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

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, one of the best parts of this budget implementation act is this whole issue of flexible work arrangements. We just have to recognize that we are in the 21st century. Many women are working, many families experience pain and difficulty together and need to find ways for their employers to give them the help they need. Certainly, my colleague raises a very good point, but as with everything, we have to start to introduce change. As we go forward at committee, I am sure there will be a variety of amendments that will be costed out. The flexible work arrangements are something moving us in a much more positive way throughout Canada.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Speaker, with regard the budget implementation act, I would like to talk about the climate around investment these days.

It is important to understand that while the government can create jobs, programs, and a number of different things, it is ultimately entrepreneurs who create the work, the employment, and the wealth in our country. I say that because one of the things the government fails to understand, or one of the challenges it has had over the last little while, is the uncertainty that small businesses face.

There is a number of issues and a number of things the Liberals are trying to do in stimulating the country, such as universal child benefit and other that obviously will make families better off. We do not have a problem with that. The challenge we have is the instability of what entrepreneurs face. Let me give an example.

While we were in government, we did a number of things to try to encourage entrepreneurs to start businesses. I used the acronym called “TIRE” because it was a multi-pronged approach. We lowered corporate taxes to one of the lowest in the G7, down to 25%. We can say okay, it was great that we lowered corporate taxes, but what did that do? That was just one thing in a number of things we did, but it was important to create certainty for entrepreneurs to flourish.

Let me talk about the acronym of TIRE and what it stands for. The “T” stands for taxes and trade. One of the things we did was lowered taxes for corporations because we wanted to increase investment in Canada and we wanted to create a favourable environment to encourage other crown corporations and individuals to invest here.

The second thing we did was trade. We worked on the CETA deal, which we pretty much got to the finish line. It was nice to see the Liberals complete it. However, we were there. We negotiated it over the four years we were in government.

The second one was TPP, another agreement we worked on and had actually signed it but were waiting for ratification on it. This is important because Canada has about 35 million people and they cannot possibly sell all their goods to each other. We are definitely a trading nation. These are important things. We count very heavily on the U.S. That number used to be 85% to 90%. I realize now it is down to 75%. However, we need to create other opportunities. This was one of the reasons why we worked on trade along with taxes.

The “I” in TIRE, is infrastructure, investments, and immigration reform. We worked on these things. We spent major amounts of money in infrastructure across the country, and we got it out in record time. The Liberal government has also promised infrastructure money, but we have not seen a whole lot in the first two years. There is always some concern with a half billion dollars going to the Asia Infrastructure Bank, but the budget officer has said that almost $2 billion have been unspent at this point in time.

The “R” stands for research and development, and red tape reduction. If we look at the R and D, the government continues to spend money on it and continues to commit money to it. These are good things, but sometimes it misses the mark. We have talked about superclusters being important. My challenge is that as a small business person, it is very hard to access those things. Most businesses in the country are small businesses. While there is probably nothing wrong with the concept of superclusters, the challenge is that money needs to go to entrepreneurs and small businesses.

Entrepreneurs tell us all the time that it is always difficult to raise capital. If we look at some of these things, this always seems to be the number one issue. When we look at places like San Francisco, silicon valley, Boston, Israel, and a number of other places around the world, there is great entrepreneurship. A lot of times Canadian companies have to go south of the border to raise money for second rounds, third rounds, VC rounds, and those kinds of things. These are some of the things with which we are challenged. When we look at R and D, absolutely important is the number of programs. The government has programs such as SR&ED a few others that are effective and helpful.

I sat on the red tape reduction committee. We travelled the country, and red tape was another thing that frustrated entrepreneurs to no end. We have to find ways to continue. One of the things we implemented was the one for one rule. When a new regulation was introduced, we would reduce a regulation.

One of the challenges is this. The federal government regulates a number of areas. However, then there are provincial and municipal jurisdictions and each of these add a layer and make it difficult for entrepreneurs to get started.

The last thing, the “E” in TIRE, is entrepreneurship and the economy. One of the things I always tell people when I talk to them about business is that there is a whole suite of things that we need to do in order to encourage entrepreneurship in this country. Right now, there are obviously a number of incubators and accelerators. Members are obviously familiar with Communitech in Waterloo, which does an amazing job. There are a number of other incubators and accelerators across this country. I always wonder if it would not make sense, as we move forward, to encourage colleges and universities to look at making that part of their mandate. I realize that is not always possible, but I think if we are going to teach entrepreneurship, if we are going to talk to people about starting businesses, then we also have to give them a place to actually help hone their craft.

Some of the things that are helpful for incubators are, obviously, that there is access to capital and money, that there are mentors, and that there is an environment where there is a chance to work and feed off what is going on with other individuals. As I visited a number of incubators in Silicon Valley, one of the things that was amazing was this whole issue of like-mindedness. People could come together, share their ideas, have access to capital, and all those other things.

However, one of the things we struggle with in this country is that we do not have a culture of entrepreneurship. I talk to students taking business programs all the time and ask them what they think they are going to do. They tell me that once they get their MBA, they want to work for a big company. Now, there is nothing wrong with working for a big company, but one of the challenges we have in this country is that we do not have enough people willing to start businesses and be entrepreneurial.

As I look at these things that we worked on as a government, I use TIRE, where the “T” is for taxes and trade; the “I” is for infrastructure, investments, and immigration reform, which is trying to help businesses bring in the people they need; the “R” is for R and D, and red tape reduction; and, of course, the “E” is for entrepreneurship and economy.

One of the things that has been a challenge with the latest implementation, or the thought process of taxes and taxation, has been the uncertainty for small businesses. I have literally had all kinds of phone calls coming into my office. People were saying that they were not happy and were not sure what they were going to do.

I co-hosted a round table here on Parliament Hill as the co-chair of the entrepreneur caucus with my colleagues. We had the CFIB and a number of individuals. We had a high-net-worth accountant, who represents a lot of money. He said that since this has happened, over $1 billion has gone south of the border. Now, we are never going to see a press release sent out on who was going to invest in Canada but will not now. Money is fluid, and it can move in different directions. Quite frankly, when there is uncertainty, it makes it a challenge.

I also want to talk about the unintended consequences of some of the proposed tax changes. Remember, in previous years, it took the Carter commission four years to look at tax changes and another six years to implement them, which is over a decade. However, this was done in less than 75 days in the middle of the summer.

Doctors are a segment of people who were singled out as not paying their fair share of taxes. I have an individual in my office who lives in my riding but has a practice in Welland. She is a dermatologist, and her husband is an orthopaedic surgeon. She feels totally vilified with what is going on here. She and her husband have over $400,000 in debt, with another $100,000 for her to set up her practice in Welland. She said that if things do not change that, in two years when her lease runs out, she will be moving south of the border. I am not saying that every doctor is leaving, but there are certainly individuals out there who do not feel like the hard work and time they put in is going to be rewarded.

As I look at some of the budget implementation act, I see large deficits, which are for a time when the economy is not doing that well. Right now, the economy has been doing relatively well. What happens if we continue to spend all of this money that is for a rainy day? Our growth is better than average, and maybe better than expected, but I believe that on the horizon we will see less than 2% growth, or 1% and change, over the next couple of years.

If we stack up some of things that are going on here, such as the uncertainty with the tax proposals, the fact remains that it is still hard for entrepreneurs to access money. When we look at taxing passive income, it makes it very discouraging for people trying to grow the economy, create jobs, and, quite frankly, trying to help Canada grow as a nation.

I would encourage my friends on the other side of the House to reconsider what they are looking at, where they are going with these tax changes, and the deficit, because there will be lasting and long-term results.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I thank the hon. member across the way for his intervention today, and for giving us the letters T-I-R-E to consider and to remember the points he has given. It always helps when in a presentation to have something to refer to.

My question is whether the TIRE was flat or not, and whether maybe we did not get economic growth with $150 billion in increased debt in the country. Our strategy of investing in the middle class seems to be getting the growth that the previous government did not get by giving tax breaks to the wealthy.

Could the member comment on the different strategies that are being used by the member's party and our party?

[Dean Allison, Conservative, Niagara West, ON]

Mr. Speaker, I can assure the members that the TIREs were full, we were running on all four TIREs, and everything was working well.

We can look at what happened with the great economic downturn in 2008. It was Canada that actually did better than any country in the G7. It was Canada that led the way in growth. While other countries had this huge fall, we continued to maintain.

We spent money. It was the opposition that said we needed to spend more. We spent what we felt was important at the time to get the economy back on track. I will just say that we want to be careful looking at this quarter. Things are well, but I believe there are huge troubles on the horizon. We have mortgage rates that are going to change in January. They are going to raise the benchmark by over 2% to qualify for first-time homebuyers or for homebuyers in general. That will mean that less than 75% of what homebuyers qualify for in 2017 is not going to be there.

There is a whole bunch of these small cuts that are happening. I would encourage the members to be cautious, because as we move forward into 2018 and 2019, I really believe there are storm clouds on the horizon.

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

Mr. Speaker, I would like to congratulate my Conservative colleague for his speech in the House on the budget implementation bill.

He talked a lot about business owners. Whenever I meet with small business owners back home, they often tell me about unfair credit card fees. Some businesses are paying extraordinary sums to credit card companies. Some small businesses are paying more than $200,000 per year.

I would like to know whether this is also an issue for small and medium-sized business owners in my colleague's riding.

Do they talk a lot about how the government has not done a thing to better regulate credit card fees?

[Dean Allison, Conservative, Niagara West, ON]

Mr. Speaker, one of the things that I pay attention to on a regular basis are the surveys that come out from CFIB.

The Canadian Federation of Independent Business, which has members all across this country, has a great pulse on what is going on in the world of small and medium-sized businesses. One of the things that continues to come up is credit card fees for CFIB.

What I would say to the member is that this is an issue that continues to come up, time and time again, as an issue of concern. It is one of the things that we looked at when we were in government, and one of the things that I believe needs still more work.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Kootenay—Columbia, Indigenous Affairs; the hon. member for Selkirk—Interlake—Eastman, National Defence; and the hon. member for Langley—Aldergrove, Taxation.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I am thankful for this debate in the House tonight, for the government bringing forward budget 2017, and now for Bill C-63. The government's actions are in line with and directly support the four initiatives of the Guelph and Wellington poverty elimination task force, by looking at the four areas of income inequality, affordable housing, food insecurity, and health inequities.

There is an old African proverb that states, “If you want to go fast, go alone. If you want to go far, go with others.” This government knows that working together with others, and other orders of government, is crucial. In fact, the whole-of-government approach is the way forward.

On the first point of income inequality, the goal of the Guelph and Wellington poverty elimination task force is that all members of the community have the income, resources, and opportunities to fully participate in the community. Of people living in poverty, 70% are currently working. According to Statistics Canada, Canada has one of the highest proportions of low-paid workers among similarly industrialized countries.

The government believes that the working income tax benefit can do much more to improve the financial security of low-income working Canadians. To this end, in the 2017 fall economic statement, the government is announcing its intention to further enhance the working income tax benefit by $500 million a year, starting in 2019. The maximum Canada pension plan retirement benefits for workers will also be increasing over time by 50%. The government has increased the guaranteed income supplement payments to seniors by up to $947 a year, which is going to help 900,000 low-income seniors, 70% of whom are women.

The Canada child benefit has helped to stimulate the economy. Our economy is growing at 3.7%, leading the G7, and we have created more than 500,000 jobs since it was introduced. There are 12,000 families or 24,000 kids in my riding who receive a total of $8 million per month tax-free. This is an enormous boost to the Guelph economy. The budget implementation act will now index these funds two years ahead of schedule due to the strong growth we have in our economy.

Economic opportunity is the best way to address income inequality. This legislation will take the next steps for our innovation and skills plan, an agenda that focuses on people and addresses the changing nature of the economy to ensure that it works for all Canadians. Bill C-63 will enact several key parts of our plan, including $600 million in new financing for clean technology firms, and $400 million to put in place the venture capital catalyst initiative.

The second point that the poverty elimination task force is looking at is affordable housing, with the goal that everyone in Guelph and Wellington can find and maintain an appropriate, safe, and affordable place to call home. The government will invest more than $11.2 billion over 11 years through the national housing strategy to provide low-income Canadians with improved access to adequate and affordable housing. This is the most significant investment in housing that has ever been made in the history of Canada.

Through the rental construction financing initiative, the government will also offer more than $2.5 billion over the next four years in low-cost loans to support the construction of new rental housing to help increase the supply of rental housing. Budget 2017 also proposes a total investment of $2.1 billion over the next 11 years to expand and extend funding for the homelessness partnering strategy beyond 2018-19. Our national housing strategy will be announced over the next few weeks. We will be meeting with members of the Guelph and Wellington poverty elimination task force to discuss implications for Guelph and how we can work together.

The third point is food insecurity. Everyone has to have access to affordable and healthy food in a dignified manner. We have a shared objective federally. In fact, the agriculture committee that I sit on has repeatedly heard from witnesses on the food policy, addressing the nutritional food that Canada needs to focus on, and working with partners like food banks to reduce food waste and to improve food distribution within our communities.

The Canada child benefit has been mentioned a lot today. It has helped lift 300,000 children out of poverty. Thanks to this benefit, by the end of this year, it is estimated that child poverty will be reduced by 40% from where it was in 2013.

For a single parent with two children and $35,000 of income, the acceleration of the Canada child benefit will contribute $560 toward the increasing cost of feeding children. This increase means more nutritious food for lower-income children and families, allowing for a more engaged and active student population in our schools.

To address food insecurity within indigenous communities, they need employment opportunities. Budget 2017 invests $50 million in the aboriginal skills and employment training strategy, providing the knowledge indigenous peoples need to sustain themselves and build their communities.

Finally, on health inequities, everyone in Guelph and Wellington has to have access to affordable health services. Drug prices in Canada are among the highest in the world. Patented drug prices in Canada are 17% to 37% higher than those in France, Italy, the U.K., Australia, Spain, the Netherlands, and New Zealand. Canada's generic drug prices are also comparatively high.

We have heard from Canadians about the need for improved access to prescription medications and lower drug prices. Through budget 2017, we are investing over $140 million over five years to help improve access to pharmaceuticals and support innovations within the health care system, but we know there is a lot more to do.

People may be wondering how these two policies, federal and municipal, are so well aligned and how this can happen. In truth, if a government believes in the whole-of-government approach and serving its people, there can be no other way. Our government understands the needs of our communities, both large and small, from coast to coast to coast, and is prepared to offer communities what they need to realize their goals.

The results of the past two years justify the trust Canadians placed in this government in the 2015 election. We promised we would work together, and we are. I am confident that the measures in budget 2017 and the budget implementation act will continue this positive trend, build our communities, help the most vulnerable, and have a successful economy together.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, something I have heard is quite concerning. Some telephone calls have come into my office. As members know, I am focused on the Indigenous and Northern Affairs file. The calls are from people who are expressing significant concern. They are asking how the government can spend half a billion dollars on infrastructure in Asia, through the Asian Infrastructure Investment Bank, when we have so many desperate needs at home. They ask why the government is putting heated trailers at the border for people when people in the north are freezing.

When the member says that the government is taking care of vulnerable people, I would like him to provide an answer on how spending half a billion dollars to provide infrastructure in Asia or backstopping investors in Asia is helping people in the north, as its communications adviser suggested.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, when we participate in international activities, such as the infrastructure bank, and we are setting up an infrastructure bank within Canada to also attract international investment, it makes us participate in the investment of world development, both in Canada and abroad. We will be looking at significant investments in infrastructure that Canadians will not be paying for by themselves. They will pay for it in partnership with other countries, similar to what we will do in China.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, recently in my riding, I had the wonderful opportunity to meet with several doctors. As the representative of North Island—Powell River, a huge challenge for us is attracting health care professionals to the region. The doctors talked about their concerns on the impacts of the small business tax to these types of communities. One thing that is really important for the House and the Prime Minister to hear is how hurt these doctors were by the comments the Prime Minister made about rich doctors and how much of a ramification that had on their offices. People have gone into their offices to chastise them for this.

What I notice is missing from the bill has nothing to do with tax fairness across the board. I see a focus on small business and not at the significant tax loopholes that the very wealthy use every day to not pay their fair share. What are the member's thoughts on this specific issue and how those impacts are meaningful in communities like I represent?

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, the member's question looks at how we work as a country together. Because physicians serve our communities in so many ways and they give so much to our communities, how do we ensure our communities are there for them when they need them as well?

When we look at tax fairness and tax inequities in our system, we will be helping their patients, developing communities, increasing the economy, and helping them to continue to contribute to Canada, which they do in such a great way.

[Matt DeCourcey, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, the people in Guelph know how diligently my colleague works on the innovation file. I have had the pleasure of working with him on a number of initiatives. As the chair of a subcommittee on innovation through our Atlantic growth strategy, I have discovered a lot of opportunities available to Atlantic Canadians. Could my hon. colleague talk about how our focus on innovation is helping companies, entrepreneurs, and people in his community thrive in this growing economy?

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I almost never have a conversation without innovation coming up in some way, so I appreciate the member coming at this from this angle. Innovation in Guelph and innovation elsewhere includes social innovation. Through the investments our government is making, we see a social innovation that is contributing to our economy, to our environment, and developing social benefits for all Canadians. I thank the hon. member for his focus on innovation. Social innovation is a very important part of our strategy going forward.

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

Mr. Speaker, it is an honour to rise today to speak to Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, which I will strongly oppose.

I would like to talk about Sunday's municipal elections in Quebec. There are 37 municipalities in the riding I represent, and it spans 3,200 kilometres. I would like to congratulate all of the candidates who ran in the municipal elections and all those who won. I care about having a good working relationship with other representatives. I look forward to working with the newly elected officials. I would also like to celebrate the fact that more women were elected mayor. I am very proud to say that we now have more women mayors back home. This is good news.

In my speech today, I want to talk about the issues that are not part of the Liberal government's bill. For example, the government is not doing anything about credit card fees, and more recently, it refused to work with us, the provinces, and other stakeholders to create a universal pharmacare program. I also want to talk about how the government is refusing to remedy tax unfairness by facilitating the intergenerational transfer of family farms. The last issue I will touch on is employment insurance.

I will start with credit card fees, which cost Canadian merchants tens of thousands of dollars. It is their second-largest expense after salaries. Small retailers make up more than 50% of the Canadian economy. For example, a Saint-Boniface service station called Alimentation Lemoyne & Auger in my riding pays $30,000 per year in credit card transaction fees. That is a lot of money. Canadian small businesses pay the highest credit card transaction fees in the world. The Liberal government should do like other countries, such as Australia and EU countries, which have capped fees at 0.5% or less.

This is a measure that the Liberal government should have introduced for small business owners. We really would have liked to see some progress. We would have liked for the government to stand up for small business owners in Quebec and elsewhere in Canada. There is supermarket owner in Laval who spends nearly $200,000 on credit card fees. The government needs to act now to better regulate those fees.

Last month, the NDP used an opposition day to raise a debate in the House of Commons on the need to adopt a universal pharmacare program. In the riding that I represent, the population is aging, so I care about health-related issues. We had a debate in the House of Commons, but unfortunately, the Liberal government decided to vote against our motion.

That day, representatives of the Centre Avec des Elles in Saint-Gabriel-de-Brandon and the Centre des femmes l'Héritage in Louiseville came to attend question period. They also got to meet several MPs. These people from my riding, who came to the House the day that we moved an opposition motion on the need for a universal pharmacare program, could not believe that the government was going to vote against such a measure, when, unfortunately, the cost of prescription drugs is rising every year.

The people I represent did not think it was the right approach to lowering the cost of drugs. They were really frustrated to see the Liberal government's inaction and unwillingness to act. We would have really liked to see something in the budget for this. However, there is nothing yet again. There is no action on the part of the Liberal government.

I had have the honour of being the agriculture and agrifood critic since 2015 after being the deputy critic from 2012 to 2015. I have been a member of the Standing Committee on Agriculture and Agri-Food since 2012. I am the longest serving member of the committee. Anything that has to do with the transfer of farms and fishing businesses is really important. We know that Canada's population is aging and that succession and planning is not going well.

My colleague from Rimouski-Neigette—Témiscouata—Les Basques introduced a bill to address a fiscal injustice in the transfer of farms. Unfortunately, that bill was defeated in the House of Commons before it could be referred to a committee. We think it is disgraceful that the government is doing nothing to help the next generation of farmers in Canada.

I would also like to raise the matter of employment insurance. I represent a rural riding where many people work in seasonal industries. These people depend on EI, but they do not always have access to it, sadly. The budget contained no changes or assistance to give workers access to employment insurance. Currently, 15,000 Canadians are having to contend with the spring gap. This needs to be discussed, because during the campaign, the Liberal Party said it would fix the problem by improving the system and making it so that these people have access to EI.

There have been some minor changes, but the Liberal government has not carried out a comprehensive reform to improve access to employment insurance for workers in the agriculture, fisheries, forestry, and tourism sectors. These sectors are incredibly important to the economy, and we need to make sure we support the people working in them.

The unemployed workers' movement in Quebec claims that the Liberal government has not reformed the employment insurance system. Forty-four percent of Canadians will not be eligible for employment insurance. That is a lot of people, a lot of Canadians and Quebeckers who need reform and change so they can access EI when they need it. This is really important to them.

We really hoped to see some progress on reducing inequality. We know that a special committee was formed to examine pay equity. A report entitled “It's Time to Act” was even published. The government committed to taking action, but not today, tomorrow, or even in a year. It is going to introduce a bill on pay equity to ensure that women and men earn equal pay for work of equal value. It is going to take until the end of 2018. I am trying to understand why the government is dragging its feet on introducing a bill that would truly further equality.

I think everyone agrees that there is still work to be done. It is 2017. The government claims to be feminist, but it needs to walk the talk. This bill needs to pass quickly. We are deeply disappointed to see so many things missing from this budget, especially since the government is always saying that it can do better.

The government should have done better with this legislation.