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

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I will continue in the same vein as my Conservative colleagues.

I was not so much surprised as offended when I heard that the Conflict of Interest and Ethics Commissioner had fined the Minister of Finance for breaking the rules by forgetting to declare his villa in France, which he hid in a company. Then again, who among us has not forgotten a villa in France, Spain, or Morocco at some point? Apparently that is the kind of thing that can happen to someone like the Minister of Finance.

He forgot, and he got his knuckles rapped for it. I want to make sure everyone at home understands the penalty this poor man is being forced to pay. He has to pay $200. This is the man who just signed a cheque for $5 million in an attempt to extricate himself from a scandal involving his shares in Morneau Shepell, which benefited from a bill that he himself introduced. No doubt that was a hard lesson for the Minister of Finance to learn from the Conflict of Interest and Ethics Commissioner. Unfortunately, all that did was feed the public's cynicism toward politicians, the Liberal government, and the Minister of Finance. Those people are completely out of touch with reality.

I want to be sure that I am understood in both official languages. We just learned this week that the Minister of Finance was fined because he forgot to officially declare that he possessed a villa in beautiful Provence, France. That is something that probably happens to a lot of people in Canada: “Oh, yes, the villa; sorry about that. I just forgot.”

He got caught, and then received a slap on the hand, a big one. It was a hard lesson for him, I guess. It was $200 for contravening the code of ethics. We are talking about the same minister who just recently said he would write a $5 million cheque to try to get out of a scandal. It was a scandal because the minister tabled legislation, Bill C-27, that directly profits his own company. He made millions of dollars on that. Then, because he got caught, he said, “Okay, I'm a rich man. I can fix that. I'm going to write a cheque for $5 million.” Now, the minister has received a fine of $200. That poor man, it must be a really hard week for him.

I am making a joke about that, but seriously, it is only increasing the cynicism of this country's citizens. During the last campaign, the Liberals said they wanted to reinstate trust in our democratic institutions. They wanted people to stop being cynical about the political class.

Since the Liberals were elected, they have been doing the opposite. They are breaking promises. They are tabling legislation that profits themselves and their friends on Bay Street, the elite of this country. As NDP members, we think this is completely wrong. They are going in the wrong direction. We have to point that out, and say it loudly and clearly.

[Some hon. members]

Oh, oh!

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

I thank the member from Drummond for his support, which has allowed me to have a drink of water.

Today, we must debate the budget implementation bill. There are many things we could talk about. Let me go back to the last election. The Liberals told us that interest rates were low and that it was the right time to borrow money and to run deficits in order to reinvest in our infrastructure. That might make sense. It is the mandate given to them by Canadians.

However, what we are learning is that instead of running a small deficit to build infrastructure, they ran up a large deficit, and we still have no infrastructure.

The deficit is higher than projected, and not because the government spent more money on infrastructure. In fact, it spent less than anticipated. Shovels are not in the ground, projects are not moving forward, and some projects have not even been approved. The money is not making its way to the towns and villages of our communities.

This week, The Canadian Press reported that $2 billion in infrastructure spending had been delayed. However, this is money that should have been invested in our communities this year to help build new infrastructure. The Liberals just keep putting it off.

What is the reason for this deficit if not infrastructure spending? After all, this was the idea flogged to Canadians in the last election.

As the finance critic, I am very concerned about this situation. The government is not investing in our communities as it said it would, and the deficit is much higher than projected.

The economic lever to grow the economy is just not there. Not only are the Liberals breaking their promises, but they are also increasing the public debt much more quickly than they had promised. They are doing exactly the opposite of what they had promised. I have to wonder where they are headed and whether Canada is going to hit a wall at some point. Instead of investing in our communities and in infrastructure, the Liberals are doing nothing and yet still adding significantly to the deficit.

I want to be clear about that.

In the last election the Liberals' platform said that, because interest rates are low, this is the time to get some loans, have a small deficit, and spend money on infrastructure because we have a deficit in infrastructure. That was true then and is still true. That was their logic.

That spending on infrastructure should have helped to increase growth in our country, but what we are seeing right now is that deficits are bigger than expected and there is no spending on infrastructure. Projects are not there. Money is not being spent in our cities, villages, and provinces. We do not know exactly why the money is not being spent but the deficits are higher. Why? What is the logic behind that? It is the complete opposite of what the Liberals said they would do in the last federal campaign. As the finance critic, I am worried about that, because it is not sustainable.

The Liberals are not doing what we need in our communities to help families: create more public transit; build bridges, roads, arenas, and pools, and everything that makes the lives of our citizens easier; increase the possibility of business and trade and help people to get start-ups and have the numeric infrastructure and Internet connections. High speed Internet in some regions is still a big problem. It is not there.

We are worried about the way the Liberals are not doing what they promised to do. They are not spending on infrastructure and they are not creating growth in our economy.

This may surprise the House, but I am also worried about the fact that, in his last economic update, the finance minister's document said that the public debt charges that they were expecting, the interest we are paying on our debt, will increase from $24.2 billion for 2017-18 to $32.8 billion 2022-23. In five years, there will be an increase of $8 billion in the interest on public debt charges. That is a lot of money, and it will probably get worse.

Those numbers, the provision or the prediction, are based on a really low interest rate. The actual interest rate, or the provision, is about a 25-point increase per year or less. However, all the experts say that the interest rates will go higher than that, so those numbers are wrong. The economic situation is that the Bank of Canada will be in a position to increase the basic interest rate much more. Therefore, those figures will get worse, and we will pay much more than that. People who are listening to this should look at those numbers. It is not what experts say will happen.

I want to say it again. It may surprise the House to hear that the NDP finance critic is worried about this, but in the economic update delivered last week, we learned that the projected interest charges are basically unrealistic. Between 2017 and 2018, we will be paying $24.2 billion in interest on the debt. That is a lot of money. In 2022-23, so five years later, we will be paying an estimated $32.8 billion in interest on the debt. That is an increase of over $8 billion in five years in interest alone. That probably will not happen; it could be even worse.

Those forecasts are based on current interest rates and very small yearly increases in interest rates for the next few years. Everyone agrees that, considering the current economic situation, the Bank of Canada will not be able to keep interest rates as low as they are at the moment. Interest rates will likely go up by over 25 basis points per year. The figures presented are unrealistic, and after the next federal election, we will be worse off than the Liberals are claiming today.

With regard to last week's economic update, I would like to take this opportunity to draw the attention of the House to something that I find very worrisome as a progressive and as someone who believes in public services. It has to do with what is known as direct program spending. The government has allocated $139.1 billion for direct program spending for 2017-18, $140.1 billion for the following year, and then $140.2 billion for the next. The Liberals have basically frozen this spending. They are increasing direct program spending by only $1 billion from 2017-18 to 2018-19. The following year, in 2019-20, that amount will go up by only $100 million, which is next to nothing.

With federal employees' labour contracts and collective agreements, which the government must obviously respect, and with inflation, which means that everything will cost more, we know full well that a spending freeze means cuts. The government cannot give the federal employees who provide services a 1.5% raise while failing to increase direct program spending. That will mean austerity measures and cuts to services for Canadians. That is not what the Liberals were elected for. It does not bode well for the future. Cuts and austerity measures may be imposed on public services, which are already barely meeting their obligations and the needs of Canadians.

The Liberal government tries to come across as progressive and Keynesian, but it is nothing but a facade, and the cracks will start to show in the next few years as the Liberals face a difficult choice: either reduce services, or run an even higher deficit than projected.

I just wanted to draw people's attention to this, because it is something we will have to keep a close eye on.

I want to say this in English as well, in order to bring it to the attention of the people who are listening. In the economic update last week, the direct program expenses outlook for 2017-18 were $139.1 billion. The following year they would be $140.1 billion. The year after that they would be $140.2 billion. It is almost a freeze in the direct spending in program expenses of the Liberal government.

We all know that we have to respect the working contracts of civil servants, people who work for the federal government. Those contracts, that collective bargaining, includes increased wages of at least 1.5%. We also have normal inflation. With the increase of wages and inflation, those numbers mean the Liberal government will have to impose austerity. It will have to impose cuts in public services because it is not sustainable. We cannot increase the wages of public servants, but we all agree it is normal to do. We have to respect those contracts, but those numbers worry the NDP. We do not want a policy of austerity. Even the International Monetary Fund's recent study said that austerity was not working. This is not something we want, not something we propose, and this is not something, a progressive party movement, we want to see from the federal government.

After these warnings, the only thing left to say about the budget implementation bill is that there is not much to it, and what there is is extremely disappointing. It offers no plan for investing in affordable social housing. It does not restore the eco-energy retrofit program as promised. It does not propose a national daycare program, the program that families in Quebec and across Canada would probably find the most useful.

In the NDP's opinion, the budget implementation bill is more important for what it does not address than what it does. It contains no serious measures against tax evasion. The tax loopholes used by CEOs are still completely legal and permitted. There is nothing in the bill against tax havens, which cost us anywhere from $5 billion to $8 billion a year.

Let us keep in mind that interest on the debt could rise by $8 billion over the next five years. However, we could save $8 billion a year if we made the slightest effort to stop doing business with tax havens or renegotiated all of our tax treaties with them.

One strange thing about Bill C-63 is the fact that it authorizes the Minister of Finance to invest $480 million in the Asian Infrastructure Investment Bank. That is right, the Government of Canada will buy $480 million worth of shares in an infrastructure bank to build infrastructure in Asia. I was under the impression the Liberals wanted to build infrastructure in Canada, but instead of coming up with cash to build what we need here, they are authorizing the Minister of Finance to invest $480 million over there. The Liberal government could end up building more infrastructure in Asia than here at home. How absurd.

We do not understand why the government wants to get involved in the Asian infrastructure bank. What is it hoping to get out of this? Why is it investing money over there? What kind of return will there be? As progressives, we have other concerns. Will this bank promote infrastructure privatization in Asia? Will it respect environmental standards and workers' rights?

Speaking of workers, the Liberals are going to be extremely pleased with themselves for giving leave to people who are victims of family violence. That is one of the measures in Bill C-63. However, that is unpaid leave. As we all know, victims of family violence tend not to be independently wealthy and are, in many cases, dependent on their violent partner.

Instead of saying that it will give unpaid leave to victims of family violence, the government should say that it is doing nothing because that does not exist. The Liberal government is trying to pull the wool over our eyes yet again.

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

Mr. Speaker, I always find it interesting when a New Democrat talks about balancing budgets and has concerns with deficits and debt. We all know the commitment the former leader of the New Democratic Party made, going into the last election, which was a guarantee to balance the budget. If we listen to the New Democrats talk about it, there is no possible way they could have balanced the budget. Now, with their new leader, Jagmeet, perhaps the member could tell us the current NDP policy on balanced budgets. Being the finance critic, perhaps he could enlighten Canadians.

I want to emphasize something, and it can be found in the fall statement, “Progress for the Middle Class”. It makes it very clear on page 3, It says that when it comes to the G7 real GDP growth over the past year, Canada has outperformed our peers, whether the United States, Germany, France, Japan, the United Kingdom or Italy. We are just under 4%. The United States, which is the closest to us, is at 2.2%. Over 400,000 jobs have been created in Canada.

The government's plan of investing in our middle class, giving tax breaks, and increasing the Canada child benefit and the GIS for our children and seniors is working. We are seeing more employment. We are seeing a much more active economy compared to our peers. Could the member explain why the New Democrats do not support these wonderful initiatives?

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I thank my tireless colleague for the question. He has an excellent attendance record in the House.

Unfortunately, inequality is reaching an all-time high in Canada. Over the past 30 years, Canadian workers have helped grow our economy by more than 50%. Productivity and wealth creation have gone up, but workers' income has stagnated. Their purchasing power has not gone up, but their debt has.

We live in a country where inequality is growing faster than it is in the United States. We live in a country where the CEOs of the 100 largest companies in Canada earn the equivalent of the average Canadian's annual salary by the morning of January 2. I hope that those CEOs were not too hung over from new year's eve and were able to wake up and realize how privileged they are.

We have a Liberal government that is doing nothing to address this problem. On the contrary, they are keeping tax loopholes open for CEOs, which is costing us $800 million a year. They are still there. Despite their election promise, the government is doing nothing about this. The 100 wealthiest Canadians have more than the 10 million least fortunate Canadians. This is nothing to brag about.

Unfortunately, all too often, any jobs that are created are low-paying jobs, with no benefits or retirement plan. When these jobs do have retirement plans, the Liberal government attacks them, rather than protecting them. If the Liberal government really cared about workers, it would change the Bankruptcy and Insolvency Act to make sure that situations like the one with Sears never happen again, so that the pension funds of workers who gave 25, 30, or 35 years of their lives to a company cannot be stolen by a major corporation like Sears. That is the result of the Liberals' inaction.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, I once again commend my colleague from Rosemont—La Petite-Patrie for his work.

The bill implements the budgetary measures of this government, which, as we know, plans to run a deficit that is twice as high as what it promised. The question that I want to ask my colleague has to do with the fact that the government is attacking the most vulnerable members of our society.

Since taking office, the Liberals have cut the tax credits that we created for families, including the arts and fitness tax credits. The Liberal government also did away with the public transit tax credit. Who would have thought? We, the Conservatives, want to help people who use public transit, but the Liberals did away with that tax credit.

On top of all that, we recently learned that the Liberal government, which has an insatiable appetite for spending taxpayers' money, wants to make it harder for those who are ill to access tax credits. This affects people with diabetes and those with mental illnesses.

How does the member for Rosemont—La Petite-Patrie feel about the Liberal government's direct attacks on the most vulnerable members of our society?

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I thank my colleague from Louis-Saint-Laurent for his question. My answer is simple. I am absolutely outraged that a finance minister can make money off of bills introduced in the House. I am outraged that he is trying to get out of a scandal by writing a big, fat $5 million cheque. I am outraged that he got nothing but a slap on the wrist from the Conflict of Interest and Ethics Commissioner in the form of a $200 fine. Ouch, that must hurt.

At the same time, my colleague is quite right. The government is going after people who are suffering. I do not agree with all the tax credits the Conservative Party brought in, but yes, there were a few good ones.

My wife has diabetes. Luckily, she has pretty good insurance coverage and does not need the tax credit. However, I do see what it takes to manage it in her day-to-day life. For people with low incomes who do not have insurance, that tax credit was absolutely crucial. Since last May, 80% of people who suffer from type 1 diabetes and apply for the tax credit are being denied. Prior to that, 80% of those tax credit claims were approved.

The Liberal government is claiming that nothing has happened, that there have been no changes in the directives or the regulations. In that case, why is the government now rejecting all applications for the tax credit?

Every year, I organize a help desk in my constituency office to help people prepare their income tax returns. We see people with very low incomes, many of whom receive social assistance or earn minimum wage. I live in Montreal, which has public transit. The only tax credit those individuals could apply for was the public transit tax credit. They might have gotten $150 back at the end of the year, and the Liberal government abolished it. I do not understand that measure at all.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, I thank my friend for his passionate speech. It is always an honour to hear him talk about these important issues.

I would like to ask my colleague several questions. We know that the Liberal government has always talked very proudly about how it is helping the middle class and those striving to be a part of it. It is giving a tax break to people making between $45,000 and $200,000.

Does my friend know how much of a tax break people making less than $45,000 got? What if they do not have any children? What about one-income families, a married person with no children who is making $80,000? What about a family with two income earners making $40,000 each? How much of a tax break would they get? Would they get the same as a single person making $80,000?

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I thank my colleague for his question and for his efforts to help workers and retirees. His fight represents the values that are essential to progressives and, of course, our entire New Democratic movement.

His question is entirely legitimate. Under pretext of helping the middle class, the Liberals have attacked them instead, by reducing their purchasing power, while maintaining measures that benefit our society's wealthiest and most privileged. Let us talk about their famous low-tax plan for the middle class. My colleague's question is entirely legitimate. Let us keep in mind that those earning less than $45,000 a year got zero. They got nothing at all.

Does the Liberals' definition of middle class only include those who earn $45,000 and more?

I would like to hear their views on the honest workers in our riding who earn $30,000, $32,000, $38,000 or even $42,000 a year and get absolutely nothing. People without children have been completely abandoned by the Liberal party. Yes, we need to help families, I have a family, I like families, but there are people who decide not to have children. If they do not have any children and earn less than $45,000 a year, they get nothing, zero, nada.

I will come back to my Liberal colleague's questions about balancing budgets. The NPD takes a balanced view. We consider both the expense column and the revenue column. In the revenue column, there are many things that could be done. We could crack down on tax havens and tax evasion, stop subsidies to oil companies, and raise taxes on big corporations like banks, which have enjoyed years of handouts from successive federal governments. That would allow us to keep offering robust public services and social programs.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Mr. Speaker, before I begin, I would like to inform the House that I will be splitting my time with the member for Sackville—Preston—Chezzetcook.

I am happy to speak today about our government's budget implementation bill, which is an important step in providing opportunities for Canadians and strengthening our economy. It provides a legislative framework to implement key measures from budget 2017.

Just over a week ago, our government provided its fall economic statement. It shows that our plan to grow the economy is working. The economy has created over 472,000 new jobs since late 2015, and we have seen the unemployment rate drop from 7.2% at the beginning of 2016 to 6.2% in September 2017, the lowest rate since 2008, or in almost 10 years.

I have talked with many young people in my community on their concerns about the youth unemployment rate. While it remains higher than the national average, is it as its lowest rate on record at 10.3%. While I would like to see us keep beating that record and reducing it further, I am happy to see that we have made such improvements.

Budget 2017 is the next step of our government's plan. Our plan is to make smart investments. Like many of my colleagues, I have heard from constituents that they want to see our government invest in the future in smart ways to create jobs, grow our economy, and provide more opportunities.

Budget 2017, which follows in the footsteps of budget 2016, offers immediate help to those who need it the most. In my community, at my poverty reduction strategy consultation, in my discussions with the Sisters of St. Joseph, and at the rainy day multi-faith walk along Danforth Avenue in support of the Chew On This campaign of Dignity for All, along with the Danforth Jewish Circle, Eastminster United Church, and Glen Rhodes from that church, the Madinah Masjid Mosque, and the Neighbourhood Unitarian Universalist Congregation, I heard about the need to address child poverty.

In Toronto, the child poverty rate was 27% in 2016. The Canada child benefit is one direct means our government is using to address this issue by directing it at the families who need it the most. It is non-stigmatizing, portable, and progressive, which means that those people who need it the most will receive a larger benefit. Also, it is non-taxable, and so the amount people receive is what they will get to keep.

I heard some anti-poverty advocates express concern that this program was not indexed. As a result, every year, its assessed value against the cost of living has gone down. In fact, this was raised by Canada Without Poverty in its presentation to the finance committee's pre-budget consultations. The good news is that its advocacy was heard. As of this coming summer, the Canada child benefit will be indexed. This will be an important step in removing child poverty across our country.

On Monday of this week, I had an opportunity to speak at a conference organized by Food Banks Canada. I was able to thank its representatives for their advocacy and work in putting together the annual HungerCount report, which provides important data and insights into food insecurity across Canada. Last year's report recommended an increase in the working income tax benefit, as have the reports and plans of action of Dignity for All.

As part of our government's fall economic statement, we announced that the working income tax benefit would be increased. That tax benefit helps to offset the financial barriers faced by those joining or rejoining the workforce by supplementing the earnings of low-income workers. Starting in 2019, this benefit will be increased by an additional $500 million annually.

Our government's fall economic statement showed how much the economy has grown, with hundreds of thousands of new jobs being created and the lowest youth unemployment rate on record. It included important anti-poverty measures through the indexation of the Canada child benefit and an increase to the working income tax benefit.

All of this good news is why I am happy to speak to our continued work to grow the economy and help provide opportunities to Canadians through the budget implementation act, Bill C-63.

I would like to focus on division 8 of the budget implementation act, which makes changes to the Canada Labour Code that would allow federal employees some greater flexibility in recognition of the family responsibilities that many of them must balance with their work.

My two children are 19 months apart. As any parent knows, particularly a parent of two children who are close in age, the early years of balancing work with family responsibilities can be very chaotic. In my own experience, I was lucky enough to be able to negotiate with my employer some flexibility in my workplace. In my situation, that made all the difference, allowing me to be more efficient at my work while managing my very busy home. Given my experience and having seen how flexibility can work, I am pleased to see flexible work arrangements added to the Canada Labour Code. A federal employee will now have the right to request a flexible work arrangement. The employer's response now has to be based on prescribed reasons for the decision, and there can be no penalty against the employee for having asked for this opportunity. This will remove the fear that some employees might have about the negative impact of making such a request. It is a step forward in recognizing the needs of employees, which can change over time. I should add that this allowance is not just for family responsibilities, but also for federal employees to seek flexible work arrangements based on whatever their circumstances may be. They just must set them out clearly according to certain rules set out in the proposed changes to the Canada Labour Code.

An issue that is important to many federal employees as parents or as carers for elderly family members is how to attend needed doctors' appointments of their family members. I know from my own experience that I have received my share of telephone calls from my day care to tell me that my child was sick and that I needed to leave work to pick the child up. That can be very difficult to manage against my work obligations. Therefore, I can see the need for what is another major change to the Canada Labour Code, the granting of up to three days of leave every calendar year for employees to carry out their responsibilities related to health care or the care of any of their family members. This will provide some extra peace of mind and assistance to federal employees. Because this comes up as we head into parent-teacher interview season, I should add that the three days of leave also applies to employees' responsibilities related to the education of any of their family members who are less than 18 years of age. That can help them attend parent-teacher interviews or to meet other school-related needs.

This year our government announced Canada's first gender-based violence strategy. I am happy to see that, as part of this budget implementation act, it takes into account family violence by making amendments to allow leave for any employee who is a victim of family violence, or is the parent of a child who is a victim of family violence, for up to 10 days. The leave is to enable employees, in respect of such violence, to the following: (a) seek medical attention for themselves or their child in respect of a physical or psychological injury or disability; (b) to obtain services from an organization that provides services to victims of family violence; (c) to obtain psychological or other professional counselling; (d) to relocate temporarily or permanently; or (e) to seek legal or law enforcement assistance, or to prepare for or participate in any civil or criminal legal proceeding. While my wish is that this will become an unused provision as a result of our strategies to eliminate family violence, it gives me quite a bit of peace of mind to see that these changes can provide extra support to survivors of family violence.

People in Toronto—Danforth have reached out to me to ask our government to take the necessary steps to eliminate poverty. The announcements forming part of the fall economic statement that will result in the indexation of the Canada child benefit and an increase to the working income tax benefit are two tangible and important means to reduce poverty. There is much more work being done to address poverty, including our national housing strategy, which will be released shortly; our government's poverty reduction strategy, which is taking into account the feedback that was received through consultations; and the national food policy, which I eagerly await.

I am pleased to support the budget implementation act, which would provide more opportunities to Canadians and would grow our economy. The changes to the Canada Labour Code would bring some of these long-needed changes to bring flexibility into the workplace.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I listened carefully to the member's speech on the second part of the budget implementation act.

I know that the members on that side of the House like to talk about how high the employment numbers are. Statistics Canada does not agree with their findings. I have two StatsCan tables: composition of employment gains and contribution to decreasing unemployment rates. StatsCan shows that participation rates since the current government was elected and brought into power have gone down every single year. It accounts for two-thirds of the decrease in the unemployment rate, so it is not that so many new jobs are being created, because as the population grows they have to create a certain number of jobs every single month. What is actually happening is a lot of people are simply dropping out of the workforce and therefore the unemployment rate is going down. Just for this year, if we look at the job creation numbers we see that 11 out of every 12 jobs were in the public sector and one out of every 12 were in the private sector. How can this be sustainable?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Mr. Speaker, what we see is that as a government we are investing in new technologies, in clean technologies, and we are creating jobs for the future and that is what we are seeing on the ground. In a city like Toronto I am so pleased to have seen that, just yesterday I believe it was, we were declared a UNESCO media arts significant location for our work that we are doing in new technologies and in getting our stories told in new technologies. That is where we are creating so many jobs as well as across the economy.

Our numbers were very clearly set out in our fall economic update. I believe the number in there was 472,300 jobs. These are good jobs. We are getting people back to work.

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

Mr. Speaker, I am honoured to sit with the member for Toronto—Danforth on the all-party cycling caucus. She joins me in understanding that we have soaring health care costs, soaring greenhouse gas emissions that we have to deal with, and infrastructure costs.

We have talked about cycling as being a part of the solution. The Minister of Environment and Climate Change has acknowledged that we need a plan like other countries such as Norway, Sweden, and Germany. They have accelerated people riding bikes and lowering their impact. They have set clear targets so that they can lower emissions. This has been supported by the Canadian Association of Physicians for the Environment, by Canada Bikes, and even by the member's own city. The City of Toronto endorsed my bill, Bill C-312, for the call for a national cycling strategy.

Does the member support a national cycling strategy? If so, will the government move forward with supporting my bill and move forward so that we can take on the greatest challenge of our time and that is lowering our impact on the environment and of course at the same time lowering our health care and infrastructure costs?

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Mr. Speaker, my friend across the way is speaking to an issue that is close to my heart. I am an avid cyclist. I cycle around as my main mode of transportation in my community and around the city. I absolutely believe that it is an important part of building out how we can get people moving, make cities safer, and help the environment. I absolutely do support any infrastructure that works toward promoting cycling. I was very happy to see that in fact in our investments in the City of Toronto, the federal investments that went to public transit also went to support cycling infrastructure. The investments created new bike-share stations and bike parking stations at subway stations, and also went to some further pathways and trails that had been requested by the city. These are all tangible ways that we make it easier for people to get around our communities on bicycles.

I absolutely always support 8 80 Cities, ways for people from eight to the age of 80 and more on either side to get around our cities safely. I absolutely support cycling as a strategy.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Mr. Speaker, the Liberal government is trying to take credit for the increased job creation in Canada. However, the truth of the matter is that the one method it said was going to be very effective was its infrastructure program. We know that the parliamentary budget officer confirmed in August the Liberals are failing to get the funding for important infrastructure out the door. Infrastructure Canada's grants and contributions to provinces for infrastructure projects are essentially flat compared to last year. In my riding, people ask me all the time where that money is and when it is going to stimulate the economy the way the government said. The economy is actually being stimulated right now from the efforts of small businesses in Canada.