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

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, it is an offensive comment to say that I do not support veterans in my riding. I am actually a member of the Vancouver Island Aircrew Association, which is made up of RAF veterans, RCAF veterans, and American veterans.

Let me point out something on page 331 of the budget. Going forward, it shows $67 million for support for Canadian veterans in 2018-19, then minus $311 million in 2019-20, minus $323 million in 2020-21, minus $255 million in 2021-22, and minus $196 million 2022-23. That is the Liberal record on that.

This shows a lack of transparency. Every time we stand in the House and point out the lack of transparency when we are talking about the slush fund, the government, instead of defending it or explaining it, gets up and tries to distract. Nothing is going to distract from the fact that the government is taking $7.4 billion of Canadian taxpayers' money, squirrelling it away in a slush fund for the election, and it will not show up until a year after the election.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Mr. Speaker, our colleague from Edmonton West made a very passionate speech.

It was interesting that the member for Sudbury was talking about three mines in his region of Sudbury and $3 billion. However, in the last two years alone, $80 billion in investment has left our country. That is the Liberals' math. We have $3 billion coming in and $80 billion leaving, most of it from Alberta and Saskatchewan, where the Liberals are non-existent. What is going on is shameful.

The member for Edmonton West was the one who found the $7.4-billion slush fund. I would like him to talk a little more about that slush fund that will go forward to the next election for the Liberal Party.

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, I appreciate my colleague's passion for his province of Saskatchewan and for energy workers in Alberta.

I would like to talk a bit more about the slush fund, but I want to follow up on his comment about the amount of money that is leaving Alberta, $80 billion in investment. I get the opportunity to go to schools from time to time and speak to the students, and I talk to the principals. We like to do a mock parliament. I went to one school and asked the principal what we should talk about, maybe marijuana, rock bands, rap. He said, “No, it's stress. It's stress on children whose parents are losing their jobs. They're not sure if their parents are going to stay together or if they're going to have a roof over their heads.” These are grade 6 students.

I spoke about this in the House a year and a half ago, and this problem still exists a year and half later because of the government. It is letting Albertans down on the Trans Mountain pipeline. It is letting the people from Saskatchewan and other Canadians down on energy development. It is disgraceful. It is hurting Canadians. It is hurting Albertans. It is hurting Edmonton. We are looking forward to 2019 when we can change that.

[Peter Schiefke, Liberal, Parliamentary Secretary to the Prime Minister (Youth)]

Mr. Speaker, it is an honour to rise in the House today and add my voice on behalf of the 100,000 people in my community in response to budget 2018.

Presented on February 27, 2018, our government's third budget takes bold action to support our environment, ensure fairness, and help the middle class. Most importantly, this budget takes a huge step to improve gender equality with new pay equity legislation. This measure will give Canadian women a real and fair chance of success. Every day I am truly humbled by the strength of Canadian women all across the country. They are leaders in business, in their communities, and in the environmental movement. Women are at the heart of Canadian society and push us to do better, to be better, and to expect better. I have the privilege of serving alongside many women who make me proud to be an MP. On top of that, we are even stronger because we have an equal number of women and men in cabinet, at the decision-making table.

However, my pride in the work that we have accomplished together is dampened by the magnitude and importance of the work that remains to be done. Budget 2018 lays the foundation of a promising future for all Canadians. For my constituents in Vaudreuil—Soulanges, this budget opens the door to greater success for middle-class families, greater security for our most vulnerable seniors, and a better future for young Canadians.

I am proud to say that budget 2018 provides for an additional investment of nearly $300 million in Quebec's health care system, which means that our government wants to support the provinces and ensure that Quebec will be better prepared and able to meet the needs of its changing population in the years to come. This investment means that, since we took office, we have increased health transfers to Quebec by $600 million. This builds on the nearly $100 billion in historic investments we have made in benefits for seniors, children, and workers this year alone.

The government is taking measurable and tangible actions to meet the needs of people in my community and across Canada. People in my riding are fortunate enough to enjoy many gifts from Mother Nature, such as the summit of Rigaud Mountain, the Île-Perrot rapids, and the wooded trails of Saint-Lazare. The people of my riding of Vaudreuil—Soulanges expect and deserve a government that takes environmental risks seriously. They deserve a government that supports science and technology and that recognizes and appreciates Canada's natural treasures.

Budget 2018 takes necessary and significant steps to do that and a lot more thanks to a historic investment of $1.3 billion over five years to protect our beautiful natural surroundings. This investment means that wildlife, land, and ecosystems will be better protected and will be able to recover from damage already caused by climate change.

It means that our government's management of protected areas and natural parks will be increased. The plan put forward by the budget also ensures that our conservation areas will be better managed, integrated, and coordinated in a network supported by our provincial, territorial, and indigenous partners.

Finally, it means that my two children and thousands like them across Canada will be able to see our cherished natural parks for free until their 18th birthday.

Canadians across the country and in my community are also concerned for their future and the future they will leave behind for their children. As greenhouse gas levels continue to rise, they worry about our changing climate and the real impact it has and will continue to have on our region.

I was proud that in budget 2018 we set aside nearly $110 million over the next five years to implement our government's promise to set a national price on carbon. My children and our children's children will be thankful for the leadership of the Prime Minister and the Minister of Environment in making the protection of our air, our water, and our future a priority.

We also know that in order to protect future generations, we have to ensure young Canadians have a real and fair chance at success, those opportunities developed first from strong, supportive, and comfortable middle-class families. That is why we will be indexing the Canada child benefit to provide an additional $5.6 billion in direct support to Canadian families that need it most, starting this July.

Each and every month families in my constituency receive $6 million in direct investment for over 22,000 of our kids through the Canada child benefit. That investment goes toward lifting thousands out of poverty, putting food on the table, and helping our children enrol in organized sports. Now, more than ever before, our kids will grow up with the supports they need to succeed.

Based on the discussions I have had with members of my community, it is already having a significant impact. I have spoken with parents who say they can now afford proper clothes to send their kids to school. I have spoken with parents who say they are now able to buy the proper school supplies they have wanted to buy for years but could not afford it. I have spoken to directors of our day camps who have told me that six months after the initiation of the changes to the Canada child benefit, for the first time in 25 years, they now have a waiting list of children looking to get into summer camp, most for the first time.

When they eventually grow up, our government will be right there to help them get the work experience and skills they need to get good, meaningful, and well-paying jobs through a nearly $450 million investment in the youth employment strategy. Budget 2018 also offers support for pre-apprenticeship training in partnership with the provinces, territories, and post-secondary institutions. Now, more than ever before, our young people will be ready to succeed, prosper, and lead the Canada we leave behind.

We are also taking significant measures to protect our heritage and culture. In Vaudreuil-Soulanges and throughout Quebec, we are proud of our history and our heritage, which deserves to be protected.

Budget 2018 supports the action plan for official languages, which will allocate more than $400 million in new funding to community organizations and francophone and anglophone minority newspapers. It will also improve access to services in English in francophone majority communities.

These initiatives come with a $50-million investment over five years in support of local journalism. By taking these steps today we are sending a clear message to Canadians and members of my community of Vaudreuil-Soulanges. In our Canada, everyone is welcome. We will support them. We are taking action to provide them with the best services in the language of their choice for years to come.

The budget is a clear commitment and promise to the people of Canada. It shows that this government is not simply here to make investments and to develop programs. We are here to implement real change for Canadians, change that recognizes we need to do more to promote equality, to protect our environment, and to help our middle class grow and succeed.

This budget proves that our government is listening to Canadians from coast to coast to coast. It is not simply hearing problems but it is actively working to solve them. That is change of which, as always, I am proud to be a part.

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

Mr. Speaker, the hon. member talked about the plan to tackle climate change. Within the budget, over 200 pages talk about carbon taxing, carbon pricing, as the Liberals like to vanilla it as. Many questions have been asked on this side of the House as to how much a carbon tax will cost the average Canadian and how much it will actually reduce emissions. To this point, not only have we received redacted answers for the paper questions we have asked, but we have received no answers.

We have asked the Minister of Environment directly how much it will cost Canadians. There are reports that it could cost upwards of $2,200 a year for a family of four, $264 a year to heat homes, and an 11¢ increase in the cost of a litre of gas.

Therefore, I am asking the hon. member this. How much will a carbon tax cost Canadians and how much will it reduce emissions? It is a pointed question, and I expect a very pointed answer.

[Peter Schiefke, Liberal, Vaudreuil—Soulanges, QC]

Mr. Speaker, that question is very close to my heart.

One of the reasons I presented myself as a candidate in the last election was that I felt the Harper government was not doing enough to ensure we were putting in place measures to meet the challenges posed by climate change. The reality, and I think my hon. colleague knows this very well, is that the methodology we have adopted to meet the challenges posed by climate change are ones that are supported by many Conservatives. We are using market mechanisms.

A price on carbon, which was implemented in British Columbia, worked very well in reducing greenhouse gas emissions, while also seeing a growth in the economy in British Columbia. It debunks one of the myths put forward by many of the members opposite that this will have a negative impact on the economy. In fact, it has had a very positive impact on the economy.

In regard to the question about what it will cost Canadians, the member knows full well that the money to be collected will be given right back to the provinces and territories so they can invest in areas, right back in the communities, in the most effective ways to reduce our GHGs. He knows that, and I hope he will share that with his constituents.

[Brigitte Sansoucy, NDP, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, like my colleague, I represent a riding in the Montérégie area, but on behalf of the people of Saint-Hyacinthe—Bagot, whom I represent, I could not be more disappointed in this budget.

I am disappointed because this is the third Liberal budget that tells rural communities that they can keep waiting for employment insurance reform, when six out of 10 workers do not have access to EI. I represent people who are currently going through the spring gap. Employers are calling me to say that it makes no sense. Their employees are out of money and have not received an income in weeks, but they cannot be called to work because winter is not over yet.

The temporary foreign worker program needs to be reformed. I represent a community where the agricultural industry has a significant presence and these rural communities are still being told to wait for cellular and broadband Internet infrastructure.

Why is the government still telling rural communities to keep waiting?

[Peter Schiefke, Liberal, Vaudreuil—Soulanges, QC]

Mr. Speaker, I want to thank my colleague from Montérégie for her question.

I represent a riding that encompasses both rural and urban areas. Therefore, we always have to strike a balance. My priority is to share with my constituents information about the investments that will help families living in urban areas and explaining to them what we have done for those living in rural areas.

My hon. colleague probably already knows full well that we have invested $500 million to put in place high-speed Internet in rural areas. This historic funding will help communities such as Pointe-Fortune, in my riding of Vaudreuil—Soulanges, which has 600 households and still no high-speed Internet access.

I share my hon. colleague's frustration because rural communities have been asking for high-speed Internet for a long time. We are in the process of keeping all these promises to help above all the people living in Canada's rural areas. I would be pleased to discuss with my hon. colleague how we can further work together.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I too am happy to stand today and have an opportunity to talk about why I am pleased to see what our government's 2018 budget is all about.

When we talk about equality and growth and a strong middle class in this budget, so many of us and so many of our communities are represented.

I want to particularly talk about the infrastructure investments that are in this budget, but I need to go back to my days as a City of Toronto municipal councillor.

As part of my job as a city councillor in North York or in Toronto, I was always doing budgets. I would have to figure out at the end of year how we were going to meet the needs of our cities while not significantly raising property taxes.

The first year that I became a councillor, I was inundated with phone calls from seniors and other low-income folks in the riding, who told me they could not afford these tax increases. At that time the increases were 2.5% or 2.8%. There were so many tears and so much sadness in those phone calls that to this day I have never forgotten those conversations, and that was some years back.

I committed at that time to those folks that I would do everything in my power to not raise their property taxes, because many of them were living on a limited or fixed income and there was no way they could afford to pay the increases. There were so many increases in other areas that adding property tax increases made them feel they were being driven out of their homes. I made the commitment to them at that time that I would do everything in my power to protect them and to avoid tax increases.

That meant getting a task force together and examining budgets and looking at ways that we could trim from here or find money from there. For 11 years we were constantly trying to balance budgets while seeing what we could cut from here in order not to increase something there.

We did zero budgeting in the city for probably about six years, but sooner or later everything comes home to roost, because money is still needed to advance. There's only so much that can be cut or saved or trimmed. There comes a point when additional funds have to be found; otherwise, roads deteriorate and the needs of the transit system cannot be met. Community centres were being neglected and the city was not in as good a shape as I would have liked to have seen it.

That was one of the reasons I decided that I was going to become a candidate at the federal level. I felt the federal government was where the money was, and if we going to be investing and building our cities, then the challenge for me would be to go to Ottawa and argue for the same things that I was arguing for at the city level, meaning investments in transit and investments in the quality of life of our citizens to make people's lives a bit better. Subsequently I did seek office, and with the blessing of my community I have had the good fortune of representing it at the federal level for 19 years or so.

The first thing I did when I arrived here was exactly what I said I was going to do. I started arguing about how I could get more money for the cities. I approached the then prime minister, Jean Chrétien, and told him about what was going on at the city level. He reminded me that cities are creatures of the provinces, not the federal government. We could not use the word “cities” here in the House. I could not talk about the City of Toronto or Hamilton or Niagara and their difficulties because they were not directly a federal responsibility.

In spite of that and my persistence, Mr. Chrétien put together a task force and asked me to chair it. He also asked me to consult with our urban centres. I think it was his way of keeping a new MP busy, but I took on that 18-month challenge that he gave me. I travelled a lot more in the city and across the country. I consulted with the urban centres about the pressures facing them. I worked with FCM, York University, Vancouver, and a lot of academics as well, and we put together a great report that talked about the need for a national urban strategy that would address their needs.

In addition to to that, of course, we now have a gas tax, we have infrastructure programs, and we can freely talk about the challenges facing our cities across the country. Hence the reason for my enthusiasm for what we have been doing as a government in the last almost three years in investing in transit, infrastructure, and all of the things that we need the federal government to do because the cities do not have enough money and the provinces are struggling with their own challenges.

Therefore, working in partnership is what it was all about. It was about establishing a partnership between federal, provincial, and municipal governments to ensure that our country would move forward in a positive way. Being able to do that and to see it happening, frankly, was the best satisfaction I have had since I came here. With the billions that we are investing in this budget going out into cities all across the country, we are ensuring that we will have infrastructure that can compete with any other country, and it is desperately needed.

We talk about the congestion in cities. In order to relieve that congestion, we need to be investing in transit, both in small communities and in large ones. I am very fortunate in being able to say that after $685 million was invested some years back, we have just opened the new subway that goes up Highway 7 to the city of Vaughan and has a stop at York University. It takes thousands of cars off the road and, more importantly, it reduces congestion. It also provides a better transitway for many of the students, increases the opportunity for York University to expand, and makes for a better quality of life for all of the students and academics going to the university every day.

Of course, we are now starting on the LRT across Finch Avenue, which will be a tremendous asset for the thousands of people who use the bus line to get to Humber College.

Connecting all of that costs money. There is no way around it, and it would not happen without significant investment from the federal government, which is why I am so pleased to see what we are doing with this budget in 2018, as well as in the budgets of 2017 and 2016.

Let me talk now about some of the folks who live in my riding.

All the seniors at 35 Shoreham, a seniors residence, are people who have struggled. They are low-income seniors and are all receiving the GIS that we topped up a bit more, which we continue to do almost every year. We are trying to keep it up with the cost of living, recognizing the challenges that are facing all of those seniors. Many of them suffer from poor health, are new immigrants to the country and have language issues, and are struggling.

We have also invested in research. Whether it is the genomics centre or NSERC, research is such an important thing to help us identify the answers to some of the terrible diseases that affect us. As a member of the ALS caucus, I think of Mauril Bélanger very often, and I think all of our colleagues remember the sad loss. Putting more dollars into research will help us find answers and solutions to rare diseases like ALS.

Pharmacare is our new initiative, and I hope that in the future we can bundle our efforts together to reduce the cost of drugs throughout the country. This is a new initiative that I look forward to seeing come to completion, and I know all of us in this House would like to see that happen.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, I appreciate the member's speech, but I take issue with the conclusion of her speech. She referred to the pharmacare plan as a new initiative, when we all know in this House that the Liberals first promised it in 1997 when they had the advantage of a majority government, as they do now. After all the years that have passed, the broken promise back then, and all of the studies that have been done on pharmacare, most recently with the Standing Committee on Health, I hope national pharmacare does get achieved this time. Can the member make the promise that instead of more studies and consultation, we will actually get the job done?

There is evidence everywhere that this program works. It will truly benefit Canadians, so I would like to hear assurance from the member that this time, finally, we will actually get it done.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I think it is something that we all want. When I say that, I mean all members of Parliament. The government would like to see us to be able to establish this program. It is not an easy program, because it affects so many people. As well, the provinces and territories must be respected and everyone must be brought together. No major initiative like this will come easily.

I wish that we had proceeded much faster, as my colleague would like to do, and I hope that the good work that the health committee has just done on pharmacare in their report is one more tool moving us forward. We have the commitment from the Prime Minister in his appointment of Dr. Eric Hoskins to head that up. It gives me hope that we will see it sooner than later.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Mr. Speaker, I want to thank the hon. member for Humber River—Black Creek on her speech this morning and for her years in municipal government, because that is the grassroots level where one must deal with phone calls every day.

She made a reference to “come home to roost”. I have kids and I am a grandparent now, and it is going to come home to roost. The massive debt that the government has given our kids in the last two and a half years will come home to roost.

We have asked the government many times in the House when it will balance the budget. We are into decades. We are told now that it will be in the 2040s or maybe in the 2050s.

It is coming home to roost, so when will the government balance the budget?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I have to go back a little bit. When I was in municipal politics, I was not a member of any political party. I had been asked by several parties, but I decided that I was a Liberal, because I am fiscally conservative and socially responsible. That is what I call a Liberal.

At the same time that we were doing these things municipally, the Liberals had a great track record, with seven years of surpluses. When Jean Chrétien came into office as prime minister in 1993, the country was near bankruptcy. Those are not my words, but the comments made by all of the specialists out there. We turned that around, and we ended up having seven years with surpluses. I have never seen that happen with any other government, without naming one in particular.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, the hon. member mentioned seniors. In the budget, in relation to the Canada pension plan, there is new “drop in” language that replaces the “drop out” language for people with years of low earnings due to child responsibilities and people with disabilities.

Why has the government not provided actuarial modelling for the new drop-in measures? Can the member assure us that women and people with disabilities are not going to be disadvantaged with this new drop-in period?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, again this is one of the initiatives that we are putting forward in this budget with the intention of helping people and making it easier for them to access small pockets, because there are not huge amounts of money in those drop-in or dropout programs.

Another part of that is investing money to make sure that people file their income tax at the end of every year. A quite remarkable number of people do not file their income taxes because they feel they do not have any income; they then miss out on a variety of different benefits that would have been available to them. Our government is investing in making sure that people know they need to file their taxes to be able to get the benefits that are there.