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

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Passed Concurrence at report stage of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Passed Tme allocation for Bill ,
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Omnibus BillsPoints of OrderGovernment Orders

November 7th, 2017 / 11:25 a.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, I am rising on a point of order in response to the government's intervention, and I will be brief.

The reality is that the interventions we have heard over the last few days from a number of opposition members simply have not been contradicted by the government. I looked forward eagerly to hearing what points it might offer in rebuttal, but there was no rebuttal. The government has created a bit of a straw man in saying that Standing Order 69.1 is not intended to divide debate. None of the opposition members who have risen to suggest that this be divided for the purposes of voting have suggested that.

What the government has really done today is validated all the interventions of opposition members over the past few days. I think, Mr. Speaker, you can get appropriate guidance from the House that for the purposes of voting, Standing Order 69.1 should apply to Bill C-63.

I thank the government for confirming what opposition members have been saying in the House of Commons.

Omnibus BillsPoints of OrderGovernment Orders

November 7th, 2017 / 11:20 a.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, I would like to address the points of order raised last week on the application of Standing Order 69.1(1) and 69.1(2).

The purpose of this new Standing Order is to address the improper use of omnibus bills. The rule addresses instances where a government includes in a bill distinctly unrelated provisions that do not fall under a common theme. In a situation where a bill contains provisions that are unrelated to the common theme, the Speaker may put to the House separate votes at second reading and third reading on those unrelated elements.

I would like to turn to the application of the second part of the new Standing Order, which deals with the budget implementation bill. The member for Carleton identified some provisions in Bill C-63, a second act to implement certain provisions of the budget tabled in the House on March 22, 2017, which he asserted were not referenced in the budget.

The member's principal concern is the reference in the budget document to the Asian Infrastructure Investment Bank. I would draw the attention of the member to page 181 of the budget document, which states:

As the first North American country to apply for membership at the AIIB, Canada is demonstrating our strong engagement in multilateral institutions, and will commit to playing a unique and constructive role in supporting the Bank’s operations and governance. The Government will introduce federal legislation to operationalize Canada’s membership at this institution in 2017.

The budget proposal to introduce legislation to operationalize Canada's membership in the bank is found in division 2 part 5 of the budget implementation bill, Bill C-63.

As for the other measures in the bill to which the member refers, I would note the following links between the budget and the implementing bill.

Page 190 in the budget references, “Budget 2017 also proposes to amend legislation to implement the recommendations of the 2015 Judicial Compensation and Benefits Commission.” The members know that the Judicial Compensation and Benefits Commission report recommends remuneration schemes for judges, which require amendments to the Judges Act to implement.

Page 211 in the budget references, “Budget 2017 proposes to introduce targeted legislative amendments to bolster the toolkit for managing the resolution of Canada’s largest banks.” This commitment is reflected in division 5 part 5 of Bill C-63.

The member for Portage—Lisgar referred to the June 19 debate where the government House leader stated:

We want to ensure that MPs are not faced with the dilemma of how to vote on a bill that is most supportable but contains a totally unrelated clause, a poison pill, that they find objectionable. We want flexibility for MPs in these instances.

This is precisely the intended objective: to ensure members are able to vote on a totally unrelated measure in a bill. That can only serve to improve the transparency of the legislative process.

I have one final point that I would like to put on the record. Standing Order 69.1 in no way contemplates the division of a bill for the purposes of debate or for separate committee referrals. The Standing Order is crystal clear. There shall be a single debate at the second and third reading stages, with separate votes on distinctly unrelated provisions.

Budget Implementation Act, 2017, No. 2Government Orders

November 7th, 2017 / 11:05 a.m.
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Halifax Nova Scotia

Liberal

Andy Fillmore LiberalParliamentary Secretary to the Minister of Democratic Institutions

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-63, which would implement certain provisions of the budget tabled in Parliament in March, 2017. Before I get to the crux of Bill C-63, I would like to set the broader context in which it has been introduced, because it is important for all of us to understand how our government's actions to date have impacted the Canadian economy.

As my colleagues know, every month, Statistics Canada releases a labour force survey that includes a selection of data about the performance of the Canadian economy, including the number of jobs added that month and the rate of unemployment. For decades, once every 30 days, governments of the day have awaited with bated breath to see just what Statistics Canada had to report.

Allow me to read the opening paragraphs of the most recent labour force survey, released this past Friday by Statistics Canada. They read:

Employment increased by 35,000 in October, and the unemployment rate rose 0.1 percentage points to 6.3%. Employment gains in the month were driven by full-time work (+89,000), while fewer people worked part time (-53,000).

On a year-over-year basis, total employment rose by 308,000 (+1.7%), with full-time work increasing by 397,000 (+2.7%) and the number of people working part time declining by 89,000 (-2.5%). On a year-over-year basis, total hours worked were up 2.7%.

The unemployment rate trended downwards in the 12 months to October, falling 0.7 percentage points over this period.

Those are the numbers from Canada's national statistics agency on Friday, and they speak for themselves. More broadly, since forming government we have added 500,000 new jobs to the Canadian economy. October marked 11 straight months of job growth, and 90% of new jobs created are full time. Meanwhile, unemployment is at its lowest rate in nine years. It is clear that our government's plan to create jobs and grow our economy is working.

Budget 2017 and Bill C-63 are the continuation of that work, the continuation of our demonstrably successful efforts to spur inclusive economic growth.

Now I would like to turn to some of the details of the plan, beginning with enhanced support for workers and skills training.

Sometimes our lives change suddenly and our work schedule needs to change significantly in response. Our government is giving Canadian workers the flexibility to adapt when these changes arise. Bill C-63 would make substantial improvements to employment insurance. We are providing $310 million in additional tax relief to support Canadians who have taken on the important responsibility of caring for a loved one. We are investing $886 million to increase flexibility in parental and maternity benefits, extending the benefits to 18 months from 12 months, so new parents have the flexibility to meet their diverse needs.

We are also making substantial investments, $2.7 billion, to be precise, to boost skills training and employment supports for unemployed and under-employed Canadians. Because we hear from so many Canadian workers who are choosing to pursue new skills in today's rapidly changing economy, we are going to invest $132 million to expand the flexibility of employment insurance for those who seek to fund their own personal skills development.

These efforts are complemented by a range of initiatives by our government to support workers, including our recent announcement that we are enhancing the working income tax benefit, or WITB, for low-income workers. For a single mom, a more generous working income tax benefit, combined with a stronger Canada child benefit, will mean more money for books, skating lessons, or warm clothes for winter.

Let us now speak about the budget's focus on affordable housing. I come to the House from an exciting career as a city planner. One thing I learned from that work is that without secure, stable, and affordable housing, every other goal our citizens strive to achieve becomes secondary. Without adequate shelter, families struggle to raise their children, to get educated, to find and keep employment, and even to stay healthy.

One of the many communities I am proud to represent in Halifax is called Mulgrave Park, a public housing neighbourhood. It is a vibrant community in our city's north end that really embodies the best of what our city has to offer: neighbours offering caring and loving support for each other. This past winter, I was proud and deeply moved to announce that our government would be investing $5 million dollars toward much needed improvements in their community infrastructure. These investments will make a real difference in the day-to-day lives of the people who live there, and they have told me as much with their smiles and their warm embraces.

Indeed, investments in affordable housing are always worth it. That is just one reason I am so thrilled that budget 2017 drastically increases the government's spending on affordable housing to $13.5 billion. Just imagine the lives it will change across this country.

I will turn now to the government's innovation agenda. Many will recall that back in March, some dubbed budget 2017 the “innovation budget”. The budget does focus very intentionally on innovation, and for good reason. The nature of our economy is evolving and we must ensure, as it evolves, that it works for all Canadians. The budget demonstrates that we are focused on building up Canada as a world-leading innovation economy to create jobs and grow the middle class by supporting innovators and equipping Canadian workers with the tools they need to succeed.

For example, the budget invests $1.26 billion in the strategic innovation fund, giving Canadian innovators access to a simpler and quicker funding application process to attract new, high-quality business investments. This is of great value to all Canadians, including my riding of Halifax. I have said many times that I believe Halifax has what it takes to put Atlantic Canada on the leading edge of innovation. Look no further than our growing tech and clean-tech sectors or the runaway success of our oceans sector, which last month became a finalist to become a supercluster under the government's innovation supercluster initiative. These are the kinds of projects that will help Canada be a leader in the industries of tomorrow and why every dollar the budget puts toward innovation is a dollar well spent.

Members may be wondering how the budget would better protect our environment. Meaningful and timely action is required if we are going to protect the majestic natural environment that defines and nurtures Canada. One of the most significant ways we are addressing environmental challenges in this budget is through green infrastructure, with an investment of $21.9 billion over the next 11 years. This major investment would allow us to mitigate and adapt to climate change through projects that reduce our greenhouse gas emissions, promote clean air and safe water systems, and uphold renewable sources of power. In particular, it makes a substantial investment of $83 million to enhance climate resilience in indigenous communities, as well as $18 million to implement a climate change and health adaptation program for first nations and Inuit communities.

As someone who does in fact believe in the science behind climate change, I am particularly excited that the budget includes $73.5 million to establish the Canadian centre for climate services. This centre of expertise would make climate science more accessible and support decision-makers as we address climate change.

The last topic I must address today is how our budget will foster what we call “inclusive growth”. Our government was elected on a promise to create the economic conditions for every Canadian to succeed and to leave no one behind. Investments in inclusive growth include $7 billion over 10 years in affordable child care, an investment that would create 40,000 more high-quality, affordable child care spaces across Canada. It includes funding to improve gender and cultural sensitivity in the judiciary, $100 million for a new national strategy to address gender-based violence, $74 million to enhance the career transition services program for veterans, and $17.5 million to establish a centre of excellence on PTSD.

For our youth, it includes $12.5 million to reduce barriers to education through the Canada learning bond program and $38 million to help low-income youth transition to post-secondary education and work through Pathways to Education Canada.

For indigenous communities, it includes $89.9 million for indigenous languages revitalization, $828 million to address health challenges in first nations and Inuit communities, and $165 million to support indigenous students by increasing access to post-secondary education and skills training.

These are the kinds of investments that will transform Canada for the better, along with the others I mentioned in my speech today, and countless additional initiatives I did not have time to address here today. I hope my colleagues from all corners of this place will agree that our plan is working for Canadians and will vote to keep this spectacular momentum going by voting in favour of Bill C-63.

Budget Implementation Act, 2017, No. 2Government Orders

November 7th, 2017 / 10:50 a.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, it is an honour to rise today to give a speech on Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures. This is an omnibus budget bill.

In speaking to this, I wanted to also start with the big picture. Most of the speeches in this place since we began the debate at second reading of Bill C-63 have not delved very much into Bill C-63 itself. I plan to go into it in some detail. Most of the speeches have dealt with the general question of how much we, depending on which side of the House we are on, like or dislike the budget itself. There are some big picture comments I also want to make.

In debates in this place, the Conservative official opposition members berate the government for spending too much and adding to the debt. It is as though we have forgotten how to distinguish between the deficit, which is rising, and debt. Debt is a more permanent condition, and unfortunately, it is very hard to eliminate debt once it has been added on. We have not reduced any of the $150-billion addition to the national debt accrued under former prime minister Stephen Harper. The debt increased quite a lot in that period, although in the final term, we saw a balanced budget. Deficit is an issue of concern, but not nearly as much as debt.

In looking at the deficit and deficit spending, this current Liberal government was elected promising to run a deficit, although a much smaller one than the one we now see.

Here is what concerns me on the subject of government spending and increasing deficits. We are actually in a situation in this country where we need more, not less, government spending. The strictures on spending the current government appears to feel constrained by on things that need to be addressed come from an unwillingness to spend more than the large spending announcements that have already been made, which were for needed spending.

We need spending on infrastructure across Canada. In a sense, we have been like a homeowner who has deferred maintenance on the home in order to afford the other things we need in our household budget. However, deferred maintenance adds up. When the deferred maintenance is on water works and sewage systems, bridges and roads, and social infrastructure, such as affordable housing, and those things come home to roost, we need to spend more.

At the same time, there is a deep aversion to raising taxes. There have been a lot of claims that the opposite side has raised taxes a great deal. The reality, which I support, and it was in the Green Party platform to reduce the tax on small business to 9%, is certainly applauded. However, we in the Green Party are urging the government to look at the need to raise taxes on large, profitable multinationals.

The tax on large business was, in the year 2000, 28%. It is now down to 14%. It certainly should be raised, because if we look at the percentage of our total government revenues that come from corporations versus individual citizens, the portion on individual citizens has gone up while the portion on large corporations has shrunk dramatically.

As the economy is recovering, and that is good, there certainly is no reason or excuse to not go after, as my hon. friend from South Okanagan—West Kootenay just pointed out, the big fish. The big fish are in offshore tax havens. The big fish are in large, profitable multinationals. Going after people who are seeking to avoid, or worse, criminally evade, taxes should be a top priority.

I note, and it is a personal story, but I think it is quite bizarre, that my daughter, who is a university student, reported to me that the CRA is wasting tax dollars asking for proof of various items on her income tax return. She is a student. She is not making enough money to pay much in taxes or anything in taxes, I think. However, she is being asked to provide proof of the cost of books. I said that it was bizarre, and she said that another friend of hers is doing the same thing.

I would suggest that CRA could adjust its sights on millionaires and billionaires as opposed to students. I think that would be something most Canadians would support.

Turning to Bill C-63, I have to say that I read it with a growing sense of happiness. No doubt it will surprise people that anyone on the opposition benches would. However, when I pick up an omnibus budget bill I still have a sense of, I guess, PTSD from having read the omnibus budget bills in the 41st Parliament, particularly Bill C-38, which destroyed our environmental assessment regime and wrecked the Fisheries Act; and Bill C-45, which devastated the Navigable Waters Protection Act, removed the inspector general for CSIS, and various other measures that had nothing to do with each other.

Reading Bill C-63 confirms in my mind the strong need to simplify our tax code. When we talk to tax accountants, they generally agree that it would be wonderful if the Minister of Finance went in for root-and-branch tax reform to simplify the tax code to remove so many boutique exemptions. I commend the Minister of Finance for removing a number of boutique exemptions, but the tax code, and therefore the omnibus bill we have before us, is very complex on very specific items, such as straddling tax years and figuring out how to deal with different derivatives and the use of various tax mechanisms, such as going through trusts or going through additional corporations and how we end up taxing.

For the most part, I actually find myself wondering if I am going to vote for this particular budget bill if we can make some amendments. I want to point out the areas I like in this bill and the areas I think would benefit from amendments.

As it is an omnibus budget bill, I am pleased to see that there has finally been a tepid move, although it could go much further, to eliminate some of the fossil fuel subsidies. This was a large-ticket commitment in the Liberal campaign platform. Most of the large fossil fuel subsidies remain in place, despite a pledge in the Liberal platform to eliminate subsidies for fossil fuels.

This would be a parallel and needed measure that would go along with eliminating the market distortions that are created by both subsidizing fossil fuels and failing to put a price on dumping waste into the atmosphere. That is equivalent to having a municipal waste dump where there is no tipping fee. People are not encouraged to avoid dumping if it is free. That is why a carbon price makes sense, but we need to move to eliminate fossil fuel subsidies.

The move that is happening here is in relation to changes to the Canadian exploration expense. This happens to be in part 1 of Bill C-63. It would change the tax treatment of Canadian exploration expenses to reduce the tax deductions that are available now from 100% to about 30%. By the way, the way this is structured has created an incentive for accelerated drilling prior to this kicking in in 2019. This could be an unintended but environmentally damaging period. I am holding in my hands advice from Bennett Jones to that corporate sector suggesting that if any oil and gas companies can hurry up and start exploration activities and get commitments in writing before 2019, they can continue to take advantage of the 100% deduction on capital expenses.

I also welcome the changes to the donation of ecologically sensitive lands. I worked on this, back in the day, on the now defunct National Round Table on the Environment and the Economy, repealed in the omnibus budget bill, Bill C-38. We worked to persuade the minister of finance of the day, the Right Hon. Paul Martin, to create special tax treatment for the donation of ecologically sensitive land. The revisions in Bill C-63 continue along that road to clarify and improve that system.

I am not at all unhappy to see the follow-through on the Asian Infrastructure Investment Bank. This is part of Canada's development portfolio. We still lag far behind the commitments made by previous governments, including every government back to Lester B. Pearson, Jean Chrétien, and the Right Hon. Brian Mulroney, who all committed that Canada's development assistance should equal 0.7% of our GDP. We are nowhere near that, but certainly the provisions around the Asian Infrastructure Investment Bank are welcome.

There are a number of other provisions I was pleased to see, particularly those in the Canada Labour Code that would provide more flexible work arrangements and give Canadians prescribed statutory time off work to recover after experiencing family violence. I would like to see those sections amended. I would like to see that time off work as paid leave. I would like to see a single woman without children receive some assistance if she has been the victim of violence. There could be some tweaking of provisions in there.

I am very happy to see the new tax treatment for geothermal energy and an Energy Efficiency Act.

There are many provisions in a bill of 275 pages, but I will stop there and say that I am generally pleased with the contents of this bill.

Budget Implementation Act, 2017, No. 2Government Orders

November 7th, 2017 / 10:45 a.m.
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Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Mr. Speaker, I would like to hear the hon. member elaborate on the measure that is going to provide flexibility. The changes in Bill C-63 would allow more flexibility for families when they need an opportunity for some special time for a variety of issues.

Could my hon. colleague elaborate on the flexibility side as well as on closing the many loopholes in the tax system? Both are important issues for Canadians to know more about.

Budget Implementation Act, 2017, No. 2Government Orders

November 7th, 2017 / 10:35 a.m.
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Brampton West Ontario

Liberal

Kamal Khera LiberalParliamentary Secretary to the Minister of National Revenue

Mr. Speaker, it is my distinct pleasure to rise in the House to speak to Bill C-63, the budget implementation act, no. 2. The bill would implement certain provisions of our government's second budget, budget 2017, that was tabled in the House on March 22.

Following in the footsteps of budget 2016, budget 2017 offers immediate help to those who need it the most and helps ensure that everyone has a real and fair chance of success.

In the 2015 campaign, when we knocked on doors we listened to Canadians, how they were struggling to find jobs and pay for their families, or working extremely hard to make ends meet. We listened to them and we invested in Canadians, in our communities, and in our country.

That is why the first thing we did as a government was to lower taxes for the middle class and raised them for the wealthiest 1%.

We introduced the Canada child benefit that helped nine out of 10 families and lifted over 300,000 children out of poverty.

These investments made by our government in our people, in our communities, and in our economy are now bearing fruit.

We have been able to add nearly 500,000 new jobs in our economy in the last two years. Just this past October, 89,000 full-time jobs were created. The steady rate of job growth has led to the unemployment rate dropping to 6.3%, the lowest level in over a decade.

Additionally, due to the historic investments made by our government, youth unemployment is also at the lowest level in decades. In Brampton West, I had the privilege this summer to visit many local organizations taking part in the Canada summer jobs program. This program helps provide essential experience for youth all across Canada. Our government doubled the funding and doubled the number of jobs for students. In Brampton West, organizations were able to hire over 150 youth through the summer jobs program. That is real change.

Our economic policies have also made a mark on the international stage. Canada has seen the highest growth rate of all G7 countries, with our economy growing at an average rate of 3.7% over the last year. As a result of of this strong economic growth, our government is able to invest more in Canadian families and our communities.

In our fall economic statement, we announced a number of measures aimed toward ensuring that those in the middle class and those working hard to join it share in the success we achieve as a country.

We announced further action to strengthen the Canada child benefit. When it was first announced, the Canada child benefit helped provide more money to nine out of 10 families and lift 300,000 children out of poverty. This was significant for the people of Brampton West.

Starting in July 2018, the Canada child benefit will increase with the cost of living, two years ahead of schedule. In my riding of Brampton West, this means that a single parent of two making $35,000 will receive over $560 more next year tax-free for books, for skating lessons, or for warm clothes for winter for their children.

Additionally, our government announced an enhancement of the working income tax benefit. By letting low-income workers take home more money, the working income tax benefit offers real help to over 1.5 million Canadians. Our government is doing more to help those working hard to join the middle class by enhancing the WITB by an additional $500 million per year starting in 2019. These changes will encourage more Canadians to enter the workforce and further boost our economy.

Now, let us talk about our job creators. Small businesses are the backbone of our economy and they help create jobs in our communities and throughout the country. That is why in our fall economic statement we announced that the small business tax rate would be cut from 10.5% currently to 9% in 2019. This will provide small businesses with up to $7,500 in tax savings per year to reinvest in their businesses. For a local small business in my riding of Brampton West, such as AJ's Bar and Grill, this means more money to hire new employees and expand its services.

The steps we have taken since being elected have helped create this environment of growth and optimism. Bill C-63 looks to build on our policies and bring more prosperity for middle-class Canadians.

This budget implementation act would support the middle class and those working hard to be part of it by protecting the rights of federally regulated workers when they seek flexible work arrangements from their employers. Some of the ways we are helping Canadian families balance work and family responsibilities are by providing greater flexibility for annual vacation days and holidays, more bereavement days in the event of losing a loved one, and more unpaid leave for family responsibilities. These changes would greatly impact the young families in Brampton West who are just starting out in their lives.

Our government also recognizes that many young Canadians are undertaking internships to gain hands-on experience. While internships can help young Canadians make a successful transition into the workforce, some internships, in particular those that are unpaid, can be unfair. The budget implementation act proposes to eliminate unpaid internships in federally regulated sectors where the internships are not part of a formal educational program. These changes would also ensure that unpaid interns who are part of an educational program are entitled to labour standard protections, such as maximum hours of work, weekly days of rest, and general holidays.

It is a well-known fact that our government is committed to strengthening the middle class by promoting strong, inclusive economic growth in Canada and around the world. Investments in high-quality infrastructure contribute to long-term growth and a better quality of life for people at home and abroad.

As part of Canada's commitment to engage, collaborate, and invest with other global partners on development projects in Asia, Canada's decision to apply for membership in the Asian Infrastructure Investment Bank was announced in August 2016. Canada's investment in the bank will be included as part of Bill C-63. This would help sustain growth in Asia and represents an opportunity for Canada to further engage in multilateral infrastructure efforts that support inclusive economic growth at home and abroad. By doing this, we would contribute to global economic growth, and help Canadian companies to explore new commercial opportunities.

The steps taken in budget 2017 and Bill C-63 address the very real issues facing Canadians every single day. Our government plans to strengthen the middle class and ensure that Canadians have the support, resources, and confidence they need to succeed, create jobs, and grow our economy.

I am proud to be part of a government that is committed to improving the lives of so many people across our country. I am proud to support this piece of legislation, and I encourage all members to do the same.

The House resumed from November 6 consideration of the motion that Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, be read the second time and referred to a committee.

Omnibus BillsPoints of OrderRoutine Proceedings

November 7th, 2017 / 10:30 a.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I will have an opportunity to address Bill C-63 in its substance very shortly in the speaking order in debate today, but I appreciate the opportunity to weigh in on the question of whether the bill is appropriately put before us. It is the first real test of Standing Order 69.1 on omnibus bills.

I made many attempts in points of order in the 41st Parliament to argue for the splitting of omnibus bills, for setting them aside. The Speaker at that point, currently the leader of the Conservative Party, ruled that was not for the Speaker to decide, and the House had to speak to the matter of whether a bill was properly an omnibus bill or not.

By way of background, there is nothing wrong with an omnibus bill. In tradition, all the Speakers in this place have said if a bill has a central and primary purpose, in order to achieve that purpose, amendments or repeals to other bills are acceptable. What was unacceptable in the 41st Parliament was randomly putting in so many bills. It was not only in the 41st Parliament. It happened in 2009 and 2010. When a bill is a budget bill, to defeat it is to bring down the government, so in a minority government it became political leverage to push through unpalatable bills all at once, with inadequate study. In a majority Parliament, it became a way for the government of the day to move through things expeditiously.

It put us in mind of the statement from Speaker Lucien Lamoureux years ago, who said he supposed there would come a day where the business of the House would be one omnibus bill that goes through all at once.

In this case, we now have guidance. I agree with previous speakers that it is lamentable that the Standing Order changes were brought in by majority rule as opposed to by consensus. However, Standing Order 69.1 is helpful. It gives us guidance, and it gives the Speaker the discretion to separate out those sections that are not properly within the bill.

I will be speaking to this in Bill C-63 in my second reading debate to say this kind of omnibus budget bill bears no relationship to the kind of egregious abuse of process that we saw in Bill C-38 and Bill C-45 in 2012. Those were bills that achieved things that had nothing to do with the budget, were not mentioned in the budget, and were egregious in their impact. This is of an order that is quite different.

I do not find Bill C-63, as an omnibus budget bill, objectionable, but it is quite right, as the hon. NDP House leader has pointed out, that where there are provisions that were not mentioned at all in the budget, if we are to uphold Standing Order 69.1, the Speaker has the discretion to move those parts out and allow separate debate and study of those portions only.

Standing Order 69.1 is an improvement over our previous Standing Orders. It does give guidance. However, I would hate to see the debate in this place misunderstood by anyone observing as representing an abuse of process, abuse of Parliament, and an affront to democracy that we saw in previous Parliaments under the previous government.

Omnibus BillsPoints of OrderRoutine Proceedings

November 7th, 2017 / 10:20 a.m.
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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, I am rising to comment on the point of order raised last week by the hon. member for Carleton under Standing Order 69.1 to divide Bill C-63, the budget implementation bill, 2017, no. 2, so as to allow a separate vote on clause 176 and the bill's schedule concerning the Asian Infrastructure Investment Bank. I apologize in advance for a somewhat lengthy submission, but since we do not have precedents yet to guide us, there is still much ground to be covered.

To save some time, I am going to simply refer the Chair to the original point of order, as well as to the point of order raised by the official opposition House leader concerning Bill C-56 on October 31. Truth be told, I am not making extensive arguments because I am looking to somehow delay the business of the day, but because of what happened during the amendments made back in June and in the spring to the Standing Orders, when they were rushed through. There are many details left unaddressed, which need to be sorted out. Let that be the lesson of what happens when a government obsessed with doing things hastily rams through the House of Commons a platitude dressed up in legal language.

Now to the point of order, I believe that the hon. member for Carleton ably argued how Bill C-63 goes beyond the exemptions written in budget implementation bills. My argument goes to why, having established that the exemption does not apply, items that had some passing reference in the budget can be divided from the other budgetary provisions in the budget implementation bill. As the Chair undoubtedly is aware, the Quebec national assembly has a procedure to allow consideration of motions to order the division of a bill where there are different principles within that bill. Its jurisprudence could be helpful to us in this case.

Pages 399 and 400 of Parliamentary Procedure in Québec explain the process when a motion to divide a bill has been offered. It states:

The Chair rules on the admissibility of the motion, after examining the bill to determine whether it contains more than one principle.... criteria establishing whether or not a bill contains more than one principle have evolved out of jurisprudence. First, if the different parts of the bill constitute a fraction of a larger whole or principle, then the bill is not considered to contain more than one principle. Second, a distinction must be made between the essence and the mechanics or procedures of a bill. A principle is an essential element of a bill, whereas the mechanics are simply incidental to that principle. It should not be concluded that a bill contains more than one principle just because it comprises various procedures. Similarly, it should not be concluded that the principles that would result from a division are mere mechanics just because they can be grouped under a single theme.

The Chair can also consider other elements. For instance, although the explanatory notes have no legal value in identifying the principles of a bill, they may nevertheless indicate the existence of more than one principle. In one ruling, the Chair found that appending the text of an entire bill to another bill spoke volumes, and pointed out the difficulties of application created by this type of drafting. However, compliance with legislative drafting rules does not ensure than a bill contains only one principle.

The principle or principles contained in a bill must not be confused with the field it concerns. To frame the concept of principle in that way would prevent the division of most bills, because they each apply to a specific field. Furthermore, when determining the principle or principles of a bill, the Chair need not consider the importance given to certain parts of the bill, nor evaluate whether one part of the bill is incidental to another. The Chair should not seek to clarify the legislator's intention, but should simply read the text, without trying to interpret it. That being said, the Chair must necessarily analyze the provisions of the bill to determine whether they contain one or more principles. However, this must be done on the basis of the text itself and not by seeking to determine all the possible consequences of applying the bill once it has been adopted.

I have one more, shorter, quote from page 401 that adds:

The following conditions have also been established by parliamentary jurisprudence: each part of the divided bill must be able to stand on its own; each part of the divided bill must be more than a mere procedure; each bill resulting from the division must be a coherent whole, independent from the rest.... Parliamentary jurisprudence has established that, in a motion to divide, the sections of a bill cannot be rewritten in order to render the motion admissible, with the exception of the section relating to the coming into force of the bill. It is nonetheless possible to cut some words from a section provided that they are transposed integrally into the other bill.

Let me turn to the specific case of Bill C-63. Before we hear some more rebuttal on this, the Asian Infrastructure Investment Bank and the remaining provisions of Bill C-63 are all budgetary in nature. They are all economic in their effect.

Let me refer to the words on page 400 of Parliamentary Procedure in Québec. It is a shorter quote, which states:

The principle or principles contained in a bill must not be confused with the field it concerns. To frame the concept of principle in that way, would prevent the division of most bills, because they apply to a specific field.

—as I said.

In this case, we are talking about what might be claimed to be budgetary or economic policy.

The ruling of former Quebec national assembly vice-president Fatima Houda-Pepin on December 11, 2007, at page 2,513 of the Journal des débats makes the following point:

In this case, the bill contains more than one principle. Although the bill deals with road safety, the Chair cannot consider that to be the principle of Bill 42. The principle or principles of a bill should not be confused with the topic to which it pertains. Coming up with a different concept of the notion of principle would disqualify most bills from being subject to a division motion because they deal with a specific topic. In this case, the various means of ensuring road safety included in this bill could constitute distinct principles.

Indeed, I anticipate the Liberals may say that every piece of Bill C-63 is critical and integral to the entire legislative package and, if separated, would doom the whole initiative. To that, I offer the ruling of another former Quebec national assembly vice-president, Claude Pinard, on June 3, 1998, at page 11,651 of the Journal des débats:

In this case, this was rather an instructive exercise used to demonstrate that the principles of a bill do not necessarily coincide with its author's intentions. In other words, the Chair, when identifying the principles of a bill, does not have to wonder about whether certain parts of the bill are more important to the author than others, or whether the author considered one part of the bill incidental to another. To do otherwise would render Standing Order 241 inapplicable, and no other bill could be divided, since it would be very surprising that the author of a bill did not consider every part of his or her bill to be absolutely essential.

Next, I will turn to the practical considerations that must flow from a decision under Standing Order 69.1 to divide a bill. At second reading—and third reading, for that matter—Standing Order 69.1(1) is clear that there is to be a “single debate” at each stage. However, it does not give direction on the formulation of the question or questions to be proposed by the Chair.

Moreover, a practical consideration, especially for those of us on this side of the House, is the matter of amendment at second and third reading. Are we to be limited to one amendment, must it relate to the entire bill, or perhaps it is to be limited to a single portion of the divided bill? The answers to these questions turn, obviously, on how the Chair approaches and proposes the main motion or motions at second or third reading. An analogous process in Australia might be of assistance here. In the Commonwealth Parliament, the approach to omnibus bills is essentially to have a series of separate, individual bills but to handle them en bloc in a process known as “cognate debate”.

Page 389 of House of Representatives Practice, sixth edition, explains:

When there are related bills before the House, it frequently suits the convenience of the House, by means of the cognate debate procedure, to have a general second reading debate on the bills as a group rather than a series of separate debates on the individual bills. A proposal for a cognate debate is usually put to the House by the Chair when the first bill of the group is called on. If there is no objection the debate on the second reading of the first bill is then permitted to cover the other related bills, and no debate (usually) occurs when the questions on the second reading of the subsequent bills are put. Apart from this, normal procedures apply—the bills are taken in turn with separate questions put as required at each stage of each bill. If a Member wishes to move a second reading amendment to a bill encompassed by a cognate debate, other than to the first bill, the amendment may only be moved when the relevant order of the day for the later bill is called on.

To that end, I encourage you to devise some approach to permit multiple amendments to be on the floor, or at least in the public domain somehow during second reading and third reading. Alternatively, a stricter adaptation of the Australian approach with amendments being permitted to be moved before the putting of the questions on each part of a divided bill could also be fashioned. However, this latter approach has shortcomings, such as the very limited time available for members to consider an amendment or how it would intersect with the implementation of time allocation orders.

As an aside, the intersection of Standing Order 69.1 and motions offered under Standing Order 73(1) to refer bills to committee before second reading needs to be sorted out. My reading of Standing Order 69.1 excludes the option of Standing Order 73(1), given the very specific references in Standing Order 69.1(1) to, “the motion for second reading and reference to a committee”.

After the second reading stages, of course, is the committee stage. While the mechanics of a committee study do not change, there is the matter of whether the multiple votes trigger separate orders of reference. Indeed, do all the parts of the bill go to a single committee or potentially to multiple committees? Certainly, the government contemplated this multiple-committee scenario. The government House leader's infamous March discussion paper, which led to government Motion No. 18 and its new Standing Order 69.1, said “the divided bills could be sent to separate committees if the subject matter of the bills warranted such action.” The government's legislative intention, so to speak, is clear here.

With respect to Bill C-63, I would argue that two separate orders of reference would be created through the action of dividing off the Asian Infrastructure Investment Bank provisions. Once the committee stage has concluded, there is the report stage. Standing Order 69.1 is silent on this part of the legislative process. Coupled with this is the growing practice of placing all report stage motions into a single group for debate. At a minimum, I would urge the Chair, when using its discretionary authority under Standing Order 76.1(5) on the selection and grouping of report stage motions, to honour the spirit of these bill divisions to allow for the motions concerning each of the divided portions of a bill to constitute a separate group for debate at report stage.

Additionally, if the Chair permits multiple committee references, some parameters need to be established on how to proceed at subsequent stages. The most logical approach would be to treat the final report related to the bill as the conclusion of the committee stage and the trigger for the waiting period for report stage consideration.

The concerns at third reading are the same as those at second reading, so I will not repeat them.

Given the increasingly activist Senate, we also need to anticipate and prepare for it to amend these omnibus bills. Those situations will, rightfully, need to be approached on a case-by-case basis. However, the Chair should prepare for applications under the existing motion-splitting practices concerning government motions on Senate amendments.

Additionally, there is the matter of timing. My reading of Standing Order 69.1 does not reveal a deadline for seeking a division on a bill, practically speaking, other than the end of third reading debate. Obviously, a ruling cannot have retrospective application if it is made after second reading. I would be grateful if the Chair could also clarify this point in the ruling.

In closing, the government's quest for modernizing the Standing Orders without collaborating with the opposition and without the benefit of expert input on the text of its amendments has really just created a maze for members to navigate, and a mess I believe for you, Mr. Speaker, to disentangle.

I have done this before. I have a Yiddish proverb, as I always do, which reads “It is better to be embarrassed than heartbroken.” Therefore, Mr. Speaker, I have every confidence that you will get to the bottom of this and find a way to embarrass as few members as there are here, instead of breaking some hearts.

Omnibus BillsPoints of OrderRoutine Proceedings

November 7th, 2017 / 10:10 a.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Mr. Speaker, I rise today to follow up on the point of order raised by the hon. member for Carleton last Friday.

Because this is the very important provisions of the new Standing Order 69.1, it is imperative to stand and add to what the member for Carleton said last Friday. In this corner of the House, we believe that Bill C-63 is an omnibus bill as defined under the new Standing Order 69.1.

Unlike the member, we have been and remain concerned that omnibus bills continue in this place and their use boxes members of Parliament into positions where it becomes increasingly difficult to represent our constituents on various matters that various governments have lumped together.

Standing Order 69.1, which was passed in the House in June, states the following:

In the case where a government bill seeks to repeal, amend or enact more than one act, and where there is not a common element connecting the various provisions or where unrelated matters are linked, the Speaker shall have the power to divide the questions, for the purposes of voting, on the motion for second reading and reference to a committee and the motion for third reading and passage of the bill. The Speaker shall have the power to combine clauses of the bill thematically and to put the aforementioned questions on each of these groups of clauses separately, provided that there will be a single debate at each stage.

Standing Order 69.1 allows members of Parliament to represent their constituents on various specific issues and it grants the Speaker the power to group parts of legislation to allow for voting on separate items and protects all parliamentarians from the Hobbesian choice of having to choose how to vote on multiple questions, which can be contradictory.

The Standing Orders also allow for exceptions and allow for grouping in the second part of that Standing Order, which states under clause 2:

The present Standing Order shall not apply if the bill has as its main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents tabled during the budget presentation.

With respect to Bill C-63, the wording of that particular Standing Order states very clearly, I think, that a factual determination can be made. Do all of the initiatives presented in Bill C-63 also appear in the budget that was presented in March of this year?

If all of the initiatives “were announced in the budget presentation or in the documents tabled during the budget presentation” then the bill should not qualify for separate votes, pursuant to Standing Order 69.1.

If it is truly a budget bill, the Speaker should not “combine clauses of the bill thematically and...put the aforementioned questions on each of these groups of clauses separately” as called for by Standing Order 69.1.

I submit today that if Bill C-63 contains any initiative that was not included in the March budget, then the whole bill cannot be exempted under Standing Order 69.1(2), because the exemptions described in the Standing Order say that all measures must have been in the budget. I also submit that there are sections in Bill C-63 that were not in the March 2017 budget.

We found a couple more examples that the member for Carleton did not mention in his intervention last Friday.

According to the summary of Bill C-63, after the section that summarizes the changes to the Income Tax Act, the summary goes into a second list, saying, “implements other income tax measures by”, and then lists a number of measures, including, “(c) ensuring that qualifying farmers and fishers selling to agricultural and fisheries cooperatives are eligible for the small business deduction.” There is no mention in the budget speech or in the budget documents of such a plan. This, we assert, was not part of the March 2017 budget.

In the March budget, there were sections that allowed for insurance deductibility for farmers and fishers, but nothing that would change the small business deduction.

As well, the same section in Bill C-63 goes on to say, “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.” This is reflected in part 3 of the bill, which introduces amendments to section 165 of the Excise Tax Act to change how tax on mostly homemade beer is calculated.

In the documents that accompanied the budget, only one section mentioned alcohol products, and that was to talk about potential changes to implement interprovincial agreements.

In the supplementary tax measures documents, there are changes to the tax on alcohol, but nothing specific to beer from concentrate.

While the government certainly has the right to ask for an increase to taxes on beer from concentrate, it did not do so in the last budget, and therefore this bill is not a true budget bill.

Given that those two measures appear in Bill C-63, but are not mentioned in either budget 2017 or in any of the additional documentation such as budget planning or supplementary information on tax measures, I believe that Bill C-63 should be treated in its entirety as an omnibus bill as defined in Standing Order 69.1.

Remember, the Standing Order says clearly that the exemptions are only available for legislation that has as a “main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents.“

By throwing in elements that were not in the March budget, I submit the bill should be treated as an omnibus bill.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 6:50 p.m.
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NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, five minutes is not a lot of time to go over the reasons why we must oppose the bill.

To me, we must oppose this bill for many reasons, including for its lack of substantive measures for fighting tax evasion and for the problems raised a few minutes ago at the Standing Committee on Finance regarding the Asian Infrastructure Investment Bank. We have a lot of problems with this bank. It raises a lot of questions.

Let us start with the fight against tax evasion. Yesterday, there was another leak regarding the Paradise Papers. According to an army of lawyers representing wealthy Canadian clients, everything is legal, there is no problem, everything is fine. They are entitled to do this, there is no problem.

That is precisely the fundamental problem that we tried to address in question period in the House today. The government should have addressed this issue in its Bill C-63, the budget implementation bill. It failed to so yet again. There is no measure in place to make illegal what is morally unacceptable or what we might describe as legalized fraud.

They use tax treaties like the ones with the Cayman Islands and Barbados and tax agreements to avoid double taxation. Those tax information exchange agreements are supposed to give us information about taxpayers who have interests and accounts in the Cayman Islands, but the fact is, the government has had a tax information exchange agreement with the Cayman Islands since 2010. That is where Mr. Bronfman had his tax-free trust, which apparently netted him some handsome returns.

Agreements like those, like the one with the Cayman Islands, legalize what should be illegal. Those information exchange agreements were supposed to provide information to the revenue minister and the finance minister in exchange for that tax benefit, if I may call it that.

It is becoming clear that the revenue minister is once again completely in the dark with respect to the information hidden in those tax havens. She never got any information. Information leaks and data about Canadian companies and interests in that country reached her at the same time as they reached the rest of the public.

What, then, is the purpose of these tax information exchange agreements? We get no information, but those who register their trusts, their companies, their subsidiaries, and their shell companies over there get tax benefits. We get nothing at all out of the deal.

It is time for our government to step up and review our tax treaties. It also needs to review schemes like these, which allow rich taxpayers to get out of paying the Canadian government what they owe. These people benefit from our infrastructure, our roads, our public transit, and our health and education systems, but what do they give back to society in return? Zilch. They stash their wealth in overseas accounts and contribute nothing to the development of our communities and our country.

Now more than ever, it is time for the government to take action on this issue. With Bill C-63, the government missed its opportunity to take action and show that it really does intend to solve the problem. Now we see that it has been infiltrated by people who are exploiting the system and the status quo to get out of paying their fair share of taxes. Today, we really have to wonder what the government's true agenda is.

The other thing I wanted to mention is the Asian infrastructure bank. Close to $500 million of Canadian taxpayer money will go to creating a bank in China that will be controlled primarily by China. This bank will invest in Chinese interests and in privatized Chinese infrastructure projects. We saw the same thing here with the Canada infrastructure bank. This is shameful. We need to speak out against this bill for the sake of Canadians, perhaps even for the sake of people overseas.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 6:50 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

Resuming debate. The hon. member for Sherbrooke will have five minutes of speaking time today. He will be given another five minutes when the House resumes debate on on Bill C-63 at a later date.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 6:50 p.m.
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NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, my colleague talked a lot about workers in Hamilton and protecting workers' rights, and also today, my colleague from Hamilton Mountain introduced a bill to protect pensions.

I would like to know my colleague's opinion, considering that in the 2015 election campaign, she promised many things to her constituents in Hamilton. I would like to hear what she told them about protecting workers' pensions and what she has to say to them now about the fact that, since this government came to power, it has not introduced any bills that include amendments to better protect workers' pensions, like the workers in Hamilton. Bill C-63 also does nothing in that regard.

What does she have to say to them?

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 6:35 p.m.
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Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, it is a great honour for me to rise today to speak to Bill C-63.

This bill is excellent news for my constituents in the riding of Hamilton West—Ancaster—Dundas and for our ambitious city of Hamilton. Our city properly earned the title of “ambitious city”. It is a city that is on the move, with one of the hottest real estate markets in Canada and one of our city's lowest unemployment rates since 2015. At the heart of Hamilton's success is a new wave of investments from our Liberal government, from the private sector, and, of course, the new wave of entrepreneurship that is happening.

Since the beginning of this government's mandate in 2015, more than 89,000 children in the city of Hamilton have received tax-free payments, equalling a total of $30 million, through the Canada child benefit. That is absolutely fantastic news for middle-class Hamiltonians and it is amazing news for our children. I am proud that our government has worked so tirelessly to help raise these children out of poverty. It gives me immense pride to see that through Bill C-63, we will be strengthening the CCB.

We are reaffirming our belief that by investing in the middle class, we are strengthening and growing Canada's economy, which, by the way, is the fastest growing economy in the G7.

I would like to highlight the provisions in Bill C-63 that put in place measures to give greater flexibility to Canadians working in federally regulated industries to balance work and family responsibilities, such as greater flexibility for annual vacation days and holidays, more bereavement days in the event of losing a loved one, and more unpaid leave for family responsibilities.

Our government recognizes the importance of having strong labour rights for Canadians. One just has to look at our current NAFTA negotiations to see that our government is fighting the good fight for workers' rights. Through Bill C-63, constituents in my riding like Cathy, who works for the CRA, will have improved rights. By providing employees with the right to request flexible work arrangements from their employers, by providing employees with family leave, by providing a leave for victims of family violence, by providing a leave for traditional indigenous practices, and by modifying certain provisions related to work schedules, overtime, annual vacation, general holidays and bereavement leave in order to provide greater flexibility in work arrangements, this government is demonstrating its commitment to our dedicated civil servants. Workers' rights are extremely important to me and my constituents in Hamilton West—Ancaster—Dundas.

I was recently contacted by a grade 5 student in my riding. Her name is Natalya. She asked me what our government was doing that made me proud. I was delighted that a grade 5 student was reaching out to me, engaged, wanting to know what I felt most proud about with respect to what our government was providing. I was very happy to share with Natalya the many things that our government had done that made me extremely proud. We have a strong record and the strength of the economy is evidence of that.

Today, the provision for workers' rights in Bill C-63 also makes me exceptionally proud. For decades, Canadians and Hamiltonians alike have fought for fair workers' rights and this provision is helping to enhance workers' rights and needs. The provision provides for people in a time of need when they feel most vulnerable and fragile, the loss or sickness of a family member, or the experience of domestic violence. It also acknowledges the importance of indigenous spiritual practice. The bill would help the marginalized as well as recognize indigenous spiritual practices.

Bill C-63 would also make important investments in clean technology. This legislation is going to take the next steps for innovators and creators. Our government's innovation and skills plan focuses on individuals, and addresses the changing nature of the economy to ensure it works for all Canadians.

Bill C-63 would enact key sections of our plan, such as $600 million in new financing for clean technology firms. Our government is also showing that being responsible stewards of the environment that our children will inherit and creating prosperity are not mutually exclusive. Rather, we are proving that being green and growing our economy go hand in hand to create health, wealth, and a prosperity for all Canadians.

Bill C-63 also designates $400 million for the venture capital catalyst initiative. As I mentioned earlier, my beloved city of Hamilton is becoming a Canadian hotbed of innovation and creativity. Indeed, Hamilton is an attractive place to live and start a business. It offers many attractive circumstances to investors and people who wish to move: more affordable housing than its sister cities a short drive east down the QEW; an easily accessible nature trail system that takes one to the most beautiful spots that are largely unspoiled in the Niagara Escarpment, in which Hamilton is nestled; the nearby world-famous Niagara wine region; its three major post-secondary institutions, McMaster, Mohawk, and Redeemer; and the fact that it is a major transit hub. All of these facts mean that Hamilton is home to a rapidly growing number of innovators and creators.

One only has to look at the growing number of start-up incubators and young professional networks that are mushrooming to see that this is true, whether it is Hamilton's innovation factory working with small business people to help them grow, Hamilton HIVE, which is a growing network of young professionals who are succeeding in the business world and teaching young people how to succeed as well; The Forge at McMaster University, which supports new tech companies and students interested in entrepreneurship by providing co-working space at McMaster Innovation Park in downtown Hamilton; other innovation co-working locations like CoMotion 302 or The Seedworks Urban Offices, which are providing space and allowing community start-ups to thrive; or the CoBALT Connects, which is both a network of spaces and people for artists to work and create in.

All of these things show that Hamilton is open for business for start-ups, innovators, and young professionals. The $400-million venture capital provision is outstanding news for them. Our 21st-century economy needs these fire starters and innovators. We need their ideas, their hard work, and their passion.

Let me talk about one of Hamilton's young fire starters. I recently met with Geordie, a McMaster graduate who started his own tech firm. He took a huge risk starting his own small business, but he had a brilliant idea, and with hard work and determination, his idea has taken off. Now he employs many middle-class individuals, and collectively their ingenuity and visionary outlook on life are having a positive impact on our society. I am proud that we are lowering the small business tax rate to 9% by 2019, and also extremely pleased that we are investing in small tech firms like Geordie's.

Our government recognizes the fantastic work that our tech sector adds to our industry. It is fantastic that our government is making such a significant investment in venture capital to help create the conditions for success for these brilliant and creative minds. They are creating the businesses that will ensure the future of meaningful, well-paid, middle-class jobs and prosperity for Hamilton and Canada.

This bill introduces many measures that make me confident that our government is a careful steward of workers' rights, entrepreneurship, and our economy. Bill C-63 is good for Hamiltonians and Canadians.

Budget Implementation Act, 2017, No. 2Government Orders

November 6th, 2017 / 6:20 p.m.
See context

Conservative

Sylvie Boucher Conservative Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC

Mr. Speaker, I am always pleased to rise in the House, especially to speak to the fall economic statement.

I want to begin by thanking my leader for the excellent speech he gave today for the 150th anniversary of what we have become. He demonstrated beyond a shadow of a doubt that he is a statesman. I am very proud to stand side by side with him. He is a great man.

Let us talk about the fall economic statement. This fall, we were treated to even more scandals. Unfortunately, I think that the Minister of Finance has lost the confidence of the House. He should have done the right thing. He is responsible for the country's finances, but he hides his assets from Canadians. Every member is required to declare all their assets to the Conflict of Interest and Ethics Commissioner within 90 days, but it took him two years to do so. It is unbelievable and very troubling. We have been asking questions for over a month, but as everyone likes to say, it is question period not answer period. We have yet to get an answer from across the way.

Yesterday, we learned of the existence of the Paradise Papers. Who is named in these papers? The Liberals' friends. If anyone was wondering if the Liberals learned anything during their 10 years in purgatory, the answer is probably not.

At the time of the Gomery commission, I was working at the National Assembly and had friends who worked for the Liberal Party. Today, those friends say that the more things change, the more they stay the same. It saddens me, because they used to be staunch Liberals, and they lost their jobs because of the Gomery commission. I believe that the more we dig, the closer we get to a second Gomery commission. That would be sad.

I liked what my NDP colleague said about the fall economic statement, that the most striking thing about it is what it does not say. It has nothing to say about farmers. They are not mentioned at all. They got $250 million, far less than we Conservatives had promised them. Let us talk about that $250 million. Within a week, there was not a cent left. Farmers are still coming to see us at our constituency offices because they do not understand why this program only lasted five days. I do not understand it either.

The 9% tax cut the member opposite was talking about is all well and good, but it was not even the Liberals' idea. It was Stephen Harper's government that wanted to do that 9% tax cut. They took that idea from the Conservatives and put it out there as their own. That is what bothers me. It is one thing for them to come up with their own ideas, but I would like them to be honest and say that this was not their idea. They have set themselves up as saviours, but they stole that idea from the Conservatives because they could not come up with an idea of their own. That is pathetic.

The Liberals have to look at other parties' platforms to come up with their own. Maybe they should give that some thought, because what we are seeing nowadays is pretty pathetic.

What saddens me is that the more things change over there, the more they stay the same. I am not saying there is nothing good in Bill C-63. Some things in it are good, but many more are bad. The Liberals should have split the bill in two so we could vote on the parts that make sense. As it whole, it does not make sense.

I will not vote in favour of a bill that does not give Canadians the truth. We are getting used to this now because the Liberals are often all about the smoke and mirrors, but dig a little deeper, and things start to not make sense. It is sad because this is no longer the Liberal Party of Canada; it is a one-man party, the Prime Minister's party. His selfies are all over the place. I am sure Canadians are picking up a hefty tab for all those photos. I think that is a real shame.

The Liberals are claiming these are the facts, but that cannot be entirely true; either that or there are still things we do not know, because the parliamentary budget officer, or PBO, is saying exactly the opposite. He is saying that over 80% of middle-class Canadians are paying more tax than before. This statistic comes from the PBO, not us, and the Liberals over there are trying to tell us that that is not actually true.

We are used to seeing the Liberal Party give with one hand and take away with the other, but one day they are going to have to be consistent. If they cannot come up with sensible tax breaks of their own, they are going to have to stop pretending that they have. They are taking things from another party's election platform because they are unable to keep up with the times.

What saddens me most is that the Liberals are not listening to Canadians. They travelled around a lot. They did a bunch of consultations, but they did not listen to anyone they consulted. The same thing happened with small businesses. The official opposition parties had to rise in the House and organize round tables for the Liberals to realize they were headed in the wrong direction. People had to badger and hurl questions at them for three straight weeks before the Liberals finally came to the realization that what they were doing made no sense.

For three weeks now, practically a whole month, we have been asking questions about the finance minister's ethics. The finance minister is the one who manages Canadians' money, and yet he cannot even answer our questions, even now that the Paradise Papers scandal has erupted. There will come a point where the more newly elected Liberals, who were not around for Gomery and who certainly do not want to end up in a similar situation, will have to start asking questions. Perhaps they will get more answers than we have been getting.