Budget Implementation Act, 2016, No. 2

A second 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.

Part 1 implements certain income tax measures proposed in the March 22, 2016 budget by
(a) eliminating the eligible capital property rules and introducing a new class of depreciable property;
(b) introducing rules to prevent the avoidance of the shareholder loan rules using back-to-back arrangements;
(c) excluding derivatives from the application of the inventory valuation rules;
(d) ensuring that the return on a linked note retains the same character whether it is earned at maturity or reflected in a secondary market sale;
(e) clarifying the tax treatment of emissions allowances and eliminating the double taxation of certain free emissions allowances;
(f) introducing rules so that any accrued foreign exchange gains on a foreign currency debt will be realized when the debt becomes a parked obligation;
(g) ensuring that amounts are not inappropriately received tax-free by a policyholder as a result of a disposition of an interest in a life insurance policy;
(h) preventing the misuse of an exception in the anti-avoidance rules in the Income Tax Act for cross-border surplus-stripping transactions;
(i) indexing to inflation the maximum benefit amounts and the phase-out thresholds under the Canada child benefit, beginning in the 2020–21 benefit year;
(j) amending the anti-avoidance rules in the Income Tax Act that prevent the multiplication of access to the small business deduction and the avoidance of the business limit and the taxable capital limit;
(k) ensuring that an exchange of shares of a mutual fund corporation or investment corporation that results in the investor switching between funds will be considered for tax purposes to be a disposition at fair market value;
(l) implementing the country-by-country reporting standards recommended by the Organisation for Economic Co-operation and Development;
(m) clarifying the application of anti-avoidance rules in the Income Tax Act for back-to-back loans to multiple intermediary structures and character substitution; and
(n) introducing rules to prevent the avoidance of withholding tax on rents, royalties and similar payments using back-to-back arrangements.
Part 1 implements other income tax measures confirmed in the March 22, 2016 budget by
(a) allowing greater flexibility for recognizing charitable donations made by an individual’s former graduated rate estate;
(b) clarifying what types of investment funds are excluded from the loss restriction event rules that otherwise limit a trust’s use of certain tax attributes;
(c) ensuring that income arising in certain trusts on the death of the trust’s primary beneficiary is taxed in the trust and not in the hands of that beneficiary, subject to a joint election for certain testamentary trusts to report the income in that beneficiary’s final tax return;
(d) clarifying that the Canada Revenue Agency and the courts may increase or adjust an amount included in an assessment that is under objection or appeal at any time, provided the total amount of the assessment does not increase; and
(e) implementing the common reporting standard recommended by the Organisation for Economic Co-operation and Development for the automatic exchange of financial account information between tax authorities.
Part 1 also amends the Employment Insurance Act and various regulations to replace the term “child tax benefit” with “Canada child benefit”.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed or confirmed in the March 22, 2016 budget by
(a) adding certain exported call centre services to the list of GST/HST zero-rated exports;
(b) strengthening the test for determining whether two corporations, or a partnership and a corporation, can be considered closely related;
(c) ensuring that the application of the GST/HST is unaffected by income tax amendments that convert eligible capital property into a new class of depreciable property; and
(d) clarifying that the Canada Revenue Agency and the courts may increase or adjust an amount included in an assessment that is under objection or appeal at any time, provided the total amount of the assessment does not increase.
Part 3 implements an excise measure confirmed in the March 22, 2016 budget by clarifying that the Canada Revenue Agency and the courts may increase or adjust an amount included in an assessment that is under objection or appeal at any time, provided the total amount of the assessment does not increase.
Division 1 of Part 4 amends the Employment Insurance Act to specify what does not constitute suitable employment for the purposes of certain provisions of the Act.
Division 2 of Part 4 amends the Old Age Security Act to provide that, in the case of low-income couples who have to live apart for reasons not attributable to either of them, the amount of the allowance is to be based on the income of the allowance recipient only.
Division 3 of Part 4 amends the Canada Education Savings Act to replace the term “child tax benefit” with “Canada child benefit”. It also amends that Act to change the manner in which the eligibility for the Canada Learning Bond is established, including by eliminating the national child benefit supplement as an eligibility criterion and by adding an eligibility formula based on income and number of children.
Division 4 of Part 4 amends the Canada Disability Savings Act to replace the term “child tax benefit” with “Canada child benefit”. It also amends the definition “phase-out income”.
Division 5 of Part 4 amends the Royal Canadian Mint Act to enable the Royal Canadian Mint to anticipate profit with respect to the provision of goods or services, to clarify the powers of the Royal Canadian Mint, to confirm the current and legal tender status of all non-circulation $350 coins dated between 1999 and 2006 and to remove the requirement that the directors of the Royal Canadian Mint have experience in respect of metal fabrication or production, industrial relations or a related field.
Division 6 of Part 4 amends the Financial Administration Act, the Bank of Canada Act and the Canada Mortgage and Housing Corporation Act to clarify certain powers of the Minister of Finance in relation to the sound and efficient management of federal funds and the operation of Crown corporations. It amends the Financial Administration Act to provide that the Minister of Finance may lend, by way of auction, excess funds out of the Consolidated Revenue Fund and, with the authorization of the Governor in Council, may enter into contracts and agreements of a financial nature for the purpose of managing risks related to the financial position of the Government of Canada. It also amends the Bank of Canada Act to provide that the Minister of Finance may delegate to the Bank of Canada the management of the lending of money to agent corporations. Finally, it amends the Canada Mortgage and Housing Corporation Act to provide that the Bank of Canada may act as a custodian of the financial assets of the Canada Mortgage and Housing Corporation.

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

Dec. 6, 2016 Passed That the Bill be now read a third time and do pass.
Dec. 5, 2016 Passed That Bill C-29, A second 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] .
Dec. 5, 2016 Failed
Dec. 5, 2016 Failed
Dec. 5, 2016 Failed
Dec. 5, 2016 Passed That, in relation to Bill C-29, A second 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 report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third 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 stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Nov. 15, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Nov. 15, 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-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, since it proposes to continue with the government’s failed economic policies exemplified by and resulting in, among other things, the current labour market operating at “half the average rate of job creation of the previous five years” as noted in the summary of the Parliamentary Budget Officer’s Report: “Labour Market Assessment 2016”.”.
Nov. 15, 2016 Failed That the amendment be amended by adding after the words “exemplified by” the following: “a stagnant economy”.
Nov. 15, 2016 Passed That, in relation to Bill C-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 11:55 a.m.


See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I am interested to hear my colleague from Alberta talk about what is not in the budget for energy workers. I would put it to him that I would like to see energy workers in Alberta working in projects supported by Unifor and the CLC, such as to improve our refinery capacity.

We spend much too much time in this place, as my hon. friend from Winnipeg just did, imagining that somehow Canada's economic future rests in getting raw resources out of this country as quickly as possible to jobs in other countries, for other refineries.

In the 1970s, we had 40 refineries in this country. We now have 17. If they build the Kinder Morgan pipeline, that Chevron refinery in Burnaby will likely close because it cannot process raw bitumen, but the Kinder Morgan pipeline will be shipping raw bitumen that Chevron cannot handle to export markets instead of creating jobs in Canada. That is why Unifor opposed the Kinder Morgan pipeline.

Would my friend from Alberta agree with me that this country ought to start figuring out what to do to create sustainable, long-term jobs in ancillary infrastructure rather than focusing on rip-and-strip exports?

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 11:55 a.m.


See context

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, I do not think I can call what Albertans do rip and strip. Do we accuse the lentil industry of not making soup in Canada because it found markets overseas to send upgraded lentils to? Do we accuse farmers exporting wheat of ripping and stripping from the natural landscape because they will not produce bread here and instead export their wheat to other countries?

The history of Canada is one of exporting our resources, especially in a margins-based business like the refineries. We have the Alberta government now proceeding with the expansion of the North West upgrader, a project that a former energy minister, a former boss of mine, is saying could put the Albertan taxpayer on the hook for up to $26 billion. Simply put, refining is a margins-based business. It is a difficult one to be in. It is a very local market. We cannot simply have large refineries refining product to ship across vast distances. That is one of the reasons we do not have private companies running to build refineries. It takes thousands of workers. It is a huge expense when we have refineries sitting idle in North America. It is easier simply to ship a product and refine it there for their markets.

This is a question for private companies to undertake. The Alberta government is undertaking it right now and it is a very questionable project for the taxpayer.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 11:55 a.m.


See context

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Mr. Speaker, I am privileged to rise on behalf of the hard-working and conscientious residents of my riding of Windsor—Tecumseh, who join our fellow Canadians everywhere in expressing our dismay at yet another budget implementation bill. It is the second since March of this year and, yes, it tries to push through more than a dozen acts in 234 pages in one bill, denying the proper study required, which is really unfortunate and disrespectful of the work we do in the House.

In the interests of time, I will not elaborate on the subterfuge of omnibus bills but will, instead, direct interested Canadians who are listening today to look up the reactions of not just my NDP caucus of the past but that of the Liberals when the previous Conservatives surreptitiously forced controversial agendas by abusing the omnibus method.

Indeed, it is imperative to immediately speak against the crucial issue of selling off Canada's assets in order for the Liberals to appear capable of managing deficits. This subterfuge, which is the privatization agenda, is being unscrupulously advanced.

This privatization scheme is to our great peril, as the actions of a previous Liberal government have proven with the sell-off of the Port of Churchill; as Ontario's manufacturers, institutions, small businesses, and residents, who are all facing out-of-control hydro costs, can attest to; and as our own health care system can demonstrate. It has been proven that privatization is the problem and not the solution.

Canadians were hoping for better from the current government. I and my NDP caucus agree that we do need to make new investments in infrastructure, and we anticipated the roll-out of a long-awaited infrastructure plan that our home towns, cities, and counties could applaud along with us. We know how important it is for front-line municipal governments to have the means to address the staggering infrastructure deficits across this country.

We were intrigued, in an encouraging way, when the mandate letter of the Minister of Infrastructure directed that the public-private partnership, or P3 screening for infrastructure projects, would be removed. Indeed, one of the top priorities is, to quote from the mandate letter:

making changes to the Building Canada Fund so that it is more transparent and approval processes are sped up, which would include removing the P3 screen for projects.

In hindsight, maybe we should have been more cynical and more suspicious of these sunny ways. Now we see the Liberals moving with a scheme to privatize public infrastructure, and that needs to be stopped in its tracks.

Never during the election did the Liberals suggest that they would invest in Canadian infrastructure by privatizing these public assets. Then, in budget 2016, they mused about exploring asset recycling, a deceptive term that really means privatization.

Recently, the finance minister's handpicked economic advisory council, which is made up of many advocates for private investments in infrastructure, has now recommended implementing an infrastructure bank and asset recycling, including private airports, toll highways and bridges, power transmission, and natural resource infrastructure. Liberals are clearly going ahead with the Canadian infrastructure bank, which will largely be funded with private funds that will be demanding a high rate of return, which will be provided by the privatization of revenue streams of this infrastructure such as tolls and user fees.

I am alarmed that this morning, during our debate, there are not more members of the House who have an understanding of what is going on here. Everyone needs to buckle down and read this. These are real impactful statements that are foreboding for the announcements that are to come very quickly.

The Federation of Canadian Municipalities has expressed serious concerns that the Liberals would take the money promised for housing and local infrastructure and, instead, put it into their new infrastructure bank scheme, meaning far less money for local priorities. Canadian communities were counting on this money to address urgent infrastructure needs, but now they may face red tape and new privatization hurdles instead of what was promised.

The fact is that, for private investors to want to take part in the Liberals' now questionable infrastructure bank, the scheme depends on projects creating new revenue streams, which means Canadians will end up paying the price through user fees and toll roads. The hopeful, progressive language in the mandate letter, along with the Liberals' campaign platform, is indeed a fluffy ball of cotton candy. Now we hear backlash from recent reports that poised the Liberals to move ahead with plans for selling off existing public infrastructure, like airports, ports, and bridges.

The CEO of the Vancouver Airport Authority said in The Globe and Mail, in reaction to the flywheel investment recommendations, “If you get a big cheque, that’s great, one time, but now there’s going to be a company run by a pension fund and an investment bank that is going to be taking a huge amount of money out of the airport to repay their investment”.

Once people begin to realize that privatization is behind asset recycling, which is happening, Liberals have created a more puffy ball of cotton candy, which has given us the term I just mentioned, “flywheel for reinvestment”. It gets better. A flywheel for reinvestment catalyzes the participation of institutional capital in existing assets. Is that not wonderful? Why do they want to sell off the valuable infrastructure that Canadians' hard-earned dollars built? It is to pay for their budget shortfalls.

The Liberals plan to take credit for infrastructure money they did not spend, while leaving Canadians to pay the price through things like new user fees and tolls. The Liberals never said a word about privatization during the election. They never explained to Canadian provinces and municipalities that they really proposed a flywheel of reinvestment when they spoke of a Canada infrastructure bank.

What we hoped for and recognized is that a Canada infrastructure bank would serve an agreed purpose as a smart and timely economic stimulant that would help provinces, territories, and municipalities access lower federal interest rates. Little did we know that this was so far from the concept envisioned by the Liberals.

Faced with the dual problems of declining investment and aging infrastructure, the Federation of Canadian Municipalities has estimated that Canada's municipal infrastructure deficit is $127 billion and will grow by $2 billion annually. We can see that investing in public infrastructure has its clear merits, and we are compelled to do so. Including job creation and economic stimulus, it addresses the repairs and upgrades our communities need on an ongoing basis.

Our current economic conditions present compelling reasons for investing in infrastructure now, and the Liberals have never presented their stance on economic stimulus to include a fire sale of federal assets. Canada has an opportunity to take advantage of historically low long-term interest rates and clinch a policy to accelerate the rate of investment in public infrastructure that it promised. This is a nightmare.

Flywheel privatization means the sell-off of more public assets to pay for public infrastructure and private companies that will profit from our use of public services. We have seen countless times what that means: cutting off sources of revenue for government, enriching private investors, and burdening the public with the added costs for services, along with the financial losses of government.

There is only one taxpayer, but there are plenty of other ways to generate revenue, such as restoring Canada Post. The NDP also champions the closing of tax loopholes and cracking down on offshore tax dodging, not taking advantage of ordinary Canadians who keep getting betrayed by this government.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:05 p.m.


See context

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, I would like to thank my colleague for an excellent speech and for taking the time to read into the details of this document. It is very disturbing when we talk about the infrastructure bank that is going to be created and the asset recycling principle. This is what it says in proposed new section 42.3(1) about the minister's powers:

The Minister may, for the sound and efficient management of the Consolidated Revenue Fund, lend money by way of an auction on any terms and conditions that the Minister considers appropriate.

We are talking about the minister doing cash for access with his Liberal buddies and lobbyists, the same minister who, starting with a $10 billion deficit, ran it to $30 billion and is now running it further, so I wonder if the member has any faith in the government to not waste Canadians' infrastructure assets.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:05 p.m.


See context

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Mr. Speaker, it actually appeases me to a certain extent to know that other people are starting to read between the lines and raise these alarm bells, each for our own reasons.

As a matter of fact, the proposal of an infrastructure bank is just one way, as well as the chapter that was quoted by the member, that we are undermining the real work of the government and the initiatives that we have to take. We have a role and a responsibility, and the use of public assets is not the way to go.

In terms of transitioning to a green economy, to which the government has made indications it will commit, we are undermining that, and we are spinning ourselves backwards here. I hope more people will be able to focus on the merits of a real infrastructure bank, and not be confused with this scheme that just entices private investors to use our—

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:10 p.m.


See context

The Deputy Speaker Bruce Stanton

Questions and comments, the hon. Parliamentary Secretary to the Government House Leader.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:10 p.m.


See context

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, I wonder if the member believes there is merit in a national government working with the different stakeholders, actually consulting with them on a wide spectrum of issues that would deal with the infrastructure situation we have in Canada.

I would cite, for example, NDP governments in the province of Manitoba looking for P3 and coming up with legislation, and looking at ways in which the private sector could be involved in infrastructure. NDP governments have actually sold off government properties also.

The point is this. Should the national government actually demonstrate any interest in working with the different stakeholders, if the stakeholders are coming to Ottawa saying they want a national government? Is there an obligation, from her perspective, for Ottawa to be listening to what provinces and cities are saying with respect to infrastructure?

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:10 p.m.


See context

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Mr. Speaker, the quick answer is yes. They should be consulting, but not for $1,500 a ticket.

What we need to do is have a real, meaningful consultation process. These are the lines we always hear. This has been done. We know that this process, the consultation that has taken place, and the things that have been rolled out now indicate to us that we do have an investment bank scheme. However, what kind of consultation has taken place? It is nice for me to tell the House what I think should happen. It is a little late. The member should read his Bill C-29.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:10 p.m.


See context

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, I think all Canadians know we have a very sluggish economy right now. The Bank of Canada recently revised our growth downward from 1.3% to 1.1%. We have a jobless environment, and trade has been really sluggish for the last several years now.

The Liberals came into power telling Canadians during the campaign that they would run three modest $10 billion deficits and balance the budget in the fourth year. The reality is that they ran a $30 billion deficit in their very first budget, and they plan on running another five of them.

They promised Canadians that their recipe for dealing with this was to build public infrastructure, not sell it. Therefore, my question is about asset recycling. They make it sound as if privatization is an environmentally advantageous step. What does my hon. colleague think about the government's plan to sell public assets like airports that make money for Canadians, instead of building public assets, as they promised Canadians during the election?

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:10 p.m.


See context

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Mr. Speaker, I appreciate my hon. colleague's question and his comments with regard to the real profound impact of what is being suggested here with asset recycling. The privatization of public assets is also going to open the door to these investor state challenges that we are seeing coming up, not just under NAFTA but now under CETA and potentially under the TPP.

This is counterintuitive to what the platform has been for the Liberal government. How a government stimulates an economy and brings public assets to fruition is not through privatization. As a matter of fact, that erodes and leaves Canadians worse off than they were before.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:10 p.m.


See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, it is an honour to rise in the House today to speak to Bill C-29. I have been listening to all the debate that has been taking place, and I note that we as members of Parliament seem to be debating lots of different things all at once, and not necessarily always Bill C-29, especially on a day such as today when we are eagerly awaiting the Minister of Finance's update.

Obviously today we are anticipating the fall update on the economy and the state of public finances. I look forward to that. Although I have the opportunity to deliver a speech now, I plan to take part in the lockup on the economic update.

We know that any minute now we will be getting additional financial information from the Minister of Finance, and some of the media reports that foreshadowed what we may see in that report have become part of this debate as if they were in Bill C-29. They are not, so we do not know much about what will be proposed. There are concerns, as many colleagues have raised, about what might be proposed around infrastructure, what might be proposed around specifics of an infrastructure bank. It is not in Bill C-29. We are also talking today about the budget document itself, and much of what is in the budget document is not in Bill C-29.

Let me just clarify for parliamentarians and those who may be watching us today across the country what Bill C-29 is.

I try to be as fair as possible in all circumstances, and I railed against the omnibus budget bills of the previous government such as the spring omnibus budget bill of 2012, Bill C-38, which changed more than 70 different laws and regulations and abolished important institutions of public policy such as the National Round Table on the Environment and the Economy. It did many things that were never referenced in the budget. It extended itself well beyond what a budget should usually do. This was the spring omnibus bill of 2012. The fall omnibus bill was Bill C-45, and it completely gutted the Navigable Waters Protection Act, while the spring omnibus bill gutted the Fisheries Act and the Canadian Environmental Assessment Act.

I reflect on that just to say that there are different kinds of omnibus bills. There are illegitimate omnibus bills and there are bills that take into account many different measures but all flow from the budget. This is in the category of legitimate omnibus bills. There is nothing in here that is not required by what was in the budget document that we received last spring. Last spring's budget set out changes, particularly to the Canada child benefit. It set out changes to various aspects of the Income Tax Act. If Canadians were to pick up Bill C-29 and read it, I do not think I am making too much of a stretch to say that they would find nothing that would be alarming.

There are provisions to begin to understand how we measure carbon emissions in terms of emissions allowances, how taxpayers would account for that, and how Revenue Canada and the Department of Finance would account for that. There are certainly new rules for charities and extensions for what kinds of donations could be considered charitable donations. There are provisions that are purely to do with the tax code, as one would hope when one is looking at a budget bill.

It is not an illegitimate budget bill, but it does of course allow us to turn our attention to the budget and to reflect on what was there and what was not there in relation to the promises made in last year's campaign.

We are just about at the one-year mark for this new administration and it is fair to reflect at the one-year mark on policies related to budget matters today, so I will stay within the frame of budgetary matters in my presentation. However, I have to say, in providing commentary on Bill C-29, and I want to be honest with Canadians, there is nothing here that gets me worried or upset except for what is missing. I want to be clear about that.

What is missing is that the Liberal platform last year committed to getting rid of subsidies to fossil fuels. There were really only three bullet points under the Liberal platform commitment to climate action.

One bullet point was that they would attend at Paris and negotiate. The Liberals did that and they did it superbly. The second was that they would put in place a national carbon price, and that is a work in progress. I bemoan the fact that the starting price is $10 a tonne but the architecture of it is fair and will only top up those provinces that have failed to define how they want to price their emissions.

This missing piece really deserves much more attention.

The commitment was clear that subsidies for fossil fuels would come to an end. The 2016 budget on page 221 commits until the end of the period in which the previous government had already committed subsidies for a new class of subsidies for liquefied natural gas in 2015. Some may say that LNG, liquefied natural gas, is a fairly clean burning fossil fuel but when it comes from fracked gas, which the LNG industry in British Columbia is projected to come from, it has the same carbon footprint as coal. Seeing a provision in the legislation that would continue this well into the future is a concern. That should come to an end much sooner.

We also were promised a lot of spending on infrastructure but when we look at the actual budget figures, only one-tenth of what is promised on infrastructure will occur before the next election. I really am keen to hear what our finance minister is about to announce later today. If we are trying to stimulate the economy through investments in infrastructure, then we really have to make those investments in infrastructure and we have to do it sooner rather than later. We have only one chance of the money flowing to things like public transit, which we urgently need.

There is reference in the budget to a small amount of money over a two-year period for examining what we need to improve Canada's east-west electricity grid. We need that urgently. Canada is a big country and we tend to have far too many interprovincial barriers. We are familiar with talking about interprovincial barriers to trade but we do not think so much about the interprovincial barriers to electricity. Why is it that provinces struggling to go off coal are having trouble buying renewable energy from the province next door? We really do need to invest in what is a real nation building project. It would create jobs and the fastest route to de-carbonizing our electricity grid is to improve access across provincial boundaries.

We can look at the absurdity right now of what is going on in Newfoundland with respect to Muskrat Falls. Nalcor is building Muskrat Falls, and CEO Stan Marshall has already referred to Muskrat Falls as a boondoggle that should never have been built. Newfoundland will be coming cap in hand to the federal treasury to look for money to bail out that project but it will find that it is throwing good money after bad. Nova Scotia says it cannot shut down coal until it gets an underwater cable all the way from Muskrat Falls.

Hydro-Québec sits right next to the Atlantic provinces. Hydro-Québec's electricity could get exactly as far as Moncton, turn a switch, open up the electricity grid, and work out the financing. Part of the problem may be that Manitoba Hydro and Hydro-Québec prefer to sell south to the United States because sales to the U.S. do not affect their equalization payments. If we start thinking like a country, we might figure out how to maximize the benefit from electricity generated in one province and ease access in another.

Going off fossil fuels as quickly as possible should be a national goal, while at the same time ensuring that the fossil fuels we use in Canada are the ones manufactured and refined in Canada. We have the beginning of a made-in-Canada solution for our energy, for our workers, for the Alberta economy, if we are willing to invest in refineries instead of pipelines and take away the subsidies to fossil fuels as was promised.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:20 p.m.


See context

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, I do share my colleague's concern about the slow pace of infrastructure spending. That $3 billion that the government has spent so far was spent on projects that were approved in the Conservative Party pipeline. Nothing else has come forward. I wonder if the member is aware of that.

The motion that was passed asking for a greenhouse gas emissions analysis on every infrastructure project, which the government supported, means that all of the infrastructure projects my colleague is talking about for public transportation and roads will not happen because they will not meet the criteria because the criteria has not even been set. I wonder if she could comment.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:20 p.m.


See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I have seen it in the past and many parliamentarians have forgotten that there was a greenhouse gas screen on infrastructure projects during the previous administration under former prime minister Paul Martin. It did not slow down infrastructure projects, not to my recollection. I have only been a member of Parliament for five years and I am plagued with a good memory. I have to say I remember when these things worked, so knowing that they worked in practice, I think they will work again.

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:25 p.m.


See context

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, I much enjoyed my hon. colleague's speech. She mentioned two things that made my ears perk up. First was the nation building projects, where I think back to the railway and things like that and specifically now the energy east pipeline would be a nation building project, taking product from Albert and bringing it to a refinery in New Brunswick, displacing foreign oil.

I wonder if the member is supportive of that project. Also equalization is new to me, as is this issue of selling electricity to the United States in order to maintain equalization payments. Would she agree that the equalization payments are sometimes a false incentive?

Budget Implementation Act, 2016, No. 2Government Orders

November 1st, 2016 / 12:25 p.m.


See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, those are two big topics. On the first one about electricity and selling to the United States, this was raised with the head of our local chamber of commerce in Saanich—Gulf Islands who said that when Quebec sells to another province it counts in the equalization payments, but revenues achieved out of the province do not.

The energy east as a pipeline project is often promoted as though it was taking Alberta product to refineries in eastern Canada. At the moment, there are no refineries in New Brunswick that can process raw bitumen. Therefore, part of the energy east product line will be Bakken shale and that portion can be refined in New Brunswick. However, the bulk, 70% of what energy east is proposed to carry, is the solid material bitumen mixed with diluent so it will flow and it would flow past the refineries and onto tankers. It would not displace foreign oil. We are getting about 0.7 million barrels a day of foreign oil into eastern Canada, while we are shipping out about two million barrels a day from Alberta to other countries.

As I mentioned earlier, we used to have 40 refineries in Canada in the 1970s. We were not closer to markets in the 1970s. We were not an oil-producing country in the 1970s. What has happened is that the people who make decisions about building refineries in the private sector have no interest in creating Canadian jobs or Albertan jobs. We, as elected officials, should care about creating the jobs that Peter Lougheed had in his original plans for how the oil sands should be developed.