Budget Implementation Act, 2018, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

Part 1 implements certain income tax measures proposed or referenced in the February 27,2018 budget by
(a) ensuring appropriate tax treatment of amounts received under the Veterans Well-being Act;
(b) exempting from income amounts received under the Memorial Grant for First Responders;
(c) lowering the small business tax rate and making consequential adjustments to the dividend gross-up factor and dividend tax credit;
(d) reducing the business limit for the small business deduction based on passive income and restricting access to dividend refunds on the payment of eligible dividends;
(e) preventing the avoidance of tax through income sprinkling arrangements;
(f) removing the risk score requirement and increasing the level of income that can be deducted for Canadian armed forces personnel and police officers serving on designated international missions;
(g) introducing the Canada Workers Benefit;
(h) expanding the medical expense tax credit to recognize expenses incurred in respect of an animal specially trained to perform tasks for a patient with a severe mental impairment;
(i) indexing the Canada Child Benefit as of July 2018;
(j) extending, for one year, the mineral exploration tax credit for flow-through share investors;
(k) extending, by five years, the ability of a qualifying family member to be the plan holder of an individual’s Registered Disability Savings Plan;
(l) allowing transfers of property from charities to municipalities to be considered as qualifying expenditures for the purposes of reducing revocation tax;
(m) ensuring that appropriate taxpayers are eligible for the Canada Child Benefit and that information related to the Canada Child Benefit can be shared with provinces and territories for certain purposes; and
(n) extending, by five years, eligibility for Class 43.‍2.
Part 2 implements certain excise measures proposed in the February 27,2018 budget by
(a) advancing the existing inflationary adjustments for excise duty rates on tobacco products to occur on an annual basis rather than every five years; and
(b) increasing excise duty rates on tobacco products to account for inflation since the last inflationary adjustment in 2014 and by an additional $1 per carton of 200 cigarettes, along with corresponding increases to the excise duty rates on other tobacco products.
Part 3 implements a new federal excise duty framework for cannabis products proposed in the February 27,2018 budget by
(a) requiring that cannabis cultivators and manufacturers obtain a cannabis licence from the Canada Revenue Agency;
(b) requiring that all cannabis products that are removed from the premises of a cannabis licensee to be entered into the Canadian market for retail sale be affixed with an excise stamp;
(c) imposing excise duties on cannabis products to be paid by cannabis licensees;
(d) providing for administration and enforcement rules related to the excise duty framework;
(e) providing the Governor in Council with authority to provide for an additional excise duty in respect of provinces and territories that enter into a coordinated cannabis taxation agreement with Canada; and
(f) making related amendments to other legislative texts, including ensuring that any sales of cannabis products that would otherwise be considered as basic groceries are subject to the GST/HST in the same way as sales of other types of cannabis products.
Part 4 amends the Pension Act to authorize the Minister of Veterans Affairs to waive, in certain cases, the requirement for an application for an award under that Act.
It also amends the Veterans Well-being Act to, among other things,
(a) replace the earnings loss benefit, career impact allowance, supplementary retirement benefit and retirement income security benefit with the income replacement benefit;
(b) replace the disability award with pain and suffering compensation; and
(c) create additional pain and suffering compensation.
Finally, it makes consequential amendments to other Acts.
Part 5 enacts the Greenhouse Gas Pollution Pricing Act and makes the Fuel Charge Regulations.
Part 1 of that Act sets out the regime for a charge on fossil fuels. The fuel charge regime provides that a charge applies, at rates set out in Schedule 2 to that Act, to fuels that are produced, delivered or used in a listed province, brought into a listed province from another place in Canada, or imported into Canada at a location in a listed province. The fuel charge regime also provides relief from the fuel charge, through rebate and exemption certificate mechanisms, in certain circumstances. The fuel charge regime also sets out the registration requirements for persons that carry out certain activities relating to fuels subject to the charge. Part 1 of that Act also contains administrative provisions and enforcement provisions, including penalties, offences and collection provisions. Part 1 of that Act also sets out a mechanism for distributing revenues from the fuel charge. Part 1 of that Act also provides the Governor in Council with authority to make regulations for purposes of that Part, including the authority to determine which province, territory or area is a listed province for purpose of that Part.
Part 2 of that Act sets out the regime for pricing industrial greenhouse gas emissions. The industrial emissions pricing regime requires the registration of any facility that is located in a province or area that is set out in Part 2 of Schedule 1 to that Act and that either meets criteria specified by regulation or voluntarily joins the regime. The industrial emissions pricing regime requires compliance reporting with respect to any facility that is covered by the regime and the provision of compensation for any amount of a greenhouse gas that the facility emits above the applicable emissions limit during a compliance period. Part 2 of that Act also sets out an information gathering regime, administrative powers, duties and functions, enforcement tools, offences and related penalties, and a mechanism for distributing revenues from the industrial emissions pricing regime. Part 2 of that Act also provides the Governor in Council with the authority to make regulations for the purposes of that Part and the authority to make orders that amend Part 2 of Schedule 1 by adding, deleting or amending the name of a province or the description of an area.
Part 3 of that Act authorizes the Governor in Council to make regulations that provide for the application of provincial laws concerning greenhouse gas emissions to works, undertakings, lands and waters under federal jurisdiction.
Part 4 of that Act requires the Minister of the Environment to prepare an annual report on the administration of the Act and to cause it to be tabled in each House of Parliament.
Part 6 amends several Acts in order to implement various measures.
Division 1 of Part 6 amends the Financial Administration Act to establish the office of the Chief Information Officer of Canada and to provide that the President of the Treasury Board is responsible for the coordination of that Officer’s activities with those of the other deputy heads of the Treasury Board Secretariat. It also amends the Act to ensure Crown corporations with no borrowing authority are able to continue to enter into leases and to specify that leases are not considered to be transactions to borrow money for the purposes of Crown corporations’ statutory borrowing limits.
Division 2 of Part 6 amends the Canada Deposit Insurance Corporation Act in order to modernize and enhance the Canadian deposit insurance framework to ensure it continues to meet its objectives, including financial stability.
Division 3 of Part 6 amends the Federal-Provincial Fiscal Arrangements Act to renew Fiscal Equalization Payments to the provinces and Territorial Formula Financing Payments to the territories for a five-year period beginning on April 1,2019 and ending on March 31,2024, and to authorize annual transition payments of $1,270,000 to Yukon and $1,744,000 to the Northwest Territories for that period. It also amends the Act to allow Canada Health Transfer deductions to be reimbursed when provinces and territories have taken the steps necessary to eliminate extra-billing and user fees in the delivery of public health care.
Division 4 of Part 6 amends the Bank of Canada Act to ensure that the Bank of Canada may continue to buy and sell securities issued or guaranteed by the government of the United Kingdom if that country ceases to be a member state of the European Union.
Division 5 of Part 6 amends the Currency Act to expand the objectives of the Exchange Fund Account to include providing a source of liquidity for the government of Canada. It also amends that Act to authorize the payment of funds from the Exchange Fund Account into the Consolidated Revenue Fund.
Division 6 of Part 6 amends the Bank of Canada Act to require the Bank of Canada to make adequate arrangements for the removal from circulation in Canada of its bank notes that are worn or mutilated or that are the subject of an order made under paragraph 9(1)‍(b) of the Currency Act. It also amends the Currency Act to provide, among other things, that
(a) bank notes are current if they are issued under the authority of the Bank of Canada Act;
(b) the Governor in Council may, by order, call in certain bank notes; and
(c) bank notes that are called in by order are not current.
Division 7 of Part 6 amends the Payment Clearing and Settlement Act in order to implement a framework for resolution of clearing and settlement systems and clearing houses, and to protect information related to oversight, by the Bank of Canada, of clearing and settlement systems.
Division 8 of Part 6 amends the Canadian International Trade Tribunal Act to, among other things,
(a) create the position of Vice-chairperson of the Canadian International Trade Tribunal;
(b) provide that former permanent members of the Tribunal may be re-appointed to one further term as a permanent member; and
(c) clarify the rules concerning the interim replacement of the Chairperson of the Tribunal and provide for the interim replacement of the Vice-chairperson of the Tribunal.
Division 9 of Part 6 amends the Canadian High Arctic Research Station Act to, among other things, provide that the Canadian High Arctic Research Station is to be considered an agent corporation for the purpose of the transfer of the administration of federal real property and federal immovables under the Federal Real Property and Federal Immovables Act. It also provides that the Order entitled Game Declared in Danger of Becoming Extinct is deemed to have continued in force and to have continued to apply in Nunavut, as of April 1,2014.
Division 10 of Part 6 amends the Canadian Institutes of Health Research Act in order to separate the roles of President of the Canadian Institutes of Health Research and Chairperson of the Governing Council, to merge the responsibility to establish policies and to limit delegation of certain Governing Council powers, duties and functions to its members or committees or to the President.
Division 11 of Part 6 amends the Red Tape Reduction Act to permit an administrative burden imposed by regulations to be offset by the reduction of another administrative burden imposed by another jurisdiction if the reduction is the result of regulatory cooperation agreements.
Division 12 of Part 6 provides for the transfer of certain employees and disclosure of information to the Communications Security Establishment to improve cyber security.
Division 13 of Part 6 amends the Department of Employment and Social Development Act to provide the Minister of Employment and Social Development with legislative authority respecting service delivery to the public and to make related amendments to Parts 4 and 6 of that Act.
Division 14 of Part 6 amends the Employment Insurance Act to modify the treatment of earnings received by claimants while they are in receipt of benefits.
Division 15 of Part 6 amends the Judges Act to authorize the salaries for the following new judges, namely, six judges for the Ontario Superior Court of Justice, one judge for the Saskatchewan Court of Appeal, 39 judges for the unified family courts (as of April 1,2019), one judge for the Federal Court and a new Associate Chief Justice for the Federal Court. This division also makes consequential amendments to the Federal Courts Act.
Division 16 of Part 6 amends certain Acts governing federal financial institutions and related Acts to, among other things,
(a) extend the scope of activities related to financial services in which federal financial institutions may engage, including activities related to financial technology, as well as modernize certain provisions applicable to information processing and information technology activities;
(b) permit life companies, fraternal benefit societies and insurance holding companies to make long-term investments in permitted infrastructure entities to obtain predictable returns under the Insurance Companies Act;
(c) provide prudentially regulated deposit-taking institutions, such as credit unions, with the ability to use generic bank terms under the Bank Act, subject to disclosure requirements, as well as provide the Superintendent of Financial Institutions with additional enforcement tools under the Bank Act and the Office of the Superintendent of Financial Institutions Act, and clarify existing provisions of the Bank Act; and
(d) modify sunset provisions in certain Acts governing federal financial institutions to extend by five years, after the day on which this Act receives royal assent, the period during which those institutions may carry on business.
Division 17 of Part 6 amends the Western Economic Diversification Act to remove the requirement of the Governor in Council’s approval for the Minister of Western Economic Diversification to enter into an agreement with the government of a province, or with a provincial agency, respecting the exercise of the Minister’s powers and the carrying out of the Minister’s duties and functions.
Division 18 of Part 6 amends the Parliament of Canada Act to give each House of Parliament the power to make regulations related to maternity and parental arrangements for its own members.
Division 19 of Part 6 amends the Canada Pension Plan to, among other things,
(a) eliminate age-based restrictions on the survivor’s pension;
(b) fix the amount of the death benefit at $2,500;
(c) provide a benefit to disabled retirement pension beneficiaries under the age of 65;
(d) protect retirement and survivor’s pension amounts under the additional Canada Pension Plan for individuals who are disabled;
(e) protect benefit amounts under the additional Canada Pension Plan for parents with lower earnings during child-rearing years;
(f) maintain portability between the Canada Pension Plan and the Act respecting the Québec Pension Plan; and
(g) authorize the making of regulations to support the sustainability of the additional Canada Pension Plan.
Division 20 of Part 6 amends the Criminal Code to establish a remediation agreement regime. Under this regime, the prosecutor may negotiate a remediation agreement with an organization that is alleged to have committed an offence of an economic character referred to in the schedule to Part XXII.‍1 of that Act and the proceedings related to that offence are stayed if the organization complies with the terms of the agreement.

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-74s:

C-74 (2024) Law Appropriation Act No. 2, 2024-25
C-74 (2015) Canada-Quebec Gulf of St. Lawrence Petroleum Resources Accord Implementation Act
C-74 (2005) Modernization of Investigative Techniques Act

Votes

June 6, 2018 Passed 3rd reading and adoption of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
June 6, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (recommittal to a committee)
June 6, 2018 Failed 3rd reading and adoption of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (subamendment)
June 4, 2018 Passed Concurrence at report stage of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
May 31, 2018 Passed Time allocation for Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
April 23, 2018 Passed 2nd reading of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
April 23, 2018 Failed 2nd reading of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (reasoned amendment)
April 23, 2018 Passed Time allocation for Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 3:35 p.m.

Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, I would like to focus my question on economic growth. That was a large part of my colleague's speech this afternoon.

We made a clear decision. We believed that Canadians were very hard-working and we knew that investing in Canadians was going to lead to economic growth. Over the past two and a half years, that has proven to be true. With our investments and the hard work of Canadians, the result has been that more than 600,000 jobs have been created since November 2015.

Also, Canada has the best balance sheet in the G7, with the lowest debt-to-GDP ratio. Our debt as a function of our economy is shrinking steadily, and it is projected to soon be at the lowest point in almost 40 years.

Does the hon. member accept these facts?

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 3:35 p.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, first, the finance committee has observed repeatedly that the debt-to-GDP ratio is not a fiscal anchor upon which one can build a public budget.

Second, the member knows, of course, that most of the jobs being created are in the public sector. We need private sector job creation to pay for those public sector jobs.

If we look at Greece before it went into its economic death spiral, it had the same type of trend. It had a reducing debt-to-GDP ratio, and then it suddenly skyrocketed. When we hit the debt wall, that figure instantly begins to change, something the Alberta government experienced in the 1990s when it hit the debt wall. When it did so, and the banks and international institutions refused to lend to it, successive governments had to pay the price. The price was then paid by the taxpayers of Alberta through higher taxes at the pumps, higher taxes on income, and deep cuts to public services. That will be the end result of this Liberal budget.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 3:40 p.m.

Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, one of the things my Alberta colleague also talked about in his intervention was the fact that 200 pages of this budget deal with a carbon tax, a carbon tax on which we have not had any answers from the Liberal government in terms of what the costs will be. For example, we had the Minister of Agriculture at committee on Monday, and I asked him several times if he could tell us what the costs of the carbon tax would be for the average farm or agribusiness. He refused to answer that question. In fact, he said many times that farmers are appreciative of the carbon tax and that it is what they voted for. I have letters from literally dozens of farmers that say it is exactly what they did not vote for.

Can my colleague tell me what he feels the impact of a carbon tax will be on the average Canadian family?

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 3:40 p.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, I was remiss not to mention that, indeed, 200 pages of the budget bill, because it is an omnibus budget bill, contain within them the mechanisms by which the carbon tax will be administered. The Liberals initially said the carbon tax would be very simple. It is nothing of the sort. There is a litany of exemptions and exceptions being applied to the carbon tax.

The question of who will pay and how much they will pay is an interesting one. At committee, the Government of Canada claimed that it could not calculate it. I then raised the fact that the Alberta government was able to calculate the average cost to the average family in Alberta. It is interesting that a provincial government could calculate it, but the Canadian government could not.

The Conservative members moved eight amendments at committee to try to extract that information for the report to Parliament that was tabled. Eight times every single Liberal member voted against greater transparency on the carbon tax. When we talk about the carbon tax cover-up, we mean examples like this. Eight times members of Parliament on the Conservative side offered up distinct, legitimate, reasonable amendments to provide a more succinct report to Parliament that would provide exactly that type of information so that Canadians would know the cost to them and how much GHG emissions would be reduced in return for this carbon tax being levied upon them, and eight times, every single Liberal MP voted against them.

The House resumed consideration of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 3:45 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Mr. Speaker, it is a pleasure for me to have the opportunity today to speak to the budget implementation act. Ronald Reagan once said, “Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” That quote is often interpreted as tongue in cheek, but it is a fairly good description of the current government's economic policy: “If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

With this budget bill, we have an opportunity to discuss a whole range of problems in terms of the government's economic plan, problems that are well summed up in that quotation. I am going to address as many of them today as time allows, the first being the carbon tax and the carbon tax cover-up.

We have a government that is imposing new taxes on Canadians at a feverish pace. In particular, through the carbon tax, the Liberals are requiring every province to impose a carbon tax. If a province will not, the Liberals will themselves impose a carbon tax on that province. This carbon tax is not revenue neutral to the federal government, because we know that the government will collect GST on the carbon tax, and the Liberals have consistently refused calls from the opposition not to collect GST on the carbon tax.

The Liberals believe that this is the right approach, but they also believe that Canadians should not have access to the information they used to make their determination. We have an ongoing carbon tax cover-up in which the government refuses to give Canadians basic information about how much the federal carbon tax will cost. The provinces that have imposed carbon taxes have been, in fact, much more forthright with the data.

I would say that if the government has an opinion on the carbon tax one way or another, it should be willing to present the information and the analysis that led it to that decision so that Canadians can see it, agree with it or disagree with it, and have that discussion. Instead, it is a government that, on the one hand, claims to be confident in the rightness of its position, but, on the other hand, refuses to give this information.

We have in this budget bill the government moving forward with its federal carbon tax and continuing to refuse to give information about how much it will cost the average Canadian family. We know this will impose significant costs on the economy as a whole. Canadians have a right to know, the middle class and those working hard to join it have a right to know, how much the carbon tax will cost them.

There is a discussion on how we support economic development, which is always part of the budget and certainly is quite in discussion today. Our approach, on this side of the House, is to say that the best way to encourage economic development is to think about existing businesses and also to think about businesses that do not yet exist and could exist. It is to create the conditions for economic growth, for investment, and for new, innovative ideas, not to prejudge where those ideas are going to come from or what they are going to look like.

Government is inevitably poorly disposed to fully know where the next big economic opportunity is going to be. Economic growth does not happen because the government decides it is going to spend a whole bunch of money on this supercluster fetish we have. Instead, economic growth happens when individual entrepreneurs have new ideas, and they make sacrifices to make investments in themselves and their communities and their own businesses that then allow for growth and job creation. The approach we take is to favour simplification of regulations and tax reductions for individuals and businesses, especially small businesses, that create opportunities.

Under the previous government, we lowered the business tax rate, which actually led to an increase in business tax revenues. Business tax revenues went up as the rate of business taxation went down, and that shows that giving opportunity and resources and mechanisms to the private sector is how to create jobs and opportunity. Even the government was better off from lowering business taxes. We lowered the small-business tax rate. We had it booked in as being lowered to 9%. The current government broke that promise, and then un-broke that promise, at least for now, as a justification for some of the draconian regulatory changes it wanted to make for small business. The Liberals have an on-again, off-again relationship with supporting small-business tax reductions, but Canadian small-business owners know they can go steady with the opposition.

The way Liberals have approached small business to try to make these regulatory changes that increase costs and reduce certainty for small business is not the way to create confidence in our economy or to attract investment. Our approach was to lower personal income taxes, lower business taxes, and, by the way, always to target those tax reductions to those Canadians who needed them the most.

We cut the GST, which is the tax everybody pays. We lowered the lowest marginal tax rate. By any standard of progressivity, the tax reductions that the Conservative government made were more progressive than any the Liberal government has even talked about. In fact, we know from various analysis that have been done that the Liberal government is increasing taxes through the carbon tax and other changes, including the elimination of tax credits and so forth, that hit those in the middle class and those working hard to join it very hard. It also hits small businesses, the engines of economic growth. These businesses are not looking for a government subsidy. They are not looking for a supercluster. They are looking for the regulatory and taxation environment that allows them to succeed.

The Liberal government's approach is totally different. It thinks that the Prime Minister, in his wisdom, knows best where the next big opportunities will come. The Liberals then pick these areas of government spending to create economic growth, allegedly, while increasing the burden on those small individual operators who do not ask for government subsidies, but simply want to be left alone to create opportunity. It is asking successful small businesses to pay more so that other big, well-connected insiders will pay less.

We do not think that is the right approach, spending hard-earned Canadian tax dollars subsidizing business. We do not think that is fair to other businesses that do not receive those subsidies. We do not feel those policies are fair to ordinary Canadians, who have to pay taxes, that then go to already wealthy companies. That is the Liberal approach, which is subsidizing friends and insiders through corporate welfare instead of creating conditions that allow for long-term economic growth and success through innovation.

The approach of the government, on the one hand, trying to constrain the private sector and, on the other hand, wanting to then subsidize things is most evident in the case of its approach to pipelines. All the government had to do, if it wanted pipelines to succeed, was to continue with the successful policies under the previous government, which got four pipelines built and led to a fifth one being approved. The Liberal government will tell us that the Conservatives did not get any pipelines to tidewater except, except.

It was under the Conservative government that every pipeline project that was proposed was approved. It stretches the imagination to think how it expects pipelines that were not proposed to have been built. We approved pipelines through a strong, fair but clear and accessible process to be built. Under the Liberal government, it immediately acted to kill the northern gateway pipeline.

Canadians are probably wondering why the government is buying out and subsidizing one pipeline to the west coast, while it intentionally and then further through legislation is killing another pipeline to the west coast. If it just got out of the way, perhaps we would have two pipelines proceeding to the west coast. Certainly we would have one.

There is the energy east pipeline, which, by piling additional burdens and challenges on, the government stopped. Then, after killing pipelines, intentionally, directly through government policy, it decided that there was actually one in which it wanted to look more interested. We still do not know if the strategy is going to bear fruit. It is spending $4.5 billion buying the existing pipeline, not building a new pipeline or even expanding one. It is spending $4.5 billion buying existing pipeline infrastructure. Then the government says that it will spend a whole bunch more, billions of dollars more, on a project that when the previous government was in place, the private sector was quite ready and keen to build. Now the Liberal government says that it is going to spend all this money to build it.

What happens if it does not work out at some point along the way? It is very likely the government will just be pouring more and more money into something that could have and should have been done by the private sector.

The government's approach to the economy is a failed approach. It is to tax and regulate success, while piling on money in subsidy to everything else. We in the opposition present a strong alternative that will actually lead to economic success in the long term for Canada.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 3:55 p.m.

Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, we are proud of the tax cuts we have implemented as a government.

We reduced taxes on the middle class. How did we do that? By increasing taxes on the top 1%. We also reduced taxes on small businesses, and we are proud of that. We know the importance of small business in this economy.

With respect to the child benefit, we increased it, so nine out of 10 families benefit from the increase. Millionaires do not get cheques anymore, but that is because millionaires do not need the cheques from the child benefit. However, nine out 10 families benefit, and it has lifted over 300,000 children out of poverty.

We are so proud of these accomplishments that we have attained through this budget and previous budgets. Also, in this budget, as the member knows, we will be indexing that child benefit, which will start in July.

However, the member's speech today focused a lot on the pipeline question. I have two specific questions for the member with respect to his focus. Is climate change real? If it is, what is his plan?

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 4 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Mr. Speaker, yes, climate change is real. Yes, our party accepts absolutely the science of that. In fact, we were the first government in Canadian history to reduce greenhouse gas emissions. They went up under the previous Liberal government that signed Kyoto. They went down under the Conservative government. They went down despite overall economic growth. When emissions were rising in the rest of the world, they went down in Canada, despite the fact that we were less hard hit by the recession than many other countries.

The member asks what our plan is. We did it. What is her plan?

All the Liberals talk about is raising taxes, yet they have no success when it comes to actually delivering on the things about which they talk. They tell us that the environment and the economy go hand in hand. Well, under the current government, they go hand in hand in the wrong direction.

The member talked about cheques to millionaires. They are sending clusters of cheques to millionaires in these supercluster billionaire bailouts for which they are using taxpayer money.

Therefore, it is a bit rich for the member to talk about not sending cheques to the rich when that is precisely the Liberals' industry policy: give money to already established companies with no consideration for the entrepreneurs or the companies that could have been built but cannot now because of the new regulations and new taxes imposed by the government.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 4 p.m.

Liberal

Wayne Long Liberal Saint John—Rothesay, NB

Mr. Speaker, I listened with great interest to members opposite talk about the pipeline, about how the Conservatives built different pipelines, and that they had all the answers and could get pipelines built. The Leader of the Opposition was in my riding of Saint John—Rothesay three weeks ago, talking about the pipeline, saying he could build it.

However, one thing I am very curious about is an article on the Leader of the Opposition's website in which it says he “is listening to Quebecers”. He talks about giving Quebec added jurisdiction and responsibilities over its territory, that it will have the right to decide what happens in its territory on all issues.

How does the member opposite square that? On one side, the Leader of the Opposition says that he would build energy east. On the other side, he stands in Quebec and talks about how he is there to protect their jurisdictional rights.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 4 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Mr. Speaker, I know the member loves it when Conservatives visit his riding. I can assure him that is going to happen. St. John is a beautiful place, and our leader and I, and other members of our caucus, will be making regular visits over the next year to continue to talk about our positive economic message.

When it comes to energy east, I am sure his constituents are asking him this question. Why did the government set up a regulatory system designed to kill the energy east pipeline, while it then put a whole bunch of public money into the west?

Unlike Liberal ministers, I am going to answer the question. I know that is something the minister does not normally hear happen in this place. I miscalled him the “minister”, and I am sorry about that error. After being removed from a committee for voting based on his conscience, it is unlikely he is going to be heading there.

However, the member asked about respecting jurisdiction in Quebec. Let us be clear. This party believes in respecting provincial jurisdiction and not having provinces make decisions in federal jurisdiction. That is not a difficult distinction. On matters of jurisdiction in Quebec, Alberta, or B.C., the federal government should not interfere. The provinces should be able to make those decisions. On areas that are clearly within federal jurisdiction, they are within federal jurisdiction. That has clearly been our practice and our position.

I can also say it in French, if they want.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 4 p.m.

The Deputy Speaker Bruce Stanton

I see other members who want to ask questions, but the member's time has expired. Perhaps they can ask another time, during another period for questions and comments.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 4 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, the Liberals had an opportunity with this implementation act to build an economy that would lift everyone up, people who counted on them, instead of just the wealthy few at a top with their tax havens. Unfortunately, the Liberals decided instead to defend the interests of their corporate and privileged, consigning the rest of Canada to the back seat.

Budget 2018 and Bill C-74 reveal once again the Liberals' true nature.

I remember in 2004 the damage done to our country after 13 years of Liberal rule, most of those years in majority governments that accomplished little to nothing in the way of fairness and equity for working Canadians. Those Liberals made the most drastic cuts to our public broadcaster, did little to nothing in the way of implementing a universal child care program, nothing to reverse the devastating effects of colonialism on indigenous peoples, except as a last ditch effort to stay in power, and undermined the health care system with cuts to transfer payments to the provinces.

We hoped for more progress than setting the bar at red book promises unfulfilled. For close to three years now, the NDP caucus has been calling on the Liberals to actually be the progressive, positive government they promised us in 2015.

This bill betrays all women who believed the so-called “gender budget” would include much anticipated pay equity legislation, because it does not. The Liberals promised pay equity 40 years ago, again in 2016, and again a month ago in the budget speech. Canadians want to know when the Liberals will finally deliver pay equity.

Despite the smearing of its image by right-wing ideologues, the fact is that the public service has done more than the private sector in achieving gender equity in Canada. While there is still work to do on the equity front, women and men from historically disadvantaged groups, such as disabled persons, indigenous peoples, single parents, seniors, young people, and people of colour, are all represented in the public service workforce in greater percentages than they occur in Canada's population. They are employed at all levels of management and labour in the workforce more proportionately than in the private sector.

Labour researchers and academics have pointed out that this advantage is at least in part the result of the fact workers in the Canadian public service have union representation guaranteed under our Constitution. However, recent reports indicate that the equity and fairness established in the public service is eroding as a result of austerity measures, privatization, and contracting out. The effect of this offloading, besides being inefficient, is that public sector workers are beginning to experience greater levels of workplace precarity. We know too that this precarity impacts diverse members of the workforce who can least afford it.

We need to consider the legacy we are leaving to future generations, those who leave post-secondary and graduate schools with a burden of debt that is insurmountable only to face a world where jobs are scarce. When work can be found, it is more often than not part-time, underpaid, without benefits, and short-term. We need to give future generations more than the finance minister's statement, telling them to suck it up and get used to a lifetime of precarious work.

Future generations will need a robust economy because they will incur the burden of supporting us in our dotage with their tax dollars. We need to seriously consider the legacy we leave. However, we also know it is bigger than that.

We need to take care of each other for everyone to thrive. We need to create a Canada where no one experiences the isolation and degrading health consequences of homelessness, poverty, or mental illness, a Canada with free and equal access to education, health care, child care, pharmacare, housing, clean air, and clean water.

We know what works and what does not. If what we want is to create a healthy sustainable equitable economy where every citizen has equal access to opportunity and is able to thrive and prosper, the Canada we know is possible, the Canada that can be, the work begins now, with federal budgets. Sadly, the Liberals' budget implementation act is even more timid than the budget. It offers no real plan to reduce inequities or build an economy that would benefit all Canadians.

I would like to take this opportunity today to speak about the ways in which Bill C-74 could have addressed inequalities and build an economy that would benefit all Canadians.

This legislation could have contained provisions to assist rural communities. It does not. The Liberals had an opportunity in their 2018 budget to help rural communities, but instead chose to focus on the interests of their rich friends and their own ridings. In the meantime, they tell people in rural communities to wait for improved employment insurance, cellular infrastructure, and broadband Internet access.

In just the past few days, we have seen announcements from big banks about closing branches in Burford, Blyth, and Clifford in Ontario, and Kipling and Preeceville in Saskatchewan. These closures will leave Blyth and Kipling with no local banking options. In Saskatchewan, the nearest TD branch to Preeceville is an hour to an hour and 45 minutes away.

All of these communities have post offices. A postal banking system would allow members of this community access to banking services that are affordable and competitive, not to mention profitable for Canada Post. In the U.K., corporate banks have actually reversed their opposition to postal banking, because they know it absolves them from the community ire they would experience when they close branches in rural and remote communities, which these banks say do not reap enough profit.

When will the government see the postal banking light? We will have an opportunity in that regard later this session when my motion M-166 comes to the floor of the House for a vote. I urge every member here to support it. We have the opportunity to make effective and progressive change, even if the government avoids it in budget implementation acts. We will have that opportunity very shortly.

A postal banking system would address inequality in this country, something Bill C-74 does not do, even though that should be the goal of government in a social democracy such as ours. Instead we see Canadians who live in rural and remote communities, Canadians with low income, and first nations peoples living on reserve forced to use predatory lenders or to rely on the whim of a local business person or local variety store to access their own money.

A universal pharmacare program would create equal access to life-saving and life-enhancing medications for all Canadians as well. I see nothing in this legislation that addresses that need. In fact, we continue with a patchwork system of access to abortion and birth control that creates inequality and forces Canadians who require those services to either pay exorbitant out-of-pocket costs or travel unreasonable hours to access these services. Monday was International Birth Control Day. It is the federal government's responsibility to ensure equal access for all Canadians needing birth control, but the government has failed. Access is neither universal, equal, nor affordable across this country.

I give the following by way of example: the NuvaRing is available on public formularies in five provinces and one territory, but not the others; IUDs are available in three provinces, but not everywhere; emergency contraceptives are covered only in Alberta; and Quebec covers the patch, but no other province or territory does.

Canada has a human rights obligation to ensure that everyone in every province or territory has the same access to the highest quality medications. Why then does a woman in Manitoba and Quebec have access to more birth control methods than a woman in Saskatchewan? Making all birth control and all sexual and reproductive medications free for all of us is about fairness and gender equality. That is the reason I introduced M-65 to continue the push for equal access to birth control for all Canadians.

My constituents in London-Fanshawe do not believe the economy is working for them. What they see instead is an uneven playing field, where only the few at the top can benefit, at the expense of everyone else. They struggle to pay their bills and care for their parents and children in a community gutted by the loss of well-paid jobs moving offshore as a result of globalization, with no protection from either Liberal or Conservative governments.

Finally, this 556-page-long bill amends 44 pieces of legislation. During the last election campaign, the Liberals promised to abolish omnibus bills because they are undemocratic, yet they chose to restrict the length of debate on this substantial bill at the finance committee. This is not democracy and it is a far cry from the sunny ways promised to Canadians in 2015.

We can do better. We are here to do better. Canadians demand better. Do not let the Liberals tell us it cannot be done.

Budget Implementation Act, 2018, No. 1Government Orders

May 31st, 2018 / 4:15 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Mr. Speaker, my colleague from London—Fanshawe came up with a number of really important points. The bill we are debating is putting in place a brand new carbon tax, which has been deemed to be one of the biggest taxes ever put on Canadian businesses and job creators. Like her riding, my riding has a lot of manufacturers, and today we heard the horrible news about tariffs being put on Canadian steel and aluminum. Companies want certainty. They want to know how much it is going to cost them to do business in Canada, yet the Liberals are putting in this tax without letting Canadians how much it is going to cost. They know, but they will not release the information.

I had a motion on the table to allow the carbon tax to be transparent so that Canadians and job creators would know how much it is going to cost them. Could the member comment on whether she supports having this new carbon tax and information on how much it would cost Canadian job creators and Canadians in their day-to-day activities? Moreover, does she support its being transparent before it is implemented on the Canadian public?

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May 31st, 2018 / 4:15 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, I absolutely agree that all taxation and all of the work of the government should be transparent. Unfortunately, we have not seen that. I would like transparency with regard to tax shelters. There is $199 billion that goes out the door because corporations do not pay their fair share of taxes.

We are in the middle of a trade war. We have a government that does not fully support small business as it should. Things are extremely difficult.

A little transparency would go a long way, the kind of transparency proposed by my colleague from Victoria in the last session and in a bill he plans to introduce very shortly that would compel the Government of Canada to eliminate the loopholes available to those with huge incomes and the sham of businesses using tax havens to undercut what they owe, not just to the government but to all of the people of Canada in terms of support for the services and things we need as a democratic, safe, secure, and beneficial community.

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May 31st, 2018 / 4:15 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I would like to thank my colleague and congratulate her on her comments, which are very relevant, as usual, and in the interest of workers, as well as families in her region in Ontario and across the country.

There is something in the budget implementation bill that I cannot understand. The Liberal government will be taxing medical marijuana. In some cases, marijuana is the only medication that can ease regular, permanent, and intense pain. Other drugs do not work. These people are very worried, because they have just learned that they will probably have to pay much more for their medical marijuana.

I do not understand the Liberal government’s decision. I would like to hear my colleague's opinion on the subject and his comments on how this decision could have an impact on people who, because of the tax, may have to think twice before using medication.