Bill C-74 (Historical)

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

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.

Budget Implementation Act, 2018, No. 1

[Randeep Sarai, Liberal, Surrey Centre, BC]

Madam Speaker, I will be sharing my time with the member of Parliament for Sackville—Preston—Chezzetcook.

I appreciate the opportunity to discuss Bill C-74 and the measures of budget 2018.

With the budget and with this budget implementation act, we are taking the next steps in the government's plan to grow and strengthen the middle class by promoting equality, investing in the economy, and the future.

Before I speak about the contents of the bill, I would like to walk hon. members through some important numbers that show our plan to grow the middle class is working. My riding of Surrey Centre has one of the youngest populations. It is a middle-class riding and it is an emerging centre of innovation. The proof is in the numbers.

Over the last two years, hard-working Canadians have created nearly 600,000 new jobs, most of them full-time. Unemployment rates are near the lowest levels we have ever seen in over 40 years. I am proud to say that since 2016, Canada has led all the G7 countries in economic growth. Our plan is working because Canadians are working. As a result, we are able to continue to invest in the things that matter to Canadians, while making steady improvements to the government's bottom line.

Let me also reassure hon. members that the government is being diligent in ensuring Canada remains the best place to invest, create jobs, and do business. We know that Canada's future success rests on ensuring every Canadian has the opportunity to work and to earn a good living from that work.

Building on these goals, I would like to spend the rest of my time on what steps the government is taking to promote our shared values, bolster services to Canadians, and strengthen their protection at home, abroad, and online.

Canadians know that it is an interconnected world. New technologies offer great benefits to Canadian families and tremendous opportunities to businesses, small and large.

It is no exaggeration to say that the digital age has revolutionized how Canadians live and work, as well as how our institutions function. Digital technologies have changed the way we work, how we shop, how we access services, including government and financial services. These changes have brought with them vast benefits and challenges. They include efforts to preserve cybersecurity and protect the privacy of Canadians. Unfortunately, cyber-attacks are becoming more pervasive, increasingly sophisticated, and even more effective. Successful cyber-attacks have the potential to expose the private information of Canadians, cost Canadian businesses millions of dollars, and potentially put Canada's critical infrastructure networks at risk.

With this budget and the budget implementation act, the government is implementing a plan for security and prosperity in the digital age to protect Canadians against cyber-attacks. This includes significant investments to fund a new national cybersecurity strategy. The strategy focuses on three principal goals: to ensure secure and resilient Canadian systems; to build an innovative and adaptive cyber-ecosystem, and to support effective leadership and collaboration between different levels of Canadian government, and partners around the world.

Canada's plan for security in the digital age starts with a strong federal cyber-governance system to protect Canadians and their sensitive personal information. To that end, budget 2018 commits over $155 million over five years, and $44.5 million per year ongoing to the Communications Security Establishment to create a new Canadian centre for cybersecurity.

By consolidating operational cyber expertise from across the federal government under one roof, the new Canadian centre for cybersecurity will establish a single, unified Government of Canada source of unique expert advice, guidance, services, and support on cybersecurity operational matters. This will result in faster, better coordinated, and more coherent government responses to cyber-threats. The new centre will provide Canadians and Canadian businesses with a clear and trusted place to turn to for cybersecurity advice, to advance partnerships, and dialogue with other jurisdictions, the business community, academia, and international partners.

Given the importance of protecting Canadians from growing cyber-threats, I strongly encourage all members of the House to support consolidating various government cybersecurity functions into the new centre.

Budget 2018 will also help bolster Canada's ability to fight cybercrime by providing $116 million over five years and $23.2 million per year ongoing to the RCMP to support the creation of a national cybercrime coordination unit.

The national cybercrime coordination unit will create a coordination hub for cybercrime investigations in Canada and will work with international partners on cybercrime. The unit will also establish a national public reporting mechanism for Canadians and Canadian businesses to report cybercrime incidents to law enforcement.

Taken together, these investments will allow Canadians to continue to benefit from digital connections in a way that protects them, their personal information, and our infrastructure from cybercrime.

Let me very quickly tell the House about the new national cybersecurity strategy.

The new strategy will ensure secure and resilient Canadian cyber systems to improve the government's ability to investigate cybercrime, develop threat assessments, keep critical infrastructure safe, and work in collaboration with the financial and energy sectors on bolstering their cybersecurity.

Second, by investing in an innovative and adaptive cyber-ecosystem the government will support integrated cyber-learning placements for students and help businesses improve their cybersecurity posture through the creation of a voluntary cyber certification program.

Finally, by strengthening leadership, governance, and collaboration, the government will be taking the lead, both at home and abroad, to advance cybersecurity in Canada by working closely with provincial, territorial, private sector, and trusted international partners.

For Canadians, the national cybersecurity strategy will provide Canadians with a clear and trusted federal source for cybersecurity information, practical tips to apply to everyday online activities, and heightened awareness of malicious cyber-activity.

For Canadian businesses, the strategy will increase cybersecurity guidance for small and medium-sized enterprises and provide them with the tools and resources they need to improve cyber-resilience.

In a digital and globally connected world, I can reassure hon. members that the government is taking action to promote our shared values, bolster services to Canadians, and strengthen their protection, at home, abroad, and online, including establishing this country's first comprehensive cybersecurity plan.

A strong, safe, and secure Canada means our institutions are working effectively with the resources they need. Budget 2018 commits to a number of measures that will bolster the efficiency of Canada's safety and security institutions, without compromising our shared values as an open, inclusive, and welcoming society.

Whether through the guarantee of a fair and equitable justice system or the knowledge that their private information is secure, Canadians deserve to feel safe and protected in a rapidly changing world.

The House resumed consideration of the motion that Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee.

[Wayne Stetski, NDP, Kootenay—Columbia, BC]

Madam Speaker, Bill C-74 contains 556 pages and would amend 44 acts.

I looked at some of the things that would be impacted by this legislation, such as carbon pricing. Climate change is probably one of the most important environmental issues of our time. It is top of mind for people in my riding of Kootenay—Columbia.

Pensions are important. I held a telephone town hall and almost 4,000 people stayed on the line to talk about pensions. Veterans are another important issue to Canadians. Cannabis is a hot issue in my riding. Part of my riding traditionally gets a fair bit of its economy from cannabis; these are outdoor growers. The Canada Infrastructure Bank would privatize our infrastructure projects. Mineral exploration and mining are very important in my riding.

When I look at this list, I see that every one of the items on this list deserves individual debate and discussion. I am wondering if the member would agree that these items should be split out and debated separately because of their importance, not only to my constituents of Kootenay—Columbia but to all Canadians.

[Alaina Lockhart, Liberal, Parliamentary Secretary for Small Business and Tourism]

Mr. Speaker, before I begin, I wish to inform the House that I will be splitting my time today with the member for Gatineau. I would also like to extend condolences to Humboldt, to the team, the families, the billets, and to the entire community, on behalf of the people of Fundy Royal. Our hearts are with them.

Today I rise to speak on Bill C-74, the budget implementation act. This is a budget that builds on the investments made by the previous budgets. It takes it to the next level to ensure that all Canadians have an opportunity to benefit from the growth we are seeing in the economy.

Today I would like to focus on a few items that are having, and will have, a profound impact in my riding of Fundy Royal. The riding of Fundy Royal is predominantly rural, nestled between three southern cities in New Brunswick, and bordered to the north by the beautiful Bay of Fundy. Although the area is peppered with communities that are unique, each in their own way, there is a common thread that runs through them: a tenacity to grow, prosper, and to build a better life for our next generation.

I came to Ottawa with a mission to address the concerns of my constituents, concerns I hear daily, about the sustainability and growth of our communities and the local economy. This became a bigger challenge shortly after I was elected when the Potash Corporation of Saskatchewan announced it was indefinitely suspending operations at the Picadilly mine. I am proud of how local leaders responded, how we quickly found a path forward, and how the federal government was there as a partner. At that time, our government did not waver in its commitment to Fundy Royal, and this budget is a continuation of the commitment to everyday Canadians who are facing challenges and are committed to progress.

I have always subscribed to the theory that a high tide raises all boats. Many of the commitments in budget 2018 will make sure that the most vulnerable in our communities are provided with the resources they require to find stability in their lives and participate more fully in society. These are measures that build on our monumental investments in the Canada child benefit, which supports over 16,000 children each month in Fundy Royal; skills training investments; flexibility in El, which allows Canadians to return to school to upgrade their education; and a new national housing strategy, which will provide updated and additional rental units in our communities.

We are also building on investments for seniors, who are an important part of our families and communities. In addition to the special provisions for seniors in the housing strategy and the increase to the guaranteed income supplement for single seniors introduced previously, budget 2018 goes further for seniors in New Brunswick. A commitment to a healthy seniors pilot project will see $75 million to combat challenges produced by an aging demographic and determine best practices to keep seniors healthy and in their homes.

Budget 2018 also recognizes the struggles of those who are working hard to join the middle class. The Canada workers benefit was introduced to encourage more people to join the workforce. This will offer real help to over two million Canadians while raising 70,000 out of poverty.

Budget 2018 also recognizes the reality of seasonal work and the integral part it plays in rural economies like Fundy Royal. To support seasonal workers who have exhausted their El benefits, my colleague from Acadie—Bathurst announced an agreement with the Province of New Brunswick just last week. This will provide the province with $2.5 million immediately to directly help workers who have been impacted. The seasonal worker program offers income support as well as training and work experience for seasonal workers in the Restigouche-Albert region of New Brunswick, for those in the fisheries, agriculture, forestry, and tourism industries.

Our government continues to focus on growth in Atlantic Canada, and investing in the great people, communities, and ideas in the Atlantic region. That is what this budget does. It empowers women, parents, employees, small businesses, industry, and our regional economies.

For instance, spruce budworm is a native insect that periodically kills large numbers of balsam fir and spruce trees across eastern Canada. We saw this happen about 30 years ago. We know it is cyclical, and the threat is present again today. The economic impact of these disturbances has the potential to wipe out up to three million hectares of crown land in New Brunswick alone, and negatively impact up to 1,900 jobs every year if left unchecked.

I would like to thank my colleague from South Shore—St. Margarets for reflecting on this already during the debate on budgetary policy. I can very well attest to the threat that the outbreak poses in Fundy Royal. Forestry workers in Fundy Royal have a sense of relief knowing that our government is committing nearly $75 million over five years to combatting spruce budworm. This will support the work of the healthy forests network to continue with its early intervention strategy, which has been showing very promising results over the past several years.

We have thriving fisheries in Fundy Royal, and the continued growth of these fisheries requires ongoing investments in small craft harbours. This budget commits $250 million on a cash basis over two years, starting in 2018-19, for projects like extending the breakwater in Alma.

Fundy Royal is one of the most beautiful places in Canada. Not only is it home to the Fundy Biosphere, but also to the Hammond River, the Kennebecasis Valley, and the Fundy Trail. I am proud of the work that our local environmental organizations are doing, and I am glad that this budget will provide the resources needed to preserve and safeguard our environment. This budget makes one of the largest investments in nature conservation in Canadian history, $1.3 billion, to protect more land, waters, species at risk, and preserve biodiversity. It is up to all of us to protect the environment so that future generations of Canadians can continue to hike the Fundy Footpath, mountain bike on the bluff, or kayak in St. Martins.

The Conservation Council of New Brunswick says that this groundbreaking investment by our government shows it is listening and acting to an unprecedented degree on Canadians' deep connection to nature and our desire to see the forests, parks, lands, and waters we love, and the wildlife that calls these places home, protected. Lois Corbett, the executive director of the council, said “This is a huge breakthrough and a day to celebrate for New Brunswickers and folks clear across the country who love nature, wildlife, and the outdoors."

Canada's new tourism vision places high importance on our rich natural surroundings, especially Parks Canada sites. More than 22 million people each year visit the national parks, historic sites, and marine conservation areas administered by Parks Canada. I am delighted to note that admission to Parks Canada sites, including Fundy National Park, will now be permanently free for those aged 17 and under.

One of the most exciting parts of my job as the member of Parliament for Fundy Royal is talking to future generations of political leaders. In December, I received a letter from a student at Three Oaks Senior High School in Summerside, P.E.I., in the riding of my friend, the member for Egmont. Kate was asked to write a member of Parliament about an issue of concern to her. She spoke about mental health with conviction, saying there are growing number of cases of anxiety, depression, and even suicide, and that it is becoming normal in our daily lives which should not be occurring in our society. She said that we need to stop the issue before it becomes worse. We agree with Kate. In our efforts to support veterans, we have further extended support by ensuring that the medical expense tax credit will now recognize the costs of psychiatric service dogs, provide assistance to the amazing organizations that support veterans, and invest in research for first responders who suffer from these invisible disabilities.

Our government is also supporting research for autism, as well as diseases such as Alzheimer's and dementia.

This budget is revolutionary, in that it focuses on Canada's future. It puts people first, and focuses on what matters most to the people of Fundy Royal. It invests in the protection of our environment, and promotes equality and prosperity for those from Hillsborough to Nauwigewauk and around the world. I am proud to stand and speak to this budget, one that recognizes the potential growth of our country and focuses on equality.

As part of this year's budget, the finance minister announced our government's women entrepreneurship strategy that will help women grow their businesses by accessing financing, talent, networks, and expertise. The women entrepreneurship strategy is part of a broader effort to address gender-related barriers that have impaired the progress of women in business. As a former small business owner, this is near and dear to my heart. I know the potential is there if we provide a path forward for more women to succeed and grow as entrepreneurs.

Like many others in Fundy Royal and in the House, I am driven when I think about our youth and the future they should have in Canada. It is why I became involved in politics, to ensure I am part of a movement to make sure they will have a prosperous future in our home province of New Brunswick. By becoming the first woman elected in Fundy Royal, I, like all of the men elected before me, am confident that I can make a difference, not only in the lives of these youth, but also in the lives of all Canadians.

Each progressive budget that has been presented by our government is a step in the right direction, and this budget is no different. I am confident that it will provide lasting challenges for generations to come.

[Alaina Lockhart, Liberal, Parliamentary Secretary for Small Business and Tourism]

Mr. Speaker, I would like to begin by offering condolences to Humboldt, to the team, the families, the billets, and the entire community from the people of Fundy Royal. Our hearts are with them.

I rise today to speak to Bill C-74, the first budget implementation act. This budget builds on the investments made in our previous budgets and really takes it to the next level to ensure that all Canadians have an opportunity to benefit from the growth that we see in the economy. Today I would like to focus on a few of the items that are having, and will have, a profound impact in my riding of Fundy Royal.

The riding of Fundy Royal is predominantly rural, nestled between three southern cities in New Brunswick, and bordered on the north by the beautiful Bay of Fundy. Although the area is peppered by communities that are unique in their own way, there is a common thread that runs through them—

The House resumed consideration of the motion that Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures be read the second time and referred to a committee.

[Pam Goldsmith-Jones, Liberal, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, I appreciate the opportunity to discuss Bill C-74 and the measures in budget 2018. This budget implementation act is the government's latest phase in growing and strengthening the middle class, promoting equality, and investing in the economy of the future. It is important to take a step back to see how Canadians have fared over these past couple of years. The government's plan to grow the middle class is working. Our plan is working because Canadians are working.

Over the last two years, hard-working Canadians have created nearly 600,000 new jobs, most of them full time. Unemployment rates are near the lowest levels that we have seen in over 40 years. Since 2016, Canada has led all other G7 countries in economic growth. As a result, we are able to continue to invest in the things that matter to Canadians while making steady improvements to the government's bottom line. Two weeks ago, the Minister of Infrastructure and Communities announced that the Government of British Columbia and the Government of Canada have come to an agreement on the investing in Canada infrastructure plan announced in budget 2016. Speaking as a representative from British Columbia, under the agreement, British Columbia will receive $4.1 billion from 2018 to 2028, making significant investments in our communities' public, recreational, green, and rural infrastructure. Let me also reassure my hon. colleagues that the government is being diligent in making sure that Canada remains the best place to invest, create jobs, and do business. Our future prosperity depends on making sure that every Canadian has an equal and fair chance at success.

For many Canadians, being a parent and raising a family is the most important part of their lives. Employment insurance maternity and parental benefits offer vital income support to parents during the critical period in early childhood when they need to take time off from work to care for their children. Through budget 2018, our government is proposing a new EI parental sharing benefit to support equality in the home and workplace, by providing up to eight additional weeks of benefits when both parents agree to share parental leave. This “use it or lose it“ incentive encourages a second parent in two-parent families to share the work of raising their children more equally. This new EI parental sharing benefit would allow greater flexibility for new mothers and fathers who want to return to work sooner if they so choose, knowing that their families have the support they need; supporting all two-parent families, including adoptive parents and same-sex couples; and allowing parents to share more family and home responsibilities, leading to fairer, less discriminatory hiring practices for women, because men and women have the option to stay at home with their children equally. We need to ensure that the benefits of a growing economy are felt by more and more people.

At this point, I would like to turn to our support for veterans. In my riding and across the country, we are grateful to the men and women who have served and are serving in uniform. It is our responsibility to ensure that they get the services and support they are owed. In West Vancouver—Sunshine Coast—Sea to Sky Country, we have nine Legions, and nine remarkable ceremonies on Remembrance Day. These continue to grow in terms of attendance and reflect the deep regard of Canadians for veterans. We know it is our duty to uphold the men and women who serve our nation in uniform. We need to listen to and take action to support our veterans who have served with valour, dignity, and sacrifice. The Government of Canada is committed to supporting Canada's veterans and their families. We owe an enormous debt of gratitude to them, and I am pleased to offer comments outlining our commitment.

On December 20, 2017, the government unveiled its pension for life plan, a program designed to reduce the complexity of support programs available to veterans and their families. It proposes a broader range of benefits, including financial stability to Canada's veterans, with a particular focus on support for veterans with the most severe disabilities. Taking a closer look, the three new benefits that provide recognition, income support, and stability to Canada's veterans who experience a service-related injury or illness look like this. The pension for life plan would provide, under pain and suffering compensation, a monthly tax-free payment for life of up to $1,150 for ill and injured veterans. The plan also proposes, for additional pain and suffering compensation, a monthly tax-free payment for life of up to $1,500 for veterans whose injuries greatly impact their quality of life. The plan also proposes to provide an income replacement benefit, that is, monthly income replacement at 90% of a veteran's pre-release salary.

These new elements represent an additional investment of almost $3.6 billion to support Canada's veterans. These new services and benefits would impact lives significantly. Pension for life would mean that a 25-year-old retired corporal who is 100% disabled would receive more than $5,800 in monthly support. For a 50-year-old retired major who is 100% disabled, monthly support would be almost $9,000.

The bill before us includes amendments to the Pension Act and the Veterans Well-being Act to put measures of the pension for life plan into effect. It would also provide income replacement at 90% of pre-release salary for veterans who are facing barriers returning to work after military service.

The government recognizes that psychiatric service dogs play an important role in helping Canadians cope with conditions like post-traumatic stress disorder. Through this bill, the government proposes to expand the medical expense tax credit to recognize costs for these animals for 2018 and future tax years. This measure would directly benefit veterans and others in the disability community who rely on psychiatric service dogs. This measure also complements the work of organizations that support them, such as the Royal Canadian Legion, and Paws Fur Thought, which provide service dogs to veterans and first responders with invisible disabilities.

In conclusion, to face the challenges of today and tomorrow, we will need the hard work, health, and creativity of all Canadians, including our veterans and seniors. One of the ways to help make that happen is by strengthening the programs that make the biggest difference in people's lives and by making those benefits easier to get.

Since 2016, the government has put in place substantial improvements to the benefits and services available for veterans. For example, the government has raised financial supports for veterans and caregivers, introduced new education and training benefits, and expanded a range of services available to the families of medically released veterans. When combined with existing services and benefits to help veterans in a wide range of areas, including education, employment, caregiver support, and physical and mental health, the Government of Canada's investments since 2016 add up to nearly $10 billion. These investments are the right thing to do to honour our nation's veterans, seniors, and all Canadians.

For that reason, I urge my colleagues to support the budget implementation act.

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

Mr. Speaker, the measures contained in Bill C-74 are real. They impact people in my community and communities across this country, whether it is the indexation of the CCB, implementing the Canada workers benefit, whether it is putting a price on carbon. I could go on and on. Whether it is encouraging women to enter the labour force in greater numbers, closing the wage gap, all of these measures, many of them contained in Bill C-74, are real measures which impact real people every day. They are working hard and trying to save for their families and their future. I am proud to be part of a government that has put forth these measures as making a real difference in people's lives, not some theoretical justification.

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

Mr. Speaker, I will be splitting my time today with my hon. colleague from the riding of West Vancouver—Sunshine Coast—Sea to Sky Country.

It gives me great pleasure to speak to Bill C-74, the budget implementation act, 2018, No.1, which is intended to strengthen the middle class and make sure all Canadians have the skills and opportunities they need to succeed.

Budget 2018, appropriately entitled “Equality + Growth: A Strong Middle Class”, is a statement that continues to build upon the solid foundation laid out in our government's prior two budgets.

Our economy is strong and the future for our country and for all Canadians is bright. Our progress as a government over the last two and a half years is something of which we can all be proud.

Hard-working Canadians, including those in my riding of Vaughan—Woodbridge, are taking risks, investing in their communities and their businesses. Due to their efforts over 500,000 net new jobs have been created, an overwhelming majority of which are full time.

Our unemployment rate is below 6%, the lowest in 40 years, and thanks to the middle-class tax cut, nine million Canadians are paying less tax. Over a period of five years, that will add up to more than $20 billion in tax relief for Canadian families.

Our government has ambitiously completed historical and progressive trade deals, including CETA, which will create thousands of good middle-class jobs for Canadians, will strengthen economic relations, and will allow Canadian companies unlimited access to over 500 million consumers.

Putting the interests of the middle class at the centre of our trade discussions ensures that Canadian businesses and the Canadian economy will reap tangible benefits.

We have also put in place an infrastructure plan that invests billions in public transit so commuters in my riding of Vaughan—Woodbridge can get home sooner to their families. This we can see is real tangible progress for all Canadians.

Our vision strengthens Canada's social fabric and balances the desire for a strong economy, while introducing long-term measures for a healthy environment. This includes pan-Canadian pricing for carbon pollution, an important measure in Bill C-74. Each province will determine how to spend the money generated from carbon pricing. This is the right approach.

I do wish to stress that all the measures in Budget 2018 and laid out in Bill C-74, in my view, only further strengthen our fiscal position.

As an economist and someone with over two decades of experience in the private sector, I have seen and experienced the ups and downs of the global economy, including the 2008 global financial crisis and before that the technology bubble. I know how important it is to maintain a strong fiscal framework.

I am proud to say that our plan includes a gradual reduction in the federal debt-to-GDP ratio. According to the International Monetary Fund, Canada has the lowest net debt-to-GDP ratio in all G7 countries.

We have looked at Bill C-74 on a larger scale, so why not look at how the measures we have laid out in this bill would directly affect Canadians in their day-to-day life.

Let us examine the Canada child benefit.

In my riding of Vaughan—Woodbridge, the CCB is assisting thousands of families. The numbers speak for themselves. In one year alone, CCB payments benefited 19,400 children in my wonderful riding, with approximately 10,400 payments and an average tax-free payment of $5,400. This is approximately $59 million that is delivered tax free to families in Vaughan—Woodbridge and to 337 other ridings in Canada. This is money which will assist families with paying for their kids' sports, clothes, or can help save for their children's future.

Bill C-74 indexes the Canada child benefit beginning in July 2018, that is, two years earlier than originally planned, to help families deal with the high cost of raising children.

It is estimated that this measure will provide an additional $2.1 billion to families in Ontario alone until 2022-23. That is the kind of leadership Canadians expect from our government.

At this time, the CCB is helping lift millions of families and hundreds of thousands of children out of poverty across the country.

These measures are not only putting more money in the pockets of numerous Canadians families, but they will also positively affect business owners across the country.

In my riding of Vaughan—Woodbridge, the city of Vaughan is home to over 11,000 small and medium-size businesses, employing more than 208,000 people. I am proud to say the city of Vaughan is the largest employment area in the whole York Region.

My riding is home to many businesses, from the large, multinational companies like FedEx and Home Depot, to many family-run firms, including Vision Enterprises, Quality Cheese Inc., Decor-Rest Furniture Manufacturers, to family-run bakeries, which I frequent all too often. When I am home, my family and I enjoy visiting our favourites like Sweet Boutique, La Strada Bakery, and St. Phillips Bakery to just name a few.

With Bill C-74, we will strengthen our businesses by lowering the small business tax rate to 10% effective January 1, 2018, and to 9% effective January 1, 2019.

Once fully implemented, those hard-working small business owners will see a tax reduction of up to $7,500 annually. This measure is a cumulative tax reduction of nearly $3 billion over the next five years in the pockets of hard-working Canadians across the country.

Our government initiated extensive consultations to make sure that entrepreneurs can continue to invest in and grow their business, but also to ensure that all Canadians are paying their fair share of taxes and that the economy is working for everyone.

I know this is crucially important for the many successful private business owners in my riding of Vaughan—Woodbridge who are involved in various industries, from advanced manufacturing, high tech, construction, and the food and beverage sector. I have met with many of these hard-working large, medium, and small business owners, some employing 10 workers and others employing thousands. I am incredibly proud of their hard work and to be their voice in Ottawa.

Our government will ensure that business owners can continue to invest in their businesses and also increase flexibility for owners to build a cushion of savings for personal circumstances, such as maternity leave or retirement.

However, we will restrict tax deferments for passive investments in private corporations. Once a private corporation has amassed significant passive investments, it will no longer be subject to the small business tax rate. This measure will affect less than 3%, or about 50,000, of Canadian-controlled private corporations.

As I noted in my introduction, our government is committed to helping all Canadians succeed, and we are putting money in the pockets of those who need it most.

In budget 2018, our government makes a significant investment in boosting the earnings of low-income workers with a near $1 billion investment in the Canada workers benefit. The investment will lift 70,000 Canadians out of poverty and, as important, encourage more people to join the workforce.

With the legislative changes that will automatically enrol Canadians, an estimated 300,000 additional low-income workers will receive the new CWB for the 2019 tax year. For example, an individual in my riding who is earning $20,000 annually, which is not a large sum for a lot of people, and some people make that stretch a long way, will receive an additional $500 from this measure, where previously no boost was received.

As the son of parents who immigrated to Canada with nothing but the desire to work and create a better future for their family, I know that the Canada workers benefit will improve the living conditions of thousands of Canadian workers.

I have touched merely upon a few things that Bill C-74 introduces. The indexation of the Canada child benefit, the Canada workers benefit, and support for small businesses are all measures that will benefit millions of Canadian workers and Canadian businesses from coast to coast to coast.

These measures will lift tens of thousands out of poverty, help families in raising their kids, encourage more folks to enter the labour force, and allow business owners to invest more money to grow their businesses. These are real, tangible, positive outcomes that will better the lives of Canadian families, business owners, and our economy. I am proud of budget 2018 and what is in Bill C-74.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Speaker, I will talk about the size and scope of Bill C-74. I would like to start with the size. I have been here for a few years, and a number of my colleagues have been as well, and we recall the worst years of the Harper government, when massive 300- and 400-page bricks would be dropped in the middle of the House of Commons.

Those omnibus bills, as part of the budget implementation act, were designed to hit sometimes a couple of dozen areas and various pieces of legislation. It was a deliberate tactic, which was anti-democratic and designed to hide from the Canadian public what was actually in the budget implementation act. Of course, we spoke very loudly about that, as did many Canadians, seeing it as a fundamentally anti-democratic approach to government, with 300 or 400 pages touching 24 or 25 different pieces of legislation. What it did was hide the intent of the budget in a very real way.

At that time, we were the official opposition, but the Liberals, as the third party, also rose in this House and repeatedly condemned the Harper government for putting in place anti-democratic omnibus legislation. My colleagues will recall Liberal members standing up and saying that having 300 or 400 pages of legislation that is dumped in one brick hitting 24 or 25 different pieces of legislation is fundamentally anti-democratic. It does not allow Canadians to know what is really in the budget implementation act, and it does not provide the kind of clarity and transparency that hopefully we would all seek to see in a budget implementation act, which is perhaps one of the most important pieces of legislation brought forward by Parliamentarians, who are elected by the people of this country to come together and discuss transparently and democratically the nation's business. This piece of legislation is one of the most important.

Thus, my colleagues can understand my complete dismay when the Liberals, just a couple of weeks ago, tabled their budget implementation act. We have had previous budget implementation acts of 300, 350, 400, and sometimes as many as 450 pages of legislation tackling 27, 28, even 29 different pieces of legislation.

The Liberals made commitments of sunny ways and a new approach to transparency. We all recall, back in 2015, the Prime Minister making those commitments, that the Liberals would take a completely different approach to governance, that they would have respect for democracy and bring in a different type of electoral process, putting away first past the post. The Liberals also said very clearly, many times, that they were going to do away with omnibus legislation.

However, what did the Liberals table? They tabled the largest omnibus bill in Canadian history, 556 pages, amending not just 28, 29, or 30 different acts, but 44 separate pieces of legislation. It is nearly 100 pages longer than any of the omnibus legislation we have seen in the past, which the Liberals used to criticize and attack. We are 100 pages beyond what the Conservatives used to do, 100 pages beyond the Harper record. We have the biggest, fattest, and least transparent budget implementation act in Canadian history.

There is no other way to put it. This is a profound betrayal of everything the Liberals said they stood for in 2015, every commitment they made to Canadians at that time, and every speech the Prime Minister and other Liberal MPs made in the House of Commons saying that they were going to do away with omnibus legislation. The size of this is beyond belief. We have never seen anything like it, 550 pages. It is beyond anything the Harper government imagined or was able to table. It is that much worse.

It will come as no surprise to you, Mr. Speaker, that in the coming days we will be endeavouring to put the case to you, because, as Speaker of the House of Commons, on behalf of all Canadians, you have the ability to divide or carve up this omnibus legislation and create stand-alone bills that can be voted on separately. That power, which has been given to you, Mr. Speaker, is sacrosanct and so important. When the government is refusing to heed Canadians' calls, when it is refusing to be transparent and democratic, then the Speaker of the House of Commons has the ability to intervene, and we will be asking and laying out the case in the coming days for you to do just that. It is fundamentally important.

That is the start of what is probably one of the most cynical budget implementation acts we have ever seen, cynical in its size and in its scope. Before I go into those details, let us talk about what the current situation is for the vast majority of Canadians, because this is very germane to the debate we are going to be having over the next few days. Far from having sunny days and sunny ways, as the Prime Minister likes to say, as he goes around the globe to various meetings, Canadians are actually struggling to make ends meet in a way that is perhaps unprecedented, beyond the depressions and recessions we have seen in the past. We now have a new reality that the government should have taken account of.

The new reality is that the average Canadian family now has, inflation-adjusted, the worst family debt load in any period in Canadian history. The average Canadian family is struggling under a worse debt load than it had under the Great Depression or under recessions. It is struggling under a massive debt load far beyond its annual earnings. That debt load is making it difficult for so many families in this country to make ends meet.

The average Canadian family is now surviving on temporary or part-time work. Despite the fact that the finance minister will stand in the House and say how things are rosy out there, the jobs that are being created tend to be temporary in nature. They do not allow for the family-sustaining type of employment that the NDP has always promoted and that we believe very strongly in achieving. However, that takes investments, forethought, and planning, which we do not see from the government.

When we look at the situation of the average Canadian family, as the price of housing goes up and rents go up, the homelessness and the housing prices are beyond belief. The debt load is considerable and growing. For most Canadians, temporary or part-time work, or cobbling together a series of part-time jobs, is the alternative they have economically.

That is the context of the budget, the context that the government should have paid close attention to. Instead, the Liberals tabled the largest and most fundamentally anti-democratic omnibus piece of legislation in Canadian history, 100 pages beyond anything Mr. Harper did, and they did so in such a timid way that even the scope of the budget itself has been eroded.

It is profoundly cynical as a budget implementation act because it goes far below where the budget was, which was already very timid, so we are looking at an extremely timid budget implementation act in terms of what it seeks to achieve. At the same time, it is fundamentally anti-democratic in the size of what has been dumped into this omnibus legislation.

What could have been in this budget implementation act and should have been in the budget? We talked about this a number of times. I spoke at a press conference with Jagmeet Singh, the national NDP leader, a very charismatic and energetic guy, and we gave some direction to the federal government as to what it should put in the budget. One of the most important items was tackling what is a profoundly unfair tax system. I also intervened in a letter to the finance minister with the hon. member for Nanaimo—Ladysmith, who is an extremely effective member of Parliament, and we spoke about gender equality.

When we look at what is in the budget, we see absolutely nothing that touches on the issue of tax fairness. Tens of billions of dollars is going offshore that the government refuses to cap or take action on in any way. In fact, on the current government's watch, more of these very egregious tax treaties, which are basically no-tax treaties, are being signed with notorious tax havens like Antigua, Barbuda, Grenada, and the Cook Islands. The Conservatives signed them all the time. However, the Liberals are signing even more.

The Liberals did nothing to tackle the issue of the stock options loophole, which is a nefarious loophole that in the latest year we have figures for helped 75 wealthy corporate CEOs pocket $6 million each, for a grand total cost to Canadian taxpayers of half a billion dollars. That was $6 million each, on average, for 75 of Canada's wealthiest corporate CEOs who used the stock option loophole. Jagmeet Singh and I directed our comments to the finance minister and the Prime Minister stating that it needs to end. The Liberals could have chosen to end the stock option loophole and take action on the issue of tax havens. However, they did neither. They are allowing that privilege, the transfer of wealth that we are seeing, and a growing inequality in this country, such that now a third of the Canadian population has as much wealth as two Canadian billionaires, something that came out just a few months ago and continues to reverberate with regular Canadians because they see the inequality in the tax system. They see a tax system that is built to be profoundly unequal, and of course they are reacting, because the Liberals and the Prime Minister promised in the last campaign to take action against the proliferation of tax havens and the profoundly unfair tax system that makes sure that tradespeople, small business owners, nurses, or truck drivers pay their fair share of taxes, yet someone who is running one of Canada's biggest and most profitable corporations does not have to worry about that.

As members know, the Canadian Centre for Policy Alternatives has now estimated the real marginal income tax rate for Canada's biggest corporations at less than 10%. It is at 9.8% on average. There are a lot of corporations that are not paying any tax at all. However, the average tax rate is now 9.8%, which is far lower than for regular individuals, who are working hard each and every day to put food on the table, seeing an erosion of their services, and participating in a tax system that is absolutely and profoundly unfair.

That is what could have been in this budget implementation act. However, there is no sign of that at all.

We would expect that there would be provisions from the budget in the budget implementation act. This is something I would like to tackle now.

When we talk about the scope of the budget implementation act, there are two things that come to mind immediately. The first is the issue of pharmacare. I have spoken in this House many times about constituents, as have my colleagues. All of us have raised specific cases as to why it is important to have pharmacare in this country. First off, as a country we pay too much, and many Canadians are left to choose between putting food on the table or paying for their medication. Jim, whom I have cited a number of times, is outside here, just off Wellington Street, and begs every day for the $580 he needs every month to pay for the medication that keeps him alive. Because there is no pharmacare, Jim and so many others like him are forced into that awful choice.

We, the Parliamentary Budget Officer, and every expert who has analyzed this issue have said that bringing in pharmacare makes sense from a whole range of perspectives. Overall, it actually saves money for Canadians. It allows us to bring down the costs of medications. It reduces costs for some small businesses that pay up to $6 billion a year for medical plans that allow their employees to have access to medications.

Therefore, for all of those reasons, it made sense to bring in pharmacare. We certainly heard in the weeks coming up to the budget a refrain that the Liberal government was going to bring in pharmacare, so we should watch out, because this budget was going to steal the NDP's thunder. We are happy to have our ideas stolen; we just do not like to have them gawking at our ideas, because gawking does not mean they are implementing them, which is what they should be doing. They should be implementing pharmacare right now. That is what they should be doing.

We saw in the budget that instead of doing anything practical to address the issue of pharmacare, the Liberals promised a study, and that was it. There was nothing more. As a result, the scope of the budget implementation act is a mighty failure when it comes to actually putting in place programs that matter.

We then come to the issue of gender parity. My colleague from Nanaimo—Ladysmith has been a very articulate spokesperson on this issue. We raised it with the Minister of Finance and the Prime Minister prior to the budget. There were some words in the budget about moving forward on pay equity. We saw that. We read that. Yes, the government was going to implement pay equity, finally, after decades.

Then, as I madly perused the 556 pages of the most massive and most bloated omnibus legislation in Canadian history, I looked for something that indicated that the Liberals would implement pay equity, but there was nothing, not a word. The Liberals promised it in the budget, and they have already broken their promise with the budget implementation act a couple of weeks later. It is unbelievable. It was an issue that the Liberals admitted it was time to take action on. In the transfer from the budget to the budget implementation act, it is not as if they were trying to scale it down. At 556 pages, they were dumping everything they could into it, but they decided not to dump in pay equity, which was actually in the budget and could be in the budget implementation act as a respectful and democratic way of processing the commitment that was made in the budget, but there was absolutely nothing. It is another broken promise, another fail. It is appalling to me.

Therefore, looking at the scope of the budget implementation act, not only do we see all sorts of things thrown into the BIA that should not be there and that we will be requesting that you remove, Mr. Speaker, so that we can have the appropriate democratic process even though the government does not seem to want to respect that, but there are also things that should be there that are simply not. That is the real failure of this budget implementation act.

It is so cynical in its nature. Everything that the Liberals said they stood for in 2015 they no longer stand for. We all saw those promises about making Parliament work, making it more transparent and democratic. On every commitment that they made to the public in 2015, we are seeing exactly the opposite in the greatest, most bloated omnibus legislation in Canadian history, not tabled by the Harper Conservatives, as bad as they were, but tabled by this Prime Minister's Liberal government. What a failure for those Canadians who have been waiting for decades for pay equity. What a failure for those Canadians who have been waiting for decades for pharmacare so that they do not have to beg to raise enough money to pay for their medication or do not have to choose between paying the rent and paying for their medication. On behalf of all those Canadians across the country who were hoping to see a different approach from the current government, I can say we are all profoundly disappointed by this budget implementation act. As a result, we will be voting against Bill C-74.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, there are only two questions that Parliament must ask when presented with a budget: what does it cost us, and what do we get for it as Canadians?

Let us start with the cost of this budget. Costs are borne out through government in three ways: spending, debt, and taxes. Debt and taxes are the symptoms; spending is the cause. Whatever Parliament agrees to allow the government to spend, it must ultimately tax or borrow from the citizens and from bondholders.

The Liberal government loves to spend. The stats show that it has been increasing spending at an annual rate of roughly 6.5% to 7% per year, which is three times the combined rate of inflation and population growth. In other words, spending is growing three times as fast as the need. That spending, of course, requires a source. The government has been plundering taxpayers and borrowing to pay for that spending ever since it took office.

Let me talk briefly about the government's approach to spending. In an adjoining piece of legislation to this budget bill, the government will attempt to change the way in which Parliament approves the executive branch's expenditure of money. We, as Canadians, live in the British parliamentary system, which for roughly 800 years has meant that the power of the purse rests with the elected officials and that the crown cannot spend what Parliament does not approve. That principle originated in the fields of Great Britain at the time that King John signed the Magna Carta.

Typically governments have come forward before the House of Commons with detailed spending plans, item by item, agency by agency, department by department, and purpose by purpose, saying “Here is what we want to spend. Here is what it is for.” Then, Parliament has scrutinized that spending and passed it, and that government has been restricted by the specificity that it put in that legislation. In other words, it can only spend the money on the things it said it would, and only in the amounts that it said it would spend.

Instead, this year the government wants to do something that has only once been done in Canadian history, and then only during a crisis, and that is for Parliament to approve $7 billion of discretionary spending, which ministers on the government's Treasury Board can spend whatever they want on, as long as it stays under that $7-billion limit.

As I said, normally that $7 billion would be carefully earmarked in the main estimates that come before the House, and we as parliamentarians would approve or reject it. If it were approved, then the government would have to spend each dollar where it said it would. However, not this time.

The government has changed the system in a way that allows the government to have a big bundle of cash for a group of politicians sitting on the Treasury Board to allocate as they wish. As it stands, based on the system of financial reporting, the results of that spending will only come out in subsequent public accounts.

The public accounts for the fiscal year we have just entered will not come out until the fall of 2019. As members all know, we will be in an election at that time, and therefore those accounts cannot be tabled in the House until after the election. What the government is asking us to do is approve $7 billion of discretionary spending, and it will get back to us after the election on how it spent it.

One example of the attitude of the government to spending money was what the parliamentary secretary to the Minister of Finance was saying. He was bragging that the government has spent an extra $1 billion on tax collectors. Normally, most governments blush when they talk about the resources they put into tax collecting departments. The Liberal government openly brags about it.

We all know that tax collection is necessary for any functional country. We also know that given their druthers, the Canadian people would like to see lower taxes and lower costs, and less money spent on bureaucrats hounding our small businesses and workers, as has become the customary practice of the government. We have seen tax collectors go after the tips of waitresses, shoe salesmen's discounts, and the disability tax credit for people suffering with diabetes.

However, the government brags openly about its expenditure on those same tax collectors, which is the Liberal approach to spending: Spend more. Spend now. Spend faster. What does that bring? It brings debt, which is the next pillar of the current Liberal government's plan. It is more debt.

The Liberals ran in the last election on a $10-billion deficit, which meant they would increase the national debt by a mere $10 billion a year. In the first two budgets, that deficit was twice what they promised. This time, it will be three times what they promised. Not only that, they promised that the deficit would be gone by 2019, which is next year. Now they say that will not happen for another quarter century. During that time, Canada's national government will add almost half a trillion dollars in additional debt. That assumes that the government introduces no additional spending in the upcoming pre-election budget next year—an unlikely story. It also assumes that direct program spending will only go up by about 1.5% over the next five years, when the government has been increasing that spending at a rate of about 5.5% since it took office. Therefore, we are expected to believe that the Prime Minister is a new man, that he has changed, and that he will not increase spending at 5.5% but only 1.5%. Who believes that the Prime Minister has even the intention of changing his ways, when his words have not suggested that he believes restraint is necessary?

Originally the government told us that its plan, its anchor, was that the deficit must never be more than $10 billion. Now the Liberals have shattered that promise. The Liberals said their anchor was that they would not add more than $25 billion total. Well, they have already done almost double that in new debt since taking office. They released that anchor as well.

However, the new anchor that the Liberals say will guide them in their spending is that the debt-to-GDP ratio will decline. That is, the debt will never be allowed to grow faster than the economy. Now, there are problems with using that measurement as an anchor, which I will list. One, the debt-to-GDP ratio of the Government of Canada is an incomplete measure of the country's ability to withstand indebtedness.

The Canadian government is supported by taxpayers. Those taxpayers have to support other levels of government which also have debt. Alberta is adding almost $10 billion to its debt this year, which means that one-fifth of every expenditure that the Government of Alberta makes is paid for by borrowing. Ontario has doubled its debt in the last 10 years alone, and it is the most indebted subnational government in North America. Atlantic provinces are similarly indebted. Their aging populations will retire in disproportionately large numbers, meaning fewer taxpayers and more people needing health care at a time when their provinces are already struggling with large debt interest payments to lenders. Therefore, the same taxpayers that the federal government are relying on to support the federal debt also have provincial debts that are growing exponentially. Finally, those taxpayers have personal debts, which happen to be among the largest in the OECD. Right now, the average Canadian household has $1.70 in personal debt for every dollar in disposable income.

If we take the personal debt, the corporate debt, and the government debt of the entire economy, it is three times the size of GDP, which is a larger ratio than Greece, Spain, or other basket cases on debt around the world. This is according to Gluskin Sheff, which is a major financial firm that performed that calculation just a month and a half ago. Therefore, if we take all the debt that the Canadian economy is supporting, we are in a worse financial position today than is Greece.

The government just assumes that all of its good luck will continue. Oil prices have doubled. The American economy is roaring. The world economy has picked up. Interest rates have been at historic lows. The real estate bubble in Toronto and Vancouver has created a short-term and unsustainable employment boom and revenue for the government it cannot count on. All of these events are temporary. They are out of the government's control, and they could be gone just as quickly as they appeared.

If we are running massive, promise-shattering deficits today, while lady luck is smiling, how will we pay the bills when she starts to frown? The government has not prepared for those eventualities. In fact, its arbitrary debt-to-GDP ratio anchor creates a whole series of perverse policy incentives.

The debt is the numerator in that measurement, and the GDP is the denominator. If we were hit with a financial crisis that caused the GDP to shrink, to reduce the debt-to-GDP ratio, as the government claims is its promise, it would actually have to cut spending dramatically in the middle of a recession, which is exactly the opposite of what it claims should be done during such economic times. It would have to cut spending to reduce the size of government faster than the economy overall was reducing in size, and it would have to do so in a way that would allow it to run budget surpluses in order to pay down the debt at a faster rate than the economy was shrinking.

Who in the House would really think it was responsible to prepare for a rainy day by suggesting that if a financial crisis were a problem and an external threat were to arise, the solution, according to the government's plan, would be to cut spending and dramatically reduce the government's ability to respond? That is effectively what the government's current anchor would require it to do to reduce the debt-to-GDP ratio in the event that a crisis came along and shrunk the GDP. Nevertheless, that is the anchor it chooses to rely upon as it goes forward.

That brings me to taxes, because, as we know, today's deficits are tomorrow's taxes. The government cannot ultimately spend any money that it does not tax, either by taking it out of the pockets of people today or by forcing them to pay interest on debt tomorrow. That interest, by the way, is going to rise by one-third over the next five years under the government's plan, from about $25 billion to $32 billion. That is an increase of $7 billion or $8 billion in the amount Canadian taxpayers will give wealthy bondholders. That is another wealth transfer, by the way, from the working class to the super-rich. That always happens through higher taxes.

What do we know about the government's record already on taxes? According to the Fraser Institute, which conducted an objective and scientific analysis of the taxes paid by middle-class Canadians, 80% are already paying higher taxes under this government, on average $800 more. With other projected tax increases, those the government has already legislated or committed to, it will be about 90% of Canadian taxpayers, and they will pay, on average, over $2,000 more in taxes once the government's full plan is implemented.

Taxpayers are already contributing more to feed the government's insatiable, uncontrollable spending. However, the government is just getting started. It has an additional carbon tax it wants everyone to pay. That tax is laid out in a 206-page section of the budget bill we are now debating. Let us step back a minute and ask ourselves what we were told about this carbon tax.

First, we were told that it would be revenue neutral, that the government would cut taxes as much as it raised them. While people might pay more for gas, groceries, electricity, and other basic essentials, they would get an income tax break or perhaps a consumption tax break. As a result, it would be a strictly neutral transaction shifting taxes from what we earn to what we burn. That was the promise. However, nowhere in these 206 pages of legislation on the federal carbon tax is there any mention of a tax reduction to offset the new burden to be paid by Canadian taxpayers for the carbon tax.

Second, we were told that the carbon tax would be simple. There would be a wholesale levy, and then the marketplace would do its work. The government would put a price on something we do not want, and people would therefore consume less of it, that being carbon-intensive goods, and the problem would solve itself. We would not need all this bureaucracy: regulators, administrators, rules, and accountants to administer the tax on the end of the small business or household. That would all be behind us.

We now have the legislation, and it is 206 pages long. There are permits. There are credits that could be traded between provinces, and there are different rates of taxation for different kinds of carbon products, all of which will have to be sorted out through endless paperwork by high-priced accountants and lawyers who will then administer this scheme.

This carbon tax, as established by this legislation, would benefit some. It would benefit those who are wealthy and well-connected and who have the ability to get their hands on the resulting revenue.

Ontario already has a carbon tax, and while it takes one-third more of the income of a low-income household than that of a rich household, it provides benefits to people who can afford to buy a $150,000 electric Tesla. If someone is a millionaire and can buy a Tesla, that person will get $15,000 as a bonus, but a low-income single mom trying to keep the lights on or pay for gas to get to work will pay more so that the rich guy can have his fancy electric car. It is another wealth transfer to the privileged elite using government as the delivery mechanism to move money from those who earned it to the privileged few who did not.

Herein lies the worst part of the carbon tax, and it is the cover-up, the carbon tax cover-up. For the last two years, I have asked the Liberal government what it would cost the average family to pay the $50-a-tonne carbon tax. The good news is that the government has that information. I know, because I submitted access to information requests for which it released the information. However, it released the information with some black ink over the numbers. We are not allowed to know the numbers. We know there is a cost, and we know that the government knows the cost, but it does not want us to know the cost.

This is the first time in my parliamentary career that a government has imposed a tax without telling people what it will cost them. The basic principle of parliamentary democracy is that the commoners must approve any tax the common people must pay, but we cannot approve what we do not know. If the government is so proud of its carbon tax, why does it not tell people what it will cost them?

Finally, the government will not tell us how much greenhouse gases will be reduced. We do not know the cost and we do not know the benefit, yet we are supposed to judge the cost-to-benefit analysis.

This budget costs too much and will achieve too little, so I am moving a motion to amend the budget bill. I move:

That the motion be amended by deleting all the words after the word “That” and substituting the following: the House decline to give second reading to Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, since the Bill: (a) fails to address the cost of the government's carbon tax to the average Canadian Family; (b) neglects to implement, or to even mention, the government's promise of a balanced budget; and (c) will continue on the path of adding debt at twice the rate foreshadowed by the Minister of Finance.

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

Mr. Speaker, I am very pleased to speak to Bill C-74 on behalf of the Government of Canada, as well as our government's planned investments to strengthen the middle class and maintain the strength and sustainable growth of the Canadian economy. Budget 2018, entitled “Equality + Growth: A Strong Middle Class”, represents the next stage in our plan to invest in people and the communities where they live in order to provide the best opportunities for success to the middle class and all Canadians.

The bill we are talking about today, budget implementation act, 2018, No. 1, is the next step in the plan that our government launched over two years ago. When we took office, we jumped into action by helping develop a confident middle class that stimulates economic growth and that is currently benefiting from more opportunities for success than ever. Giving Canadians the opportunity to reach their full potential is not only the right thing to do, but it is also the smart thing to do for our economy. The decision to invest in the middle class is the right decision. Targeted investments combined with the hard work of Canadians across the country have helped create good, well-paying jobs and will continue to strengthen the economy over the long term.

Canada’s economy is strong and growing, and the government's finances are continuously improving. Since 2016, Canada has been leading the G7 in economic growth. It has the lowest net debt-to-GDP ratio of any G7 country, by far. The federal debt-to-GDP ratio has been firmly placed on a downward track, and based on our projections, the deficit-to-GDP ratio should also drop to 0.5% in 2022-23. Our government knows that its plan is working because Canadians are working. Over the past two years, the Canadian economy has grown and generated 600,000 new jobs, most of which are full time. Today, we have the lowest unemployment rate in nearly 40 years. These jobs have made it possible for Canadians to better meet their families' needs and better plan for their retirement.

However, we know that there is still work to be done. We must ensure that the economy reflects the diversity of our county, a country where all Canadians can contribute to and benefit from the nation's prosperity in a significant way. Bill C-74 contains worthwhile measures. I would like to take a few moments to present a few of them, since they are an important part of our government's plan to help the middle class and all those who are striving to reach their full potential. The government believes that Canada's biggest strength is our diversity. In order to succeed in a rapidly changing world, our economy must reflect our diversity and give every Canadian real and fair opportunities to succeed.

Regarding gender equality, we know that although Canadian women today are among the best educated in the world, they earn less than men, are less likely to participate in the labour market than men, and are more likely to work part time. We believe it is time for a change. Closing these gaps and giving women equal opportunities to succeed will encourage a more inclusive dialogue on the questions that will shape our future. We know that it will also improve the quality of life of our families and communities while stimulating the economy. Simply put, when women have the support and opportunities to fully contribute to Canada's economy, all Canadians do better.

For example, the Canada child benefit is an important government initiative aimed at making a positive change for the millions of Canadian families with children. Close to 3.3 million families with children are receiving more than $23 billion in annual Canada child benefit payments. A single mom of two children aged five and eight with a net income of $35,000 in 2016 will have received $11,125 in tax-free Canada child benefit payments in the 2017-2018 benefit year. Naturally, this $11,125 is absolutely tax free. That is $3,500 more than she would have received under the previous child benefit system.

Last year, single mothers earning less than $60,000 a year received $9,000 in benefit payments on average to help make things like healthy food and summer programs for their kids more affordable. Thanks to this increased support, the Canada child benefit is helping to lift hundreds of thousands of Canadian children out of poverty. Child poverty has been reduced by 40% compared with 2013.

By better supporting those families that need it most, including those led by single mothers, the Canada child benefit helps them give their children a good start in life by providing a safe place to live, music lessons, affordable sports camps, and all the day-to-day necessities to which every child has a right.

With Bill C-74, our government will enhance the Canada child benefit in order to ensure that the benefit is indexed to the cost of living effective July 2018, which is two years earlier than initially scheduled.

We realize that some people, especially indigenous people living in northern and remote communities, have often faced barriers when it comes to accessing essential government services and federal benefits such as the Canada child benefit. With Bill C-74, our government will take steps to ensure that anyone who is eligible for support receives it.

Through Bill C-74, the government proposes to expand outreach efforts to all indigenous communities on reserves and in northern and remote areas, and to conduct pilot outreach projects for urban indigenous communities so that indigenous peoples have better access to a full range of federal social benefits, including the Canada child benefit.

Now I would like to talk about the Canada worker's benefit. Canadians working hard to join the middle class deserve to have their hard work rewarded with greater opportunities for success. We know that these Canadians are working to build a better life for themselves and their families. Low-income Canadians are sometimes working two or three jobs so that they can give themselves and their children a better chance at success. That is why budget 2018 introduced the new Canada workers benefit, the CWB. Building on the former working income tax benefit, the CWB would put more money into the pockets of low-income workers. The CWB would encourage more people to join and remain in the workforce by letting them take home more money while they work.

Through Bill C-74, the government would increase the overall support provided by the CWB for the 2019 and subsequent taxation years. In particular, the government proposes to increase maximum benefits under the CWB by up to $170 in 2019, and increase the income level at which the benefit is entirely phased out. As a result, low-income workers earning $15,000 could receive up to almost $500 from the CWB in 2019 than they could receive this year under the current working income tax benefit. That is $500 to invest in the things that are important to them, and to make ends meet.

The government would also propose changes to improve access to the CWB to allow the Canada Revenue Agency to calculate the CWB for anyone who has not claimed it starting in 2019.

Due to these enhancements and intended actions to improve take-up in 2019, the government estimates that more than two million working Canadians would benefit, many of whom were not benefiting from the working income tax benefit. This would help lift approximately 70,000 Canadians out of poverty.

With regard to small businesses, the government is also committed to providing direct support to the small businesses that create the jobs that Canadians depend on. Small businesses are a critical part of our economy, and the government is taking action to help them grow, invest, and create good, well-paying jobs. To that end, Bill C-74, proposes to lower the small business tax rate to 10% from 10.5%, effective January 1, 2018, and to 9%, effective January 1, 2019. This means up to $7,500 in federal corporate tax savings per year to help entrepreneurs and innovators do what they do best: create jobs. Lowering small business taxes should encourage new capital investment in businesses. These investments, whether in better machinery, more efficient technology or new hires, make businesses more productive and competitive.

Bill C-74 also proposes measures to ensure that the tax system encourages corporate owners, including small business owners, to use low corporate tax rates to support their business and not for significant personal tax advantages. The first measure would reduce the ability to access the small business tax rate for small businesses with significant income from passive investments. For those earning less than $50,000 of passive investment income each year, there will be no change in the tax treatment. Also, the tax applicable to investment income remains unchanged. Refundable taxes and dividend tax rates would remain the same.

A second measure corrects a flaw that allows larger private corporations to gain an unintended tax advantage. The measure would better align the refund of taxes paid on passive income with the payment of dividends sourced from passive income. Together, these two changes would impact less than 3% of all private corporations and provide a simpler and more targeted approach. Ninety per cent of the tax impact would be borne by households in the top 1%.

We listened and the design of these proposals is based directly on the feedback that we received during the consultations on our tax proposals. Thanks to this input, we have put forward an approach that is simpler and better targeted than what was outlined last summer. At the same time, we are doing more to help typical small businesses grow by enabling them to retain more earnings for investment and job creation through a lower small business tax rate.

To help Canadians succeed today and in the economy of tomorrow, the government is making long-term investments to grow the economy in a way that ensures good jobs, healthy communities, and clean air and water. Canadians understand that pollution is not free nor should it be. That is why putting a price on carbon pollution is central to the government's plan to fight climate change and grow the economy.

In Canada and abroad, the impacts of climate change are evident, including coastal erosion, thawing, permafrost, and increases in heat waves, droughts, and flooding. Our shared quality of life and our present and future prosperity are deeply connected to the environment in which we live.

Today, through Bill C-74, the government is taking action in order to reduce emissions by introducing the greenhouse gas pollution pricing act. Pricing carbon pollution is the most effective way to reduce emissions. It creates incentives for businesses and households to innovate and pollute less.

I would like to underline that our approach to putting a price on carbon pollution has been collaborative from the beginning. As a first step, the government worked with most provinces and territories and indigenous partners to adopt the pan-Canadian framework on clean growth and climate change in December 2016. The framework includes a pan-Canadian approach to pricing carbon pollution, with the aim of having carbon pricing in place in all provinces and territories this year. The plan provides provinces and territories with the flexibility to choose between two systems: an explicit price-based system or a cap-and-trade system. Right now, a price on carbon pollution is in place in four provinces—Ontario, Quebec, British Columbia, and Alberta—covering over 80% of the Canadian population. All other provinces have committed to adopting some form of carbon pollution pricing this year.

Four out of five Canadians live in jurisdictions that already have a price on carbon pollution, as I have mentioned, and right now those provinces are leading Canada in job creation. With that goal in mind, the government is moving ahead to ensure that a legal framework is in place for the proposed federal carbon pollution pricing system. In jurisdictions that fall short of the federal standard, the federal carbon pollution pricing system would apply on January 1, 2019, starting at a price of $20 per tonne of emissions. The direct revenue from the carbon charges on pollution under the federal system would go back to the province or territory of origin.

On an annual basis, the provincial and territorial systems in place would be assessed by the Government of Canada against the federal standard. By putting a price on carbon pollution, Canada is joining 67 other jurisdictions that have already taken this important step to curb greenhouse gas pollution. Together, those jurisdictions represent about half of the global economy and more than a quarter of global GHG emissions, according to the World Bank's November 2017 report, “State and Trends of Carbon Pricing 2017”.

Putting a price on carbon pollution would help put Canada on a course to meet our 2030 emissions target, in combination with other complementary clean growth measures under Canada's clean growth and climate action plan. It makes sense not only for our shared environment, but also to strengthen our growing economy.

This bill represents the next steps in the government's plan to put people first by giving them the help they need now, all while investing in the years and decades to come.

In order to remain competitive and successful in the global economy, every Canadian must have the opportunity to contribute to our prosperity and to benefit from it. As we continue to grow and strengthen the middle class, we are making significant progress in terms of equality of opportunity, to ensure that the next generation of Canadians can share in a prosperous middle class; a more innovative, creative, and competitive knowledge-based economy; and environmental protections.

[Jody Wilson-Raybould, Liberal, Vancouver Granville, BC]

moved that Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee.

Business of the House

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

Mr. Speaker, this afternoon the House will continue second reading debate of Bill C-68 concerning the Fisheries Act. The House will then adjourn for the Easter break and allow members to return to work in their constituencies and also spend some time with family and friends.

Upon our return on April 16, we will commence second reading debate on Bill C-74, the budget implementation act, and continue that debate for the remainder of the week.

I want to take this opportunity to wish all my colleagues, their families, and everyone who works and helps us in this place a happy Easter and a pleasant break.

[Marc-André Pigeon, Assistant Vice-President, Financial Sector Policy, Canadian Credit Union Association]

Thank you for the opportunity to talk about the 2018 statutory review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

I'm going to approach this issue from the perspective of our 260-plus members that we often characterize as the small businesses of the Canadian financial sector. Our concerns, as you'll see in my comments, are really oriented from that perspective.

I would note first of all that the credit union system is pleased to see that the government is seeking a balance between regulatory compliance and the associated costs. Credit unions know they have a role to play in fighting these criminal activities. They are apprehensive, however, about the expansion of this framework to include sectors in which small entities, such as credit unions, do not always have the required resources or knowledge.

We also recognize that financial institutions have a responsibility to know who they are dealing with. That is the foundation of our business model. That said, our members maintain that due diligence as regards money laundering, collecting information, and documentation requirements is costly and prevents them from focusing on their core mandate, which is serving their members.

All this matters because our research, and research internationally, have found repeatedly that regulatory compliance, especially with money laundering and terrorist financing obligations, impose a disproportionately large and heavy burden on credit unions, smaller institutions, and smaller credit unions in particular. In fact, I think this creates a barrier to entry or good competition in the banking sector. It's a serious issue for us.

With the proposed expansion of the framework to cover new sectors, it would seem this load will spread to more entities. I know it's difficult to argue against the logic behind moving towards functional regulation, but it's also hard to imagine how collecting more information will necessarily lead to a more successful policy outcome. So far, the evidence we've seen does not bear that out.

It's true that some of the proposed changes try to make the overall framework more efficient and responsive. We are concerned, however, that some of these are just tweaks to what is frankly often a burdensome and not always efficient or effective system.

We'd like to suggest a different approach. We'd like to suggest the adoption of a model built around a simplified due diligence process for use in situations where there is little risk of services or customers becoming involved in money laundering or terrorist financing. Other jurisdictions have already adopted this approach. We believe that following their example would lead to the same results, namely reducing or at least limiting the increase in administrative burden imposed by the framework. Further, we think it would do so without affecting the value or quality of the gathered information.

This alternative model could also leverage new technologies to achieve the goal of capturing useful information while minimizing the cost of doing so. For example—I think this has been discussed publicly—the public sector might consider creating industry-wide information clearing houses. These clearing houses could collect beneficial ownership information, from annual tax reports, that could be keyed to unique identifiers assigned to each tax filer. By limiting a reporting entity's obligations to obtaining this unique number from their clients, the resulting compliance burden could be meaningfully reduced. Reporting entities would no longer need to go through the inefficient and duplicative effort of gathering this information from each account holder.

From the client's perspective, it would be less time-consuming and repetitive, especially for clients who hold accounts at several reporting entities. For the public sector, this approach could increase confidence that the information is secure, consistent, verified, and accurate. Since the detection of money laundering often hinges on observing the flow of funds among parties, policy-makers may also want to consider tying this approach into some of the changes that are being proposed as part of the payments modernization effort.

In short, we think the approach we are proposing would give credit unions and other reporting entities more time to focus on what is truly important, namely, explaining the context of transactions, rather than recording the usual, factual information.

The measures we are proposing are not simple to implement. We admit that. Yet if we are to strike a balance between costs and results, we encourage policymakers to carefully consider our proposals.

As I wrap up, I'd like to briefly shift to thanking this committee for the support it gave to credit unions as we worked to secure the right to use generic banking terms. Yesterday, as you know, the federal government introduced proposed changes as part of its budget implementation act that for us represent important progress on this file. This committee deserves credit for its support.

I'd be happy to take your questions on today's topic and also to appear on your Bill C-74 review.

Thank you very much.