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

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

I could not agree more, Mr. Speaker, and would like to thank my colleague for his fine question. Indeed, the Conservatives often talk about how they only went into deficit during the recession, and yet, the recession happened in 2008-09, and the largest deficit in the history of Canada was recorded in 2010. It had reached $62.5 billion. The Liberals are not even close to that number yet. We have decided to invest in infrastructure because that is what every municipality has asked us to do. As I said earlier, I have yet to meet a mayor who has asked us to stop investing in infrastructure and to stop offering support. We have not gotten that request from a single mayor.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, hon. colleagues, dear Canadians who are watching us, I just want to say, “wow”. One hundred and fifty years ago, on November 6, 1867, the first Canadian parliamentarians from Upper Canada and Lower Canada, as well as the colonies of New Brunswick, Prince Edward Island, and Nova Scotia, gathered here in a federal Parliament for the first time. It was surely to have a debate, but I imagine that first day must have been rather solemn. I do not know if they started any work that first day. I imagine they wanted to get started right away on working hard to build a federation from coast to coast. It must have been extraordinary to take part in achieving that dream.

I wanted to take a minute or two to say that I agree with what my leader said about his vision of the country, and his take on the parliamentary system and the role of parliamentarians. I was impressed by his speech.

Certainly, I want to thank the Prime Minister for taking the time to deliver a speech on this solemn day. I also found it extraordinary that four former prime ministers were here today. I appreciated the speech of the House leader of the New Democratic Party and that of the Bloc Québécois member who took the time to say a few words despite his opposition to our great federation.

I am more mature now as I begin my third year as MP than I was at the very beginning. There are three things I consider important and that I would like to bring back to the Canadian political agenda. If I come to Ottawa every week, it is not to talk about rights but about duty. It is not to talk about about pride, but about honour. More importantly, it is not to talk about entitlements but about each individual's responsibility and their role in community development.

Guided by these three beacons that shape my approach to parliamentarism and Canadian politics, I come here each week in an attempt to improve things in this country, even only a little bit.

I would like nothing more than to be able to speak at length in this House about the Constitution of Canada, the role of the provinces in our constitutional order and the dialogue that Philippe Couillard would like to open about Quebec's place in Canada.

I would like to talk about our founding peoples, linguistic rights, creating new provinces to pursue Canada's territorial and economic expansion, as well as international relations and Canada's role in the 21st century in light of all the world's emerging powers on all continents who are challenging us in ever more extreme ways. I would also like us to discuss our vision of federalism for the hundred years to come.

However, I cannot talk about that today, as the government is busy introducing a bill to confirm and put in place the budgetary measures which were announced in March, as is the custom in this great Parliament.

We returned to the House two months ago, but we have not touched on the constitutional debates and the international relations debates I talked about, debates I would really like us to have here. This all started in July, when the government put forward its tax reforms, which amounted to tax hikes for small and medium-sized businesses. It really botched those reforms. Just two weeks ago, the Minister of Finance presented his economic update. He tried to convince us that his tax reforms are working well and that he merely adjusted a few elements of it in response to what he heard from Canadians.

Simply put, the tax reform is a thing of the past. It is moot. The government backtracked thanks to some very good work by the official opposition of Canada and our leader, the member for Regina—Qu'Appelle. Every sitting day from September to November, our leader proved to Canadians that the tax reform benefited the rich, those who want to avoid paying taxes, and, it bears mentioning, even the Minister of Finance, as we all know. The whole thing is absolutely unbelievable.

The reform benefits the rich rather than ordinary Canadians—the workers, the mechanics, the labourers, the farmers. The Liberal economic update is merely a repeat of the same measures and broken promises we have seen from the beginning of their mandate in 2015. The only thing that is new is that they are going to lower the overall tax rate for small and medium-sized business.

Once again, that was nothing really new, since the Liberals had announced it during the campaign. They first decided not to keep that promise, but faced with the political uproar created by their ethical scandal, they thought they might present a gift to shift the media's focus. It did not work.

Then, at the end of September, the scandal linked to the finance minister himself, personally, was uncovered. This is not a debate about whether this is a good policy, nor is it a debate on the tax measures he wants to bring in. Indeed, thanks to research done by our party and by some investigative journalists, it became clear that the Minister of Finance was in a total conflict of interest, both personally and with respect to his significant financial assets. He made his fortune by working very hard, good for him.

According to the Liberal members, Morneau Shepell, and the government, everyone believed that the Minister of Finance had taken his fortune, including the $20 million he owned in Morneau Shepell shares, and placed it in a blind trust back in 2015. That was not the case. For the past month, I have been expecting him to stand up in the House and make a formal apology. In the end, he made a donation to charity, which is nice, but he has yet to apologize to Canadians.

We have been talking about this issue for a month and a half. There was also the property in France, which he hid from the Conflict of Interest and Ethics Commissioner, as well as Bill C-27, which directly benefits his family business, Morneau Shepell. The proof is right in front of us: the Minister of Finance is in a direct conflict of interest. He has yet to apologize to Canadians.

Yesterday, it emerged that the Liberal Party of Canada's own chief fundraiser is implicated in tax avoidance schemes involving tropical tax havens south of here. The news has made this government even more of a laughingstock.

Today, on this 150th anniversary of the first parliamentary sitting of November 6, 1867, four former prime ministers, unfortunately, had to witness a question period that I found to be shameful and that did not focus on the issues that we should be discussing. As I said, we should be discussing the Canadian federation, the coming century, and how to always strive to make Canada the best country in the world.

Instead, we are talking about this government's hypocrisy. We are talking about the things it does that create conflicts of interest. In short, we are talking about its real intentions, which are to help interest groups, not Canadians. These interest groups, whatever their cause, may be chartist groups that go through the Supreme Court to impose new policies on our country rather than coming and fighting in the House, economic interest groups, like the finance minister and his Bill C-27, or groups that fight for the government's own party. What is worse, the Liberals are shamelessly claiming that theirs is a feminist budget. I have never heard anything so ridiculous in my life. Well, perhaps that is a bit of an exaggeration, but even so. This should not be a feminist budget. It should be a Canadian budget for all Canadians.

Since when does a government have the nerve to rise in the House and claim that a budget has been put in place for a particular group, to cater to a certain ideology or stripe, or individual interests? How does this government have the nerve to talk about a feminist budget? What would happen if it was a masculinist budget? It is completely ridiculous.

What have the Liberals done in the past two years? They have eliminated tax credit after tax credit, to the point where, according the Fraser Institute, a typical Canadian family with two children is now paying $840 more in taxes a year.

It is unprecedented in Canada for a government to run a deficit that is double what was promised with no plan to balance the budget. That is the Liberal government.

Rather than celebrating the Constitution on this 150th anniversary, we are celebrating the Liberals' hypocrisy.

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

Mr. Speaker, the member referred to the issue focus. Let there be no doubt. We have a Prime Minister who has been focused from day one. When he was first elected as leader of the Liberal Party of Canada, he established that his priority was Canada's middle class and those working hard to be a part of it. Then we can look at the first piece of legislation, the first budget, the second budget, and the many other things our government has done. The common thread is how we can enhance Canada's middle class. That is about as focused as I have ever seen, and I have been a parliamentarian for 25 years. We have a Prime Minister who is focused on Canada's middle class.

Why does the Conservative Party, which continues to be out of touch with Canadians, not recognize that instead of focusing its attention on being critical of personal issues, it should be focusing on listening to what Canadians want? They want a healthier economy. They want a government that is sensitive to the needs of Canadians in all regions. Our government is delivering that. Why does the Conservative Party continue to be out of touch with what Canadians want?

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, with all due humility, from day one, and we have seen it more than ever in the last three months, the government has been focused on enhancing the privilege of the Liberal elite. It has focused on enhancing the privilege of the Liberal bagmen. It is trying to work for interest groups. That is why the budget is called the feminist budget, when it should be called the Canadian budget.

On the contrary, from 2006 to 2015, our focus was to govern the country in all aspects, not just for one class but for all Canadians. That is why we would never have called it a feminist budget and only talked about the middle class. We were always talking about Canadians. Every day our leader, the member for Regina—Qu'Appelle, stands in the House of Commons and talks about the mechanics, the farmers, the tractor repairmen, the person who does haircuts, the pizza man, those who work on the ground, the people who send taxes every day to the government, to the House of Commons, so we can govern the country. The focus should be to govern the country.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, my hon. colleague talked about the budget, how it created a distraction for Canadians, and how it was very confounding. In fact, it is not focused, as my colleague across the way mentioned. It is a distraction from very severe tax loopholes and evasions, and some judgment calls.

My hon. friend mentioned that this was a feminist budget. However, Canadian women today are still making 74¢ to the dollar compared to men. There has been inaction on pay equity. It has been very superficial.

Is my friend concerned at all with some of the issues around the Asian infrastructure bank? In budget 2017, it was to be $256 million over five years. Now, under Bill C-63, that amount would increase to $480 million. Is he concerned about that kind of distraction as well?

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, I also have read that we have no assurance there will be any return for the people in Canada on the money we invest in Asian Infrastructure Bank. It is like a blind trust in the Chinese financial world. It is probably to get a deal on free commerce with China, which I kind of understand, but the Liberals should try to have better tactics to come to that end.

It is distraction after distraction. Two weeks ago, when we spoke about the finance minister, they came out with Bill C-24 to change the titles from ministers of state to ministers. It is complete nonsense. It has been like that for two years.

[Mike Bossio, Liberal, Hastings—Lennox and Addington, ON]

Mr. Speaker, it is a pleasure to rise to speak today again about our budget. I have been talking with constituents in my riding of Hastings—Lennox and Addington about a few of the highlights from our fall fiscal update and it has been going over really well.

I hear all the time about how important the Canada child benefit has been for helping families. To take a snapshot, in the month of July of this year there were a total of 8,710 tax-free payments made in my riding, which benefited 15,860 children. The average payment was $610 for a total of over $5.3 million. This happens every month and it has been doing a lot of good by injecting money into our local economy.

I was impressed to hear the announcement that we will be expanding the tax-free Canada child benefit to keep pace with the increasing cost of living two years ahead of schedule. We can do that because our economic plan is working. The economy is booming, with over 500,000 jobs having been created since we came to office, most of them full time. I will get back to that.

I was reminded recently that it was close to this time two years ago that I was on the campaign trail in the town of Stirling in my riding. I was going door to door and came up to a playground that had several young mothers there with their children. I stopped to say hello and of course we talked about what our party was proposing to do to help families. The Canada child benefit was a huge hit and the reason is that low and middle-income families have needed extra help.

We promised to help families who needed it the most and we have kept that promise. The tax-free Canada child benefit has lifted over 300,000 kids out of poverty.

In a riding like mine with higher than average child poverty rates, this has had a huge impact. It has put more money into the pockets of those who need it the most. They have been able to spend it to put food on the table and clothes on their kids' backs, and pay for books, sports, arts programs, and broadband Internet.

This is so important since the data shows that with the rising cost of living, a family of four in the western part of my riding had to pay almost $1,400 more for groceries in 2016 than it did five years earlier.

The Hastings-Prince Edward poverty round table and Hastings-Prince Edward Public Health have rightly pointed out that income is one of the best predictors of health. We know that when money is tight, healthy food is one of the first things to be cut in order to pay rent and other bills. In order to save money, people may skip meals, eat fewer vegetables and fruit, drink less milk, and fill up on high-calorie, low-nutrient foods because those foods are cheaper.

The result of this unhealthy diet is an increased risk of chronic disease and poor growth and development in children. This affects everyone. In comparison to food-secure households, annual health care costs are 23% higher in households with marginal food insecurity and 121% higher in households with severe food insecurity in Ontario.

The Canada child benefit is tax-free money upfront so families can use it whatever way they want for their kids. For some that is as fundamental as putting food on the table and clothing on their kids' backs. For families in a stronger position, that can still mean help for sports or arts programs, or both. The point is, since it is not a tax credit that tends to only help families who already can afford to spend money up front, we are able to help even more families who need it most.

In the eastern part of my riding, the Food Policy Council for Kingston, Frontenac and Lennox & Addington has pointed out that 24.6% of all families in the area are single parent families, with 80% of these being female led.

Given that there is still an unacceptable pay gap where women in Canada are earning only 87¢ to every $1 earned by men, these mothers can use help. In the cases where it is the dads or grandparents, they are getting help as well.

Living under the low income cut-off after-tax group is 15.4% of the population of the Lennox and Addington area, and 25% of youth between the ages of 15-24 live under the low-income thresholds.

There is a clear need for help in my riding, and so we are helping to lift kids out of poverty.

Of all the things that our government has done, the Canada child benefit is the one that I am the most proud of. Even if it were for this measure alone, I hope that all members in the House will be supporting this fiscal update, but that is not all, there is more good news.

Combatting poverty and giving people the tools to find work is important to constituents in my riding. The Hastings-Prince Edward poverty round table has put together an employment and security working group to work on this issue. Our government will help. We know that individuals in families who are working hard to join the middle class should not have to struggle each month just to make ends meet.

We are proposing to strengthen the working income tax benefit. This is a refundable tax credit that puts more money in the pockets of low-income workers and gives people a little extra help as they transition to work. By letting low-income workers take home more money while they work, the working income tax benefit encourages more people to join the workforce and offers real help to nearly 1.5 million Canadians who are working hard to join the middle class.

We are investing an additional $500 million in the program every year starting in 2019. We will be working closely with the provinces and territories to find the best ways to expand this program and giving an update in our next budget. This is being well received. The Canadian Labour Congress has pointed that for the second year in a row the feds are taking steps to improve lives of low-income Canadians with the working income tax benefit. The National Housing Collaborative also pointed out that extra help for the working poor is welcome news in the fall economic statement.

Finally, I would like to return to how we are doing this. Our government's economic plan is working. We are putting money in the pockets of those who need it the most and working to rebalance so many inequities that exist in our society. We have improved the guaranteed income supplement for low-income seniors and strengthened the CPP. We cut taxes on the middle class and raised them on the wealthiest %1. We are investing in the infrastructure programs, innovation, and green technology, which is making our economy more resilient and creating the jobs of the future. We are also stimulating the economy through the Canada child benefit.

As a result, we are seeing Canada have the fastest economic growth in a decade and the best in the G7. That is excellent news for jobs with over 500,000 created since we came to office, and most of them full-time, including 35,000 created in the last month and 17,500 of those created under youth employment which is very positive and once again, something that is so important within our rural communities to try to create as much employment as we possibly can.

That is a plan that is worth supporting. Our infrastructure investments are really making a difference to increase the productivity of our businesses. We need to be able to make investments that increase productivity. We need to make investments that will decrease the inequalities that exist within our society. We need to increase investments into climate infrastructure, innovation, and resiliency so that we create an economy that is going to benefit all Canadians.

In the redistribution of that wealth through the Canada child benefit, through the working income tax benefit, through the increase to the guaranteed income supplement, we rebalance the distribution of wealth within our society that we have been talking about for over a generation that has gone too far in one direction. We need to balance the economy so that we can grow our middle class because when the middle class does well, then we all do well as Canadians, especially in our local economies.

The great thing about the Canada child benefit is that every cent of that money is spent in our local economies. If we talk about building rural sustainability, that is how we go about building sustainability in rural communities. Increases in the guaranteed income supplement, increases in the CPP, these are all things that are going to put money in the pockets of those who are going to spend it and that is great for our economy, great for creating jobs, and great for rural sustainability.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I want to thank my colleague for his comments outlining all of the money the Liberals are spending. It is spend, spend, spend, but what he failed to say is that the spending is resulting in an $8-billion increase in interest per year over the next four years. It will go from $24 billion a year in interest payments to $33 billion a year by 2021. That does not bode well for the next generation. My children and grandchildren are going to be forced to repay that debt.

The other thing my colleague commented on is investing in infrastructure. On this side of the House we are all for spending on infrastructure. In fact, we did a great job of that, but the current government is investing in infrastructure in Asia, no less. How can the member say that he is supporting the middle class when he is actually taxing the middle class? My children and grandchildren will be paying for infrastructure in Asia when in my riding there are bridges that need to be replaced, roads that need to be resurfaced, and water treatment facilities that need to be upgraded. There is light rail transit that is being built that could be extended farther on into Cambridge if it were not for the spending, spending, spending in Asia and other places that is not helping Canada at all.

[Mike Bossio, Liberal, Hastings—Lennox and Addington, ON]

Mr. Speaker, investing in infrastructure is a no-brainer. We need to improve our economy in every area. We want to increase the amount of trade that exists within our world. We do not want to rely on one single market. An avenue to get to that trade is to invest in them and they will invest in us. It balances out, in the end.

What is most important, the member is absolutely correct, is that we need to invest in and build local infrastructure so that our companies can be competitive on the world stage. However, it goes beyond roads and bridges, which are very important. I come from a rural riding and, believe me, I know how important roads and bridges are. It is also investing in innovation and the jobs of the future. It is not just a one-size-fits-all, that we do one thing in one area and it will benefit everyone. We need to take a multipronged approach, and that is what this government has done. It has focused not just on infrastructure but on the redistribution of wealth, building up the middle class, innovation for future growth, and jobs for our youth, the next generation, and our kids' generation.

As far as the amount of money we are spending in those areas, let us face it, we have made the investments and now there is 4.5% growth, the highest growth in the G7. We have the lowest debt-to-GDP ratio in the G7. Therefore, our plan is working, and we will continue to work on that plan.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I am really happy the hon. member talked about poverty, because whenever I meet with food banks or community groups, month after month, year after year, food bank use goes up, sadly. It is not just seniors but people who are working and students. Every year, it goes up. I was really hoping to see some kind of solution or proposals in this budget to help fight poverty. The agriculture committee did consultations on the food strategy, but to deal with food insecurity, we need to make sure that people are making enough money to buy good, healthy food. I was wondering if the member could comment on basic income and raising the minimum wage.

He also brought up pay inequity, which he said is unacceptable. I am wondering what kind of pressure he is putting on his government to make sure that women are getting paid for equal work.

[Mike Bossio, Liberal, Hastings—Lennox and Addington, ON]

Mr. Speaker, the member and I are on the same page completely. I could not agree more that pay equity is very important. It is important to our government, and we are going to take measures to move in that direction. However, it is an evolution, not a revolution. There are measures we put in place. Just tying the Canada child benefit to the cost of living, I am sure the member would agree, is another great step in trying to decrease the level of inequity and the level of food insecurity around poverty that exist. There is so much more that needs to be done, I could not agree more. We are on the path to get that done, but we need to do it in a responsible and evolving way. The approach that we are taking as a government tries to balance those two key issues that we need to be concerned with. Like I said, I totally agree that we need to do more work in these areas.

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

Mr. Speaker, it is always a pleasure and privilege to be able to rise to speak inside in this beautiful chamber.

Today, being November 6, is a very special day worth noting. We had four prime ministers sitting in the gallery. We had speeches by the Prime Minister, the Leader of the Opposition, the NDP representative, and the leader of the Green Party. They stood and recognized just how fortunate we parliamentarians are to be here, representing the interests and the will of Canadians in every region of this beautiful nation.

I want to start my comments by reflecting on how much I truly and genuinely appreciate representing the residents of Winnipeg North and the confidence they have expressed in me over the years. Having said that, let me get into the debate that is currently under way.

I have had an opportunity to ask a number of questions today and on a previous day when we listened to many opposition members speak about the budget. I want to reflect on some of those things I have been listening to. The most telling statements from the Conservative benches seem to focus on the deficit, which I have attempted to address by talking about how that deficit is not as bad as they try to portray it.

I asked one of my colleagues across the way if he could explain how Stephen Harper had turned a multi-billion dollar surplus he inherited as prime minister into a multi-billion deficit even before a recession got under way. At the end of the day, he continued to have deficit after deficit, accumulating more real dollars in overall debt as a direct result, in all likelihood more than most any prime minister.

I also asked my colleague why we in government should be taking advice from the Conservatives based on their historical perspective. The answer was interesting. He said, “Look at what we Conservatives did while we were in government”. My colleague talked about the debt-to-GDP ratio, as if that would excuse what the Conservatives did in terms of the size of the debt. Personally, however, I thought it was a good answer. The member has something there. The fact is the debt-to-GDP ratio is something that needs to be taken into consideration. It is something the government talks about. We have a very successful debt-to-GDP ratio that continues to go down. That is very healthy for our country.

In one sense, the Conservative member, unwittingly no doubt, conceded that the real issue is the debt-to-GDP ratio. On that account, the government is doing exceptionally well, especially compared to other industrialized nations, in particular in Europe, including the United Kingdom, and other countries like the United States and Australia. In comparison, Canada is doing exceptionally well.

If we are looking at results, there is a long list of things the government has accomplished in just two years. I will reflect on a number of those. At the end of the day, we have seen an economy that is envied around the world for what we have been able to accomplish. It is significant. There are over 450,000 new jobs. How does that compare to the former Stephen Harper government? In 10 years under that government, there were just over a million jobs; in just two years under ours, there are 450,000 jobs and counting. I would argue that the economic policy of this government is working. We are seeing significant signs.

One of my friends across the way talked about focus and asked why this government was not focused. I indicated that we are in fact focused, indeed very focused, on Canada's middle class and those aspiring to be a part of it. However, it goes even beyond that. Listening the last week or so to the opposition benches, and to be fair to the Conservatives, they are not alone, the longer we are in government the closer the NDP and Conservatives want to be. They want to focus on the negative as much as possible. They want to engage in character assassinations in the House, but we will continue to remain focused on what is important to Canadians. That is something this Prime Minister and our caucus are committed to doing, because we were given a specific instruction by our Prime Minister long ago to work with our constituents. Our responsibility is to bring their ideas to the House of Commons and what they have to say, as opposed to bringing Ottawa to our constituents. It is materializing in a very real, tangible way.

If we look at the last couple of budgets or initiatives this government has entered into, we get a better understanding why the economy, relative to any other country in the world, is doing as well as it is. We recognize that a healthy economy means investing in Canada's middle class. It is the middle class and those striving to be a part of it that drive the economy. That is how to create jobs: having confidence in the middle class.

I talked about the legislation, I believe it was Bill C-2, that set in place some of the things that enabled us to have that tax cut for Canada's middle class. We literally puts hundreds of millions of dollars, going into the billions of dollars, into tax cuts for Canada's middle class. Those tax cuts were in good part covered by the special tax increase on Canada's wealthiest 1%. We made great enhancements to the Canada child benefit, investing hundreds of millions of dollars in the children of our country, and lifting tens of thousands of them out of poverty. We saw the same thing done with our guaranteed income supplement, which again resulted in tens of thousands of seniors being lifted out of poverty. We are increasing the disposable income of Canadian, and by doing that we are seeing them invest that income in our economy. Finally, after seeing 10 years of very little, we see a government that is investing in our infrastructure in a very real and tangible way. Not only does it create jobs for today, it creates opportunities into the future.

On that particular note, we can talk about the agreements that have been achieved to invest in Canadians' future.

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

Mr. Speaker, I find it interesting that the member opposite talked about what the real issue is.

The real issue here is that the average Canadian is actually paying more in tax, because they have a Liberal government. It is not really that complicated. Small businesses now are going to see an increase in their tax rate to about 73%, and my colleagues, as physicians or those in other professions, are being driven out of the country because of these high taxes. It is an opportunity taken away from them to practice medicine in this country they love. They would rather go to the United States where they can actually take care of more people. This is the type of thing that Canadians are facing with the Liberals.

I have a pretty simple question for the member opposite. When is he finally going to stand up to his government and say that these taxes are unacceptable and that he is going to the other side?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I can assure the member that will never happen.

The Conservatives have a story and want to stick to that story. They do not care about whether it lines up with factual truths. Just take a look at the person who is actually getting those child benefit increases, who had the—

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

Let me think who it is. It is the doctors who told me they would be paying more taxes. I guess they do not know how to do math—