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

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

Madam Speaker, as the member knows, I have been in her riding and knocked on doors in her riding. Folks in Labrador believe in equality and fairness. I am sure she would agree with me on that.

We have a budget that profoundly continues what is one of the most unequal periods in Canadian history. In fact, two Canadian billionaires hold as much wealth as one third of the Canadian population. We are seeing more and more tax treaties signed with notorious tax havens overseas, a practice started by the Harper Conservatives and continued by the Liberals. We are seeing more wealthy Canadians and large businesses not having to pay a cent of tax because they can take their money to overseas tax havens.

There are more and more tax loopholes that the government refuses to close. As a result, the government says it does not have the resources to bring in pharmacare, pay equity, and all the other programs that would actually make a difference in people's lives. My question is quite simple. Would the member not agree with me that her constituents in Labrador would want to see a fair tax system and a closing of these tax loopholes, and that they would be very disappointed to see none of that in the Liberal budget?

[Yvonne Jones, Liberal, Labrador, NL]

Madam Speaker, it is very fair to say that the government has taken tremendous action on taxation. First, we have been able to reduce taxes for small businesses in Canada. Second, we reformed the taxation program for individual income earners across Canada to ensure that the wealthiest pay more and the lower-income and middle-income people get a break on taxation.

The other thing we have done, which we have committed to do and are continuing to do, is to ensure that we crack down on offshore tax havens. The minister has said this time and again in the House of Commons. It is the commitment of our government to do so, and we are continuing to do so.

We believe that every Canadian deserves to be treated fairly and equally when it comes to taxation. We do not believe that people should be allowed to escape paying taxes in our country. We expect them to pay, and we are going to ensure that it happens.

[Vance Badawey, Liberal, Niagara Centre, ON]

Madam Speaker, this is a budget with heart. It is a budget that cares. It is a budget about people and about equality. How does budget 2018 attach itself, that equality throughout this nation, to each and every individual throughout our great nation?

[Yvonne Jones, Liberal, Labrador, NL]

Madam Speaker, I know my colleague shares my sentiment that Canadians deserve to benefit from the wealth of their country, no matter where they live in this country. They deserve to benefit, no matter the status they hold. This government is reflecting that in the decisions we make. Whether one is urban or rural, indigenous or non-indigenous, wealthy or poor, we as a government are implementing investments, infrastructure, and programs and services that are reaching all Canadians. We are not cherry-picking one region or another. We are not sacrificing one province for the sake of another. We are fair to all Canadians, because that is what Canadians want from us. They want a government that is going to listen to their issues and act on them, and that is exactly what we are doing.

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

Madam Speaker, our colleague said that the Liberal government listened to Canadians' views on employment insurance. I think it is important to note that the government only half-listened, because sweeping reforms are needed and six out of 10 workers still do not have access to employment insurance.

Can my colleague tell us when the government will make it easier for people to get employment insurance benefits?

[Yvonne Jones, Liberal, Labrador, NL]

Madam Speaker, we did make modifications to the Employment Insurance Act, allowing claimants to earn money and keep more of their employment insurance during the off-season. We also extended maternity benefits to those who needed them, and we are continuing to look at the employment insurance program.

It is safe to say that the program today is available to and being used by many Canadians across the country. Without the support of this program, there would be much jeopardy in many seasonal industries, and I think we all understand that.

[Gabriel Ste-Marie, Québec debout, Joliette, QC]

Madam Speaker, never has Quebec been so diminished in Ottawa. Bill C-74 is a 556-page budget implementation bill, and all 556 of those pages ignore Quebec. To the Minister of Finance and the Prime Minister, Quebec does not exist. Bill C-74 is for people in the GTA, the west, and the Maritimes. It is for Canada, but not Quebec. Quebec does not matter here. With Bill C-74, the government continues to rack up deficits so that it can give handouts to others, like the $75 million given to Irving to combat the spruce budworm in the Maritimes. This is a nice handout, but what an insult to Quebec, which does not receive a cent.

In Quebec, the budworm affects an area larger than all of New Brunswick. Bill C-74 is a massive 560-page document, larger than any other tabled so far by the finance minister. Never mind that the Prime Minister had made an election promise not to introduce massive bills. Unbelievable. These 560 pages do nothing to fix the EI spring gap for our seasonal workers.

In Quebec, we believe in using our lands. We want everyone across Quebec to be able to live and earn a living, not just those in major cities. Seasonal industries are a reality in the regions, and these workers need support. The government needs to do something about the period during which these workers are not receiving employment income or employment insurance. The EI eligibility rules must be changed. This has been going on for years. Every year, seasonal workers experience the same stress as they wonder whether they will be able to make ends meet. In its budget, the government announced that seasonal workers would be able to take 30 hours of training a week and receive replacement income, but this does not fix the problem. The government needs to listen to these people's concerns and take the necessary action to fix this problem once and for all.

Bill C-74 is a 556-page manifestation of the government's schizophrenia when it comes to the environment and the fight against climate change. We have a Prime Minister who wants to maximize economic opportunities from western Canada's dirty oil in order to raise money to protect the environment. Wow. We have a Prime Minister who has decided to side with big oil and force the Trans Mountain pipeline on a province and a government that do not want it. So much for democracy. Meanwhile, this same Prime Minister was patting himself on the back at COP 21 in Paris on climate change. This has led Jeffrey Sachs of Columbia University to the conclusion that the Prime Minister and his government have lost all credibility in the fight against climate change.

Bill C-74 does not contain a single line or a single measure to support green energy, nor does it have anything for the electrification of transportation. Yes, imposing a carbon tax means there is a baseline to ensure that one province's efforts are not cancelled out by another province's. However, another thing missing from Bill C-74 is a clear plan and firm resolve to seriously protect the environment. For example, what is the Canadian government going to do if Doug Ford is elected premier in Ontario? Mr. Ford has already promised that he will eliminate Ontario's carbon exchange system and that he will fight the federal carbon tax. The same is true in Alberta, with Jason Kenney. As everyone knows, Quebec is way ahead when it comes to the environment, but its efforts are likely being unfairly cancelled out by other provinces that refuse to join the 21st century.

Ottawa is keeping the targets from the Harper era. The environment minister has already said that the tax would apply regardless of what the provinces think, but we have our doubts. In the Trans Mountain file, the federal government chose to side with the oil industry. Just imagine, it is even prepared to fund the project. The Liberals' targets are the same as the ludicrously low targets set by Stephen Harper's Conservatives, yet the government is not even on track to meet them. That is something we need to do.

Quebec needed Bill C-74 to include provisions that would support its fight against climate change, but no such luck. Bill C-74 is the first mammoth implementation bill for this budget. It talks about the cannabis tax. As we know, Quebec, the provinces, cities, schools, and law enforcement are not ready for legalization. They are asking for just a little more time to prepare, but Ottawa is ignoring their pleas. This will cost Quebec and the municipalities quite a lot of money.

We are seeing the same thing with taxes. Ottawa has decided to occupy the entire field of taxation. That means it will get to scoop up a quarter of the tax without having to spend a penny. It is easy money. Furthermore, Ottawa is not bearing any of the costs associated with cannabis legalization. We have reason to be concerned about the conditions that will be tied to the transfer of the tax to the provinces, like the health transfers. With this government, there are always plenty of conditions. It cannot even pay its own employees, yet it wants to stick its nose into everybody's business and tell Quebec how to run its own affairs. I worry that this will happen in this case too.

Since Ottawa occupies the whole tax field, it has the upper hand. I can already picture the Prime Minister forcing the provinces to do his bidding if they want the money even if everyone tells him he is out of line. It would not be the first time. That is what happened with health transfers, which are lower than they should be, as I said. Apparently health care funding does not win a lot of votes, so they cannot be bothered with it. Quebeckers want it, but nobody here cares. The same goes for infrastructure money.

Conditions are laid out and everything is negotiated separately, so money stays locked up here just because the government wants control over a decision it knows nothing about. I should point out that this is not what Quebec wants, and it breaks an election promise. So many broken promises. The budget does have a few little things, such as the Canada workers benefit, that will help Quebeckers. It is not a lot, but it will help people with low incomes. Quebeckers will also benefit from measures for veterans and the lower small business tax rate. These are measures we have been asking for since 2015, so we are glad to finally see them.

Of course we know that the government improvised this measure because it was roundly criticized for the tax reform it planned to introduce. It ended up backing away from the tax reform and, in fact, basically abandoned it. It kept the passive income measure, but watered it down so much that it will not be very effective.

Instead of wasting everyone's time with a tax reform that was going nowhere, why did the government not tackle tax havens? That is the most glaring inequity in the entire system. The projections vary greatly, but according to the Conference Board, the government would recover at least $9 billion. It could use that money to balance the budget, but of course, the influential Bay Street lobby prevents it from doing so. So much for Quebec's request to fix the problem of the illegal use of tax havens. Quebec does not exist. I said at the outset that Quebec has never been so weak in Ottawa. Each and every one of Bill C-74's 560 pages reminds us this. Our needs, our concerns, and our aspirations are nowhere to be found in this massive bill.

Bill C-74 makes it crystal clear that Quebec does not count in this place. That is what I wanted to say.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I can assure the member that Quebec counts for a great deal.

My colleague across the way made the argument in his comments as to why it is important to have a strong national government here in Canada. Let us think about what the member was saying. He talked about the price on carbon and the impact if one province were to go ahead of another province in a progressive fashion. For the first time in many years, we finally have a Prime Minister who has a strong national vision, which is one of the reasons why we saw a national program for a price on carbon, rather than having one province doing it one way and another province doing it another way. That is in essence what the member across the way was calling for.

My ancestors came from the province of Quebec.

We want to see national programs. One of the wonderful things in this budget is the increase to the Canada child benefit program, which brings millions of dollars into every riding across the country, including the ridings of my friends across the way. It is a strong national program that contributes to the well-being of the nation as a whole, and by doing that we can see more progressive policies.

I am wondering if my colleague would agree with me that there are a number of strong national programs that can have a profoundly positive impact on all provinces, including the province of Quebec, a province—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member for Joliette.

[Gabriel Ste-Marie, Québec debout, Joliette, QC]

Madam Speaker, we see the government implementing national programs and policies for English Canada. We see it in the government's decision to grant all the construction contracts for new ships to the Maritimes while giving nothing to the Quebec shipyard.

My colleague opposite spoke of a national policy on climate change and the carbon tax. What this national policy tells me is that the government has decided to support an oil-based Canada. We take issue with that national policy, and I think British Columbia does too. We are no longer allowed to manage our own affaires. This is a clear example of that. The government imposes its will and serves its own financial interests by pursuing aggressive policies that are funded by Bay Street to support Calgary. That is the Canadian model.

Given all of that, how can the government's environmental and climate change policy have any credibility whatsoever? It does not, and we are not the only ones saying so, since economist Jeffrey Sachs from Columbia University also shares this opinion. The Prime Minister has lost all credibility on the international stage when it comes to climate change.

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

Madam Speaker, I appreciated my colleague mentioning the tax haven issue, because that is certainly an issue that we in the NDP fundamentally agree needs to be dealt with. It is very important to illustrate this. We see the amount of revenue that we lose to wealthy and well-connected Canadians who are able to evade paying their fair share. Would he not agree that not only prevents us from investing in people who need the most help, the most vulnerable members of our society, but it also shifts the tax burden onto everyone else?

If the Liberal government is all about helping the middle class and those hoping to join it, would he not agree that one of the best policies would be to tackle the issue of tax evasion to make sure the most vulnerable members of our society, the middle class, and so on, are not having to shoulder that burden?

[Gabriel Ste-Marie, Québec debout, Joliette, QC]

Madam Speaker, I want to thank and congratulate my colleague for his wise comments. The inequality problem, which is the elephant in the room here, primarily has to do with tax havens. Why does the government stand by as the wealthiest members of our society shirk their obligations and responsibilities? We know that this government has ties to the Bay Street lobby. The finance minister is evidence of that. He is unwilling to take action to address the tax inequities between the very powerful and the middle class.

I agree with my colleague's comments that the government boasts about doing a lot for the middle class, but the problem is that they are just talking the talk to win over voters and get re-elected. In reality, the government is complicit in the use of tax havens, which primarily benefit big banks, an industry that does not even create jobs. Unbelievable. This is unacceptable and it must change.

[Marco Mendicino, Liberal, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada]

Madam Speaker, it gives me great pleasure to rise on this occasion to speak in support of the 2018 budget, and Bill C-74, the budget implementation bill, which will continue to advance the priorities of Canadians.

What I thought I would do this afternoon is break up my remarks into three themes. I will talk a little about where we were in 2015 when this government took office. I will talk a little about where we are today, mid-mandate. Finally, I will foreshadow where I think we are going in the future.

The budget introduced this year by the finance minister put into very sharp context and focus the many challenges that we faced coming into office. The former Conservative government had a record weak amount of growth, the weakest performance when it came to jobs and economic growth since the Great Depression, and this from a party that talks about being a champion of industry and enterprise, a champion for small business and hard-working Canadians. It was a Conservative government that promised not to ever run a deficit and ran six during the course of its 10 years in power.

Those were the challenging circumstances when the Liberals took the reins of authority and power. We did so with a commitment to actually deliver for hard-working middle-class Canadians.

Among the very first things that we did to turn things around was provide a tax cut to middle-class Canadians. It was the very first order of business that we did in December 2015, a little more than a month after taking office. This put more disposable income into the pockets of middle-class Canadians so that they could provide for their children, their relatives, their loved ones. This began the turnaround of the Canadian economy, a resilient and competitive economy, at a time when the global economy continued to face some uncertainty.

The second major thing this government introduced to spark and spur on economic growth was the Canada child benefit. This plan has been one of the bedrock principles that has helped families, young families. It is done through a means-tested approach, not a “one size fits all” approach. It looks at the needs of the family through the lens of the number of children in the family, their ages, and the overall income of the household. It is tailored to their needs to provide them with the transitional measures and supports so that they can provide for their children as they raise them to be successful and innovative, thriving young Canadians for future generations.

As a result of that, not only have we provided support for the present day, but we have lifted approximately 300,000 children out of poverty, something that every member in this House should be celebrating.

I hear my hon. colleagues heckling, which is an awful shame. It is tragic that the Conservatives do not realize that it is a positive thing to be lifting children out of poverty, and it reflects just how out of touch they continue to be. Canadians are watching very closely.

Something else that we have done since taking office is we have listened very closely to small and medium-sized businesses. They have been telling us that they need the support to remain a competitive jurisdiction in light of the uncertainty across the globe, and they want to keep taxes at a competitive rate. One of the key pledges we made in the last election was that we would reassess the small business tax rate and we would lower it. We went through an exhaustive consultation process, during which I heard from small businesses in my riding about the importance of keeping that commitment.

I am very proud to say that the 2018 federal budget will ensure that we are lowering small business taxes to 9%, which is among the most competitive in the G7, in the G20, in the OECD, so that the conditions are set for their success. This is in stark contrast to the last Conservative government that talked a big game around wanting to lower small business taxes. However, when the Conservatives had the opportunity to support lowering small business taxes in the 2018 budget, they voted against it.

Again, Canadians will be watching very closely. They will not just be listening to the conventional rhetoric they hear from Conservatives, that tired, recycled rhetoric, around being great champions of industry. Canadians are going to look at the Conservatives' voting record and ask their members of Parliament why they voted against this. Those members will not have a compelling answer.

Another area that we have been trying to address as Canada continues to succeed, thrive, and grow in an increasingly competitive global economy is to provide more flexibility around young families who are growing. We do that by ensuring that mothers, fathers, and parents can take the leave that is necessary when they are having children or adopting children. The flexibility that is in the 2018 budget will do that. Once again, I wonder why my Conservative colleagues do not support measures like that. If they truly are for families, why are they not supporting it? We get no answer, only silence. Let us remember their actions over words.

There are a few other areas I would like to touch on that will capture where we are today. We have made progress from where we were to where we are today. How do we know that? Over 600,000 jobs have been created since this government has taken office, a record jobs growth.

[An hon. member]

Full-time jobs?

[Marco Mendicino, Liberal, Eglinton—Lawrence, ON]

The majority are full-time jobs. I thank my hon. colleague for clarifying that. We had seen record unemployment. Statistics Canada has been taking very precise measurements around unemployment. We have seen it go through the floor.

This government has made investments, such as the Canada child benefit plan, reducing small business taxes, and creating the Canada workers benefit. The Canada workers benefit will ensure that low-income earning Canadians, those Canadians who are working hard to get a leg up to provide for their loved ones will have some additional support as well.

Very recently an issue that has hit very close to home for me and the people I represent in Eglinton—Lawrence has to do with gun violence. We have seen far too many innocent Canadians lose their lives as a result of organized crime, getting their hands on illegal guns but also guns which were purchased legally but then were commandeered through organized crime. This government is very sensitive to that issue. It is an issue which touches all Canadians.