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

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Madam Speaker, that is a good question and I thank my hon. colleague for it.

The issue is that if we are going to borrow, we should invest it properly. I do not share the same fear of corporate involvement that my friends in the NDP do. If it makes more efficient sense to borrow money and be able to leverage that borrowed money with help from the private sector, then that is worthy of examination. We are open to any ideas or suggestions that any member of the House of Commons may make.

The best thing for us to do as Canadians, and as a Canadian government, is to listen and consider all options as to how best to leverage taxpayer money, how best to get results for Canadians, and how best to grow the Canadian economy. I am proud that our government is doing precisely that.

[Serge Cormier, Liberal, Parliamentary Secretary to the Minister of Fisheries]

Madam Speaker, personally, when I look at the investments and commitments made by our government over the past year, I feel compelled to describe just how much this has been a boon for my riding and for Canadians.

I will cite a few examples. The retirement age has gone from 67 to 65. We increased the guaranteed income supplement for people living alone. We made changes to employment insurance, which is very important in my region. The reform of employment insurance by the former Conservative government hit us very hard.

We invested in infrastructure and universities and colleges. We lowered taxes. We helped first nations. We made investments in fisheries, ports, and small vessels. These are just a few examples of what we did. I am surprised that the opposition is opposed to these measures.

The program that is closest to my heart is the Canada child benefit. According to some statistics, it will help over 112,000 children in New Brunswick alone. I would like my colleague to tell us more about this program, which I feel is essential for lifting many children out of poverty, and for him to explain what the Canada child benefit is all about.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I want to thank the member for Acadie—Bathurst for that question. I know how hard he works for the great people of his riding and how much they respect the work he is doing. He works very hard in our caucus and indeed in all his duties in the House, and I thank him for his tremendous efforts in that regard.

The Canada child benefit is the single most profound measure in budget 2016. It has helped people in my riding, as I alluded to. I am sure, as the member for Acadie—Bathurst just said, it is helping people in his riding. It is lifting thousands of children out of poverty.

Whatever components of the budget one may or may not agree with, I think we should all agree that this outcome is a positive step for Canadians. That outcome is a positive step for Canada, and that outcome is something we should all take great and tremendous pride in.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, it has been all about the child benefit. It is very important to point out that the child benefit, the extra money the government is giving Canadians, is about $1 billion a year and is gradually going to come down towards 2020. It equals about $27.77 per capita. That is something that has to be known by the public, because all this bragging about the child benefit is not true and is not growing the economy.

The labour market report by the parliamentary budget officer says that job creation is half the average job creation compared to the past five years. Compared to the past five years of the previous Conservative government, the current government is creating only half, and that will be the trend until 2019.

Are the Liberals going to stop talking about the child benefit that is giving Canadians nothing and start talking about job creation?

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I thank the member for Edmonton Manning for his question. I know how hard he works for the people of his community.

It will not surprise this House to hear that I do not necessarily agree with the premise of the member's question. First, he referred to the Canada child benefit as doing nothing. I have met people who rely on that child benefit to buy groceries every month. Does that member want to tell those people that this child benefit is doing nothing for them? I do not think he does.

On the point of job growth and labour-market growth, that is precisely why we have to continue investing. We have to continue the steps we are taking to make sure we grow the economy. Canada's economic growth is slow right now. We need to prime the pump. That is exactly what budget 2016 would do.

I want to thank the member for Edmonton Manning for pointing out how important the measures in this budget are for all of Canada.

[Georgina Jolibois, NDP, Desnethé—Missinippi—Churchill River, SK]

Madam Speaker, I was just listening and heard about the benefit of the child benefit for families. Yet in my riding, I have single dads and single moms coming forward who have been cut because of the new plan. How can I explain it to them? I need an answer from the Liberals.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I thank the member for her question and for raising the concerns of her constituents in this House, which of course is our principal role as members of Parliament.

I am obviously not familiar with the particulars of those incidents, but my understanding is that there are more Canadians, nine out of 10 families, receiving child benefit payments under the new plan. Three hundred thousand Canadians have been lifted out of poverty. I am willing to work with the member and get my government colleagues to work with her to help if there are special cases that need addressing in her riding to make sure that every Canadian gets the benefits that she or he is entitled to.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, I am very pleased to rise to speak to the budget implementation act, 2016, No. 2.

For people who might be watching or listening, a brief summary of the process may be helpful in terms of why we are here and what we are debating.

In the spring, the Liberals presented their first budget. The actual implementation comes in two phases. There was Bill C-15, the Budget Implementation Act, 2016, No. 1, which of course was passed last spring. Now we are implementing the next phase of the budget. It is known as the budget implementation act, 2016, No. 2. These are the technical measures to move the budget into law.

The Liberals always used to talk about the Conservatives and the omnibus nature of our legislation. I am not going to call this omnibus, although we can see that it has many different features. It is necessary, sometimes, to move a budget into law that impacts lots of different pieces of legislation. The Liberals called it omnibus. I just call it good governance and how a budget is actually put into action.

Part 1 is a number of income tax measures. Part 2 focuses on the goods and services tax, the harmonized sales tax, and some commitments made there. Part 3 focuses on the excise tax. Part 4 has a number of different pieces, including the Employment Insurance Act, the Old Age Security Act, the Canada Education Savings Act, the Canada Disability Savings Act, the Financial Consumer Protection Framework, the Royal Canadian Mint Act, and funds management, etcetera. What we can see is a broad piece of legislation impacting many acts of Parliament. It is not called omnibus. It really is just a government doing its business.

Before I talk about my concerns about this particular budget and the budget implementation bill, not all is bad. There are perhaps one or two features that I actually think are reasonable.

We all know of lower-income senior citizen couples who are perhaps separated. Perhaps one needs additional care and has to go into a home. Their benefits are still calculated as a couple. I think it is reasonable to say that if a couple is separated and someone has to go into a home, they now have double the living expenses, so the calculation of the GIS and OAS will not be impacted.

I want to note that there are one or two pieces that I think are reasonable.

More importantly, I think the budget is a disaster for Canada and overall is totally unsupportable.

I remember very fondly when I had the privilege of serving on the finance committee when Canada entered the global recession. The late hon. Jim Flaherty was our finance minister. He was also named the best finance minister in Canada.

It was a global crisis at the time. It was a catastrophe. We were very concerned. Leaders across of the world had many sleepless nights because of the global recession. I can remember that the hon. Jim Flaherty came up with a plan. He articulated that plan to Canadians. He said what he was going to do over a number of years. Not only did he articulate the plan, he executed the plan, and he executed the plan in almost exactly the way he said he would when he first announced that we were going to have to take extraordinary measures to deal with the global recession.

It is important to say that it was a plan. It was articulated to Canadians, it was executed, and the results speak for themselves.

Up to about 2008-09, things were moving along very well. About $30 million or $40 million was paid back on the debt, then we were struck by the global recession.

The plan at the time was a number of years of deficit spending. The reason I am going over this is to contrast the current plan of the Liberals with the plan we had back then. It was deficit spending to deal with an extraordinary situation, but it was declining deficit spending, starting at approximately $55 billion, and over five years getting back to surplus. That was the plan. It was seen as short term. We needed an infusion to get the wheels going when the systems were failing around us.

Canada can be incredibly proud of having the stimulus. I would say to the Liberals that it was truly infrastructure stimulus. It got out the door fast. It was something that actually gave a jolt to the economy. We did not make mistakes and create deficits because of calculation errors.

Jim Flaherty also knew that once we opened the taps of government spending, it becomes incredibly difficult to turn those taps off. Any of us who lived through the 1990s, when we were in an absolutely horrendous position, realize that turning off those taps is very painful. It was very painful for the provinces. They saw health care transfers come down. There was a lot of pain and effort to get our finances back into a reasonable condition. That was a lesson we recognized.

The late hon. Jim Flaherty would have been incredibly proud to know that he achieved his plan. He did not live long enough to see the results. There are some lessons the Liberal government needs to take from that exercise.

It is also important to note that for 2015-16, the parliamentary budget officer recently confirmed that had it not been for the Liberal spending spree once it took office in October and November, we would have had a $2.9 billion surplus.

Different times require different remedies. Canada came through the global recession. None of our banks failed. We had a short-term stimulus for the economy, we had the best job creation record in the G7, and we moved into a bit of a steady state.

Yes, we have slow growth, but we are not in a recession. That is critical to remember. Slow growth is not a recession, and a different remedy is required economically. The Liberals seem to feel that it needs the kind of jolt we had during the global recession. We need a different remedy to deal with the slow-growth situation we are in, as opposed to the catastrophe we faced with the global recession.

I want to talk about how the Liberals believe they need to craft a budget. In the last year we heard that the budget would balance itself and the economy would grow from the heart out. Nothing could be further from the truth. The budget will not balance itself, and the economy is not going to grow from the heart out. It takes a lot of work and a lot of specific policies to ensure that the government does its part in creating an environment for the economy to grow, and balancing a budget requires some spending discipline. That is something we have not been seeing.

I talked about how we had a plan and that it was not a structural deficit but stimulus spending. It was roads and bridges and different investments that created short-term jobs.

What we are creating with the policies of this new government is a structural deficit that is growing and growing and is going to be more concerning as time goes on.

First, on the middle-class tax cut the Liberals so proudly talk about, they miscalculated by a couple of billion dollars. It was going to be revenue neutral. What the rich pay, the middle-class was going to benefit from, but they missed by a billion or two in the structural deficit.

It was a difficult decision to move the age of eligibility for old age security from 65 to 67. Canadians are living longer, and that is what a lot of other countries are doing. A number of countries in the world have moved the eligibility age for old age security from 65 to 67, because times are different. People are living a lot longer. This was something that would create a sustainable structure for old age security. The Liberals have obliterated that. It is now back to age 65. They have not taken into account the huge structural deficit that will be created with that.

The Liberals talk very proudly about their child care benefit. However, they did not index it. They have learned from the parliamentary budget officer that in a few years it will not be as good as the program we had in place. Therefore, they are indexing it through this budget implementation act. However, the cost of indexing it is $4.2 billion over five years. We have not heard what they are doing to create that revenue, so that will also become part of this structural deficit.

During the election, the Liberals claimed they had to run a small deficit of $10 billion because we had a sluggish economy. It was $30 billion, give or take, when they presented the budget. We will see what the minister has to say next week about this whole economic forecast. I hope I can be optimistic, but I am worried about that $30 billion deficit increasing. What we have is a deficit that continues to grow. There is no plan to create a fiscal anchor to bring it back to balance. They speak of the debt-to-GDP ratio, but have no anchor. Rather, they have a horrific spending problem.

At the same time, the middle class appears to be the touchstone word that we hear from the Liberals. To be frank, instead of growing the middle class, the Liberals are breaking it. They are creating an environment that is very difficult for businesses to thrive in.

Another broken promise is with respect to small business, which is the foundation of our economy. It is critical for employment and the revenues that come into government. The Liberals made a promise, reversed it, and now the small business tax has gone up.

During the election, every party committed to a low small business tax, because we recognized that what the government did not take in, the businesses would put into growing their business and increasing their payroll. Therefore, we felt that supporting small business with low taxes would be fundamentally important for the economy. The Liberals backtracked on that promise.

The next thing the Liberals did to small business owners was cook up a deal with respect to the Canada pension plan. Not only has small business had its tax raised, but it will cost an additional $2,000 a year for every employee: $1,000 paid by the employer and $1,000 by the employee. That might not sound like a lot, but for a new business with 20 employees that is struggling to make payroll, $20,000 can make a huge difference as to what it does and how it deals with its business. A number of these measures are creating some significant issues for the middle class.

I need to make a quick comment with respect to rural communities. Again, rural communities are incredibly important. We do not have a softwood lumber agreement signed. We are concerned about these good-paying, middle-class jobs, which keep the fabric of our rural communities alive. It will be an especially important issue for British Columbia. There does not seem to be any concern at all for rural communities.

Today, our colleague who represents Vegreville, which is a small community of 1,000 people, made reference to the fact that 200 immigration jobs would be moved to Edmonton. That will potentially destroy that community. It will have a huge impact.

The minister justified that by suggesting there were economies of scale. It does not take much to recognize that the commercial rates in Edmonton are going to be a whole lot different from the commercial rates in a small town. I really doubt that the business model is going to have that much impact. In the meanwhile, what they are doing is destroying a small town, and those who choose to move to Edmonton, all of a sudden, are going to face huge challenges because housing prices are extremely different.

We have talked about the middle class. I really do not think the middle class is benefiting from this particular budget. We certainly know that our small businesses are not benefiting from the budget. We certainly know the additional complications that are being created around environmental assessment processes, which are really causing pause. I heard from an investor from Korea who was looking at making significant investments in our country, but who is now backing away. He was saying there's now no certainty, that they do not know what the environmental assessment process will look like and how the carbon tax will fit in. People are looking at Canada and saying that maybe their money would be better spent in another place.

What the government does not realize is that money is mobile and for people to invest in Canada, they need to have confidence in Canada, but the changing landscape with government processes is really creating some challenges. They need to have certainty. They need to know what the process is. They need to know how long the process is.

Yesterday, we had a pretty powerful discussion about the indigenous child welfare system. The fact was brought up that during the first 100 days in office, the Prime Minister committed to spending billions of dollars in other countries. I am not sure those billions are really creating a positive impact in Canada. I do agree that we need to do our part to help address some of the challenges facing other countries. However, when we have in Canada some aboriginal communities facing underfunding of their child welfare services, that is a problem.

In conclusion, the government has time to take pause. It is not too late. But please, before you create this structural deficit, those the government says it is helping, the children, are the ones who are going to have pay it back.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Thank you very much.

First of all, I am not going to create the deficit. I would just encourage members not to use the word “you” in the House. It would be so much easier.

The member will have about two minutes left for her speech the next time this is before the House, plus her questions and answers.

It being 1:30 p.m. the House will now proceed to the consideration of private members' business, as listed on today's order paper.

The House resumed from October 28 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.

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

Madam Speaker, it gives me great pleasure to rise to speak to the second part of the government's budget implementation bill, Bill C-29. This second budget bill contains the technical legislative amendments that would make budget 2016 law.

I could get into great detail about these technical amendments. It is an area that has been of particular interest to me as a trained economist, someone who sat on the Canadian Accounting Standards Board's user advisory council for many years and someone who understands the importance of a strong banking system with relevant proper oversight.

Prior to being elected to Parliament, I had more than two decades of experience in the global financial markets, first in New York City working for J.P. Morgan for nearly a decade in corporate finance; then in Canada where I was employed by Dominion Bond Rating Service with the responsibility of coverage of the global auto sector; and then as a corporate debt analyst for Scotiabank, with coverage of over 100 companies and where the market value of the Canadian corporate debt market stands today at $418 billion.

I can speak to specific technical elements of the bill that deal with changes of the Income Tax Act, which exclude derivatives from the application of inventory evaluation rules or ensures that the return on linked notes retains the same character, whether it is earned at maturity or reflected in a secondary market sale. I can also talk at great length about the amendments to the Bank Act to consolidate and streamline provisions that apply to a bank or to an authorized foreign bank in relation to the protection of customers in the public. However, as much as these concerns are of great interest to me and as important as they are, I know I would put many people here potentially to sleep.

While the items contained in the legislation may not be the most exciting things, I cannot stress enough the importance of getting the fundamental economic variables correct. This means ensuring that all the technical elements are there and that all the regulations and legislation are in place to help move the Canadian economy and the country forward. I am very proud of our government's commitment to Canada's economic and fiscal strength, to tax fairness, and a strong financial sector. Perhaps most of all, I am proud of our commitment to helping the middle class and those working hard to join it.

I know that a strong economy starts with a strong middle class. While Canadians have more money to save, invest, and grow the economy, everyone benefits. Strengthening the middle class means that hard-working Canadians can look forward to a good standard of living and better prospects for their kids.

However, for too long, many Canadians have been working harder than ever without getting further ahead. I am proud that our government has recognized this and is taking concrete steps to address this. Certainly the measures contained in budget 2016 were designed to set the stage for future growth.

There is a growing consensus, both in Canada and around the globe, that governments need to invest, not only to boost short-term economic growth but to set the stage for long-term growth as well. We know that when we have historically low interest rates and when the debt to GDP ratio is the lowest of any G7 country, we have the fiscal capacity and it is the perfect time to invest in infrastructure.

When talking about infrastructure, I am not talking simply about roads and bridges, which are very important. I am also talking about our social, health, and education infrastructure. Investing in infrastructure will boost Canada's productivity, strengthening our economic foundation, and put us on a higher growth path trajectory. As commented recently by Bank of Canada governor, Stephen Poloz:

In the case of a targeted investment by government which is identified in such a way that it will be growth enabling, it's very likely to pay off very well...That is, it creates more economic growth for all those that use that infrastructure and that, of course, creates tax revenues and the system keeps turning.

Those are not my words. Those are the Bank of Canada governor's words.

In my constituency of Vaughan—Woodbridge, which incidentally the city of Vaughan is celebrating its 25th anniversary this year, we have experienced unprecedented levels of growth. Vaughan is the largest employment centre in York region, accounting for 38% of jobs. With over 10,000 businesses employing more than 194,000 people, the city of Vaughan is ranked the second best place in Ontario to do business and among the top 25-best places to live in Canada. While our community has grown, much of the federal infrastructure has not kept pace.

Since our government took over, we have seen real substantial investment in Canada's physical, green, and social infrastructure. We have doubled funding for Canada student jobs, increased funding for new horizons seniors' grants, and boosted FedDev assistance to several businesses in my riding of Vaughan—Woodbridge, including Cutler Forest Products. Just a few weeks ago, in my riding at the Kortright Centre, I, along with my colleague from Hamilton, announced a $4.3 million dollar FedDev grant to Mohawk College for the development of new green energy solutions, a very real and tangible example of our government's commitment to clean innovative technology.

We have a lot of young families in my constituency, which is one of the many realities that attracted my wife and I to Vaughan. We are fortunate to have two wonderful daughters and both successful careers. However, like most parents, I want to ensure that my children have brighter prospects and are afforded even greater opportunities for success than I have had.

I am proud to be part of a government that believes we must do for our kids and grandkids what our parents and grandparents did for us to give us the promise of a better future. Toward that end, budget 2016 has invested in Canadian families through the transformational program like the new Canada child benefit that provides help to those families that need it the most with the high cost of raising children.

The child benefit system we inherited from the previous Conservative government was complicated, consisting of a taxable income-tested Canada child tax benefit with two components: the base benefits and the national child benefit supplement. It was a taxable universal child care benefit received by all families, regardless of income, even millionaires. It was system that was both inadequate in that it did not provide families with the support they needed as well as insufficiently targeted for those who needed it the most.

Under the Conservative government, for example, families with very high incomes were still receiving benefit. That is not a Canadian value. Our government's new CCB is simpler. Families will receive a single payment every month. It is tax free, so families will not have to pay back part of that amount received when they file their tax returns.

As well, the new CCB is better targeted to those who need it the most, specifically low and middle-income Canadian families. In addition, it is a far more generous program than the one it replaces. Nine out of ten Canadians will receive higher monthly benefits, and it is estimated that the new Canada child benefit will lift approximately 300,000 children out of poverty. Further, as contained in Bill C-29, in 2020, the Canada child benefit will be indexed to keep pace with rising costs.

Let me emphasize this point on how transformational Canada child benefit is in reducing income inequality. It is estimated that the CCB will allow for a reduction in the poverty rate for children in Canada from approximately 11.2% to 6.7%, or the Canada child benefit will lift approximately 40% of those children who currently find themselves living in the very tragic situation of poverty.

I was very fortunate to go to university, something that was not a possibility for my parents who immigrated to Canada through Pier 21 from Italy in the 1950s. My parents are ingenuous and hard-working people who benefited from having union jobs with decent pay and benefits. My parents helped as much as they could. Personally, I worked summers to pay for university at a pulp mill, a grain elevator and a fish cannery, and after school, including part-time jobs at McDonald's and Zellers, to help save and ultimately pay my way through two university degrees.

The costs for post-secondary education were significantly less than they are today. Now more than ever, in this highly-skilled global economy, it is of paramount importance that post-secondary education remains affordable and accessible to Canadians. To compete in today's knowledge economy requires an educated and highly-skilled workforce and more years of training. The cost of education, particularly professional training, has been increasing exponentially and a greater financial worry has been placed on the shoulders of students and their families.

We, as legislators, need to work to ensure that young Canadians have access to meaningful work at the beginning of their careers, which means paying for more education and training so as not to be burdened by an enormous debt load. That is why our government has put measures in budget 2016 that make post-secondary education more affordable for students from low and middle-income families, and provides provisions that make it easier for students to repay student loans once they enter the workforce. Budget 2016 also includes measures to help young Canadians gain experience, earn extra income and find good jobs after graduation.

This government knows that the road map to a better future lies in recognizing the needs of all Canadians, to our children, families, workers and our most vulnerable populations, including our seniors.

Our seniors built our country. I believe very strongly that we have a responsibility to assist those in their golden years live with dignity and a secure retirement, and treat them as valued members of our national community. It is another reason I am proud of our government's initiatives in budget 2016. By rolling back the retirement age from 67 to 65, which placed $13,000 into the hands of new retirees over that two-year period, increasing benefits to the guaranteed income supplement by nearly $1 billion, which will help nearly one million seniors, including three-quarters of whom are women, improving in the GIS for single seniors, and making significant new investments to support seniors, budget 2016 is helping to ensure our seniors have a dignified, comfortable, and secure retirement.

Bill C-29 proposes to amend the Old Age Security Act to provide that in the case of of low-income couples that have to live apart for reasons not attributable to either of them, such as illness, and, for example, one spouse being in a nursing home and the other staying at their primary residence, the amount of the allowance is to be based on the income of the allowance recipient only. This proposed amendment ensures seniors are not unfairly penalized due to a situation they have no control over.

Making our most vulnerable populations a priority shows this government's vision in working toward a smart, ethically responsible, and fair society.

However, fair-mindedness has always guided our government. As a matter of fairness, our government is looking to crack down on tax evasion and underground economic activity, aiming to close corporate loopholes which threaten hard-working Canadians. I am proud to say that budget 2016 has invested approximately $444 million over five years for the CRA to enhance its efforts to crack down on tax evasion and combat tax avoidance.

In fact, I am proud to state that I introduced the motion to the House of Commons Standing Committee on Finance, calling for an investigation into offshore tax havens. I am very pleased with timely and decisive actions taken by our government to present tax evasions and aggressive tax avoidance, both at home and abroad.

The Government of Canada will continue to address unintended tax advantages, including limiting the ability of wealthy individuals to use private corporations to inappropriately reduce or defer tax.

Bill C-29 would amend the anti-avoidance rules in the Income Tax Act that prevents a multiplication of access to the small business deduction and the avoidance of the business limit and the taxable capital limit. In addition, through Bill C-29, to improve transparency and adhere to international standards, we will implement the country-by-country reporting standards, as recommended by the OECD, for corporations with operations in various geographies. In addition, we will introduce rules to prevent the avoidance of withholding tax or rents, royalties, and similar payments, using back-to-back arrangements.

There is still work to be done, but our initial efforts have improved the fairness and integrity of Canada's tax system, as well will contribute to fiscal sustainability.

We continue to work in the best interests of all Canadians to ensure they have confidence in our tax system, that no one unfairly subsidizes our tax system.

Having worked on Wall Street and in the Canadian banking sector, I can say first-hand that Canada has world-renowned and one of the most stable financial banking sectors. We were one of the only nations whose banks were left intact and came out unscathed from the 2008 global financial crisis.

However, our financial sector did not become world-renowned by accident, and it will not stay that way without continued maintenance and oversight by Canada's regulatory institutions, primarily, through the Office of the Superintendent of Financial Institutions.

I had a first-hand view of the global financial crisis. The regulations that govern our financial institutions, including strong lending practices and solid levels of tier 1 capital held by the banks, along with the role of CMHC and OSFI, allowed Canada to exit the global financial crisis in a stellar manner. Part 4 of Bill C-29 would strengthen the framework regulating financial institutions, while balancing the need for stability and competition with the needs of consumers and businesses.

Our government makes it clear that the shareholders and creditors of Canada's largest banks are responsible for their bank's risk, not taxpayers, not depositors. Canadians will not be stuck with the tab in the event of an economic shock. The changes proposed in the Bank Act reflect enhancements in the areas of corporate governance, access to basic banking services, disclosure of information, business practices, and public reporting.

The same section would amend 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 sound and efficient management of federal funds in the operational crown corporations.

It would amend the Financial Administration Act to allow the minister to 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 purposes of managing risks relating to the financial position of the Government of Canada.

Also contained in part 4 are amendments to the Bank of Canada Act that would allow the Minister of Finance to delegate to the bank the management of the lending of money to agent corporations. Again, Bill C-29, the second part of the budget implementation bill, puts in place measures that would safeguard and strengthen Canada's world renowned financial institutions. The Government of Canada will balance the need for stability and competition with the needs of consumers and businesses.

Budget 2016 would not only strengthen the financial institutions, it would strengthen our social institutions and our country's social safety net. Canada's employment insurance program provides economic security to Canadians when they need it most. That is why Bill C-29 contains several changes to the current employment insurance system. These changes to the eligibility rules would make it easier for new workers and those re-entering the workforce to claim benefits.

In addition to the changes in eligibility rules, the waiting period to receive unemployment insurance would also be reduced from two weeks to one week. These measures would provide unemployed workers with hundreds of dollars more, when they need it most.

I am proud of our government's efforts to extend employment insurance benefits in regions that have been severely impacted by the collapse in the price of oil and other commodities. In budget 2016, we promised those impacted by the cyclical downturn in commodity prices assistance. We will deliver with approximately $2.5 billion investment in employment insurance over the next two fiscal years.

Make no mistake, we all want Canadians working. We all want Canadians earning a good living, with decent wages and good benefits, but in those times when Canadians are laid off, the Government of Canada will be standing there with them to make sure that they are able to stand on their own two feet and get back to work as soon as possible.

Division 6 of part 4 of the act, which amends the Royal Canadian Mint Act, would remove the requirement that the directors of the mint have experience in respect of metal fabrication or production, industrial relations, or a related field. This amendment to the Royal Canadian Mint Act would allow the government to draw on a greater pool of candidates with diverse experiences.

As I wind down my comments I would like to say a few words about a very important group of our society, our veterans. In November, we wear poppies as a symbol to remember the sacrifices made by Canadian veterans. The Government of Canada has a social covenant with all veterans and their families, a sacred obligation we must meet with respect and gratitude. In the past, all too often that covenant has unfortunately been breached.

Canada's veterans have dedicated their lives to the defence of this nation and they deserve our unwavering support. Bill C-29 would give back to veterans who have given so much in the service to all Canadians, by restoring critical access to services and ensuring the long-term financial security that disabled veterans so deserve. Provisions in this bill would mean that Canada's veterans would receive more local, in-person government services, as well as better access to case managers.

In closing, I would like to say how privileged I am, and what an honour it is to represent and serve the residents of the riding of Vaughan—Woodbridge, and how happy I am to have been able to speak on second reading on Bill C-29, the budget implementation act.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Madam Speaker, I am just wondering about something. During the election, the Liberals never suggested that they would invest in Canadian infrastructure by privatization.

I noticed that the bill has some fancy words in it, like “asset recycling” and “flywheel for investment”. Could the member tell us what the government means by that? Is it for privatization or not?

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

Madam Speaker, when I say our platform commitment was to invest $120 billion over the phase one and phase two periods in infrastructure across Canada, I believe that is the right process for us to follow. We are in a period of low interest rates and we need to invest in infrastructure to enable our economy to improve productivity and to put it on a path of a higher long-term growth trajectory.

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

Madam Speaker, I admire the hon. member's sincerity, specifically the pride he shows not only in his area but his country, something we all could benefit from.

There are comprehensive common reporting standards in this budget implementation act. It is a one-size-fits-all program that was put in place by Ottawa to meet its OECD commitments. It really discriminates against small credit unions throughout this country and has caused a fair bit of grief, particularly as we already have similar American regulations to deal with, known as FATCA.

My question is this. Does the member support these common reporting standards as they are or does he believe, like many credit unions, that they do need to be changed taking into account the different structures of credit unions in this country?

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

Madam Speaker, I am thankful for the question from my hon. member, who is an individual I have interacted with greatly in the House.

After the financial crisis in 2008, the world moved to common reporting standards for financial institutions globally across the board. What we are adopting in Bill C-29 are common reporting standards that all OECD countries have incorporated. If there are situations that present themselves where there is an anomaly, then those situations may be worth looking into. However, at the same time we need to ensure we have strong, stable financial systems and institutions that Canadians can have faith in, and that can lend to borrowers, to creditors, and to people wanting to buy a home while remaining sound.