Bill C-29 (Historical)

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

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.

Budget Implementation Act, 2016, No. 2

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, I am pleased and honoured, but also humbled, to speak on behalf of all my official opposition colleagues and on behalf of all Canadians who were literally duped by the Liberal Party a year ago.

The Liberal Party promised heaven and earth, but it is breaking its promises. Worse yet, we see that the billions of dollars invested, supposedly in development, is not working. The Liberal plan is not working and we can prove it.

We are gathered this morning to talk about Bill C-29 which, in a way, is the second budget implementation bill. The people watching us this morning need to understand that the budget was tabled, voted on, and passed. However, two bills are being enacted to implement the budget.

What we are seeing is that all the government's budget measures are not working. When we left office a year ago, we left the House in order. This week, the parliamentary budget officer confirmed what we knew, and what Canadians suspected, namely that we left a $2.9-billion surplus. That was a good thing. In fact, a $2.9-billion surplus is responsible, realistic, conservative, and Canadian. We will come back to the current situation later.

We left Canadians the lowest tax burden in 50 years. Canadians had never before paid so little in taxes as under the Conservative government one year ago. That was the mindset that we left Canadians. That was the economic situation that we left Canadians. The major difference is that we believe that Canadian entrepreneurs and businesses, not government, create jobs. Our Conservative policies created 200,000 jobs during our last term of office. A $2.9-billion surplus, the lowest tax burden in 50 years, and 200,000 jobs created by private enterprise, all made possible by Conservative policies. That was the situation one year ago.

Where are we one year later? The Bank of Canada, the parliamentary budget officer, the International Monetary Fund, and the OECD confirm that the Liberal government's economic forecasts must be downgraded. Although we had excellent momentum a year ago, today all economic observers agree that the Liberal plan is not working and that the economic forecasts must be downgraded.

Everyone can see that the employment statistics are worrisome. The Liberal government's measures were supposed to create hundreds of thousands of jobs, but we have not seen any results. Not only is the unemployment rate stable at 7%, but now we are learning that tens of thousands of jobs are being lost, and the Minister of Finance, pleased as Punch, is telling Canadians that they will have to get used to part-time work How inspiring. Way to encourage people to do more and promote job creation. It is not inspiring at all and it is so typical of the Liberals.

Let us now look at the backbone of government management: deficits and surpluses. Need I remind members that our government left a $2.9-billion surplus? This is not the first time I have said it, and I can tell my colleagues right now that this is not the last time they will hear me say it either.

Today, we have a deficit of tens of billions of dollars. I would remind members that, on page 76 of the Liberal election platform, it reads:

...the federal government will have a modest...deficit of...$10 billion...

The deficit will shrink, and after four years, it will magically be transformed into a surplus. That is the Liberal promise. The reality is that the Liberal Party brought in a budget that spells out a $30-billion deficit. In fact, two weeks ago, TD Canada Trust said that the deficit could be as much as $34 billion. On October 19, to celebrate his first year in power, the Prime Minister of Canada was interviewed on TVA, and he said that he did not know how the whole deficit thing was going to turn out. Great. Just great.

Should such an amateurish response come as any surprise? Is this not the same member for Papineau, Prime Minister, and Liberal Party leader who, in an interview two years ago, said that budgets balance themselves? Right. If, according to his economic theory, budgets balance themselves, then he can promise a $10-billion deficit that is really a $30-billion deficit, or how about a $34-billion deficit or who knows how many billions exactly.

That is classic Liberal Party, and it is totally unacceptable. The Liberal government keeps talking about how wonderful everything is because it has the most ambitious infrastructure plan in Canadian history. On our watch, the hon. member for Lac-Saint-Jean, as Minister of Economic Development, headed a department managing an $80-billion infrastructure investment program. At the time, that was the most ambitious program in Canadian history. The difference is that we did it by creating a budget surplus, not a Liberal-style deficit.

The Liberals promised billions. They said that a growing deficit is not a problem and it is all good. It is not all good. Such a huge deficit is irresponsible because it is deferred taxation; we are forcing our children and grandchildren to pay the bill.

Let us look at what I like to call the this government's grand gestures. As I said earlier, this government is not creating jobs; private enterprise is what is creating them. We therefore need to give businesses the tools they need to create jobs. We in the Conservative Party believe that the real job creators, the real backbone of the Canadian economy, are small and medium-sized businesses. They are the real wealth creators, and yet, these Liberal measures work against them.

Was the Liberal carbon tax included in their platform? No. Also, we have not seen the corporate tax cuts those folks over there promised.

The following is written on page 80: “As we reduce the small business tax rate to 9 percent from 11 percent...” That is not true; they are not doing that. They are keeping taxes high and even increasing CPP contributions. This is going to cost Canadian workers $1,000 more per year, and cost businesses $1,000 more per employee every year. That is $2,000 less for the economy and $2,000 more in government coffers for the pension plan. It is unacceptable.

Let us now take a look at exactly how this government is managing its much-touted program to help children, the Canada child benefit.

They said they were going to abolish the three programs our government put in place to really help families, namely the universal child care benefit, the Canada child tax benefit, and the national child benefit supplement. We had fashioned three programs to meet the needs of all Canadian families. However, in its boundless wisdom, the government said those programs needed to go. It says it is going to reinvent the wheel and that it is going to come up with the best program that Canada has ever seen. That is pretty much what it said.

However, the reality is that this government promised to make changes at no cost, but that was a mistake. This is going to put us $3.4 billion in the hole. It is wishful thinking by the Liberals: give people money, help them, and stimulate the economy. That is nice, but it is wishful thinking. Someone has to pay for all this at some point. Those people were elected on a promise to implement a program at no cost. It has not worked out that way. We are $3.4 billion in the hole.

[An hon. member]

A year.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Yes, my colleague is right, Madam Speaker. I thank him.

This year, it is going to cost an extra $3.4 billion and next year it will cost an extra $4.3 billion. What a farce, to put it mildly.

All of a sudden, these people realized that they forgot to index the program, and they are shocked. They forgot one small detail, however: if the program isn't indexed, people will have less money in their pockets than they did under the Conservative government. The worst part about it is that it was not even included in their platform.

I do not want to lecture anyone, but the facts speak for themselves. When managing their personal budgets, would any executives think that their groceries would cost the same in five years as they do now? No, and I do not think so either.

Are there any Canadians who believe that there is no indexing or inflation? No, there are not, aside from these fine people who are before us today. Their management approach is hard on the Canadian economy. It is us and our children who will have to pay for this bad management. Even though we are dealing with basics, the ABC's or 1+1=2, the Liberals forgot to index.

Thank goodness for our Senate colleague, the hon. Larry Smith. I would like to pay tribute to him. I would add that he is a Conservative senator. This is a small detail, but I do not forget details. The senator asked the parliamentary budget officer some very specific questions and, as a result, last May the parliamentary budget officer showed that the Liberals had forgotten to index the program and that, if it were indexed, it would cost twice as much, which is no laughing matter.

When the parliamentary budget officer announced that the Liberals had forgotten to index the program, the government came up with an indexing measure on the fly to ensure that this program will cost $42.4 billion in total, and that number is from the report of the parliamentary budget officer. The Liberals only made a small mistake.

I know that I cannot pull out documents here. However, if I could, members would clearly see the inflationary curve that the government forgot about and which means that Canadians will have to pay tens of thousands of dollars more.

I have listened to the fine speeches by government members who have said that they are thinking of the children and families, that they want to help the poorest among us and do this in a balanced way. No, the Liberals completely forgot about indexation and inflation and, even worse, they are going to make our grandchildren pay for that. That is the irony of the situation.

The members over there gloat about their lofty principles and say they want to help families and children. Of course they want to help the children: they want them to pay the bill when it is their turn to work. That is neither responsible nor realistic. That is not the right approach in our opinion.

That is why when we were in power, when we were implementing these programs, we were also balancing the budget. That is the realistic and responsible way to effect change.

About their tax changes, those guys make such a big deal about leaving more money in people's pockets and cutting taxes. Hang on just a second. Once again, thanks to the hon. Larry Smith, the parliamentary budget officer meticulously analyzed the new tax measures. On page 1, he says, “PBO estimates this amount to be $1.8 billion in 2016”. That is the additional amount the government has to pay. In other words, a measure that was supposed to be revenue-neutral is going to cost $1.8 billion.

They talk about how we need to think of the poorest members of society, but this does not make sense. The new tax brackets mean that there will be no impact whatsoever for people earning $45,000 or less. I would like to remind the House that the average salary in this country is $32,000, so this will change nothing for more than half of all Canadians.

Who is really going to benefit from the new Liberal tax changes? Those who earn between $140,000 and $199,999. I will acknowledge my conflict of interest up front, because I, like all members of the House of Commons, am in that tax bracket.

Where is the supposed sense of fairness and generosity towards the most vulnerable among us? It does not exist in this new change. Sixty-five per cent of Canadians will see no change. It is going to cost Canadians $1.8 billion more, and those who will benefit the most are those who earn between $140,000 and $200,000. It completely flies in the face of what they are claiming. The facts are there, and it is not the nasty Conservatives who are saying this, but the parliamentary budget officer, who was responding to a question from Senator Larry Smith. It is important to know this, and to inform and remind Canadians.

We already had an opportunity to talk about the changes the government is proposing to the Canada pension plan through Bill C-26. Basically, the reality is that the government wants to increase taxes on workers from 9.9% to 11.9%, which is a 2% increase. In concrete terms, this means $1,000 less in the pockets of each Canadian worker, and for businesses, $1,000 more that every company has to pay for each employee. Overall, it means $2,000 for every worker.

Every Canadian who gets up in the morning and goes to work will have $1,000 less, and it is going to take 40 years before it produces any results.

What is the actual impact of this measure on the economy? If we look at employment, GDP, private investment, disposable income, and private savings, all these economic indicators of real growth have been downgraded. At committee hearings, I posed questions to representatives of the Canadian Gas Association, Canadian Manufacturers & Exporters, the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, and even the C.D. Howe Institute. They all said that the proposed changes to the Canada pension plan would negatively impact the Canadian economy and that it could take at least 40 years before there would even be a semblance of balance. That is bad for the economy and it is not the way to go.

We moved forward with our proposal and created the TFSA, a savings plan. We believe that instead of picking people's pockets, the government should give people the tools they need so they can choose how to best save. That approach makes good economic sense. That is great vision. There is a difference between our visions: the Liberal government takes money from people's pockets, whereas the Conservative government lets people choose, and provides the tools so that both businesses and individuals can contribute to economic growth.

The government has totally lost control of public spending. I could be here until Monday talking about all of the mistakes it has made, but I will have to stop because I only have about three or four minutes left. Day after day, this government keeps getting caught with its hand in the cookie jar because of its out-of-control spending. Let us remember the minister who paid $7,000 for a photographer in Paris. I have jokingly said, and I will say it again this morning, that she could have followed the Prime Minister's lead when it comes to photography since he is quite adept at taking selfies and his method does not cost a cent.

Members will also recall that the Minister of Health gave her Liberal friend a contract to drive her around in a limousine. When she was caught red-handed, her friend changed the name of the company to indicate that it provided car services rather than limousine services. The minister apologized and promised to repay the costs, but she should not have to be caught to acknowledge that she made a poor decision and that she should repay the money. Members must make wise choices at all times. I could go on like this for three days, but the point that I am trying to make is that the Liberals have lost control of the public purse. They have also completely lost control of public spending. They were elected on a platform that included a $10-billion deficit, but here we are saddled with a $34-billion deficit, and the Prime Minister is saying that he does not know what is going to happen. It makes no sense.

[An hon. member]

Where are we going? There is no oversight.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Government spending and the deficit are out of control, but the Liberals have decided to impose an additional tax burden by increasing CPP premiums and implementing their carbon tax. Was the Liberal carbon tax part of the Liberal platform? Maybe it was. I read it and reread it. If somehow it was part of the plan, I would ask hon. members to show me where. To my knowledge, it was not planned and now they are imposing it. That is not right. This only goes to show that this government sadly does not know how to count. It simply forgot to factor inflation into its family benefit.

They are poor managers, as well. It is worrisome because under our democracy, which we respect and honour, they will be holding the reins and purse strings of government for the next three years.

We know that the minister is due to table an economic update next week. We hope he will get his act together and grab the bull by the horns and that he will pursue a realistic and responsible approach to management. The government has clearly earned the triple crown of bad management. It has lost control of the deficit and government spending, and it is overtaxing Canadians. That is the triple crown of bad management. The Conservatives had the triple crown of good management and the best economic record of the G7. We are very proud of that. Before concluding, I will move a motion.

I therefore move, seconded by the member for Kamloops—Thompson—Cariboo:

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”.”

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The amendment is in order.

The hon. member for Louis-Hébert.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Madam Speaker, I would like to begin by thanking my colleague and neighbour from Louis-Saint-Laurent. I always appreciate his eloquence and theatrics. It will probably take me the entire weekend to lead us out of the intellectual labyrinth he lured us into with that speech.

Still, let us start with the $2.9-billion surplus he says the Conservatives left us. Does he realize that that surplus was achieved in large part by selling GM shares? That is like me telling my spouse that we are mortgage-free but that I had to sell the car.

Does he realize that the previous government and the former prime minister, whom he so admires, left behind a $150-billion debt and that, despite the debt, we had the worst GDP growth in 69 years and the worst jobs growth since the Second World War? It is pretty rich of him to say all those things with all the conviction in the world when Paul Martin's Liberal government left the Conservatives a $12-billion surplus.

Since my colleague from Louis-Saint-Laurent said it was important to tell Canadians the facts, does he know how many people in his riding were benefiting from the increase in the TFSA contribution limit, which benefited only the wealthiest 10% of Canadians?

Does he know how many people in his riding benefited from income splitting, which also helped only the wealthiest 10% of Canadians?

Does he realize that it was the previous government that liked to give tax breaks to the rich?

Now, does he know how many children in his riding will benefit from the Canada child benefit? I will tell him: 20,820 children in his riding will have more money thanks to the Canada child benefit. It is just unbelievable that the Conservatives are voting against this measure.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, I salute my colleague, whose company I always enjoy and for whom I have a great deal of respect and esteem.

As for our government's economic and financial record, I would remind the member that we had the best record in the G7. Among the strongest countries in the world, we fared the best, following the worst financial crisis since the Great Depression.

Like all countries around the world, we were dealing with major challenges, and yet, in terms of economic recovery, job creation, and balancing the budget, we were the best in the G7. You have to compare apples to apples, and we were dealing with the worst financial crisis.

Also, can the member for Louis-Hébert tell us how many people in his riding earn $45,000 or less a year and will have more money in their pockets? The answer is none, because the Liberal plan does absolutely nothing—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Order, please. I would remind the member that he must address his comments to the Chair.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, can the member for Louis-Hébert tell us how many people will have more money in their pockets thanks to these new measures? People earning between $140,000 and $200,000 a year will benefit the most from these tax changes. That is the Liberals' new way of doing things.

Can the member for Louis-Hébert tell us how many children in his riding, in 20 years' time when they are working, will be paying for this government's $30-billion deficit? He promised, during the election campaign in Louis-Hébert, as did others across Canada, a $10-billion deficit. That is the Liberal reality.

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

Madam Speaker, I thank my colleague from Louis-Saint-Laurent for his entertaining speech. I now have the pleasure of sitting with him on the Standing Committee on Finance.

I would like to tell him about yesterday morning's meeting of the Standing Committee on Finance where we heard from Dominic Barton, who chairs the Advisory Council on Economic Growth. We heard some very interesting things, including the fact that the so-called infrastructure development bank being considered by the Liberal government will attract about $40 billion.

We do not know where this money will come from, but it will probably be taken from the current infrastructure program. The bank will be given $40 billion in public money in order to attract $160 billion from the private sector, either from public pension funds or private equity funds. This is about privatization. The Conservatives are not necessarily against this. The NDP obviously does not support it. However, if there is one thing we agree on, it is that this was never promised during the election campaign.

I would like the member for Louis-Saint-Laurent, who is the Conservative finance critic, to comment on this very controversial idea of creating an infrastructure development bank. With people like Dominic Barton, Michael Sabia, and Mark Wiseman, this could result, sooner than later, in the privatization of public assets in Canada.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, first, I would like to commend my colleague. What I like about him and his party is that, at least, their positions are clear and definitive. We know where they stand. They are on the left and we are on the right. That is obvious. They took quite a hit during the last election, but I commend this party for its honesty and its intellectual and political integrity. I share maybe 3% or 4% of their opinions. That is democracy. That is what makes our country so beautiful and great.

We are certainly not against private investment or the idea that private corporations contribute to Canada's development. That is why we are always saying that entrepreneurs are the backbone of the Canadian economy. They are the ones who create jobs and wealth. The government needs to do everything it can to help them.

The investment bank in question is a proposal that was made by an advisory committee. It is not a public policy. We will see what the government plans to do with that proposal. Not to make any assumptions, but we will more than likely find out where the government stands on this idea on Tuesday when we get the November 1 update.

Yesterday evening, after hearing some of the questions posed by my NDP colleague, I reread the election platform and there is no mention of this proposal.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, I thank my colleague for his passionate speech.

I want to talk about jobs. The government always talks about creating jobs, but if we want to be fact and evidence-based, the data says we have fewer jobs now than when the Liberals came into government. Hundreds of thousands of people in the oil and gas sector have lost their jobs. The government had a chance to help Bombardier, but did not, and 2,000 more jobs were lost. It made a deal with Air Canada and more jobs were lost. In my riding, the infrastructure minister has not given me $12 million to create 3,000 jobs. The government has not done anything about softwood lumber, the TPP, and CETA. It goes on and on.

Maybe there is a plan that I have not seen. I know my colleague sits on the committee, so I will ask him the question. Has he seen any plan to create jobs?

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, I have great respect for my colleague. I miss her, because we were neighbours until a few weeks ago for our first year in the House, and I had the privilege of working with her. By the way, she is a very good singer, especially when she sings O Canada. The first time I met her, we were in caucus, and we sang O Canada. I was very impressed. She was behind me, so I clearly heard her.

The real problem is that the government is not a friend of the private sector, the backbone of the economy, particularly small and medium-sized businesses. The Liberal carbon tax will not be good for the economy. There will be huge compensation paid by workers, businesses, and business owners for the Canada pension plan.

Also, the Liberals are not doing what they said they would do in their electoral platform. The small business tax rate is staying at 11% instead of being reduced to 9%, as they were supposed to do, according to what they said during their campaign. Those three elements are not good for the economy and not good for creating jobs, because it is not the government that creates jobs, but the private sector with the help of the government.

Unfortunately, the government is not doing anything to help those who create jobs and wealth in Canada.

The House resumed consideration of the motion that Bill C-29, A second 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.