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.

Bill C-44—Time Allocation Motion

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Speaker, we believe that a good number of people have had the opportunity to speak. Fifty-four members have spoken. Debate is important, but we think that 12 hours and 25 minutes is enough. We must now do what we are here to do in the House, which is improve our economic growth. That is the goal of Bill C-44. That is what we want to do, and the time is now.

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Speaker, certainly there are significant figures. What I can say in this regard is that we had economic growth of 3.7% in the last quarter. That’s very significant.

In our opinion, the situation and the economic growth rate will improve as a result of the measures contained in Bill C-44. There is another very important figure, and that is the unemployment rate in our country. It is very important to create jobs for Canadians. That is exactly what we have done, with a much lower unemployment rate than before. Moreover, an additional 250,000 jobs have been created over the past seven months. This is very significant, and most of these jobs are full-time.

Time allocation is the only tool the government has to prevent indefinite delays in passing legislation. We do not take this kind of decision lightly, and we remain committed to ensuring that members on all sides of the House are given reasonable time to debate bills. We believe it is time to pass Bill C-44 to create a better future.

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Speaker, as I said, we think we have had enough time to examine Bill C-44. We had a debate that lasted 12 hours 25 minutes. It is very important. Moreover, if we measure it in days, the debate lasted 4 days. We had 10 committee meetings, and 70 witnesses appeared. Finally, in the House, 54 members had the opportunity to speak on this issue.

In our opinion, we have therefore had enough time to examine Bill C-44, and we would like to pass the bill in order to make things better for Canadians.

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Speaker, I would like to repeat that our objective truly is to have a well-functioning House of Commons where all parties agree to work together and study legislation in the best interest of Canadians.

What do we want to make sure we achieve? We want to make sure we achieve outcomes for Canadians that really help them and their families. This is what the program we put in place and our plan is doing. By lowering taxes on Canadians and by putting in the Canada child benefit, we helped families get more disposable income. By the way, this helps our economy as well. What we have seen as a result of those measures and other measures is a reduction in unemployment. It means more people are employed, and that, of course, is what we are really trying to do for Canadians. When we say that we are really proud of what has happened in economic growth, it is not just because of economic growth on its own but because of what it means for job opportunities and for the families of Canada in the future. This is what we are trying to achieve.

We know that putting forward Bill C-44 is going to make a real difference for Canadian families. That is why we are looking forward to moving forward with the kind of measures that will help make sure that this progress scontinues.

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Speaker, it is clear that Bill C-44 contains only budgetary measures that affect our economy. That is why we tabled Bill C-44 in the House.

We know that time allocation is the only tool the government has to avoid indefinite delays in passing legislation. We do not take this type of decision lightly. We remain committed to ensuring that members from all sides of the House are given reasonable time to debate bills.

We continue to carry out our plan to improve our economy and have a significant growth rate. That is why Bill C-44 must be passed for Canada and for Canadians.

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

Mr. Speaker, we sometimes talk about groundhog day, an expression that brings to mind the famous movie in which history repeats itself day after day. The least we can say is that nearly every three days, the government introduces a motion to limit parliamentarians’ right to speak.

That is unfortunate, particularly when it comes to Bill C-44, an essential, foundational law for our democratic process, since it implements the measures announced when the budget was tabled by the Minister of Finance. Need I point out that this is an omnibus bill that includes many other items that deserve much closer attention than simply introducing a bill that we see every day?

Some of the things this bill addresses are Investment Canada, the mandate of the parliamentary budget officer, and, most importantly, the infrastructure bank, which will be created entirely from scratch. On that point, almost all analysts and politicians agree that this is something that should be taken out of the bill so that it can be properly studied at a later date.

As well, our government has decided to use members' speaking time to table motions that, of course, only serve their interests. This morning, was the motion regarding the environment and the Paris accord tabled by the Prime Minister or the Minister of the Environment? No, much to our surprise, it was tabled by the Minister of Finance.

Does that not prove that the Paris accord means just one thing to this government, namely the Liberal carbon tax?

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I love the math skills of the finance minister. There has been twelve and a half hours for debate on Bill C-44. That is a half hour for every billion dollars of deficit in budget 2017. He did not mention the less than two hours in committee to talk about the $35 billion of infrastructure bank money that is coming from of taxpayers. That is not even four minutes for every billion dollars. Is he in such a hurry to spend taxpayer money that he does not want any scrutiny on what is being done?

[Bill Morneau, Liberal, Toronto Centre, ON]

Mr. Speaker, there are a couple of things in the member's question that I would like to respond to. First and foremost, we made a commitment that we would put in our budget bills things that were related to the budget, to spending, not things that were extraneous or not related in any way. That is exactly what we have done in Bill C-44. That continues to be what we want to do in order to make sure the measures that involve spending in the government are actually in the budget bill. That is the case here.

With respect to what we are trying to do, we know that parliamentarians have a responsibility to properly scrutinize legislation and a duty to vote on different pieces of legislation, and we look forward to this bill going to committee. At that stage, we know it can be studied further and we can hear directly in that way through Canadians and experts in a public forum. That is what we are looking forward to doing.

[Bill Morneau, Liberal, Minister of Finance]

Mr. Speaker, a place to start might be to consider the amount of time that Bill C-44 has actually been considered in this House. The total length of debate in hours was 12 hours and 25 minutes. The total length in terms of days was four days. The number of committee meetings was 10, and the total number of witnesses heard was 70.

As we think about the total number of speakers, we have had 54 speakers in this House, and I would like to go through who has had the opportunity to speak. There have been 17 members from the official opposition, eight members from the New Democratic Party, one member from the Bloc Québécois, and, of course, members from our side of the House.

We believe we have had a good amount of time to review this, and we are looking forward to this bill going to committee so that we can scrutinize it further.

[Candice Bergen, Conservative, Portage—Lisgar, MB]

Mr. Speaker, here we are again seeing this government shutting down debate on important pieces of legislation like Bill C-44, the budget implementation act, a bill that has so many pieces that have unanswered questions. I am thinking about specifically the infrastructure bank and the fact that Canadians are going to be on the hook for any losses that might be incurred by investors who want to apparently invest using this infrastructure bank. The bank has not been explained, the risk to Canadians has not been explained, and, if anything, the government is trying to gloss over it by putting it into Bill C-44.

Now we are being told we cannot debate Bill C-44 and ask these important questions. All the while, and this is even more egregious, the government has just introduced and is making us debate two motions, one around the Paris accord, and one tomorrow around foreign affairs issues, both of which are absolutely needless. All the Liberals seem to want is to have someone tell them that they are doing a good job and doing the right thing. They have to use up time in the House of Commons to do that while making us sit here until midnight every single night, though we have no problem with hard work, and using time allocation and shutting down discussion on important things like the infrastructure bank.

This is unbelievable that the Liberals are doing this again and have completely mismanaged this House. How can they defend that?

Infrastructure

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, we tried, but once again, this government is determined to ignore Quebec.

In the current wording of Bill C-44, the infrastructure bank can be made an agent of the crown, allowing it to circumvent Quebec statutes and regulations. This even includes expropriation powers. If that was not its intention, it needs to amend the bill. Otherwise, this will be just one more example of Ottawa walking all over Quebec.

This is the last chance. Will the government remove this power to give the infrastructure bank crown agent status, a power that goes too far?

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, I would like to advise that agreements could not be reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the report stage and third 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.

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 stages of the aforementioned bill.

Infrastructure

[Simon Marcil, Bloc, Mirabel, QC]

Mr. Speaker, the members across the aisle told us simply not to worry. This is hard to say with a straight face. They said that just because they gave wealthy foreign investors the right to expropriate does not mean they will use it. In Mirabel, we have seen what happens when the federal government uses its power of expropriation. Indeed, 97,000 hectares were seized by a previous Liberal government.

Through Bill C-44, they want to give their bank the right to disregard agricultural zoning and do whatever they want with our lands. Does anyone over there understand that no one is interested in their privatization bank?

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, I call on the Minister of Justice. Bill C-44 makes it possible to grant private investors in the infrastructure bank the same privileges as the government itself. Simply put, that means that the financial sector will be above Quebec laws and municipal regulations.

The Minister of Finance can say all he wants that this is not his intention, but that is what his bill says. Constitutional experts agree with us, and the Quebec National Assembly is unanimous on the subject. The finance minister is all alone.

I call on the justice minister to act, since she is responsible for ensuring compliance with our laws. Can she intervene and set things straight?

Motions in amendment

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, I thank my colleague for his excellent comments. I appreciate his question.

Our party denounces the fact that this is an omnibus bill. Since the Bloc is not a recognized party, we have to do a lot of work and research. The Liberals are not keeping their election promises, and that is fuelling cynicism. We have found two instances where they are trying to give their Bay Street friends improper gifts. That needs to change.

The Minister of Finance said that he had no intention of passing bills that would circumvent Quebec laws and municipal regulations, but that is exactly what this bill does. However, we have not heard what the Minister of Justice thinks about this.

I call on the Minister of Justice. I would like to know her opinion and her interpretation of Bill C-44, since the infrastructure bank and the projects that will go through it may be given crown agent status by order of the government.

Does she agree with the Minister of Finance, or does she agree with the five legal experts, including four constitutional experts, that we consulted?