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

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, I heard the member at the end of his speech refer to veterans and what is in the budget for veterans. However, I am mystified, because presumably some of the money to be spent in that budget is now going to be spent on lawyers taking veterans back to court, arguing the very same case that the Harper Conservatives were so roundly and rightly criticized for. I wonder why the member's government is bringing veterans back to court, which will have it spend dollars in—

[The Assistant Deputy Speaker, Anthony Rota]

I am sorry, but we have a point of order.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, it is just that the member should not reference the name of a member of the House.

[The Assistant Deputy Speaker, Anthony Rota]

I am sorry. I missed that.

I think the hon. member knows that, as he is shaking his head. I take it he apologizes for that.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

My apologies for that, Mr. Speaker. It is the previous government that I am referring to, and I am keen to hear the member's answer.

[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.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, it is a privilege to rise today to speak to Bill C-15, the budget implementation act.

I have spoken to many of my constituents with respect to the budget, and to say there is some concern among my constituents of Barrie—Innisfil is an understatement.

I spent nine years on city council in Barrie dealing with various budgets. I was a member of the finance committee.

Budgets are typically forward-looking documents. When I look at this document, and when my constituents who I have spoken to about the budget look at the document, there is one underlying theme that comes up regularly: Who is going to pay for this? To use the Liberal narrative, quite frankly the people who are going to pay for this are the middle class and anyone working hard to join the middle class.

One only has to look at the situation here in Ontario, my home province, to see some of the parallels to the mindset of unbridled spending that the current federal Liberal government has embarked on. They are very similar situations. It should not come as a surprise to anyone that they are very similar situations, because the very people who were running the premier's office in Ontario are now involved in the Prime Minister's Office. The mindset of debt and deficit spending is very evident not just in the budget but in some of the policies we have seen come from the Liberal government.

I would remind Canadians that the Ontario government is the largest sub-sovereign borrower on the planet. It is not second, not third, but the largest sub-sovereign borrower on the planet. The payment on the debt currently in Ontario is third only to health and education. It is an example of unbridled spending and debt that can occur. What we are seeing, quite frankly, is a 2.0 version happening federally that has happened in Ontario. The difference really is that there is just a bigger piggy bank for the Liberals to draw from. Add to that the green program, the unmitigated disaster and the costs associated with that. It is really something we are all going to be looking for. As I said earlier, budgets being forward-looking documents, the question for most Canadians is who is going to pay for this.

When we look at some of the promises the Liberal government made, it promised a small $10-billion deficit. We now know that this year that it is going to be $30 billion. We are looking at $150 billion as we move forward. We also heard about, for example, the revenue neutral tax breaks. We now know that those tax breaks are going to cost Canadian taxpayers $1.7 billion this year and $8.9 billion over the next six years. In fact, we are going to see taxes rise to the tune of $1.3 billion this year and $2.4 billion next year.

When the Liberals talk about the middle class and taxes, when they throw out the talking points and talk in platitudes about the middle class and how they are the party of the middle class, I would suggest, as I have before in the House, that what we are actually seeing is effectively middle-class tax fraud. What the Liberals are imposing on the middle class is tax fraud. It is a shell game.

I have said this before, and I will say it again, to make my point. What the Liberals give, the Liberals take back. We only have to look at the budget to figure that out. The fitness tax credit that most Canadians have used, to the tune $1.19 billion since 2006, is gone. The arts and fitness tax credit Canadians have benefited from, to the tune of $118 million or $119 million, is gone. Income splitting for families like mine, a typical middle-class family, is gone. TFSAs are gone as an option for saving. What the Liberals give, the Liberals take away.

On the issue of the OAS, and I think this is critical to discuss at this point, one of the reasons the OAS age limit was reduced from 67 to 65 was a matter of cost and sustainability.

In 2011, almost $38 billion more would have been spent to sustain the OAS. It would be $108 billion by 2020, and by 2030 it would cost almost $266 billion to sustain. In 2012, the Conservative government chose, in keeping with OECD recommendations, to increase eligibility from 65 to 67. It did this because this measure alone would have an estimated annual spending increase of $11 billion. Again, someone has to pay for that. Baby boomers, those born between 1946 and 1964, represented the largest age cohort in history. They retired. The cost of the OAS program was scheduled to balloon, as I said, to $38 billion in 2011.

When the OAS system was originally designed and implemented, the average life expectancy was much shorter. Today the average Canadian life expectancy is 85-plus. Seniors starting to receive the benefit at 65 will live 20 years more, greatly increasing the costs for working taxpayers.

According to Statistics Canada, the most recent projections estimate that more than one in four Canadians will be over 65 by 2036. When OAS was introduced in the 1960s, the ratio of active workers to pensioners was 7:1. Today, however, it is 2.5:1. That is not enough to support the massive cost to Canadians.

The finance minister himself wrote a book advocating later retirements. In The Real Retirement, he wrote:

If we were to retire three years later than we now do, any concerns about having adequate retirement income would practically vanish. It would also alleviate any shortages in the workforce due to the aging of the population.

Again, we have a finance minister who on one hand understands this but on the other hand, as finance minister, reverses his position. It begs the question: would the Liberals and the Liberal Party run their households the way they are running the country?

There were also some other issues with respect to the small business tax cut. On the issue of infrastructure, and I spoke about this before, while money sits to be handed out, people sit, as jobs cannot be filled unless projects begin, and projects cannot begin until the funding has been received.

The government can now, today, get this money out in a fair and equitable manner. We have seen members of the Liberal Party out and about in their communities making funding announcements.

One of the things the Liberal Party ran on was fair and equitable infrastructure investment in the country. Granted, it has made significant investments, but there is one way we can get that money out the door quickly, one way we can get the money out that is equitable. In fact, Mayor Nenshi, this past weekend, at FCM, spoke about the issue of the gas tax being a way to get that money out the door.

If the Liberal government wanted to, rather than delay, and already we are starting to see delays in the construction season due to the fact that the money is not going out the door, it could use the gas tax revenue. There is an existing formula in place.

I know that in my city, the city of Barrie, we receive $8 million a year in gas tax funding. The criteria is already set. The accountability system is already set for that gas tax money. In fact two weeks ago when I was in Vancouver, I met with the president of FCM. I met with the president of LUMCO in my role as urban affairs critic. Universally, every single one of them has suggested that the gas tax is the proper source for ensuring that infrastructure money is put out the door in a fair and equitable manner.

This budget, as I said earlier, is a shell game. I have statistics. I can show third party assessments of this budget and how it does not benefit wholly the middle class. I would suggest, finally, that the ones who benefit the most from the Liberal budget are in fact parliamentarians with respect to tax reductions. I think the same thing that holds in Ontario will hold true three and a half years from now. My constituents are looking at this, and I know that others across the country who voted Liberal did not vote for this.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, during the summer, we talked about giving the middle class a tax break. This legislation is what it is all about. Our teachers, factory workers, bus drivers, and others would be given a substantial tax break.

For the first time in a long time, what I am seeing is Conservatives lining up to vote against these tax breaks. How would the member explain to more than nine million Canadians that the Conservative Party is actually voting against tax breaks for our middle class?

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, to answer that question one would have to look at just who would benefit as the middle class. I know that the Liberals have used the narrative of the middle class to be the party of the middle class.

The fact is that Canadians know that the Conservative Party is the party of the middle class. We actually saw the lowest tax regimen in this country for middle-class Canadians in more than a generation. If members do not believe me, they can look at what Mr. David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, said when talking specifically about tax breaks and tax cuts. He said that there are 1.6 million families in this country who are earning $48,000 to $62,000 who would benefit from the middle-class tax cut by $51.

This is what I said earlier about this tax fraud, this narrative the Liberals are using that lower-income Canadians would benefit the most from this. They would not, in fact. Do members know who would benefit from it? The member for Winnipeg North would benefit, because his family would see a tax decrease of $813 as a result of the Liberals' measures.

How does the member explain to his constituents that he is actually getting a bigger tax break than those who are earning $48,000 a year?

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, I would just like to pick up on this discussion about the so-called middle-class tax cut. I would ask the member for Barrie—Innisfil to speak to the fact that this measure would actually only apply to incomes over $45,000 per year, and it would not even provide the maximum benefit until one reaches an income of $90,000 per year. I wonder if perhaps the member for Barrie—Innisfil could help us understand how the Liberal Party defines the middle class in Canada.

[John Brassard, Conservative, Barrie—Innisfil, ON]

That is a great question from my hon. colleague, because I am not sure that the Liberal Party really understands how to define the middle class, unless of course it defines it as the upper middle class being the one that would benefit the most from this.

I want to continue, and I am glad that hon. member talked about this. When we talk about tax reductions, when we look at families earning $62,000 to $78,000, we see that they would actually see a benefit of $117. Granted, $117 is a benefit, but to espouse the virtues of the tax cut the way the Liberals are is a false narrative. The Liberals are actually not telling the truth to most Canadians about what their middle-class tax cut would do, not to mention the fact, as well, that there would be a deficit created, as a result of this, of $1.7 billion this year and $8.9 billion over the next six years. That does not take into account the fact that the Liberals ran on a platform that this would be revenue neutral.

It would be $124,000 to $166,521 in tax benefits. Again, the members on the opposite side know full well that they would be the ones to benefit. Every member of this House, wrongly, would gain the most as a result of this tax decrease, to the tune, on average, of $813. This false narrative that somehow the middle class would benefit from this tax break is something most Canadians are starting to come to grips with, this shell game, this middle-class tax fraud the Liberals are perpetuating on Canadians.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I am pleased to speak this afternoon to Bill C-15, budget implementation act, 2016. I would like to focus my comments today on one particular area that is of great interest to me and that our government is dedicated to enhancing and that will lead to a stronger economic growth profile for our country, the field of innovation.

When I think of innovation, I look at my riding and in the city of Vaughan there are literally thousands of innovative companies. One that comes to mind is Mircom Group of Companies, a company that has been in existence for many years and whose owners are good family friends. The Mircom Group of Companies is the largest independent designer, manufacturer, and distributor of intelligent building solutions. It competes against U.S. giants like General Electric, Tyco, and Johnson Controls employing literally hundreds of Canadians. Over half of its products are exported outside of Canada to more than 95 countries. Mircom employs a highly skilled workforce, including scientists and engineers. It hires the best from Canadian universities.

This company is one example of a Canadian success story and it is an innovator. I would also like to add that I am proud to say that another company in my riding Vision Plastics, part of the Vision Group of Companies investing $150 million in Vaughan, will be employing literally 300 to 400 Canadians and is set to open this coming fall. I will have more to say on that in the months ahead.

Bill C-15 is a part of the legislative framework our government is attempting to put in place to encourage companies like this to start, to grow, to remain in Canada, and to succeed. That is what makes me happy about what our government is doing. In terms of its commitment to innovation, we are going in the right direction, a direction that will lead to better jobs, better benefits, a strong and growing economy, and a strengthened middle class.

What do we mean when we use the word “innovation”? Certainly it means different things to different people. I just cited an example of what innovation means in my community, but in the broader context, our government is daring to dream of doing something smarter, faster, and better to improve the status quo, to improve the quality of life in whatever way is possible.

Fundamentally we are trying to find solutions to the big problems, to the big issues that challenge us. That means social innovation, embracing the premise that a clean environment and a strong economy go hand in hand. It means understanding that some of our most important infrastructure is not only roads and bridges, but is also digital infrastructure in the context of a knowledge economy. It means moving beyond individual interests to see the collective opportunities.

Technology is fundamentally transforming the way Canadians access information, pay for goods and services, interact with each other, and build communities. At the same time, technology has now reached a new level. It is more than just communications. Technology has become a transformative tool in addressing global challenges like climate change and poverty. Where industrial progress once came at a cost to the environment, nowadays technology has emerged as our greatest tool in clean growth and healthy growth, and prosperous societies.

Our government has defined a new vision in 2016, a vision to build Canada as a centre of global innovation, renowned for its science and technology, creative and entrepreneurial citizens, and globally competitive companies offering high quality products and services, much like the Mircom Group of Companies. We are well positioned for this. We have world-leading research institutions, creative and innovative entrepreneurs such as the Mircom Group of Companies, businesses, and commercial organizations that can transform breakthroughs in the laboratory into products that enhance the lives of millions. That is the lives of millions of Canadians and also the lives of people around this earth that we inhabit.

Canada's innovative society already creates jobs for the middle class, enhances homegrown talent, and helps companies expand beyond our borders. However, we can and we will do much more. What is now an emerging economic opportunity will become the foundation of a modern 21st century Canada. We will transform our economy from one that depends on a few resources to one whose resources are as infinite as our diversity, creativity, and talent.

Through 2016 and 2017, we will define a bold new plan, the innovation agenda. Bill C-15 is a part of that blueprint to get to the innovation agenda. This will be a plan for change. It will define clear outcomes and pinpoint milestones toward achieving them. It will be a cross-government effort, drawing on Canadian and international experts in clean technology, health sciences, advanced manufacturing, digital technology, resource development, and much more.

It is important for us to be leaders in this field. We all hear that word, ecosystem. The ecosystem is important. In prior periods there may have been an auto plant where suppliers would co-exist in the surrounding area. However, today that has changed. Today with an ecosystem, we may have many small companies operating in clusters throughout the world and we need to be at the forefront of that. We need to be a part of that. That is what is going to create a strong and growing economy and strengthen our middle class.

To help us realize this vision, budget 2016 proposes several interim measures to promote research and accelerate business growth. It would focus new federal support for science on world-class discovery research, maintain funding for the commercialization of promising scientific discoveries, begin to orient federal business support toward those firms with ambitions to grow, and build a better evidence base to identify gaps, evaluate performance, and inform future decisions.

The rules are changing around us. In the old bricks and mortar economy, a bigger factory meant not just more output in wealth but more jobs. That is not the case in the new digital economy. We need to enable and support this change. We also need to ensure that we do so mindfully and in a way that does not stifle innovation.

The innovation leaders are the future and must be equipped with the skills they will need to succeed. Post-secondary and other research institutions are the front-line agents in fostering science and research excellence. They help train the Canadian workforce of tomorrow today. They help train my young daughters. They also help to create the knowledge base necessary for the private sector and policy-makers who are looking to build a thriving and clean economy. To ensure that these facilities continue to support our researchers and innovators, budget 2016 would invest up to $2 billion over three years in a new post-secondary institutions strategic investment fund.

If investing in the spaces that enhance our innovative potential is the first step, the second step is most certainly investing in Canadian researchers themselves, particularly those on the cusp of new discoveries. In Canada, this funding typically flows from federal granting councils, which include the Canadian Institutes of Health Research, the Natural Sciences and Engineering Research Council, and the Social Sciences and Humanities Research Council. These councils already receive $2.8 billion annually to support research and training of highly qualified people at universities and colleges across the country. This year and going forward, I am proud to state that our government would provide an additional $95 million to support discovery research, the highest amount of new annual funding in over a decade.

To ensure that federal support for research, including through the granting councils, is strategic and effective, we will undertake a comprehensive review of federal support for fundamental science. We want to be sure that we are providing the right support to the right leaders and that fields of research reflect shared Canadian priorities.

Our government will also continue to support Canada's strength in genomics, the study of the entire genetic code that is fuelling innovations across a number of sectors. We would provide $237.2 million over the next four years to support the pan-Canadian activities of genomics.

Well before genomics, Canadians carved out a special expertise in stem cell research. It started over 50 years ago when two of Canada's own doctors proved their very existence. Since that time, stem cell research has evolved into one of the world's greatest promises, with significant implications for medical treatments, commercial products, and public policy. We would provide up to $12 million over two years in support of the stem cell network so it could continue to provide bridges that connect researchers and professionals through training and outreach activities.

To conclude, in the 21st century global economy, Canada needs to be innovative to be a leader. We need to be leaders. Our businesses need to be fostered and encouraged. We need to embrace the world of science, technology, engineering, and math. We need to diversify our economy to enable growth and prosperity throughout the country. We need to turn the page on the last 10 years.

In addition to these goals, I believe that Canada has a strong foundation to build upon. We have one of the best educated populations in the world. We have one of the highest university investments in research and development. We have one of the world's best investment climates. We are a leading edge of global trade.

Let us be proud of Canada.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, what my constituents and I have significant concerns about in the budget is the elimination of the small business hiring credit. It is hard for me to understand why the government would eliminate a measure specifically aimed at helping small businesses hire more people. Also of concern is the movement away from the election commitment made by the Liberal Party, as well as all parties in this place in fact, to follow up with the commitment to lower small business taxes. Small businesses will effectively experience a tax increase.

Specifically, on the elimination of that hiring credit, in light of the things he said in his speech, and good intentions no doubt, I wonder if the member could explain these policies.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I would like to add a few comments specifically with respect to small business.

First, in the foreseeable future there will be EI reductions for small businesses. Therefore, small businesses will benefit from employment insurance reductions on their premiums. That can be a great thing for small businesses.

Second, we understand that small businesses are the backbone of the economy. We would like them to scale up and grow. However, we also need to have a healthy middle class and a strong demand for small businesses to prosper. That is what our budget aims to do. It aims to grow the economy by providing middle-class tax cuts, which now currently benefit nine million Canadians. We will be introducing the child Canada benefit, which will benefit nine out of 10 families. They will spend their money, and will spend their money at small businesses to help them grow and prosper as well.

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, the member for Vaughan—Woodbridge spoke about the role of post-secondary education in the innovation economy. The main way in which the federal government supports post-secondary education is through the Canada social transfer to provinces, which helps to fund universities. I was struck by the fact that the Canada social transfer in budget 2016 is exactly the same going forward as what was projected in budget 2015. Therefore, we are not seeing any increase in funding for post-secondary education from the new government.

I wonder if the member for Vaughan—Woodbridge could explain that and give us some sense of when the government might actually provide a higher level of federal funding for our universities and colleges.