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]

Mr. Speaker, I want to start by saying that I will be sharing my time with the brand new member for Medicine Hat—Cardston—Warner, who was elected about a month and a half ago and arrived here with a flourish. He has already spoken in question period and in the period for statements by members. In a few minutes, he will be giving his maiden speech. It will be very interesting. I invite all Canadians, particularly those from Medicine Hat, to listen carefully to what he has to say.

We are gathered here for what is likely the final stage of consideration of Bill C-29, which, to some extent, implements the government's budget. It is a very bad budget, which will, unfortunately, once again lead Canada into an unacceptable inflationary spiral of colossal, runaway deficits. We still do not know when the Liberals plan to return to a balanced budget, even though we, the Conservatives, left the house in order when we left office a year and a half ago.

In 2008-09, the entire world was facing the worst economic crisis since the Great Depression in the 1920s. The industrialized countries of the world had to make tough choices and deal with major problems. Which country bounced back more quickly than any other and had the strongest economy after the crisis? It was Stephen Harper's Canada.

Our government achieved the best debt-to-GDP ratio and the best job creation record in the G7. Our government established a prosperous economy. We had the best record in the G7, and it was thanks to Stephen Harper's government.

Canadians' tax burden was also the lowest in 50 years. Today, it is not even close. Furthermore, 192,000 jobs, most of them full-time jobs, were created through the sound management of the Conservative government. I did say “created through the sound management” because the government does not create jobs. It is the private sector that really drives the economy, especially when no obstacles to creating jobs are thrown in its way, as this government is doing. I will come back to that later.

When the Liberals regrettably came to power 14 months ago, the house was in order. However what did they do? Unfortunately, they partied hard, and our children, grandchildren, and great grandchildren will pay later for this government's poor management.

We have to recognize one thing. The Liberals had the gall to get elected by saying that they would run deficits. That took some guts. However, they talked about a small deficit of $10 billion over three years. After that they would miraculously balance the budget. That was the Liberal platform.

However, what is the reality today? We are no longer talking about very small deficits, but instead colossal deficits of $30 billion. That is the reality of this government. This year there will be a $30-billion deficit, and it will be the same thing for several years, since the government is unable to tell us when we will be returning to a balanced budget. It is not because we have not been asking, because I have put the question to the Minister, not once, twice, five times, ten times, but 13 times. I have asked the Minister and his parliamentary secretary 13 times when will Canada return to balanced budgets. The government has never been able to tell us when Canada will be getting back to zero deficits.

This is completely unacceptable management. No administrative technician would keep his job if his boss asked him when the company would be returning to balanced budgets and he responded by talking about the debt-to-GDP ratio requested by customers. His boss would ask him for an exact date, and if he was unable to give one, you could count the seconds until he was no longer working for that company, because that would be completely unacceptable.

However, the government never answers questions about when the budget will be back in balance. This is appalling to all Canadians.

Fortunately, it is becoming abundantly clear to more and more Canadians that this does not make sense. Just a month ago, the Liberals delivered an economic update. The new thing we learned is that there is no recovery plan and no consideration being given to the current economic situation. On the contrary, the party is continuing and spending is out of control. Another new thing we learned is that there is $32 billion in additional spending.

That is another $32 billion for something that is not working. Why is it not working? Because since this government has been in power, no net full-time job has been created by the private sector, by Canada. Zero. That is the current government’s record on job creation. Again, it is not the government that creates jobs, it is the private sector, but it needs help.

Speaking of small business, let us talk about the reality. For us Conservatives, small businesses are the backbone of the economy. These are the people who create wealth. Those are the businesses that create employment. These are the people who create wealth for the economy and what is good for Canadians, not the government. But the least the government can do is to help businesses and not impose more taxes.

What has the government done for the last full year? It was very creative. Month after month, the Liberals created a new tax. They created the Liberal carbon tax that will be imposed on all businesses, especially small businesses that will have to pay a high price for the Liberals' carbon tax. They have also imposed more pressure through the Canada pension plan. It will cost $1,000 more for each person who works at an entrepreneur's business. For the people who work there, it will cost them $1,000 more every year and they will not see the results of that for the next 40 years.

It is all wrong. The government can help small businesses that create jobs, wealth, and create a strong economic Canada. That is what we need to do.

This government makes such a big deal about making income tax changes and about being like Robin Hood, taking from the rich and giving to the poor. Stop it. The way I see it, their Robin Hood policy is to shoot arrows like a bad archer and then get hit in the face.

Here are the facts: 65% of Canadians will not receive this so-called help for families. This means that 65% of Canadians do not get a tax cut. The ones who benefit the most from these tax changes are those making between $144,000 and $200,000 a year. Yes, someone making $199,999.99 per year has won the Liberal government jackpot. Is this anywhere close to the middle class and ordinary workers? No.

Once again, in the interest of honesty and integrity, I want to give Canadians the facts. I have a conflict of interest, as do all the members of the House of Commons, including the parliamentary secretaries. In fact, we benefit the most from these tax changes. I could be selfish and think only of myself and be happy and say how wonderful it is that the government is helping me a lot, because since I make $175,000 a year, I am the one benefiting the most.

I prefer, however, to put such selfish considerations aside. My thoughts are with the taxpayers first and foremost, 65% of which are not affected by these changes. The Liberals continue to crow about their great principles. My friend and colleague the hon. member for Québec, the Minister of Families, Children and Social Development, says that the government is thinking of Canadian families, the least fortunate, all of those people. We are not against any of that.

The only difference is that we were reaching our goals without creating a $30-billion deficit as they are doing. Better still, these people have forgotten one little detail, once again. When they did their calculations, they forgot to index. They forgot that, over time, the cost of living goes up just a trifle. Well, maybe more than that: after five years, that trifle begins to swell. That is the Liberal reality: once again, pure amateurism.

The Liberals cannot say when we will return to a balanced budget, and when they draw up the family allowance budget, they forget to index after five years. That is totally unacceptable.

We hope that this debate will cause some Liberals to open their eyes before it is through. Unfortunately, there is a risk this budget will pass. It is not a good budget because it commits us to out-of-control spending by a government that has already lost control of public spending.

[Steven MacKinnon, Liberal, Gatineau, QC]

Mr. Speaker, I thank my hon. colleague, with whom I also have the pleasure of working on the Standing Committee on Finance.

Unfortunately, he is proposing the same solutions in the House as on the Standing Committee on Finance. It is the same dog’s breakfast that was served up all through the Harper years. However, the hon. member cannot take much credit for those Harper years since he wasn’t here. He was in the National Assembly selling much the same line as he has been selling this morning.

I am going to address a question to my hon. colleague, who so enjoys asking questions himself. The question I am desperate to ask him is one that I often ask, but he never answers.

We have a plan for the Canadian economy: investments in infrastructure, a tax cut for the middle class, social investment, investment in families and investment in Canadian productivity and exports.

What is the plan of the finance critic for the Conservative party of Canada?

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

Mr. Speaker, the member is right. Unfortunately, I did not have the privilege of being part of Stephen Harper's excellent Conservative government, a government that left the house in order and ensured that Canada was in better shape than all other G7 countries post-crisis. I would have been proud to be part of that government, the best of this country's best.

The big difference between the Liberal plan and our plan is that ours achieved a balanced budget. When we left power, the hon. member for Roberval, a Quebec MP, was in charge of the department. He worked to promote Quebec's economic development because we respected the provinces and the regions.

Our plan involved major investments to the tune of $80 billion, the biggest plan in Canadian history up to that point, and balanced the budget. Our plan to help families and breathe life into private enterprise included a balanced budget. In contrast, this government creates and imposes new taxes, including the Liberal carbon tax and extra pension plan costs. Its latest move would have 13 million Canadians pay tax on prescription drug and dental insurance.

That is the difference between the Conservative Party and the Liberal Party: we put our trust in people, whereas they tax people more.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Mr. Speaker, in recent weeks and even recent days, there has been some discussion about an element of Bill C-29 that allows the banks to circumvent Quebec’s Consumer Protection Act.

My hon. colleague from Louis-Saint-Laurent cannot be unaware of the unanimous motion of the National Assembly, adopted last week, denouncing this practice of the federal government, which wants to circumvent the Consumer Protection Act to ensure that the banks can escape their obligations.

This will allow the banks to raise credit limits and increase their fees without asking the permission of consumers and to stave off all class action suits, since those lawsuits will no longer be possible, as they are now.

Since my colleague comes from the National Assembly, does he share my concerns on this sensitive matter? It must be said, it makes no sense.

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

Mr. Speaker, I thank my hon. colleague for his question.

Indeed, we are in favour of the position so well laid out by the member for Joliette in parliamentary committee. There was also a vote here in the House, yesterday or the day before yesterday, if memory serves. We all voted together here against this measure, except for the Liberal government.

History has its lessons, and history tells us that in 2012 the Conservative government proposed and passed a law to oversee all banking institutions, and there was a court challenge. In 2014 the Supreme Court ruled that, on the specific issue of Quebec’s Consumer Protection Act, the federal statute did not apply. Consequently the government had to rework its method and approach, as the current government is doing with Bill C-29. However, after hearing expert witnesses in parliamentary committee, we were not convinced.

The National Assembly has passed a unanimous motion, with the following outcome: if this bill is unfortunately passed tomorrow morning, it will be challenged in court, and we will be paying a lot of lawyers’ fees. The only winners in this story will be lawyers, not Canadians.

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, I rise in the House today to speak to Bill C-29. First let me say that I am truly humbled to be here as the voice my constituents and to hold the government to account.

At a time when Albertans, and specifically the people of my riding of Medicine Hat—Cardston—Warner, need it the most, the government has failed them. The Liberal economic action plan has failed Canadians. The only solution the Liberals seem to have for our current economic downturn is to spend more. Borrowed money has to be paid back, and it will be paid back by working Canadian families for generations to come.

Constituents across my riding are concerned about the downturn in our economy and its impact in terms of devastating job losses, out-of-control Liberal spending, the staggering $35 billion deficit, increased taxes, the looming national carbon tax, and the Liberal opposition to the northern gateway pipeline, which would have provided thousands of well-paying jobs for Canadians.

The Liberal legacy of just the last 12 months has sucked the hope and optimism of many in my riding. The good news is that this legacy does not have to be our future. The Conservatives advocated a different path, and our record has spoken for itself, with balanced budgets, 1.3 million net new jobs, the lowest taxes in 50 years, the approval of four new pipelines that move over a million barrels of oil a day, a commitment to our allies, and ongoing support for families.

On October 24, the constituents of my riding sent a strong message to the Liberal government that they were not in favour of rising taxes or wasting money on misplaced priorities. They want someone to stand up for the things that we Albertans, and quite frankly, most Canadians, believe in.

Just over a year ago, the Liberals promised they could spend their way to prosperity, that if hard-working Canadians trusted them to borrow a modest sum, they would create jobs and put more money into the pockets of Canadian families. Canadians are still waiting, and by most measures they are worse off now than they were the year before the Liberals took office.

The economy is stagnant. Despite a big spending budget, the Bank of Canada, the International Monetary Fund, and the Organisation for Economic Co-operation and Development have all downgraded their forecasts for Canada this year and next. Moreover, the Statistics Canada “Economic Insights” report for fall 2016 states:

Labour market conditions in Alberta deteriorated markedly since oil prices began to decline in mid-2014....

The province’s unemployment rate rose above the 8% mark during the summer of 2016, averaging 8.5% from July to September....This marks the first time that the unemployment rate in the province has risen above 8% since mid-1995.

This is the sad reality for Albertans. Where are the jobs that have been promised by the Liberal government?

What is more, with a national unemployment rate of 7%, Canada is worse off now than when the Liberals entered office. Recent reports indicate that a further 30,500 full-time jobs have been lost in the last year alone. Good jobs are in short supply, and the vast majority of new jobs created under the Liberals have been part time.

The situation in my riding of Medicine Hat—Cardston—Warner is no different than the outlook for Alberta. According to labour force survey estimates, the unemployment rate is at a five-year high of 6.9% in 2016. The “2016 Medicine Hat's Vital Signs” report by the Community Foundation of Southeastern Alberta states that the average number of EI recipients in the municipality of Medicine Hat alone rose from 890 in June of 2015 to 1,340 in June of 2016. That is a 51% year over year increase.

What do all of these jobless statistics mean for our community? The reality is that many of those who used to donate to the Medicine Hat and District Food Bank now find it necessary to use its services for their very survival and that of their family. Residents are struggling to make ends meet, evidenced by the increase in the number of Medicine Hat and District Food Bank clients over the last three years.

In 2014, the food bank served a total of 5,336 clients, 1,898 being children. In 2015, that number grew to a total of 12,371, with 4,614 being children.

On December 2, last Friday, the food bank has already served 16,137 clients, 6,165 of them children, and that is within a population of 63,000. This represents nearly 475,000 pounds of food so far in 2016.

These are not just vague statistics. They are the faces of families and what is really going on across this country, especially in Alberta. The devastating reality of our economic climate is that some individuals have gone so far as to take their own life. Sadly, they saw suicide as the only way to resolve their specific situation. This feeling of being destitute is what many are experiencing back home.

Jobs should be priority number one in all of Canada, especially Alberta. Too many families are struggling, and instead the Liberal government is repealing employment insurance measures our previous Conservative government introduced to help unemployed Canadians get back to work. We have always focused on the priorities of Canadians by helping families to make ends meet through reductions in income tax, and the creation and protection of jobs.

As I said earlier, the Conservative record speaks for itself. During the worst economic downturn since the great recession, Canada had the best job creation and economic growth record among G7 nations. We reduced taxes to the lowest point in 50 years, with the typical family of four saving almost $7,000 a year. After running a targeted stimulus program that created and maintained approximately 200,000 jobs, we kept our promise to balance the budget and left the Liberals with a $2.9 billion surplus in 2015-16.

Not only have the Liberals mismanaged the surplus that was left to them, they rolled back small business tax cuts, tax-free savings account increases, as well as the arts and sports tax credit for kids. They are proposing a new CPP premium as well as a massive new carbon tax on everyone. These CPP premiums will affect employees and employers at a time when they are struggling to keep employees employed.

The carbon tax and the Liberals' opposition to pipelines are also kicking people while they are down. Any form of carbon tax will diminish Canada's continental competitiveness. It will be a threat to even more job losses and create an unbearable burden to thousands of families already struggling to stay out of poverty. As of yet, I have not seen any evidence that suggests that a carbon tax will have any measurable positive impact on Canada's extremely small global carbon footprint. This is a tax grab, plain and simple.

Imposing a punishing new tax while holding back approval on job-creating pipeline projects, such as the recent rejection of northern gateway, shows how misplaced the current government's priorities are when it comes to jobs and economic growth. In rejecting northern gateway, it is unacceptable for the Liberal Prime Minister to be killing jobs. All options should have been left on the table. It was truly a tough day for unemployed Canadians who just want to get back to work to support their families. Instead of more jobs and growing wealth, Canadians are left with higher taxes, out-of-control government spending, and broken promises.

In closing, our previous Conservative government believed in creating a competitive environment for business, keeping taxes low, limiting red tape, and getting out of the way so that job creators can do what they do best. The Liberals believe that the best way to create a job is through increased spending, government programs, and regulation. That method has shown time and again that it does not work.

For the sake of those in my riding, all Albertans, and the well-being of Canadians, I will continue to speak up against higher taxes and challenge the Liberal government on its blatant disregard for Albertans, for misplaced priorities, and its continued wastefulness on bureaucracy and bloat.

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, I welcome the new member for Medicine Hat—Cardston—Warner and congratulate him on his speech here in the House today.

The member talked a lot about numbers and figures and whatnot, but I will just highlight one. He mentioned a carbon tax, but from a federal government point of view, it is revenue neutral. The money would go back to the provinces. In the case of Alberta, the provincial government in Alberta was bringing in a carbon pricing policy regardless of what the federal government did.

How does the member square that circle and lay the blame on the federal government when the provincial government was bringing in the same thing?

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, the reality is that no one in Alberta agrees with the $30-carbon tax. However, our Liberal government has been kind enough to increase that to $50. Therefore, it is exactly that: a tax.

Any time we have one government that says it is going to take money from Canadians and give that money to another government to try and distribute it, Canadians do not trust that, and I do not blame them.

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, Medicine Hat—Cardston—Warner is a constituency that is near and dear to my heart, because during the last general election campaign the federal NDP candidate in that riding was a woman named Erin Weir. Had two MPs with exactly the same name been elected from the same party, I believe it would have greatly improved Hansard in this assembly.

But the member for Medicine Hat—Cardston—Warner mentioned the large increase in EI use in Medicine Hat, and of course the main reason for that is a deterioration in labour market conditions, which we have also suffered in Saskatchewan. Another reason for it is that the federal budget did provide an extension of EI benefits across Alberta, and in most of Saskatchewan except for the city that I represent.

Could my colleague comment on the federal government's decision to leave laid-off workers in Regina out of the EI extension provided everywhere else in Saskatchewan and across his province?

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, there were many people in Alberta who experienced the same confusion as to why the federal government would leave certain areas of the province unattended by EI benefits. It not only happened in Alberta, but it happened in Saskatchewan as the member said. It was disturbing, and the Liberal government wears this.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, I would like to congratulate my colleague for his great electoral victory. I have great confidence that he will serve his constituents with all his strength.

Our colleague was on the electoral trail just a few weeks ago. He had the chance to knock on doors, go to many events and organizations, and hear from his constituents. We all did that during the election. Now we might do it a bit less because we are always here.

As the member was there a few weeks ago, I would like him to tell us what was the most common criticism that always came back again and again against the current government from his constituents.

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, one of the things that was loud and clear throughout the entire nomination process as well as the election was the Liberals' proposed carbon tax. There were no individuals in our riding of Medicine Hat—Cardston—Warner whom I heard speak positively that this would benefit them, the province, or Canadians. That was one issue.

Another issue that came forward loud and clear all the time was the out-of-control spending that the current government seems to be exercising and its inability to create jobs at a time when our riding is desperate for jobs and we are losing full-time jobs. The Liberals tell us that they are creating all these jobs. We do not know where they are. If they are anywhere, they are part-time, if that, and they are sporadic at best.

Those are the issues that have come forward. There are many other ones. What this speaks to, as I have heard over and over again at all the events and the doors we have knocked on, is that the government is out of touch with what is going on with Canadians and out of touch with what real Canadians are experiencing, and that is what matters.

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

Mr. Speaker, before I begin, I want to congratulate the new member, the member for Medicine Hat—Cardston—Warner, for his intervention in the House today. It is always great to welcome new members, whatever side of the aisle they are from. It is good to see that he is a very quick study on the Conservative talking points. I praise him for that.

It is a pleasure today to rise to support Bill C-29. This legislation, once passed, would implement budget 2016.

I would like to take this opportunity to briefly highlight some of the important aspects of budget 2016.

Canadians are willing to work hard to build a better future for themselves, for their children, and for their grandchildren. They want a government to work with them to make that goal a reality. Budget 2016 would do just that.

The budget would focus on the economy, on creating jobs, on strengthening the middle class, and on helping those working so hard to join the middle class.

I think all of us in the House can agree. Every Canadian deserves a real and a fair chance at success.

Let us take a step back in history, if we may. For generations, Canadians worked hard under the belief that hard work would be rewarded. Canadians believed that by working hard they would get ahead. Canadians believed that their children and grandchildren would have, if not a better opportunity, at least the same opportunity that they had.

That was the Canadian dream. That was the promise of what it meant to be lucky and fortunate, and blessed enough to be born or to live in Canada.

Back in the 1960s, the 1970s, the 1980s, our society was marked by optimism, by decades of economic growth, by scientific discovery, and by nation-building projects that made Canada so much more than the sum of its parts.

However, over the past 30 years, median wages have barely risen. Meanwhile, the cost of living has continued to rise. Increases in food prices, increases in child care costs, increases in tuition, all are making it harder and harder for the Canadian family and Canadians to feel like they are getting ahead. Canadians were working harder and harder, yet feeling like it was not worth it. They were concerned about the ability to pay for their children's education, concerned about the ability to care for elderly parents. Frankly, they were concerned about their own retirement. Canadians were asking themselves, sadly, “Is the Canadian dream dead?”

Budget 2016 is an answer to these real and legitimate concerns of too many Canadians. It is an answer for shifting global economic forces. Most important, it is a long-term plan for growth; in particular, it is a plan for inclusive growth.

Canada is well-positioned because we have the lowest debt-to-GDP ratio of all G7 countries. Couple this with the fact that interest rates are very low. Now is the time to make strategic investments in things like better roads, better transit, broadband Internet, better infrastructure, affordable housing, and clean technology. These investments will grow the economy today, for tomorrow, and well into the future.

It also builds communities. It is an investment in communities and it is a key investment in Canadians. The only way for Canada to move forward is to ensure that our growth is inclusive.

Our growth should leave no one behind. Fairness is a key attribute of what it means to be Canadian. We now see globally what happens when large segments of populations feel left out or left behind and that no one is speaking for them. We cannot go down the road where growth only works for a few. It is bad economic policy and, quite frankly, dangerous social policy. Canadians are better than that, and we must always remain vigilant toward that end.

Of course, Canada's economy is intertwined with the global economy, but Canada must use its fiscal policy to deliver stronger economic growth. In the words of the IMF at the meeting of the G20 finance ministers and central bank governors in February of this year:

...a comprehensive approach is needed to reduce over-reliance on monetary policy. In particular, near-term fiscal policy should be more supportive where appropriate and provided there is fiscal space, especially through investment that boosts both the demand and the supply potential of the economy.

I could not agree more.

I neglected to mention that I will be splitting my time with the member for Joliette.

We know that wages are not growing at the rate to which Canadians have been accustomed. We know more and more Canadians are feeling that, no matter how hard they work, they will not get ahead. On top of that, global growth continues to slow and market volatility is rising. Emerging market economies are slowing. All of these factors make it incumbent on us to invest now in infrastructure, innovation, communities, our country, and most importantly, Canadians. There can be no doubt that investment is needed, and it is needed now.

I would like to highlight a few of the key investments that are an important part of budget 2016. First, on December 7, 2015, one year ago tomorrow, one of the first acts of this government was to introduce a tax cut for Canada's middle class, which benefited nearly nine billion Canadians. Colleagues have talked about the benefits of the Canada child benefit, we have heard about the important investment in the CPP expansion, we moved the retirement age to 65, and we increased the GIS. These are some of the key features of budget 2016.

What I am very enthused about is that the budget shows a great commitment to youth. Historically, parents have told their children that if they want to succeed, they should stay in school, go to university or college, or become an apprentice. Unfortunately, this is becoming more and more out of reach for too many young people. It is harder to save for education and to pay back loans. The reforms to the Canada student loan program would make post-secondary education more affordable and attainable.

Budget 2016 would help youth in Canada, which I think everyone can agree is an important component of our society. All students who qualify deserve the right to go to university or college or to train in the skill of their choice. The inability to pay for that should not be an obstacle or a closed door to the great young Canadians of today, so they can continue to contribute to Canada well into the future. I think everybody in the House agrees with that.

Under this plan, nearly 250,000 low-income students would benefit and nearly 100,000 middle-income students would benefit. It would be an investment of $1.5 billion over five years. What is more, budget 2016 would also make student debt more manageable. Students would not have to pay back student loans until they earn more than $25,000 a year. This, I suggest, is welcome relief.

Youth also need valuable work experience. We know the age-old dilemma that they cannot get jobs without the experience, but they cannot get the experience because they cannot get jobs. This government would commit another $165 million to the Canada student jobs program, which is fantastic. It would give youth an opportunity to get the experience and the job skills they need to continue to be contributing members of society.

Lastly, I want to briefly highlight this government's investment in innovation. This budget would establish Canada as a centre of global innovation. We must empower our creative and entrepreneurial citizens, and this budget would do exactly that by working in partnership and coordination with the private sector, the provinces and territories, municipalities, universities and colleges, and the not-for-profit sector. This plan would see innovative companies move from start-up to commercialization to global success.

Canada is at its best when every Canadian has the opportunity to reach his or her full potential, and long-term economic growth that is fair and inclusive will do just that.

It is imperative that the House support Bill C-29 and create a strong, inclusive economy for today, tomorrow, and well into the future.

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, we can all get up in the House and read speeches that have been prepared by staff members or somebody at another level.

Today I received a letter from a hard-working person in my riding. This lady is married and has two children, one of whom is autistic. Her husband makes less than $40,000 a year, and she drives a school bus for $68 a day. She asked a simple question at Christmastime: If we are already cutting out gifts, birthdays, TVs, cell phones, toys, trips, food, clothing, home repairs, and medical treatments for the sake of not going bankrupt or becoming totally poor, then how on earth are we and others like us expected to survive if this carbon tax is actually applied? It is an appropriate question that we all need to ponder.

I wonder if my friend across the aisle could answer that question.

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

Mr. Speaker, if my colleague from Oxford would indulge me, I will show him that my notes were actually hand-written by me. I do not know why he thinks I have a speech writer working for me. We do not have the budget that our Tory friends do for their staff members.

I do empathize with anybody who is in a position of hardship. To characterize something as a carbon tax is not doing that person any justice. We all know it is a revenue-neutral plan. Just because people keep calling something a carbon tax does not make it a carbon tax.

There are many programs available to help any of my colleague's constituents who may need it. I am sure he serves all of his constituents well in trying to help them out.