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

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Speaker, as the member knows, CPP was voluntarily created by all the provinces coming together. What the member is doing instead, by supporting the budget and supporting the government, is imposing carbon taxes when the provinces do not want it.

For those provinces where the provincial government wants to do that, so much the better. The residents there can keep them accountable. However, in my province of Alberta, we do not want it. In 2019, we will remove the provincial government, and there will be a new government that will be adamantly opposed to having imposed upon it a carbon tax that residents did not ask for.

The Minister of Environment has said that a price on carbon would have to go as high as $100 per tonne in 2020 and $300 per tonne in 2050 to meet the 2030 GHG targets. That is the Minister of Environment of this government. When we have such opposition to it from the Canadian public now, imagine what the opposition to a carbon tax will be like at a $300 a tonne.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, I had a question for the parliamentary secretary of justice about his comment about gun crime, but I am sure my colleague will be able to comment on it as well, and will probably do a better job than the parliamentary secretary.

The parliamentary secretary told us about the work they were trying to do on gun violence. The member probably knows that 2% of murders in our country involve legal registered guns, and 7% of gun murders involve legal guns, so clearly we need to be targeting criminals, not that very small percentage.

Could the member talk a little about how making it harder to take one's gun to the repair shop is not going to address the real causes of gun crime?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Speaker, I thank the member for the question on the gun control legislation the government has put forward.

Of course it will not change anything. Asking law-abiding firearms owners to obey more laws will yield abidance of the law. Law-abiding gun owners have been abiding by the rules and regulations set forth by the government since they were introduced. The problem is gangsters, and it does not help when judges are not appointed to hear cases. A leading gang member of the FOB gangsters in Calgary was released yesterday because of the lack of judges.

[The Assistant Deputy Speaker, Carol Hughes]

Before I go to resuming debate, I seem to be getting a little feedback on how I am selecting members to ask questions or make comments. I will bring members back to an extract from Debates of November 3, 2016. It is the Deputy Speaker's point of view. It says:

...the time for questions and comments is often the most valuable time for an exchange between members [and we recognize that]. In accordance with the procedures and practices, we will do our best to ensure that time is generally afforded to the members of the parties who are not associated with the member who has just spoken....

This is not to the exclusion of a member, however; it is to allow for proper debate on the issue.

Resuming debate, the hon. member for—

[Kevin Sorenson, Conservative, Battle River—Crowfoot, AB]

Madam Speaker—

[Carol Hughes, NDP, The Assistant Deputy Speaker]

I have basically indicated it. If the member has an issue with that, he can come back to the chair and see me directly.

Resuming debate, the hon. member for Saint John—Rothesay.

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, I appreciate the opportunity to stand today and speak to budget 2018, our Liberal government's move forward to restoring economic prosperity to Canada.

Let me start by saying that I am a proud member of this House and a proud member of the riding of Saint John—Rothesay in southern New Brunswick. It is a riding that has a strong industrial base, a riding that is very strongly unionized, and a riding that has a strong heritage. It was Canada's first Loyalist city.

I am a proud member of the Liberal Party. When I ran for the Liberal Party, I ran on three different things. Number one, I ran on restoring infrastructure investment and infrastructure spending in southern New Brunswick and Saint John—Rothesay. Number two, I ran on being an advocate in championing the fight against poverty and championing poverty reduction in Saint John—Rothesay. Number three, I ran to lead the charge on restoring historic assets in Saint John—Rothesay, a riding in a city that has a wonderful history as Canada's first incorporated city and Canada's Loyalist city.

Over the 10 years of the previous Harper government, we saw a continued decline of attention to Atlantic Canada, a lack of attention to spending in Atlantic Canada, and a deterioration of infrastructure spending in Atlantic Canada, particularly in my riding of Saint John—Rothesay. Now there certainly seems to be clear attention to my riding. The Conservative Party is running Facebook ads naming me and pointing out my record in Saint John—Rothesay. The Leader of the Opposition is coming to Saint John—Rothesay in a couple of weeks to speak. Let me state very clearly that the constituents of Saint John—Rothesay are going to ask the Leader of the Opposition many direct questions when he comes to my riding.

The party opposite likes to wrap itself up as being a steward of the economy, presenting itself as the best manager of the economy. Let me say that the previous government ran six straight deficits, ran deficit after deficit after deficit, and all of a sudden in its last year—

[Some hon. members]

Oh, oh!

[The Assistant Deputy Speaker, Carol Hughes]

I know that we are nearing the weekend and that people would like to return home at some point, but I want to remind members again that somebody has the floor. According to the rules, members who have the floor have the right to be able to do their speech without interruption, so I would ask the official opposition members to stop heckling and stop yelling across the way so that the member can go through his speech. There will be opportunities for questions and comments, with the official opposition having the first question.

The hon. member for Saint John—Rothesay.

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, this is a government that basically inherited deficit after deficit. We have turned that around. We are investing in our economy. When the Leader of the Opposition comes to Saint John—Rothesay, there will be questions asked of him. For example, which of the programs and infrastructure investments that we have seen in my riding, historic investments made over the last two years, would he cut? Would he cut the historic $67-million investment to transform the port of Saint John, which employs thousands and is an economic stimulus for southern New Brunswick? Would he pull back the $6-million investment for the new trade school at the New Brunswick Community College? Would he pull back the over $10-million investment for the YSJ airport, which the Minister of Transport recently announced when he came to my riding last week, the first federal investment announced for the Saint John Airport in almost 20 years? Would he pull back the investments made into historic assets like Fort La Tour, the Martello tower, the Imperial Theatre, and the Saint John City Market? The residents of Saint John—Rothesay would like to know.

What would he do about the historic and transformational Canada child benefit, which is changing the lives of tens of thousands of people and families across our country, and is better for nine out of 10 families? Would he pull that back? I do not think so.

We are a government that believes we play a role in the lives of Canadians. We are a government that believes in investing in infrastructure, in our communities, and in historic assets in Saint John—Rothesay.

Let me clearly say that the government of the party across the way ran deficit after deficit. Then, mysteriously, in its last year in government, it balanced the budget. It threw in a little bit of an EI rainy day fund, it sold GM stocks, and it laid off workers and managers of the Phoenix system, all to balance the budget. That was not right. The Conservatives know it was not right.

We are turning our economy around. We are investing in Canadians. We are investing in children. In particular, in my riding I am thrilled to lead the fight against poverty. Unfortunately, Saint John, New Brunswick, leads the country in child poverty. One out of every three of our children lives in poverty. That number is not acceptable and needs to change, and under the leadership of the Minister of Families, Children and Social Development, we are making that change. We are reducing the number of children who are living in poverty.

Through our budgets, we have invested historic amounts into housing. We are leading a national housing strategy. We have invested historic amounts into early learning and child care. We have signed bilateral agreements with the Province of New Brunswick and Premier Gallant. Most recently, we invested $70 million into a seniors pilot program. I can go through investment after investment and project after project that our government is delivering in my riding of Saint John—Rothesay.

As a member of Parliament and the representative for Saint John—Rothesay, I am trying to make my riding better each and every day, for each and every person, by moving each and every project forward one at a time and by working hard for the wonderful citizens of Saint John—Rothesay. That is what our budget is about. That is what investing in Canadians is all about. As Liberals, we believe that we can have an impact on the lives of Canadians. We do not want to pull programs back. We believe we can invest and provide transformational programs that change people's lives.

When I go door to door in my riding, I find that people are genuinely appreciative of what our Liberal government is doing and what we are delivering in our budget.

Let us be transparent. I come from an industrial city, a unionized city. I come from a city that understands its role. I talk with industry people regularly. The industry wants to be a part of the solution. It does not fight carbon pricing. The industry wants to be a part of the solution.

The growth and investment in Saint John—Rothesay has been significant over the last two years. We are changing the culture of our city. We are showing the people that the federal government and strong federal representation is good and can change the lives of citizens of Saint John—Rothesay as well as citizens right across the country.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, I thank the member for voting against the government's misguided small business tax changes, at least initially. I had hoped he might have joined us in voting against this budget as well, which proceeds with the government's high tax agenda. I am sorry that will not happen. This will be a topic of conversation when our leader goes to visit the good people of Saint John—Rothesay, as the member spoke about. He is clearly very aware of our leader's travel schedule, and I congratulate him for being so aware. He is currently following it in more detail than even some members of our caucus.

Does the member think the budget should be balanced, ever? Why is the present finance minister the only finance minister in the country who has not been able to come up with a date by which he will balance the budget?

When we have asked this question before, Liberals have said that they are investing. If they are going to call it an investment, then they have to have a sense of how much, how long, and what the balance is.

It is no excuse to talk about spending when one is being asked a direct question. I want to know from the member if he thinks the budget should be balanced. If so, when should it be balanced, and when will it be balanced? Can the finance minister, like every other finance minister in the country, give us a timeline?

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, I remember when a former finance minister of the party opposite was interviewed about the tax-free savings account, an account that was maximized by 3% of Canadians. The party opposite wanted to double that tax-free savings account. I have to laugh at that. When that former minister of finance was asked who was going to pay for the doubling of that account, he said the “Prime Minister's grandchildren”, that we will worry about that down the road. I take no lessons from members opposite about fiscal responsibility and balance.

I was an entrepreneur. My background was sports and small business. I understand the importance of balanced budgets. I understand the need for balanced budgets. I also understand the need for investing in Canadians, the need for investing in infrastructure spending, and the need for strategic investment in different parts of the country that need that investment.

Southern New Brunswick and my riding of Saint John—Rothesay needed that investment. We did not have that investment over 10 years under the Harper government. My riding is now reaping the benefits of strategic—

[The Assistant Deputy Speaker, Carol Hughes]

I am sorry to interrupt the member, but we have to allow time for other questions and comments.

The hon. member for Cowichan—Malahat—Langford.

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

Madam Speaker, currently the member's government subsidizes the oil and gas industry to the tune of a few billion dollars a year. The government is showing a willingness to invest money into a pipeline that would export diluted bitumen, which makes an absolute mockery of our climate change efforts. The government still has done nothing to fix tax loopholes. It still has tax-saving treaties with some notorious tax havens. It has done nothing to close the stock option deduction loopholes. These are all issues that the government in one way or another promised to take action on.

I have a simple question for the member. When are we going to see the Liberal government live up to commitments that it made to Canadians in 2015, or are we going to see more broken promises, more false hope again in 2019?

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, I am always puzzled by the NDP, their stance and their strategies. We have an NDP provincial government that is pro-pipeline. We have an NDP provincial government in B.C. that is anti-pipeline. We have a party, depending on where they are, that is for or against.

We are focused on a developed national energy policy. I think we have been very consistent on that.