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.

[Benjamin Davis, National Vice-President, Multiple Sclerosis Society of Canada]

Good afternoon, and thank you for providing me with the opportunity to speak here today.

I'm here representing all Canadians who are affected by MS on the provisions put forth in this budget implementation act.

MS is a chronic, often—but not always—disabling disease of the central nervous system affecting the brain, spinal cord, and optic nerve. Different people experience different symptoms and outcomes, and there is no one kind of MS.

MS is one of the most common neurological diseases affecting young adults in Canada. Most people are diagnosed between the ages of 15 and 40, ages when many are in the workforce.

In consideration of Bill C-63, division 8 of part 5, we support the amendment to make work work by including more flexible employment policies to allow people with MS and other episodic disabilities to remain in the workforce. This would be good policy for compassionate reasons, for social reasons, and for economic reasons. This would include making improvements to income and disability supports for people who are unable to work or who can work only on an intermittent basis, thereby providing them with a more flexible environment in which they could work.

We support provisions in part 1 that would, first, give more authority to nurse practitioners for tax purposes, allowing them to sign off on a person's health issues, and second, introduce changes that would improve the accuracy and consistency of the income tax legislation and regulations, allowing people living with an episodic disability like MS to receive the disability tax credit, for example.

I could get into a technical discussion, but as you deliberate on the various provisions, please reflect on the following stories from real people living with MS.

Penny worked full time until her MS symptoms took over. She needed a different position. She could still work but needed the flexibility to work part time so she could manage her health. She left her job and is trying find a more flexible environment, but in the meantime, Penny must rely on social assistance. If there were a flexible work-sharing program in place, Penny could have reduced her hours while receiving partial El support, allowing her to stay in the career she loved and costing the social development system less money.

Dave was recovering from a significant relapse of his MS and required full-time nursing for a period of time. However, because he was not gravely ill with a significant risk of dying, his wife couldn't take compassionate care leave. There was no flexibility with this leave, so she had to quit her job to look after Dave, leaving this family with no income at all for several months. Everyone loses in this situation: the family, the individuals, and the labour market. It simply doesn't make sense.

Sharon has been unable to work full time for the past several years because of her MS. Sometimes, when she's feeling well, she can work, but the short-term work keeps her income low. She doesn't fit into the current definition of disability, so she doesn't quality for the disability tax credit, and because her income is low, the credit wouldn't make a difference anyway. Sharon spends an inordinate amount of time trying to navigate the complexity of multiple avenues of partial assistance. A flexible work arrangement could allow Sharon to work consistently but within the parameters of her MS symptoms, giving her financial security.

Time and time again, we hear that people want to work. They can work. They are able, mentally and physically, but it may not always be in the traditional sense of nine to five or regular shift work. There needs to be an avenue for employees to request flexible work arrangements. The current income and social support systems create an environment that forces people with episodic disabilities to be either in the workforce or out. Episodic illness is a square peg in a round hole, with no flexibility at all.

Half of working-age Canadians with disabilities have a disease that is episodic. It comes and it goes. It could be MS, mental health, arthritis, and/or a host of others. Implementing small changes would alleviate some of the financial and human resources burdens on the current system. These changes include allowing more flexibility for employees living with an episodic disease or illness so that they can continue to be in the workforce, contributing to our economy; making the income tax legislation and regulations consistent; and improving the parameters around the definition of disability. These changes would better support people with episodic illnesses, allow them flexible environments in which to contribute to the economy and workforce, cost support systems less, and alleviate economic, emotional, and social stress. They would also decrease pressures on employers to rehire and retrain new workers.

These amendments are the right thing to do for individuals, for families, for society, for the labour force, and for the economy.

Thank you. I'm happy to take any questions.

[Chandra Pasma, Senior Research Officer, Canadian Union of Public Employees]

Thank you and good afternoon.

Elizabeth and I are pleased to be here this afternoon to speak to you on behalf of the 651,000 members of the Canadian Union of Public Employees.

I want to start by echoing the comments that were just made by the Canadian Labour Congress about consultation and process. CUPE is disappointed that these changes to the Canada Labour Code are being made in an omnibus budget bill. This means these changes will not get the fulsome scrutiny and debate that they deserve. We recommend that division 8 be separated from Bill C-63 and be studied and voted on separately.

We are also concerned that the changes in Bill C-63 do not go far enough in providing important protections and reasonable access to leaves for workers in the federal jurisdiction. We believe that the federal government should be setting a high standard that meets or exceeds the best provincial standards. Unfortunately, some of the new standards proposed by Bill C-63 are well below the strongest provincial standards. For instance, we are concerned that giving employees only 24 hours' advance notice of schedules or shift changes falls well below the standard of one week's notice set by Saskatchewan.

We are also concerned that the broad exemption in the act could render the requirement meaningless. Advance notice of working hours is important for workers to be able to carry out other activities like child care and education. We also know that uncertainty over work schedules contributes to precarity, stress, and work-life conflict.

Given this, why should the ordinary working of the employer's establishment take precedence and be given the same kind of priority as a serious threat to health and safety? We recommend that the requirement for advance notice be extended from 24 hours to one week, and that the third exemption relating to the ordinary working of the employer's establishment be deleted.

We have the same concern about the right to refuse overtime for family responsibility. Allowing an exemption for the ordinary working of the employer's establishment is too broad, and it means that the employer's rights are being prioritized over the well-being of families and children.

What kind of society are we if a child can be left waiting at day care for mom or dad to pick them up for no other reason than because an industrial establishment would otherwise not be working as it ordinarily does? We recommend that this exemption be deleted, which would also make this proposed section consistent with the best provincial standards.

With regard to the right to request flexible work arrangements, we are concerned that this change does not create a meaningful new right. The proposed section does not require employers to consider a request any more seriously than they might have before. It simply requires employers to provide a response in writing.

CUPE believes that instead of making a symbolic gesture that fails to accomplish real change, the government should be making significant changes in support of the most vulnerable workers: precarious workers who are forced to be flexible against their will.

[Hassan Yussuff, President, Canadian Labour Congress]

Thanks, Mr. Chair.

Good afternoon, colleagues and committee members. Thank you for the opportunity to appear before you here today. I will discuss the CLC position on two of the issues in the bill, family violence leave and changes to part III of the Canada Labour Code.

For years, the Canadian Labour Congress and the labour movement have insisted that domestic violence must be recognized as a workplace issue. CLC has been a strong advocate for workplace protection and support of victims of domestic violence. Bill C-63 creates a new leave to allow people experiencing domestic violence time off to deal with the effects of the violence and to take steps to address it, and we welcome this action. Unfortunately it falls short of providing support for job protection for people experiencing domestic violence. Designated paid leave is a vital component of helping survivors keep their jobs and their economic security.

Employment is a key pathway to leaving a violent relationship. Dedicated paid leave gives workers the job protection time to do the things they need to do, things to keep them and their children and family members safe. Whether that is obtaining counselling, getting a new bank account, meeting with lawyers or police, it is something people need time to do during standard daytime hours. Dedicated paid leave also gives employees the financial security they need to take steps to leave. This can be an expensive undertaking.

Paid leave is also important given the dynamics of power and control in abusive relationships. Research shows that 90% of domestic violence survivors experience financial control. If accessing unpaid leave results in a lower paycheque than the abuser is expecting, there may be serious consequences for the victim. The unintended result of not providing paid leave is that it may increase risks to workers and create barriers for victims.

We'd also like to flag a concern about the exception clause. We understand that the intention is to ensure that the leave is reserved for victims of domestic violence, and not abusers. However, the exception clause may pose a barrier to victims who end up being accused and charged themselves. This could happen in a situation where they retaliate or stand up to the abuser, or in a situation where the police lay dual charges in regard to domestic violence.

In our opinion, the language of being a victim should suffice to limit the perpetrator's right to the leave. No one should have to choose between not being abused and getting a paycheque. We urge the committee to ensure that the 10 days of family violence leave be paid leave. We also urge that careful attention be paid to the potential barriers created by the details in the provisions.

Regarding the changes in part III of the Canada Labour Code, Bill C-63 contains several important changes to the federal labour standards. Among these steps, the bill reverses the previous government's approval of unpaid internship outside of the approved educational program, requires advance notice for changes to scheduling, allows time off in compensation for overtime work, and provides a limited right to refuse overtime. These are significant and positive steps in the right direction.

However, I would say something about the process. In the spring of this year, the labour program began consulting broadly on the recommendations of the 2006 Arthurs report. It proposes strengthening the compliance and enforcement in part III rights. Our preference continues to be to have integrated and comprehensive discussion about strengthening the federal standards, and constructing an effective compliance and enforcement regime under the code.

I want to thank the committee for the opportunity to present here today and I welcome any questions committee members may have.

[The Chair, Liberal, Wayne Easter]

We'll call the meeting to order.

Pursuant to an order of reference of Wednesday, November 8, 2017, the committee is studying Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017, and other measures.

Welcome to all the witnesses. We appreciate your coming.

Before I go to the witnesses, we will just change the agenda a little bit.

At 6:15 we will deal with Mr. Dusseault's motion, which was tabled on Tuesday and has had the proper amount of notice. After that discussion, we will have to go in camera to deal with some of the business issues of the committee and the costs of holding hearings. If a second panel is here at 10 minutes to five o'clock, we will make the switch then between the panels.

As an individual we have Ian Lee, associate professor at Carleton University.

Ian, the floor is yours. We will try to hold the comments to about five minutes, if we could.

Budget Implementation Act, 2017, No. 2

[The Speaker, Liberal, Geoff Regan]

I declare the remaining elements of the bill carried.

The House having agreed to the entirety of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures at this second reading stage, the bill will now be read a second time.

Accordingly, the bill stands referred to the Standing Committee on Finance.

(Bill read the second time and referred to a committee)

[Darryl Sprecher, Senior Director, Expenditure Management Sector, Treasury Board Secretariat]

Thank you.

Good afternoon. I am pleased to be here today to speak to clause 261 of Bill C-63, which deals with an amendment to subsection 32(1) of the Financial Administration Act on the control of financial commitments.

Let me put this amendment in context. In June 2017, the House of Commons approved amendments to the Standing Orders that deferred the tabling of main estimates from March 1, or earlier, to April 16, for the next two budget cycles. This deferral makes it possible to include in the main estimates the new funding announced in the budget.

When the main estimates were usually tabled by March 1, before the beginning of the new fiscal year on April 1, Parliament would be asked to approve an interim supply bill to provide departments with sufficient funding to be able to continue operations until all appropriations are approved at the end of June.

The Financial Administration Act, or FAA, currently constrains departments' ability to make financial commitments, such as for contracts or contribution agreements, by requiring there to be a sufficient authority in an appropriation or in estimates then before the House of Commons. The deputy of finance already spoke about this very briefly.

These limits are retained in proposed paragraphs 32(1)(a) and 32(1)(b). However, to begin the fiscal year 2018-19, only the interim estimates and corresponding appropriation will be available until the complete main estimates are tabled roughly two weeks into the new fiscal year. If the government were to leave the FAA as it is now, departments would not be able to reflect the full year's value in contracts or contributions that they sign on or just prior to April 1.

The proposed addition of paragraph (c) to subsection 32(1) of the FAA clarifies departmental financial commitment authorities for the period between the tabling of interim estimates in February and the complete main estimates in April. This would be done by permitting financial commitments to be made against a limit that would be specified in the interim estimates bill.

The second addition, proposed paragraph 32(1)(d), clarifies that commitments may be made against the unencumbered balance of revenues actually received by a department or the amount of a department's estimated revenues set out in the estimates. The commitment limit would be based on the forecast planned spending, including expected revenues, that is known when the interim estimates supply bill is introduced—in other words, the forecast main estimates before new budget measures are taken into account.

To conclude, I would emphasize that these amendments clarify the authorities of departments. They do not add to them, nor do they change their authorities to make payments out of the consolidated revenue fund. Such payments will continue to be limited by the specific amounts set out and voted on by Parliament in the appropriations.

With that, I thank you for your patience. I would be pleased to answer any questions you may have.

[The Chair, Liberal, Wayne Easter]

Okay. That will be it.

Thank you, Minister and deputy, for appearing before us on Bill C-63 and the supplementary estimates.

Committee members, we'll let the minister go, because I know he has a hard stop at 5:15.

Thank you again.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mr. Speaker, it is an honour to rise today to speak to Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, which I will strongly oppose.

I would like to talk about Sunday's municipal elections in Quebec. There are 37 municipalities in the riding I represent, and it spans 3,200 kilometres. I would like to congratulate all of the candidates who ran in the municipal elections and all those who won. I care about having a good working relationship with other representatives. I look forward to working with the newly elected officials. I would also like to celebrate the fact that more women were elected mayor. I am very proud to say that we now have more women mayors back home. This is good news.

In my speech today, I want to talk about the issues that are not part of the Liberal government's bill. For example, the government is not doing anything about credit card fees, and more recently, it refused to work with us, the provinces, and other stakeholders to create a universal pharmacare program. I also want to talk about how the government is refusing to remedy tax unfairness by facilitating the intergenerational transfer of family farms. The last issue I will touch on is employment insurance.

I will start with credit card fees, which cost Canadian merchants tens of thousands of dollars. It is their second-largest expense after salaries. Small retailers make up more than 50% of the Canadian economy. For example, a Saint-Boniface service station called Alimentation Lemoyne & Auger in my riding pays $30,000 per year in credit card transaction fees. That is a lot of money. Canadian small businesses pay the highest credit card transaction fees in the world. The Liberal government should do like other countries, such as Australia and EU countries, which have capped fees at 0.5% or less.

This is a measure that the Liberal government should have introduced for small business owners. We really would have liked to see some progress. We would have liked for the government to stand up for small business owners in Quebec and elsewhere in Canada. There is supermarket owner in Laval who spends nearly $200,000 on credit card fees. The government needs to act now to better regulate those fees.

Last month, the NDP used an opposition day to raise a debate in the House of Commons on the need to adopt a universal pharmacare program. In the riding that I represent, the population is aging, so I care about health-related issues. We had a debate in the House of Commons, but unfortunately, the Liberal government decided to vote against our motion.

That day, representatives of the Centre Avec des Elles in Saint-Gabriel-de-Brandon and the Centre des femmes l'Héritage in Louiseville came to attend question period. They also got to meet several MPs. These people from my riding, who came to the House the day that we moved an opposition motion on the need for a universal pharmacare program, could not believe that the government was going to vote against such a measure, when, unfortunately, the cost of prescription drugs is rising every year.

The people I represent did not think it was the right approach to lowering the cost of drugs. They were really frustrated to see the Liberal government's inaction and unwillingness to act. We would have really liked to see something in the budget for this. However, there is nothing yet again. There is no action on the part of the Liberal government.

I had have the honour of being the agriculture and agrifood critic since 2015 after being the deputy critic from 2012 to 2015. I have been a member of the Standing Committee on Agriculture and Agri-Food since 2012. I am the longest serving member of the committee. Anything that has to do with the transfer of farms and fishing businesses is really important. We know that Canada's population is aging and that succession and planning is not going well.

My colleague from Rimouski-Neigette—Témiscouata—Les Basques introduced a bill to address a fiscal injustice in the transfer of farms. Unfortunately, that bill was defeated in the House of Commons before it could be referred to a committee. We think it is disgraceful that the government is doing nothing to help the next generation of farmers in Canada.

I would also like to raise the matter of employment insurance. I represent a rural riding where many people work in seasonal industries. These people depend on EI, but they do not always have access to it, sadly. The budget contained no changes or assistance to give workers access to employment insurance. Currently, 15,000 Canadians are having to contend with the spring gap. This needs to be discussed, because during the campaign, the Liberal Party said it would fix the problem by improving the system and making it so that these people have access to EI.

There have been some minor changes, but the Liberal government has not carried out a comprehensive reform to improve access to employment insurance for workers in the agriculture, fisheries, forestry, and tourism sectors. These sectors are incredibly important to the economy, and we need to make sure we support the people working in them.

The unemployed workers' movement in Quebec claims that the Liberal government has not reformed the employment insurance system. Forty-four percent of Canadians will not be eligible for employment insurance. That is a lot of people, a lot of Canadians and Quebeckers who need reform and change so they can access EI when they need it. This is really important to them.

We really hoped to see some progress on reducing inequality. We know that a special committee was formed to examine pay equity. A report entitled “It's Time to Act” was even published. The government committed to taking action, but not today, tomorrow, or even in a year. It is going to introduce a bill on pay equity to ensure that women and men earn equal pay for work of equal value. It is going to take until the end of 2018. I am trying to understand why the government is dragging its feet on introducing a bill that would truly further equality.

I think everyone agrees that there is still work to be done. It is 2017. The government claims to be feminist, but it needs to walk the talk. This bill needs to pass quickly. We are deeply disappointed to see so many things missing from this budget, especially since the government is always saying that it can do better.

The government should have done better with this legislation.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I am thankful for this debate in the House tonight, for the government bringing forward budget 2017, and now for Bill C-63. The government's actions are in line with and directly support the four initiatives of the Guelph and Wellington poverty elimination task force, by looking at the four areas of income inequality, affordable housing, food insecurity, and health inequities.

There is an old African proverb that states, “If you want to go fast, go alone. If you want to go far, go with others.” This government knows that working together with others, and other orders of government, is crucial. In fact, the whole-of-government approach is the way forward.

On the first point of income inequality, the goal of the Guelph and Wellington poverty elimination task force is that all members of the community have the income, resources, and opportunities to fully participate in the community. Of people living in poverty, 70% are currently working. According to Statistics Canada, Canada has one of the highest proportions of low-paid workers among similarly industrialized countries.

The government believes that the working income tax benefit can do much more to improve the financial security of low-income working Canadians. To this end, in the 2017 fall economic statement, the government is announcing its intention to further enhance the working income tax benefit by $500 million a year, starting in 2019. The maximum Canada pension plan retirement benefits for workers will also be increasing over time by 50%. The government has increased the guaranteed income supplement payments to seniors by up to $947 a year, which is going to help 900,000 low-income seniors, 70% of whom are women.

The Canada child benefit has helped to stimulate the economy. Our economy is growing at 3.7%, leading the G7, and we have created more than 500,000 jobs since it was introduced. There are 12,000 families or 24,000 kids in my riding who receive a total of $8 million per month tax-free. This is an enormous boost to the Guelph economy. The budget implementation act will now index these funds two years ahead of schedule due to the strong growth we have in our economy.

Economic opportunity is the best way to address income inequality. This legislation will take the next steps for our innovation and skills plan, an agenda that focuses on people and addresses the changing nature of the economy to ensure that it works for all Canadians. Bill C-63 will enact several key parts of our plan, including $600 million in new financing for clean technology firms, and $400 million to put in place the venture capital catalyst initiative.

The second point that the poverty elimination task force is looking at is affordable housing, with the goal that everyone in Guelph and Wellington can find and maintain an appropriate, safe, and affordable place to call home. The government will invest more than $11.2 billion over 11 years through the national housing strategy to provide low-income Canadians with improved access to adequate and affordable housing. This is the most significant investment in housing that has ever been made in the history of Canada.

Through the rental construction financing initiative, the government will also offer more than $2.5 billion over the next four years in low-cost loans to support the construction of new rental housing to help increase the supply of rental housing. Budget 2017 also proposes a total investment of $2.1 billion over the next 11 years to expand and extend funding for the homelessness partnering strategy beyond 2018-19. Our national housing strategy will be announced over the next few weeks. We will be meeting with members of the Guelph and Wellington poverty elimination task force to discuss implications for Guelph and how we can work together.

The third point is food insecurity. Everyone has to have access to affordable and healthy food in a dignified manner. We have a shared objective federally. In fact, the agriculture committee that I sit on has repeatedly heard from witnesses on the food policy, addressing the nutritional food that Canada needs to focus on, and working with partners like food banks to reduce food waste and to improve food distribution within our communities.

The Canada child benefit has been mentioned a lot today. It has helped lift 300,000 children out of poverty. Thanks to this benefit, by the end of this year, it is estimated that child poverty will be reduced by 40% from where it was in 2013.

For a single parent with two children and $35,000 of income, the acceleration of the Canada child benefit will contribute $560 toward the increasing cost of feeding children. This increase means more nutritious food for lower-income children and families, allowing for a more engaged and active student population in our schools.

To address food insecurity within indigenous communities, they need employment opportunities. Budget 2017 invests $50 million in the aboriginal skills and employment training strategy, providing the knowledge indigenous peoples need to sustain themselves and build their communities.

Finally, on health inequities, everyone in Guelph and Wellington has to have access to affordable health services. Drug prices in Canada are among the highest in the world. Patented drug prices in Canada are 17% to 37% higher than those in France, Italy, the U.K., Australia, Spain, the Netherlands, and New Zealand. Canada's generic drug prices are also comparatively high.

We have heard from Canadians about the need for improved access to prescription medications and lower drug prices. Through budget 2017, we are investing over $140 million over five years to help improve access to pharmaceuticals and support innovations within the health care system, but we know there is a lot more to do.

People may be wondering how these two policies, federal and municipal, are so well aligned and how this can happen. In truth, if a government believes in the whole-of-government approach and serving its people, there can be no other way. Our government understands the needs of our communities, both large and small, from coast to coast to coast, and is prepared to offer communities what they need to realize their goals.

The results of the past two years justify the trust Canadians placed in this government in the 2015 election. We promised we would work together, and we are. I am confident that the measures in budget 2017 and the budget implementation act will continue this positive trend, build our communities, help the most vulnerable, and have a successful economy together.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Thank you, Mr. Chair.

Mr. Minister, I want to talk about division 2 in part 5 of Bill C-63, on the Asian Infrastructure Investment Bank agreement act that is being ratified. You must know this. Your officials came to committee and they said that every single project that this bank had approved thus far had received a human rights review, an environmental review—every project and every project being proposed. You must know that there are two pipeline projects that have received funding and that are receiving a loan from this bank in which Canada is now putting $375 million U.S. You also must know that your government cancelled and made it impossible for two pipeline projects to proceed in Canada.

How can you justify wasting $375 million U.S., gifting to China this money for their middle class, when you have hard-working energy families in Alberta, Saskatchewan, and British Columbia who are out of work and looking to their government to support them in their time of need as it is financing China's middle class?

[Jennifer O'Connell, Liberal, Pickering—Uxbridge, ON]

Thank you, Mr. Chair.

Thank you, Minister, for being here. Mr. Rochon, thank you, as well.

I want to talk about Bill C-63 in terms of some of the items contained in here. We heard from witnesses yesterday about the importance of making this change to allow nurse practitioners to fill out forms for their patients. I come from a semi-rural riding, so it is not always easy...and certainly many Canadians are in ridings that are even more rural.

Can you maybe speak to why this change is important and what you anticipate its impacts will be?

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

Minister, in Bill C-63, one of the first measures are changes to work-in-progress, or sometimes called billed-basis accounting. That will basically force lawyers and other professionals, if they're working on contingency cases, to pay taxes every year.

Minister, do you realize that in some cases, in small rural areas where they are not serviced by large law firms that can subsidize these kinds of cases, you will in fact make it more difficult for people who are on the margins and have legitimate cases—where it may not be a slam-dunk case—to have their legal representative...?

Your own parliamentary secretary said in the House of Commons that he is sensitive to these changes. We had MP McKay, a lawyer as well, say that there are challenges with the approach.

Minister, are you concerned that this will make it more difficult for people to get representation?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Thank you, Mr. Chair.

Welcome, Mr. Minister.

Our government's focus is on the middle class. I am very pleased to say that the Canadian economy is growing fast. The growth is actually more than 4% and there are more than 500,000 new jobs.

That includes many new jobs in my riding of Vaughan—Woodbridge.

When we entered into office, we brought in the Canada child benefit. I was pleased to see the numbers in my riding—more than 16,000 children, 9,000 payments, for a total sum of $4.3 million going to families who need it. They are not the millionaires, but actually low- and middle-income families who need it for their everyday necessities and putting their kids in school. With that measure, we saw that the Bank of Canada governor noted that the economy was boosted by 0.5% with the CCB, and we've indexed it now.

Moving on from the CCB to innovation, in Bill C-63, there are measures for clean technology, boosting the Business Development Bank capital, an investment of approximately $1.4 billion in new financing through BDC and EDC to help Canada's clean technology firms grow and expand.

I wanted to get your comments on how important this is, not only helping middle-class families through the CCB and indexing the CCB but also having an innovation agenda so that we can boost the capacity of our economy to grow.