs, family dinners, and bedtime stories for families in Whitby and the Durham region.

Budget 2016 will make a real difference in the lives of Canadians from coast to coast to coast. It is a plan to get the Canadian economy moving again, while taking real action to support the middle class and those working hard to join it. I am very proud to stand here today and support it.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I am very pleased to speak to Bill C-15. As we know, the government introduces a budget, usually in the spring, then there are two budget implementation acts that turn it into legislation. Therefore, it is appropriate that I make some general comments about the budget, its fiscal implications, and my concerns about the direction in which the government is going. I will also pick out some of the very concerning elements in Bill C-15, the budget implementation act.

It is important to note that the Prime Minister just returned from the G7. That should give him some cause to reflect on the direction he has decided to follow. He went there believing other G7 countries should agree that we should embark on an stimulus spending plan. It was very clear that he was met with a very cool reception to this idea by many countries.

As Brian Crowley, from the Macdonald-Laurier Institute indicated, “...a 'growth-friendly' agenda can't be written in red ink”, and they know that “...today's deficit is tomorrow's tax hike”.

What came out of that G7 was a discussion that every country needed to reflect on its own current situation. He had a goal that was clearly not met in his conversations at the G7.

The Liberals often talk about the spending we did, but I find it quite stunning that they fail to realize that during 2008-09, we had a global recession. It was the biggest crisis in the world since the Great depression. They seem to not reflect on that point very well. What we have now is slow growth. We have a little stagnation, absolutely, but we do not have a recession and we certainly do not have a global recession. Therefore, to go to other countries and feel they need the same response, the Liberals are not really looking at the current situation and adapting appropriately.

It is important to contrast this response during the Prime Minister's recent visit to what happened when we were in government, when Minister Flaherty, our colleague, played a key role in the response to the crisis. He was named the best finance minister in the world. When they talked about his record, they said was, “Our winner has earned a reputation for maintaining a sound fiscal policy. His country...has performed remarkably well”, and that he had played “a key role in the G8’s discussions”. This is a huge difference in the response to the global recession and the leadership role we played as opposed to what is happening right now.

We need to first look at the Liberal government's first budget. I remember attending a number of all candidates forums, and a number of key promises were made. The first major broken promise was that the Liberals would run a small deficit of $10 billion. We now know that we are looking at a $30 billion deficit, and this does not include the $3 billion they have committed to home care. We see another announcement that was never in the fiscal plan, a very important initiative, global health, but it was not planned for. The Liberals seem to have a way of spending money that I have never seen before, money that has not been planned.

It is also important to note that as we go forward most economists recognize that unilateral stimulus is bound to have a marginal impact on an open economy. Canada is an open economy, so the money the Liberals are spending, which is adding to the debt of the next generation, is going to be very marginal in terms of its impact.

Another important fact to know, even as we engaged in our stimulus spending, is that we had a plan to get back to balanced budget, and we did that. During the worst of times, the net GDP to debt went from 34% to 31%. Right now the Liberals are on track to increase it. They left one marker, being the $10 billion. Then they said they would decrease the net debt to GDP. It now looks like they will blow that one out of the water. It is a really big concern.

It is interesting to contrast what is happening in Britain right now, which is seeing some reasonable growth. The following comes from its budget speech:

Britain can choose, as others are, short term fixes and more stimulus. Or we can lead the world with long term solutions to long term problems...we choose the long term. We choose to put the next generation first.

Unfortunately, that is not what our government has done. The Liberals have chosen short term to take care of themselves, and to make popular decisions rather than worry about their grandchildren.

When our finance critic gave her speech on the budget implementation act, she was able to look at the statements of the Minister of Finance during the prebudget and when he was in the private sector. She pointed out that he had a really different perspective on the issues around debt and retirement. It put some real holes into his approach in the budget. I do not know how he can align himself or sleep well at night when it looks like the budget goes so contrary to what his fundamental beliefs are.

I will give members a couple of examples.

What does the U.K., Ireland, Belgium, the Netherlands, Denmark, Spain, and the U.S. have in common? They have an old age security system that kicks in at the age of 67 or older. Australia is going into a system where the old age system kicks in at 67 or older. What have we done in the budget implementation act? We have moved in the opposite direction.

Sometimes the decisions a government has to make are not popular and they are not made lightly. We knew that it was a very difficult decision to make, but we also looked at the demographics of our country. We looked at the fact that people were healthier and living longer. I think there are many people we know who have lived their retirement perhaps longer than their working years. Therefore, it was a difficult decision, but it was not an unusual decision.

What is the cost of the change the Liberals are making? It is estimated to cost an additional $10 billion. It is also important to note for those who are not aware that old age security comes out of current revenue. It is not something like the Canada pension plan where we put money away for our future. Therefore, the Liberals have given my children and grandchildren an additional $10 billion of debt, and that is unacceptable. They have to be in a position to look at the long-term health of our country.

The small business tax rate is another example. The government sat at forums. I sat beside my Liberal counterpart at forums when the Liberals promised a 10.5% to 9% decrease. However, the budget implementation act would turn that around. It was a legislated change. It was a change the Liberals said they accepted, but they reversed it. The budget implementation act would move it from 9% back to 10.5%. It is absolutely unacceptable.

In looking at some of broken promises, whether it is the deficit or small business, my biggest concern is that the Liberals are not taking care of the next generation. They are looking at saddling it with a horrific debt.

The Liberals are also showing they are having a bit of a problem in delivering on their promises. Even when they commit money, they do not estimate it properly, and then they have trouble delivering. We can look at the cost of bringing in the refugees. They said that it would be $250 million, but it is now over $850 million.

The Liberals provided $8.4 billion for first nations, and we support that, but there is no plan for accountability. There is no plan on how it would be delivered. Even when there is money that we believe is well spent, the Liberals' plan for delivery and execution is lacking.

I have a big concern about the overall direction of the Liberals. I have a concern about many of the specific measures. I have a concern about the government's endless lust to spend taxpayer money, as exhibited by its recent March spending spree, where they took a surplus and in one month spent about $11 billion.

We are creating a structural deficit and someday we will have to pay the piper for the foolish choices of today.

[Phil McColeman, Conservative, Brantford—Brant, ON]

Mr. Speaker, it is my pleasure to rise today at report stage and speak to Bill C-15, the budget implementation act.

I would like to first of all talk about the context of the budget in terms of it going forward, where we have been, and where we are today, because it is very revealing. In fact, it is very disconcerting and discouraging for Canadians in many ways, particularly small businesses. It is outright disconnected, and the disconnect is happening because the Liberal government feels it has the right to spend whenever it wants, wherever it wants.

Let us go back to what this budget includes, and probably equally as important, what it does not include.

It includes excessive spending: $150 billion over the mandate of the government. Although promised during the election campaign, and I will talk about broken promises as another adjunct to my speech today, the broken promise of modest deficits of $10 billion a year and $25 billion over three years was, of course, thrown out the window. That was thrown out along with the fiscal anchors of trying to bring the budget back to balance so that Canadians can have the strong secure future they are looking for financially. The only fiscal anchor that the finance minister continues to hang his hat on is the debt-to-GDP ratio. However, in many ways it is questionable as to how that will happen because of the way the economy works, which has yet to be seen.

That said, what this budget does not include, and what is probably one of the most significant parts in my mind, is the broken promise to small business in this country. Every member across the way on the Liberal benches mentioned it during the election campaign. They mentioned it when they were in front of debate groups, such as the groups I am very familiar with, the leaders within the home building industry. Most communities have a home builders association. The Liberals sat beside their competitors in the election and were asked what their stance was with respect to small businesses. Most of these companies and individuals in the room would have been small entrepreneurs who were made a promise. The promise made by all parties was that everyone would follow through and reduce the small business taxation rate to 9% from what we had laid out: first 10.5%, and then down to 9%. What this budget does not include is that reduction in taxation for small business.

Who are small businesses? They are people who are represented by groups such as home builders, but also groups such as the CFIB. What was incredibly telling was the discussion at committee with the finance minister. He was questioned about whether he had met with Dan Kelly, the president of the largest group of entrepreneurs and small business people in this country, the Canadian Federation of Independent Business, who had reached out to the finance minister. Dan Kelly said that he would like to bring forward the concerns and thoughts of the small business people through that large network of organizations and thousands of members. The Liberals claimed over and over again that in the huge consultations that went across this country that they covered all of their bases and did everything. However, for some reason, the finance minister specifically missed meeting with one of the most important leaders of the small business community prior to bringing in this budget. That is hugely telling about what their priorities really are.

Small businesses were thinking that when they went to the debates during the election campaign that they could go back and do some planning with respect to their business, because all parties, no matter which party was elected, was going to take the tax rate down to 9%. Without that tax reduction, they will now have to reduce the planning of expansion and investment within their company. These are the people who employ 80% of Canadians. It is that important. They are the entrepreneurs, business creators, and small and medium-sized businesses in all of our communities right across this country. That, along with the dropping of the incentive to hire new employees, the new hiring credit for new employees as well, is a double whammy to small business. That is what is not in the budget, just so people know.

By the way, many of the people who own small businesses in this country are middle-class individuals. They are not rich. Their incomes, on average, are not at the six-figure level. They survive, in many circumstances, on very small margins.

I want to highlight that point today specifically, because what we continue to hear is a very weak argument from the finance minister and the present government. We continue to hear, “Listen, here's how we're helping small business. We're giving the family tax credit. That means that individuals will be able to spend more with small businesses.”

What a disconnect that is. That is such a weak argument that the finance minister makes over and over again. I think the average is less than $10 a week from the family tax credit that is going to the average family in this country, and that is going to have some huge ability to stimulate small business. That is not the case. It is absolutely a false assumption. It is one that is frankly looked upon by the commentators as one of the weakest arguments, lacking in credibility, that any budget has ever seen.

I would like to go on to talk, not only about the breaking of promises, especially to small communities, but also what the future probably holds from the indications from the government. The future for small business holds this. It has increases in small business taxation through CPP. That is going to happen. Canada pension plan payroll taxes are going to increase for small businesses, all businesses, across this country. That is not only for the businesses, their owners, and the people who provide the jobs, the job creators, but also for the people who work within those small businesses, who are going to be taxed at another level.

What is the prospect for the entrepreneurs, the job creators, in this country? They are going to pay more taxes. They are going to pay more taxes because of the spending of the present government, which has broken the promise to hold to what it said to Canadians would be a modest deficit.

Let me talk a bit about another argument that has emerged over and over again through the discussions at committee and here in this House on this issue. We continue to have as the response from the government, “Well, you know what? You guys shouldn't be talking about a story of Conservative values going forward because you left $150 billion of debt during your term.”

Let me clarify what happened in this country and the reason we went into deficit stimulus spending. The government uses it in the context of just throwing it out there. It is another political point that it thinks it is making with Canadians, saying, “The Conservatives can't talk. They left us $150 billion.”

Many of us were in this House during those times of the global downturn. I had a personal relationship with the then finance minister, Jim Flaherty. I can tell members from discussions with him that the world economy was in crisis. It was to the point that in 24 hours there could have been a global collapse if industrialized countries did not come together and make a commitment to put money into stimulating the economy. We, as a government, though we are not prone to wanting to go into deficit, agreed, and we saved the auto industry. We did projects across this country that pumped money into our economy. We literally saved the economy of our country, and of the industrialized world, to be quite frank.

When the government brings up this $150-billion debt, it is never in the context of what it was.

I will make one last point. We put in specific timelines to bring it back to balance. In 2014-15, we were $1.9 billion over, in surplus, in that budget, because we made investments that we had to make because of the world economy, the global economic downturn. Some people called it “the great recession”. It was definitely the second-biggest downturn in the world economy since the depression. That is our track record.

The House resumed from June 3 consideration of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, as reported with amendments from the committee, and of the motions in Group No. 1.

Motions in amendment

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, I am pleased to speak to Bill C-15, part of our government's plan to strengthen the middle class and keep Canada's economy strong and growing for the long term.

The measures in the budget implementation act will enable us to move forward on our ambitious economic agenda. It is an agenda that restores hope for the middle class by making smart, necessary investments in our country's future.

It is a plan I was honoured to table in this House on March 22.

Let me begin by emphasizing that we intend to take advantage of a historic opportunity. Thanks to the leadership of governments in the 1990s, Canada's debt position is by far the best in the G7. With interest rates at record lows, now is the time to invest in people and the economy to prepare Canada for a brighter future.

Budget 2016 will support the middle class now by helping Canadian families with important and necessary measures, and it lays the foundation for sustainable, long-term economic growth. In particular, on December 7, 2015, we introduced the middle-class tax cut. Nearly nine million Canadians are now benefiting from lower taxes on every paycheque.

As a second step, budget 2016 introduced the new Canada child benefit. Compared with the existing system, the new Canada child benefit will be simpler, more generous, and tax free. It will also be targeted to those who need it most. With the introduction of the Canada child benefit, about 300,000 fewer children will be living in poverty. In fact, the CCB represents the most significant social policy innovation in a generation. It means real help for real people, and putting more money in the pockets of moms and dads to pay for everything from summer camp to new clothes.

This is only part of what Bill C-15 does to help families directly. In the past, I have spoken in the House about measures that will also help seniors, veterans, and students. Through their efforts, their innovation, and their integrity, Canadians are building a stronger economy for today and for future generations. They rightfully expect their government to work with them in support of those initiatives.

Allow me to highlight a portion of the bill which I have seldom had the chance to address directly in the House.

As members will know, in addition to helping families and making important investments, Bill C-15 also introduces a number of measures in support of our plan to ensure tax fairness and maintain the integrity of the tax system. As we have said many times, we believe all Canadians should be paying their fair share of taxes.

The budget was tabled before this issue dominated the international headlines this spring, but when it did, I am proud to say that Canada was able to stand proud and highlight the action we had just announced in our plan to prevent underground economic activity and tax evasion, as well as aggressive tax planning.

A cornerstone of our action is a $444-million investment over five years for the Canada Revenue Agency to enhance its efforts to crack down on tax evasion and combat tax avoidance. However, we all recognize that assessing tax revenues alone is not enough, and that is why budget 2016 invests an additional $351.6 million over five years to improve the CRA's ability to go after and collect those outstanding tax debts.

In addition, Canada's tax system needs ongoing adjustment to ensure that it is functioning as intended and contributing to the objective of an economy that works for everyone. We believe a stronger revenue base will help support our new investments in education, infrastructure, training, and other programs that will help to secure a better quality of life for Canada's indigenous people, building a stronger, more unified, more prosperous Canada. These are just a few of the measures in the bill.

However, to ensure a brighter future for our kids and grandkids we have to plan much further ahead. As we look out over the horizon we see challenges and we see a world of opportunity.

For starters, Canada’s population is aging. The global economy is volatile. Oil prices are unpredictable. We need to take steps to improve competitiveness and productivity in Canada so that we become drivers of our own success now, and in a generation from now.

As our workforce ages and shrinks, real GDP growth has been forecast to slow from about 3% enjoyed since 1970 to slightly less than 2% over the next 15 years, a one percentage point drop. Productivity is key to a growing economy because when output per worker is higher, firms can pay their employees more, families can work less while earning more, and companies can return larger dividends to their investors or reinvest in their businesses.

I am proud to be working with my cabinet colleagues, the ministers of innovation, trade, labour, and infrastructure, on delivering our long-term growth agenda, but we know that we do not have all of the answers and we are open to innovative new ideas. That is why, a few weeks ago, I hosted my inaugural meeting of the advisory council on economic growth.

Through this growth council, we have brought together some of the best minds, who bring a global perspective and wide-ranging experience that will help us shape the government's growth strategy. The council will help generate the bold and innovative ideas needed to create and sustain long-term economic growth that benefits the middle class and those who are working hard to join it. We want Canadians to be able to afford to send their kids to a quality day care or help their teenagers with a college education and tuition. We want to ensure that every Canadian can put away enough money for a safe and secure retirement.

To conclude, we know the challenges that we face will not be solved overnight or by a single budget, but we also know that good government is not just about today and tomorrow. It is also about the years and decades to come. That is where our focus will be and will continue to be.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

moved:

Motion No. 5

That Bill C-15 be amended by deleting Clause 233.

Motion No. 6

That Bill C-15 be amended by deleting Clause 234.

Motion No. 7

That Bill C-15 be amended by deleting Clause 235.

Motion No. 8

That Bill C-15 be amended by deleting Clause 236.

Motion No. 9

That Bill C-15 be amended by deleting Clause 237.

Mr. Speaker, I am very pleased to rise in the House to speak to Bill C-15 at report stage.

I was a member of the Standing Committee on Finance, which studied the bill. Unfortunately, I have to say that history is repeating itself. I was on the Standing Committee on Finance for three years during the previous Parliament. If I remember correctly, in those three years, during which we studied six budget implementation bills, the committee considered thousands of pages of amendments but adopted only one, and that was only after a government MP amended the amendment.

In this case, although we were told the government would be more open and willing to co-operate with the opposition, once again, even though our amendments were totally reasonable and intended to correct certain shortcomings in the bill, not one of them was accepted. In fact, during the three or four meetings we had with witnesses, the committee heard some very interesting things about the bill's content, and more importantly, about some of its flaws. Unfortunately, although these flaws were pointed out to the government, it chose not to fix them. In the end, the only amendment that was accepted was a Liberal member's amendment that simply corrected an oversight in the bill. That is another common characteristic of omnibus bills.

The government claims this is not an omnibus bill. After all, it is only 179 pages long. After all, only 35 acts are amended, added, or corrected. However, it is undeniably an omnibus bill, and this means that it is impossible for the committee to properly study the bill and thoroughly analyze its content. Goodness knows that this bill contains important elements that deserve our attention, but unfortunately, we were not able to give it that attention.

As the opposition, we managed to draw the government's attention to a flaw in this bill, and the government is trying to rectify that at report stage. As far as employment insurance is concerned, 12 regions are being given the option of extending benefits. Again, that is an arbitrary number chosen by the government. On May 13, the Prime Minister made a statement that caught my attention. He announced that three other regions would be added: Southern Saskatchewan, Edmonton, and British Columbia Southern Interior. During clause-by-clause review of the bill, we were quite surprised to see that those three additions did not actually materialize. The government seemed to have completely forgotten its promise.

We did try to make a correction. Initially, we proposed a bill whereby all regions in the country would be eligible, including those in Quebec, where no regions are currently eligible. This was declared out of order by the Speaker of the House. Then, we tried to add an amendment that added all the eligible regions in the pilot project that was abolished by the Conservatives in 2011-12, which extended benefits by five weeks for regions with high unemployment. That amendment was also declared out of order.

We really tried to reach out to the government by presenting an amendment regarding the three regions that it had already announced would be added to the bill. That amendment was also ruled out of order because we did not have a royal recommendation. The interesting part of all this is that the government did not seem to know what we were talking about. The Liberals were completely confused. We asked the official who was there for more information. She was extremely helpful in answering our questions. However, in the end, we still did not get an answer and we do not know whether the government even realized that there was a problem with the provision or that it was failing to keep the promises it had made not during the election campaign, but two weeks before the committee examined the bill.

Most of this bill seems to be improvised. Some of the decisions set out in it are completely inconsistent with the promises that the current government made during the election campaign. We are now making amendments at report stage.

One of the changes we are recommending at report stage is to have the government respect and fulfill the commitment it made during the last campaign regarding small and medium-sized businesses.

In 2008, for the first time, the NDP brought forward the idea of decreasing the tax rate for small and medium-sized businesses from 11% to 9%. We did the same in 2011, and in 2015. Although there was not much that we supported in the Conservative government's last budget, to its credit, it actually announced a decrease to this tax rate from 11% to 9% over a period of four years. Therefore, it was an NDP commitment that the Conservative government decided to implement. We were thankful, but wanted it to be sped up by having it implemented over two years rather than four years. However, at least the gesture was there.

It is not often that all three major parties agree on a single measure, but that was the case for the small and medium-sized business tax cut. We all agreed on it. We all ran on that, including the Liberals.

However, in the first Liberal budget, it states that the tax cut will be frozen at 10.5%. The Liberals even took credit during the budget speeches for that decrease, which was in the previous budget. They basically took credit for not raising it to 11%. I found that disheartening. We brought this topic forward over and over again because small and medium-sized businesses expected it and really counted on that tax cut. They were planning for it because all three parties had agreed. I can say that not one single small and medium-sized business representative, either from the CFIB, my riding, or even other ridings, has applauded the Liberals for this. On the contrary, the comments were scathing. It is disappointing to see the Liberals trying to justify breaking this key electoral promise by talking about anything else.

Although I do not have much time left, I would like to also point out that the Standing Committee on Finance does not seem to understand the key role it has to play in our democracy. This is no reflection on the individual members of the committee, who have actually worked hard and asked good questions. However, the role of the finance committee, like all committees, is to hold government to account.

The government is proposing new laws and amending others. Unfortunately, as we have already said, this government does not seem to listen to the opposition. By introducing omnibus bills, the government is giving us very little time to examine extremely complex measures. That means that we cannot do our job properly, which seems to suit some government members just fine.

Take for example the recapitalization of banks. This measure is extremely important. Honestly, at first glance, I was in favour of it. However, pages 20 to 25 of the bill are extremely technical and they completely change the way that our banks, their shareholders, and depositors are protected if they run into difficulty. We barely talked about that. No witnesses appeared to talk about it. We heard from one official, Mr. Campbell, who was extremely helpful, but we did not have the opportunity to carefully examine, scrutinize, and analyze the ins and outs of that part of the bill, which is extremely important to the future of our country.

I do not think we have managed to do a good job in such little time. I know that Bill C-15 will pass, even though we are going to oppose it, since the government has a majority. However, I would like to tell the government that if it sincerely wants to keep its election promise to increase transparency, it should introduce budget bills that actually deal with budgetary issues. It should not introduce bills that include measures in another law, like Bill C-15, and that include sections that are 25 to 30 pages long on topics that are very important to our country's future. We hope that this government will learn from its mistakes.

Budget Implementation Act, 2016, No. 1

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

There are nine motions in amendment standing on the Notice Paper for the report stage of Bill C-15. Motions No. 1 to 9 will be grouped for debate and voted upon according to the voting pattern available at the table.

I will now put Motions Nos. 1 to 9 to the House.

The House proceeded to the consideration of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, as reported (with amendment) from the committee.

Veterans

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, it is an honour for me to participate in the adjournment debate, or what is known in parliamentary jargon as the late show, for the first time. I will learn how this works in the next few minutes.

I am also pleased to see that the Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence, the hon. member for Kanata—Carleton, is here. I hope that she will be able to give me some answers.

I am here to share some concerns that have been expressed by Canadians in general, not just veterans. The House will understand why. Recently, the minister introduced new financial benefits for veterans under Bill C-12, which unfortunately no longer exists because those measures have now been inserted into omnibus Bill C-15.

These amendments include increasing the disability award, expanding access to the higher grades of the permanent impairment allowance, and increasing the earnings loss benefit. Veterans tell me that these improved benefits are worthwhile, but that the government could have made a better decision. For example, veterans would have liked the government to invest more in mental health clinics, provide more assistance for families, such as military spouses, and improve help for the transition from military to civilian life.

This evening, I will talk about the fact that the disability award was increased and that the increase is retroactive to 2006. We are talking about approximately $3.7 billion that will be spent on these retroactive payments. This expenditure is highly questionable.

I am going to tell a story that explains why I think that we need to ask questions in that regard. One of my constituents came to see me. She earns about $100,000 a year. She was a soldier and she has hearing problems. Although she will not do so, if she were to apply for a disability award from the Department of Veterans Affairs, she would be eligible to receive a cheque for between $5,000 and $10,000. I think that everyone here will agree that this person, who earns $100,000 a year, does not need that money and that her loss of hearing does not prevent her from working.

Imagine how many cases like that there are in Canada and how many people, in the coming months, without thinking of their fellow soldiers, will apply for disability awards for physical injuries that do not necessarily prevent them from working. Under the law, they are eligible for that money and it is good that the government is trying to help them. However, when it comes to veterans, there are urgent needs in many other areas, including those I talked about earlier.

My question for my colleague from Kanata—Carleton is very simple. According to her estimates, how much money will be paid out retroactively to 2006 for hearing-related injuries?