Bill C-44 (Historical)

Budget Implementation Act, 2017, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Part 1 implements certain income tax measures proposed in the March 22, 2017 budget by
(a) eliminating the investment tax credit for child care spaces;
(b) eliminating the deduction for eligible home relocation loans;
(c) ensuring that amounts received on account of the caregiver recognition benefit under the Veterans Well-being Act are exempt from income tax;
(d) eliminating tax exemptions of allowances for members of legislative assemblies and certain municipal officers;
(e) eliminating the tax exemption for insurers of farming and fishing property;
(f) eliminating the additional deduction for gifts of medicine;
(g) replacing the existing caregiver credit, infirm dependant credit and family caregiver tax credit with the new Canada caregiver credit;
(h) eliminating the public transit tax credit;
(i) ensuring certain costs related to the use of reproductive technologies qualify for the medical expense tax credit;
(j) extending the list of medical practitioners that can certify eligibility for the disability tax credit to include nurse practitioners;
(k) extending eligibility for the tuition tax credit to fees paid for occupational skills courses at post-secondary institutions and taking into account such courses in determining whether an individual is a qualifying student under the Income Tax Act;
(l) extending, for one year, the mineral exploration tax credit for flow-through share investors;
(m) eliminating the tobacco manufacturers’ surtax;
(n) permitting employers to distribute T4 information slips electronically provided certain conditions are met; and
(o) delaying the repeal of the provisions related to the National Child Benefit supplement in the Income Tax Act.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2017 budget by
(a) adding naloxone and its salts to the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening conditions;
(b) amending the definition of “taxi business” to require, in certain circumstances, providers of ride-sharing services to register for the GST/HST and charge GST/HST in the same manner as taxi operators; and
(c) repealing the GST/HST rebate available to non-residents for the GST/HST that is payable in respect of the accommodation portion of eligible tour packages.
Part 3 implements certain excise measures proposed in the March 22, 2017 budget by
(a) adjusting excise duty rates on tobacco products to account for the elimination of the tobacco manufacturers’ surtax; and
(b) increasing the excise duty rates on alcohol products by 2% and automatically adjusting those rates annually by the Consumer Price Index starting in April 2018.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Special Import Measures Act to provide for binding and appealable rulings as to whether a particular good falls within the scope of a trade remedy measure, authorities to investigate and address the circumvention of trade remedy measures, consideration of whether a particular market situation is rendering selling prices in an exporting country unreliable for the purposes of determining normal values and the termination of a trade remedy investigation in respect of an exporter found to have an insignificant margin of dumping or amount of subsidy.
Division 2 of Part 4 enacts the Borrowing Authority Act, which allows the Minister of Finance to borrow money on behalf of Her Majesty in right of Canada with the authorization of the Governor in Council and provides for the maximum amount of certain borrowings. The Division amends the Financial Administration Act and the Hibernia Development Project Act to provide that the applicable rate of currency exchange quoted by the Bank of Canada is its daily average rate. It also amends the Financial Administration Act to allow that Minister to choose a rate of currency exchange other than one quoted by the Bank of Canada. Finally, it makes a consequential amendment to the Budget Implementation Act, 2016, No. 1.
Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act and the Bank Act to
(a) specify that one of the objects of the Canada Deposit Insurance Corporation is to act as the resolution authority for its member institutions;
(b) require Canada’s domestic systemically important banks to develop, submit and maintain resolution plans to that Corporation; and
(c) provide the Superintendent of Financial Institutions greater flexibility in setting the requirement for domestic systemically important banks to maintain a minimum capacity to absorb losses.
Division 4 of Part 4 amends the Shared Services Canada Act in order to permit the Minister responsible for Shared Services Canada to do the following, subject to any terms and conditions that that Minister specifies:
(a) delegate certain powers given to that Minister under that Act to an “appropriate Minister”, as defined in section 2 of the Financial Administration Act; and
(b) authorize in exceptional circumstances a department to obtain a particular service other than from that Minister through Shared Services Canada, including by meeting its requirement for that service internally.
Division 5 of Part 4 authorizes a payment to be made out of the Consolidated Revenue Fund to the Canadian Institute for Advanced Research to support a pan-Canadian artificial intelligence strategy.
Division 6 of Part 4 amends the Canada Student Financial Assistance Act to expand eligibility for student financial assistance under that Act to include persons registered as Indians under the Indian Act, whether or not they are Canadian citizens, permanent residents or protected persons. It also amends the Canada Education Savings Act to permit the primary caregiver’s cohabiting spouse or common-law partner to designate a trust to which is to be paid a Canada Learning Bond or an additional amount of a Canada Education Savings grant and to apply to the Minister for the waiver of certain requirements of that Act or the regulations to avoid undue hardship. It also amends that Act to provide rules for the payment of an additional amount of a Canada Education Savings grant in situations where more than one trust has been designated.
Division 7 of Part 4 amends the Parliament of Canada Act to provide for the Parliamentary Budget Officer to report directly to Parliament and to be supported by an office that is separate from the Library of Parliament and to provide for the appointment and tenure of the Parliamentary Budget Officer to be that of an officer of Parliament. It expands the Parliamentary Budget Officer’s right of access to government information, clarifies the Parliamentary Budget Officer’s mandate with respect to the provision of research, analysis and costings and establishes a new mandate with respect to the costing of platform proposals during election periods. It also makes consequential amendments to certain Acts.
This Division also amends the Parliament of Canada Act to provide that the meetings of the Board of Internal Economy of the House of Commons are open, with certain exceptions, to the public.
Division 8 of Part 4 amends the Investment Canada Act to provide for an immediate increase to $1 billion of the review threshold amount for certain investments by WTO investors that are not state-owned enterprises. In addition, it requires that the report of the Director of Investments on the administration of that Act also include Part IV.‍1.
Division 9 of Part 4 provides funding to provinces for home care services and mental health services for the fiscal year 2017–2018.
Division 10 of Part 4 amends the Judges Act to implement the Response of the Government of Canada to the Report of the 2015 Judicial Compensation and Benefits Commission. It provides for the continued statutory indexation of judicial salaries, an increase to the salaries of Federal Court prothonotaries to 80% of that of a Federal Court judge, an annual allowance for prothonotaries and reimbursement of legal costs incurred during their participation in the compensation review process. It also makes changes to the compensation of certain current and former chief justices to appropriately compensate them for their service and it makes technical amendments to ensure the correct division of annuities and enforcement of financial support orders, where necessary. Finally, it increases the number of judges of the Court of Queen’s Bench of Alberta and the Yukon Supreme Court and increases the number of judicial salaries that may be paid under paragraph 24(3)‍(a) of that Act from thirteen to sixteen and under paragraph 24(3)‍(b) from fifty to sixty-two.
Division 11 of Part 4 amends the Employment Insurance Act to, among other things, allow for the payment of parental benefits over a longer period at a lower benefit rate, allow maternity benefits to be paid as early as the 12th week before the expected week of birth, create a benefit for family members to care for a critically ill adult and allow for benefits to care for a critically ill child to be payable to family members.
This Division also amends the Canada Labour Code to, among other things, increase the maximum length of parental leave to 63 weeks, extend the period prior to the estimated date of birth when the maternity leave may begin to 13 weeks, create a leave for a family member to care for a critically ill adult and allow for the leave related to the critical illness of a child to be taken by a family member.
Division 12 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things,
(a) specify to whom career transition services may be provided under Part 1 of the Act and authorize the Governor in Council to make regulations respecting those services;
(b) create a new education and training benefit that will provide a veteran with up to $80,000 for a course of study at an educational institution or for other education or training that is approved by the Minister of Veterans Affairs;
(c) end the family caregiver relief benefit and replace it with a caregiver recognition benefit that is payable to a person designated by a veteran;
(d) authorize the Minister of Veterans Affairs to waive the requirement for an application for compensation, services or assistance under the Act in certain cases;
(e) set out to whom any amount payable under the Act is to be paid if the person who is entitled to that amount dies before receiving it; and
(f) change the name of the Act.
The Division also amends the Pension Act and the Department of Veterans Affairs Act to remove references to hospitals under the jurisdiction of the Department of Veterans Affairs as there are no longer any such hospitals.
Finally, it makes consequential amendments to other Acts.
Division 13 of Part 4 amends the Immigration and Refugee Protection Act to
(a) provide that a foreign national who is a member of a certain portion of the class of foreign nationals who are nominated by a province or territory for the purposes of that Act may be issued an invitation to make an application for permanent residence only in respect of that class;
(b) provide that a foreign national who declines an invitation to make an application in relation to an expression of interest remains eligible to be invited to make an application in relation to the same expression of interest;
(c) authorize the Minister to give a single ministerial instruction that sets out the rank, in respect of different classes, that an eligible foreign national must occupy to be invited to make an application;
(d) provide that a ministerial instruction respecting the criteria that a foreign national must meet to be eligible to be invited to make an application applies in respect of an expression of interest that is submitted before the day on which the instruction takes effect;
(e) authorize the Minister, for the purpose of facilitating the selection of a foreign national as a member of a class or a temporary resident, to disclose personal information in relation to the foreign national that is provided to the Minister by a third party or created by the Minister;
(f) set out the circumstances in which an officer under that Act may issue documents in respect of an application to foreign nationals who do not meet certain criteria or do not have the qualifications they had when they were issued an invitation to make an application; and
(g) provide that the Service Fees Act does not apply to fees for the acquisition of permanent residence status or to certain fees for services provided under the Immigration and Refugee Protection Act.
Division 14 of Part 4 amends the Employment Insurance Act to broaden the definition of “insured participant”, in Part II of that Act, as well as the support measures that may be established by the Canada Employment Insurance Commission. It also repeals certain provisions of that Act.
Division 15 of Part 4 amends the Aeronautics Act, the Navigation Protection Act, the Railway Safety Act and the Canada Shipping Act, 2001 to provide the Minister of Transport with the authority to enter into agreements respecting any matter for which a charge or fee could be prescribed under those Acts and to make related amendments.
Division 16 of Part 4 amends the Food and Drugs Act to give the Minister of Health the authority to fix user fees for services, use of facilities, regulatory processes and approvals, products, rights and privileges that are related to drugs, medical devices, food and cosmetics. It also gives that Minister the authority to remit those fees, to adjust them and to withhold or withdraw services for the non-payment of them. Finally, it exempts those fees from the Service Fees Act.
Division 17 of Part 4 amends the Canada Labour Code to, among other things,
(a) transfer to the Canada Industrial Relations Board the powers, duties and functions of appeals officers under Part II of that Act and of referees and adjudicators under Part III of that Act;
(b) provide a complaint mechanism under Part III of that Act for employer reprisals;
(c) permit the Minister of Labour to order an employer to determine, following an internal audit, whether it is in compliance with a provision of Part III of that Act and to provide the Minister with a corresponding report;
(d) permit inspectors to order an employer to cease the contravention of a provision of Part III of that Act;
(e) extend the period with respect to which a payment order to recover unpaid wages or other amounts may be issued;
(f) impose administrative fees on employers to whom payment orders are issued; and
(g) establish an administrative monetary penalty scheme to supplement existing enforcement measures under Parts II and III of that Act.
This Division also amends the Wage Earner Protection Program Act to transfer to the Canada Industrial Relations Board the powers, duties and functions of adjudicators under that Act and makes consequential amendments to other Acts.
Division 18 of Part 4 enacts the Canada Infrastructure Bank Act, which establishes the Canada Infrastructure Bank as a Crown corporation. The Bank’s purpose is to invest in, and seek to attract private sector and institutional investment to, revenue-generating infrastructure projects. The Act also provides for, among other things, the powers and functions of the Bank, its governance framework and its financial management and control, allows for the appointment of a designated Minister, and provides that the Minister of Finance may pay to the Bank up to $35 billion and approve loan guarantees. Finally, this Division makes consequential amendments to the Access to Information Act, the Financial Administration Act and the Payments in Lieu of Taxes Act.
Division 19 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, expand the list of disclosure recipients to include the Department of National Defence and the Canadian Armed Forces and to include beneficial ownership information as “designated information” that can be disclosed by the Financial Transactions and Reports Analysis Centre of Canada. It also makes several technical amendments to ensure that the legislation functions as intended and to clarify certain provisions, including the definition of “client” and the application of that Act to trust companies.
Division 20 of Part 4 enacts the Invest in Canada Act. It also makes consequential and related amendments to other Acts.
Division 21 of Part 4 enacts the Service Fees Act. The Act requires responsible authorities, before certain fees are fixed, to develop fee proposals for consultation and to table them in Parliament. It also requires that performance standards be established in relation to certain fees and that responsible authorities remit those fees when the standards are not met. It adjusts certain fees on an annual basis in accordance with the Consumer Price Index. Furthermore, it requires responsible authorities and the President of the Treasury Board to report on fees. This Division also makes a related amendment to the Economic Action Plan 2014 Act, No. 1 and terminological amendments to other Acts and repeals the User Fees Act.

Budget Implementation Act, 2017, No. 1

[Yvonne Jones, Liberal, Labrador, NL]

Madam Speaker, I do not know the specific case or circumstances of which my colleague speaks, but I do know this. We have invested substantially in our children. Under our new child tax benefit, we have been able to lift many children out of poverty. We have been able to ensure that families have the kind of supports they need to ensure their children do not go to school hungry, but with all their needs fulfilled. We are making tremendous efforts toward that.

As a government, we have done more to invest in affordable housing than any government over the last decade. That money may not have flowed as quickly as we would have all liked to see it flow, but that money is targeted. It is going to affordable housing. It is going to help the people who need it most. The sooner we can get it there, the better we will all be.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, I am pleased to rise in the House today to speak to Bill C-44, the first budget implementation bill. There are a number of measures in the bill that will affect my constituents, in some cases dramatically, so I am glad to have a chance to represent the views of the great people of Souris—Moose Mountain.

Most of my colleagues here today returned to Ottawa just a week ago after spending two weeks in their constituencies. I always appreciate and cherish the time I get to spend in my riding, speaking to my constituents and getting their feedback on how they think things are going in Ottawa. Unfortunately, my constituents were less than impressed with the Liberals' 2017 budget, which does nothing to help rural Canadians and could end up hurting them in the long run.

It is not breaking news that the Liberals are completely out of touch with the wants and needs of rural Canadians. Just two weeks ago, the Prime Minister was in a small corner of my riding, touring a farm and talking about the carbon tax. My constituents do not want a carbon tax, and they are sick and tired of hearing platitudes and buzzwords from the Liberals. We all know that the Prime Minister's visit to my riding was nothing but a photo op, and that becomes clear when we look at the content of Bill C-44. If the Liberals truly care about western Canada, and specifically those who reside outside of urban centres, they would actually take action and make it a priority to help those who need it.

As I have said before in the House, there are a lot of farms in my riding. They vary in size, and there is a wide variety of produce that is grown down in the southeast corner of Saskatchewan. Something the Liberals seem to forget is that farmers are small business owners. They employ locals. With the drop in oil and gas prices over the last couple of years, these jobs are badly needed. Farmers need to know that their government is supporting them, yet budget 2017 contained almost nothing for them.

What Bill C-44 does contain is a provision that would scrap the income tax exemption for insurers of farming and fishing property. This would likely result in higher insurance premiums for my constituents and would decrease interest in private insurance plans.

This is the last thing that farmers in my riding need. They have enough to manage as it is, given that farming can be a fickle and delicate business when it comes to dealing with weather, pests, and other unpredictable variables. Now their insurance premiums could increase, taking money away from areas where it could be better utilized within the business, not to mention the threat of a carbon tax.

Not only does the Liberal budget increase the costs for farmers, it also does nothing to support them. There were no details regarding the next agricultural policy framework, so Canadian farmers have been left in the dark. Our farmers feed Canada and the world, and they expect their government to support them, not just show up for a photo op in front of a combine or play with a GPS, thinking it is a video game.

While I could likely stand here and talk about the importance of farmers and agriculture all day, I would also like to touch on what the budget contains with respect to veterans.

As some may know, I hold the title of vice-chair of the Standing Committee on Veterans Affairs. It is a role I am proud to have, and over my time on this committee, I have learned a lot about the challenges our veterans face.

The very first study the committee undertook, right after the election of 2015, was on service delivery to veterans. During that study, the committee heard from a wide range of witnesses from all over the veterans community. Many of these witnesses were veterans themselves, and I appreciate their willingness to appear in front of a bunch of politicians to talk about difficult issues relating to their service to Canada.

One of the recurring themes we heard from veterans, medical professionals, bureaucrats, caregivers, and others was the difficulty in transitioning from military to civilian life upon discharge. When a soldier is discharged, and especially those who are medically released, they lose the identity they had for so many years. They were used to being part of a family and having that unfailing support available to them at all times, and suddenly, upon discharge, that family is gone.

This is not just the case for the veterans themselves, but also for their family members, who have established a community of support with other military spouses, children, etc. It is a life-altering change, and while the Liberals have made many promises to help our veterans and their families, the 2017 budget does nothing to help these people today.

Another issue that came up time and time again in the veterans affairs committee was that we commission and train our soldiers to go into battle, but we do not decommission them upon their leaving the Canadian Armed Forces. While Bill C-44 does take steps to create a new education and training benefit for veterans, this does not help them with the loss of identity and purpose that many experience once they return from deployment and are discharged.

Soldiers in the Canadian Forces do not need to make doctor or dentist appointments. That is provided for them. They do not need to fill out paperwork or forms or parse through a convoluted list of benefits that they may not be entitled to, as that is done by someone else on the base. All of this ends once a soldier is discharged and his or her care is moved from DND to Veterans Affairs. An education and training benefit is all well and good, but that is something that is of use further down the road, once a veteran has established himself or herself into civilian life.

Furthermore, there should be no time limit for veterans to figure out whether they wish to use the benefit. Often illnesses like PTSD do not fully manifest until years after veterans are released from the Canadian Forces, and the veterans should have the option to take as much time as they need to pursue education and training following their release from the military.

What our veterans need are solid, available, and effective transition services. This is something that was suggested by the defence ombudsman, yet Bill C-44 would do nothing to enact these recommendations.

For example, one recommendation was that the Canadian Armed Forces retain medically releasing members until such time as all benefits and services from the Canadian Armed Forces, Veterans Affairs Canada, and the Service Income Security Insurance Plan, or SISIP, have been confirmed and put in place. Another recommendation from the ombudsman was that the Canadian Armed Forces establish a concierge service for all medically releasing members that would provide a single point of contact to assist members and their families in all administrative matters regarding the member's transition. These are common sense measures that the Liberals chose not to implement.

Given the size of this omnibus bill, it is shameful that they could not do more to ensure that our veterans and their families have the services and benefits that they need and deserve.

The Conservative Party has always stood up for our veterans, and we on this side of the House believe that our veterans deserve programs and benefits designed to meet their ever-evolving needs, both in the immediate future and sustained over the long term. The Liberals need to do more and they need to do better.

Canadians, including those in rural Canada, are counting on their government to provide them with the support they need in order to thrive here in this wonderful country. Instead, they are getting nickelled and dimed at every possible turn.

The Liberals' spending is reckless and out of control. With a $25.8 billion deficit, the budget will not be balanced until 2055. I do not want my children, my grandchildren, and my great-grandchildren to be paying the price of the current government's callousness when it comes to managing public funds. The 2017 budget and Bill C-44 would not grow the economy or create jobs, but they would hike taxes on beer and wine, child care, and small business owners.

The Liberals need to wake up and realize that Canadians deserve better than this. Canadians need their government to recognize the priorities of ordinary hard-working Canadians and their families, and not just the elite. The Conservative Party will continue to stand up for these Canadians, be the voice of the taxpayer, and hold the Liberals to account for their reckless spending and their lack of touch with reality.

[David Graham, Liberal, Laurentides—Labelle, QC]

Madam Speaker, I will not spend too much time addressing the rather spurious statement from my friend across the way about the Conservatives' support for veterans, given the massive lack of investment and reduction in services for veterans by the previous government of the past decade.

I want to go back to earlier in the member's speech, when he talked about rural issues. I think this budget would help rural areas. I am from a rural riding about half the size of his, and the biggest issue we have in our riding is Internet access. I wonder if the member has similar problems in his riding. Our government has already put in $2.5 billion for Internet through the $500-million connect to innovate program and a $2-billion rural infrastructure program, which has Internet as an eligible component. I think it is really important that the Internet has been called “infrastructure” for the first time.

I wonder if the member has any comments on that in particular?

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, I have had the pleasure of working with my hon. colleague on the veterans affairs committee and I am sad to see he is gone, but I know he has a new role and I wish him well in that new role.

One of the things in this budget with regard to rural Canada is we hear all this talk about rural transit. Rural transit would do nothing for my constituents. If my constituent in Maryfield, Saskatchewan, needs to get to downtown Regina, he or she needs to know and have access to all the aspects. While people may not have transportation, they do have access to the Internet, but that does not help them get to see their doctors. It does not help them get to that doctor in Weyburn and it does not help them get to see that oncologist in Regina.

The present government is promising to put money into green infrastructure. The Liberals are not going to put a green infrastructure transit line from Maryfield, Saskatchewan, to downtown Regina.

[Jenny Kwan, NDP, Vancouver East, BC]

Madam Speaker, I particularly appreciated the member's comments around veterans.

In that same vein, a number of retirees have raised issues with me. With this set of omnibus bills, we do not see the government bringing in legislation that would improve financial security for those retirees, something that the Liberals promised, but they are doing quite the opposite with Bill C-27. This bill would allow crown corporations and federal private sector employers to back out of defined benefit pension commitments. This is impacting a lot of people in a negative way.

One of my constituents asked me to voice his concern and his outrage and his disbelief at the government tabling Bill C-27. Forced into retirement because of declining health, he paid into a defined benefit pension for 34 years, but he is going to see a penalty as a result of the Liberal government's actions.

Does the member think it is right for the Liberals to promise retirees that they would enhance their financial security, yet do exactly the very opposite when they formed government?

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, there are a number of things that I have found with the Liberal government and its promises, particularly when we talk about the Canada pension plan and that aspect of protecting Canadians.

The Liberals promised that they would be giving Canadians security with this Canada pension plan, but it will not benefit Canadians. It is going to cost them more money, thereby adding to their expenses. We are going to end up losing jobs because of this, which is not going to help the economy. I contributed to that program for many years in my previous career as a chiropractor. I had to put double the amount of money in. Even with making a significantly good income, I will not max out on the amount that was promised.

I do not see how the promises that the present government is offering are going to work, either on your issue or on other issues.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

It is not my issue. I would ask members to ensure that they address their questions and comments to the Chair.

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Elmwood—Transcona, Ethics; the hon. member for Regina—Lewvan, Public Services and Procurement; the hon. member for Sherwood Park—Fort Saskatchewan, Human Rights.

Resuming debate. The hon. member for Guelph.

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, the world is changing. Climate change poses serious environmental challenges. A growing number of Canadians, particularly our youth, fear they will never be able to enter the housing market. Growing concerns over the job market have Canadians anxious. These uncertainties mean new challenges for Canadians, but they also represent a source of opportunity to showcase Canadian creativity and innovation, economically, socially, and environmentally.

This is why I rise today in support of the government's proposed budget 2017, because this budget will prepare Canadians for the future, addressing economic, environmental, and social development for our country.

This budget looks to secure and improve upon the gains made in budget 2016, “Growing the Middle Class”. Canada has an economy that is strong, flexible, and full of potential. Canadians reflect this as entrepreneurs and as innovators who can adapt to changing markets as people concerned for our natural heritage and through our concern for each other.

This budget puts Canada on track to build a strong, innovative, and green economy, and improve our social support networks focusing on mental health and housing.

Budget 2017 provides Canadians and Canadian businesses with the tools necessary to continue the economic growth we are experiencing under our government. After many years of flat economic results, last year our economy grew by 1.4%. This year the OECD is predicting growth of 2.4%.

Accurate labour market data is essential in order to continue our growth trajectory. Budget 2017 commits $225 million over four years, and $75 million per year afterward, to support improved labour market information, skills development programs, and measurement of results in Canada. Knowing where our business is experiencing shortages and filling those gaps is essential as our economy grows and as people are now retiring from the workforce in greater numbers.

Knowing exactly what skills are in demand allows us to target the gaps in our economy. This also means addressing the needs of those struggling to join the middle class.

As it stands, Canadians on EI cannot access training programs. Preventing unemployed Canadians from accessing training programs is simply unacceptable. This is why the government is not only reversing this backward policy, but is investing an additional $900 million in training over six years. We need to prevent Canadians from needing EI in the first place, which is why we must address the serious problem of youth unemployment. Budget 2017 builds on budget 2016 to allow part-time students to apply for Canada student loan grants. This has increased grants by 50%. To further expand employment opportunities for young Canadians, budget 2017 also proposes an additional $395 million over three years for the youth employment strategy.

Investing in Canadians is a crucial step to building the economy of the 21st century, but governments must also strategically invest in industries where we can be a global leader. Clusters are dense areas of business activity that contain large and small companies, post-secondary institutions, and specialized talent and infrastructure. Budget 2017 commits to strategic investments in agricultural innovation, advanced manufacturing, clean energy, biosciences, and digital technology.

These actions will grow the economy and promote the livelihood of middle-class Canadians. Guelph can and will play a major role in these areas. This budget is almost written for Guelphites.

The environment is also a cornerstone of this budget. As this government has repeated many times, the economy and the environment go hand in hand. This is why budget 2017 proposes establishing centres for climate services. These centres will improve access to climate science and regional climate resilience centres. The centres will work with local, provincial, territorial, and indigenous partners. This will make it easier for governments, communities, and decision-makers, businesses and organizations to access data and information on climate science.

Investing in green public transit is also crucial. Budget 2017 commits $17 million to develop and implement heavy-duty vehicle retrofits. This plan also includes a carbon pricing program to incentivize innovation and efficiency. This move will reward creative and innovative businesses and raise much needed revenue for the provinces to spend. These investments will help Canada reach its greenhouse gas emission reduction targets and ensure a safer, cleaner world for all Canadians.

This budget addresses systemic social problems which have often been ignored. Since forming government, we have lifted 18 long-term drinking water advisories in first nations in our first year. We are committed to eliminating all boil water advisories, working on solutions with our indigenous communities, researchers, training providers, and businesses. The benefit of our approach is that it is based on long-term planning initiated by first nations leaders, which is why budget 2017 follows through on the promises made in budget 2016 to commit $1.8 billion over five years. Of this, $275 million in targeted funding has already been allocated and 201 projects have already begun.

First nations communities are leading the development of these initiatives, informing the government and partners of what their communities need and want. We will get this done, and we will get it done right. The will is there, the capacity is growing, and people are truly committed to finding long-term solutions based on a new trust.

Addressing the mental health crisis among indigenous groups is also a priority for this government. The effects of depression and suicide, as well as other systemic health issues in indigenous communities, are widespread and unacceptable. Budget 2017 proposes to invest $828 million over the next five years to address the immediate health priorities of first nations and Inuit peoples.

Two areas of social concern addressed in this budget are health care and affordable housing. We are also investing $7 billion over 10 years to create 40,000 child care spaces. Mental health is an increasing concern for all Canadians and budget 2017 proposes to invest $11 billion over 10 years to support better home care and mental health initiatives. Budget 2017 also proposes to create a centre of excellence on PTSD and related mental health conditions. The government has committed $17.5 million over four years and $9.2 million every year after. As the health minister has said, there is no health without mental health. Addressing the unique nature of mental health issues is long overdue.

Adequate and affordable housing is a general concern for all Canadians. That is why we are investing $11 billion in the national housing strategy, to develop a stock of affordable rental housing and other housing to improve the quality of life for Canadian residents. The CMHC will make upfront contributions to providers of affordable housing.

Budget 2017 offers genuine and innovative solutions to the challenges that face Canadians. Through strategic investments in the economy, the environment, and social programs, this budget follows through on the ambitious mandate Canadians gave the government in 2015.

[Martin Shields, Conservative, Bow River, AB]

Madam Speaker, one of the concerns I have is the infrastructure piece with respect to water for indigenous communities. I looked at the infrastructure piece and talked about it for two or three years and throughout the campaign. With respect to the budget, it is one thing to build infrastructure but there is a critical piece that I am looking for. Coming from a municipal background, I can say that it may be easy to build those things, but it is the 24-7 trained staff that we have to have in place. If we did not have them in the municipalities, we got into trouble. That is where many smaller municipalities are.

I cannot see that piece here, the education and training for people in those rural communities to maintain some $200 million of infrastructure. If we do not have it, it will just be gone in a few years. Maybe the member could respond to that critical piece of training and good jobs.

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, the hon. member from out west has made an astute observation. I flew up to Dryden, Ontario, in January of this year to look at the training centre that is being established there. We know there is no point in spending money on infrastructure if there is nobody there to operate it, and operate it effectively. Part of our budget is focused on skills development and training within the first nations, as well as infrastructure investment. Hand in hand, those two investments will help us get to the clean water that our first nations brothers and sisters deserve.

[Jenny Kwan, NDP, Vancouver East, BC]

Madam Speaker, the member talked about the importance of housing. There is no question about that, as in every community there is a great need. The government has talked a lot about it, but on the ground we have yet to see action. I know that in the city of Vancouver, the money has not flowed, even from the 2016 announcement. We have a crisis on our hands, with people who are in dire need of affordable housing. We have co-ops that need assistance as well. Units have already been lost because of the government's lack of action in this regard. That is affordable housing that we cannot afford to lose.

With respect to this national affordable housing program that the government likes to brag about, when will the money actually be spent on the ground to build real units, real affordable housing, for the people who need it now?

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, I thank the hon. member for her passion and commitment to helping people get into affordable housing.

As the federal government, when we are working to establish housing priorities and housing trajectories, we are also working across Canada with the provinces and territories to get housing investments into their budgets. In our first year of being in government, we worked with the provinces and territories to get their budgets to match money coming from the federal government. We are now at that stage and starting to roll out projects, which have to go through a bidding process and a municipal approval process. We are working with all three orders of government. It does take time, but we are on the right track, and we will see progress.

[Jean-Yves Duclos, Liberal, Minister of Families]

Madam Speaker, may I first congratulate my colleague from Guelph for his excellent speech. I would also mention that I have seen the work he has done in his riding in previous months, and I know how committed he is to working toward the development of his community and how dedicated he is to working for the welfare of his constituents. I would like to invite him to give more examples of how the investments that our government is making in communities, families, and workers will make a difference in the lives of the families and communities in his riding.

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, I am honoured to answer the minister. We are looking at the social impacts through the Canada child benefit, which was introduced last time, which was one of the most significant steps a government has ever taken in Canada. Now we are following up with $11 billion, which has not been invested since the 1970s, to get us on track to create affordable housing projects in our communities, thanks to the leadership and vision of the minister and the people who work with him.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, it is another year, another budget, and another set of broken promises rolled up into Bill C-44, the budget implementation act.

There is, I suppose, a certain irony that the government, which claims to be opposed to omnibus bills, would bring in this massive document that touches on so many areas, rather than separate legislation for its new ventures, such as the infrastructure bank. The government hopes that by burying the legislation in these hundreds of pages, it can avoid any detailed scrutiny.

We have to give the Liberals credit for one thing. They are treating Canadians equally, raising everyone's taxes. That is not surprising when we consider the reckless spending by the government. In the 2015 election, the Liberals made a promise to Canadians that they would run a small or modest deficit, perhaps about $10 billion a year in the first year, and then they should be able to balance the budget after their first term. We know now that those were empty promises. I leave it to Canadian people to decide if they were lies or just incompetence.

Once again, the Minister of Finance has let Canadians down. There is nothing small or modest about the deficit he is running. He has no plan to balance the budget by the end of this Parliament, or maybe ever again. The previous Conservative budget suggested balanced budget legislation that would include pay cuts for cabinet ministers while the government was running a deficit. Somehow I do not think we are going to see this government take that sort of principled stand.

Anyone who has ever run a business knows that borrowed money has to be repaid. The Minister of Finance is sinking Canada further into debt, making future generations pay for his spending spree. It is wrong to mortgage Canada's future this way. Politicians should be setting an example, not behaving as if money grows on trees.

The government will tell us it is doing great things with this spending spree. “Look at us”, they say, “Are we not great? We know how to spend money”. Of course, that is the pride the government has shown people so far. Any child can delight in spending money that does not belong to them. Fiscal responsibility is a lot tougher to accomplish, and the government does not seem to want to work hard enough to do so.

What are the great things the government is doing? There are tax increases for 1.8 million Canadian public transit users, for those who drink beer and wine, and for those who donate medicines to worthy causes. There are more tax hikes on child care, on small business owners, such as farmers, fishers, doctors, lawyers, and accountants, on oil and gas companies, and on tourism. The Liberals' motto seems to be “If it breathes, tax it”.

Where spending is needed, they instead cut back. We are looking at major cuts to defence spending, despite demands from the U.S. that other NATO members spend at least 2% of GDP to shoulder a greater amount of the load for our collective security. The government is deferring $8.5 billion in equipment purchases for our military, having already deferred $3.7 billion in the past budget. Our armed forces may be the best trained and bravest fighting force in the world, but the men and women on the front lines cannot do their jobs without proper equipment.

National defence is clearly not a priority for the Liberal government. In an era of reckless Liberal spending, it is appalling that the largest cuts are consistently at the expense of the Canadian Armed Forces. This raises the question of whether or not the Liberals believe that Canada needs the ability to defend itself and our allies. Recent examples—including the Liberals' decision to pull our CF-18s out of the fight against ISIS, their preference for fourth generation fighter jets, their lack of increased support for our Ukrainian allies, and their failure to advance important procurement projects—suggest the Liberals expect other countries to do Canada's share.

They say Canada is back, but only as long as we are not asked to do anything, except look pretty.

The Liberals have repeatedly delayed releasing their defence policy review. Instead of ensuring that our men and women in uniform have the best equipment, training, and support available, it is looking more and more likely that Canada's military will be further scaled back and asked to do more with less.

Since the Liberals took office, 94% of announced infrastructure projects have failed to start construction. It is just big talk, with no walk. This means that jobs are not being created and the economy is not being stimulated. Instead of coming up with a new plan that actually builds infrastructure and creates jobs, now the government wants to double down on the existing infrastructure plan that has been proven not to work. This is how the Liberals define innovation.

We already knew that the Liberals were planning to take billions of dollars away from communities to pay for their infrastructure bank. Now we learn that they are also going to cancel the public transit tax credit, making it more expensive for Canadians to use public transit. The Liberals talk about something, but do something else.

Additionally, by allocating public transit funding based on ridership, the Liberal government is disadvantaging Canada's growing communities in favour of already developed urban centres. It looks as if no new public transit spending will occur in 2017-18. Indeed, the Liberals have decreased the federal share of funding for public transit projects to 40% and failed to include provincial cost sharing requirements. Without matching funding, municipalities may not be able to complete important projects. It is a mistake for the Liberals to continue to allocate public transit funds based primarily on ridership numbers. This formula favours large urban centres that already have developed public transit systems, and it disadvantages growing communities that arguably need these funds more.

Municipalities need good infrastructure, but they also need programs that are easy to access, provide predictable funding, and do not leave small and rural communities behind. They also need money now, not at some point in the far future, in 2050 or in the 22nd century.

We know that $1 billion of lapsed infrastructure funding from 2016 will not be reallocated until 2022-23, and that $15 billion will be taken away from community infrastructure projects in order to finance the Liberals' new infrastructure bank, including $5 billion removed from public transit projects, $5 billion removed from trade and transportation corridor projects, and another $5 billion removed from green infrastructure projects. That is taking away money that costs less, to borrow money that would cost two or three times more.

Bill C-44 includes the Canada infrastructure bank bill, but it is hazy on some details. Will foreign investors get to decide which infrastructure projects it funds? We already know that it will not be operating at arm's length, making it susceptible to Liberal government interference in its decisions.

One last thing I would like to look at is the changes this bill makes to the operation of the parliamentary budget officer. It is important to note that the government did not consult the PBO on these changes but has introduced them unilaterally. The PBO has expressed concerns about this legislation and its impact on his ability to do his job. He feels it will undermine the independence and non-partisanship of the PBO and undercut his office's ability to support Parliament.

This should be a concern for all parliamentarians, regardless of their political affiliation. This act makes changes to the degree of control that the Speakers of the Senate and the House of Commons will be expected to exercise over the PBO's activities, and it places limits on the PBO's ability to initiate reports and members' ability to request cost estimates of certain proposals.

To involve the PBO in the costing of election platforms, as this act does, seems to me to risk the non-partisan nature of the office. No matter—