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.

Second Reading

[Shaun Chen, Liberal, Scarborough North, ON]

Madam Speaker, I am truly honoured and privileged to rise for the first time during debate here in the House of Commons on this traditional territory of the Algonquin peoples.

Allow me to begin by thanking the people of Scarborough North for continuing to put their faith and trust in me. It has been an incredible journey serving this community over the past 10 years, starting in 2006, when they first elected me as their public school board trustee. I am deeply humbled to now represent them in this House, where I will fight on their behalf each and every day.

The people of Scarborough North constitute a cultural mosaic in which visible minorities are the vast majority. More than 90% of the population are people of colour, which is the highest percentage of any riding in the country, and 70% of them were born outside of Canada. They have come from all corners of the world to make Scarborough North their home.

Indeed, this is the story of my parents, who emigrated from India to Canada over 40 years ago for a better life not only for themselves but for future generations. I would like to take this opportunity to thank them for their unconditional love and support. When I speak about the residents of Scarborough North, I am reminded of the hopes and dreams my parents brought with them to Canada.

My constituents are hard-working families. Many of them are new immigrants. They work long hours to pay rent or the mortgage, to put food on the table, and to provide a good life and education for their children. They are young Canadians who have studied hard, graduated, and are now looking for work. They are seniors who have worked hard their entire lives, contributed to society, and are now hoping to spend their retirement days in comfort.

Now more than ever, many people in Scarborough North, and across Canada, are finding it increasingly difficult to get ahead. That is why our government has focused our investing on our people to make their lives better and to build a country that works for everyone.

That is precisely why I stand today in support of Bill C-29, the budget implementation act, which would round out the measures our government introduced in the 2016 budget. This bill would help create a stronger economy by supporting the middle class and those working hard to join it. It would enable Canadian families to have more money in their pockets. It would create more opportunities for youth, give seniors a bit more assurance, and ensure tax fairness and a strong financial sector.

There is no better time than now to invest in Canadians. Interest rates are at historic lows, and Canada has the lowest debt-to-GDP ratio among the G7 nations.

At the heart of our country is the middle class. When the middle class has more money to save, invest, and grow the economy, all Canadians benefit.

One of the key measures our government introduced to help build the middle class is the Canada child benefit. As of last July, nine out 10 Canadian families with children have more money each month to spend on the things they need, like school supplies, groceries, and winter jackets. What is so great about the new Canada child benefit is that it is not only more generous than previous programs but is also better targeted to help the families that need it the most. This new tax-free benefit will lift 300,000 children out of poverty this year by providing an annual benefit of up to $6,400 per child under the age of six and $5,400 per child aged six through 17. It will mean that Canadian families with children will see an average increase of approximately $2,300 in child benefits this year.

This budget implementation bill would further help these families by ensuring that the Canada child benefit is indexed to inflation, starting in 2020. I know how important this is for Canadian families, having worked with many parents, children, and youth in my previous role as a school board trustee.

Our government is also working hard to set up young Canadians for success. This past summer, I witnessed first-hand how the 2016 budget is helping our youth gain valuable work experience, experience they need. In my riding of Scarborough North, close to 80 non-profit organizations, businesses, and faith groups received funding through the Canada summer jobs program to hire youth. All across Canada, twice as many young Canadians were employed this year through Canada summer youth jobs, earning income and experience that will help them land a good-paying job after graduation.

As caring and compassionate Canadians, it is important for us to empower the next generation but also for us to take care of older generations. That is why I am pleased to see that this budget implementation bill would help seniors by enabling them to retire more comfortably. Our elders have worked hard their entire lives. They deserve to be treated with the utmost respect and dignity.

In budget 2016, the government returned the age of eligibility for old age security and guaranteed income supplement benefits to 65 from 67, thereby putting thousands of dollars back in seniors’ pockets. Since last July, 900,000 single seniors across Canada have enjoyed improved financial security thanks to a guaranteed income supplement top-up benefit of as much as $947 per year.

It is the right thing to do because single seniors are especially vulnerable and have a much higher risk of living in poverty. This budget implementation bill would take it one step further by making benefits for seniors more flexible. For couples living apart due to extenuating circumstances, each senior would be entitled to the guaranteed income supplement and spousal allowance benefits based on their individual incomes. This measure, along with the changes our government has made to strengthen the Canada pension plan, will help our seniors live with dignity and respect. It is dignity and respect that they deserve.

This budget implement bill supports a plan to invest in Canadians not just for today but for the years and decades ahead. As we approach the 150th anniversary of Confederation, let us work together to build an even better Canada where all Canadians can flourish and find opportunities to achieve success.

Hope and hard work was not just the campaign slogan we ran on. Hope and hard work represent the values that have built this great nation, the true north strong and free. Let us create a climate of hope across this country, a land of opportunity, for every single person who works hard to make Canada a better place.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Speaker, the member talked about the generous programs of the government, which it is basically financing with debt, large volumes of debt that will be paid for by future generations. This debt will have to be paid by them through higher taxes. That is quite the legacy the government is leaving for our children, the next generation that comes after us, and probably our grandchildren.

The member talked about how we are going to help children in school. With his school board experience, it is interesting that the member also voted against Bill C-241, which was a private member's bill that would have helped school boards have an easier time paying the excise tax with a reduction.

On child poverty rates, the member must know that the Liberal record is quite terrible. Between 1993 and 2005-06, when the Liberals were in charge, child poverty rates stayed exactly the same. During the Conservative government's years, child poverty rates actually went down significantly. They went down from 14.7% for the last year figures are available. There was a nearly 2% difference from the start to the finish of the government's record. Why is the member voting for a budget that will basically leave future generations with huge amounts of debt and worse off--

[The Assistant Deputy Speaker, Carol Hughes]

The hon. member for Scarborough North.

[Shaun Chen, Liberal, Scarborough North, ON]

Madam Speaker, to correct the record, I voted in favour of the private member's legislation on excise school taxes. Indeed, having sat on Canada's largest public school board and having been chair of that board, I know how important it is for us to ensure that our young people and children have a strong education system and have an opportunity to succeed. It is exactly why our government is working hard to support our children and the next generation of leaders in this country. Our Canada child benefit will lift 300,000 children out of poverty this year. That is what our government is doing to support our children to make sure they have a chance to succeed.

[Kennedy Stewart, NDP, Burnaby South, BC]

Madam Speaker, I was wondering why the member is in favour of using public funds to give to foreign companies so they can then privatize public infrastructure. I am wondering about the logic behind his supporting this measure.

[Shaun Chen, Liberal, Scarborough North, ON]

Madam Speaker, our government is making historic investments. We are investing nearly $12 billion in new funding. This money will go to help build bridges and create new roads. It will link our communities together, building bridges between people all across our great country, from coast to coast to coast.

Not only will this money be used to support child care centres and social infrastructure, but it will also create cultural and recreational facilities. These facilities are much needed and will only serve to generate an even better economy as we invest now for the betterment of our future as Canadians.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I certainly appreciate the member's contribution to this debate. He is a very eloquent speaker.

However, he does bring new meaning to “the silent majority”. We hear from the parliamentary secretary to government House leader on a regular basis, yet this is the first opportunity for this member. It has been over a year since he was elected.

How will the member feel when his constituents find out that after he has had a whole year to be part of the discussion in this place, this is the first time he has given a speech in the House? I ask this because all of us are accountable to our constituents. I mean him no personal ill will, but I would like to hear the answer to that.

[Shaun Chen, Liberal, Scarborough North, ON]

Madam Speaker, I have had the incredible privilege of serving in the House and of working hard on behalf of my constituents each and every day. Whether it is holding consultations in my riding or hosting pre-budget consultations with MPs across our Scarborough region, I have been working hard to ensure that the voices of the people I represent are heard.

I have had the incredible opportunity to speak many times in the House on important issues, for example, to celebrate the 25th anniversary of the Scarborough Gurdwara in my riding, and to talk about how I accompanied our Prime Minister on his official visit to China.

Each and every day, I feel proud and privileged to represent the people who elected me.

[The Assistant Deputy Speaker, Carol Hughes]

Before we resume debate, I want to remind a few members, only because it appeared there was some question as to how I had allocated the questions.

I just want to remind members that on November 3, the Deputy Speaker did raise this. He said:

....we recognize that the time for questions and comments is often the most valuable time for an exchange between members. In accordance with the procedures and practices, we will do our best to ensure that time is generally afforded to the members of the parties who are not associated with the member who has just spoke but not to the exclusion of that party.

That is the way we will do it. We will also be attentive to members who are particularly present during the day and paying attention to the debate to ensure that as many members as possible can participate during questions and comments.

Again, I want to indicate that this has had a bit of a change, but it is to allow full debate so when a member gives a speech, the questions and comments will mostly come from the other parties.

Resuming debate, the member for Central Okanagan—Similkameen.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, it is a great honour to rise in this place and speak on behalf of my constituents.

While in the riding this past weekend, I was fortunate to meet many citizens of Central Okanagan—Similkameen—Nicola and hear first hand their concerns. To be candid, while many appreciate the new tone in Ottawa, they are increasingly losing confidence in the direction. Let me explain that.

Every member in this place knows full well that economic growth continues to be downgraded, much as we also know there are no promised net new jobs. Keep in mind that these facts are irrefutably true.

We also know the Liberal government has basically pulled an Evel Knievel and jumped over all the promises of modest $10 billion a year deficit budgets. The same Liberal government has pulled off a four horsemen magic performance and turned a promised $10 billion modest deficit budget into a $25 billion budget, with no end in sight for red ink. While turning that $10 billion promised deficit budget into a $25 billion deficit budget, the Liberals also made their promise of a return to a balanced budget in the 2019-20 fiscal year. That has magically vanished as well.

As citizens told me last week, they have not felt this betrayed since the Liberals originally promised, if elected, they would eliminate the GST in the 1990s. How did that Liberal red book promise turn out? We all know, but why does that matter?

If we look at the 2013-14 fiscal year, the federal government spent $28 billion servicing debt. Let us put that $28 billion into perspective. That is more than was spent on national defence that year, at $21.5 billion. In fact, that same year the federal government spent over $30 billion on the Canada health transfers to provinces. In other words, we are spending almost as much servicing debt as we are transferring to provinces to pay for their health care.

Let us be clear. The Liberal budget in Bill C-29 sets a series of deficit budgets that will exceed $113 billion by 2021. There is no path to a balanced budget despite Liberal election promises to the contrary.

We heard from people at finance committee during the pre-budget consultation process. For example, the Chamber of Commerce for Metropolitan Montreal said that it was a credibility issue for the government and for the finance minister. It said that a return to balance had to be a part of the budget.

When and exactly how does the Liberal government propose to reconcile the obvious? How do we return to balance? We all know the Liberals have no answer to this question. What we do know is that the Liberals like using buzz words. Debt is now called “investing”. Deficits, interestingly enough in Liberal speak, are also called “investing”. I suspect if the Liberals offered a VISA card instead of a credit limit, we would see an investment limit on our credit card bills. Canadians know there is interest on debt and so far we have yet to hear what the translation for interest on debt is in Liberal speak. Perhaps it could be called “a price on investing”.

Now the infrastructure bank is coming. Is this directly related to the bill? We do not know. The bill hints about all kinds of spending on infrastructure, yet $35 billion, about the same amount as annual health transfers to provinces, is being carved away from somewhere for this infrastructure bank.

P3 partnerships used to mean that the private sector would borrow money to finance public infrastructure in partnership with the government, all done with private capital. Now the Liberal government wants to borrow money it does not have to ensure private capital receives a generous rate of return to finance public infrastructure. What do we call that? The borrow low to pay high interest plan. This week the Liberal government is promoting a plan where, according to Liberals, for every $1 that the government puts in, borrowed, it hopes to attract $4 in private money in return.

Let us think about that for a moment. Where else on the planet does anyone borrow $1 and get $4 of private money lent to them in return? It seems the Liberal government has taken a page from the four horsemen. There is only one problem with turning $1 of borrowed money into $4 of private sector investment. Private sector investment requires a return. Not even the four horsemen can change that.

Exactly what level of return to private investors has the Liberals promised to their Bay Street friends? We do not know. So far, I have yet to see any rate of return being promised. However, we should make no mistake that it is the taxpayers who will be paying. When? We do not know. The Liberal budget implementation act enacts a cone of silence on returning to a balanced budget. The only thing we do know is that the billions of soon to be added debt will now be financed by Liberal friends with interest paid by Canadian taxpayers.

After one year, we already know the Liberal plan is failing. Economic growth has been downgraded. We just have to ask the Parliamentary Budget Office or the Governor of the Bank of Canada. There are no new net jobs. What is worse that the Liberal changes to mortgages will hurt the housing market.

We know from internal finance reports that the expanded Canada pension plan will be a drag on the Canadian economy and will particularly hurt jobs for the next 15 to 20 years.

Let us keep in mind that this is not just speculation by me. All of this is factually verifiable. The Liberal solution is to borrow more money and throw more money at this failed plan. I am not trying to sound partisan, however, that is really what is on the table and why I am opposing the budget implementation bill.

I would also pause for a moment to point out that it is easy to criticize, more so at the present time given that the PBO, major bank economists and Statistics Canada all provide data and reports that easily show this Liberal plan is failing, and failing badly.

What should the government do? First, members should raise their hands if they think an MP or anyone earning up to $199,000 a year should have a tax cut? The Liberals are wrong to do this. What should have been done instead? Instead of penalizing potential homebuyers in all of Canada for a problem that existed largely in the Liberal strongholds of Vancouver and Toronto, and keep in mind that recent B.C. government changes to foreign buyers was already cooling off the Vancouver housing market, the Liberal government should be implementing measures that would help to increase housing supply across the country.

Increasing housing supply will lower prices. It will get more Canadians into home ownership, which in turn opens more rentals to ease the demand for rental accommodations. More important, it also helps our Canadian economy. It will put more people to work and it will help the Canadian lumber market as well. That is very important considering the Liberals have made zero progress on the softwood lumber deal with the United States.

How could Ottawa help to catalyze housing supply? By increasing the threshold for the GST rebate on new housing, so new homeowners are not penalized by Ottawa for realizing their dream to own a home. The B.C. government is already doing this with the property purchase tax, and it is working. It is time that Ottawa stepped up and did the same.

This policy would not only help our economy at a time of desperate need; it would also help the very middle-class Canadians who have become the Liberal government's second favourite talking point right behind debt—sorry, I mean investing. That is one idea that I would propose the Liberal government could do in the budget implementation bill to help.

I have one final thought. If more Canadians were homeowners and had home equity, the Liberals might realize that harming jobs and our economy through a bigger CPP is the wrong way to go. There is already an alternative that will help jobs and our economy through enhanced home ownership.

I have other proposals as well. We also know the Liberals have no interest in imposing internal trade on Canadian provinces. They would much rather impose a national carbon tax. On that note, I would simply point out that none of our major trading partners will be imposing such a tax. All those same trading partners have superior internal trading policies of their own, something we should all be thinking about if we are serious about growing the economy.

I am thankful for the opportunity to not just oppose this bill, but to make a few proposals on how I believe we can strengthen our economy and increase the unity of our country.

[François-Philippe Champagne, Liberal, Parliamentary Secretary to the Minister of Finance]

Madam Speaker, the member knows the enormous respect I have for him, because he sits on the finance committee with us. I respect him not only for that but also for the perspective he brings to the debate. However, instead of trying to sound partisan, which obviously he was, he sounds very much out of touch with Canadians and the world. I would just like to remind him that the plan we have put forward is a plan to invest in Canadian families, the Canadian middle class, and infrastructure. That is what ambitious and confident nations are doing today.

I would like to remind the member, because I know he is very studied on this issue, that the IMF director said just recently that she hopes the plan Canada has put forward for the middle class, for Canadian families, and for infrastructure goes viral around the world. Not only is it good for Canada, but it would be good for the world.

Therefore, I would like to ask why the member voted against cutting taxes for the middle class. Why would he be against improving employment insurance for the same constituents whom he represents and for whom he says he is working? Why would he not support our Canadian veterans? Those are the measures in the budget implementation act that we are talking about. We are not talking about the infrastructure bit, on which I am quite happy to answer questions, but we are talking now about measures that would make a difference for Canadians today. These are measures that would help our youth, our veterans, and our seniors. I cannot understand why, today, when he saw the things in our budget, he would vote against implementing those same measures that would help the people in his riding.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I appreciate the member opposite for his contributions. He says I am out of touch with Canadians. I talk to my constituents and I make sure my priorities align with theirs.

I would also just remind the member that he is actually not a member of the finance committee. It was his own government that said it would keep the two separate, yet he acts as if he were a member. While I value his contributions at committee, he is not a member.

I do not know where to go with that, other than to say that if we can all agree that economic growth is important and the government should have a plan, as previous administrations have had, then let us put that plan to the test. We see economic growth downgraded. We see no net new jobs, despite what was in the budget. To me, the importance of a plan is not just in having a plan. It is in the execution of said plan to the benefit of all Canadians. That is where the member and his government fall short.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I would like to take the opportunity to share two quotes with the House.

[Time allocation]...is not only preventing business and debate in this [House], but...hurting the ability of committees to do their work.

Who said that? It was the Liberal member for Malpeque.

[Time allocation] is undemocratic and a type of abuse, as a rule, of the House of Commons....

Who said that? It was the Liberal member for Winnipeg North.

I would like to ask my colleague why Liberals always change their minds once they are in power.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, that is such a nice, easy, softball question for me. I appreciate where the member is coming from. I will say that things like time allocation are helpful tools. In the previous Parliament, I supported the government because it had a plan and it wanted to implement those measures to the benefit of the economy, and it got results.

Unfortunately, this government chooses to say one thing during election. The House leader said today that she loves to build consensus, yet despite legitimate concerns of members such as him and our own House leader, that was thrown aside in favour of the majority bulldozer that the government has chosen.

It is the difference between what they say and what they do. They say during the election they have a plan that will work. Then we find out that it is coming off the rails. We find that now, suddenly, they have to invest in ideas like an infrastructure bank when no one understands what exactly it will do, and conveniently, it will take five years for a new crown corporation to get set up with full policies and to implement those policies. Therefore, the public will not be able to judge if they are actually good managers of it.

It is important to point out that what the government says and what it does are two different things. Members across the way would do well to take a hard look in the mirror and ask themselves if that is okay.

[François-Philippe Champagne, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, before I start my speech, I would say for the member who just spoke that he should be happy to vote in favour of this bill, because actually, we are sending the bill to the same committee of which he is a proud member, the finance committee. Therefore, he should be happy that he will have the chance to look at the bill in detail, and I hope he will invite his constituents to share their perspective on the great things we are doing for Canadians.

I will now speak of the matter before us today. My colleagues have spoken at length about the Canada infrastructure bank, but what we are talking about is very simple: implementing the plan we have proposed to help Canadians and Canadian families. This is the plan to help the middle class, to help families, and to invest in our infrastructures.

It is also a plan to help young Canadians succeed, and to improve employment insurance and our seniors’ quality of life. This plan also supports our veterans, and it will bolster our fiscal integrity. I hope that all of my colleagues will be able to vote in favour of this bill and send it to committee, because it is a plan for Canadians.

I am pleased to have the opportunity today to speak about part 2 of the budget implementation act. As the House knows, the government has an ambitious plan to ensure the growth of the middle class, and with it, the growth of the country’s entire population.

Canada was the first country to act on the idea of focusing on the progress of the middle class in order to spur growth across the entire country. We understand that when the middle class is thriving, the whole country thrives.

We have received major support from all over the world for the measures we have taken. The Financial Times, the Wall Street Journal, the Organisation for Economic Co-operation and Development, and the managing director of the IMF, Ms. Lagarde, cite Canada as a model to be followed for its capacity to utilize every possible lever to generate growth. I am sure that my colleagues in the House today will want to support a bill that generates economic growth.

The government of Canada is resolved to pursue its economic agenda centred on the middle class and on Canadian families. Since November, our government has taken concrete steps to support the middle class and so make our economy grow.

That is why we have taken measures to support the middle class. The first thing we have proposed is an income tax reduction for the middle class. Nine million Canadians are in fact paying less tax today thanks to this government, which has adopted this initial key measure.

Next we introduced the Canada child benefit. I would say that this is probably one of the measures of which my colleagues and I are most proud. It is probably the most innovative social measure since universal health care. It is a measure that helps reduce child poverty. Indeed, it may be possible to lift 300,000 young people out of poverty.

When we visit ridings and talk to people, we realize the extent to which this sort of measure, which helps our youth succeed and emerge from poverty, creates a profound transformation in our society in terms of the fight against poverty.

In addition, we have increased the guaranteed income supplement for nearly one million seniors living alone. Often our single seniors are women. People have talked to me about this situation.

At the time of the last budget framework, I had the opportunity to travel from Moncton to Yellowknife to consult with Canadians. People talked to me about these measures that would help them. They asked us for two very simple things, namely that we help them and their families, and that we help the middle class grow. That is exactly what these measures have done.

Next we managed to conclude an historic agreement with the Canadian provinces to top up the Canada pension plan, because this finance minister is someone who looks to the long term. He is someone who looks ahead, who knows that we have to make some changes now to help young Canadians prepare for their retirement. We know that today some 2.3 million Canadian families are not saving enough for retirement, and we want to give them the tools they need to live with dignity in their retirement. That is important to us.

Now I want to talk about the plan for the Canada child benefit.

As you know, Mr. Speaker, even in your riding Canadian families have been receiving more money since July 1 thanks to the Canada child benefit. They are receiving up to $6,400 a year for each child under age six and $5,400 for each child between 6 and 17. Nine families in ten have seen their benefits go up. This is an outstanding measure for reducing poverty in the country.

The 2016 budget implementation act no. 2 also strengthens the Canada child benefit by indexing it to inflation. This government has a long-term vision and is making sure that families can count on supplemental assistance today and for many years.

Canadians also need to feel supported and protected once they have taken their retirement. That is precisely the aim of the Liberal government’s plan. This plan helps people at every stage of their lives. We have talked about measures for youth, for families, and for pensioners. We have decided to invest so as to ensure that people who are retiring can have more money in their pockets.

In 2014, the latest year for which data have been collected, 3.9% of senior citizens in Canada, or about 200,000 of them, were living below Statistics Canada’s poverty line. Nearly 80% of these low-income seniors, a large majority, are single, and most of them are women. This is why we have also increased the guaranteed income supplement for low-income single seniors by $947 a year. It is one of a series of measures aimed at investing in the middle class, because it is the right thing to do.

I would like to return to comments made some of my colleagues. They have talked a great deal about the Canada infrastructure bank. That is another important measure that will enable us to do more and do it faster. However, that is not the purpose of budget implementation act, 2016, no. 2. That is a measure we announced in the 2016 fall economic statement, but that is not what we are talking about.

Since my colleagues said that they needed to express their views, that they were commenting on the measures intended to improve the lives of Canadians, such as the legislative measures we have just taken on employment insurance, I would like to hear their views on this. Why are they opposed to measures that will give more people access to employment insurance?

I would also like them to talk about the increase in benefits for senior citizens. I am sure that seniors in my colleagues’ ridings are talking to them about this important measure.

In addition, I would like to hear their views on the measures in this bill to assist veterans. We all care about helping and respecting veterans, and there are specific measures on this in budget implementation act, 2016, no. 2.

I would also like to hear my colleagues’ views on the integrity of the tax system. My colleagues are wondering about many things on this issue, and rightly so. Well, budget implementation act, 2016, no. 2 in fact contains measures to strengthen the integrity of Canada’s tax system.

My colleagues must realize that these measures will help Canadian middle-class families and provide for more fairness. I am sure that this is exactly what my colleagues want: to foster prosperity at home, to provide financial security for families, and to allow senior citizens, as well as young people, eventually, to retire with dignity.

All these measures are improving the living conditions of Canadians. Every one of us is here, in Ottawa, today, working on their behalf. That is exactly what the budget implementation bill does. It helps families and middle-class people and invests in infrastructure.