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

[Kennedy Stewart, NDP, Burnaby South, BC]

Mr. Speaker, I always enjoy the member's interventions and really appreciate her support on this issue.

Of course, the threat to jobs in Burnaby or the rest of British Columbia is not covered by examinations at the National Energy Board, because the government relies on the process created by the Conservatives, which is to limit debate and stop cross-examination of companies. As a result, we really get a very pro picture of almost all projects.

The Prime Minister had said he would change the process and would send the pipeline proposal back to the drawing board. He immediately broke his promise, did not revise the process, and here we are.

Getting to the hon. member's exact point, we do have a refinery in Burnaby that I support. However, what has happened is that Kinder Morgan is pinching off supply to that refinery and it is in danger of closing. I fully support those jobs, which are good, union-paying jobs. It is a shame the government is not paying more attention to the welfare of people in British Columbia.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, I want to thank my colleague for talking about jobs. As someone from a coastal community who ran a chamber of commerce, I understand how important it is to protect the marine economy for our jobs. There are over 100,000 people who rely on a clean ocean for their jobs in coastal British Columbia.

As my colleague from Saanich—Gulf Islands just mentioned, we need to do everything we can to protect jobs in coastal British Columbia. We also have an opportunity to build a marine economy for the future. Where I live in Port Alberni, we want to build a marine economy through enhancements and investments in our ports, through investments in rehabilitating our salmon, investments in salmon restoration, and habitat protection and salmon enhancement.

Perhaps the member could talk about the jobs that are being threatened by this proposal and future opportunities for coastal British Columbia, which British Columbians are going to stand up and fight for, and how important it is that we listen to British Columbians. If we underestimate the will of British Columbians, we will find out what people in my community know, that when logging was taking place in 1993, the largest civil disobedience in Canadian history took place when good jobs and the future of the economy we created in Clayoquot Sound were threatened.

[Kennedy Stewart, NDP, Burnaby South, BC]

Mr. Speaker, the government says that it is an evidence-based government that makes policy based on evidence, but basically it decided that this pipeline was going to go through no matter what, and then it fit the facts to support its case. Of course, one would perhaps expect that from an undergraduate writing their first paper, but not from a government that is supposed to run the country. The Liberals need to take in more evidence and, in fact, they need to cancel this project.

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.

[Michel Picard, Liberal, Montarville, QC]

Mr. Speaker, it is my great pleasure to speak to Bill C-63 today. The budget implementation act, 2017, no. 2 includes key measures from the government's second budget, which outlines the second phase of the government's plan to make smart investments that will create jobs, grow our economy, and provide more opportunities for every Canadian to succeed.

Thanks to these smart investments and an overall commitment to equity, the government is ensuring that Canada's best days are still ahead.

Before I get into the budget implementation bill, I want to talk about the measures the government has taken so far to give all Canadians, including those in the middle class and those working hard to join it, the opportunities they need to succeed.

To begin with, we asked the wealthiest 1% to pay a bit more in taxes in order to be able to give the middle class a tax cut. That tax cut for the middle class benefited nine million Canadians, and we are very proud of that.

Then we brought in the new Canada child benefit, which has lifted hundreds of thousands of children out of poverty. As a result of our CCB, nine out of 10 Canadian families are getting more in benefits than they did under the previous system. Compared to the previous system of child benefits, the CCB is more generous and better targeted to those who need it most.

In the fall economic statement released on October 24, the government announced that it would strengthen the Canada child benefit by indexing it to annual increases in the cost of living as of 2018, which is two years earlier than planned. What does that mean in practical terms? For a single parent with two children and an income of $35,000, the enhanced Canada child benefit will contribute an additional $560 in the 2019-20 benefit year towards the cost of raising his or her children. That means more money for books, winter coats, and skating lessons. The added confidence that the Canada child benefit brings to families can have a positive impact on economic growth.

Our government has also enhanced the Canada pension plan in order to provide Canadians with financial security when they retire from their hard work life. Enhancing the Canada pension plan ensures that Canadians will have more money in retirement so they are less worried about saving and can focus more on enjoying the good times with their families.

Starting in 2019, we will be enhancing the working income tax benefit by an additional $500 million per year. This will put more money in the pockets of low-income workers, including families without children and the growing number of single Canadians. The enhancement will be in addition to the increase of about $250 million annually that will also come into effect in 2019 as part of the enhancement of the Canada pension plan.

These two actions alone will boost the total amount the government spends on the WITB by about 65% in 2019, increasing benefits to current recipients and expanding the number of Canadians receiving this essential support.

This extra money could pay the family grocery bill or buy warm winter clothes. The improved benefit will help low-income Canadians make ends meet.

The government is also showing that it is committed to helping small businesses invest, grow, and create jobs by lowering the small business tax rate to 10% effective January 1, 2018, and to 9% effective January 1, 2019. This will provide a small business with up to $7,500 per year in corporate tax savings to reinvest in and grow its business. These kinds of savings are crucial for businesses to grow and prosper.

Lastly, the government intends to make important changes to the tax system that will ensure Canada's low corporate tax rates serve to support businesses, not to provide unfair tax advantages to the wealthy and the richest Canadians.

The steps taken to date are having a real positive impact on our economy and for Canadians. Optimism is on the rise, and with good reason. Job creation is strong with over 450,000 new jobs created in the last two years. The unemployment rate is at its lowest level since 2008. Youth unemployment is at a historic low.

Canada has the fastest growing economy in the G7 by a wide margin, growing at an average rate of 3.7% over the last year, which is the fastest pace of growth since early 2006. Growth is forecast to be 3.1% in 2017, significantly above the expectation at the beginning of the year.

The fiscal outlook has improved by more than $6.5 billion annually on average from what was projected in budget 2017 last March.

The tax measures that we have taken for the benefit of families and children are having a real impact every day in my riding, Montarville. Approximately 97% of the people of Montarville clearly define themselves as being part of the middle class. These positive impacts are reported back to us regularly. They are felt in a very real and tangible way in peoples' wallets. This kind of investment is crucial, perhaps even a game-changer, in giving people assurances of a better life that is easier to manage because their budget is easier to manage.

For example, the city of Saint-Bruno, where I live, has been named the best place in Canada to raise children.

This kind of tax break is key to giving families the help they all need, just as families are having more and more children. A young family with three very young kids lives right across from me. That family is benefiting directly from this kind of help. This help is making a real, tangible, and practical difference at the end of every month.

Another measure I find quite interesting among the budget measures is the government's decision to legalize and regulate cannabis, as well as the economic spinoffs that can be generated by such a measure.

Our government plans to legalize and strictly regulate cannabis. This policy is necessary and desirable and has two objectives: to keep marijuana out of the hands of youth, and to deprive criminals of any profits from illegal cannabis sales.

In advance of the government's plan to legalize cannabis, budget 2017 allocated several million dollars to public education programming and surveillance activities. On that note, I would like to inform the House that during the consultations I participated in, and even had the chance to lead in Quebec, one important concern was raised with regard to training, information, and above all prevention. Now that the system is regulated, the government can use the sales tax revenues it generates to take concrete action in certain areas, including prevention programs.

Taxation is one of the key factors that will play a major role in ensuring the objectives of legalization are met. As the Prime Minister and the Minister of Finance have clearly stated, in order for legalization to be effective, taxes must be low from the beginning, and the federal, provincial, and territorial governments must continue to work together to guarantee a coordinated approach. Co-operation is critical, and the federal government wants to engage our provincial and territorial partners in order to develop a coordinated approach to cannabis taxation.

I would like to remind all members that taxation is not the main objective of legalization. On the contrary, this is an essential health issue, given that the status quo has failed so spectacularly. That being said, by taking responsibility and legalizing cannabis, we will generate indirect tax revenue that will benefit Canadian society as a whole.

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, we hear the government talk about the child benefit. I want to know if the Liberals have addressed the results that we are finding in places like Fort McMurray, where many of the families have lost the child benefit because of increased incomes, but the high cost of living is not being taken into consideration. Also the fact that so many people are losing their jobs as well as their homes is not being taken into consideration.

What is the government doing to address those issues where families have a new situation and the government is not there for support at all?

[Michel Picard, Liberal, Montarville, QC]

Mr. Speaker, simply put, we decided to change the former strategy where the child benefit was taxable to something that is not. Therefore, people who get the child benefit at the end of the month every month, net amount, pay their expenses with what they receive.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, in the election campaign, the Liberals made a promise that they were going to invest in language revitalization for indigenous peoples. We have been through two budgets, a budget implementation act here today, and again, there is nothing for indigenous language.

Right now we are in an emergency situation when it comes to languages. We lose more and more elders and the holders of that language. Cliff Atleo, who is one of our Nuu-chah-nulth elders at the council of the Ha'wiih, which is the hereditary chiefs of the Nuu-chah-nulth, says that their language is their identity. When they lose their language, they lose their identity.

If the member supports language revitalization and investments in the holders of the language, there are young people like Victoria Wells and Ivy Martin who want to carry on the legacy of their language and their culture, and holders of the language like Levi Martin, who want to share that knowledge, but we need assistance to help them carry on their culture and their traditions.

Will the government take urgent action on language revitalization as the NDP has repeatedly asked it to do?

[Michel Picard, Liberal, Montarville, QC]

Mr. Speaker, initiatives for reconciliation with the indigenous peoples are at the heart of our commitment. I am a member of the Standing Committee on Public Safety and National Security with opposition colleagues, and all the members are unanimous that the first nations need as much collaboration as necessary to improve their situation. When it comes to identity or security, no stone is being left unturned.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, increasing the Canada child benefit, for instance, for lots of low-income aboriginal people, indigenous people, and others in my riding is crucial. As the member said, it is not taxable. There are 5,840 children in Yukon who receive this, an average amount of $6,240. Will the increases we gave to low-income seniors, low-income students, and the working income tax benefit contribute to the economy? Obviously, all of these people are going to reinvest that money right away. They really need it.

I will clarify what two opposition members said on northern benefits. We have increased the northern benefit so that people living in the far regions of the north get an increase, which was delightful for the north. Over three years, we will put in $89.9 million for indigenous language and cultures, so we agree with the NDP on that.

[Michel Picard, Liberal, Montarville, QC]

Mr. Speaker, I want to share something that happened to me one day when I was talking to my constituents. A woman came up to me in front of the grocery store and showed me what she bought. The total came up to about $5 or $6. She said that would probably be her food for the day, which was rather discouraging. She clearly did not have enough for three meals.

The government assistance being provided is probably not enough to make everyone rich, but it is meant to help meet basic needs. It is not enough money to invest. People need this bit of extra money on a daily basis.

This money is being invested in the public and in turn it will be reinvested in our market. It is reinvested in our grocery stores, our schools, our shops, and our services.

Our constituents confirm that this money is helpful. They are very clear, definitive, and consistent about it. They need this money and are very appreciative of this type of initiative.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, I am pleased to have a chance today to discuss the latest iteration of the Liberals' budget implementation legislation, Bill C-63.

When the Liberals were running their election campaign back in 2015, they made a number of promises to Canadians. One of those promises was that they would incur a small deficit of less than $10 billion. During that same time, they also promised they would balance the budget by 2019. We now know that neither of these things are true, and that every time the Prime Minister gives with one hand, he takes more with the other.

As the Liberals like to make up words and change their meaning, I have made up a word for this action. It is “dispocketnesia”, which means using one hand to take from one pocket to the other and forgetting about it.

When the Minister of Finance tabled the government's fall economic statement just a couple of weeks ago, he confirmed the Liberals were borrowing $20 billion this year to pay for their out-of-control spending; that is $20 billion this year alone. That means the current deficit is more than double what the Liberals initially promised. This also means, as confirmed by the government, that the budget will never be balanced under the Prime Minister.

Of course, with reckless spending comes the need to increase taxes, which is in part what Bill C-63 would do. Since the Prime Minister is adding debt at twice the rate he promised and since his government projects that debt will grow every year into the future, someone needs to foot the bill. Unfortunately for my constituents and for all Canadians, it is the taxpayer who will bear the burden of the government's irresponsible spending.

I say all this because the Liberal track record of the broken promise after broken promise has fostered an environment of distrust and skepticism among the residents of my riding, and certainly across the country.

The Liberals constantly say that they are helping the middle class and those who wish to join it, yet over 80% of middle-class Canadians are now paying more taxes than they did before the Prime Minister took office. Bill C-63 would not help these people, but rather would push our country further and further into debt.

The 80% figure I just quoted does not even include a measure that will drastically affect my constituents in a multitude of ways. That measure is a carbon tax, or do the Liberals hope Canadians have forgotten about that, because that is 54 days away?

The good people in my riding just simply cannot afford another tax, certainly not one that will affect so many aspects of their lives. They will now need to pay more to heat their homes, to drive their cars, run their tractors and combines, get to work or see their doctor, and operate their businesses. What do these people get from their government in return?

I would like to say my riding is currently booming with government-funded infrastructure projects that it sorely needs, but that would be a lie. I would like to tell my constituents that in return for the increase in their household bills due to a carbon tax, they would have a government that cares about western Canada, but I definitely cannot say that under the Liberals.

I would very much like to tell the small business owners in my riding that the government will start making life easier for them by not changing the tax rules to the point they are unsure if their businesses will even be viable in the future. Alas, I cannot do any of these things. The government lacks the credibility, as shown by their dismal track record, and Canadians expect better.

One of the major measures contained in Bill C-63 that I would like to touch on is the Asian Infrastructure Investment Bank and the effect this investment will have on Canadians. The Liberals are investing $500 million, half a billion dollars, to be a part of an investment bank in another country. We would think that an investment of that size would be overwhelmingly beneficial to the Canadian public, especially given the fact that the federal government is not exactly swimming in dollars at the moment.

Unfortunately, there will be very little direct benefit to Canadians as a result of this investment, and those who do benefit are the wealthy 1% who are the only ones who can afford to consider bidding on contracts through the infrastructure investment bank. We do not know how our investment will be used. We do not know what it will be used on or whether it will be to fund a pipeline. No, not a pipeline in Canada, despite the fact energy east was cancelled, but rather a pipeline in Asia. Instead of making it competitive for Canadian companies to see their oil, this makes it easier for foreign countries to compete against us.

How can the Liberals claim to be helping and representing the middle class when they are investing in measures such as the Asian Infrastructure Investment Bank rather than using even a portion of that money to helping Canadians at home? The Liberals love to spend and we understand the need to create strong relationships and international partnerships through initiatives like investment banks, but it should not be at the cost of the Canadian taxpayer who will see no direct benefit. This is yet another reason why my constituents tell me they have completely lost faith in the government's ability to spend money responsibly.

It appears that the Liberals have a hard time understanding the needs of the middle-class Canadians for whom they say they are working. This is not surprising, given that the Prime Minister and the Minister of Finance have never actually been middle class. The finance minister cemented this general lack of faith when it was recently discovered that he failed to disclose financial assets to the Ethics Commissioner. He should have done this as soon as he became a minister, and yet it was overlooked.

If average Canadians failed to disclose their assets to the appropriate government body, they would be punished accordingly, but when it is the Prime Minister's right-hand man, the problem seems to simply disappear. How are Canadians supposed to trust the finance minister with control of our country's finances when he cannot even properly take care of his own?

The finance minister also refuses to disclose whether he recused himself from important conversations surrounding legislation that would have an effect on his multi-million dollar company, Morneau Shepell . As far as we know, he took part in discussions surrounding Bill C-27. Was he involved in the talks on pensions for Bombardier and did he fail to recuse himself from discussions on the Bermuda tax treaty? Thankfully, he was unable to recuse himself when the Ethics Commissioner came calling. He paid the $200 dollar fine for his actions, but this leaves the question of just how open and honest our finance minister really is.

Canadians expect the Liberal government to do better and be better. We expect that cabinet ministers will uphold the rules to the letter of the law and will also do the right thing. The government has shown that the conduct of its cabinet ministers is not befitting the expectations of the people they represent. Not only are they unable to follow the rules themselves, but they expect the support of Canadians who are being punished for doing just that, as they stated in their messaging surrounding the tax changes to close perceived loopholes.

Those tax changes are going to hurt Canadians, especially in my riding where there is a plethora of small businesses, including farms. There are huge concerns over the cost to transfer a farm down from one generation to the next, something people in my constituency have been doing for over a century in some cases. The cost of doing business is going to go up for all business owners too, not just farmers.

Who is the cost not going to go up for? The Prime Minister and the finance minister, whose family fortunes are safely tucked away and will be unaffected by these tax changes. This just goes to show how out of touch the Liberals are when it comes to the needs of hard-working middle-class Canadians.

Bill C-63 contains many provisions given that it is an omnibus bill. Unfortunately I am failing to see how this “sunny ways” legislation will actually help the people in my riding. My hometown of Estevan is known as the “Sunshine Capital of Canada”. Even with that moniker, everyone knows the Liberals are not building green transit lines in rural Saskatchewan.

On this side of the House, we believe in responsible government spending, lower taxes, and making life more affordable for every Canadian. We have learned that we absolutely cannot trust the Prime Minister to give Canadians a tax break. In fact, the only thing we can trust is that he will continue to break his promises and put us further and further into debt, one tax increase at a time.

This is not what my constituents want. It is not what Canadians want. We will continue to fight the Prime Minister's continued tax hikes every step of the way.

[Anju Dhillon, Liberal, Dorval—Lachine—LaSalle, QC]

Mr. Speaker, I listened attentively to my colleague's speech. Since our government came into power, we have had extremely good growth. Canada has one of the fastest growing economies in the G7, and there is no denying that. I think my hon. colleague cannot deny that fact.

Budget 2017 will continue in the same way to help our economy grow further and continue to cut taxes for the middle class, small businesses, and help us move people into the middle class. I think my colleague across the way cannot deny that either.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, I have had a number of conversations with my hon. colleague over the last two years, which I appreciate. I have always found her very open in her conversation.

To answer her question, the Liberals cannot on the one hand take credit for the economy and jobs and on the other hand go after small businesses, farmers, and workers and tell them they are tax cheats. They cannot have it both ways. They either work one way or the other. If they are going to take credit for it, then they need to take credit for the fact that they are going to try to close all these loopholes they are accusing small businesses of having, and that is going to hurt my economy.

The economy in Estevan in my riding has lost many jobs because of the downturn in the oil industry, and it has not recovered. Those people are not back to work. They are still suffering. Back five years ago, my home town had a vacancy rate of 0.1%. Today it is 30%-plus. People are leaving rural Saskatchewan. The jobs in this infrastructure suggestion will not put any work into my riding.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, what is the member's plan to deal with the climate change crisis the world faces? I will give him a minute to think about it, because it may not be the number one priority for his party. I will make two comments while he is doing that.

First, it is fascinating how the Conservatives can make a loss out of a great win, and that is on the deficit. It has gone down from what was predicted because of the flourishing economy, and that is a great news story.

The other point is related to the fact that employment is at the highest in 10 years, as is growth, which was called “dismal”. Therefore, if the adjective for that is “dismal”, I wonder what the adjective for the Conservative record is.