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

[Andy Fillmore, Liberal, Parliamentary Secretary to the Minister of Democratic Institutions]

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-63, which would implement certain provisions of the budget tabled in Parliament in March, 2017. Before I get to the crux of Bill C-63, I would like to set the broader context in which it has been introduced, because it is important for all of us to understand how our government's actions to date have impacted the Canadian economy.

As my colleagues know, every month, Statistics Canada releases a labour force survey that includes a selection of data about the performance of the Canadian economy, including the number of jobs added that month and the rate of unemployment. For decades, once every 30 days, governments of the day have awaited with bated breath to see just what Statistics Canada had to report.

Allow me to read the opening paragraphs of the most recent labour force survey, released this past Friday by Statistics Canada. They read:

Employment increased by 35,000 in October, and the unemployment rate rose 0.1 percentage points to 6.3%. Employment gains in the month were driven by full-time work (+89,000), while fewer people worked part time (-53,000).

On a year-over-year basis, total employment rose by 308,000 (+1.7%), with full-time work increasing by 397,000 (+2.7%) and the number of people working part time declining by 89,000 (-2.5%). On a year-over-year basis, total hours worked were up 2.7%.

The unemployment rate trended downwards in the 12 months to October, falling 0.7 percentage points over this period.

Those are the numbers from Canada's national statistics agency on Friday, and they speak for themselves. More broadly, since forming government we have added 500,000 new jobs to the Canadian economy. October marked 11 straight months of job growth, and 90% of new jobs created are full time. Meanwhile, unemployment is at its lowest rate in nine years. It is clear that our government's plan to create jobs and grow our economy is working.

Budget 2017 and Bill C-63 are the continuation of that work, the continuation of our demonstrably successful efforts to spur inclusive economic growth.

Now I would like to turn to some of the details of the plan, beginning with enhanced support for workers and skills training.

Sometimes our lives change suddenly and our work schedule needs to change significantly in response. Our government is giving Canadian workers the flexibility to adapt when these changes arise. Bill C-63 would make substantial improvements to employment insurance. We are providing $310 million in additional tax relief to support Canadians who have taken on the important responsibility of caring for a loved one. We are investing $886 million to increase flexibility in parental and maternity benefits, extending the benefits to 18 months from 12 months, so new parents have the flexibility to meet their diverse needs.

We are also making substantial investments, $2.7 billion, to be precise, to boost skills training and employment supports for unemployed and under-employed Canadians. Because we hear from so many Canadian workers who are choosing to pursue new skills in today's rapidly changing economy, we are going to invest $132 million to expand the flexibility of employment insurance for those who seek to fund their own personal skills development.

These efforts are complemented by a range of initiatives by our government to support workers, including our recent announcement that we are enhancing the working income tax benefit, or WITB, for low-income workers. For a single mom, a more generous working income tax benefit, combined with a stronger Canada child benefit, will mean more money for books, skating lessons, or warm clothes for winter.

Let us now speak about the budget's focus on affordable housing. I come to the House from an exciting career as a city planner. One thing I learned from that work is that without secure, stable, and affordable housing, every other goal our citizens strive to achieve becomes secondary. Without adequate shelter, families struggle to raise their children, to get educated, to find and keep employment, and even to stay healthy.

One of the many communities I am proud to represent in Halifax is called Mulgrave Park, a public housing neighbourhood. It is a vibrant community in our city's north end that really embodies the best of what our city has to offer: neighbours offering caring and loving support for each other. This past winter, I was proud and deeply moved to announce that our government would be investing $5 million dollars toward much needed improvements in their community infrastructure. These investments will make a real difference in the day-to-day lives of the people who live there, and they have told me as much with their smiles and their warm embraces.

Indeed, investments in affordable housing are always worth it. That is just one reason I am so thrilled that budget 2017 drastically increases the government's spending on affordable housing to $13.5 billion. Just imagine the lives it will change across this country.

I will turn now to the government's innovation agenda. Many will recall that back in March, some dubbed budget 2017 the “innovation budget”. The budget does focus very intentionally on innovation, and for good reason. The nature of our economy is evolving and we must ensure, as it evolves, that it works for all Canadians. The budget demonstrates that we are focused on building up Canada as a world-leading innovation economy to create jobs and grow the middle class by supporting innovators and equipping Canadian workers with the tools they need to succeed.

For example, the budget invests $1.26 billion in the strategic innovation fund, giving Canadian innovators access to a simpler and quicker funding application process to attract new, high-quality business investments. This is of great value to all Canadians, including my riding of Halifax. I have said many times that I believe Halifax has what it takes to put Atlantic Canada on the leading edge of innovation. Look no further than our growing tech and clean-tech sectors or the runaway success of our oceans sector, which last month became a finalist to become a supercluster under the government's innovation supercluster initiative. These are the kinds of projects that will help Canada be a leader in the industries of tomorrow and why every dollar the budget puts toward innovation is a dollar well spent.

Members may be wondering how the budget would better protect our environment. Meaningful and timely action is required if we are going to protect the majestic natural environment that defines and nurtures Canada. One of the most significant ways we are addressing environmental challenges in this budget is through green infrastructure, with an investment of $21.9 billion over the next 11 years. This major investment would allow us to mitigate and adapt to climate change through projects that reduce our greenhouse gas emissions, promote clean air and safe water systems, and uphold renewable sources of power. In particular, it makes a substantial investment of $83 million to enhance climate resilience in indigenous communities, as well as $18 million to implement a climate change and health adaptation program for first nations and Inuit communities.

As someone who does in fact believe in the science behind climate change, I am particularly excited that the budget includes $73.5 million to establish the Canadian centre for climate services. This centre of expertise would make climate science more accessible and support decision-makers as we address climate change.

The last topic I must address today is how our budget will foster what we call “inclusive growth”. Our government was elected on a promise to create the economic conditions for every Canadian to succeed and to leave no one behind. Investments in inclusive growth include $7 billion over 10 years in affordable child care, an investment that would create 40,000 more high-quality, affordable child care spaces across Canada. It includes funding to improve gender and cultural sensitivity in the judiciary, $100 million for a new national strategy to address gender-based violence, $74 million to enhance the career transition services program for veterans, and $17.5 million to establish a centre of excellence on PTSD.

For our youth, it includes $12.5 million to reduce barriers to education through the Canada learning bond program and $38 million to help low-income youth transition to post-secondary education and work through Pathways to Education Canada.

For indigenous communities, it includes $89.9 million for indigenous languages revitalization, $828 million to address health challenges in first nations and Inuit communities, and $165 million to support indigenous students by increasing access to post-secondary education and skills training.

These are the kinds of investments that will transform Canada for the better, along with the others I mentioned in my speech today, and countless additional initiatives I did not have time to address here today. I hope my colleagues from all corners of this place will agree that our plan is working for Canadians and will vote to keep this spectacular momentum going by voting in favour of Bill C-63.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I would like to thank my colleague for his speech, to which I listened closely.

He started by talking at length about the job market. We are all seeing a certain uptick in a number of ridings, and mine is no exception. The unemployment rate is falling, which means more people are working and paying employment insurance premiums.

Since this should mean a corresponding increase in revenues, why are we still facing a situation the government does not seem to have considered, namely that fewer than four out of ten workers qualify for employment insurance when bad luck strikes and they lose their jobs?

Why does the bill before us not address this issue?

[Andy Fillmore, Liberal, Halifax, NS]

Mr. Speaker, as the parliamentary secretary mentioned, an incredible investment has been made in the employment insurance program. When investments like that are made across the country, it will in fact be a benefit that accrues to all Canadians, as the economy as a whole is raised up by that. This, in conjunction with the tremendous investments in workforce training for those seeking a transition to a new job or those seeking to transition into the workforce in the first place, will have a tremendous effect in every corner of our great country.

[Peter Kent, Conservative, Thornhill, ON]

Mr. Speaker, it was interesting to read in the Toronto Star today, which is very often the public mouthpiece of the Liberal Party, that the revelations contained in the paradise papers that key Liberal insiders and bagmen were gaming the tax system added to the still unanswered questions about the finance minister's practices and actions and “reinforce the impression that this government is [not only] out of touch with the concerns of ordinary Canadians...[but quite possibly] in league with those who would rig the game in their own self-interest.” It concludes that the Liberals were happy to allow the rich to play by their own set of rules.

Does my hon. colleague agree with the Toronto Star?

[Andy Fillmore, Liberal, Halifax, NS]

Mr. Speaker, I find it highly ironic that the question is coming from the member. Under his government, there was a 10-year period where the poor in Canada became poorer, the rich became richer, and the middle class were ever more squeezed with a flat or negative income growth. I can understand the opposition party's obsession with such reports, as he referred to today, given the tremendous economic success our party is having in Canada right now. Of course, those members are looking for a distraction from all of that.

Particularly, in the case of the story mentioned by my hon. colleague, it is also understandable that when a party sees another party coming up in its fundraising rearview mirror, it might have a distraction to offer for that as well.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, in the questions around what is technically by the Liberals' own definition an omnibus bill, I suppose we can often ask what is in it and what is not in it. We see in the 300-some-odd pages that the Liberals have not found the space to keep their commitment on closing an important loophole for Canadian CEOs. It may not be obvious to many middle-class Canadians and those working hard to join it, that when people are paid in stock options, they pay a much lower tax rate.

The Liberals actually campaigned two years ago to begin to close that loophole to make it much more restrictive and to only apply that to innovation companies when it was a true incentive as opposed to what it usually was, which is a tax dodge. The Liberals tried to characterize the small business sector that way.

Therefore, my question is this. The Liberals did not find room in the 330 pages in this omnibus bill to close the loophole and keep their commitment. Could my friend give us a time when he actually thinks the Liberals will follow through on the promise they made to Canadians over two years ago?

[Andy Fillmore, Liberal, Halifax, NS]

Mr. Speaker, although we are able to walk and chew gum at the same time, we are not able to do everything at the same time. Clearly, right now our focus is on the middle class. As we all know now, Canada has the lowest small business tax rate in the G7. We have the fastest-growing economy. The effort that the Liberal government is undertaking to grow the economy and create more jobs is working brilliantly in Canada. We look forward to always doing better in the future.

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.

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

Mr. Speaker, I am very happy to speak today on what is proving to be one of the least popular budget bills in modern Canadian parliamentary history, although I regret not having the opportunity to address the ill-conceived Canada infrastructure bank directly, since it has been embedded in one of those omnibus bills and legislation. I will therefore dedicate my remarks to talking a bit about another Liberal boondoggle.

Bill C-63 is a continuation of the decline we have seen the government taking Canada on since it was first elected. Why is this a surprise? It is the Liberal way to tell Canadians one thing at election time and then do something completely different while it is in power.

I remember the election campaign. The Liberals promised a small deficit of $10 billion to fund infrastructure. Many Canadians voted for a modest deficit, taking the Prime Minister at his word, in contrast to the fiscal responsibility promoted by my own party and also, quite frankly, by the NDP.

It did not take long for the concept of a modest deficit to fall by the wayside, and since then it has spiralled out of control. The last economic update did not even offer a plan for balancing the budget. No plan at all. It is unbelievable.

What is worse is the conduct of the finance minister in regard to his own affairs. In case anybody has forgotten, let me remind the House.

First, the minister failed to put his assets from his family firm Morneau Shepell, a human resources and pension management firm, in a blind trust, despite saying he would do so. These assets consisted of millions of shares, which are worth approximately $21 million in current stock prices.

Second, the minister continued to receive dividends on these shares, dated from the time he was elected. At a dividend rate of about 6.5¢ a share, the minister was roughly earning $65,000 a month over the past two years. For comparison, according to Statistics Canada, the median wage of an individual worker in the province of Ontario, the area I represent, is just over $44,000 per year. That is $20,000 less per year than our finance minister was earning per month from dividends alone. That is on top of his salary as a cabinet minister. Said another way, the average Ontario worker makes $20,000 less over the course of a year than the minister made per month. Now, there is a clear message for the middle class.

Third, we also learned that while the minister was calling small business owners tax cheats, he apparently forgot to disclose that he owned a private corporation, with a sole purpose of owning a villa in the south of France. I guess it is a small villa, maybe a “villette”. Why own a corporation to own a villa? To avoid paying inheritance tax, of course, the same tax the minister has proposed to the farmers of my riding when they transfer their family farms to the next generation of Canadians. We should be proud that the next generation of Canadians wants to farm our great country.

Fourth, we also learned that Morneau Shepell, the minister's aforementioned family business, had an $8 million contract to manage the pension and benefits of the Bank of Canada. What minister is responsible for the Bank of Canada? Why, the Minister of Finance.

To summarize, the minister continued to hold shares in a company he regulated, while the company signed a contract with a department for which he was responsible. It is really quite astounding. One would think that this minister would have been fired for this clear conflict of interest. The Ethics Commissioner, to her credit, has fined the minister for this breach. However, the Prime Minister continues to defend him and allow this attack on our farmers to continue while not dealing with his own minister.

Bill C-63 would simply continue the out-of-control spending of the Liberal government and would further hike taxes on everyone it has claimed to help. The Liberals are adding debt at the twice the rate that promised and the minister's own numbers project debt for every year in the future. Unfortunately for Canadians, someone has to pay for this Liberal spending spree, and it is middle-class Canadians. In fact, it is estimated that more than 80% of the middle class pay more tax today under the Liberals than under the previous government.

Regarding some of the specifics of the bill, the Liberals are now going to tax our beer. Breweries in my riding, whether it be Creemore Springs, Side Launch Brewing Company, Collingwood Brewery, or Northwinds Brewery, all create jobs. They attract tourists who are eager to sample their products, and they already pay enough tax.

However, it is not enough for the Liberals, who look at successful entrepreneurs as tax cheats and a source of revenue. In fact, the Liberals are so desperate for money that they are also targeting type 1 diabetics. They have now decided to deny type 1 diabetics their tax credits. Individuals who need help are going to help the Liberals get back into the black, I guess.

The Canada Revenue Agency itself confirmed that with respect to insulin therapy, new direction was given at the beginning of May regarding applications under the disability tax credit. This change in direction was unannounced, and it has caused huge confusion and suffering for those suffering from type 1 diabetes. It has resulted in hundreds of diabetics receiving less funding by hundreds, sometimes thousands, of dollars.

What is worse is that the minister has the power to stop it today, but she and her fellow cabinet colleagues, her government, her colleagues on the other side of the House, have not reverted the directive. It is simple. A directive from her to her department will reverse the changes and allow those type 1 diabetics to receive their tax credits until further consultation could be done. I raised this in the House last Friday, but to my knowledge, the minister has yet to act.

Another item that would be created with this omnibus bill, Bill C-63, is another infrastructure bank support. We saw in the omnibus bill, Bill C-44, the creation of the Canada infrastructure bank. It is a $35-billion boondoggle. François Beaudoin, the former CEO of the Business Development Bank of Canada and witness at the Gomery inquiry into Liberal corruption, stated that this new bank is easily open to “political interference”. However, in the rush to create that fund, the Liberals ignored everyone.

This time there is a commitment to support another infrastructure bank, the Asian Infrastructure Investment Bank, for an immediate investment of $256 million, and a further authorization in the future for the potential of another $480 million. The Liberals will have bought 1% of this bank. What do taxpayers get back? Nothing. We commit money as Canadians so that other countries can get cheaper loans and build their infrastructure. By bringing Canada into the Asian Infrastructure Investment Bank, the Liberals would be sending hundreds of millions of Canadian taxpayer dollars to foreigners with no control over how the money would be spent or whether or not Canadian companies would benefit, let alone Canadian citizens.

As I have said previously, I am very confident in saying that Canadians want investments in our infrastructure here in Canada. Whether it be in my riding, Collingwood, Wasaga Beach, Adjala-Tosorontio, Angus, or Alliston, we know that infrastructure is needed. Canadian citizens need it so that they can make their businesses more successful, and so that they can make sure their children get to school safely.

I was happy to be a part of a previous government that understood that we worked with our allies, the United States and Japan, and did not support this bank. We could not then, and the Liberals cannot now, ensure that the bank would follow environmental, social, and human rights standards that we expect of our institutions. Therefore, while they preach about human rights and environmental policy standards here at home and to others abroad, they are prepared to turn a blind eye when it suits their needs.

Bill C-63 is a continuation of a shameful decline in our government finances. I will be voting against it, and I encourage all members on both sides of the House to vote against the bill, which is one that invests in others outside of our nation's borders and not in Canadians.

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

Mr. Speaker, the member truly reflects and embodies the Conservative Party in opposition, which is so much out of tune and out of touch with reality. The Conservatives have no problem distorting truths in order to substantiate a specific theme that they want to espouse. They have no reservations about character assassination, and they have no problem saying things that are just not true.

The member talked about Canadians wanting to see an investment here in Canada, and they are seeing that investment. There is far more investment than with the Stephen Harper government, in which she was a member and a cabinet member. We have record high amounts being invested in Canadian infrastructure. In every region of this country, this government is building. The commitment towards Canada's infrastructure is higher in this government than in decades and, I would argue, quite possibly in the history of Canada.

Will my colleague across the way not recognize the truth and say that we have a significant investment in Canada's infrastructure in these last two budgets? If she does not believe that, can she tell me of another national budget, in particular that the Harper government quite possibly introduced, where there was a stronger commitment to Canada's infrastructure? Tell me when that occurred.

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

Mr. Speaker, I would first like to state that if we want to talk about character assassination, why is it the Minister of Finance gets to tell the member for Milton that she cannot do math? What is that all about? The last I checked, the member for Milton is actually exceptionally competent and well qualified, and should not be diminished in this House.

The issues with regard to the Minister of Finance are actually public. The Ethics Commissioner has been clear.

With respect to my speech, and the things I spoke to, yes, this bill increases taxes on beer. Yes, this bill actually makes a choice to invest in infrastructure outside of Canadian borders as opposed to at home.

My question for the member would be, why is it that $2 billion in infrastructure money lapsed last year instead of being invested in places like Collingwood or Wasaga Beach, or Adjala–Tosorontio, where people actually need that infrastructure investment? That lapsed money could have made a meaningful difference not only in my riding but across the country. The Liberals do not have their act together, and do not feel that they can invest in small communities.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I want to thank my colleague for her speech.

I would like to know if her position has changed. We in the NDP have long been concerned about tax evasion. In my opinion, my colleague's government missed multiple opportunities to address a situation that is unacceptable to middle-class Canadians. The recent events reported in the news are highly alarming. They clearly show that Liberal Party fundraisers are evading taxes with impunity.

Does the member think the government should be doing more to stop this hemorrhaging of money we so desperately need to provide services to Canadians who actually do pay their taxes?

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

Mr. Speaker, as I mentioned in my speech, I do have concerns about people who avoid taxes, one of them being our Minister of Finance. He has made a conscious choice to avoid paying taxes here, inheritance taxes.

The Liberals expect to place a higher tax rate on those individuals who are farmers, physicians, and small business people across our country. Tax avoidance is a problem in this country, and we have seen that most recently with these paradise papers. I do hope that the government acts swiftly and actually takes action, albeit we have not seen them take action on their own Minister of Finance. Why would we expect them to take action on anyone else?

[Peter Schiefke, Liberal, Parliamentary Secretary to the Prime Minister (Youth)]

Mr. Speaker, it is a privilege for me to rise in the House today to support Bill C-63, the budget implementation act, 2017, no. 2.

On October 27, the hon. Minister of National Defence introduced Bill C-63, and we have taken the next steps to ensure we maintain the job and economic growth of the past two years. I will explain why I think Bill C-63 presents our government and the House with a way forward to provide for current and future generations.

The record growth that we have witnessed over the past two years is clear proof that this government's plan is working. Last Friday, Statistics Canada published their most recent labour force survey for October 2018. Our economy generated half a million jobs from the time we formed our government two years ago until this past weekend.

The majority of these jobs are full-time. In October, 90,000 full-time jobs were created in Canada. I am particularly proud to note that Quebec, which is home to my riding of Vaudreuil—Soulanges, is leading the way when it comes to job creation in Canada. In October alone, 33,000 new full-time jobs were created in Quebec. What is more, Quebec's unemployment rate is now lower than the national rate.

This government's economic plan is working because we remained focused on Canadians' priorities, those that will have the biggest impact on our economic growth, namely investing in our families, lowering taxes for the middle class, and supporting the success of our SMEs.

I am also proud to say that employment was up in October, particularly for young people between the ages of 15 and 24. As the Parliamentary Secretary to the Prime Minister for Youth, I am honoured to see that our plan to help young people is also working. Programs, such as Canada summer jobs, are working. They are giving 35,000 more young Canadians across the country work experience every summer.

The strength of our economy shows that more young people than ever are finding jobs and kick-starting their careers. We are helping young Canadians get the skills they need to succeed through new investments in innovation and job training. In September, we announced a $73-million investment to create 60,000 new student work placements over five years in co-operation with universities, colleges, and polytechnics.

To see that our investments in young Canadians are working is enough, in my view, to support the measures of the second budget implementation act as part of this government's broader economic strategy. However, our plan does not stop with our young people.

This government's strategy is comprehensive and focused on areas that matter most for our middle class. That is why our first-ever act as government was to lower taxes on the middle class and increase them on Canada's top 1%. It is why we introduced the more generous and tax-free Canada child benefit, and most recently indexed it to the cost of living as it continues to rise. For the same reasons we recently committed to lowering the tax rate for small businesses in Canada to 9% over the next 15 months. Because of these bold policies, Canada is now the fastest growing economy in the G7. We have the most competitive small business tax rate and the lowest overall tax costs for small businesses. With nearly 99% of companies in Canada being small businesses, it is important to ensure that we build an economic system that works for them, allowing them to grow and flourish for years to come. However, there is always more work to be done, and better is indeed always possible.

Therefore, to continue on the incredible success that we have seen in the last two years, we must work to implement key portions of the 2017 budget. Bill C-63 would do just that. Allow me to highlight some key points that will mean the most to my community of Vaudreuil—Soulanges.

The budget implementation bill no. 2 takes steps to implement our innovation and skills plan, which focuses some of our investments where they matter most in helping Canadians navigate the changing landscape of the 21st century economy. By doing so, we will create a labour force that works for Canadians.

Bill C-63 seeks to implement a $1 billion innovation and skills plan as part of budget 2017, with $600 million toward new financing for clean tech firms. This is welcome news and goes beyond the bold steps this government has already taken to protect our environment and grow a green economy in 2017 and beyond.

We have already tripled investments in clean tech since forming government only two years ago. This goes hand in hand with the government's commitment to a clean growth economy, including the $2 billion low-carbon economy fund and the $21.9 billion in green infrastructure outlined in budget 2017. By prioritizing clean growth, the proposed budget implementation bill pushes our government's plans for a green economy further than ever before.

By seeking a balance for our economy, Bill C-63 will keep our support on track for the middle class and those working hard to join it. It aims for balance in other areas of our economy as well. The budget implementation bill seeks to put in place measures to ensure that Canadian workers will have greater flexibility in achieving a healthy work-life balance, helping those with families and sick loved ones to spend more time at home when they need to.

I am lucky to be the father of two beautiful children, Ellie and Anderson. I am lucky to serve my community and build a better country for my children at the same time. I am also lucky to have an incredible partner in helping meet these challenges and finding that balance between my responsibilities as an MP and as a father.

This is challenging. It is a challenge that many Canadians, including those in my community, know all too well. More Canadian families than ever before must find new and innovative ways to strike that balance as parents who work to support their children and who spend time with them at home.

That is why this government extended parental leave in Canada from 12 to 18 months at 33% of the parent's income. The budget implementation bill takes the next steps in our plan and would give Canadians more flexibility in federally regulated industries to have a better work-life balance, allowing more room to take vacation and holidays when they need them, to take care of a family member, and to prepare to grieve after losing a loved one.

Canadians deserve the opportunity to live and work in a way that best accommodates their aspirations, their families, and their choices. It is our duty as MPs to help them any way we can.

Bill C-63 contains significant measures that are necessary to securing the future Canadians expect. Those measures include strengthening our green economy, more flexibility for federally regulated employees, and the implementation of certain measures in budget 2017.

I encourage all members of the House who share these values to support Bill C-63 and, in so doing, support the middle class, our small businesses, and our economy.

I encourage those who are still unsure to take a look at our government's economic update. We have the lowest overall tax rates for small businesses and the fastest economic growth in the G7. We have cut taxes for the middle class and provided support to middle-class families. Wages are up and child poverty is down. We have invested in our economy, and we have helped create over 500,000 jobs in the past two years.

Our plan is working. Now it is time for all of us to support Bill C-63.

[Mark Warawa, Conservative, Langley—Aldergrove, BC]

Mr. Speaker, I have three questions for the hon. member. It is very important that we have a budget that represents where Canadians are now, and takes us in the direction of prosperity for all Canadians. He is the parliamentary secretary for youth, and the Prime Minister is the Minister for Youth.

The first question is this. Does he think it is fair that previous governments had a minister for youth, but the Liberal government does not have a minister for seniors, who are the largest growing population? There are more seniors than youth. It is the largest growing demographic in Canada and yet it is being ignored by the government. Does he think that is fair?

The second question is about taxation. Does the member think it is fair that taxes are going up, but they say taxes are going down? Canadians are hard pressed, and it is a growing problem.

Third, does he think it is fair that the Prime Minister and the finance minister are not paying their fair share of taxes?