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

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I believe Canadians are quite pleased with the progress this government has made in a relatively short time span. We can talk, as I have, about the GIS increase, the increase in the Canada child benefit, the tax cut for Canada's middle class, and the price on carbon. There are so many things out there.

Focusing on the province of Alberta, which has been in need, we have dealt with employment insurance, had more coordination of different departments, and made a heavy investment in infrastructure.

Could the member comment on whether there is something very specific she believes we could be doing as a government to assist?

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, I have two parts to my answer.

First, Karl Crocker from Sparta has written, “I don't think our present government gives a '_____' about the average rural tax payer. With the carbon tax, hydro rates and now natural gas going up. We are mad.” That says to me that Canadians, at least those living in Elgin—Middlesex—London, are not happy.

We are hearing from different people, obviously. I am hearing from people in Elgin—Middlesex—London in southwestern Ontario. We are not seeing infrastructure being built. We are not seeing new job creation. I am fortunate, but for the people living in the province of Ontario right now, I feel for those who are unemployed.

Second, we need to create an environment where businesses will come to this country, where businesses will continue to invest in their future and for their employees. We had the Canada jobs grants, which I am hoping the government will continue to support. I only hear from these businesses when it is a great thing, when people whom they know are great employees get the opportunity to increase their productivity, to increase their knowledge, so they can continue to have excellent employment. Therefore, continue with our training to make sure that we can get people back to work, and make sure we are graduating people—

[The Deputy Speaker, Bruce Stanton]

There is time for one more short question.

The hon. member for Lambton—Kent—Middlesex.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, the Liberals always talk about the debt. We paid off $40 billion. We gave them a surplus of $3 billion, which they blew through, plus the slush fund of $6 billion. They have not created a single full-time job.

The other part of it is rural infrastructure. The Liberals just took money from the rural infrastructure fund to put into an infrastructure bank, which is actually an insurance program to protect foreign investors.

Could the member comment about the concerns in rural Canada about infrastructure, which we likely are not going to get money for?

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, I met with the Federation of Canadian Municipalities when its members were here in their lobbying week. I asked them directly if they were here to see me as a critic looking at something national or as a rural MP who represents rural Canada. They wanted to speak to me as a rural Canadian. Funnily enough, the people who were sent here were from Toronto and Montreal. I think they do a wonderful job, and two days later, I was fortunate enough to have someone from the city of London come to speak with me.

If we invest in an infrastructure bank, the problem I see is that the people from urban Canada I speak with believe that it will be good, because it will be good for their projects. However, we do not have large infrastructure projects of that huge proportion unless we amalgamate all of our programs together. Therefore, I am really worried, and I know that Elgin—Middlesex—London will not see a dollar from that infrastructure bank.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Mr. Speaker, it is a privilege to stand today to speak to Bill C-29.

Just last month, a group of respected physicians in Edmonton and the surrounding area wrote to me about a new federal tax proposal in Bill C-29 that would alter the small business deduction to exclude group medical structures. Their email reads:

I urge the federal government to amend Clause 13 of the Legislative Proposals Relating to Income Tax, Sales Tax and Excise Duties by exempting group medical structures and health care delivery from the proposed changes to S. 125 of the Income Tax Act regarding multiplication of access to the small business deduction.

The proposal outlined in C-29 will hobble the efforts of these doctors and their colleagues from effectively serving Canadians, as it would unfairly penalize group medical structures, These structures are not formed to avoid the taxman. They are formed to deliver team-based integrated medical health services according to priorities set out by the provinces.

In many of the sub-specialties these physicians work in, these arrangements are the standard of delivering care in a safe and cost-effective manner. This tax proposal threatens to tear this balance apart, heaping rising costs upon health care providers and forcing many to potentially move their practice to other countries with less punishing tax burdens. Most important, these changes will directly impact the medical care received by Canadian families across the country.

These arrangements are the fruit of years, decades even, of careful planning and negotiation between the provinces and their health care providers to implement their health care priorities. The division of powers is quite clear in this country: the delivery of health services is a major component of the provincial mandate, not the federal government's. The government is once again ignoring the concerns and opinions of experts and forcing its views onto our provinces.

I would like to turn my comments to Alberta. Alberta is struggling right now. It is going through one of the worst job crises in the province's history. The unemployment rate right now is at a 22-year high. Over 222,000 Albertans are out of work. They are not just from the oil patch, but work in restaurants, in small businesses, and in gyms as physical fitness experts. I was speaking with one the other day. These people are the heart and soul of Alberta and to have them out of work really leaves Alberta at an incredible disadvantage.

We are suffering from the low oil and gas prices. That is fair. The government on the other side will stand up and announce its decisions on pipelines, issue a press release, and say everything is fixed: “Move on, Alberta, on to our next hurdle”.

We cannot just rely on these pipelines. Right now what we have is a jobs crisis. It leaves us at a disadvantage in all of our sectors. These pipelines that we hope will be built eventually do not address anything happening right now.

We need to ensure that we have particular infrastructure in place, yet we have no shovels in the ground. We need more jobs. However, we keep seeing part-time jobs. It is unfair what is happening in Alberta and there seems to be a real lack of recognition of this on the other side.

Furthermore, to add to everything that is happening in Alberta, the Liberals have now announced a carbon tax. The carbon tax is going to $50 a tonne. The Alberta provincial government has set the carbon taxes at $30 per tonne, but because of the good faith in these new pipelines, they have decided to move it up to $50 a tonne.

That has an impact not just on the oil and gas sector, but on regular families. I have a letter I received from a family in my area, which said that the YMCA daycare, a solid daycare provider in our constituency, has decided to raise the annual fee for parents in the community, because they think the carbon tax will have an impact on the YMCA. It seems to me that this carbon tax is not just building social licence, as the government states, but is really having an impact on young families on the ground.

We figure, great, the Liberals have put in place a carbon tax, let us apply pressure to the government to ensure that it understands the impact of this. Then the government landed the CPP increases on small businesses, and on families as well; then there were mortgage rules, and now we are hearing today about taxation of health and dental benefits.

There is only one taxpayer, and this one taxpayer continually has to pay all of the taxes that are added on. I plead with the members on the other side that Bill C-29 is yet a further indication that the current government is completely out of touch, not just with Alberta, but with the families across the country this bill would have an impact on.

We keep hearing that infrastructure investments are going to save the day, are going to be the way to put Albertans and other western Canadians back to work. We have a minister who can stand up here and say “from coast to coast to coast” as much as he likes, yet quite honestly, we have not seen a single shovel in the ground yet. Oh wait, there is one in central Alberta for waste management. That is the only one. The minister will stand in Edmonton and Calgary and call press conferences with anyone who will come, and he will say, “Look at us, we are creating jobs”. Where are the jobs? We have yet to see a single full-time job created. We have part-time jobs. Statistics Canada reports say there are all these part-time jobs, but that in terms of full-time jobs on the infrastructure side, we actually lost construction jobs. Over the last year, there were fewer construction jobs than the year before. It does not add up and does not make sense how this infrastructure plan is going to jumpstart our communities.

Then we asked the Minister of Infrastructure, the Prime Minister, the natural resources minister, and the minister of industry what we are supposed to tell Albertans when none of this is coming to fruition, when nothing is happening, and when people are still unemployed. The unemployment rate is still the highest in 22 years. We are told to hang in there by the Prime Minister. We are told not to worry, that we will hold hands together and get through this, by the infrastructure minister. I do not know how the minister's warm embrace will help the many people who are unemployed in Alberta. It seems a little optimistic on the minister's side.

I would encourage the minister, the Prime Minister, and the finance minister to listen to us on this side of the House. We are sitting down with everyday Albertans. We created what we call the “Alberta Jobs Taskforce”. Every Alberta member of Parliament is participating, actively meeting with as many stakeholders as they can. We are sitting down at round tables, town halls, and one-on-one meetings. I cannot say how many people have been in my office crying because they have lost their jobs, because they do not know how they are going to put a roof over their heads, and because now that their government is increasing the carbon tax, they are not going to be able to afford day care for their children.

I believe it is incumbent on us, in a non-partisan approach, to ensure that we are listening to those in our constituency. I know that the member for Calgary Shepard has had a number of round tables and is meeting with his constituents regularly. I know that the member for Lethbridge has met with a number of youth who do not know where they will get jobs out of university. So it is incumbent on us as members of Parliament to communicate to the government what we are hearing on the ground.

We have a budget coming up in the new year. As part of that budget, we want to make sure that the Prime Minister and the finance minister have heard exactly what we have heard from these Albertans. We are hearing not only from small businesses and oil and gas companies, but also from food banks. I spoke with an individual at a food bank the other day who said that because of the carbon tax, the people there are concerned about how they will continue operating. There are now more people lined up at the food bank, yet the people working there do not know how the food bank will continue operating. That would bother me if I were sitting on the side of the House. We need to ensure that we have solutions for this crisis in Alberta.

Over the years, Albertans have stood shoulder to shoulder with other provinces across the country, making sure that we were there in their time of need. Right now, Alberta is hurting. Alberta is going through an incredible jobs crisis, and we need the rest of the country to listen to Albertans and hear our thoughts.

[Ken Hardie, Liberal, Fleetwood—Port Kells, BC]

Mr. Speaker, in reaction to the hon. member's comments, as a member of Parliament from British Columbia, I have stuck my neck way out there and supported the decision by this government to allow the Kinder Morgan and Line 3 pipelines to go ahead. I also support our decision not to build the Enbridge line.

I am concerned by the misinformation, or perhaps the misunderstanding, and I will be charitable here. A price on carbon means that the revenue goes back to the province where it was collected, where the province can do what it wishes with it. It can cut other taxes; it can exempt certain sectors, as British Columbia did with agriculture. British Columbia has had a carbon tax now for almost nine years, yet we have the best economy in the country and the lowest tax rates.

Could the member dig a bit more on the implications of putting a price on carbon and particularly how it can be worked within a province to the benefit of the people who live there?

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Mr. Speaker, I do not envy the member's position on the other side of the House with having to stand against his government on the Kinder Morgan pipeline. Apparently, giving his approval, I guess, goes a long way to the Prime Minister, I wish he would have listened to me on energy east, Keystone, and northern gateway.

The social licence on the other side has gotten us nowhere. There is now a president-elect in the United States who is moving ahead without a carbon tax and not going along with the Paris agreement. I would think that would indicate that there goes investment, there goes business out of Canada to the United States.

I would hope that the member on the other side recognizes the implications of a carbon tax, not just on the side that he speaks about but because of what that is going to do for the rest of the country and the economy.

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, the member mentioned Alberta a lot, and his riding and the need for jobs. I am sure, like in my riding of Essex, his riding consists of a lot of small businesses, which drive the economy in a lot of ridings. It is very concerning to me that we do not see the promise in this bill of a small business tax reduction. This is hurting small businesses in the communities in Essex and I am sure it is hurting the member's as well.

Could the hon. member comment on the government not following through on the reduction of the small business tax cut and how it has impacted his riding?

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Mr. Speaker, that is a hard-hitting question.

I have to say that small businesses are hurting enough with the promises they thought they would get from the government, but now a CPP increase is being piled on, and that includes health and dental benefits, too. Small businesses right now do not know where the next saving grace from the government is coming from. It is a challenging time, particularly in Alberta, and I imagine in Essex as well, to have a small business knowing there may be a carbon tax, a CPP enhancement, and EI premiums. That is a lot for small businesses. I would think it is a struggle for small businesses these days because of the actions of the Liberal government.

[Sean Fraser, Liberal, Central Nova, NS]

Mr. Speaker, I would first like to draw on a curious comment made in response to the question of my colleague. The hon. member said he wished the member for Fleetwood—Port Kells had listened to him when it came to Keystone and energy east. I would like to point out that the approvals are in place for Keystone and the question has not come to cabinet for energy east.

My question relates to a comment made during the member's remarks, when he suggested that not a single shovel was in the ground when it came to federal infrastructure spending. In Central Nova, the Nova Scotia Community College Trades Innovation Centre in the town of Stellarton is under construction, there are seven small craft harbours under construction, and a series of other municipal infrastructure projects.

Does the hon. member not recognize that construction is under way, employing people in my community, and if not, where does he get his information?

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Mr. Speaker, it feels like a set-up on that side, too. We were able to pull the infrastructure list of what has been invested in and there are certain things on this list. In Toronto, there is funding for missing sidewalk links. I wonder what the sidewalks look like now. Are people about to fall off the sidewalks? There is a digital advertising sign in St. John's, Newfoundland, which will use infrastructure money. That seems strange. There is a playground in Iqaluit.

These announcements are all fair and good, but without having shovels in the ground and without putting people to work, it is really unfair for that side of the House to say that they are really incenting jobs, because they are not.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, maybe a good place to start is to provide a comment. We have heard this from other Conservatives. They try to demean the importance of all jobs. I come from a working-class riding where all jobs are important. Not everyone wants to be a member of Parliament, or a car salesman, or a health care worker. There is a good selection of jobs from coast to coast to coast and some of them are part-time, some of them are full-time. Over the last number of months, we have been able to accomplish a great deal as government. We constantly hear from the other side that they are just part-time jobs. I can assure the member that many of those part-time jobs are of great value and Canadians truly do appreciate part-time jobs too. Part-time jobs do matter and they do count.

We have seen in the last 12 months, I believe the record was 139,600 new jobs. I believe the Minister of Innovation, Science and Economic Development indicated that number has gone up in the last month to just over 145,000. I might be a little off in that number. The bottom line is that this is a government that does care about jobs. We are concerned about how the economy is improving and that is the reason we brought forward such a progressive budget. Quite frankly, I am disappointed in the Conservatives and especially in the New Democrats for not recognizing what most Canadians believe and that is that this government has it right. We have a budget that all Canadians can get behind because it literally assists every region, every community of our country.

I would suggest that if members want to reflect on what has been said over the last number of months, because we have been talking about this budget for months now, it is nice to see that we are going to have the final vote on Bill C-29 in the not-too-distant future. I would suggest that the budget is one that all members should get behind. I do not say that lightly. I say it because I genuinely believe it. There is so much in the budget that people can be very proud of. Even the Conservatives should be proud. After all, they talk about the importance of tax breaks. There is good news in this budget. There is a tax break worth hundreds and hundreds of millions of dollars for Canada's middle class.

Who are the people we are talking about? The bulk of the benefits are going to individuals who are firefighters, sales people, health care workers, or factory shop workers, and many of those jobs are in the hard-working middle class. In excess of nine million Canadians will benefit from this middle-class tax cut. One would think that the Conservative Party would be behind that tax cut. I am sorry to say that the Conservative Party is not voting for that tax cut.

I say to my colleagues across the way that if they were to canvass some of the constituents I just referred to they would find that people would be disappointed in the criticism coming from across the way in regard to this middle-class tax cut.

I would like to think that there is always an opportunity to see one's way clear and understand that this is a good tax cut. I would suggest to my friends across the way that they might want to reconsider their position on this budget.

As much as I am disappointed in terms of how the Conservatives are voting on this, I am somewhat surprised by my New Democratic friends because there is even more within this budget. When we talk about equalization or tax fairness, one of the things I thought the government was right on was to do some readjusting where we actually have a tax on Canada's wealthiest, a significant number of dollars that are going to be coming in and that money is going to be reused.

Given some of the rhetoric coming from the New Democrats on the issue of tax fairness, they are voting against the budget, which ultimately would see an additional tax put on some of Canada's wealthiest people.

However, it is more than that, because when we talk about reaching into our communities and families and trying to enable those who are working hard to become part of the middle class, or are middle class, we have a couple of initiatives that we should all be proud of. I have had the opportunity to talk at great length in the House about them.

One of them is the Canada child benefit program. This is tax free, unlike the Conservatives, who felt even if someone was a multi-millionaire they should still get the tax benefit. We disagreed with that. Those who need it the most are the ones who are going to receive the most under the Liberal plan, and there is a dramatic overall increase to the Canada child benefit program. This is good news. We are going to see thousands of children being lifted out of poverty because of this direct increase to the Canada child benefit program.

We could go on about the guaranteed income supplement. Again, this is something I have talked about in the past. We often talk about the most vulnerable in our communities. How many of us have knocked on a door and run into a senior who is finding it difficult to meet their financial needs? Perhaps it is medication, or additional food supplements, whatever it might be. Often, the most vulnerable are those seniors who are limited to their old age supplement. We have seen a historic commitment to the GIS to the degree that some seniors will get an additional benefit of $900 plus on an annual basis. Many might say that is not much money, but I can assure them, if someone is only receiving $10,000 or $12,000 a year, that is a lot of money. What we are doing by increasing the guaranteed income supplement for our seniors is lifting them out of poverty. We are voting on a budget that is going to lift thousands of seniors out of poverty.

That is not all. We can talk about the infrastructure, but I will defer that for the moment. I want to talk about the importance of a national government working in co-operation with our provinces on two issues. I like to think that we are not only a government for today but we also think about future generations. Not only is our government demonstrating strong national leadership on the file, but we are working with the provinces. I am talking about the Canada pension plan. For years, I sat in opposition when Mr. Harper and the Conservative government did absolutely nothing in regard to the CPP. Even though we had provinces calling for strong national leadership, the Conservative government at the time did absolutely nothing in that regard. Within a year, under the leadership of our Prime Minister, and the Minister of Finance, we were able to get a historic agreement with the provinces and territories that is ultimately going to ensure that our future seniors, our workers of today who are moving our economy forward, are going to be able to contribute a little more toward a pension. At the end of the day, they are going to be receiving more money when it comes time to retire.

That is about having a vision and thinking about future generations. That was something we did not see with the Harper government. It was non-existent in dealing on the issue of pensions.

The other issue that I often hear members talk about is the price on carbon. They made it very clear. The Conservative Party here in Ottawa, albeit unique in the entire country, has declared that the price on carbon is a bad idea. It does not care what real Canadians have to say.

Mr. Speaker, one or two member are starting to applaud on it.

It is a good way to demonstrate just how out of touch with Canadians the Conservative Party today still remains. Political parties of all stripes—and we can talk about the Progressive Conservatives in Manitoba, the NDP in Alberta, or the Liberals in other jurisdictions—have acknowledged the importance of dealing with Canada's environment. We saw that from the Prime Minister, shortly after becoming the Prime Minister, becoming a part of the Paris agreement. Then literally months later, here we are, meeting with our provincial counterparts and we now have an agreement, which includes provincial governments of all political stripes saying that the issue of a price on carbon is a good thing.

We have the Conservative Party saying that, no, it is a bad thing and that the federal government is just trying to raise more money. I should remind the Conservatives—because sometimes I think they like to play with reality and maybe stretch the truth to turn it into a bit of a falsehood—that under that price on carbon, yes, we saw strong national leadership and, through that strong national leadership, we have an agreement that applies in every region of our country. However, Ottawa is not going to get a dime from it. All the money is going back to the provincial and territorial jurisdictions. That is a good thing.

At the end of the day, if we have premiers who want to take that revenue generated and reduce their income tax or another form of tax, they can do that. It is going back to the individual provinces. In fact, many of the provinces already have it in place.

Only the Conservatives are trying to make us walk backwards on the issue. It does not make sense; unless, of course, we believe that the Conservative Party, as I have argued, has lost complete touch with reality and what Canadians feel and know are important.

I would suggest that it is indeed the latter.

The nice thing about when we have debates of this nature is that we are able to express ourselves and, hopefully, members of the Conservative Party will start to question some of their leadership. There are a number of leadership candidates who are running to become their new leader. They might want to try to think outside of the box and see which ones are starting to come up with ideas that Canadians can buy into. I can tell members that there are initiatives that are being taken by this government that will have a very positive impact on Canada's economy and our environment because, as the minister responsible for natural resources has so well articulated, we can do both.

That was clearly demonstrated by this government when we saw the approval of two pipelines and, ultimately, the rejection of one pipeline. We do not believe that there has to be a tradeoff, unlike the NDP that would like to keep all the oil in the ground or the Conservatives who would build a pipeline anywhere, even though they never built an inch of it to tidewaters. If we listen to rhetoric from the two, we hear they are at complete odds.

I would suggest that this government got it right. We set up a process that is fair, a process that allows for consultation, and we are starting to see the benefits of that already. In just over one year, we have been able to accomplish more on the pipeline file than the previous government did in 10 years. We are very proud of that. At the end of the day, look at the benefits of getting the job done: tens of thousands of direct jobs, not to mention the indirect jobs, that are being created by a government that not only cares, but has the ability to get the job done—something the Conservative Party failed at doing.

A lot of things are happening on this side of the House that will impact the everyday lives of Canadians, and those things are coming through a budget that is good for all Canadians in every region of this country.

A great way to emphasize that is by talking about Canada's infrastructure program. I said earlier that I would add some thoughts on the infrastructure program because it is one of the programs whereby we made a tangible commitment to Canadians. Once again, our government is delivering on the commitments that we made to Canadians. We are investing historic amounts of money in infrastructure. Unlike the Conservative Party, we are actually spending the money today in a big way to ensure that the infrastructure moves forward.

Member ask where. Many members are critical of us with respect to Alberta. Not only are we moving forward in Alberta, but for the first time in a long time we have a government that actually walks the talk, as opposed to just talking. Those members just need to look at the number of infrastructure dollars that have been committed to the province of Alberta. The only reason I single out Alberta is because of some of the comments coming from members across the way in regard to that province. The principle I am talking about with regard to Alberta could be applied to every region of our country, where we have seen our national government work with local governments, whether they be municipal or provincial, to deliver priority projects. Millions of dollars have already been committed.

Let us not underestimate the important work of city councillors, MLAs, and community advocates. They came to the table and put in an effort that made it possible for this government to do what Canadians wanted us to do, and that was to invest in Canada's infrastructure. They wanted us to not just talk about. That is something we saw when Mr. Harper sat in the prime minister's chair. This is a government that not only talks about it but gets the job done, because we understand the importance of it.

I could be a bit out on this, but about 70 projects have received approval to date in the province of Alberta. Many of those projects are actually under way; the sod has been turned. This could not have been done without that high sense of co-operation.

So much is happening within our country. There are so many things to talk about. I focused on the budget, and I also focused attention on some national initiatives.

Earlier today a number of members raised the issue of the murdered and missing indigenous women and girls. This is an issue that is very close to my heart. For many years while I sat on the opposition benches I called on the prime minister of the day and the Conservative government to hold a public inquiry. A couple of months into government the Liberals initiated that public inquiry.

Our Minister of Health is truly committed to our strong national health care system. We all benefit from it. Members should ask their constituents what makes them feel good about being Canadian. From my perspective, one of the things would be our health care system. For the first time in many years, we have a Minister of Health who truly believes in Canada's health care system. She has been working diligently at trying to achieve something that the Conservative Party could not achieve and that is to get a health care accord. I would argue that it was because the Conservatives did not want one. We finally have a Minister of Health who is committed to working hard to achieve a health care accord, something that is long overdue.

A personal favourite of mine with respect to policy is immigration, and I referenced that in an S.O. 31. Immigration is so important and valuable for Canada. The population of my home province of Manitoba would have decreased if it were not for immigration over the last 10 years. Our Liberal government continues to fix the many problems with immigration today, whether it is processing times or especially family reunification. I underline family reunification. Marriage is a serious issue and it has to be dealt with.

I see I am out of time, but I still want to talk about housing and so much more. I will wait for a question or two.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, let there be no doubt that the member is an expert at ratcheting up the rhetoric in the House.

There are so many things to fix in the member's commentary, especially on the facts side, and I will deal with a few of them. I know that members on this side of the House will explain whatever else needs to be explained to the member.

What the member said about the carbon tax is that it was introduced in co-operation. However, as I remember it, environment ministers had it dropped on them during an announcement here. They were at a federal, provincial, territorial meeting, and it was imposed on all of the provinces. In fact, it was the current government that said if they did not do this, it would force them. It would shackle them on this policy question and they would have a carbon tax whether they wanted it or not, or whether the residents of their provinces wanted it. Brad Wall, the Premier of Saskatchewan, opposed it. Jason Kenney, the next premier of Alberta, is opposed to it as well.

It is a shell game with taxes. On one side, the Liberals say that they are going to be reducing personal income taxes. However, I have explained to the House repeatedly that it does not benefit middle-class Canadians, because in fact the highest 20% of income earners make over $55,000, and we know that those earning $60,000 can expect $261.44 in an income tax decrease.

With these pretend tax decreases and the carbon tax and the health and dental taxes that are coming in, when will the government actually balance the budget?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member has it all wrong. I do not think he truly understands what has actually taken place. I do not believe that the provinces were bullied into signing off on an agreement. Maybe the member could identify a province that felt it was bullied into signing off on an agreement. My understanding is that, yes, there might have been one province that did not want to sign onto the agreement, and I will concede that particular point to the member. We will have to wait and see what happens from that premier choosing not to sign the agreement.

At the end of the day, every region of this country, and I would argue, the vast majority of Canadians who care about the environment, see that a price on carbon is the right way to go.