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

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I listened to my learned friend from the other side, and there were some inaccuracies in what he said. He mentioned that the Conservatives introduced the child benefit during their regime, but that was taxable. Under the Canada child benefit, we are giving more tax-free money to nine out of 10 families than the previous government did. The member also mentioned that we had not considered inflation. Probably the member forgot that we are now two years into our governance and we are linking the Canada child benefit to the cost of living increases.

I did not hear the member talk about affordable housing for seniors. In the riding of Nepean in Ottawa, 10,000 people were on the waiting list for affordable housing. We have made a great many investments for seniors. A few years back, a report stated that in Ottawa and the eastern Ontario region, 2.5% of patients accounted for 35% of hospital expenses. Fifty per cent of that 2.5% were seniors. Therefore, we have transferred more funds to the provinces with the condition they be used for senior care and mental illness.

Finally, does the member recognize that the increase in our GDP growth is the best among the G7 countries due to the investments we have made.

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

Madam Speaker, I am certain that my colleague will be very pleased to read the document I am holding.

This Fraser Institute document reports that 80% of families are paying $840 more with the Liberals in power. That is the reality. The member spoke about the debt-to-GDP, or gross domestic product, ratio and said that it is the best among G7 countries. I have two things to say about that: first, the Liberals never mentioned it in their election promise regarding possible tax cuts.

This reminds us that, when we were in government, we left the house in order with a $2.5 billion surplus. Even better, Canada was the first to emerge from the economic crisis. We were the best country in the G7 and we had the best debt-to-GDP ratio. That was the legacy of the Conservative government. This government is headed in the wrong direction by spending money it does not have and creating deficits.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, before the budget was tabled last spring, the NDP sent a letter to the Minister of Finance, outlining some of our great ideas on how the government could help Canadians, the middle class, and those striving to join it. Perhaps the Conservatives may not have agreed with all of that list, but one the thing I think they would have agreed with was to bring back the eco-energy retrofit program, which was a Conservative policy. It would provide money for Canadians across the country, leveraging hundreds of millions of dollars. People spent so much money in stores across the country and it cut down greenhouse gases in their communities.

Could the member comment on why the Liberals have not started this program again? It was such an obvious success of the past Conservative government.

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

Madam Speaker, I want to pinch myself when I hear an NDP speaker talk about a great program tabled by the Conservatives. I thank him so much. We had many of them.

The philosophical approach of the Conservatives was to let people decide for themselves. This was why we had so many tax credits to help children, families, and those who used transit, those who used buses and metros in big cities. If they wanted to use those, we would help them. This is why we also had some great tax credits for people who were sick. Unfortunately, the Liberal government has failed to recognize that. The government thinks that the best way to deal with people is to tell them what is good for them and what is not good for therm. That is not the way we see things.

We welcome the fact that the NDP supports some of our policies. Two years from now we will apply them again.

[Rémi Massé, Liberal, Avignon—La Mitis—Matane—Matapédia, QC]

Madam Speaker, the name of my riding is quite long, but I am very proud of it because I represent four RCMs, those of Avignon, La Mitis, Matane, and Matapédia. I will be sharing my time with the member for St. Catharines.

As I was saying, I am the member for Avignon—La Mitis—Matane—Matapédia, which was represented by an opposition member for nearly 25 years. During that whole time, it was represented by a Bloc member. It was a particularly difficult period because we did not have the federal government's ear and were not represented at the decision-making table to make sure that important initiatives were carried out. During that time, particularly the 10 years that the Conservatives were in power, my riding went through some really tough economic times.

Jobs were lost and businesses closed their doors in my region, mainly because of the budget cuts within federal departments and agencies. It was a particularly dark period. That is why I decided to get involved in politics. I told myself that I was going to use my experience to work hard so that my region had a place at the decision-making table. Today, the Liberals are in office because our platform was and still is excellent, as reflected in our previous budgets.

I would like to respond to what my colleague said earlier. To us, the important thing is that the debt-to-GDP ratio, which was 32.5% when we came to power, has gradually gotten smaller. Now it is 30.5%, and it will continue to shrink. That was one thing we promised to do. Based on our projections, that ratio will reach its lowest point since the 1970s. We brought it down to that level thanks to a healthy economy and a plan that is working. Revenues are up, and people are confident, so they are investing and consuming goods, which is a huge help to Canada's economy.

Not long ago, Ms. Lagarde, managing director of the International Monetary Fund, said that she hoped Canada's approach would go viral. That is true, and that is what we would like to see because our plan is working.

As I said before, I represent a riding in the Lower St. Lawrence region that straddles the Gaspé and includes 57 exceptionally vibrant municipalities. The residents of those municipalities have been especially proud these past two years because, thanks to our budget and our platform, we have invested $77 million in various projects there. The region has not seen that kind of investment in years.

We are seeing economic growth. Jobs are being created and the economy is booming. Of course there is still work to be done, but in two years' time, we have managed to attract investments totalling $77 million. I also know that this is going to continue, because there are still some excellent projects on the table. I support them, and my government is going to support them. I can assure the House that we are in an excellent and very positive situation.

Here are some specific examples of projects that have come out of the budget measures we implemented. In my riding, in Sainte-Flavie, right next to the Mont-Joli airport, for those who know the Gaspé region, we have the Maurice Lamontagne Institute, an internationally recognized French-language ocean research institute. Last June, I had the immense pleasure of welcoming the Minister of Fisheries to announce a $27 million investment, which will give the institute the research labs and infrastructure it needs to conduct important research and examine what is happening in our oceans in order to predict trends.

On top of this $27-million investment, the minister also announced more jobs. During the 10 years the Conservative government was in power, this institute was on a downward spiral. Jobs and investment were cut, which worried us greatly. Our announcement was a tangible demonstration of how much our government values research.

On a side note, when we came into office, the Prime Minister released a letter to federal public servants saying that we care about them, that we value research, and that we need their research findings to inform our decision making. This letter took a huge weight off their shoulders. The effect was amazing. Now they are truly motivated.

I was present at the institute when my colleague, the Minister of Fisheries, made the announcement. There was a “Stop Harper” sign outside the building. This is an important anecdote, because the institute needed a chance to turn things around. Now it has that chance, thanks to our investments and the measures we implemented in this budget. Investments are being made, and jobs are now being created. I am very proud that those jobs are in the regions.

There is a major regional airport in my riding, Mont-Joli airport, that makes it possible for me to return to my region as often as possible. Scheduling conflicts can make that a challenge at times, but the airport needed to be developed because it is an important infrastructure that allows workers to travel to our region. We are committed to investing in extending the runway at the Mont-Joli airport. We have also allocated funding for decontaminating the land around the airport so that the City of Mont-Joli can acquire the land and sell it for development.

We have also invested in the environment. For example, the banks of the St. Lawrence have eroded over the years. Obviously, climate change has had a significant impact. Some do not think that climate change is having such a serious or direct impact, but back home there is no denying it. The Minister of the Environment has invested in a project to protect 20 kilometres or so of banks by planting vegetation to shield from the high tides.

Furthermore, we invested in transforming churches into cultural centres. We also invested in our communities. I count myself lucky to have two Mi'kmaq communities in my riding, Listuguj and Gesgapegiag. People in those communities are much happier when we talk to them these days, because the dark days of the Conservative reign are over. I just spent some time with some of them yesterday here in Ottawa. We met with the Minister of Fisheries to talk about some development opportunities. Sizeable investments have been made in their communities, specifically to give them the infrastructure needed for their development.

We also invested in water supply and waste water treatment systems. We also made sizeable investments, in partnership with the Government of Quebec, in our arenas. We have invested in more tourism-oriented projects, such as lookouts, so that when tourists are passing through the Matapédia valley, they can stop and take the time to see the beautiful landscapes along the river. We announced some measures regarding investments in a series of lookouts so that tourists can enjoy the magnificent views in the Matapédia valley.

In Carleton-sur-Mer, thanks to our budget measures, visitors can access the magnificent Mount Saint-Joseph and its beautiful parish church. We are investing several million dollars in this tourist attraction.

In closing, over the past two years, our government has invested a lot of money across Canada. I am particularly proud of our government and our Minister of Finance, and this is only the beginning. We continue to implement our amazing platform.

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

Madam Speaker, we have a man who goes by the name of Elvis in our community of Port Alberni. Elvis has an alcohol addiction. He used to drink daily, and every day the ambulance, fire department, or police were called to pick him up. They would take him to the hospital and a doctor or a nurse would evaluate him, and sometimes X-ray him. Elvis would then go back to the street. It would cost us roughly $2,000 a day in services to take care of Elvis.

The Port Alberni Shelter Society raised money from the public and community groups and found Elvis a place to stay. It costs us $425 a month for Elvis to live in this place, and he has been living there for five years, saving hundreds of thousands if not millions of taxpayers' dollars.

The government has talked about delivering money to housing, but we are not seeing it, and every community has an Elvis. Every community know this same story. We urgently need to get people off the street and save taxpayers' money. We need to make sure there are no more Elvises waiting for a place to live.

Will the government take seriously and urgently the vulnerable people living on the streets in our communities? We have been waiting for too long.

[Rémi Massé, Liberal, Avignon—La Mitis—Matane—Matapédia, QC]

Madam Speaker, I would like to thank my colleague for his remarks. He obviously cares about his constituents and the person that he mentioned.

The Government of Canada shares that concern. We have announced and taken steps to invest in infrastructure and affordable housing to give the less fortunate better access to quality housing.

I often talk about my riding. Two or three weeks ago, I was at home in Pointe-à-la-Croix to announce funding to properly renovate a building that houses some 60 affordable housing units for people in the community. I could give other similar examples because this sort of thing is happening all across Canada. We care a lot about this issue.

Investments have been made and others will be made to give Canadians who are not as well off access to affordable housing.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, I know the member's government has said a lot of great things about fighting climate change, sentiments that I share. The trouble is, the government's actions have been very inadequate. In fact, we are seeing greenhouse gas levels going in the wrong direction, going up rather than down.

I want to ask the member about one hugely successful program the previous Conservative government started, the ecoENERGY retrofit program. For a small investment, the federal government was able to leverage a lot of spending by people across this country, getting businesses in every community more and more business as a result. I have heard this from builders and businesses in my community.

This program brought down greenhouse gases across this country. However, the current government has refused to bring that program back. It was such a successful program and easy win for everyone, it would get full support within the House if it returned. Why has the government refused to bring it back?

[Rémi Massé, Liberal, Avignon—La Mitis—Matane—Matapédia, QC]

Madam Speaker, I would like to thank my colleague for his comments. He knows and he said that our government cares about the environment and must make concrete investments to deal with climate change.

To answer his question, I have another real-life example, and I talked about this earlier. Thanks to the program that was implemented by the Minister of Environment and Climate Change, our government was able to invest tens of thousands of dollars to protect some 20 kilometres of the St. Lawrence River shoreline. Plants were planted to protect the bank from high tides. There are many other examples like this.

I would like to remind members that we signed the Paris agreement. There is a lot of work to be done, but it is worth doing and continuing our efforts. I look forward to other announcements like this from the minister.

[Chris Bittle, Liberal, St. Catharines, ON]

Madam Speaker, I am pleased to rise today to speak in favour of the budget implementation act to implement the second phase of the plan that the minister and government laid out for Canadians in budget 2017. Two years into our mandate from Canadians, it is abundantly clear that the plan we laid out, which the Minister of Finance has been executing, is working. In our riding of St. Catharines, we do not have to look far to see the real impact that our policies are having on our community.

Prior to and since my election, I have had the opportunity to work with many people in great organizations. An example of that is the YWCA Niagara Region, whose representatives I will be meeting later today. I look forward to talking to them about the great work they do in Niagara and across the country. However, prior to my election, they ran an excellent program known as the cardboard house. They set up a cardboard house. We were able to walk through the few rooms in this small house and see the statistics on the poverty levels in Niagara. Prior to my election, one statistic that caught my eye was child poverty in Niagara. That number was 25%. Of the children in the Niagara region, 25% were living in poverty. That is unspeakably and shockingly high.

I was proud to be part of the campaign with our Prime Minister that recognized the plight of child poverty in Canada. During the previous election campaign, we committed ourselves to implementing a policy that would help raise some of those vulnerable Canadian children out of poverty, and in December 2015 we introduced the Canada child benefit as one of our first pieces of legislation as a government. Since July 2016, when the CCB came into effect, it has been helping hundreds of thousands of Canadian children across the country. In St. Catharines alone, as of July 2017, over 15,100 children have received this new and tax-free benefit. In St. Catharines, payments average $600 per month, amounting to more than $5.4 million dedicated to helping some of the most vulnerable and to making life a little easier for middle-class families and those working hard to join them. This is an example of our government listening to Canadians.

This past summer I had an opportunity to participate in a fundraiser run by the YWCA Niagara Region. Prior to that fundraiser, it invited me back to the cardboard house, which was in the Pen Centre, a local mall in St. Catharines. I looked back again through the statistics, and many of them were too high. A lot more work needs to be done. The one statistic that caught my eye was that child poverty in Niagara was no longer 25% but 15%. As I said, that number is still too high, but it is a 40% reduction in child poverty in St. Catharines and the Niagara region within two years. We cannot argue with statistics. It's basic math: the more money we put into the hands of middle-class families and of those who are struggling, the more we reduce poverty. This is the result we get when we listen to Canadians and put in place a plan that is in the best interests of the country.

Reducing poverty and bolstering the middle class was a central tenet of our plan. It was at the core of budget 2016 and continues to be a core guiding principle of budget 2017 and the budget implementation act we are debating today. We do not have to look far to see supportive statements indicating that our plan is working, but I think one supportive statement in particular bears discussion. The Governor of the Bank of Canada is responsible for setting the monetary policy of our central bank. His job is essential to the successful operation of our economy, and his opinion holds enough weight to shift the entire stock market. He is independent, but was appointed on the advice of the former government. During his remarks of July 12, he noted that our economy was strengthening and the economic outlook strong. However, it is interesting to see his reasons for making those remarks. He credited our government's commitment to targeted stimulus spending as the reason for continued growth in our economy. He noted specifically that the Canada child benefit was “highly stimulative”.

We cannot ask for much more validation than that. The Bank of Canada governor, appointed by the previous Conservative prime minister, has credited our plan for growing the economy, which is exactly what we said it would do.

Perhaps the opinion of the Bank of Canada governor is not enough, so let us hear from Greg from St. Catharines.

I ran into Greg on the streets of St. Catharines. He said hello to me and said “Thank you, Chris.” I was perplexed by that and asked why he had said that. He told me that it was because of the Canada child benefit.

Greg's daughter and grandson live with him. While his daughter works, he takes the opportunity to spend a lot of time with his grandson. It is evident the money his daughter receives from the Canada child benefit makes life easier for the entire household. They have more money for groceries, activities, making things just a little easier day by day. These are real constituents benefiting from our plan.

If the governor's comment and Greg's story are not enough, perhaps we should talk about Laura.

Laura is a a single mom in St. Catharines. She works full time, but despite working full time and being a single mom, she gives a lot back to the community. As many parents can attest to, life is hard enough when they have kids. Obviously, as we have talked about on all sides, it is more difficult when there is just one parent. However, for all the single parents out there, life is not always so easy. The CCB helps supplement her income, allowing her to put money where it needs to go, allowing kids to be kids, to play sports, and enjoy outing with friends.

Again, the proof is in the testimonials, and the proof is crystal clear that our plan is working. Bill C-63, which would implement the next phase of budget 2017, will continue to improve the lives of everyday Canadians.

I want to turn for a moment to talk about poverty on a wider scale.

Last week, the finance minister tabled the fall economic update, which included further measures to boost the Canada child benefit. This will continue to contribute positive results to the economy.

However, the minister also made note of a new commitment to the working income tax benefit. Addressing poverty on a wide scale requires addressing the core of the problem. While it was announced that 450,000 new jobs were created since late 2015 and we had the strongest economy in the G7, we must dedicate resources to those Canadians who are down on their luck and need help. The working income tax benefit does just that.

Utilized as a refundable tax credit, the working income tax benefit provides important income support, helping supplement the income of low-income earners. By allowing low-income workers to keep more of their paycheques, the benefit encourages people to enter the workforce and allows them to establish a level of stability, decrease their need for social assistance, and to get back on their feet to break the cycle of poverty.

This has been our goal since the election, advancing an agenda that would serve to expand the middle class and make the lives of Canadians families a little easier.

To recap, today we are debating legislation that would implement the next phase. Our CCB has been successful in its intent to reduce poverty of over 300,000 children. We have witnessed the impact it is having on middle-class families and, as such, we have committed to bolstering it further by tying it to inflation a year early, adding an additional $5.6 billion in support over the next six years.

As I mentioned, our economy is first in the G7 with respect to growth, and the Bank of Canada governor has clearly stated that our policies have contributed to the strength of our economy. Over 450,000 jobs have been created since late 2015 and we are expanding the working income tax benefit to help some of our most vulnerable, giving them the opportunity to regroup and get back on their feet, while not sinking them further into poverty.

These are the types of commitments and policies Canadians expect. The people of St. Catharines have had a direct benefit from our policies. I am proud to be part of that plan and carry this forward. I encourage all members to vote in favour of Bill C-63.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Before I go to questions and comments, the member mentioned his first name during his speech. I want to advise him that this is not appropriate.

Questions and comments, the hon. member for Sherwood Park—Fort Saskatchewan.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, in my speech, I will address the issue of the Asian Infrastructure Investment Bank, which is part of this omnibus legislation, but I want to give a member of the government the opportunity to comment on this.

This budget implementation bill authorizes the spending of close to $400 million on Canada getting into the Asian Infrastructure Investment Bank, where we would own less than 1% of the shares. It would be controlled by China as an agent of its foreign policy objectives, ultimately building infrastructure in Asia to advance Chinese strategic objectives.

Does the member feel that it is in the interests of people in St. Catharines to spend close to $400 million for 1% of the shares in a bank that will build infrastructure in Asia as a way of advancing China's strategic objectives?

[Chris Bittle, Liberal, St. Catharines, ON]

Madam Speaker, what the hon. member has not mentioned is that many other countries have joined, including France and Australia.

What is important to the residents of St. Catharines is getting Canadians to work, getting Canadians to benefit not only within Canada but abroad. We are an exporting nation. There are only 35 million or 36 million of us. We need to look beyond our borders for success. We have done so well at that over our history. We have one of the fastest-growing economies in the G7 because the Canadian brand is strong.

This is an excellent opportunity to build that brand abroad in Asia, where we have some of the largest economies in the world, emerging economies that need infrastructure. This will be an excellent opportunity for Canadian companies to bid on that, create jobs, and, again, grow the middle class.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Madam Speaker, I thank my colleague for his remarks.

Based on his last answer, it costs $400 million to build a foreign investment bank. I think this is too expensive. There must be some other way to build Canada's brand abroad.

That being said, there is a question I have wanted to ask for some time. As we saw yesterday, the Liberals like to boast that they have lifted 300,000 children out of poverty. What methodology did the Liberals use to come up with this figure? Could my colleague tell us a bit about their calculations?

My colleague loves throwing numbers around, but he does not really give any details about how they calculate these figures. Can he tell us exactly how the Liberals came up with the figure of 300,000 children?

[Chris Bittle, Liberal, St. Catharines, ON]

Madam Speaker, the number comes from the Library of Parliament's independent study on that.

The member talks about “being rich”. It is rich that he would criticize the CCB. I believe that the plan the NDP ran on would have lifted 80,000 children out of poverty. However, a fight for austerity and to balance the budget at any cost was not a message that resonated with Canadians.

Ours worked. It is proven by independent research. We would be more than happy to share the study by the library with the member. It is having a great impact in my riding, in his riding, and across the country.