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.

[Amarjeet Sohi, Liberal, Edmonton Mill Woods, AB]

Yesterday we launched the search for the leadership team of the bank. We will be recruiting the CEO for the bank, and the board chair, as well as board members. That information is out. We encourage all Canadians to apply. The legislation has been introduced as part of the budget implementation act. If that is passed by Parliament, the bank will be legally established and our goal will be to have it running by the end of 2017.

The House resumed from May 5 consideration of the motion that Bill C-44, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, be read the second time and referred to a committee, and of the amendment.

Bill C-44—Time Allocation

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

Madam Speaker, someone who is wiser than I once said, “Justice without force is powerless; force without justice is tyrannical.”

Bill C-44 is not just any bill. It is a bill that clips the wings of the parliamentary budget officer, makes it easier for foreigners to acquire Canadian companies, and creates an infrastructure bank that will cost taxpayers a lot of money, while making a big profit for the finance minister's friends on Bay Street.

This bill also eliminates the public transit tax credits that helped ordinary Canadians. It raises taxes for wine producers and microbreweries.

I cannot understand how the Minister of Finance can say that a day and a half of debate is enough for parliamentarians to do their work on a bill that amends no less than 30 laws. The Liberal government has a lot of nerve saying that.

Why does the finance minister have such disdain and contempt for the rights of parliamentarians?

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

Madam Speaker, this budget clearly expands on our government's ambitious plan. It continues help for the middle class, it has great support for veterans, and it strengthens our health care system. What I find particularly important is the increased family leave and the flexible benefits for parents. Being a father of two young children myself, the importance of this measure speaks volumes about where this government is heading and the compassion this government has for families and the middle class.

I wonder if the Minister of Finance can comment on why it is important to get these measures, and the other key features in the implementation act, before a committee so we can make this the law of the land and families can benefit from the measures in Bill C-44 that will actually help Canadians.

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

moved:

That in relation to Bill C-44, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures not more than one further sitting day shall be allotted to the consideration of the second reading stage of the said bill; and

That fifteen minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration of the second reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the said stage of the bill shall be put forthwith and successively without further debate or amendment.

[Patrick Halley, Director, International Trade Policy Division, International Trade and Finance Branch, Department of Finance]

Thank you, Mr. Chair.

Division 1 of part 4 pertains to amendments to the Special Import Measures Act. This is the primary legislation governing Canada's trade remedy system, which provides for the application of duties to address situations where dumped or subsidized imports cause injury to domestic producers.

The Minister of Finance is responsible for the legislation and policies relating to Canada's trade remedy system, which is jointly administered by the Canada Border Services Agency and the Canadian International Trade Tribunal.

There are four key legislative amendments being proposed in part 1. The first change relates to the implementation of a World Trade Organization dispute settlement decision, which found that Canada was in breach of its international trade rules. With these changes, Canada's trade remedy system will allow for determination and trade remedy investigation when an individual exporter is found to have an insignificant amount of subsidy or dumping.

The remaining three changes relate to proposals on which public consultations were conducted at this time last year. Two new proceedings will be created related to the enforcement of trade remedy measures.

First, primarily in clauses 87 and 89, there will be new scope proceedings that will provide for binding and appealable rulings as to whether a good is subject to anti-dumping or countervailing duties. These proceedings will enhance transparency and predictability related to the enforcement of trade remedy measures in Canada.

The second set of changes relates to new anti-circumvention investigations. They are primarily in clauses 84 and 89. These new anti-circumvention investigations will provide for the extension of duties to goods from exporters who are modifying their trade patterns specifically to avoid the imposition of duties in Canada. This will provide the Canada Border Services Agency with enhanced tools to address circumvention and more effective enforcement.

Third, CBSA will also be given new powers to respond to situations where market distortions in the country of export make prices unreliable for the purpose of calculating dumping margins, for example, when there are price controls by the government. This will ensure that trade remedy duties are accurately reflecting market conditions in the country under investigation.

Finally, one item that is not in Bill C-44 but was in budget 2017 was the proposal that unions be provided with the right to participate in trade remedy investigations. This change is being implemented in a parallel process, namely regulatory amendments. So it is not in this bill, but was announced in the budget.

Overall, these changes will strengthen Canada's response to unfair trade, better align Canada with our major trading partners, and ensure that we are abiding by international trade obligations. They provide important new tools for trade remedy investigators in Canada while maintaining the system's balance of interest between domestic producers, downstream users, and consumers.

That concludes our presentation.

We would be glad to answer any questions you have.

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

Thank you, Chair.

Gentlemen, it's always a pleasure to talk to you. A few minutes ago or an hour ago, we had the chance to talk about tax on alcohol. I would like to talk about tax on tobacco. I think Mr. Coulombe will be my counterpart.

It will be my pleasure to speak with you again, Mr. Coulombe. Thank you very much for the specific details you gave us about alcohol tax.

Now, let's talk about the tobacco tax.

We know that Canada had a sad reputation in 1981: we were the country that consumed the most tobacco per capita. Through vigorous awareness campaigns to alert the public, tobacco consumption in Canada has declined nicely. Our country now ranks among the best. We are not the best, but among the best in terms of use. When I say that we are among the best, it means that the less we use, the better.

Obviously, it is not without raising the anger of some who are sad to see that the current government wants to legalize marijuana, but that's another matter. Let's keep to Bill C-44, in accordance with the chair's most pertinent instructions.

Mr. Coulombe, I assume you have assessed the impact of the increase in the excise tax on tobacco. Is it calculated in the same way as for the excise tax on alcohol, meaning it's calculated based on the rising staircase principle, which can also have consequences on the other industries that depend on that?

I want to say right now, that clearly alcohol does not do harm people's health in the same way as cigarettes. As I mentioned earlier, the impact of alcohol in restaurants and drinking places has nothing to do with the impact of tobacco.

[The Chair, Liberal, Wayne Easter]

We're here to deal with Bill C-44, but if there is an area that the department can provide further clarification on, I don't have a problem with that because they could either be asked for further clarification on it at this committee or via an Order Paper question. If any of the witnesses think they want to take a stab at this, they're open to do it.

[The Chair, Liberal, Wayne Easter]

We'll come to order. We're still taking questions on parts 1, 2, and 3 of Bill C-44.

Mr. Dusseault, the floor is yours.

Bill C-44—Notice of time allocation motion

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, an agreement could not be reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the second reading stage of Bill C-44, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2017, and other measures. Not more than one further sitting day shall be allotted to the consideration of the second reading stage of the said bill.

Under the provisions of Standing Order 78(3), I give notice that a minister of the crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage.

[The Chair, Liberal, Wayne Easter]

Does this have any relation to Bill C-44?

[The Chair, Liberal, Wayne Easter]

As far as your question is concerned, Mr. Liepert, I think it can be directed the minister when he is before us, because relates to something he said, but that item is not in this particular bill, Bill C-44.

[The Chair, Liberal, Wayne Easter]

I will call the meeting to order. We are dealing with the budget implementation act, Bill C-44. We have with us today a number of individuals from Finance Canada.

Sometimes we deal with each part, and then go to questions. We'll have the presentations on part 1, then the presentations on part 2, then the presentations on part 3, and then we'll go to questioning of all of the witnesses.

Are people okay with that?

Starting with part 1, we have Mr. McGowan, Mr. LeBlanc, and Mr. Greene.

I don't know if in your opening statements you want to mention your areas of responsibility, because I don't have that information in my documents.

Oh, yes I do.

I'll give your title, Trevor. Mr. McGowan is the senior legislative chief, tax legislation division, tax policy branch. Mr. LeBlanc is the director, personal income tax division, tax policy branch. Mr. Greene is the director, tax policy branch.

Welcome. The floor is yours on part 1, amendments to the Income Tax Act and to related legislation.

Government Accountability

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, as we said during the campaign and as we continue to say, we would like to advance the independence of the parliamentary budget officer. We actually thanked the parliamentary budget officer for his analysis of the provisions of Bill C-44. We look forward to working with him and others to improve the bill to ensure we accomplish the objective of an effective and independent parliamentary budget officer.

I have said to the member and to all members, let us pass this legislation at second reading. Let us send it to committee so we can advance the independence of the parliamentary budget officer. We can do this together.

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

Mr. Speaker, omnibus Bill C-44, introduced by the Minister of Finance, contains a virus. That virus directly attacks the independence of the parliamentary budget officer, which defies reason. The parliamentary budget officer is independent and must stay that way. With this bill, the Speaker of the Senate, who is not elected but appointed by the Prime Minister, will have veto power over the work of the parliamentary budget officer.

Can the Minister of Finance, who is an honourable man, explain such an unacceptable situation?