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

[Pat Finnigan, Liberal, Miramichi—Grand Lake, NB]

Mr. Speaker, I salute my colleague, the member for Berthier—Maskinongé. She also sits on the Standing Committee on Agriculture and Agri-Food. I want to thank her for her hard work.

Let us look at our budget since we have been in power. There are still many things we would like to do, this I know. There is obviously still much to be done.

We increased the Canada child benefit, which was great. We increased the old age security pension, which was also great. Then, we lowered the retirement age from 67 to 65. On the agriculture front, we allocated $250 million to producers and $100 million to processors.

These are some of the positive things we have done in the past two years. There is much to do, of course, but will my colleague at least acknowledge that our government has been very busy? We still have a lot left to do. Does she have anything to say about that?

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

Mr. Speaker, I thank my colleague for his question.

This Liberal majority government is halfway through its mandate. Indeed, it has taken some positive steps, and we must recognize that the government has taken action and implemented measures. We agree, and congratulate and thank them for some things. However, they made a lot of promises. It has been two years, and Canadians expected more.

The government really needs to reduce tax inequities. A bill has been introduced to do so. My colleague and I both sit on the Standing Committee on Agriculture and Agri-food. Everyone who appears before the committee talks about the importance of fixing the unfair tax measures affecting the transfer of family farms. This is one thing the Liberal government could have done. It should have done it. This measure could have been included in the budget. We would have liked to have seen the bill at least make it to committee.

There are a number of measures that we like, but the government must do better. Canadians expect more.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I would like to thank my colleague for her very thorough listing of measures for which ordinary families are waiting.

It appears the government feels it has a lot of money to spend. It is going to send hundreds of millions of dollars over to China to develop infrastructure around the world, and yet, it cannot seem to find the time, the money, or the heart, to provide pharmacare.

The Liberals say we are all in this together, and yet, they vote against every single private member's bill and motion we table. That includes calls for the right to affordable housing, and the right to affordable medicines, so people do not have to decide whether they are going to pay their rent or buy their medicine.

Could the member speak to the fact there are many working families, and many people trying to get into the middle class who are not benefiting yet from the government?

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

Mr. Speaker, Canadians had a lot of high hopes in 2015. They put their trust and confidence in a Liberal government. The Liberals did a great campaign. However, Canadians are starting to realize they are not getting what they thought they would out of the government.

Before being elected, I worked at quite a few jobs to make ends meet. Many constituents in my riding work really hard, and they still do not make ends meet. In Quebec, we have a great system where we have affordable child care. It was a promise this government made, to develop affordable child care. We are not there yet. The Liberals have created no new child care spaces.

On pay equity, they realize they have to act, but they keep pushing it back. Why do women have to wait for pay equity? It does not make sense. The government says it is feminist, but it does not show us. Where is the bill? Why do women have to wait?

Canadians are disappointed and frustrated, and that is why we are voting against Bill C-63.

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

Mr. Speaker, it is an honour and a privilege to speak, on behalf of the people of Fredericton, the riding I have the pleasure to represent, to Bill C-63, the budget implementation act No. 2, which will help us conclude our budgetary measures for 2017.

This bill contains some of the important measures from our government's second budget. These measures are in line with our plan to continue to create jobs, stimulate the economy, and offer Canadians more opportunities to succeed.

In just two short years our government has accomplished a great deal. I hear from people in Fredericton, Oromocto, Maryland, and the Grand Lake region that they like what we are doing. They like the tax cut for the middle class. They like that we have enhanced the Canada child benefit, lowered the eligibility age for the old age pension to 65 from 67, and expanded old age security for low income seniors.

As a result of this government's efforts to ease the burden on our middle class, nine million Canadians are now paying less tax. This tax cut provides about $3.4 billion in annual tax relief to the middle class. Single individuals, who benefit, will see an average tax reduction of $330 every year. Couples, who benefit, will see an average tax reduction of $540. To help pay for this middle-class tax cut, we raised taxes on the wealthiest 1% of Canadians.

We also decreased small business taxes from 11% to 10.5%, and it will drop even further, down to 10% on January 1, and then down again to 9% by 2019.

In the fall economic update, the government announced another enhancement to the Canada child benefit. As a result of this change, an average Canadian family with two children will see about $200 more in the Canada child benefit payments next year and about $500 more in 2019. In New Brunswick, this amounts to 71,000 recipients, with a total investment of $499 million.

The Canada-New Brunswick early learning and child care agreement signed in August will see the federal government invest close to $30 million in improving early learning and child care for pre-school-aged children. By the end of the three year agreement this funding will build a high quality early learning and child care system that New Brunswick families can rely on.

While I am on the subject of supporting families, let me remind the House that Fredericton welcomed more than 500 Syrian refugees, more per capita than any city in Canada.

With an aging population, one-third of which is expected to be over the age of 65 by the 2030s, support for New Brunswick seniors is essential.

During our first year in government, we restored the eligibility age for old age security and the guaranteed income supplement back to 65. We increased the GIS top-up benefit for single seniors by up to $947 per year. We enhanced the Canada pension plan as well.

Budget 2017 further ensures that seniors continue to receive the support they deserve by committing $125.1 million to improve home care for seniors in New Brunswick.

Over the next 11 years, we will invest $3.2 billion to support affordable housing priorities, including initiatives to support safe and independent living for seniors.

Over these 11 years, we will invest an additional $5 billion to establish a national housing fund to help seniors and the most vulnerable.

New Brunswick is the ideal place to rollout bold and transformative approaches that will enable healthy aging. The federal government's $16.6 million investment in the University of New Brunswick's Centre for Healthy Living is an excellent example.

AGE-WELL, Canada's technology and aging network, recently partnered with the New Brunswick Health Research Foundation and Fredericton's York Care Centre to open a new national innovation hub in Fredericton.

AGE-WELL is a network of federally funded centres of excellence that advance innovation in the field of technology and aging in the interest of all Canadians.

The federal government's first health care deal will enable seniors to live longer, healthier lives in their own homes, and reduce financial and administrative burdens on our already over-stretched health care system

As chair of the Atlantic growth strategy subcommittee on innovation, I can assure the House that the federal government is committed to empowering Atlantic Canadian entrepreneurs through innovation. Under the Atlantic growth strategy, the government is taking bold action to create more middle-class jobs, strengthen local communities, and grow the economy. The AGS will enhance and enrich Atlantic Canada's innovation ecosystem.

Recently designated community of the year for startups in Canada, Fredericton has built a well-earned reputation as an entrepreneurial hub and a centre of innovation.

Thanks in part to the University of New Brunswick's essential role, the innovation ecosystem of this city is attracting a larger number of creative entrepreneurs.

In our 150th year of Confederation, as we prepare to once again take on a more active and dynamic role in the world, we are committed to the vision of Canada's new defence policy. To meet this commitment, the federal government is investing in an agile, multi-purpose, combat ready military, operated by highly trained and well-equipped women and men.

Over the next 10 years, defence spending will increase by more than 70%, which means that 5th Canadian Division Support Base Gagetown, Canada's second-largest military base and home of Canada's army, will take on an even bigger role as an economic generator in our local economy.

Earlier this year, I took part in a ribbon cutting ceremony for a new tactical armed patrol vehicle facility, a $26 million investment by this federal government. When we add this $26 million investment to the $38 million investment in critical infrastructure upgrades at Base Gagetown last year, we get a clear picture of just how big an economic generator Base Gagetown is to the Fredericton region and to all of New Brunswick.

This investment in infrastructure is certainly important, but the federal government's investment in the Canadian Armed Forces is even more important.

For example, since January 1, all troops deployed on international operations have been exempt from federal income tax on their CAF salary up to a pay level of lieutenant colonel. This is in addition to existing allowances that compensate for hardship and risk. Other investments include $198.2 million over the next 10 years to implement a new total health and wellness strategy, providing a greater range of health and wellness services and programs.

There is also an increase of $6 million per year to modernize family support programs, such as military family resource centres, and a new 1,200-person Canadian Armed Forces transition group that would help CAF members and their families transition back into CAF following illness or injury, or into civilian life at the conclusion of their military service.

Budget 2017 would continue to improve the lives of veterans by focusing on three important themes: ensuring the financial security for ill and injured veterans, investing in education and career development to help veterans transition into post-military life, and supporting families.

In the 150th anniversary of Canada's Confederation and with Remembrance Day just a few days away, I want to underscore the sacrifices that our women and men in uniform have made in service to our country. We are here because of them, and we will remember them.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, certainly, on this side, we all agree that we could do no greater activity this coming weekend than to take the time at many different events in our ridings to pay tribute to the men and women in uniform who have fought and died for the very values that we hold dear, so I thank my hon. colleague for that.

In his speech, the member talked about entrepreneurship, innovation, and innovation hubs, which we certainly applaud on this side. I am blessed to have in my riding Communitech, which is an incubator that is going worldwide. I certainly applaud the work the people there do. However, it is not good enough to encourage innovation in these incubators, get people excited about projects they have developed for use by Canadians, and then to have repressive policies placed on them that actually make it hard, or almost impossible for them to actually start the business in which they have invested so much energy.

Recently this summer, on July 18, we had this proposal to change the tax system for small and medium-sized enterprises, and to go after the so-called tax cheats. I have spoken to people in my riding who currently have small businesses, and have created their own enterprises. Even though they are already created, they are actually thinking of moving them south of the border, because of the repressive tax scheme we have here.

If a company that is already here in Canada finds it impossible to continue to operate under this scheme, how in the world would it be possible for a fledgling start-up company, that has not even gotten its own business started yet, to put roots in the ground and establish that business and create jobs here in Canada?

[Matt DeCourcey, Liberal, Fredericton, NB]

Mr. Speaker, I look forward to being at the cenotaph in downtown Fredericton on Saturday. My thoughts will be with the people in Oromocto at their ceremony, in New Maryland, at Barkers Point, and in the Grand Lake region. My thoughts will also be with those who are holding Remembrance Day ceremonies while I am here in Ottawa this week.

I mentioned that Fredericton was recently named Canada's entrepreneurship start-up capital. We are home to UNB, Canada's most entrepreneurial university, with incubators such as Planet Hatch and Energia, which the government supported in its launch. We have focus clusters on cybersecurity, on green energy, and on smart grid growth.

The Atlantic Canada Opportunities Agency, through the Atlantic growth strategy, is focused on supporting the start-up and life-cycle of entrepreneurs in our community, through supporting them in innovative new processes.

In addition, as I said in my speech, we are lowering the small business tax burden from 11% to 9%. The government will always be there for small businesses right across the country. Finally, after 10 years, small businesses in Atlantic Canada can also count on the government's support.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I want to share with the member how much I appreciate his city. On 9-11, I was stranded in Fredericton when the towers came down. Fredericton was very kind to all of us who were in an international meeting.

I would like to ask the hon. member a question about global co-operation, work of the federal government on climate change and clean energy. What is troubling to me is there are several things missing from the budget. One is a tiny inkling of a measure to begin bringing down the $5 billion to $6 billion perverse subsidies to the fossil fuel industry, which Canada has committed to bringing down expeditiously.

Second, regrettably, there is nothing in this budget, which is one of the big topics happening at COP22, which is happening as we speak, and that is a just transition while providing capacity building. When Canada signed on to the Paris agreement, it committed to contributing toward capacity building.

Could the member speak to why he thinks the government has not stepped forward to support the provinces in building capacity for those workers who would like to get into the renewable energy sector?

[Matt DeCourcey, Liberal, Fredericton, NB]

Mr. Speaker, I appreciate my colleague's comments about the generosity of people in Fredericton. It has certainly been my experience over the course of my life.

I have had the pleasure of travelling abroad and witnessing first-hand the impact our contributions have made to the global climate fund through other infrastructure development banks and in places like the South Pacific that are losing coastline.

Canada is a leading contributor in helping with coastal degradation and renewal projects. We are a leading contributor through those multilateral funds. We also have local initiative funds that are putting people on the ground in these developing countries to work to help tackle climate change matters.

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, I am pleased to speak to the House today about the Liberal government's economic update.

Halfway through their term in office, the Liberals seem to be celebrating, but we think their economic update is cause for concern. What worries us the most is that this Liberal government seems to be hurting the very people it says it wants to help. Are the measures it announced mere smokescreens? That is a perfectly legitimate question and one we should be asking. That is what scandals like the paradise papers seem to suggest.

The government is making the middle class, job creators, farmers, and even our most vulnerable citizens, such as diabetics, pay for the deficit. Meanwhile, it is turning a blind eye to Liberal friends who avoid paying taxes in Canada.

Before telling everyone else how to do things, maybe the Liberal government should get its own house in order. A Fraser Institute report showed that 81% of middle-class families have been paying more tax during the Liberals' two years in office than they were paying under the former Conservative government at the end of its term in office. On average, each family is paying $840 more per year.

The Liberals answer by telling us not to worry, because the economy is growing. We know that the economy is growing right now despite the Liberals, not because of them. The measures being taken by the Liberal government now will not really have an effect until a few years from now, and the positive growth we are seeing is a direct result of our Conservative measures taken by the previous Canadian government.

The Minister of Finance also confirmed that the Liberals will borrow $20 billion this year to pay for their spending spree. This is on top of the $25 billion they borrowed in the first year of this government's mandate. They answer by telling us again not to worry and that the budget will magically balance itself, but no one knows when. The truth is that by announcing a $20 billion deficit again this year, the Liberals are breaking another election promise they had made, which was to not exceed a $10 billion deficit in the first two years, and that is already a huge amount, all things considered. Now it is going to be double that for each year.

That is not all. The government broke a second promise because the Prime Minister promised to balance the budget by 2019. Now, we have learned that he has no plan to ever balance the budget. If I understand the Liberals' message correctly, that means that the Minister of Finance is racking up debt twice as quickly as planned and that the deficit will continue to steadily grow for several more years. There is no escaping it. Someone will have to pay the bill at one point or another. That someone will be our children and grandchildren and all middle-class Canadians.

By way of evidence, first, the Liberals eliminated the universal child care benefit. Then, they did away with the children's fitness tax credit and the children's arts tax credit. They also eliminated the post-secondary education and textbook tax credit, not to mention the fact that they did away with income splitting as soon as they took office. That is not all. Next, they cancelled plans to reduce the small business tax rate and employment insurance contributions, while increasing payroll taxes and creating a new carbon tax.

That is still not all. We must not forget that the Liberals eliminated income splitting; halved the TFSA contribution limit; scrapped the public transit tax credit, even though they claim to be a green government; introduced an Uber tax; and raised taxes on beer, wine, and spirits. Finally they tried to impose a tax on health and dental benefits and even on employee discounts for retail and restaurant workers, who need a bite to eat and are trying to save a few dollars on each meal at the end of their shift. Now that is really meanspirited.

The Liberal government's strategy involves trying to smother the flames of its out-of-control spending by asking the middle class to come to the rescue.

The problem with this Liberal government is that it seems to be completely out of touch with Canadians. It seems to belong to a different class, the small percentage of wealthy people. This leads it to make decisions that make no sense to most Canadians who are living from paycheque to paycheque. When these Canadians found out that the Prime Minister and his family spent their vacation on a private island at the enormous cost of $215,000 and that taxpayers would have to foot the bill, no one could understand it. How can the Prime Minister believe that he acted responsibly? How could he have made that decision without seeing that it was problematic, contradictory, and hypocritical? How can he be concerned about the growing tax burden on Canadian families when the measures that have been put in place do not affect his family fortune?

Maybe the Liberal government needs to be reminded that the interest on the debt exceeds $15 billion per year. I am not talking about the deficit; I am talking about the interest on the debt. Those billions are gone and will never be invested. Increasing the deficit by $50 billion will not help us deal with the debt, which has grown that much in just two years. The $15 billion annual interest on the debt could pay for three tunnels between Quebec City and Lévis, three Champlain bridges, or 187,500 kilometres of repaired roads, which is the equivalent of 12 trips across Canada and back from coast to coast. It could pay for 40 huge multi-purpose arenas, four major hydroelectric dams, 500,000 daycare spaces, 11,500 affordable housing units, 2,500 MRI machines in hospitals, 75 F-18 fighter jets, 1,625 water treatment plants on reserves, or 300 rail bypasses for places like Lac-Mégantic. As an aside, we are still waiting for the results of that study.

The Liberals will reply that they created the Canada child benefit, but that benefit, which gives families a maximum of $560, is a smoke screen. Indeed, for every $560 a family receives, it will have to write off its share of the deficit. It will simply be added back into the line of credit. This year alone, after each family receives its Canada child benefit, it will still have to pay another $3,547.90 sooner or later to cover the cost of the deficit. What the Liberal government gives with one hand, it takes back with the other. All they are doing is leaving this debt to future generations.

These reminders and new perspectives might give the Liberals some idea of the repercussions of their out-of-control spending on Canadians. What we need, and what the Conservative government would deliver, is sound management of public finances, lower taxes, greater justice for victims, and a more affordable lifestyle for all Canadians. This must begin with a crackdown on tax avoidance and tax evasion, which does not appear to be one of this Liberal government's priorities, as we learned this week, based on how it is protecting the Liberal Party bagman. This close friend of the Prime Minister is suspected of hiding money in tax havens, as shown by investigations by several internationally recognized media venues.

Unfortunately, we are now dangerously on the wrong track with this other update and this other budget tabled in 2017.

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

Mr. Speaker, there are many parts of the member's speech that I take some exception to. I sat in opposition and saw a Harper government do absolutely nothing to deal with issues such as tax avoidance, or anything of that nature. I sat in opposition when the Harper government allowed the debt to grow to $160 billion. We have seen so much progress within two years of this administration, far more than we saw in 10 years of the Harper government.

The member talks about tax fairness. What did the Conservative members opposite do when it came to increasing the taxes of Canada's wealthiest? They voted against it. What did they do when it came to the tax break for Canada's middle class? They voted against it. What did they do on the Canada child benefit enhancement? They voted against it. What did they do on the guaranteed income supplement? They voted against it.

Why is their voting record so bad when it comes to representing real Canadians?

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, it really seems as though the hon. member on the other side of the House missed the point of my speech. I wonder if he even bothered to listen to what I said.

He is going after the former government, but his government is the one that is hypocritical with respect to our current fiscal situation. This government has a minister who was found guilty of a conflict of interest by the Ethics Commissioner. This government's Prime Minister went to a private island to spend taxpayer money. This government cancelled income splitting for families, which allowed them to save on taxes. This government is irresponsibly putting our families, children, and grandchildren in debt, without any plan to return to a balanced budget.

The government's budget is, quite simply, mind-boggling. The people watching right now know better. They understand what is going on. We cannot wait to change sides in the House.

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

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

I would like to ask him specifically about the Asian Infrastructure Investment Bank. In this budget implementation act, the government is taking a half a billion dollars and giving it to wealthy bankers to build infrastructure in Asia, not in Canada. We have heard examples of the government taking away money from diabetics. We have heard of it taking away money from people with autism. It has taken money away from people suffering from mental health conditions, and it is giving money away to the Asian Infrastructure Investment Bank.

I want to talk about priorities and get the member to talk about the priorities of his constituents. When he was campaigning, did anyone say, “Please give away a half a billion dollars to an infrastructure bank in Asia instead of taking care of Canadians' interests first”?

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, I am grateful to my colleague for his highly relevant question. I would have liked to talk about the Asian Infrastructure Investment Bank and the Canada infrastructure bank, which the government is in the process of setting up, but I had only 10 minutes to speak.

It makes absolutely no sense that this government is taking money from Canadians and investing it in an Asian Infrastructure Bank that will develop infrastructure located not in Canada, but on the other side of the ocean. This infrastructure is not even in our own country.

Since the members on the other side of the aisle dispute our extremely severe, yet legitimate, criticism of their budget, I must also talk about the credits and money this government is taking away from our most vulnerable citizens, like diabetics. This government is clawing back money that these people are entitled to, money that helps them provide for their needs, and using it to fund its own reckless, out-of-control spending.

[The Deputy Speaker, Conservative, Bruce Stanton]

Is the House ready for the question?