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

[Tom Lukiwski, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, I should first announce to all members that I will be concentrating my remarks today more on the budget tabled on March 22 of this year than on Bill C-63, which I am sure all members understand is the BIA, or the budget implementation act. That act would, of course, enact certain provisions contained in the budget. Since they both flow together, all my remarks will be primarily concentrating on the budget itself.

First and foremost, in my opinion, at least, budget 2017 was a terrible budget. In fact, I do not think it would be unfair to say that it was a socialist budget. I use that term, because I am reminded of the famous words of former British prime minister Margaret Thatcher, who once opined that the reason socialism will never work is that eventually socialists “run out of other people's money.” Unfortunately, the Liberal government has not figured that last part out. I believe it thinks money grows on trees, because it is spending it like drunken sailors, thinking there is a never-ending supply of currency. We all know that this is simply not true, but perhaps that is a debate for another day.

What I will attempt to do today is talk about why I believe this socialist budget is so bad. This budget tabled March 22 is basically a combination of two things: it is a budget of broken promises, and it is a budget of higher taxes. I say higher taxes because we know, based on a recent study by the Fraser Institute, that fully 81% of Canadians considered to be in the middle class will now be paying $840 a year more in taxes than they were before. This comes from a government that is proud to stand in this House day after day to say how it has lowered taxes for the middle class. In fact, it has not. It has done just the opposite.

It is also a budget filled with broken promises. As one of my colleagues quite correctly pointed out just a few moments ago, when the Liberal government was running for election in 2015, it promised to run modest deficits of no more than $10 billion a year for the first four years, and then by election year, 2019, it would return to balance. Has it done that? Not at all.

In fact, what is truly alarming is the fact that when asked the question, both the Prime Minister and the finance minister said that they did not know when the government would return to a balanced budget. In my opinion, the reason they did not know is that they could not answer the question. They have absolutely no idea how to get back to balance, and if they do, when that would take place.

If the chief executive officer and the chief financial officer of any corporation said to their board of directors that they did not know when they would be perhaps returning to a profitable situation, I would suggest that both those officers would not be long in their jobs. I think that is what is going to happen in this case. The Government of Canada is, in effect, a corporation, a business, albeit a very large business. If the chief executive officer, that being the Prime Minister, and the chief financial officer, that being the finance minister, do not know when they could return to balance, I believe they should be fired, and I think they will be fired come 2019. It is not just the fact that they made promises they cannot keep. The truly alarming situation we have in front of us is that they simply do not know the answer to a very simple question: when will they return to balance? They cannot even give an approximation of when they will return to balance, and that is truly frightening.

Canadians expect more of their government. Canadians expect more of any government. However, for a government to freely admit, and to take some pride in admitting, that it will be running deficits that could go on in perpetuity, and that it does not know how to get back to balance, there is no pride in that, only shame, and the Canadian public is finally starting to figure that out.

I would suggest to my friends opposite, if they truly care about the Canadian taxpayer, as they so often repeat in this place, they would take immediate steps to try to find out how to return to balance. Second, they would implement provisions within their own spending regime to get back to balance. It is not that they have a revenue problem. They have a spending problem.

Some would argue there is an easy way to get back to balance, and that is to raise taxes. Quite frankly, I think my friends opposite are taking that to heart because they seem to be raising taxes on just about everything. That is not the way to run a government.

Conservatives believe in lower taxes and balanced budgets. That is a foreign concept to many on the opposite side of the aisle, I am sure, but it has proven to be effective in years past. Also, if the government truly wants to return to balance, it should start listening to some of its former colleagues. Prime Minister Stephen Harper, for example, returned to balanced budgets after a few years of serious deficits, caused by the worldwide global recession. I suggest to my friends opposite that they take a page out of that playbook and look at what they need to do to return to balance. It would certainly not be by spending, like they are today. It is about fiscal restraint, a foreign concept to many of the members opposite.

If the finance minister wants to prove his competence to the Canadian public, he should start looking in the mirror whenever he delivers an economic forecast and economic update, because we know now, if we did not before, that the finance minister, encouraged by his Prime Minister, is in the middle of a very serious conflict of interest.

I can assure you, Mr. Speaker, that every single person in the country, from the time they first achieve cognitive thought, knows the difference between right and wrong, and what the finance minister has done by attempting to hide $20 million in shares in a numbered company in Alberta is simply wrong. The Prime Minister and the finance minister have a choice to do what is right, and do what is right for all Canadians. I sincerely hope they do. The right course of action would be for the finance minister to step down and the Prime Minister to accept his resignation.

The House resumed 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.

[The Assistant Deputy Speaker, Anthony Rota]

Pursuant to order made on Wednesday, October 18, I wish to inform the House that, because of the statements made earlier today, government orders will be extended by 27 minutes.

Resuming debate, the hon. Minister of Employment.

[Patty Hajdu, Liberal, Minister of Employment]

Mr. Speaker, it is a great pleasure to rise in this place and talk about the budget implementation act.

Before I talk about that bill, I would like to talk about the measures that the government has taken to date to give all Canadians, particularly the middle class and those working hard to join it, the opportunities they need to succeed.

To start, we raised taxes on the 1%, so that we could lower them for the middle class. We then brought in the new Canada child benefit, which has lifted hundreds of thousands of children out of poverty. As a result of our CCB, nine out of 10 Canadian families are getting more in benefits than they did under the previous system. Compared to the previous system of child benefits, the CCB is more generous, and it better reaches those who need it the most.

Recently, as announced in the fall economic statement, we are helping those who need it most by enhancing the Canada child benefit, indexing it to the rising cost of living. We are also strengthening the Canada pension plan, increasing the benefit for workers by as much as 50%. This will not only help those who are retired now have more money in their pockets, but it will also help future retirees save enough for a dignified retirement.

On top of that, our government is doing more to help those working hard to join the middle class, by enhancing the working income tax benefit by an additional $500 million per year starting in 2019. We know that many people work long hours, sometimes in more than one job, to advance their careers and to support themselves and their families. By letting low-income workers take home more money, the working income tax benefit offers real help to 1.5 million Canadians.

The steps we have taken to date are having a positive impact on our economy, and for Canadians. Optimism is on the rise, and for good reason. Job creation is strong, with over half a million new jobs created since we took office, and the unemployment rate is at its lowest level since 2008. Youth unemployment is at a historic low, and Canada is the fastest growing economy in the G7 by a wide margin, growing at an average rate of 3.7% over the last year, which is the fastest pace of growth since early 2006.

Growth is forecast to be 3.1% in 2017, significantly above expectations at the beginning of the year. The fiscal outlook has improved by more than $6.5 billion annually, on average, from what was projected in budget 2017 last March. That is why we are here today, to consider and discuss the important measures contained in Bill C-63.

I will briefly describe a few of the key elements.

This budget implementation act supports the middle class and those working hard to join it by protecting the rights of federally regulated workers when they request flexible work arrangements from their employers.

Canadians increasingly face pressure to balance work and family responsibilities. We all know a single parent struggling to find balance or someone taking care of an aging parent, or even someone who is supporting a spouse through chemotherapy. Our government was elected on a commitment to give workers and federally regulated workplaces the right to request flexible work arrangements, and we are delivering on that commitment. Things like flexible start and finish times or the ability to work from home will benefit both employers and employees, through increased productivity, lower absenteeism, and greater retention.

Budget 2017 also contained a gender-based analysis, ensuring that the implications of budgetary measures on men and women are considered thoroughly. Our government believes that having meaningful and transparent discussions around gender and other intersecting identities will help us better understand the challenges that Canadians face, and help us make informed decisions to advance the goals of gender equality, fairness, and stronger workforce participation. We know that our prosperity relies on the participation of all Canadians, so our efforts are focused on ensuring our growth as a country leaves no one behind.

Our government also recognizes that young Canadians today face challenges when it comes to finding and maintaining good, well-paying jobs. Many young Canadians tell us that not being able to get meaningful work experience is a significant barrier to getting a good job. While internships can give young Canadians the hands-on work experience they need to make that successful transition to the workplace, some internships, in particular those that are unpaid, can be unfair and exploitative.

The budget implementation act proposes to eliminate unpaid internships in federally regulated sectors where the internships are not part of a formal education program. These changes would also ensure that unpaid interns who are part of an educational program are entitled to labour standard protections, such as maximum hours of work, weekly days of rest, and general holidays. It is the right thing to do for our young people trying to gain the necessary work experience to enter the labour force.

Small businesses are a key driver of our economy and a cornerstone of communities across the country. As our plan works to grow the economy, small businesses see the benefits of that growth with lower taxes. Our government committed to reducing the small business tax rate to 9% from 11%, effective January 1, 2019, while ensuring that Canadian-controlled private corporation status is not used to reduce personal income tax obligations for high-income earners rather than supporting small businesses. This means up to $7,500 in federal corporate tax savings per year that will help entrepreneurs and innovators do what they do best.

Our government's plan to grow the economy is indeed working. Because of our strong economic growth, we continue to invest in the middle class and those working hard to join it. Whether it is ensuring that more families can pay for the high cost of raising a family, ensuring more low-income workers can make ends meet, or implementing flexible work arrangements, smart investments like these will ensure that more Canadians have a fair chance of success.

[Sheri Benson, NDP, Saskatoon West, SK]

Mr. Speaker, I applaud the government for moving forward on a number of changes to the Canada Labour Code.

I would like to hear the minister's comments on some of the unpaid leave provisions, especially those for victims of domestic violence. I brought to the House's attention that unpaid leave for victims of domestic abuse may prevent many women from accessing that unpaid leave because of the dynamics or things that happen within relationships in which victims are often controlled economically by their partners. Being able to access unpaid leave may be a barrier for them, because coming home with a paycheque that is less than it is supposed to be may cause the abuser to take it out on the victim.

I am asking the government to be open to making this paid leave, so it is accessible to all victims of domestic violence.

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Mr. Speaker, the member obviously has compassion for women living in violent situations. The leave that is included in this act is intended to address just that. We know that oftentimes one of the prohibiting factors for a women fleeing domestic violence is whether she will be able to take leave and return to the job as she sorts out the details of her life that have to be sorted out when leaving a partner, especially in very urgent situations.

I am proud that this leave is thoughtfully included in the types of leave available to all people experiencing domestic violence, but, generally speaking, women. It is an incredibly important acknowledgement that this government understands that women need that time to settle their affairs, so they can move forward into either safe spaces or new circumstances and have their jobs protected while arranging their affairs.

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, I would like to ask the minister this specifically. I know how important the student summer jobs program is to the students and young people in my riding and how its near doubling in funding has helped increase the number of jobs and, in some cases, given these students their first jobs. Could the minister comment on what she is hearing about that program right across the country?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Mr. Speaker, my colleague is absolutely right. Part of my summer was spent meeting with students all across the country in the various communities I had an opportunity to visit to talk to them about how that experience was transforming their lives, not just in terms of their ability to earn a bit of money to put toward either school or their other expenses, but also often to gain that tangible first-time job experience. In one community I visited, the executive director of a not-for-profit organization had started with that organization as a Canada summer jobs' student. Can members imagine that 25 years later she was actually running the program?

You are absolutely right. Our government committed to doubling the Canada summer jobs funding, and that is in fact what we have done. This investment has enabled MPs all across this House to ensure that students in their ridings are getting that formative job experience. As well, students all across the country are receiving a variety of experience from the really great organizations that are contributing to the wellness and social fabric of their community, or from entrepreneurs who are running small businesses.

[The Assistant Deputy Speaker, Anthony Rota]

I just want to clarify that I am sure the hon. minister did not mean I was absolutely right; she meant that the hon. member for Avalon was absolutely right. I just want to remind hon. members to speak through the Chair.

We have time for a very quick question. The hon. member for Vancouver Kingsway.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, people have told me recently that under federal jurisdiction in the non-union sector, if employees are sick they do not get any pay. There is no requirement for paid sick leave under the Canada Labour Code. Of course, this leads to people coming to work sick, or they are being punished for being sick because they lose a day's wages. Does the hon. minister have any thoughts on amending the Canada Labour Code to require employers to give three or four paid sick leave days a year to the non-unionized workers of this country?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Mr. Speaker, my hon. colleague raises an important part of my mandate. Of course, it is on the mind of the Prime Minister that we need to make sure that those who are most vulnerable, often those who are young or working at low wages, have the best possible scenario in their workplaces. That is why we have just started consultations looking at the Canada Labour Code and how we can improve it to protect, most poignantly, those very vulnerable workers. I look forward to working with him regarding those consultations and hearing the member's thoughts on what needs to be included in the revision. The Canada Labour Code was last thoughtfully looked at in its entirety in the 1960s, and I am very much looking forward to that work.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am pleased to rise in the House today to speak to Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures.

When it comes to budgets, it is extremely important that we do everything in our power to meet our fellow citizens' sustainability requirements. Sustainable development has three pillars. Yes, one is economic, but there are also the social and environmental pillars. It is through the lens of these three pillars that I will analyze the bill before me.

First, I must point out one troubling fact. Yesterday, we learned from the paradise papers that fundraisers who are very close to the Prime Minister were implicated in this tax haven scheme. However, Bill C-63 contains no concrete measures to fight tax evasion or tax avoidance. It leaves the CEO stock-option tax loopholes untouched and does not demand the co-operation of major corporations.

It is a little ironic considering that in question period today, we in the NDP asked dozens of questions, trying to find out what the Liberal government was going to do to stop billions of dollars from going to tax havens. We were told that the government is going to continue doing the same thing, so there is nothing new. The Liberals are not going to change any laws to stop this tax evasion and put an end to this scam, which is currently legal. Indeed, they are allowing many millionaires and billionaires to put money in tax havens and avoid paying their share of taxes. As a result, Canadians are seeing a reduction in services as well as an increasing fiscal burden, all because some people refuse to contribute what they should. If we had more money, we could do much more than we currently are to complete our shift towards green energy.

In addition, before the budget was presented, we wrote to the Minister of Finance and asked him to include certain provisions to make our society fairer and greener. Unfortunately, none of those provisions were included. I will come back to that in a moment.

Bill C-63 does contain some positive measures. For example, it would change the Canada Labour Code to allow federally regulated employees to request greater flexibility from their employers, and it would also expand the tax incentives for geothermal projects. However, these incentives pale in comparison to the changes that are needed.

COP23, the climate change conference, starts today in Bonn. In 2015, when the Canadian government went to Paris, the Prime Minister said, “Canada is back”, but unfortunately, Canada was back with Stephen Harper's old targets and almost the same measures. There was very little progress.

I want to quote an article from Le Devoir, published on October 31, entitled “UN on Climate: 'Catastrophic' gap between commitments and actions”.

On Tuesday, six days before COP23, the UN's environment chief warned that there is a 'catastrophic' gap between the national greenhouse gas reduction commitments and the reductions that would be needed to keep global warming below 2°C.

In short, there have been some lofty promises, but countries are not taking the necessary measures to follow through on them.

In an economic update, and with the climate change conference opening today, we would have expected a number of measures to support the shift to clean energy. Unfortunately, there is virtually nothing there. We made some recommendations, as I mentioned, in a letter to the Minister of Finance.

The Lancet Commission on pollution and health recently published a very important report. It is an extraordinarily well researched scientific report written by health experts.

I would like to read their conclusions, which are very important. Clearly, when it comes to sustainable development, issues related to society, the economy, and the environment all go hand in hand. We are zeroing in on a huge and serious problem. Indeed, dangerous climate change is having serious consequences on people's health. We are currently talking about pollution, but this is also about climate change. I would like to quote the summary of the report from the Lancet Commission on pollution and health:

Pollution is the largest environmental cause of disease and premature death in the world today. Diseases caused by pollution were responsible for an estimated 9 million premature deaths in 2015—16% of all deaths worldwide—three times more deaths than from AIDS, tuberculosis, and malaria combined and 15 times more than from all wars and other forms of violence. In the most severely affected countries, pollution-related disease is responsible for more than one death in four.

Why is fighting climate change and pollution in Canada so important?

Unfortunately, Canada's efforts have been quite weak. We sent a number of recommendations, including, for example, introducing a massive energy efficiency program. A group of people recently came to the Hill to talk to us about the importance of fighting climate change, and one way to do so is by investing in energy efficiency.

Energy efficiency creates jobs because people are needed to do the renovations or other related work. It also improves the living conditions of people living in poorly heated homes by reducing heating or air conditioning costs. Finally, the negative repercussions of pollution and climate change are also reduced. There would be benefits everywhere. The Liberal government has done nothing.

When discussing climate change and the environment, it is also very important to consider all of the recommendations by the Green Budget Coalition regarding the 2018 budget. All of those recommendations should have been adopted by the current government. One of them is very important: international climate change financing.

Clearly, we suffer, but let us think about the countries that suffer the most, the poorest countries. Those countries must be supported so they can adapt to climate change. We are the main emitters, but they are the main victims.

For example, the federal government could increase its financial participation through a tax on bunker fuels used in international aviation and maritime transportation. Aviation and maritime transportation do not currently contribute to the fight against climate change. Taxing the bunker fuels they use would be a way of redistributing money and assisting in international climate financing. There are a lot of other solutions, but my speaking time is ending. I would have liked to have the time to talk about the circular economy that could also be put forward. Those are examples of what is missing in Bill C-63, in this economic review.

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, the hon. member spoke about tax avoidance, economic updates and what the government was doing about tax cheaters. Could he give the House an update about the so-called inappropriate spending of over $2.7 million of taxpayer money that was used on satellite offices ? Has any of that money been paid back or will all of it be paid back, including interest?

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I would indeed like to talk about the fight against tax evasion and tax avoidance, as Canadians really want to know what is happening in that regard.

After the Panama Papers, now we see the Paradise Papers, and they include the name of the Prime Minister of Canada’s own chief fundraiser.

So, when the Liberals are asked if they will truly fight tax evasion and why they are not taking action, we understand why. It is because they are too close to those who abuse the system. We need tax reforms to correct this as soon as possible.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, what is not in this budget update bill is the most troubling. In the budget the Liberals tabled, which I know by heart, on pages 149 to 150 were a lot of promises to support the conversion toward a cleaner energy Canada, but the vast majority of the dollars would not come until after the next election.

The Auditor General has been calling on the government to move forward on its commitment to deal with, reduce, and phase out the perverse subsidies for the fossil fuel industry. The grants and subsidies amount to more than $6 billion a year. Could the member speak to how disappointing that is and how little the government is doing to deliver on its commitments?