Bill C-63 (Historical)

Budget Implementation Act, 2017, No. 2

A second 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) removing the classification of the costs of drilling a discovery well as “Canadian exploration expenses”;
(b) eliminating the ability for small oil and gas companies to reclassify up to $1 million of “Canadian development expenses” as “Canadian exploration expenses”;
(c) revising the anti-avoidance rules for registered education savings plans and registered disability savings plans;
(d) eliminating the use of billed-basis accounting by designated professionals;
(e) providing enhanced tax treatment for eligible geothermal energy equipment;
(f) extending the base erosion rules to foreign branches of Canadian insurers;
(g) clarifying who has factual control of a corporation for income tax purposes;
(h) introducing an election that would allow taxpayers to mark to market their eligible derivatives;
(i) introducing a specific anti-avoidance rule that targets straddle transactions;
(j) allowing tax-deferred mergers of switch corporations into multiple mutual fund trusts and allowing tax-deferred mergers of segregated funds; and
(k) enhancing the protection of ecologically sensitive land donated to conservation charities and broadening the types of donations permitted.
It also implements other income tax measures by
(a) closing loopholes surrounding the capital gains exemption on the sale of a principal residence;
(b) providing additional authority for certain tax purposes to nurse practitioners;
(c) ensuring that qualifying farmers and fishers selling to agricultural and fisheries cooperatives are eligible for the small business deduction;
(d) extending the types of reverse takeover transactions to which the corporate acquisition of control rules apply;
(e) improving the consistency of rules applicable for expenditures in respect of scientific research and experimental development;
(f) ensuring that the taxable income of federal credit unions is allocated among provinces and territories using the same allocation formula as applicable to the taxable income of banks;
(g) ensuring the appropriate application of Canada’s international tax rules; and
(h) improving the accuracy and consistency of the income tax legislation and regulations.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures confirmed in the March 22, 2017 budget by
(a) introducing clarifications and technical improvements to the GST/HST rules applicable to certain pension plans and financial institutions;
(b) revising the GST/HST rules applicable to pension plans so that they apply to pension plans that use master trusts or master corporations;
(c) revising and modernizing the GST/HST drop shipment rules to enhance the effectiveness of these rules and introduce technical improvements;
(d) clarifying the application of the GST/HST to supplies of municipal transit services to accommodate the modern ways in which those services are provided and paid for; and
(e) introducing housekeeping amendments to improve the accuracy and consistency of the GST/HST legislation.
It also implements a GST/HST measure announced on September 8, 2017 by revising the timing requirements for GST/HST rebate applications by public service bodies.
Part 3 amends the Excise Act to ensure that beer made from concentrate on the premises where it is consumed is taxed in a manner that is consistent with other beer products.
Part 4 amends the Federal-Provincial Fiscal Arrangements Act to allow the Minister of Finance on behalf of the Government of Canada, with the approval of the Governor in Council, to enter into coordinated cannabis taxation agreements with provincial governments. It also amends that Act to make related amendments.
Part 5 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 5 amends the Bretton Woods and Related Agreements Act to update and clarify certain powers of the Minister of Finance in relation to the Bretton Woods institutions.
Division 2 of Part 5 enacts the Asian Infrastructure Investment Bank Agreement Act which provides the required authority for Canada to become a member of the Asian Infrastructure Investment Bank.
Division 3 of Part 5 provides for the transfer from the Minister of Finance to the Minister of Foreign Affairs of the responsibility for three international development financing agreements entered into between Her Majesty in Right of Canada and the International Finance Corporation.
Division 4 of Part 5 amends the Canada Deposit Insurance Corporation Act to clarify the treatment of, and protections for, eligible financial contracts in a bank resolution process. It also makes consequential amendments to the Payment Clearing and Settlement Act.
Division 5 of Part 5 amends the Bank of Canada Act to specify that the Bank of Canada may make loans or advances to members of the Canadian Payments Association that are secured by real property or immovables situated in Canada and to allow such loans and advances to be secured by way of an assignment or transfer of a right, title or interest in real property or immovables situated in Canada. It also amends the Canada Deposit Insurance Corporation Act to specify that the Bank of Canada and the Canada Deposit Insurance Corporation are exempt from stays even where obligations are secured by real property or immovables.
Division 6 of Part 5 amends the Payment Clearing and Settlement Act in order to expand and enhance the oversight powers of the Bank of Canada by further strengthening the Bank’s ability to identify and respond to risks to financial market infrastructures in a proactive and timely manner.
Division 7 of Part 5 amends the Northern Pipeline Act to permit the Northern Pipeline Agency to annually recover from any company with a certificate of public convenience and necessity issued under that Act an amount equal to the costs incurred by that Agency with respect to that company.
Division 8 of Part 5 amends the Canada Labour Code in order to, among other things,
(a) provide employees with a right to request flexible work arrangements from their employers;
(b) provide employees with a family responsibility leave for a maximum of three days, a leave for victims of family violence for a maximum of ten days and a leave for traditional Aboriginal practices for a maximum of five days; and
(c) modify certain provisions related to work schedules, overtime, annual vacation, general holidays and bereavement leave, in order to provide greater flexibility in work arrangements.
Division 9 of Part 5 amends the Economic Action Plan 2015 Act, No. 1 to repeal the paragraph 167(1.‍2)‍(b) of the Canada Labour Code that it enacts, and to amend the related regulation-making provisions accordingly.
Division 10 of Part 5 approves and implements the Canadian Free Trade Agreement entered into by the Government of Canada and the governments of each province and territory to reduce or eliminate barriers to the free movement of persons, goods, services and investments. It also makes related amendments to the Energy Efficiency Act in order to facilitate, with respect to energy-using products or classes of energy-using products, the harmonization of requirements set out in regulations with those of a jurisdiction. Finally, it makes consequential amendments to the Financial Administration Act, the Department of Public Works and Government Services Act and the Procurement Ombudsman Regulations and it repeals the Timber Marking Act and the Agreement on Internal Trade Implementation Act.
Division 11 of Part 5 amends the Judges Act
(a) to allow for the payment of annuities, in certain circumstances, to judges and their survivors and children, other than by way of grant of the Governor in Council;
(b) to authorize the payment of salaries to the new Associate Chief Justice of the Court of Queen’s Bench of Alberta; and
(c) to change the title of “senior judge” to “chief justice” for the superior trial courts of the territories.
It also makes consequential amendments to other Acts.
Division 12 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.
Division 13 of Part 5 amends the Financial Administration Act to authorize, in an increased number of cases, the entering into of contracts or other arrangements that provide for a payment if there is a sufficient balance to discharge any debt that will be due under them during the fiscal year in which they are entered into.

Budget Implementation Act, 2017, No. 2

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

Mr. Speaker, first, allow me to say that the hon. member used the Liberals classic talking point, “the middle class and those working hard to join it”.

I say this facetiously, but in Canada there are people who are bilingual and those working hard to join them. The hon. member is one of those and I commend him on his efforts to learn French.

The member addressed an issue with which I totally disagree, and he forget a few very important elements. He talked about the fact that families had more money in their pockets. However, he forgot to say that this money was not available now. We are borrowing this money from our children, because the government is creating a deficit. Our government gave many tax credits to help families with sports activities, artistic activities, student loans, and all of that, but the Liberal government cancelled those.

The member also raised the issue of Paul Martin as the one who killed the deficit in the 1990s. He was a great prime minister, but unfortunately the current Prime Minister is recreating the deficit, and that is wrong.

The member also talked about the 1% who paid more taxes. That is not true. The finance department concluded in a report a few weeks ago that the 1% paid $1 billion less.

Speaking of millionaires, could he identify a Canadian millionaire who hired two nannies and sent the bill to the Canadian taxpayers?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I thank my colleague from the beautiful province of Quebec for his question.

The results of our plan speak for themselves. Whether it is on the job front, the unemployment rate, or wage gains that Canadians are making, the evidence is clear. Two years in, we have created 450,000 new jobs. We have just indexed the CPP, which is a transformational measure to help Canadian families and reduce poverty. We will continue working on that front.

We will continue working with Canadians from coast to coast to coast. We will continue consulting and working with all our stakeholders to ensure we get things right. We are listening to everyone. Our economy is going the right way. The country is doing great. We will continue to do the good work that Canadians expect us to do.

[The Assistant Deputy Speaker, Anthony Rota]

The hon. member for Vaughan—Woodbridge will have seven minutes and 35 seconds coming to him in questions when we take up this bill again.

It being 5:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's Order Paper.

The House resumed from November 2 consideration of the motion that Bill C-63, A second 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.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, it is an honour to stand in the House today, 150 years since the very first sitting on November 6, 1867.

Before I move onto this, it is appropriate that I send our thoughts and prayers to friends, families, colleagues, and first responders who attended the church shooting in Sutherland Springs, Texas. Our thoughts and prayers are with the friends, the families, and all first responders in that entire community. Just as they are grieving, we are grieving with them.

I thought about what I would say on the fall economic statement. Today, I will talk about our legacy because, at the end of the day, all of us will be remembered for something. In preparing for this speech, I stumbled across a couple of quotes that I thought I would enter into the records. The first is, “No legacy is so rich as honesty.” That was by William Shakespeare. Over the last two year, we have seen the Prime Minister's actions, his direction and his choice of how he will move forward in his mandate or what he believes is his mandate.

I coached for a long time. I would always tell our kids, when I was coaching hockey, or baseball, or soccer or when I was working with youth groups, that they would go through this life once. At the end of the day, all they would have was their integrity, their legacy. I would ask them what they would like to leave behind, or what would be their brand as they moved through life. When I would worked in schools, I would talked to kids. I would ask them what a brand was. They would say that a brand was the swoosh on a Nike shoe, or it was the great big A&W sign or the bear for A&W. I would tell them that their brand was what people would say about them after they left the room. The kids talked about the the swoosh or all those other items. These are logos and marketing tools, but a brand is really what people say about us.

If we compare governments and prime ministers over the years, Prime Minister Harper took us from back row and second from the left to principled leadership and the front row. That will no doubt elicit jabs from the other side, but I want to offer this. We had a leader who was principled, who put his thoughts always on Canadians, how our policy would impact those who elected us, how we were seen on the world stage with respect to Canada as a collective as one nation, and I have the examples to back it up.

There are those of us who are more concerned about how we are perceived through the lens of others than how our actions are perceived and what our legacy will be. I will use a very recent example.

We have a young Prime Minister who has been in Vogue. He has been seen planking, photo bombing through Stanley Park in my beautiful province of British Columbia. He has been seen with his shirt off. Far be it for me to criticize.

We had a leader who was known for his principled leadership. Now there is a leader who is known for fancy socks or for showing up in question period in a Superman Halloween costume underneath his clothes. I was in the House that day. Many on this side were wondering if he had a new haircut. Somebody said that he was trying to be Waldo. I said no. I said that if we had learned anything over the last two years, it was that he believed he was Superman. I said he was trying to Clark Kent. The Prime Minister left part way through question period and returned quickly. Shortly thereafter in social media was the Prime Minister coming down the stairs showing the large Superman logo. He thought that was very novel and that it would be on the front page of newspapers.

At a time when fishers, farmers, and small business people are suffering, the Prime Minister is being investigated by the Ethics Commissioner. The finance minister is embroiled in an investigation, one that I do not know we ever have seen before. He seemingly has profited since being in office. He introduced legislation that would benefit the companies in which he had assets. We now know that there are more hidden businesses, numbered companies, in the Bahamas. The latest leak in the last 24 hours is that there are more questions. Canadians are hearing about questionable actions, which are leading to more questions.

I come back to our legacy. When I ran in the election, I had an opportunity to speak to a few members of Parliament, a few MLAs, and leaders within the community, who I hold in high esteem. They are really my mentors and I respect them. They put our constituents first. I think the world of Mayor Lyn Hall in my riding. During the course of the wildfires, he led his team with actions, not just words. He helped alongside myself and some of the MLAs as our community grew beyond our traditional population base. We welcomed 11,000 evacuees into our community and looked after them. We opened up our hearts and homes and looked after them.

With true leadership, MLA Mike Morris, MLA Shirley Bond, and MLA John Rustad did whatever they could to ensure that those in our communities were cared for. We do that every day, not just when there are emergencies. Why? Because we care more for how those in the community who elected us are doing than getting a picture on the front page of a newspaper, wearing new socks, walking a red carpet, or taking a selfie. We care about those who elect us. We care deeply about our communities. We care deeply about Canadians.

We have a government that campaigned on promises to Canadians, that said they were ready to lead. They said real change will be coming. Have we ever seen real change. The Liberals announced in their fall fiscal update that they have no plan to get back to a balanced budget. They have no plan, because it is not their money. They have no idea.

When I talk about my family finances, I do not refer to them as my fortune. In my riding of Cariboo—Prince George, there are very few people who can stand before a mike or a camera and talk about their family's fortune. They would probably say they are worried about their family's finances or how they are going to make ends meet. They would probably say they are worried about the fact that Canada does not have a softwood lumber agreement in place.

There is a further concern in terms of one of our number one industries within the province of British Columbia. This past weekend, Tolko, one of the largest mills in my riding and located in Williams Lake, had a massive fire. This added further insult to the fact that we lost 53-million cubic metres of fibre in the wildfires this past summer.

The Liberal government has dithered away any opportunity to get a softwood lumber agreement in place, and hundreds of people have been waiting to see their government stand up for them and fight. Now there is further uncertainty in our communities. There is further uncertainty in our communities because of what the government has done. The Liberals like to say that Canadians are far better off, but the reality is that hydro, gasoline, home heating, health and dental benefits, employee discounts, personal savings, life-saving therapies, and local businesses have all been attacked by them, regardless of what they say.

People at home are listening to this debate today. People in the gallery are listening. I can say that everyone gets talking points. Government members get talking points. When we ask the hard questions that Canadians want us to ask, time and time again the Liberals will stand up and give the same repetitive answer, which turns out to be a non-answer. Why is that? It is because they do not believe they have to answer to Canadians.

There is another quote that I want to mention, “All good men and women must take responsibility to create legacies that will take the next generation to a level we could only imagine.” What level are we talking about for the next generation? Under the leadership of Prime Minister Trudeau, what is the government going to leave to the next generation? The debt we are incurring today, the money we are talking about today, is not free money. It has to be paid back. Who is going to pay that money back? It will be my kids. It will be their kids. The next generation will have to pay it back. That will be the Liberal legacy.

I have stood in the House a number of times since the summer. I have talked about the wildfires and how our communities managed to rally together.

Speaking about legacies, there is a gentleman back home who is very sick. I believe he knew how sick he was during the summer. Regardless of how sick he was, he continued to fight the fires. He continued to lead teams all on his own. He is a local logging contractor whose name is Lee Todd. He is legendary in the Cariboo. However, he was sick, and I am not quite sure how sick, but he flew his personal helicopter to try to spot where the first fires were. He led other local contractors.

In the Cariboo, we do not take no for an answer and we do whatever we can to get things done. Regardless of whether it is prescribed, we just get it done. We do not ask for permission, many times we beg forgiveness afterward, but we get the job done. Nobody knows what tomorrow is going to bring but, for me, one of Lee's legacies is going to be that regardless of his own health and well-being, he continued to lead and do whatever he could. For example, he opened his shop and fed the firefighters and contractors who wanted to save our community.

I throw that in because, again, when we are talking about legacy and moving forward, we have to be reminded time and again that this House does not belong to us. It does not belong to the government or to those of us on the side. It belongs to Canadians. We were elected to be here and be their voices. We have talked about parliamentary privilege over the last year. That privilege is not so we can get to the front of line, ride in fancy vehicles, or attend fancy events. Parliamentary privilege is there to protect the rights of Canadians. This has been forgotten.

We have a Prime Minister and a House leader who wanted to change the standing rules of the House because they thought it would modernize them. They have invoked closure on debate, time allocation, time and again. I know what is going to come from the other side. They are going to start pointing fingers and saying that when those guys were in power this is what they did. Well, I can only speak about my experience. I am a new member of Parliament, as people know. I am fortunate that the good people of Cariboo—Prince George elected me. I have lived every day of being elected with the mindset of asking what my legacy is, because I may only get the chance to be elected once. We do not know how long this opportunity is going to last. Whatever we do, we should try to impact and change as many lives as we can.

Hopefully, people see that they have a fighter and I am fortunate enough to be elected in the next election. Whether it is my bill, Bill C-211, that calls on the government to develop a national framework with respect to post-traumatic stress disorder; our work in talking about the impacts of impaired driving on families, which loss never heals regardless of time; working with my colleagues on this side of the House to hold the government accountable and fight for Canadians; working with colleagues across the way on team Canada approaches, and going to the U.S. to sit side by side with them and presenting team Canada, not being partisan, but team Canada; or whether it is through parliamentary trips, we always have to be mindful of what our legacy is.

I know my time is very short. I want to leave everyone with this last quote, and I have one question after that. John Diefenbaker said, “Freedom is the right to be wrong, [freedom is] not the right to do wrong.” I think that is so important. I am going to leave my colleagues with this. Before the partisan jabs come out, I want to ask everyone in the House what they want their legacy to be and what they want to be remembered for. Is it standing up for someone who is hiding assets and making it harder for Canadians? Fight, fight for Canadians.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Speaker, let me begin by making a comment. It is very easy to make personal attacks. It would be very easy for me to make personal attacks against the previous Prime Minister Stephen Harper. However, I will not do that, because that is not what Canadians want. What I will do is focus on the member's comments about a legacy. One thing that this Prime Minister has proven as part of his legacy is a confidence and a belief in Canadians. That is why this Prime Minister has held unprecedented levels of consultations, which have resulted in some of the measures included in Bill C-63.

Just as an FYI, it is not the Prime Minister who is asking to take selfies, it is Canadians who are asking to take selfies with the Prime Minister. That is a vote of confidence. That is an indication of a great legacy and a great brand.

I will provide the member with a few facts. There are over 450,000 more new jobs today than there were in 2015. In October alone, there were over 30,000 new jobs created. We have had the lowest unemployment rate since 2008. We have had the fastest growth in the G7. Are these not things that the member would acknowledge are a great legacy and that our Prime Minister and this Liberal team can be very proud of?

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

There we go, Mr. Speaker, she answered the question. That is exactly what I said the Liberals are worried about, their brand. She said that it was because of their “brand”. Oh my gosh, the arrogance is staggering.

Let me speak first to this “FYI”. It is not about the brand of the Prime Minister, it is about the policy that impacts Canadians. We know that 80% of Canadians pay more tax under the current government than they did with us.

Let me also talk about the consultations of the Liberals. Whether it is with respect to Bill C-63 or Bill C-55, Canadians are saying that the current government is not listening to them. Therefore, in my file on fisheries, oceans, and the Canadian Coast Guard, time and again, Canadians, whether they are our first nations, stakeholders, fishermen, or farmers, those people at the grassroots are telling us that the Liberals are not listening. They are more worried about their brand than they are about Canadians. That is the problem.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, I am so pleased that my colleague from Cariboo—Prince George has highlighted the legacy of failings of the Liberal government. Also, I very much appreciate that he highlighted that this is not about serving Canadians, it is about branding the Prime Minister. In fact, in the question just a second ago from the Liberal member, she commented on what a great legacy taking selfies was to leave behind. Can members imagine that being one's legacy?

I want to ask the member this. The long-lasting legacy of the current Liberal government will be imposing upon the next generation an unbearable debt load because of the Prime Minister's profligacy in spending. I would ask the member to comment on how our children and grandchildren are going to have to pay for our spending today. This is spending that is for our benefit but that future generations will have to pay.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, I want to thank my hon. colleague from Abbotsford. He knows I look up to him, and think the world of him. We are very fortunate to be in the House. We get to learn from and work with great people from all sides. The hon. member for Abbotsford has an incredible legacy that will live well beyond his time in the House.

He talked about the spending of the government. I do not know about you, Mr. Speaker, but I do not go to the casinos. I think we have done fairly well in our lives, but just going to a bank machine is like going to a slot machine. If I get some cash out, it is like I beat the house.

The Prime Minister has never had to worry about balancing a chequebook. He has never had to worry if he is going to have money in his bank account to make ends meet at the end of the day, or how he is going to clothe and feed his family. His government has spent more money on projects that do not benefit Canadians. The Asian investment bank will do nothing to create infrastructure here in Canada. Why is he spending that money? It is because it is helping his friends.

He has no concept that that money has to be paid back. Our kids, like the pages who are sitting with us, when they get out into the real world, do not understand they already have a huge amount of debt they have to pay off because of the government. It is not starting out on the right foot. It is starting out in debt. That is wrong.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I would like to bring us to the topic of today's debate, which has been completely absent for the last half hour or so. That is Bill C-63, the omnibus budget bill.

This is my first chance to speak to this, so I would like to mention that I read it over the weekend. It is a bill of 275 pages, with 11 different divisions. As much as I am genuinely fond of my friend from Cariboo—Prince George, I was disappointed by his speech, because vacuous rhetoric around the Prime Minister's socks is not as valuable as actually diving in and discussing the bill.

I have read a lot of omnibus budget bills. As for the ones under the previous government, I can genuinely and honestly say that turning page after page of Bill C-38 I moved from anger to grief. I was crying by the time I finished reading it. I am very happy to say that having read Bill C-63, I was nearly very bored. That is a good sign when dealing with a budget bill.

I would like the member to tell me if he likes or does not like the amendments in division 8, part 5, which would allow for flexible work arrangements for employees, or further in that division, the part that would guarantee time off work for families who are victims of family violence.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, the member for Saanich—Gulf Islands is also someone I very much respect in the House, and consider a friend. Usually, she is standing up and saying that was a good speech we did, or we had a good comment.

Our colleague brings up a good point. There are things in the bill that are good, but I would offer this to our hon. colleague across the way. She is a good person. She knows we are here to make sure we are representing and standing up for Canadians at all times.

My 30 minutes was not about the Prime Minister's socks. It was more about how we are more worried about a brand than policy, and how that impacts Canadians. She is a very smart and learned person, far smarter than I am. I apologize, perhaps it was my delivery of my speech, but my message was this. We seem to have gone away from what matters most, and that is Canadians, to what our Prime Minister is wearing. It is more that than what he is bringing to the table, and what he is doing for Canadians, and how far we have fallen. That was the crux of my speech.

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

Mr. Speaker, the Conservatives continue to be out of touch with what Canadians really want to hear. I would suggest to members that, while they focus their criticism and personal attacks, whether it is on the Prime Minister, the Minister of Finance, or the government as a whole, we will continue to remain focused on delivering for Canadians.

When the member talks about things such as “legacy”, I would suggest that the member might want to reflect on many of the positive initiatives of this government, whether it is historic agreements on pensions and the environment; a health care accord in regards to the fine work that the former minister of health has done on that; or tax reform or tax breaks. There is a litany of things that this government has done.

I have many individuals who have given me the distinct impression that this government has done more in two years than the former government did in over 10 years. I would ask the member if he would not, at the very least, acknowledge that there have been many different and positive actions that this government has taken.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

There we go again, Mr. Speaker, the Liberal arrogance.

The member should come out to the communities. Come out to the small rural ridings where the proposed tax plans are targeting the hard-working creators of our communities, the backbone of our economy, and the backbone of our provincial and regional economies. They are attacking them. Eighty percent of Canadians are far worse off under the current government than they were under our government.

In fact, the Liberals talk about all the money that they are spending to make things better. The parliamentary budget officer has even said that infrastructure grants and contribution promises are falling flat. They are not able to get the money out the door. What do the Liberals do? They point the finger at the communities, say that they are not ready, and say it is not them but somebody else.

I am asking colleagues across the way to stand up for Canadians. How do they want to be remembered? What is their legacy going to be? Will it be socks?

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

Mr. Speaker, I rise today to speak on Bill C-63. It is an honour to do so.

Small and medium-sized enterprises, or SMEs, are the backbone of the Canadian economy. They employ 10.5 million Canadians and contribute to roughly 40% of the country's gross domestic product. They are indeed engines of job creation.

The government is committed to making sure that businesses have the resources that they need to invest, innovate, grow, and create jobs. The Business Development Bank of Canada, BDC, is helping Canadian entrepreneurs achieve their full potential by facilitating their access to tailored solutions, including financing and consulting at each stage of their development. BDC services support the start-up and growth of small businesses across Canada.

BDC is mandated to support Canadian entrepreneurship, with a particular focus on SMEs. It does so by offering financing and advisory services. BDC financing provides business loans with flexible financing options, such as principle postponements and pre-authorized working capital, which help to protect the company's cash flow.

Before I go any further, I would like to inform this House that I am honoured to be splitting my time with the member for Parkdale—High Park.

Through its investments in a broad range of services, from venture capital to quasi-equity and securitization, BDC supports innovative and high-growth companies as they expand operations and scale up.

BDC's advisory services, which include a broad range of business support and consulting provided through a network of consultants, help businesses scale up, improve productivity, and export. Through its pan-Canadian reach, BDC serves nearly 49,000 clients, active in all industries nationwide, through a network of 118 business centres located across Canada.

To further expand its reach to entrepreneurs, BDC leverages its support to SMEs through more than 290 partnerships, strategic relationships, and memberships. Among other things, these partnerships allow BDC to improve support for underserved entrepreneurs, including young entrepreneurs, women entrepreneurs, indigenous entrepreneurs, businesses in Canada's north, social entrepreneurs, immigrant entrepreneurs, and rural entrepreneurs.

BDC also extends its reach and visibility to SMEs by organizing the annual BDC small business week, which was successfully held across Canada this year during the week of October 16. The BDC small business week celebrates entrepreneurship at local, provincial, and national events. It attracts close to 10,000 entrepreneurs at hundreds of events held across Canada.

As an instrument of public policy, BDC also responds to the direction from the government on areas with the most priority. For example, recognizing the importance of venture capital to Canada's economic prosperity, the Government of Canada introduced the venture capital action plan, VCAP, in 2013 and directed BDC to act as an agent of the government in managing the VCAP.

BDC also participates in the development and deployment of the accelerated growth service, AGS, which delivers coordinated, client-centric federal support, including financing, advisory services, and export and innovation support from participating federal organizations. As part of its role in the AGS, BDC collaborates with other organizations in the federal family to operationalize its concept, and to offer coordinated access to government services and programs.

The proposed changes in Bill C-63 to the Business Development Bank of Canada Act will allow the BDC to deliver on key initiatives in budget 2017, and thus improve access to capital for innovative SMEs operating in emerging sectors of the Canadian economy.

SMEs will be the Canadian job creators of the future. In particular, BDC will also be making available new financing to clean technology firms, including SMEs, to help them hire new staff, develop innovative products, and support domestic and international sales. Innovation in clean technology will lead to products and services that will have an impact on all sectors of the Canadian economy. Clean tech has the potential to create thousands of well-paying jobs for Canadians.

The legislative change will also allow BDC to administer the venture capital catalyst initiative, VCCI, which will increase the late-stage venture capital available to Canadian entrepreneurs, and help Canadian start-ups grow and succeed. Venture capital is an essential source of financing for innovative, growth-oriented firms, and VCCI will support the continued growth of Canada's innovative companies.

I am very pleased to see that the Government of Canada is making smart and responsible investments that will result in better jobs and opportunities for all Canadians. The amendment to the Business Development Bank of Canada Act will enable the government to make the required investments in BDC to allow it to implement these important initiatives.

As our economy evolves to a more innovative clean tech-oriented economy, it is important that we make investments today that will pay off for the future generations. Equally important, I believe, is Canada's growing trade economy. Canada's ability to export to foreign markets needs to be leveraged. It is the way the economy of the future will grow, and it is the way Canada and Canadians can diversify their customer base in a changing global environment.

My riding of Newmarket—Aurora is home to many SMEs. I have had conversations with a number of them who already access the services of BDC. It is an important tool and lever in the Canadian economy that, in my frank assessment, is underutilized at this point.

Many SMEs are not aware of the services offered by BDC. I believe that changing the Business Development Bank of Canada Act, creating investment, particularly venture capital investment, will be the way for those SMEs to tap into and access federal government support, and also to access venture capital support, both at early age as start-ups and as they mature when they need additional capital to expand their already successful operation.

I hope that all sides of the House will agree that supporting SMEs, supporting innovation, and supporting the creators of jobs today and what will be the creator of jobs in the future is something that we can all get behind. I urge all members to support Bill C-63, particularly those with an affinity and fondness for the proposed changes to the BDC, because these investments will improve the BDC, thereby improving the opportunities for SMEs across Canada.

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, the member opposite was focused on one bank, but I would like to focus on another that is mentioned in this budget implementation bill.

The Liberals have made a choice to now make an enormous investment in the Asian Infrastructure Investment Bank. This is a government that ran on a platform that it would make substantive investments in infrastructure development here in Canada. Whether it be Collingwood or Wasaga Beach, my home town of Creemore, or otherwise, that infrastructure is desperately needed to make sure that small businesses are successful and, quite frankly, to make sure moms can just get their kids to school.

The fact of the matter is the Liberal government has made a choice. It has chosen to invest close to half a billion dollars in a different place, in China. The last time I checked, China was not a province of Canada nor Canada a province of China.

Why is this investment in infrastructure being made overseas, not here at home where we really need it?