Budget Implementation Act, 2016, No. 1.

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

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

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

Votes

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

The House resumed consideration of the motion that Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, be read the second time and referred to a committee, and of the amendment.

Speaker's RulingBudget Implementation Act, 2016, No. 1.Government Orders

May 5th, 2016 / 3:15 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

Before we go to resuming debate, I will just take a moment to briefly outline another matter that was raised earlier today.

During the debate on Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures—the bill that is currently before the House—I took under advisement a subamendment moved by the member for Rimouski-Neigette—Témiscouata—Les Basques. I would like to thank the member for New Westminster—Burnaby for his comments on the matter, and I am now prepared to rule.

Reasoned amendments allow a member to state the reasons for his or her opposition to second reading of a bill. Subamendments to reasoned amendments are permissible but, as the member for New Westminster—Burnaby pointed out in citing O’Brien and Bosc at page 534, “must be strictly relevant to (and not at variance with the sense of) the corresponding amendment and must seek to modify the amendment, and not the original question”.

In the Chair's view, the original amendment was the list of reasons explaining why the House should decline to give second reading to the bill, and not simply the phrase indicating that the House decline to do so, as the latter could be achieved by simply voting against the second reading motion.

To be admissible, a subamendment should not simply relate to the lead-in “that this House decline to give second reading”, but should instead relate to the reasons stated in the main amendment, either proposing to delete some of the reasons or to suggest additional reasons different from, but relevant to, the main amendment.

Accordingly, I declare the subamendment out of order and debate will continue on the amendment.

I thank hon. members for their attention.

Resuming debate, the hon. member for Beauce.

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

May 5th, 2016 / 3:20 p.m.
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Conservative

Maxime Bernier Conservative Beauce, QC

Mr. Speaker, I am pleased to take part in today's debate on the budget. I would like to point out that the Liberals confirmed in their most recent budget that, unfortunately, they still believe in the old Keynesian theory that governments can create wealth by spending more.

However, when the government injects money into the economy, one has to ask where that money is coming from. We know it does not grow on trees. The reality is that whenever the government takes another dollar from someone's pocket, it is a dollar that the person cannot spend or invest. When that happens, public spending increases and private spending decreases, and there is no creation of wealth.

Government borrowing does the same thing. Private investors who lend their money to the government will have less money to lend to private entrepreneurs. Public sector borrowing and spending increase and private sector borrowing decreases at the same time. There is no creation of wealth.

To be a bit more clear and explain it another way, it is like taking a pot of water from the deep end of a swimming pool and pouring it into the shallow end. As we know, this has no effect and makes no difference, except that a bit of water is wasted between the two. It is the same for the government. When it spends or borrows, it prevents the private sector from spending, and we know that the private sector is better at creating wealth.

What we find with the Liberal government’s budget is that it puts us in a difficult economic situation. The Liberals are going to run deficits and borrow money, somewhat like the Trudeau government of the 1970s.

It is important to tell the government that prosperity comes not when the government spends, but rather when entrepreneurs invest.

To kick-start the economy, the government needs to give entrepreneurs the means to create wealth. The government should put in place the best conditions to help entrepreneurs be more productive. To that end, it should reduce taxes for all entrepreneurs, reduce the regulatory burden on Canadians, and promote free trade.

Growth and progress are realized through more economic freedom and less government intervention in the economy. More public spending is not the solution to our social and economic challenges. On the contrary, it will drag us into a debt spiral. According to the government’s budget, we will be in that debt spiral for the next five years. Future generations will have to pay off that debt.

I would like to summarize the government’s economic logic. It is quite simple: if we are in a recession, spend; if we are not in a recession, spend so that we are in a recession.

That is the simplistic economic logic of this government. It does not understand that Keynesian spending logic does not create wealth.

I have a few questions for my Liberal colleagues.

What if the Liberal government's economics policy is deeply flawed and does not bring us prosperity? What if more government borrowing and spending are not the answer to our economic challenges? What if we wake up one day and realize that the deplorable state of Canada's finances is a predictable consequence of the current government's excessive borrowing and spending? What if the Prime Minister is wrong in his belief that the more the government spends and stimulates the economy, the less he needs to worry about the deficit? What if the Prime Minister is completely wrong and the budget does not balance itself?

What if the Minister of Finance is wrong and makes a huge mistake thinking we can spend our way to prosperity on borrowed money?

What if Canadians are right when they believe that we do not get richer when we spend money that we do not have? What if deficits do not create wealth but harm future generations? What if prosperity does not come from government spending but rather from entrepreneurs investing? What if more government spending and borrowing does not act as an economic stimulus but rather as an economic sedative?

What happens if my concerns are completely unfounded? Nothing. However, what happens if my concerns are justified and ignored? Nothing good for Canadians.

What I am saying right now is very simple. We cannot borrow money and spend money that we do not have and do not need to spend when we do not have an economic crisis or a recession. That is what the Liberal government is doing right now, and it will harm future generations.

I am very happy to have been able to participate in this debate on the budget. We ought to have a smaller government in Canada, a government that lives according to its means and allows future generations to progress and live in a country that is freer and more prosperous.

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

May 5th, 2016 / 3:25 p.m.
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Liberal

Darrell Samson Liberal Sackville—Preston—Chezzetcook, NS

Mr. Speaker, I thank my colleague for his most interesting speech, which was resolutely focused on the economy. I have a great deal of respect for him.

My father was an entrepreneur, a plumber and electrician. He often served as a municipal councillor as well. He had dealings with the community and with industry. As he would often say, it takes money to make money. You have to invest to make money. If you do not borrow, you cannot invest, and the best time to borrow is now, while interest rates are very low.

Is my colleague saying that small and large businesses should not borrow to invest in their economy and their work, in order to create more prosperity in the local economy as well as in Canada?

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

May 5th, 2016 / 3:30 p.m.
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Conservative

Maxime Bernier Conservative Beauce, QC

Mr. Speaker, what I am saying is that entrepreneurs are free to decide, and it is not up to the government to decide for them and interfere in the free market. If some want to invest, fine; if others prefer to wait, that is fine too. After all, they are the experts.

With regard to the government and the interest on the debt, my colleague says that interest rates are very low. However I would remind him that for every dollar of income tax sent by Canadians to the federal government, $0.10 goes to pay the interest on the debt. If we borrow and add more than $100 billion to the debt over the next five years, the $0.10 interest we are paying is going to rise to $0.11 and $0.12, and that is where the government loses its flexibility.

It is important to say this, because often people do not realize that today’s borrowing becomes tomorrow’s taxes. It is a shame that the Liberals want to tax future generations for today’s spending, which will not benefit people in the future.

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

May 5th, 2016 / 3:30 p.m.
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NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I listened with interest to the speech by my hon. colleague from Beauce, although I was not particularly surprised at it. We are still in the imaginary world of libertarian phantasmagoria.

I would remind my colleague that while private enterprise has a role to play and creates wealth and jobs, that is also because there is public infrastructure and companies and entrepreneurs can benefit from an educated and well cared-for population that has roads, highways, and clean water in the morning.

All of that is possible because we have social programs, because we redistribute wealth, and because we invest in public services, which support economic growth in general.

I am aware of the ambitions of my colleague from Beauce. If he does not believe in government, why does he want to lead a government?

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

May 5th, 2016 / 3:30 p.m.
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Conservative

Maxime Bernier Conservative Beauce, QC

Mr. Speaker, I believe in the federal government. I am a member of Parliament and was a member of the government for the past 10 years, and I am very proud of that. I believe in the role of the federal government. Its role should be what it was back when we lived according to our means.

Under this Liberal government, we are not living within our means, and that will have an impact on future generations. I believe in an effective federal government that is strong in its jurisdictions, but lives within its means.

I would like to close by quoting Paul Martin, the former finance minister. On February 22, 1994, he spoke about deficit, debt, and living within one’s means. I quote: “The debt and the deficit burden pose much more than an economic challenge. This is a moral issue too. What right do we have to steal opportunity away from our children...?”

This is what the Liberal government is doing. It is borrowing at the expense of future generations and preventing future generations and our children from living fully according to their opportunities, as the hon. finance minister, Paul Martin, said.

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

May 5th, 2016 / 3:30 p.m.
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Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Mr. Speaker, I know my colleague to be a strong advocate for balanced budgets and living within our means. I know he stays strongly connected to his riding in Quebec and has indeed been going across the country listening to Canadians. Could he tell us what he hears from those he has met in regard to the government's deficit budget?

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

May 5th, 2016 / 3:30 p.m.
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Conservative

Maxime Bernier Conservative Beauce, QC

Mr. Speaker, I am pleased to share that. I was in my riding last week. People told me they thought it was irresponsible for the government to have a huge deficit. Canadians are working hard for their money and they want to keep their money in their pockets. They know taxes will go up in the near future and they will have to pay for that.

Also, they see that the federal Liberal government wants to shrink their paycheques and expand the role of the government and government programs. That is not what people want. They want to have a government that will respect them, and that is not happening right now.

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

May 5th, 2016 / 3:35 p.m.
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Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, before I begin, I would like to say that I will be splitting my time with the member for Vancouver Quadra.

It is a privilege for me to rise today to speak in this chamber about the great riding of Surrey Centre. The city of Surrey is one of the fastest growing cities in the province of British Columbia. Each month, over 1,000 people move into it. At the current rate of growth, it is expected to eclipse the city of Vancouver in terms of population within the next 20 years. Because of the growth of Surrey, it is has become home to the most young people in the province of British Columbia as well as the most young families. That is why I am proud to return to Surrey and speak with my friends, neighbours, and colleagues about how budget 2016 will positively affect their lives.

Surrey Centre is home to young families who are keen on making their homes and lives in Surrey. As a national government, we have a duty and responsibility to support them when and where we can. The new Canada child benefit is our government's response to this. We are putting forward a more generous, simpler, and income-tested benefit that benefits more Canadian families than ever before.

I cannot tell members how many times in recent weeks I have heard from constituents in Surrey about having to pay taxes on their previous child benefits. I am pleased to see that our government recognized that this new benefit should be tax free, as it should. There will be no taxing of the Canadian child benefit.

On average, this new Canada child benefit means that nine out of 10 Canadians will receive more monthly money, more monthly benefits, than ever before. That means families in Surrey will receive more help toward child care and more money to put their children into soccer, hockey, or ballet.

The city of Surrey is also home to two of the greatest universities in the country. Simon Fraser University, the Surrey branch, celebrated its 50th birthday this year. It was designed by the eminent architect, Arthur Erickson, and was recently acclaimed as the best comprehensive university in the country. Along with Kwantlen Polytechnic University, both of these universities are helping to contribute to the excellence in research that Canada is known for.

Recently, I was able to meet with the presidents of both universities about our federal government's program for post-secondary institutions through the strategic investment fund, which will provide over $2 billion over the next three years to help accelerate infrastructure projects at universities and colleges across Canada. This means that universities like Simon Fraser can finally expand to meet the demand of a growing city like Surrey, and that Kwantlen Polytechnic can continue to offer more of the great programs that it is known for.

More than anything, I am thrilled to be a part of a government that recognizes that post-secondary education should remain affordable and accessible to all those who seek it. It means that when I return to Surrey, I can tell students that our government is taking action to ensure that post-secondary education is more affordable for students from low- and middle-income families, and that we will make it easier for students to repay their student debt.

However, I would be remiss to not speak about some of the many challenges and difficulties that Surrey faces.

As many in this chamber know, and have no doubt heard about in recent weeks and months, there is a violence and gang problem that has beset our city. Having been involved for over two decades in helping to ensure that at-risk youth in our communities have alternatives to a life of gangs and violence, I am honoured to be a part of a government that will champion a new strategy on how the federal government can best support communities and law enforcement in their ongoing efforts to make it harder for criminals to get access and use such weapons. Thus, it will reduce gun and gang violence in our communities. I am also proud of the exceptional hard work of the Surrey RCMP in addressing this problem in our community.

Being the fastest growing city in the province, Surrey also has challenges with meeting the growth in demand for public transit that meets the needs of our constituents. Our government recognizes that we must invest now and not later, and that is why we are putting forward $460 million towards public transit in British Columbia alone.

Canadians should be proud of our government putting veterans first. Budget 2016 proposes that we enhance service delivery for veterans by providing $78.1 million over the next five years. This includes reopening service offices in Prince George and Kelowna, and it also means opening an additional office in Surrey to ensure that veterans across the Lower Mainland can get access to the services that they deserve in their communities. We are reopening the veterans service centres the previous Conservative government closed. We are doing this not because we have to, but because it is the right thing to do.

Low-income seniors from my riding are happy to know that the guaranteed income supplement will now be increased by 10% for those single-income earners.

Surrey Centre is also home to British Columbia's regional headquarters for the Royal Canadian Mounted Police, our E Division. Our government recognizes that the RCMP's forensic laboratory services play a crucial role in supporting law enforcement investigation through forensic identification and analysis of evidence from throughout British Columbia and across Canada. This budget provides $60.4 million over five years for a new RCMP forensic laboratory to be built and located within the RCMP regional headquarters in Surrey Centre, British Columbia.

My constituents are very happy to know that the initial infrastructure funding will inject billions into much needed repair, delayed maintenance, and upkeep of our community's infrastructure, such as our community centre, our rec. centres, and our swimming pools. This is money that is past due and will create better social infrastructure and good-paying jobs in the next building season.

I want to close today by sharing how proud I am to be part of a government that recognizes the realities of the constituents of my riding. Our government has put forward a proposal in budget 2016 that recognizes and addresses the high cost of raising families; a proposal that helps the constituents in my riding get what they need, where they need it, and when they need it; a proposal that helps to address violence by guns and gangs through a new federal strategy; a proposal that ensures that veterans across the Lower Mainland and the province get the services that they deserve; and a proposal that ensures that Canada is a more fair and prosperous place to call our home.

Budget 2016 is good news for the people of Surrey, good news for British Columbians, and most of all, good news for Canadians.

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

May 5th, 2016 / 3:40 p.m.
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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Mr. Speaker, I thank the hon. member for his speech. It is always lovely to hear from a fellow British Columbian in this chamber, speaking up for the province we know and love.

I would like to ask the member specifically about a provision to the budget implementation act pertaining to the bank recapitalization regime, otherwise known as the bail-in. That particular provision takes up about 20%, if not 25% of the actual budget implementation act. I would like to know, has the member opposite heard from his constituents? Has he heard concerns regarding this?

Obviously, it sounds like a very eloquent regime. However, would the member agree that this particular kind of measure is untested in the G7, and I would say probably in the G20? Does he have any concerns about this type of legislation, and does he feel that more discussion needs to be made on this particular provision?

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

May 5th, 2016 / 3:40 p.m.
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Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, I think the bank recapitalization regime is consistent with international best practices and standards developed following the financial crisis. I think it will help enhance the bank resolution tool kit. It will support resilience of our financial sector. I believe this bail-in regime would apply only to Canada's largest banks and would allow authorities to recapitalize a failing bank by converting eligible long-term debt into common shares.

The government is introducing a legislative framework for that regime, and regulations and guidelines will follow.

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

May 5th, 2016 / 3:45 p.m.
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NDP

Jenny Kwan NDP Vancouver East, BC

Mr. Speaker, British Columbia has a robust small business community. Ninety-eight per cent of our economy comes from the small business community.

The current Prime Minister, during the election campaign, denigrated the small business community and pretty well called small businesses tax cheats. He flip-flopped and then promised to reduce the small business community's taxes down to 9%. In this budget, he failed to deliver on that promise.

I wonder whether the member for Surrey Centre, who has a robust small business community in his riding, would join with the NDP opposition to call on his own government to make good on the small business tax cuts that the Prime Minister promised during the campaign.

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

May 5th, 2016 / 3:45 p.m.
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Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, when I speak with my constituents and the small business owners in my riding, they say they want shorter travel times, better infrastructure, to get to and from their businesses faster, and a more robust economy. That is their first and foremost demand. They are very happy with the current budget, which is going to help them get to and from work and job sites quicker and allow their employees to get to and from job sites quicker through the public transit and transportation infrastructure investments that will take place.

That is what the small business community needs. It needs jobs and people to get to their jobs quicker. That is what they were demanding and that is the response I am getting.

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

May 5th, 2016 / 3:45 p.m.
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Vancouver Quadra B.C.

Liberal

Joyce Murray LiberalParliamentary Secretary to the President of the Treasury Board

Mr. Speaker, I have three children who were educated in their primary school years in Surrey, so I know the community quite well.

I would like to hear from the member what this budget offers, in his view, to alleviate the shortage of affordable housing and address housing prices in his riding and in the greater Surrey area.