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

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Passed Concurrence at report stage of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Passed Tme allocation for Bill ,
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:25 p.m.
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Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:25 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:25 p.m.
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Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

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

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:30 p.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

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

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:30 p.m.
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Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:30 p.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:30 p.m.
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Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

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

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:35 p.m.
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Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:45 p.m.
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Conservative

Kellie Leitch Conservative Simcoe—Grey, ON

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

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

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

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

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:45 p.m.
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Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Mr. Speaker, I appreciate the member's affinity for infrastructure investment. I was with her in her riding when we announced infrastructure spending at the hospital at CFB Borden. I was happy to be there with her and share some of the good news with some of her constituents, who I can assure members very much appreciated that investment in infrastructure. As the member mentioned, it is very much needed, not only in her riding but across Canada.

However, our investments in infrastructure and in the infrastructure bank, indeed any investments we make, as any Canadian does, are made with a look to getting a return on that investment. We need to look globally around the world for how we can leverage Canadian expertise and Canadian capital to get the best return on that expertise and capital. That is the benefit of investing globally. This not an either/or proposition. Of course, we will continue to invest in Canada and all the provinces of Canada, but we also need to keep investing globally to be a player in the global infrastructure world and to make sure there is a return on investment for Canadian investors, wherever they choose to invest their capital.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:45 p.m.
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NDP

Linda Duncan NDP Edmonton Strathcona, AB

Mr. Speaker, I thank the hon. member for his attention to SMEs.

If the government of the day paid attention, it would see that world investment is shifting toward renewable energy, not fossil fuels. Yet the current government has been chastised by both the Commissioner of the Environment and Sustainable Development and the Auditor General for not only refusing to provide the schedule for how it is going to meet its commitment to remove perverse subsidies for the fossil fuel sector, but also for the pathetically tiny shift in fossil fuel write-offs in its budget, which we are debating here today. My understanding is that it simply would move from 100% write-off to a 30% write-off, and that this will continue up to even 2021.

Could the member tell us, given his interest in SMEs, his government's schedule to finally remove the perverse subsidies, which amount to almost $6 billion a year, and of that amount, how much is reduced in this bill?

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:45 p.m.
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Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Mr. Speaker, it is always nice to hear from the member for Edmonton Strathcona. We had an opportunity last week to sit together at the special hearing of the international trade committee when the Prime Minister of Ukraine was here. It was nice to see her there. I know that we share either Ukrainian heritage or a large Ukrainian contingent in our constituency.

As a member of Parliament, not necessarily a member of the government, I do not have any inside information on that schedule. However, it is not an either/or proposition. This government supports both the oil and gas sector and clean, green technology. I do not think we should be ashamed of that. I do not think that is something bad. I do not think we need to make enemies of certain sectors in this country as a way of pushing a different agenda. There is room in the Canadian economy and the Canadian landscape for both industries. It behooves our government, and it is actually incumbent on us, to support industries that create jobs for Canadians, and I am proud to be part of a government that chooses to do that. I hope we do it for a very long time.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:50 p.m.
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Parkdale—High Park Ontario

Liberal

Arif Virani LiberalParliamentary Secretary to the Minister of Canadian Heritage (Multiculturalism)

Mr. Speaker, I would like to begin today by acknowledging that not only are we marking the 150th anniversary of Confederation this year, but on this very day are also celebrating the 150th anniversary of the first meeting of this very Parliament. It is an honour to speak on such an auspicious occasion.

I rise today to speak about the second budget implementation act, Bill C-63. I will address key parts of this implementation act, which I know will have a positive impact on and benefit the residents of my riding of Parkdale—High Park.

Over the last two years, I have heard from my constituents on issues that affect them and their families daily. I have heard their concerns and what they would like to see addressed by the government. I know that the positive measurers included in this proposed act will help to resolve my constituents' most pressing concerns.

Canada has the fastest growing economy in the entire G7, and as a government, we are dedicated to reinvesting the benefits of that growth back into Canada to better the lives of my constituents in Parkdale—High Park and, indeed, all Canadians. Our government will lower taxes on small businesses, offer more support to families through the Canada child benefit, enhance the working income tax benefit, and also advance indigenous reconciliation.

There have been 500,000 jobs created since 2015. Over 1.5 million low-income workers will receive support to advance their careers and provide for their families. Canada's unemployment rate has dropped from 7.1% in September 2015, just before the last federal election, down to 6.2% in September of this year. Youth unemployment figures across the country are also at historic lows. Building on this positive growth, our government is enhancing the working income tax benefit by $500 million, which will benefit 1.4 million Canadians. Additionally, to encourage entrepreneurship and innovation in our communities, we are lowering the small business tax from 11% to 9%.

This is a strong budget that will benefit people from coast to coast, including my fellow residents of Parkdale—High Park. This will be done by ensuring tax fairness, thanks to this new budget implementation act. It will put Canada's most skilled, talented, and innovative individuals at the heart of our future economy, creating more jobs both in the short term and the long term. We will also be implementing an agenda that addresses the changing nature of the economy to ensure that it will work for all Canadians.

This legislation allocates $400 million for the venture capital catalyst initiative. This will directly benefit start-ups, entrepreneurs, and small businesses in Parkdale—High Park and right around the country. It is the small business owners, like those in the neighbourhoods of my riding, like the Junction, Swansea Village, and Parkdale itself, and Bloor west village that not only stimulate our economy but also support the families living in our very community.

In the last couple of years, it has been a pleasure to engage in conversations time and time again with small business owners in Parkdale—High Park, who make up the fabric of the fantastic neighbourhoods where we live, and shop, and raise our families. I also held a town hall with small business owners at the end of September. I listened carefully to their concerns and relayed those concerns back to cabinet and the minister.

Our government has responded. As a result of this important feedback, we are determined to limit any changes in the tax treatment of passive income to 3% of Canadian businesses who hold more than $1 million in their corporate accounts. We have also decided not to move forward with measures relating to the conversion of income into capital gains.

I know that many of my constituents work long hours, and sometimes maintain more than one job to advance their careers and to support themselves and their families. Therefore, I will address the working income tax benefit, because this zones in on so many millions around this country, the hard-working Canadians, whether they live alone, with families, or are supporting seniors. In fact, the working income tax benefit is particularly zoned in on those living alone, who are now, according to the most recent census, the most common type of household in the entire country. For those people, it will alleviate the stress of managing the cost of housing and living expenses throughout a given month. For a single person balancing escalating costs, it will ease the transition back into the workforce. It will also reduce income inequality and help to reduce poverty in this country.

In addition to assisting working Canadians, we are acting on our priority of supporting communities' most vulnerable people: children and families in need of additional resources. We are doing so through this budget implementation act by enhancing the Canada child benefit. Once we heard from families across the country, our government took measures to cut taxes on Canada's middle class, as well as to introduce the Canada child benefit, a much-warranted change that creates tax-free benefits targeted to help those who need it the most.

The new Canada child benefit has already been tremendously successful. In fact, it informs a lot of the economic growth I referenced in the first part of my remarks. As the result of this very program, nine out of 10 families already benefit from the CCB, and 300,000 children have been lifted out of poverty as compared to the year 2014-15. The impact of these measures cannot be underestimated. This impact is being felt by families who contribute to our communities and local economy by investing back into communities with things like piano lessons at High Park Music, swimming lessons at the Parkdale Community Recreation Centre, or simply by purchasing healthier food for one's kids at the various farmers markets in my riding.

As a result of the enhancements to the Canada child benefit, in 2017-18, more than 1.2 million will have benefited in the province of Ontario, my home province, and they will continue to receive additional support. Why? Because our government has made a commitment to further strengthening the Canada child benefit to make sure it keeps pace with the cost of living. Starting next July, two full years ahead of schedule, the tax-free Canada child benefit amounts for families with two children will go up by approximately $200. It does not stop there. The following year, those families will see about $500 more.

One of the major concerns I have heard in conversations with many of the parents and families living in my riding of Parkdale—High Park is the cost of raising a family. In order to effectively address this, we are allocating more support for families, through the CCB, to help meet the numerous ongoing costs of raising a family. As the father of two young boys, I understand what it means to raise a family. I have also heard from countless people in my riding about those challenges. We are working in a targeted way to address the needs of those people in my community and in communities around this country who need the help the most.

The stats are quite overwhelming. In my riding alone, 10,290 children benefited from the Canada child benefit in July. The average payment that month was $510 per family, for a total of $3.255 million distributed to families in the riding of Parkdale—High Park. In addition to the benefits received by my neighbours through the new and enhanced programs I mentioned, this budget implementation act also includes measures that would entrench and fortify our commitment as a government and nation to reconciliation with indigenous persons.

As Canadians, we must continue to take a critical look at our past as we contemplate the future of our relationship with indigenous persons. It is vital for all of us to establish a spirit of reconciliation so that Canada's next 150 years leave a positive legacy. I am honoured, distinctly in my role as Parliamentary Secretary to the Minister of Heritage, to be working with the Minister of Heritage on advancing our government's efforts to preserve, restore, and revitalize indigenous languages. This goes beyond the celebration of our collective history. It is an opportunity to begin to correct the impact of harmful government policies like the colonial legacy of the residential school system has had on indigenous communities.

Recognizing this, the budget implementation act would invest $90 million over the next three years to support indigenous languages and culture. That includes $69 million in new funding to support things like language classes and culture camps, developing learning materials, and recording indigenous languages through the aboriginal languages initiative. Funding would also support the use of technology to preserve oral histories and the creation of other interactive educational materials. These investments would build tangibly on our government's commitment to working with indigenous persons to co-develop, in the spirit of true reconciliation, an indigenous languages legislation that would help to preserve, protect, revitalize, and promote indigenous languages in this country.

We are investing, as a government, based on the positive gains that have come as a result of Canada's fastest economic growth in nearly a decade, by enhancing the measures that support our small businesses, families, and hard-working people, and furthering our commitment to reconciliation. I urge all members of this House to vote in support of this bill to advance these important initiatives.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 12:55 p.m.
See context

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Mr. Speaker, I too feel very honoured to be standing to speak on the 150th anniversary of the first sitting of this place, and it is important that we are talking about the budget implementation act.

The one thing that is not clear to me as of yet is this Chinese infrastructure bank, where we are spending half a billion dollars. I know the communications adviser for the minister suggested that it is going to create jobs here at home. I am not sure what fantasyland that is from, where spending half a billion dollars in China building infrastructure is going to create jobs here at home for the middle class.

I would appreciate hearing a strong rationale, in terms of why the investment of half a billion dollars of taxpayers' dollars is going to help the middle class here at home and create jobs.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 1 p.m.
See context

Liberal

Arif Virani Liberal Parkdale—High Park, ON

Mr. Speaker, the short answer is that by improving our relationships with foreign nations, including diversifying our trade and investment portfolios, we are stimulating the economy here at home. Our commitment to infrastructure is unprecedented. Our commitment to infrastructure investments is unprecedented. What we are doing with the Asian infrastructure bank is indifferent in terms of what we are investing here. We are working toward building the economy by promoting infrastructure development. That includes developing greater ties with diverse partners around the planet, including the Asian side of the equation.