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.

Report Stage

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, I am pleased to rise this afternoon to speak to Bill C-63, a budget implementation bill, and all the great investments that budget 2017 will make for people, communities, and industries from coast to coast to coast.

Bill C-63 is just another step forward in meeting the commitments we made to Canadians back in 2015: strengthening and protecting our middle class, growing our economy, and helping those Canadians who need it most. Since the campaign, we have held strong to those values, and we saw in the fall economic update that it is working.

Since 2015, we have created over 500,000 jobs in Canada, most of which are full-time. Unemployment in Canada is down to 6.3%, which is the lowest this country has seen in many years. Canada is now the fastest growing economy in the G7, and it is because our government is investing in the Canadian people and our communities. It is because of this positive approach that we as a government are able to continue investing in middle-class families, in hard-working Canadians, and in small businesses.

The finance minister announced in October that, because of this growth, our government is going to reinvest in our Canada child benefit two years ahead of schedule by making annual cost-of-living increases to the CCB starting in July next year. For all the families in my riding of Avalon, the Canada child benefit gives them the extra money they need to ensure that raising their children is a little easier. For these families, knowing that they will receive an increase in their monthly benefit will mean that they will have the comfort they need to grow and thrive.

As of July 2017, the Canada child benefit monthly payments in my riding have totalled over $3.8 million, helping over 13,000 kids and their families. This is the type of investment that truly matters to Canadians, especially to the constituents in my riding of Avalon.

Along with strengthening the CCB, we are also enhancing the working income tax benefit by investing an additional $500 million per year, starting in 2019, and cutting the small business tax down to 9%. We know that, by helping our small businesses and hard-working Canadians, our communities and their associated industries will continue to thrive and push our economy in the right direction. The actions that our government has taken this year to support regions like mine and the people within them have been well received by my constituents.

In budget 2017, our government committed to strengthening the employment insurance program by extending the program to caregivers, which would now give them up to 15 weeks of benefits when they need to take time off to care for loved ones. We have invested $92 million to meet the increased demands in claim processing and given more flexibility for parents who use the program for maternity leave. We have also reduced waiting periods of EI benefits from two weeks to one week.

In my region, seasonal workers, fishermen, processors, and many more depend on this program when work is not available. I am pleased that our government has continued to recognize the important role that this program plays in keeping our small communities alive and giving workers the security they need when times are tough.

Our most recent budget is proof that our government knows what matters to Canadians, and not just in my region but across the entire country. Back home in my province of Newfoundland and Labrador, I see people every day who benefit from these strategic and important investments in local infrastructure, in social programs, and in growth.

Thanks to the Atlantic Canada Opportunities Agency, all levels of government in Newfoundland and Labrador have been able to come together to support communities so that they can grow well into the future. ACOA has been a huge driver in my riding, which is a rural riding with small, vibrant towns that benefit greatly from the funding that ACOA allows to flow into their municipalities. It is companies like Harbour Grace Ocean Enterprises whose pride in its community and confidence in its people make it a local economic driver. With funding from ACOA, this company can employ local people and keep jobs in Harbour Grace, all while stimulating the local rural economy.

Our government knows that regional-specific programs and investments work. It is why programs like ACOA address the regional challenges that we have and work with proponents to use them to our advantage.

This leads me to the incredible investments that our government, specifically our Minister of Fisheries, Oceans and the Canadian Coast Guard, has made into the Atlantic fisheries fund and the oceans protection plan. In my region, investing in our oceans, in our fisheries, and in our coastal communities is crucial. They are the backbone of our towns and an integral part of our history.

I am proud to be part of a government that recognizes the importance of preserving our resources and our coastlines while investing in smart, clean, and sustainable technology and practices, so that our people can continue to do what they love while preserving our resources and coastlines for future generations to come.

It is no surprise that in a province like mine, fisheries still hold strong as economic drivers in many coastal communities. Since being elected I, and I am sure many of my Newfoundland and Labrador colleagues, have seen how important small craft harbours are in communities across our province.

That is why an investment of $5 million in small craft harbours in budget 2017 combined with the $149-million investment in budget 2016 has helped ensure that our facilities in Avalon are safe and accessible. This is just another way our government is recognizing our regional needs and supporting the fishing industry in Newfoundland and Labrador.

We are now two years into our mandate, and the change I have seen in my riding is astounding, with a record number of investments, including infrastructure funding, funding for social programs and for tourism, and investing in growing businesses, just to name a few.

We are spending strategically and smartly. We are listening to Canadians when they tell us what they need and what would make their lives better, and Canadians are recognizing that as well.

Our government, since 2015, committed to taking a new approach. We committed to doing what was best for everyday, middle-class Canadians. We also made a commitment to better relationships with our provincial and territorial governments to really do what was best for all of our people. We committed to growing the economy while supporting the middle class. It is because of these investments that today we see incredible economic and social prosperity in this country. It is because of these commitments that we can continue to invest in all of the great programs and services that I have outlined today.

It was my pleasure to stand and support Bill C-63. I, along with my colleagues on this side of the House, look forward to continuing to invest and do what is best for our people and our communities well into the future.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

[Member spoke in Cree as follows:]

Niwakoma cuntik Tansai Nemeaytane Awapantitok.

[English]

Madam Speaker, it is a pleasure to be speaking today on Bill C-63 and truly speaking on the issues related to the Budget Implementation Act, 2017, No. 2. This is an interesting piece of legislation. Budgets are important because they impact people on the ground, average Canadians, average people. It is my belief that a budget is a real reflection of the will of a people.

I think of the people in my riding who came to me and talked to me about, for instance, subsidies to the fossil fuel industry. They came to me in May 2016. They spoke to me with great passion. They talked to me about their beliefs, and how they wanted to make the world a better place. They said they wanted to make sure we could make room in this world for other human beings and we could look after each and every one of us. They believe in ideals like simplicité volontaire or voluntary simplicity.

There are people in the areas of my riding, like Wolseley, and when these young people ask what we are going to do about the environment and if we are going to fulfill our promises made during the election, I say, “Of course, I am going to fight for you every day to fulfill those promises.”

As an indigenous person, I have heard from my elders. “Treaty” is a buzzword today that we often use. It was a buzzword a thousand years ago as well. Wahka say jach was the very first man. When the creator, the Great Spirit, created all beings, when he created the two-legged ones, the four-legged ones, those who could fly, when he created the rivers and streams and mountains and sky, he created man last of all, and that was Wahka say jach.

He gathered all the animals together and asked them, “Who will protect this man, because it is cold today and he is cold?” The buffalo said, “I will give him my fur so he can stay warm.” The birds said, “We will give him food and sustenance. We will provide him with something to feed himself and his families.” They had a treaty. They had a relationship with each other. It was not something to be taken lightly.

I said:

[Member spoke in Cree as follows:]

“Niwakoma cuntik Tansai Nemeaytane Awapantitok”.

[English]

That says I honour all my relations.

We have to honour all of our relations because we have treaty with everything that exists in this world. If we use something, we must honour it afterwards. If we use an animal or a being, we must honour it in a good way, to make sure we do not waste, we do not destroy, and we continue to cherish, love, care, and protect.

Those things, today, are sometimes very hard, but that is what I saw in the people who came to speak to me on May 27, 2016, in my riding.

The world's largest economies in 2009 agreed to phase out subsidies for oil and other carbon dioxide fossil fuels in the medium term as part of efforts to combat global warming. Some $300 billion a year is spent worldwide to subsidize fuel prices, boosting demand in many nations by keeping prices artificially low, and that is leading to more emissions.

This agreement in 2009 was backed by all G20 countries, including Russia, India, and China. It was a victory for the United States president, Barack Obama. He said this reform would increase our energy security and it would help us combat the threat posed by climate change. He also said, “All nations have a responsibility to meet this challenge, and together we have taken a substantial step forward in meeting that responsibility”.

It is my belief that eliminating such subsidies by 2020 will reduce greenhouse gas emissions blamed for global warming by 10% by 2050, and this was also highlighted by the International Energy Agency and the Organisation for Economic Co-operation and Development. In a statement from the G20, comprising the major rich and emerging economies, energy and finance ministers said they would develop timeframes and strategies for implementing the phase-out of the subsidies and report back at the next G20 summit.

It was our prime minister back then, the Right Hon. Stephen Harper, who was the one to act on behalf of Canada at this G20 summit. In 2015, he agreed to a final communiqué for the G7 which said, “we emphasize that deep cuts in global greenhouse-gas emissions are required with a decarbonisation of the global economy over the course of this century”.

Our Parliament also voted last June to accept that the Paris accord is a necessary step to fight climate change. These are all truths.

However, another truth is that the Liberal Party promised in our 2015 platform:

We will fulfill Canada’s G-20 commitment to phase out subsidies for the fossil fuel industry. The next step will be to allow for the use of the Canadian Exploration Expenses tax deduction only in cases of unsuccessful exploration. The savings will be redirected to investments in new and clean technologies.

That is our engagement on behalf of Canadians that we decided to fulfill in the budget implementation act no. 2.

I will now quote what we are actually going to be doing in the budget implementation act in relation to the fossil fuel subsidies:

The success rates for exploratory drilling have increased substantially since the 1990s and, in a majority of cases, discovery wells now lead to production, which makes the well an asset of enduring value.

This measure would modify the tax treatment of successful oil and gas exploratory drilling. Consistent with the usual treatment of enduring assets, expenses associated with oil and gas discovery wells will be treated as Canadian development expenses, unless and until they are deemed unsuccessful.

This measure supports Canada's international commitments to phase out inefficient fossil fuel subsidies.

I have had the opportunity of sitting on the finance committee for the past two years, almost. I remember asking the Canadian Taxpayers Federation representatives about fossil fuel subsidies, and I asked what they thought about them. They said they were against corporate welfare in any form. However, we on the finance committee also recognize that we need to take a balanced approach and that, yes, there were and there still are continuing issues in Alberta related to employment. However, I believe it is a balanced approach that we have tried to take, not simply coming in and applying what we believe right away but taking the time to listen and to consult. We have waited for Alberta to lift itself to ensure that we have other programs that can take the place to ensure that we have good economic development in Alberta.

In my belief, we are fulfilling a promise of treaty to all our relations. We are fulfilling a promise of the Right Hon. Stephen Harper, one that we are willing to keep because it is important. We are willing to fight for the environment, fight for the beliefs of Canadians, and fulfill our promises that were contained in our 2015 platform. I am proud that even a bit of work, asking some of those questions on the finance committee, allowed us to ensure that today we are fulfilling that 2015 promise, fulfilling what should have been done in 2009 to 2011.

Thank you very much. Tapwe akwa khitwam.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, I will remind the House that I moved a motion to adjourn debate yesterday when we were talking about Bill C-63. The reason I moved that motion was the fact that the finance minister refused to answer the question from the member for Carleton and others, including the member for Louis-Saint-Laurent. In the context of that bill, I moved that motion because of a lack of confidence in the finance minister's ability to talk about it. Again, unless and until the finance minister answers these tough questions, we will be at a stalemate.

When time allocation was moved this morning, during tough questions from the member for Carleton, very simple questions, too, the finance minister suggested the member take it outside. That has been a pattern of the government in the past. If the Liberals do not want to answer the questions in the House, the inference is that we should take it outside, a bully politic tactic. If the finance minister wants to threaten high-priced Bay Street lawyers by threatening us to take it outside, we will not stand for that. In this democracy and this Parliament, every one of us is sent here to represent the voices of our constituents and every one of us has an obligation to ask the tough questions, the simple questions, the yes or no questions.

The debate was adjourned yesterday because we lacked the confidence in the minister's ability to deal with Bill C-63. We did not know his agenda, and we still do not know what his agenda is with respect to Bill C-63. The funny thing was that every member of the Liberal Party voted to adjourn yesterday, including the finance minister. Therefore, the Liberal members clearly do not have confidence in the finance minister's ability to deal with this issue as well.

We read in The Hill Times yesterday that the Liberals' major concern was not transparency, not accountability, not openness, not the impact Bill C-63 would have, not the fact that the finance minister would not answer any questions, and continues to hide in the dark. Their concern is the next election, the fact that potentially in 2019, after four years, they may lose their pensions. This was said in The Hill Times. That causes me to greatly question the motivations of Liberal backbenchers. It is all about their pensions. How sad is that?

I hear them chirping on the other side, and to that I say “bring it on”. Until the finance minister answers the simple questions being asked by Her Majesty's loyal opposition, we will continue to ask the tough questions, the very simple questions, on behalf of all Canadians who sent us here, including my riding of Barrie—Innisfil.

There are no high-priced lawyers in Barrie—Innisfil. It is a working-class community. The finance minister thinks he can come in here, bully the opposition by threatening lawsuits, libel, or slander suits, telling us to take this outside and not ask the tough questions in the House. None of us will be intimidated by the bully tactics of the finance minister, and we ask him to answer the questions.

Returning to Bill C-63, the Liberals have talked about tax fairness and the fact that the middle class and those working hard to join it are somehow better as a result of what they have done. This is about the middle class and those working hard to stay in it. They talked about a revenue-neutral tax decrease, that they would tax the top wealthiest 1% and lower taxes on middle-class Canadians. It was not revenue-neutral. It was going to cost the treasury $8.9 billion over six years, further adding to the debt and deficit of the government, deficits as far as the eye can see, debt that is projected to be $1.5 trillion by the 2050s.

For those of us who live in Ontario, talk about compounding the problem. The Ontario government is mired in endless debt and deficits. Now the federal government is moving in that direction. Quite frankly, I am worried, not just for my four children but every young person in the country who will have to pay for the Liberals' spending.

The House resumed from November 27 consideration of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Bill C-63--Time Allocation Motion

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Speaker, as I have said in this House, it is important that we work together with the Ethics Commissioner to make sure that we do things exactly as prescribed, which is exactly what I have done.

The fabrication of processes that do not exist is completely unnecessary. What we are talking about today is how we can move forward on Bill C-63, making a real difference for Canadians. I fully understand why the member opposite does not want to talk about that. I fully understand that he is not interested in talking about how constituents of his and people across this country are doing better because of our policies. We understand that.

We are going to continue to move forward to make a real difference for Canadians, and we are not going to be taken off our game by fabrications.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Speaker, I will continue to be absolutely transparent with the Ethics Commissioner. That is the way we work in the House.

No matter how many times members opposite talk about their superimposed approach on the approach that has been used in the House for decades, for ministers today and for ministers of yesterday, we will not accede to their fabrication of a process that actually does not exist.

The member for Barrie—Innisfil yesterday moved a motion to shut down this debate. What we are talking about today is moving forward on Bill C-63. We are moving forward, because we have had debate on this over the course of four days. More than 70 members have spoken. We are moving forward with a plan that will continue to improve the lives of Canadians. We know how important it is to keep on this track, because we are seeing real impacts now after two years of hard work.

[John Brassard, Conservative, Barrie—Innisfil, ON]

The disruptions, Madam Speaker, are designed to thwart the voices of members in the House.

The relevance to Bill C-63 is this. The minister has shown a propensity to not be honest with Canadians and to not be honest with the House by not answering questions that are specific to him. How can we trust the minister with respect to the budget implementation bill, Bill C-63, if he will not answer those simple questions? How can we trust him when he suggests that he is not benefiting from this if he is not answering those questions? That is the relevance.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, again I rise on the issue of relevancy. There is an obligation on the part of the official opposition to be relevant to the debate. Today's debate is about a time allocation motion and Bill C-63. Issues related to something the opposition wants to create at this point in time are just not relevant to the debate we are supposed to be having.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Speaker, I would like to remind the member that Bill C-63 has been debated extensively in the House and at the finance committee. We have seen four days of second reading debate, during which more than 70 members have spoken. That includes 23 members from the Conservative Party and 10 members from the New Democratic Party. The bill has also been studied at the finance committee for six hours. We have seen eight members speaking at report stage.

We want to move forward. This bill is clearly the next step in our continuing goal of making a difference for Canadians. I suspect that the member opposite should be pleased that his constituents are feeling much better because there is more employment across this country. We are seeing 500,000 new jobs. I hope the member opposite is pleased with the fact that nine out of 10 families are seeing more money because of the Canada child benefit. Because of the positive economic results we have seen, we are able to make sure that benefit will keep up with the costs of inflation.

That is the kind of work we are doing on behalf of Canadians. It is the kind of work we are committed to continue doing. This debate has been extensively elaborated upon, and now we would like to move forward to do the good work that Canadians asked us to do.

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

moved:

That, in relation to Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, not more than one further sitting day shall be allotted to the consideration of the report stage and one sitting day shall be allotted to the third reading stage of the said bill; and

That fifteen minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration of the report stage and on the day allotted to the third reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the bill then under consideration shall be put forthwith and successively without further debate or amendment.

Bill C-63—Notice of time allocation motion

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

Madam Speaker, I would like to advise that agreements could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the report stage and third reading 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.

Under the provisions of Standing Order 78(3), I give notice that a minister of the crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings of the said stages.

Access to Information Act

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, I listened to the minister speak, and as I sit in the House on a daily basis, as we all do, is it any wonder that we find it hard to believe that anything the government says it is going to do will actually come to fruition? We have seen broken promise after broken promise. If members do not believe me, just look at what some of those who are looking closely at Bill C-58 are saying. By ruling out the possibility to obtain information from ministers' offices and the Prime Minister's Office, the government is breaking its campaign promise to establish a government open by default. Moreover, the possibility to refuse certain access to information requests on an undefined basis jeopardizes the transparency and the openness of this government. That was from Katie Gibbs, the executive director of Evidence for Democracy group. However, there are more, and I will refer to more as I get through my speech today on Bill C-58.

I would be remiss if I did not go back a couple of hours, back to the future, and the egregious display of contempt for parliamentary democracy. It has been a practice in this place for many years that when opposition members ask questions directly and pointedly to the finance minister, as we did today, or to other ministers of the crown, that those answers are expected. They are expected on behalf of all Canadians. This is why we are elected to come to this place; it is to ask the type of hard questions that were asked today.

In the preamble to the movement of a motion to adjourn debate on Bill C-63, I will remind the House that we are talking about openness and transparency, which is something the government runs around saying. The Prime Minister stands up in front of microphones, posts on Twitter, Facebook, Instagram, and Snapchat that the government is more open and transparent than any other government in the history of Canada. I would suggest that nothing could be further from the truth.

I would again remind the House of what I said before I moved the motion to adjourn debate. I said to the Speaker that before I resumed my comments, I wanted to go back to question period and what I thought, quite frankly, was an egregious display of contempt for our parliamentary democracy. This minister was asked multiple times whether he had sold his shares in Morneau Shepell in advance of his tax reform announcement, and he failed to answer the question on multiple occasions.

Therefore, in the absence of the minister answering those questions on a bill that, quite frankly, he has influence over, I would call into question the ability of Canadians to have confidence in him conducting further business on the bill. It is confidence, and not just on this bill, but any bill. The Minister of Finance was asked a minimum of 14 times today in question period whether in fact he had sold his shares in Morneau Shepell in advance of his tax reform policies being announced, and each time he skirted the question. He would not answer. He went on about the middle class and those working hard to join it. Well, right now, it is a matter of the middle class and those working hard to stay in it because of the policies of the finance minister.

We are expected to sit in the House and accept not just what the President of Treasury Board talks about in terms of openness and accountability, but there are multiple people, stakeholders, who have a vested interest in what the President of Treasury Board is promoting and proposing in terms of this access to information legislation, and they are being critical of it. They are being as critical as we are being on the finance minister, because he needs to answer the questions.

The government needs to force the finance minister to answer the questions as to whether in fact he had any vested interest or knowledge of the sale of those shares. It speaks to credibility, to transparency, to accountability, which the government is good at talking about, but when it comes to implementing or living by that, it does not.

What was funny about Bill C-63 and the motion we put forward was that every single person, save one, I believe the member from the Green Party, voted in support of adjourning the debate on that bill. They did that because they do not want to talk about it.

All we are asking is that the minister answer the questions that have been asked of him by those who represent Canadians in this House, every single one of us who are not members of the Liberal Party.

We are actually hearing about Liberal members who are questioning their confidence in the ability of the finance minister to conduct the business of the country. Why? It is because he has failed to answer the questions. He has answered, but in generalities. He goes back to the fetal position of saying that they are working hard for the middle class and those working hard to join it. However, he refuses to answer the questions.

If we are talking about openness and transparency, and this government is proposing Bill C-58, why is the finance minister not being open and transparent with Canadians? We can speculate that perhaps he knows that Canadians will not be happy with the answers. They will not be happy with the villa in France and why he hid that from the Ethics Commissioner, that he had complete control over Morneau Shepell shares and shares in various corporations, or that perhaps he was the one who sold that $10 million worth of shares just ahead of making that announcement. Openness and transparency: what an absolute joke.

I also want to talk about some other individuals who have concerns about what the government is proposing in Bill C-58. The bill proposes a good amendment, and I will give some credit here, by requiring more proactive publication of some information by giving the Information Commissioner the power to order the publication of some information, but it does nothing to fill the huge gaps in the act, as was promised by the Liberals.

We need more changes to have a government that is transparent and open by default. Again, the Liberals talk about openness and transparency, but they do not act in that way.

"The bill is a step backwards in allowing government officials to deny requests for information if they think the request is frivolous or made in bad faith. Public officials should not be given this power, as they will likely use it as a new loophole to deny the public information it has a right know.” Dale Conacher, the co-founder of Democracy Watch, said that.

Stephane Giroux, the president of the Fédération professionnelle des journalistes du Québec said, “The most interesting fact for us was to have access to documents from ministers' offices. False alarm. It was too good to be true.”

In spite of the fact that the President of the Treasury Board is standing up and saying that all these changes have occurred within Bill C-58, the reality is that there are still significant concerns. I think there is concern among Canadians. This past weekend, I had lots of events in my riding, and one of the things I kept hearing about is confidence in the finance minister to continue to do his job, given the circumstances and the besieged state he has been in over the last while. The fact that every single member of the Liberal caucus voted to adjourn debate on this issue calls into question not just Canadians' confidence in the finance minister but the Liberal backbenches' confidence in the finance minister.

The Hill Times today reported that there are concerns among Liberal backbenchers that this is going to affect them in 2019. Do members know the reason they gave for that concern? Many of them will have been here for one term of four years. They are concerned about their pensions. That is what it said in the paper.

How about being concerned about the process of democracy in this country and making sure that no one benefits from having holdings, in the case of the finance minister, that they have not brought forward and been transparent about?

Never mind pensions, we should be focused on what the finance minister is doing by not being transparent and accountable to Canadians and question whether some of the legislation he is putting forward, such as Bill C-27, actually benefits him.

I would remind the House as well that it is not just a matter of benefiting him. What about the benefit to his family? What about his wife? What about his kids? What about his father? How many Morneau Shepell shareholders, or anyone directly or indirectly associated with that family, are benefiting as a result of the policies the finance minister is putting forward? We talk about being open and transparent, but the finance minister has been anything but, and we certainly saw that egregious display today in the House.

As parents, we teach our kids about the difference between right and wrong. We tell our kids what they cannot do and explain it to them. We tell them what they can do and explain the reasons why. We talk often to our kids about character. School systems, through the policies of education, speak about character. They speak about honesty and integrity, yet the finance minister is showing none of those character traits to Canadians with his actions.

We are dealing with a piece of legislation, Bill C-58, that, quite frankly, is difficult to support for many reasons, the least of which is the government not showing any strong movement toward openness and transparency. It is a very top-down approach by the government.

The former information commissioner, from 2007 to 2008, said, “there's no one [in government departments] to review what they choose not to disclose, and I think that goes against the principle of the statute. They've taken the commissioner out of the loop. If you ask for these briefing notes...[and parts of them had been blacked out], you had someone to appeal to.”

This is no longer the case with Bill C-58.

He went on, “We can't even go to a court. It's one step forward, two steps back.”

We have seen a lot of one step forward and two steps back with the government. My fear is that the openness and transparency the Liberals ran on are not there anymore. We have seen that the finance minister cannot even answer a simple question. He will not even answer a simple question. Quite frankly, after seeing this display we have been seeing over the course of the last several months to questions being asked, how can we have any faith? If the finance minister will not even answer a simple question, how can we expect the whole of government to be open, honest, and transparent?

I am saddened by what I see, quite frankly, as a new parliamentarian. I know the other side is going to say that there were circumstances in the past when similar issues happened. We are not talking about circumstances in the past. The Liberals were the same opposition that stood and talked about the egregiousness of the actions of previous governments. They ran to be different. They said that they were going to impose real change. We have seen nothing to suggest anything different. We are seeing a government that is more inward. We are seeing a government that is controlled from the top down. We are seeing a government where the Prime Minister's Office runs everything. Not just on this issue but on multiple issues, anything but what they said has come true.

Conservatives are not going to support Bill C-58. I certainly call into question the finance minister. I call into question his ability to manage the financial affairs of the country, given the circumstances we have seen over the course of the last several months.

Despite their campaign promises, the Liberals have failed to increase government openness and transparency with this bill. As I have said, it is no surprise. This is effectively a government that chooses to publish when it is accountable to Canadians. It is not being accountable all the time. It is going to pick and choose when it wants to be accountable to Canadians. In practice, what the Liberals have effectively done is give themselves the power to refuse to respond to access to information requests they find embarrassing. Under the principle of openness and transparency, should not everything be responded to?

I understand that there might be matters of national security that are not in the public interest, but this is something different from what they ran on, as far as openness and transparency goes. With the changes proposed by the Liberals, less information would be available to Canadians. Moreover, the Liberals would do nothing to address unacceptable delays, so we would continue to see that information punted down the field and would have unacceptable delays in when that information would be put forward to Canadians.

I spent some time talking about Bill C-58, but in the context of openness and transparency, I cannot emphasize enough the egregious nature of the issue we have been dealing for the last couple of months with the finance minister. Again today there was zero accountability, zero transparency, and zero openness. It is a pattern that has evolved with the Liberal government over the course of the last two years. It should concern all of us. It certainly concerns stakeholders who have an interest in this. However, it is not just a concern to all of us who are here to represent Canadians. It is a concern to all Canadians, because it is the small stuff that leads to the big stuff. If we cannot get simple answers to simple questions in this place of openness and transparency, how can we expect to get that information from a government that proves, day after day, that it is not interested in openness? It is not interested in transparency and accountability, in spite of the fact that it ran on that very thing.

They said they were going to be different. The reality is, and we have seen it over the course of the last two years, that nothing could be further from the truth. With the display of the finance minister over the course of the last couple of months, and certainly today, there is not much faith in the ability of the government to be open, transparent, and accountable. That is why Bill C-58 is flawed. We continue to be concerned about the actions of the finance minister and how the Liberal government and these Liberal backbenchers can continue to endorse the display we are seeing here on a daily basis.

The House resumed consideration of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, as reported (without amendment) from the committee, and of the motions in Group No. 1.

Speaker's Ruling

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

Mr. Speaker, today we are in this House debating Bill C-63. This is the second bill to implement provisions of the budget. There are a few noteworthy elements in the bill that I will address today. Most importantly, my remarks will focus on what is not in the budget implementation act.

Financial issues have been the main focus in this House during this session. Many Canadians are concerned and have been watching with disappointment. The sponsor of Bill C-63, the Minister of Finance, is embroiled in so many scandals that I do not even know where to begin. Prior to many allegations coming to light, people from North Island—Powell River, my riding, came to my office, wrote me letters, and sent emails protesting and expressing deep concern around Bill C-27, a bill that would weaken pension obligations. When Canadians later learned that the sponsor of that bill, the Minister of Finance, still owns shares in Morneau Shepell, they were concerned. I was asked whether this means that the minister will make millions off the prospect of the bill. They were concerned that the minister would make even more if the bill were passed. This is one of the clearest cases of conflict of interest that we have seen in years. That is why we need a formal investigation into the minister's actions.

Imagine, as well, the sudden influx of calls, emails, and mail in constituency offices across Canada. when the finance minister started his so-called consultation on the small business tax. The minister failed to respect Canadian small business owners in this process. In my riding, I represent many small businesses. In our region, our economy has had many challenges. We have seen a significant change, from a very focused resource-based economy, broadening to include a strong and growing small business community. In the summer, many of the farmers and owners of tourism-based businesses contacted my offices. Many of them simply did not have time during the summer to participate in any consultation.

I also had the honour of meeting with some doctors in my region. What was most disheartening was hearing how hurt they were when the Prime Minister of Canada talked about the so-called rich doctors. In many rural and remote communities across Canada, finding health professionals is hard, and it is getting harder. The doctors who spoke with me were very concerned about the divisive nature of those comments and the impacts on their work in their communities.

Returning to the finance minister, the people from my riding are very concerned about the minister hiding his wealth from the Conflict of Interest and Ethics Commissioner. I do not know many Canadians who would have forgotten their house in the south of France. So much for a transparent government. The same minister still has a series of numbered accounts stashed away from public scrutiny. This raises more troubling questions. Let us not forget that the Ethics Commissioner came to exist as a part of the Federal Accountability Act in 2007, after another series of Liberal moral and ethical failings. Today the Liberals have found more ways than ever to protect their friends, the tax cheats, by not addressing the sophisticated systems that can only be used by the wealthiest and most connected.

Bills like the one we are debating here today would not change much for hard-working Canadians, and my riding is full of everyday hard-working Canadians. Bills like Bill C-63 would keep protecting cheaters from scrutiny and justice, and that is not right. As the paradise papers are still unravelling, I cannot say that I have much confidence in the current government, other than having a good sound bite for the media. One thing to keep in mind is that the paradise papers are a result of a leak from only one firm. There are many other firms out there carrying trusts and offshore companies linked to Canadians. It is a matter of finding them, and CRA is simply not doing enough.

The latest report from the Auditor General was not friendly to the Canada Revenue Agency. While tax cheats are not its main focus, the report highlights a total mismanagement of CRA call centres. The AG's report indicates that the CRA has been blocking over 50% of Canadians' calls for help. Even worse, CRA agents are providing misleading or inaccurate information almost 30% of the time. The Auditor General's report also focused on the failings of the Liberals' responsibility to implement the Phoenix program. In fact, the AG pointed out that the Liberals have no idea of the full extent and causes of the Phoenix problem. It is estimated that it will take years before solving pay problems, and will most likely cost Canadians around $1 billion.

However, this is about so much more than just $1 billion. It is about civil servants across Canada not receiving their pay. It is about Canadians losing their homes, having to go to food banks, having their credit destroyed, and family stress. It is very important that, in this House, we recognize that civil servants are still going to work every day even when they are not getting paid. These people are dedicated to their work and to Canadians. Many of my constituents have asked why the government does not have someone writing cheques until this is figured out, because they just need to be paid. I have taken the time to talk about this failing, because I know Canadians want this problem fixed. What better way to fix it then in a budget implementation bill?

Bill C-63 lays the foundation for Canada's membership in the Asian Infrastructure Investment Bank, which we believe will cause many problems. In fact, Bill C-63 allows the finance minister to transfer $480 million Canadian to the bank. Since the bank was only recently launched, the government cannot fully evaluate the risks of privatizing infrastructure in countries where the bank will invest. Some experts have raised concerns about the lack of provisions regarding environmental impact assessments, labour rights, or anti-corruption reforms, as is generally the case with loans made by the World Bank and the International Monetary Fund.

It is difficult to say with any certainty, because the bank has only been in existence for one year, whether it will be respecting international standards. We need better assurances from the government about these concerns, and we need proof that the bank will not contribute to privatization of infrastructures, the degradation of the environment, and the violation of labour rights. The government cannot pay its own federal employees, but we can spend $480 million on a foreign initiative that may privatize infrastructure. The government cannot catch tax cheats or fix our revenue agency, but it can spend $480 million on a foreign initiative that degrades the environment. It cannot understand the realities of small businesses, but it can spend $480 million on a foreign initiative that will potentially violate labour rights.

Let us recap what progress has been made on the first budget implementation bill, including the Canadian infrastructure bank. A few months in, and the federal government has moved in predictable Liberal fashion, with a board made up largely of Liberal donors and promoters of privatization. This list includes James Cherry, the former president and CEO of Aéroports de Montréal, who has previously advocated for airport privatization. How surprising. I cannot wait to read the AG report on this.

However, wait, there is more. The bank will be subject to audits at a lower standard and with less transparency than the Auditor General has over direct government departments, despite the $35 billion in public funding to establish the bank. Again, so much for a transparent government.

Before the budget was tabled, our finance critic wrote the finance minister to ask him to include some provisions to create a fairer and greener society. For example, we asked him to cap CEO stock options for large companies; actively fight tax havens; establish a $15-per hour minimum wage for workers; invest in energy-efficient home renovations; address accessibility problems linked to housing, drinking water, mental health services, and education in first nations communities; and establish a universal pharmacare system. None of these provisions were implemented.

After two years of listening to the government talk about the middle class and those working to join it, this budget demonstrates, for a fact, that Liberals have no idea who those people are.

I cannot support this bill. It clearly has too many gaps that leave the most vulnerable with little, and does not address the important parts of moving towards a fair tax system.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Mr. Speaker, Bill C-63, as a budget implementation bill, reflects the general fiscal policy and spending announcements in last spring's budget, so it will come as no surprise to any members here in the House, or to those listening at home, that I am opposed to this bill, just as my colleagues were opposed to the budget itself.

This bill and the budget that proceeded it contain a litany of misplaced priorities, broken promises, and hypocrisy and a preponderance of the type of style without substance that has characterized the Liberal government from the start.

Having dispensed with the question of where I stand on the bill, I want to point out that this bill is actually more than just a budget implementation bill. It is an omnibus bill that contains a significant new spending commitment that was not included in the budget: a new commitment to fund the Asian Infrastructure Investment Bank, surely a misplaced priority. This budget implementation bill would enact the Liberals' decision to jump at the opportunity, as they call it, to invest half a billion dollars in an Asian infrastructure bank.

Let us be clear about what this so-called investment would really mean. An actual investment in shares of an enterprise consists of a decision to place money at risk in the hope of receiving either profits paid to the shareholder in the form of dividends, or an eventual gain from the profitable sale of the shares. This bank's shares cannot be resold for gain, and it pays no dividends.

The so-called investment would be a spending commitment, not included in the budget, that would go to capitalizing a Chinese government-controlled bank, a bank that experts at the finance committee said does not meet international standards for governance and transparency. It makes loans that are below investment grade and that have been given no grade from international rating agencies. Canada will have no representation on its board and will not have any control over its operations.

This is not an investment. It is a decision to export taxes paid by Canadians to Asia for the benefit of foreign corporations and lenders and bankers, who will get the profits of contractors, and of foreign citizens, who will get to use the infrastructure.

This is especially problematic given that our tax dollars are going to an Asian infrastructure bank that will fund pipelines, not pipelines here in Canada, where we could take Alberta's oil and gas to Kitimat or Saint John, but pipelines that are going to take energy products from Kazakhstan to China.

That brings us to the point about hypocrisy. This infrastructure bank had no business being in the budget. It ought to have been debated separately, from the start, as a new, unbudgeted policy proposed by the government. For a government that complained about omnibus legislation in opposition during the campaign, and indeed during its first year in office, it seems to have no problem now tabling omnibus bills. This bill is, by definition, a broken promise.

Having stated my opposition to the bank and the public policy decision to fund it, I still have plenty of objections to this bill. The bill contains a measure that would further cause harm to the broader Canadian economy, but particular harm to Alberta, especially the city of Calgary and my constituents. This bill aims to curb the use of flow-through shares for exploration expenses for oil and gas projects. The changes proposed in this budget would reduce competition in the industry, diminish the incentive to drill new wells, slow development of Alberta's natural resources, favour large producers over smaller ones, and accelerate capital flight as companies left the province for more business-friendly jurisdictions.

Calgary is now three years into a downturn, triggered at first by the collapse in commodity prices but severely aggravated by the actions of both the Liberal government and its allies in the provincial NDP in Alberta. Changes to exploration expense credits through flow-through shares would be another attack on the energy sector by a government wilfully blind to practical reality.

The people of my riding cannot understand why the government hates the energy business so much. They know that for years, energy exports have generated prosperity for Canadians in all provinces. The taxes from the industry have funded public services through the income tax it pays to the crown and the spread of wealth throughout Canada through equalization payments.

My constituents cannot understand why the Liberal government just cannot thank the industry for its many contributions and get out of the way. They cannot understand why the Liberals will seek any opportunity to create another tax or another regulation to kill off a few more jobs in the energy sector. They want to know why the government just cannot stop making things worse.

Raising taxes on energy investors is not the way to foster growth and innovation. It is not the way to help create well-paying, middle-class jobs. Indeed, it will help drive more jobs overseas and contribute to the brain drain that is well under way in Calgary. However, it does fit with the government's unrealistic and idealistic approach to energy and with its conceit that it always knows better.

This brings me to how the government always allows style to trump substance. For example, the Liberals spent over $200,000 on the cover art for budget 2017. I have to admit, I have been waiting weeks to weigh in on this subject, but it has been tough because of all the unbelievable things the government has said, done, or been caught doing since this past summer. The opposition topics have been overwhelming, but today let us talk about it.

The finance minister's disclosure problem, even while he wags his finger at every other private corporation owner, and the revenue minister desperately trying to raise revenue on the backs of everyone from type 1 diabetics to minimum-wage-earning restaurant workers, has made it tough to weigh in on the budget cover, but I will do so.

It caught my attention when it was first printed, and I commented on it in my speech in the spring. At that time, I thought that maybe it was a bit Freudian how the Liberals had these illusionary doodles on the cover that were imaginary, things like infrastructure actually being built, or solar-powered fishing boats, which we now know were actually supposed to be icebreakers in the Arctic, but I digress. The cover art was absurd and worthy of ridicule, even before Canadians found out that the Liberals paid an advertising agency over $200,000 to produce it and then wasted a bunch of finance department staff time putting focus groups together and dithering over photos of models who were being paid public money to try to look like ordinary Canadians. I could not make this stuff up. It would be funny if it were not so ominous.

We know of the shameful history of the Liberal Party and advertising agencies. When we talk about Liberals paying advertising agencies, those who remember the last Liberal government know how it ends. People have still been going to jail in the current Parliament for the last time we talked about Liberals paying big money to advertising agencies.

I want to remind Canadians how this budget and the last were chock full of broken promises and draw attention to how the bill, the fall economic update, and the recent PBO report all confirm that the government has betrayed the Canadians who voted for it on the promises it made in the 2015 election. Indeed, analysts have confirmed that the current Liberal government has run the largest per capita expansion of the federal government outside wartime or a recession.

Middle-class Canadians are now paying more income tax than they did under the previous government. The Liberals promised a maximum deficit of $10 billion, which would be used to fund infrastructure, and to then return to balance. However, the bill and the budget it would implement perpetuate deficits as far as the eye can see. According to the PBO's economic fiscal outlook “it is unlikely that the budget will be balanced, or in a surplus position, over the medium term.”

The minister was asked seven times at the finance committee when the budget would be balanced, and each time he was asked, he blathered aimlessly about how proud he was of his approach, which would suggest that he is perhaps proud of the fact that he has broken, and continues to break, his party's promises, all while he remains under the cloud of a conflict of interest investigation.

In his fall economic update, the finance minister boasted about a smaller than anticipated deficit. The PBO report revealed the reason for this: the Liberals have actually failed to deliver on the infrastructure spending promise. The one thing that convinced voters to tolerate a return to deficit, the one thing Liberals promised that would actually improve the economy and the day-to-day lives of Canadians, is the one thing this tax-and-spend government cannot effectively spend.

Given that this BIA is riddled with broken promises and hypocrisy and directly threatens jobs in my riding, I will not be supporting it.