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

[Gary Anandasangaree, Liberal, Scarborough—Rouge Park, ON]

Mr. Speaker, as the member of Parliament for Scarborough—Rouge Park, I once again rise to continue the discussion on Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures.

I was talking about the economy, and I highlighted some of the work of our government had done with respect to tax fairness.

I now want to touch on something that is very close to my heart and certainly something that affects each and every member, which is the Canada child benefit.

In July of this year, according to statistics that were recently provided to me, 9,170 payments, benefiting 16,160 children, were made through the Canada child benefit in Scarborough—Rouge Park. An average payment in Scarborough—Rouge Park is $630 per month, or $5.754 million just for this year. If we look at it over four years, it works out to a significant amount of money. I am quite proud to say that this has had a game-changing effect in my community and I am sure in other communities across the country.

Many people in my community are unable to afford to send their children to extracurricular activities. There are housing issues in Toronto. In the eastern part of Toronto, especially, housing is quite expensive, with a high cost for basic services such as the Internet and telephone. The Canada child benefit will assist many families to support their children better than they were able to before.

This is a very important aspect of our platform. Enhancements to this were proposed recently in the fall economic statement by the Minister of Finance, such as the acceleration of indexing of the Canada child benefit to inflation in two years, starting in July of 2018, with an additional $5.6 billion in support of Canadian families over 2017-19. For a single parent, with two children, making $35,000 a year, this will mean an additional $560 more next year.

In addition to the Canada child benefit, there are also enhancements to the working income tax benefit. It is a refundable tax credit that cuts tax for eligible people in the workforce and encourages others to get a job. It will be an additional $500 million per year, starting in 2019.

I want to dive into the substantive parts of the legislation and talk about several aspects of it.

First are the amendments to the Canadian Labour Code to improve the rights of workers. We have introduced these measures to ensure people can have flexible work arrangements. All employees working for more than six months have the right to ask for changes to the number of hours they work, the location, and schedule, among other things if they work in a sector that is regulated by the federal government.

Employers must respond to requests within 30 days and employers are prevented from disciplining employees. If the employer does not accept their request, it is required to give a written rational for its decision and refute the request on legislated grounds.

We have expanded family leave to three days to aid family members suffering from health issues, or for educational purposes, as well as leave for victims of family violence who can receive 10 days of leave to seek medical or psychological help, family services, relocation services, and to seek law enforcement assistance.

Also important is the introduction of five days leave to engage in traditional indigenous practices. I sit on the indigenous affairs committee. It has been a great opportunity to learn important aspects of indigenous culture. Over the last two years, it has been clear to me that the current workplace environment and systems in Canada do not reflect, respect, nor give space for the traditional practices of our indigenous brothers and sisters. It is important to ensure those in the workforce are able to take time off to engage in traditional indigenous practices.

These are very important measures.

To quickly summarize, this is a very important aspect of our platform. It is the second phase implementing the budget introduced by our finance minister, which has been great for the economy, as it has allowed for a more equal playing field and reduced the gap between the poor and other Canadians. It is aimed at enabling Canadians to live in harmony without having the large income disparities that we see in other countries, which often trigger social unrest.

The House resumed 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.

Business of the House

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, this morning we started second reading debate on Bill C-63, the budget implementation act. We will continue debate on this legislation this afternoon.

Tomorrow we will commence second reading debate of Bill S-5, concerning amendments to the Tobacco Act.

On Monday, Tuesday, and Wednesday of next week, we shall continue with debate on the budget bill. Last Thursday I indicated to the House that we would allot four days of debate at second reading, which means we would expect the vote to send the bill to committee to take place on Wednesday evening. I would like to thank opposition House leaders for their co-operation in finding agreement on this timeline.

On Thursday, we will resume debate on Bill C-45 on cannabis, and hope to conclude the debate at report stage. We will also be working to pass Bill C-17 on the Yukon before the next constituency week.

Taxation

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, displacing artifacts like that and bringing them here is an outrage.

Bill C-63 revealed that the government wants to start taxing pot. That is another way of stirring up trouble in Quebec and lining their own pockets. We know that Quebec, not Ottawa, will have to pick up the tab for costs related to health and security.

Will the government promise to leave that money to Quebec, or will it once again try to line its own pockets without even doing a thing?

Budget Implementation Act, 2017, No. 2

[Gary Anandasangaree, Liberal, Scarborough—Rouge Park, ON]

Madam Speaker, I thank my friend from Gatineau for his speech.

I am very proud to rise this afternoon to speak on Bill C-63 , a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures.

I want to start by acknowledging that we are gathered here on the traditional unceded lands of the Algonquin people.

This is the first time I am actually making a full speech since my good friend and mentor Arnold Chan passed on September 14. I do want to take this opportunity to remember him and to reflect on his enormous contribution to Canada, and express my continued support and love to the Chan-Yip family.

I want to congratulate the Minister of Finance on directing such a great job on our economy. I know there is limited time for me to speak before question period, so I want to just have the first part of my speech contextualize the position of our economy today, two years since our government took office.

It is very clear that our policies are indeed working. In the past four quarters alone, the Canadian economy grew at the fastest rate since 2006. The average growth was 3.7% for the past four quarters. The economy created 450,000 jobs since late 2015. That is a remarkable number to reflect on.

The unemployment rate is the lowest it has been since 2008. This economy is projected to continue growing with a forecasted growth of 3.1% annually, the fastest growth rate in any of the G7 countries.

We have the lowest debt-to-GDP ratio of any G7 nation. The economy is directly benefiting from our progressive economic policies. Our aim is to reduce the gap between the rich and the poor, and build a middle class that will be the engine of this country. We want to ensure that no one is left behind, and, yes, that will mean that those with the ability to pay more ought to pay more.

Members may recall the measures that our government has put in with respect to where the economy has now landed. First, with respect to the middle class, we have lowered taxes on the middle class. We have put more money into the pockets of people who drive the economy. We have cut taxes for nine million Canadians.

The Canada child benefit has been an enormous source of strength to our economy. I look forward to picking up on that and elaborating more on its benefits to my riding.

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

Madam Speaker, the member mentioned what she considers to be the omnibus nature of this budget implementation bill. I do not doubt her expertise about omnibus bills. For 10 years she was under the Harper Conservatives, who dropped the largest BIA in the history of this Parliament, so she knows a fair bit about omnibus bills.

We are not modifying the navigable waters act, as those members did while in government. As far as I am concerned, everything is related to the budget.

I would like to ask my colleague what specifically in Bill C-63 does not relate to the budget. I have heard her talk about taxes, about excise taxes. I have heard her talk about everything that is related to the budget. How can she frame this to be an omnibus bill when everything is related to the budget and its implementation? Again, I do not doubt her expertise about omnibus bills. She has seen a lot of them.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Madam Speaker, as the member of Parliament for the upper Ottawa Valley riding of Renfrew—Nipissing—Pembroke, I take this opportunity to thank my constituents for the trust they have placed in me to represent their interests in the Parliament of Canada. I am here to serve them.

Democracy is under attack in Canada with the tabling of Bill C-63, the omnibus bill before this chamber today. It is under attack by a complicated financial piece of legislation that is 254 pages long. The budget bill before us, Bill C-63, should be split into 10 bills, rather than the single bill that was dumped onto Parliament.

Only by allowing the Conservative government-in-waiting, and all Canadians, the opportunity to properly scrutinize government legislation will Canadians be assured that the federal government deficits are not being used to pad the pockets of party insiders. The omnibus bill requires extensive and proper study. Huge dollar amounts are being spent and taxed in this legislation. Canadians, who are alarmed at the constant erosion of their personal liberties, are being over-regulated and overtaxed, and they see this type of interventionist, budget deficit legislation as the wrong direction for Canada.

This legislation claims it will be “closing loopholes surrounding the capital gains exemption on the sale of a principal residence”. What exactly does that mean for the average, middle-class Canadian, who is so unlike the current finance minister? The finance minister controls, through some complicated tax avoidance scheme, a private corporation that owns a villa in the south of France for his personal use and enjoyment, something he conveniently forgot to disclose to the Ethics Commissioner until now. He was forced to confess it after a CBC story outed him, which resulted in his pleading guilty to breaking the law.

For a family struggling to make ends meet and trying to start a business out of their home, does it mean they will lose their personal capital gains exemption? Average, middle-class Canadians cannot afford the cost of setting up complicated tax avoidance schemes using half a dozen numbered companies to hide a French villa, and who knows what else. If their home business fails due to over-regulation and over-taxation, will they get to claim a tax deduction against their high income tax bill?

What will be the dollar value of the tax collections quota that the new tax collectors hired as a result of the most recent economic update are required to shake down from taxpayers? Were they hired to go after home-based businesses or can Canadians expect other tax increases by stealth? For example, there is the decision to go after family owned campgrounds. How many taxes does the Liberal Party intend to collect from closing the so-called personal residence loophole?

Every proposition has a price tag. We know that the government has a figure. Average, middle-class Canadians have a right to know what it is.

What about the line in the bill with respect to beer made from concentrate on the premises where it is consumed? Unlike the finance minister, who heads to his private villa in the south of France to pursue his taste for fine French wine, for the average middle-class, working man, Canadian beer is their beverage of choice. That is certainly the case in the upper Ottawa Valley. The Liberal complaint seems to be that someone might otherwise be getting a slight break on the price of a beer. As usual, the Liberals have the wrong approach and they have hired a bunch of new tax collectors to pursue their wrong approach.

Why is wine made from concentrate not a tax target in Bill C-63? Why is beer only being overtaxed by this finance minister? The Conservative approach to this manufactured excuse to raise taxes on beer is to lower taxes specifically on beer that is already subject to high taxation. In the last few years the upper Ottawa Valley has seen the growth of a vibrant craft brewery trade. Typical of the liberal, deficit-obsessed big government mentality, the success of the craft breweries have made them a Liberal tax target.

A lot of hard work goes into starting a small business, something that is not appreciated by a government that has $212,234 to spend on a glossy front cover for its deficit budget document.

Democracy is under attack in Canada. It is under attack by an arrogant Prime Minister through his refusal to be held accountable during question period in Parliament. It is under attack by his unwillingness to fire his finance minister, who has so far admitted that his personal fortune has increased by $14 million since he took office. I say so far, because Canadians are in the dark as to the full extent to which the finance minister's personal financial holdings have increased and continue to increase.

Now that the finance minister has admitted to breaking the Conflict of Interest Act by pleading guilty to his convenient lapse of memory regarding his European villa, his removal should be automatic. His continued refusal to disclose the vast holdings in his collection of numbered companies sends a clear message that he is hiding something from Canadians.

Rather than practise open government, the finance minister has acquired a Liberal insider from Toronto as his chief of spin, Ben Chin. Who is this Ben Chin who has been hired by the finance minister to spin the truth for him? Chin is a failed Toronto Liberal Party candidate who was rewarded for losing to an NDP candidate with a position as an insider and a fixer alongside Gerald Butts, the Prime Minister's current hatchet man, when he was at Queen's Park in Toronto.

Chin's claim to fame happened after he landed a plush patronage job at the Ontario Power Authority at a $247,000 salary, paid for by Ontario's overtaxed electricity ratepayers. One of the schemes he was able to set up was a twisted conservation incentive program called Air Miles for Social Change. Data mining is one of the reasons loyalty programs are set up. The personal information acquired has an attractive resale value to groups like political parties.

The Ontario Power Authority's initial deal with Air Miles was intended to be only from the spring of 2010 until the end of that year, but there was an option for the OPA to extend that relationship. Under Ben Chin's supervision, the program was extended.

One of the beneficiaries of the Ontario Power Authority's new relationship with Air Miles was the charity World Wildlife Fund Canada, then headed by current Prime Minister insider—surprise, surprise—Gerald Butts. The Ontario Power Authority provided the option for participants in designated conservation programs, who were Air Miles collectors, to pledge their Air Miles rewards to—surprise, surprise—the World Wildlife Fund Canada.

In the context of today's discussion regarding omnibus tax-and-spend legislation and who benefits, a powerful statement is being made by the ethically challenged finance minister when he turns to someone with a reputation as a Liberal insider like Ben Chin. Chin adds to the finance minister's shattered reputation.

Chin and Butts, since they were associated with the Liberal Party in Toronto, are responsible for energy poverty that is now a fact of life in Ontario: heat or eat.

Rather than address the real reasons for energy poverty in Ontario, this is a government that goes into huge deficits with Bill C-63 to send borrowed Canadian dollars to China for the Asian Infrastructure Investment Bank.

What about infrastructure in Canada? I know of more than a dozen municipalities that desperately need infrastructure repairs in Renfrew—Nipissing—Pembroke. They do not have the luxury of endlessly raising taxes or unlimited borrowing to fix their streets and sewers.

Governments should be concerned about the needs of Canadians first before chasing foreign money schemes that are designed to make the rich richer.

This is what a smart observer had to say about the finance minister's new spin doctor:

Ben Chin’s electricity career helps to illuminate the real purposes driving those with their hands on the levers of power in Ontario’s electricity system.... Ontario was establishing itself as a massive electricity exporter, selling enough discounted and often free power to neighbouring jurisdictions to power substantial cities.... The conservation PR that Chin was engineering was focused on a different kind of power.

Democracy is under assault in Canada by the federal government's fiscal policies.

[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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I want to be clear about that.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I would like to take a few seconds to congratulate my colleague on his excellent speech. He described the economic system that the Liberal government appears not to grasp in simple terms everyone can understand.

What I take away from my NDP colleague’s remarks about Bill C-63 is the word “skepticism”. The Liberal government has lost all credibility in matters of public finance and taxation since it was elected and promised to run very small deficits. Remember that, during the 2015 election campaign, the Liberal Party promised to run very small deficits and to balance the budget by the end of its term in 2019. It also promised that the deficit would never exceed $10 billion.

However, in their first budget, their first opportunity to keep their first important promise, what did the Liberals do? They loosened the purse strings, revved up spending, and forgot their promise. Now, two years after they were elected, they are announcing that they will run a deficit of almost $20 billion this year. That is twice the limit they set for themselves in 2015. They also say they are projecting deficits in excess of $10 billion in the coming years. Skepticism is what we feel when this government talks numbers.

On this side of the House, we believe in responsible government spending, tax breaks, and making life more affordable for all Canadians. We know that it is unacceptable to ask future generations to pay for today’s spending. It is especially unacceptable to ask future generations to pay for the Liberal government’s out-of-control debt, especially when we are talking about tens of billions of dollars. Let us keep in mind that, last December, the Department of Finance found that the federal debt could double, to reach $1.5 trillion. I never thought I would use this number in the House. By 2050, the federal debt could reach $1.5 trillion. That is $1,500 billion that our children and their children will have to pay, because the government is acting totally irresponsibly today.

Even worse, the government says that it will never formally return to a balanced budget. In the fall economic statement, the Minister of Finance announced huge deficits for the next six years. Unfortunately, an important section is missing: there is no plan to return to a balanced budget.

The government has announced massive deficits for at least the next six years, and it has no plan to get the country out of its huge tax hole. Why does the government think that Canadians would accept such a situation? That is not what they voted for in 2015; they did not vote for a $1.5-trillion deficit in 2050.

Clearly, when it comes to the deficit, every penny over $10 billion is a promise to Canadians that has been broken. If we count every penny over $10 billion, it comes out to 990 billion broken promises this year, 860 billion broken promises next year, 730 billion broken promises the year after that, and all the way to 2050. Billions of broken promises for every penny over the estimated $10-billion deficit.

These broken promises are just one more item in a long list of disappointments. The list has become extremely long and includes the broken promise of electoral reform, the inadequate protection of the dairy industry, the failure to reach a softwood lumber agreement, Omar Khadr, and ethics issues in the cabinet. I would like to remind you that this is the first time in history that a minister of finance and a prime minister are facing complaints and being investigated by the Conflict of Interest and Ethics Commissioner. It is unprecedented that the two most important people in the government are being investigated by the Conflict of Interest and Ethics Commissioner.

We never get answers to our questions. I remember that we once spent an entire question period asking the Prime Minister for a simple answer to a simple question: how many times had he met with the Conflict of Interest and Ethics Commissioner?

He has not once answered this question. We asked the Minister of Finance to acknowledge that he placed himself in a conflict of interest right here in the House, before Canadians and members of Parliament. He never answered.

Yesterday we learned that he paid a $200 fine for having been in a conflict of interest. How can we trust a government that is not even capable of answering members of Parliament, telling the truth and answering simple questions? He got caught with his hand in the cookie jar and is content to merely pay a fine. To put a lid on the issue and try to get people to forget that he committed an offence, the Minister of Finance even had the gall to try to buy Canadians’ and the opposition’s silence by saying that he would donate $5 million to charity. I do not believe anyone on this side of the House can be blamed for being skeptical.

The government always thinks that the answer to its problems is to raise taxes on Canadians. Since it took power, taxes have been rising, affecting health and dental insurance benefits, personal savings, hydroelectricity, gas, heating, farmers, medical treatments that save lives, small and medium-sized businesses, people with type 1 diabetes, etc. The list keeps getting longer. Why?

After learning that the deficit could reach $1.5 trillion over the next four decades, someone undoubtedly asked the Minister of National Revenue to find some money somewhere. For the government, the easiest way to find money is on the backs of those who are most in need, those it has been saying it wants to help since the outset, but that it continues to harm.

According to a report by the Fraser Institute, since 2015, more than 80% of middle-class Canadians, the same people the government claims to want to help, have been paying higher taxes. These are the facts, and they come from the esteemed Fraser Institute, not us.

Charles Lammam and Hugh MacIntyre, co-authors of the report, said of the government’s track record that, as is often the case with Liberal governments, its rhetoric is far removed from the facts on the ground. They say that, despite the government's many claims to the contrary, it has increased personal income tax for the vast majority of middle-class families.

Given all the facts, the Liberal government’s rhetoric, and its promises, it is clear that it says the opposite of what it means, something it has been doing more and more, unfortunately. When it says that it is on the right track, then I think there is real cause for concern. Indeed, they may say we are on the right track, but our children and their children will still have to pay for the Liberals' actions.

Across the aisle, they will say that the economy is doing well and that it continues to grow, but it is important to remember that the economy is growing despite the Liberals’ actions, not because of them. Infrastructure projects and investments have been on the decline, not on the rise. In August, the parliamentary budget officer confirmed that grants and contributions made by Infrastructure Canada to provinces carrying out infrastructure projects were essentially stagnant, with no increases over last year. Not only does this mean that there is less money to improve roads and bridges in our communities, it also shows the government’s lack of commitment and, once again, Canadians’ skepticism.

The Liberal government’s out-of-control and poorly thought out spending and its lack of concern for the growing tax burden it is imposing on Canadians are fundamentally unacceptable. The Canadian economy requires a different approach from the one proposed by the Liberal government, which is forgetting the impact that its out-of-control spending will have on economic security and future generations in our country. For that reason, I will obviously not be supporting Bill C-63.

I ask the government to see reason, answer the opposition’s sensible and simple questions and tell Canadians the truth.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Mr. Speaker, I believe that the Minister of Finance is often here for oral question period.

It is an honour for me to be here to introduce this important bill. My colleague, whom I hold in high regard, ought to be pleased to see me do so, as we now have an opportunity to discuss a bill that is important to Canadians. As everyone knows, since taking office, we have presented two key budgets.

In budget 2016, we introduced the Canada child benefit, which is reducing child poverty by 40%, but the NDP voted against that, which still surprises me. It is an honour for me to come here and talk about our budget initiatives, from both 2016 and 2017, that have put Canada back on track for growth, job creation, and prosperity, but above all, for inclusive prosperity, which is particularly important to me. For decades now, we have seen an increase in inequality and income disparity. When we came to power, we made sure to put Canada back on track for growth that is good for the middle class and for all Canadians.

We know that the more we reduce inequality and the more we help those in need, the more we grow our economy. That is what we did in budget 2016, and that is what we are doing in budget 2017. My NDP colleague should like some of the measures in Bill C-62, including the proposed guidelines for unpaid federal internships, which will ensure that young Canadian workers have more rights.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I congratulate the member for getting to Bill C-63. I certainly appreciate that contribution to this place. I think we can have a good debate.

The government has deemed it important to cut off access to work in progress for professionals such as lawyers. I have met with advocates and law society members who have said that this change will make it more difficult for people seeking legal representation, whether due to a car crash or a health issue. These lawyers operate on a contingency basis and will be forced to pay tax on work they have not received any income for. Other clients are going to have to subsidize those activities to pay these taxes when there is no firm way for them to pay them, unless they win their case. These are some of the most vulnerable people.

Does the member recognize that the government has made accessing proper legal representation in rural areas more difficult? Could he explain why he is making this change?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Mr. Speaker, as I was saying, job creation is strong, with over 450,000 new jobs created in the last two years, and the unemployment rate is at its lowest level since 2008. Youth unemployment is also at a historic low.

Canada is now the fastest growing economy in the G7 by a wide margin, growing at an average rate of 3.7% over the last year, the fastest pace of growth since early 2006. Growth is forecast to be 3.1% in 2017, significantly above expectations at the beginning of the year. The fiscal outlook has improved by more than $6.5 billion annually on average from what was projected in budget 2017 last March. This is why we are here today, to consider and discuss the important measures contained in Bill C-63.

I will describe just a few of the key elements briefly, and I encourage the member opposite to pay close attention.

I will start with our help for the middle class and those striving to join it.

This budget implementation bill supports the middle class and those working hard to join it by protecting the rights of federally regulated workers when they request flexible work arrangements from their employers. Flexible work arrangements include flexible start and finish times, the ability to work from home, and new unpaid leave to help employees manage their family responsibilities.

These work arrangements benefit many women who continue to do the majority of unpaid work in the home. Budget 2017 was the first budget in Canada's history to include a gender statement. It seeks to present a frank and honest analysis of the impact the budgetary measures will have on women.

The government believes that having a meaningful and transparent discussion around gender and other intersecting identities will help us better understand the challenges that are faced, and will help it make informed decisions to advance the goals of gender equality, fairness, and stronger workforce participation.

The government also recognizes that youth today face important challenges when it comes to finding and maintaining good, well-paying jobs. While internships can give young Canadians the hands-on work experience they need to make a successful transition into the workforce, some internships, in particular those that are unpaid, can be unfair and exploitative.

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 will also ensure that unpaid interns who are part of an educational program are entitled to labour standard protections, such as on maximum hours of work, weekly days of rest, and general holidays. It is the right thing to do for our young people trying to gain necessary work experience to enter the labour force.

With regard to tax measures, the budget implementation bill begins to implement changes arising from the government's in-depth review of federal tax expenditures in order to make the tax system simpler, fairer, and more efficient.

Bill-based accounting was examined as part of the tax expenditure review. Bill-based accounting allows taxpayers to defer taxes by permitting the costs associated with work in progress to be expensed without the matching inclusion of the associated revenue.

In the 1980s, bill-based accounting was eliminated for all professionals except those designated under the law. At the time, these professionals had limited access to the small business deduction. Since those restrictions no longer exist, this measure eliminates the ability of designated professionals to use bill-based accounting.

We are listening to Canadians. In response to feedback and to mitigate the effect this measure will have on taxpayers, the inclusion of work in progress into income for tax purposes will now be phased in over four years rather than just two.

The government is also proposing changes to the principal residence exemption. The current income tax system provides a significant income tax benefit to homeowners disposing of their principal residence, in the form of an exemption from capital gains taxation. The principle residence exemption is available only to Canadian residents, individuals, and trusts.

Families are able to designate only one property as the family's principle residence for any given year. The government is proposing amendments that will improve the integrity of the tax system and ensure improved tax fairness for homeowners. An individual who was not residing in Canada throughout the year and acquired a residence will not be able to claim the exemption for that year. The ability of trusts to designate a property as a principle residence will be limited to improve fairness and integrity by better aligning the rules applying to trusts with the rules that apply when the property is sold directly by an individual.

Finally, more reporting will be required in respect of the disposition of a property for which the principal residence exemption is claimed. The Canada Revenue Agency will be provided with the authority to assess taxpayers beyond the normal assessment limitation period in respect of unreported dispositions.

The government is continuing to propose measures to ensure fairness for all taxpayers.

By developing in a cleaner, more sustainable way, Canada's natural resource sector will be able to keep making significant contributions to the Canadian economy. The success rate of exploratory drilling has grown considerably since the 1990s. In most cases, discovery wells now lead to production. Under the provisions of the bill before us today, consistent with the usual treatment of enduring assets, expenses associated with oil and gas discovery wells will be treated as Canadian development expenses, unless the wells are deemed unsuccessful.

By improving the tax system's neutrality, this measure supports Canada's international commitment to phase out inefficient fossil fuel subsidies and indirectly supports the federal sustainable development strategy's measures and goals, including reducing greenhouse gas emissions.

Canadians and indigenous peoples deserve to know that their government is doing everything in its power to protect the natural environment while supporting our economy. Our government intends to meet its objective of having a low-carbon economy and this is a step in that direction. This bill includes tangible measures that will move Canada forward as a smart and compassionate country. The government plans to strengthen the middle class and ensure that Canadians have the support, resources, and confidence they need to succeed, create jobs, and keep our economy growing.

Growing the Canadian economy helps the government to improve its record. Canada's financial situation remains solid and the government will see to keeping the debt-to-GDP ratio on its downward trend in order to preserve Canada's financial health and allow us to continue investing in those who contribute to our country's success. Every Canadian deserves to benefit from this economic growth. The government has lowered taxes for middle class Canadians and has committed to ensuring that the tax system does not offer unintended benefits to the wealthiest Canadians, or those with a high income. I urge hon. members of the House to vote for this bill that will benefit all Canadians.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I rise on a point of order with respect to relevance. This member and I have gone through this a few times. He brings out talking points, which it seems he is recycling from last week's fall economic update.

Bill C-63 has many measures, and the member has not touched upon a single one yet. I wonder if he has read the bill or if he is embarrassed to talk about what is not in the bill. He is talking about things that are completely not benign to the discussions today. As he is leading off the debate, I would ask the member to actually devote some time to Bill C-63.